Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “US Recession: Do we have a Lifeline?”
Americans have always been in the front lines battling and fighting other economies’ challenges by providing loan assistant programs to foreign aid to even outsourcing of American jobs. Well, outsourcing jobs can be also looked at as adding to the American corporation bottom line, but at the end of the day, we contributed heavily in providing assistance in times of need. Are we going to see that gesture reciprocated from these countries? Obviously, I am not asking for them to contribute on the monetary aspect but rather on the trade side.
I don’t expect the developing countries with limited resources to play a role in this arena but countries like China and India where the economies are not necessarily parallel with the US Economy but rather diverse in some aspects. I remember when India had so many graduates like doctors and engineers on the streets polishing shoes and running some business to barely put food on the table. Today, a number of American jobs have been outsourced to Indians from IT, Engineering to even medical field. These countries are not only taking over US jobs but also sending their professionals over to the US to create their presence here as well.
It is time we re-think all the foreign trade agreements before one of these countries surpasses our economy and puts us in the backseat. This battle can very well be a one man battle but collectively we form parallel agreement and have similar mindset to tackle this issue. If we continue on the current path, I am sorry to say but it is a path to devastation. We are already seeing failures at all levels of organizations including the government. We need to adapt to new ways of thinking and also revisit our old traditions and heritage.
The US Government is running out of money and if they are not careful we will be headed to another recession even before we come out of this one. There is no country out there that is going to keep lending us money at such a low rate whereas they can invest the same money in other countries and get a return of 500%, granted it is a risky investment but the returns are stunning. As citizens of this amazing nation, we need to take it upon ourselves to create lifelines in our everyday dealings and find creative ways to generate growth. If you are a small company operating from a remote location, go online and explore options to export your merchandise on the global market. If you are a consultant seeking a job in the US, think again and look for opportunities abroad. If you are an intern seeking a job, go work at a firm for free even if you have to go fetch coffee all day. Be productive, think outside of the box!
My Thoughts: The only Lifeline America has is its people and freedom to practice Capitalism. If you have fear of failing then you have already failed. Do not fear and go for it. Even if you fail, so what get up and try again and again till you reach your goals. I will not wish you luck, because you don’t need it, you have the spirit of capitalism and entrepreneurship in you, so go out there and “Make it Happen.”
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Tuesday, September 22, 2009
Monday, September 21, 2009
Entrepreneurs: US Dollar Analysis for your Business.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Entrepreneurs: US Dollar Analysis for your Business.”
Entrepreneurs, start your engines! The Goal is uncomplicated, make money during the recession. The US Government has two options to recoup the funds it has injected in the market, one being raising taxes which is very unlikely due to the state of the economy. Second, the most favored is inflating the US Dollar. Intelligence is a commodity in today’s market, which brings not only intangible value but also tangible and that is the very reason the term ‘insider’ is referred to at times.
Many times we have speculated and said ‘if I had only known.” Say for example, would you have bought Apple stock when it was trading for less than $5 dollars and at present at $184.00? My fellow entrepreneurs, you have access to that information at the current time, knowing that the US Dollar is going to be inflated and you need to capitalize on that whether it be investing in foreign currency or simply making wise decision in regards to future dealings.
One of the key obstacles many business owners will encounter is liquidity due to the banking regulations and lack of funds. Capitalizing on current state of economy does not necessarily require monetary resources but rather a right strategy with an impeccable conceptualization. What are you going to capitalize on? Your daily operations! They will need to be agile and flexible enough to wither the storm.
As a business owner you will need to factor in anticipated inflation or deflation in all the financial activities of the businesses as this is crucial to sustain not only your short term operations but also long term. You will need to convert your cash flow from constant to actual and apply appropriate formulas like use of discounting payment factors rather than compounding. Many businesses fail due to under capitalization but more so due to failing to understanding how critical it is to allocate appropriate resources for future use.
A simple way to understand this concept is to recall what a dollar used to buy over 10 years ago and what does it buy today. This concept of understanding inflation and devaluation of US Dollar is going to be one of the driving indicators of many businesses. This concept is more important than ever before especially for the manufacturing sector who exports their products since we are now dealing with foreign manufacturers who are exploiting on the fiasco caused by the US markets. So be very smart in your dealings.
My Thoughts: As an Entrepreneur, make sure to evaluate every revenue stream and apply appropriate inflation models on current and projected cash flows as well as on the outstanding debt. This concept can also be employed by investors and it is just as important as your ROI. So be wise and run a lean organization with strong future projections!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Entrepreneurs, start your engines! The Goal is uncomplicated, make money during the recession. The US Government has two options to recoup the funds it has injected in the market, one being raising taxes which is very unlikely due to the state of the economy. Second, the most favored is inflating the US Dollar. Intelligence is a commodity in today’s market, which brings not only intangible value but also tangible and that is the very reason the term ‘insider’ is referred to at times.
Many times we have speculated and said ‘if I had only known.” Say for example, would you have bought Apple stock when it was trading for less than $5 dollars and at present at $184.00? My fellow entrepreneurs, you have access to that information at the current time, knowing that the US Dollar is going to be inflated and you need to capitalize on that whether it be investing in foreign currency or simply making wise decision in regards to future dealings.
One of the key obstacles many business owners will encounter is liquidity due to the banking regulations and lack of funds. Capitalizing on current state of economy does not necessarily require monetary resources but rather a right strategy with an impeccable conceptualization. What are you going to capitalize on? Your daily operations! They will need to be agile and flexible enough to wither the storm.
As a business owner you will need to factor in anticipated inflation or deflation in all the financial activities of the businesses as this is crucial to sustain not only your short term operations but also long term. You will need to convert your cash flow from constant to actual and apply appropriate formulas like use of discounting payment factors rather than compounding. Many businesses fail due to under capitalization but more so due to failing to understanding how critical it is to allocate appropriate resources for future use.
A simple way to understand this concept is to recall what a dollar used to buy over 10 years ago and what does it buy today. This concept of understanding inflation and devaluation of US Dollar is going to be one of the driving indicators of many businesses. This concept is more important than ever before especially for the manufacturing sector who exports their products since we are now dealing with foreign manufacturers who are exploiting on the fiasco caused by the US markets. So be very smart in your dealings.
My Thoughts: As an Entrepreneur, make sure to evaluate every revenue stream and apply appropriate inflation models on current and projected cash flows as well as on the outstanding debt. This concept can also be employed by investors and it is just as important as your ROI. So be wise and run a lean organization with strong future projections!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Saturday, September 19, 2009
Entrepreneurs: Think Strategically.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Entrepreneurs: Think Strategically.”
A Strategy is a plan of action that incorporates appropriate allocation of resources and other events to help the organization attain its goals. Strategies are formulated at all levels of the organization for various reasons such as ways to reciprocate to the competitors, confront with difficult external economic times, and to effectively use available resources. We have encountered within a number of organizations that we invest in, that strategic planning positively affects a firm’s performance and creates a financial success.
Before strategies are formulated, the executive members have to identify the core competences of the organization and a proper situation analysis needs to be formed. Situation analysis is important to every company but crucial to an organization that is going through financial turbulence. We are observing many entities that are facing challenges due to the current economy and we need to look deeper into our business models and re-evaluate our goals.
Most organizations fail when it comes to the implementation phase. They can form strategies that may or may not be valid but the implementation phase is very challenging and even a professional can fail if it is not executed accurately. Take for example major corporations that we see file for bankruptcy and most of these entities are governed by professionals, so why did they fail? When in bankruptcy, the professionals take over and revisit the strategies that were proposed and to conclude at what levels did they fail.
Strategy formulation may include assessing the external environmental such as the economy and internal challenges such as cash flow. As we are experiencing challenges, formulate new strategies and incorporate all current factors and potential future challenges as well. Project your thinking five or even ten years out and form solid plan that will carry your forward, but don’t forget to constantly visit them. A business without a proper plan or goal in mind cannot sustain its operations and will end up going under.
Don’t forget to Implement!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
A Strategy is a plan of action that incorporates appropriate allocation of resources and other events to help the organization attain its goals. Strategies are formulated at all levels of the organization for various reasons such as ways to reciprocate to the competitors, confront with difficult external economic times, and to effectively use available resources. We have encountered within a number of organizations that we invest in, that strategic planning positively affects a firm’s performance and creates a financial success.
Before strategies are formulated, the executive members have to identify the core competences of the organization and a proper situation analysis needs to be formed. Situation analysis is important to every company but crucial to an organization that is going through financial turbulence. We are observing many entities that are facing challenges due to the current economy and we need to look deeper into our business models and re-evaluate our goals.
Most organizations fail when it comes to the implementation phase. They can form strategies that may or may not be valid but the implementation phase is very challenging and even a professional can fail if it is not executed accurately. Take for example major corporations that we see file for bankruptcy and most of these entities are governed by professionals, so why did they fail? When in bankruptcy, the professionals take over and revisit the strategies that were proposed and to conclude at what levels did they fail.
Strategy formulation may include assessing the external environmental such as the economy and internal challenges such as cash flow. As we are experiencing challenges, formulate new strategies and incorporate all current factors and potential future challenges as well. Project your thinking five or even ten years out and form solid plan that will carry your forward, but don’t forget to constantly visit them. A business without a proper plan or goal in mind cannot sustain its operations and will end up going under.
Don’t forget to Implement!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Friday, September 18, 2009
Wealth Management: The Middle Class Millionaires of Today.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Wealth Management: The Middle Class Millionaires of Today.”
We have created a dynamic economic model and the changes are very rapid on a daily basis and there are constant updates on the technology side to keep the models even more complex, such as flash trading, etc. One of the integral parts of the system that is lacking intelligence is the financial advisors. I have spent over five years in the Venture Capital industry and have met a number of advisors and wealth manger. I would say only 5% of them have the right formula.
Wealth Management today is much different then what we saw a year ago when Lehman Brothers was still around. After the collapse of the giant, the world has changed drastically and it is still evolving and not necessarily recovering but finding new avenues to capitalize on. A number of middle class millionaires have seen their portfolio vanish away and left them with very little or no retirement funds. it may very well be in the best interest of these powerhouses to grow their clients portfolio but isn’t it also there job to forecast the storm? Many portfolios did not drop 80-90% in one day, rather over a period of few months. So why did these financial advisors fail to channel these investments into a safer product?
If these financial advisors are failing middle class millionaires and collecting 1-2% portfolio management fee, what good are they? Middle class millionaires have worked most of their lives to get to this point and then they meet a financial advisor and within a year’s time they transfer their whole portfolio into the hands of some rookie.
If you are seriously considering becoming a financial advisor, this is the right time. America will grow again very slowly and many of these industries and businesses will be backed by no other then the middle class millionaires. We are going to see the middle class slowly emerging again and in this disruptiveness, we have to seek opportunities and start all over again regardless of what your background is. The mindset of the old financial advisors needs to be re-engineered and new ideas need to be cultivated.
My Thoughts: We are going back to the fundamentals, show me the numbers. Relationship building is all good, but what good is it if you can’t deliver? So my dear financial advisors, I hope that you don’t get me as a client, because if you did, you better be prepared. In the meanwhile, do the best job you can and standout. Do your homework not necessarily on your client, but on the market and investment strategies. Pick up new ideas and creativity in your field and show us what you can do before we invest a penny!
Let’s Create More Millionaires!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
We have created a dynamic economic model and the changes are very rapid on a daily basis and there are constant updates on the technology side to keep the models even more complex, such as flash trading, etc. One of the integral parts of the system that is lacking intelligence is the financial advisors. I have spent over five years in the Venture Capital industry and have met a number of advisors and wealth manger. I would say only 5% of them have the right formula.
Wealth Management today is much different then what we saw a year ago when Lehman Brothers was still around. After the collapse of the giant, the world has changed drastically and it is still evolving and not necessarily recovering but finding new avenues to capitalize on. A number of middle class millionaires have seen their portfolio vanish away and left them with very little or no retirement funds. it may very well be in the best interest of these powerhouses to grow their clients portfolio but isn’t it also there job to forecast the storm? Many portfolios did not drop 80-90% in one day, rather over a period of few months. So why did these financial advisors fail to channel these investments into a safer product?
If these financial advisors are failing middle class millionaires and collecting 1-2% portfolio management fee, what good are they? Middle class millionaires have worked most of their lives to get to this point and then they meet a financial advisor and within a year’s time they transfer their whole portfolio into the hands of some rookie.
If you are seriously considering becoming a financial advisor, this is the right time. America will grow again very slowly and many of these industries and businesses will be backed by no other then the middle class millionaires. We are going to see the middle class slowly emerging again and in this disruptiveness, we have to seek opportunities and start all over again regardless of what your background is. The mindset of the old financial advisors needs to be re-engineered and new ideas need to be cultivated.
My Thoughts: We are going back to the fundamentals, show me the numbers. Relationship building is all good, but what good is it if you can’t deliver? So my dear financial advisors, I hope that you don’t get me as a client, because if you did, you better be prepared. In the meanwhile, do the best job you can and standout. Do your homework not necessarily on your client, but on the market and investment strategies. Pick up new ideas and creativity in your field and show us what you can do before we invest a penny!
Let’s Create More Millionaires!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Wednesday, September 16, 2009
Re-engineering Human decision making mind.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Re-engineering Human decision making mind.”
There is no apprehension how much a human mind can comprehend and generate constant flow of ideas and thoughts. However, just like anything on this earth, it has to be trained to a degree when it comes to making simple or complex decisions either involving everyday activities or forming future strategies. Human factors engineering is a science that plays a vital role in decision making for the minds of many individuals whether they are in a manufacturing plant or even stopped at a red light.
It is human nature to jump to conclusion often when the decision maker makes the wrong choice but we fail to place ourselves in that position to understand why was that decision made in the first place. Many times the external data and representation of scenarios makes us unsophisticated to make the right decision.
This concept of decision making can not only be utilized in the field of engineering, such as making of the traffic lights for example which feeds data to your mind whether to make a stop or to go in green. This can be employed in just about any industry and business. In today’s chaotic and volatile marketplace, human factors engineering is a key element for the entrepreneurs. We have been developing a number of models and principles in-house for the last few years to see how they perform in real world problems. The results were simple phenomenal.
As we enter into the new era of business, we have to equip ourselves with appropriate decision making skills and taking into consideration all the factors that play a role in that particular event by creating a merit analysis. It can be a very challenging model to create if you lack proper skills and intellect since merit analysis does assign a value on all the factors for final decision. The key is obtaining information that is authentic and does apply today; information that was valid yesterday cannot be used and is already outdated.
My Thoughts: Carefully analyze the market, regardless of whatever industry you are in, make a use of human factors engineering in your decision making skills. Remember, it may cost you a little more initially but at the end of the day you will end up with making the right decisions and higher revenues as well.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
There is no apprehension how much a human mind can comprehend and generate constant flow of ideas and thoughts. However, just like anything on this earth, it has to be trained to a degree when it comes to making simple or complex decisions either involving everyday activities or forming future strategies. Human factors engineering is a science that plays a vital role in decision making for the minds of many individuals whether they are in a manufacturing plant or even stopped at a red light.
It is human nature to jump to conclusion often when the decision maker makes the wrong choice but we fail to place ourselves in that position to understand why was that decision made in the first place. Many times the external data and representation of scenarios makes us unsophisticated to make the right decision.
This concept of decision making can not only be utilized in the field of engineering, such as making of the traffic lights for example which feeds data to your mind whether to make a stop or to go in green. This can be employed in just about any industry and business. In today’s chaotic and volatile marketplace, human factors engineering is a key element for the entrepreneurs. We have been developing a number of models and principles in-house for the last few years to see how they perform in real world problems. The results were simple phenomenal.
As we enter into the new era of business, we have to equip ourselves with appropriate decision making skills and taking into consideration all the factors that play a role in that particular event by creating a merit analysis. It can be a very challenging model to create if you lack proper skills and intellect since merit analysis does assign a value on all the factors for final decision. The key is obtaining information that is authentic and does apply today; information that was valid yesterday cannot be used and is already outdated.
My Thoughts: Carefully analyze the market, regardless of whatever industry you are in, make a use of human factors engineering in your decision making skills. Remember, it may cost you a little more initially but at the end of the day you will end up with making the right decisions and higher revenues as well.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Tuesday, September 15, 2009
African Continent: Not a Dark Continent After all.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “African Continent: Not a Dark Continent After all.”
Africa has been termed as “the Dark Continent” ever since the existence of the human race due to various factors such as its inconsiderable role in the global economy. Well, this is not the case anymore and as we see that the economies of the so called developed nations are constantly challenged and besieged by its own created system. Not so much in a state of equilibrium and perhaps we won’t see it for some time till the dust settles.
We are scrutinizing that a number of investors are drawn to the opportunities within Africa from the development of basic manufacturing sector to more complex systems such as state of the art technology. Africa is in the making and the middle class is growing rapidly to accommodate changes that are taking place all around. The future of Africa is as bright as the sunlight, given that it may take five to seven years before it can gain momentum to compete with the industrialized nations. However, during those times, the return on the investment is astounding and very attractive for an investor.
Some of our partners have allocated billions of dollars to be invested in Africa over a ten year time period. These investments will be channeled into various different demographics and industries in general. These investments will not only yield high returns for the investors but also build up a first class nation that will rise in the ranks and compete eye to eye with other nations and will be equipped with all the necessary resources such as intelligence, understanding and funds.
To better serve Africa, we will need to work together and form new alliances and give a helping hand to communities that are less fortunate. We will need to foster entrepreneurship and walk on the same path as they do, but define new destination that will help in the growth of not only an individual but a community. Investing in Africa will not only yield high returns but also potentially eradicate poverty in some communities which itself is self fulfilling.
My Thoughts: Let Africa be known as the New Shining Star. Kwaheri Rafiks!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Africa has been termed as “the Dark Continent” ever since the existence of the human race due to various factors such as its inconsiderable role in the global economy. Well, this is not the case anymore and as we see that the economies of the so called developed nations are constantly challenged and besieged by its own created system. Not so much in a state of equilibrium and perhaps we won’t see it for some time till the dust settles.
We are scrutinizing that a number of investors are drawn to the opportunities within Africa from the development of basic manufacturing sector to more complex systems such as state of the art technology. Africa is in the making and the middle class is growing rapidly to accommodate changes that are taking place all around. The future of Africa is as bright as the sunlight, given that it may take five to seven years before it can gain momentum to compete with the industrialized nations. However, during those times, the return on the investment is astounding and very attractive for an investor.
Some of our partners have allocated billions of dollars to be invested in Africa over a ten year time period. These investments will be channeled into various different demographics and industries in general. These investments will not only yield high returns for the investors but also build up a first class nation that will rise in the ranks and compete eye to eye with other nations and will be equipped with all the necessary resources such as intelligence, understanding and funds.
To better serve Africa, we will need to work together and form new alliances and give a helping hand to communities that are less fortunate. We will need to foster entrepreneurship and walk on the same path as they do, but define new destination that will help in the growth of not only an individual but a community. Investing in Africa will not only yield high returns but also potentially eradicate poverty in some communities which itself is self fulfilling.
My Thoughts: Let Africa be known as the New Shining Star. Kwaheri Rafiks!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Hospitals on Life Support?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Hospitals on Life Support?”
As we are in the midst of a financial meltdown, contemplating bank failures same activity is happening in many of these hospitals behind closed doors. Hospitals can be cash cows; however the model that has been adapted by most of these entities is no longer valid and cannot comprehend the pressure and burden caused by many external factors.
There are a number of internal factors that contribute to the disarray; high government regulations, prohibitions against direct assignment of Medicaid and Medicaid reimbursements, high accounts receivables, reimbursement determination, etc. These are just a few to mention that are playing a vital role in these organizations and there is a failure to form new strategies and new models to run them efficiently for the benefit of the community as a whole.
As the American Hospitals wait for its fate in regards to healthcare reform, the matter will get worse and not necessarily better. Healthcare spending was projected to be at $2.4 trillion in 2008 and it is constantly climbing. Could this very well be a ticking time bomb? Yes, it is. This will create another financial chaos in the marketplace and it will be worse than ever before. As the unemployment figures rise, many of the unemployed individuals are now turning to their state funded programs for help and it just adds more burden to the healthcare system.
The time is now to reform and restructuring these entities. I recently had a conversation with Dr. Wesley MD, PhD who is one of our senior consultants at Waterbury Financial Strategies Inc. Having worked with over 100 medical centers globally, his thoughts where parallel to mine that the worse is coming and we need to prepare ourselves and play the same game but change the rules. He has worked with hospitals for over 40 years in various parts of the world and has perfected a model that can be utilized in any hospital, in any economic cycle.
My Thoughts: Get some professional help to turn things around for you organization and enjoy the fruit when it is all done. It is not a one man’s job to pull out of this recession, it is a team effort and together we work for a common goal. So, let’s do it!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
As we are in the midst of a financial meltdown, contemplating bank failures same activity is happening in many of these hospitals behind closed doors. Hospitals can be cash cows; however the model that has been adapted by most of these entities is no longer valid and cannot comprehend the pressure and burden caused by many external factors.
There are a number of internal factors that contribute to the disarray; high government regulations, prohibitions against direct assignment of Medicaid and Medicaid reimbursements, high accounts receivables, reimbursement determination, etc. These are just a few to mention that are playing a vital role in these organizations and there is a failure to form new strategies and new models to run them efficiently for the benefit of the community as a whole.
As the American Hospitals wait for its fate in regards to healthcare reform, the matter will get worse and not necessarily better. Healthcare spending was projected to be at $2.4 trillion in 2008 and it is constantly climbing. Could this very well be a ticking time bomb? Yes, it is. This will create another financial chaos in the marketplace and it will be worse than ever before. As the unemployment figures rise, many of the unemployed individuals are now turning to their state funded programs for help and it just adds more burden to the healthcare system.
The time is now to reform and restructuring these entities. I recently had a conversation with Dr. Wesley MD, PhD who is one of our senior consultants at Waterbury Financial Strategies Inc. Having worked with over 100 medical centers globally, his thoughts where parallel to mine that the worse is coming and we need to prepare ourselves and play the same game but change the rules. He has worked with hospitals for over 40 years in various parts of the world and has perfected a model that can be utilized in any hospital, in any economic cycle.
My Thoughts: Get some professional help to turn things around for you organization and enjoy the fruit when it is all done. It is not a one man’s job to pull out of this recession, it is a team effort and together we work for a common goal. So, let’s do it!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Monday, September 14, 2009
Businesses: Conforming for the Economic Cycle.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Businesses: Conforming for the Economic Cycle.”
The world we know today is much contrasting and deviating then what we have come to experience over the last few years, or even last few decades. We are no longer residents of a stagnant environment, so if the world around us is constantly adapting to new activities, why are businesses still executing the same old broken models? Perhaps there is a sense of comfort or maybe even there is a lack of understanding of the new evolved concepts that are applicable in today’s marketplace.
The economic cycle changes very frequently for most businesses more like seasons in a year and we need to alter our strategies accordingly. It would be satisfying if the formulas we used last year or even decades ago are applicable today and some revenue streams can be replicated and mastered. However, we know that is not the case so we need to constantly shift our focus and re-formulate.
As many businesses have seen the rise in energy costs in 2008 have directly contributed to loss in profits for many businesses, yet very little has been done and many have simply acknowledged this change and accepted the terms. If we continue to accept these terms that are brought forward by third parties then we are not even fighting this battle and are giving in too early. There are various factors that have played a major role in these businesses, energy being one, frozen credit lines; cost of goods sold has gone up, etc.
So, what should we do? Control your costs. You will need to take charge of your entity and re-negotiate your contracts from your lease payments to vendors who provide goods or services to your business. Don’t wait till the last moment to make important decisions, a procrastinator does more harm than good in any scenario. If the energy cost is cheaper in the evenings then during peak hours, learn to use less energy during those times.
During times of economic hardships, people still buy. Their buying habits may change a little and it is you who has to learn what their needs are and to market your product or service to meet their needs. Perhaps even offer new lines of products to your customers and engage them in your products such as sampling, or promotions, etc.
My Thoughts: Keep Marketing! Evaluate what channels of marketing on effective and efficient, and forego the ones that are not producing returns. One of the biggest mistakes most business do is cut their marketing budget especially in times of financial turmoil. So Keep Selling with a Big Smile. Ear to Ear!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
The world we know today is much contrasting and deviating then what we have come to experience over the last few years, or even last few decades. We are no longer residents of a stagnant environment, so if the world around us is constantly adapting to new activities, why are businesses still executing the same old broken models? Perhaps there is a sense of comfort or maybe even there is a lack of understanding of the new evolved concepts that are applicable in today’s marketplace.
The economic cycle changes very frequently for most businesses more like seasons in a year and we need to alter our strategies accordingly. It would be satisfying if the formulas we used last year or even decades ago are applicable today and some revenue streams can be replicated and mastered. However, we know that is not the case so we need to constantly shift our focus and re-formulate.
As many businesses have seen the rise in energy costs in 2008 have directly contributed to loss in profits for many businesses, yet very little has been done and many have simply acknowledged this change and accepted the terms. If we continue to accept these terms that are brought forward by third parties then we are not even fighting this battle and are giving in too early. There are various factors that have played a major role in these businesses, energy being one, frozen credit lines; cost of goods sold has gone up, etc.
So, what should we do? Control your costs. You will need to take charge of your entity and re-negotiate your contracts from your lease payments to vendors who provide goods or services to your business. Don’t wait till the last moment to make important decisions, a procrastinator does more harm than good in any scenario. If the energy cost is cheaper in the evenings then during peak hours, learn to use less energy during those times.
During times of economic hardships, people still buy. Their buying habits may change a little and it is you who has to learn what their needs are and to market your product or service to meet their needs. Perhaps even offer new lines of products to your customers and engage them in your products such as sampling, or promotions, etc.
My Thoughts: Keep Marketing! Evaluate what channels of marketing on effective and efficient, and forego the ones that are not producing returns. One of the biggest mistakes most business do is cut their marketing budget especially in times of financial turmoil. So Keep Selling with a Big Smile. Ear to Ear!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Sunday, September 13, 2009
Entrepreneurs’ Survival Kit for 2009: Capital Budgeting Decisions with Limited Budgets.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Entrepreneurs’ Survival Kit for 2009: Capital Budgeting Decisions with Limited Budgets.”
The world is currently experiencing a chaos in not only the financial sectors but all industries across the line and the Entrepreneurs of tomorrow will have to embrace the fact that the tough times are not over just yet. A number of economists have formed their theory and methodologies in regards to this recession as to when it is going to be over, but the reality is, there are too many factors that contribute with too many unknowns. If you have ever worked on any operations research models, you will know this is more like a simulation that has so many unknowns and the results are based on numerous probabilistic models.
Well, the good news is, the entrepreneurs get to allocate the success rate associated with the businesses based on their custom formed models. Capital budgeting is a key to success for every venture so long as it is properly managed in these critical times of economic hardship. This is one of the overlooked activities that needs to be addressed and looked into it in much depth. A thorough evaluation of multiple investment alternatives needs to be addressed alongside with merit analysis for every entity within a business.
One of the red flags that we see when evaluating these businesses is that all the entities are financially dependent of other constituencies and if one fails, then it creates a domino effect pulling the rest down. This is the very reason all projects need to be mutually exclusive, same should apply to investments and other bodies. The most efficient and compelling way to proceed in a capital rationing latitude is to select the group of entities or activities that maximizes the total net present worth of future cash flows over a required investment outlays.
The sooner this model is utilized, the sooner some of these businesses will see a light at the end of the tunnel. This is a critical element to success for most businesses and it cannot be overlooked. This applies so well today, especially with banks not lending.
My Thoughts: Understand the Cost of Capital and the investment scenario to form applicable strategies.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
The world is currently experiencing a chaos in not only the financial sectors but all industries across the line and the Entrepreneurs of tomorrow will have to embrace the fact that the tough times are not over just yet. A number of economists have formed their theory and methodologies in regards to this recession as to when it is going to be over, but the reality is, there are too many factors that contribute with too many unknowns. If you have ever worked on any operations research models, you will know this is more like a simulation that has so many unknowns and the results are based on numerous probabilistic models.
Well, the good news is, the entrepreneurs get to allocate the success rate associated with the businesses based on their custom formed models. Capital budgeting is a key to success for every venture so long as it is properly managed in these critical times of economic hardship. This is one of the overlooked activities that needs to be addressed and looked into it in much depth. A thorough evaluation of multiple investment alternatives needs to be addressed alongside with merit analysis for every entity within a business.
One of the red flags that we see when evaluating these businesses is that all the entities are financially dependent of other constituencies and if one fails, then it creates a domino effect pulling the rest down. This is the very reason all projects need to be mutually exclusive, same should apply to investments and other bodies. The most efficient and compelling way to proceed in a capital rationing latitude is to select the group of entities or activities that maximizes the total net present worth of future cash flows over a required investment outlays.
The sooner this model is utilized, the sooner some of these businesses will see a light at the end of the tunnel. This is a critical element to success for most businesses and it cannot be overlooked. This applies so well today, especially with banks not lending.
My Thoughts: Understand the Cost of Capital and the investment scenario to form applicable strategies.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Saturday, September 12, 2009
Made in America? Can we say that again in 2010?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Made in America? Can we say that again in 2010?”
Manufacturing has been outsourced for many years due to various reasons from beefing up the bottom line of the major corporation to the political incentives for many politicians. The rules of the free markets are being defined daily and the front liners in Detroit are getting the feel for it. The manufacturing industry is fighting a losing battle not only in their own land amongst the consumers and government body but also on a global scale where they have to compete for the market share of their own product here in the USA. First there was the regulating the manufacturing industry as to how much of the toxic gases and carbon dioxide they can emit in the atmosphere. The EPA intervenes and sets those standards for the US manufacturers while the developing countries such as China and India have no set regulatory guidelines, so indirectly our own government, the government of the people rules in favor of the opposition, our competitors.
One of the other challenges that is a growing concern for the manufacturers is the unions. If we had no manufacturing plants, we would have no unions. These organized parties are simply running some of these manufacturers into the ground by demanding high salaries and benefits. The cost of goods produced keeps going up as all the external factors contribute to it from the price of oil for transportation to food costs due to fire in states such as California which is one of the major producers of produce.
Many manufacturers are not fully employing proper strategies and incentives that are consolidated in the stimulus package. These manufacturers also have to expand their horizons in markets that have never been on the agenda before. Such markets are India, China and Africa where there is an exponential growth in the middle class. If these manufactures are going to relay on the American Consumer, than they are headed towards unfavorable results and potentially a long time for their business to turnaround.
My Thoughts: Strategize, Re-formulate, Cut Expenses and Build bridges amongst other nations. Learn about other cultures and societies. Establish your presence on foreign soil even if it is a sales office with minimal staff. Keep “Made in USA” Alive!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Manufacturing has been outsourced for many years due to various reasons from beefing up the bottom line of the major corporation to the political incentives for many politicians. The rules of the free markets are being defined daily and the front liners in Detroit are getting the feel for it. The manufacturing industry is fighting a losing battle not only in their own land amongst the consumers and government body but also on a global scale where they have to compete for the market share of their own product here in the USA. First there was the regulating the manufacturing industry as to how much of the toxic gases and carbon dioxide they can emit in the atmosphere. The EPA intervenes and sets those standards for the US manufacturers while the developing countries such as China and India have no set regulatory guidelines, so indirectly our own government, the government of the people rules in favor of the opposition, our competitors.
One of the other challenges that is a growing concern for the manufacturers is the unions. If we had no manufacturing plants, we would have no unions. These organized parties are simply running some of these manufacturers into the ground by demanding high salaries and benefits. The cost of goods produced keeps going up as all the external factors contribute to it from the price of oil for transportation to food costs due to fire in states such as California which is one of the major producers of produce.
Many manufacturers are not fully employing proper strategies and incentives that are consolidated in the stimulus package. These manufacturers also have to expand their horizons in markets that have never been on the agenda before. Such markets are India, China and Africa where there is an exponential growth in the middle class. If these manufactures are going to relay on the American Consumer, than they are headed towards unfavorable results and potentially a long time for their business to turnaround.
My Thoughts: Strategize, Re-formulate, Cut Expenses and Build bridges amongst other nations. Learn about other cultures and societies. Establish your presence on foreign soil even if it is a sales office with minimal staff. Keep “Made in USA” Alive!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
American Businesses: Failure to Apply Sensitivity Analysis?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “American Businesses: Failure to Apply Sensitivity Analysis?”
As we are experiencing volatility in the global markets and the US Economy is constantly deteriorating we need to apply appropriate models and re-educate ourselves and our employees and have an elegant top notch management program.
One of the critical models that needs to be utilized by all businesses is Sensitivity Analysis. Sensitivity Analysis can be a rather complex model that incorporates a number of various factors to give you a precise output. This is simply a tool that will give you a clear indication of how an investment is going to perform and the effects on the Net Present Worth (NPW). Some of the key elements this tool will have an effect on are such as revenues, disposable value and operating cost.
Sensitivity Analysis does not stop there but can get very convoluted and it even addresses the purchase or sale of commercial real estate property with proper probability models utilizing external factors such as the market conditions. These models have been adapted by many of the powerhouses, yet not many small investors are aware of it.
As we see the wealth of many Americans diminish due to recession and negative changes in the economy, not only will this model position you to forecast your future worth but also it will flag any activities that need to be revisited, or even eliminated. A thorough Sensitivity Analysis will incorporate a number of factors and models and a simply simulation may take as long as 10 working days and can yield over 500 pages of data that needs to be addressed accordingly.
My Thoughts: Invest some time and money in learning about simply contemporary economics and have a professional firm evaluate your business before you make any considerable decisions.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
As we are experiencing volatility in the global markets and the US Economy is constantly deteriorating we need to apply appropriate models and re-educate ourselves and our employees and have an elegant top notch management program.
One of the critical models that needs to be utilized by all businesses is Sensitivity Analysis. Sensitivity Analysis can be a rather complex model that incorporates a number of various factors to give you a precise output. This is simply a tool that will give you a clear indication of how an investment is going to perform and the effects on the Net Present Worth (NPW). Some of the key elements this tool will have an effect on are such as revenues, disposable value and operating cost.
Sensitivity Analysis does not stop there but can get very convoluted and it even addresses the purchase or sale of commercial real estate property with proper probability models utilizing external factors such as the market conditions. These models have been adapted by many of the powerhouses, yet not many small investors are aware of it.
As we see the wealth of many Americans diminish due to recession and negative changes in the economy, not only will this model position you to forecast your future worth but also it will flag any activities that need to be revisited, or even eliminated. A thorough Sensitivity Analysis will incorporate a number of factors and models and a simply simulation may take as long as 10 working days and can yield over 500 pages of data that needs to be addressed accordingly.
My Thoughts: Invest some time and money in learning about simply contemporary economics and have a professional firm evaluate your business before you make any considerable decisions.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Wednesday, September 9, 2009
American Corporations: Are they incoherent of the Foreign Exchange Rate, Rupee Verses Dollar?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “American Corporations: Are they incoherent of the Foreign Exchange Rate, Rupee Verses Dollar? ”
Recently Waterbury Financial Strategies Inc established an office in India primarily for Venture Capital & Private Equity including Advisory Services. We encountered that there is a great deal of Mergers & Acquisition activities that is taking place as well. Investment is made by foreign entities and corporations in various sectors in India from purchasing multi-billion dollar companies to simple ideas written on a plain sheet of paper.
A prevailing factor that stands out in most of these deals is simply the lack of placing a proper valuation on these ventures and failing to understand the culture! In simple terms, the foreigners, especially the American Corporations are Overpaying for these Companies and Ideas! Let’s not forget that the nation that is leading the innovation is no other then America! There is no doubt that India’s Economy is growing rapidly in certain sectors and Bangalore and Hyderabad are considered to be the center of software development. However, did we ever ask the question, who is funding these operations and at what cost?
The American Corporations have practically written a blank check to the Indians and now India’s Economy is more lucrative than ever before. If you ever happen to visit Silicon Valley you will encounter that most of the businesses are ran by no other than Indians and Asians. Not only are they dominating the Indian market but also the America as well. I am all for Globalization, however there has to be a mutual benefit for both the parties involved. Americans have failed to learn the power of negotiating; perhaps this is the very reason why we hate car salesmen so much. If a 10 year old kid in India can negotiate his way through a market buying fruits or running a small enterprises, running a tea shop why are we failing at it? Have we outsourced negotiating tools? Perhaps we should hire an Indian to come to America and help us deal with the car salesman?
My Fellow Americans, it is time we wake up and re-educated ourselves and learn other cultures and languages. If I can buy an Indian company for $50M why would I want to pay them $75M or $100M? This is the cultural difference we need to study, so stop reading about different kinds of spices used in saags and chapati. Constrain them in a position they cannot refuse your proposal. After all, $50M in many of these developing countries is a lot of money.
My Thoughts: Next time when you go to a grocery store, pay very close attention to any foreign nationals, whether they are from India or Korea and learn a thing or two how to get what you want at the price you set and not at the price that is set by the stores. One more thing, value of a purchase is perceived in dollars and cents and not percentage!
Happy Negotiating!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Recently Waterbury Financial Strategies Inc established an office in India primarily for Venture Capital & Private Equity including Advisory Services. We encountered that there is a great deal of Mergers & Acquisition activities that is taking place as well. Investment is made by foreign entities and corporations in various sectors in India from purchasing multi-billion dollar companies to simple ideas written on a plain sheet of paper.
A prevailing factor that stands out in most of these deals is simply the lack of placing a proper valuation on these ventures and failing to understand the culture! In simple terms, the foreigners, especially the American Corporations are Overpaying for these Companies and Ideas! Let’s not forget that the nation that is leading the innovation is no other then America! There is no doubt that India’s Economy is growing rapidly in certain sectors and Bangalore and Hyderabad are considered to be the center of software development. However, did we ever ask the question, who is funding these operations and at what cost?
The American Corporations have practically written a blank check to the Indians and now India’s Economy is more lucrative than ever before. If you ever happen to visit Silicon Valley you will encounter that most of the businesses are ran by no other than Indians and Asians. Not only are they dominating the Indian market but also the America as well. I am all for Globalization, however there has to be a mutual benefit for both the parties involved. Americans have failed to learn the power of negotiating; perhaps this is the very reason why we hate car salesmen so much. If a 10 year old kid in India can negotiate his way through a market buying fruits or running a small enterprises, running a tea shop why are we failing at it? Have we outsourced negotiating tools? Perhaps we should hire an Indian to come to America and help us deal with the car salesman?
My Fellow Americans, it is time we wake up and re-educated ourselves and learn other cultures and languages. If I can buy an Indian company for $50M why would I want to pay them $75M or $100M? This is the cultural difference we need to study, so stop reading about different kinds of spices used in saags and chapati. Constrain them in a position they cannot refuse your proposal. After all, $50M in many of these developing countries is a lot of money.
My Thoughts: Next time when you go to a grocery store, pay very close attention to any foreign nationals, whether they are from India or Korea and learn a thing or two how to get what you want at the price you set and not at the price that is set by the stores. One more thing, value of a purchase is perceived in dollars and cents and not percentage!
Happy Negotiating!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Business 101: Be Liquid!
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Business 101: Be Liquid!”
As the Global Marketplace experiences disruptiveness and turbulence, the entrepreneurs of tomorrow will have to revert back to the business basics and come up with new formulated models that will sustain their businesses. Over the years a number of business owners have taken the good times for granted and failed to develop a long term strategy for their business and did not incorporate the ‘bad economical times’ in their thinking.
One of the key concepts that need to be addressed very effectively in everyday dealings is that of being liquid. Majority of the banks are not lending and have restricted to only a certain arena, this creates a challenge for small business owners since they gamble on these financial institutions for products such as working capital loan, lines of credits to even short term loans. Most of these businesses are not liquid enough to sustain a long term financial turmoil and that is one of the reasons we are seeing a hike in the bankruptcy filings amongst the small businesses.
In order for us to come out strong out of this recession, we will need to restructure our business, and first and foremost, our mindset. We will need to address every line item on our financials from top to the bottom and conqueror it. These business owners have worked very hard to get to the point where they are today, perhaps even 3-4 generations worth of work. So, the key element is to be liquid and treat every expense or liability to the businesses as a self sustaining entity. Take your accounts receivables, if you simply shorten the number of days of outstanding, this will take care of the cash flow without much work. All the new terms need to be re-evaluated and perhaps even new guidelines and terms need to be prepared.
As Charles Darwin coined “survival of the fittest”. Well, this applies to the current economic cycle we are seeing on the global scale. Perhaps not so severe in other countries but we will need to not only survive but emerge with our head up high and capitalize and position our entities so that they are in a position of financial gains and not loss. As a businessman you have come a long way and I respect that and all the hard work you have put in, but don’t stand alone. You will need to bring in professionals who can assist you to overcome your short term challenges and to re-strategize and help you move forward with more ammunition. The current economic cycle we are in right now, cannot be looked at as times of bad economy, rather times of plenty of opportunities. This is the very time to be profitable and grow. So be pragmatic and prudent in your dealings and get ready to grow your business like never before!
My Thoughts: You are 99% there, what is another 1%!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
As the Global Marketplace experiences disruptiveness and turbulence, the entrepreneurs of tomorrow will have to revert back to the business basics and come up with new formulated models that will sustain their businesses. Over the years a number of business owners have taken the good times for granted and failed to develop a long term strategy for their business and did not incorporate the ‘bad economical times’ in their thinking.
One of the key concepts that need to be addressed very effectively in everyday dealings is that of being liquid. Majority of the banks are not lending and have restricted to only a certain arena, this creates a challenge for small business owners since they gamble on these financial institutions for products such as working capital loan, lines of credits to even short term loans. Most of these businesses are not liquid enough to sustain a long term financial turmoil and that is one of the reasons we are seeing a hike in the bankruptcy filings amongst the small businesses.
In order for us to come out strong out of this recession, we will need to restructure our business, and first and foremost, our mindset. We will need to address every line item on our financials from top to the bottom and conqueror it. These business owners have worked very hard to get to the point where they are today, perhaps even 3-4 generations worth of work. So, the key element is to be liquid and treat every expense or liability to the businesses as a self sustaining entity. Take your accounts receivables, if you simply shorten the number of days of outstanding, this will take care of the cash flow without much work. All the new terms need to be re-evaluated and perhaps even new guidelines and terms need to be prepared.
As Charles Darwin coined “survival of the fittest”. Well, this applies to the current economic cycle we are seeing on the global scale. Perhaps not so severe in other countries but we will need to not only survive but emerge with our head up high and capitalize and position our entities so that they are in a position of financial gains and not loss. As a businessman you have come a long way and I respect that and all the hard work you have put in, but don’t stand alone. You will need to bring in professionals who can assist you to overcome your short term challenges and to re-strategize and help you move forward with more ammunition. The current economic cycle we are in right now, cannot be looked at as times of bad economy, rather times of plenty of opportunities. This is the very time to be profitable and grow. So be pragmatic and prudent in your dealings and get ready to grow your business like never before!
My Thoughts: You are 99% there, what is another 1%!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Tuesday, September 8, 2009
Venture Capital / Investor: Prepare your Pitch!
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Venture Capital / Investor: Prepare your Pitch!”
At Waterbury Financial Strategies Inc, we see an average of 900 proposals a month that are seeking funding from various different sectors and industries not to mention the spread in demographics. As the Venture Capital world is experiencing some major shift in paradigm, the numbers of deals that are being funded are much less compared to previous years. I have seen innumerous business plans and proposals. They all have one thing in common: hockey stick projections with no methodical and definite supporting references.
If you make it through the first round, be prepared for a cohesive and structured round where you will need to know each and everything you are talking about and you will be asked to provide supporting documentation to back up your figures and data. Should you fail to present it accordingly, you might not be invited to come back.
I would advise you to learn your material very well and present it in a very professional manner because the last thing the investors want to think is you are not respecting their time when you come unprepared. Own your project and idea! From the day you get the idea, you need to dream it and make it into reality and believe in its existence. Remember, the VC look at very many projects and come across individuals from various different industries. If there is a slight hesitation on your end, they will read you in matter of minutes. And sometimes it is ok not to have every answer, but follow up is the key!
One key element that most of the proposal lack is the economic cycles. You have to show value in your concept and how you are going to steer through a financial crisis. Many of the financial projections are based on simple forecasting methods during good times and not bad. A proper valuation needs to be performed and thoroughly addressed both from the financial standpoint as well as business development. One of the red flags is the compensation factor. Are you awarding yourself and your team a fair compensation? Many times it is frowned on when we see a huge salary for the CEO, and this just doesn’t jive.
I will follow up with a detailed breakdown of how to prepare and what needs to be addressed in the proposal to be a success! So keep reading.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
At Waterbury Financial Strategies Inc, we see an average of 900 proposals a month that are seeking funding from various different sectors and industries not to mention the spread in demographics. As the Venture Capital world is experiencing some major shift in paradigm, the numbers of deals that are being funded are much less compared to previous years. I have seen innumerous business plans and proposals. They all have one thing in common: hockey stick projections with no methodical and definite supporting references.
If you make it through the first round, be prepared for a cohesive and structured round where you will need to know each and everything you are talking about and you will be asked to provide supporting documentation to back up your figures and data. Should you fail to present it accordingly, you might not be invited to come back.
I would advise you to learn your material very well and present it in a very professional manner because the last thing the investors want to think is you are not respecting their time when you come unprepared. Own your project and idea! From the day you get the idea, you need to dream it and make it into reality and believe in its existence. Remember, the VC look at very many projects and come across individuals from various different industries. If there is a slight hesitation on your end, they will read you in matter of minutes. And sometimes it is ok not to have every answer, but follow up is the key!
One key element that most of the proposal lack is the economic cycles. You have to show value in your concept and how you are going to steer through a financial crisis. Many of the financial projections are based on simple forecasting methods during good times and not bad. A proper valuation needs to be performed and thoroughly addressed both from the financial standpoint as well as business development. One of the red flags is the compensation factor. Are you awarding yourself and your team a fair compensation? Many times it is frowned on when we see a huge salary for the CEO, and this just doesn’t jive.
I will follow up with a detailed breakdown of how to prepare and what needs to be addressed in the proposal to be a success! So keep reading.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Federal Deficits keeps soaring and prolongs Recession.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Federal Deficits keeps soaring and prolongs Recession”
As the Federal Deficits soar, it puts our economy in a perplexing position amongst the foreign investors who are holding these notes and are reluctant to offer any further resources regardless of zero default by the federal government. The question they face with, whether the US can service its debt not to mention the ticking time bombs, the Medicare and Social Security. The federal revenues also keep declining based on a various external factors such as loss of jobs which restricts the consumers to spend money which in return lowers the sales tax. There is also a formidable struggle for the local businesses as the bankruptcy filings have gone up to almost 62% reflecting 55,000 business filings.
The small businesses account for 70% of the employment and we don’t see any funds allocated in the stimulus package. Well, if you studied economics you would know that there are two distinct possibilities for the government to pull out of this recession. First, the government increases taxes through which they can increase their revenues to recoup and offset all that spending. Even with that being said, this would be a challenge simply due to the nature of the current financial system being in a chaos. A number of businesses are already paying taxes in excess of 50% when combined with federal employment tax, social security, state taxes, federal, sales tax, etc.
Second option for controlling the recession would be by simply printing money as the gold standards are not applicable. This will simply create inflation and also raise the prices and devalue the dollar. Based on the current rate that the Federal Reserve is printing money, we will see a huge drop in the dollar valuation in the upcoming 12-18 months. This would perhaps be the most favorable option for them due to simple economics. When you are in inflation, the dollar is devalued and the prices go up. Once the dollar is devalued, the government collects more money quickly. However this is also a very risky game especially for foreign investors. Not only we will be in inflation but the Federal Reserve will need to pull all that money back, so we are caught in a catch 22. After all, we do not want to end up like Zimbabwe with inflation rising exponentially.
This is perhaps the very reason why the foreign investors are concerned with the current state of the US Economy and not knowing which way the current administration is going to turn to overcome this recession. We are already seeing the government burdening the new generation with exorbitant debt and obligations, what is going to be next? The Chinese have been proposing of an idea to use a global currency system to replace the dollar. If that happens, not only are we going to lose the upper hand in the global arena but also in the Oil trading platforms and currency. We just took a back seat this week based on a report out of Geneva, Switzerland that American is now the 2nd most competitive economy in the world after Switzerland.
My Thoughts: Make wise investments and possibly diversify your holdings in a Global Market. Position your companies so that they are on the gaining side and not losing. All the best Men!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
As the Federal Deficits soar, it puts our economy in a perplexing position amongst the foreign investors who are holding these notes and are reluctant to offer any further resources regardless of zero default by the federal government. The question they face with, whether the US can service its debt not to mention the ticking time bombs, the Medicare and Social Security. The federal revenues also keep declining based on a various external factors such as loss of jobs which restricts the consumers to spend money which in return lowers the sales tax. There is also a formidable struggle for the local businesses as the bankruptcy filings have gone up to almost 62% reflecting 55,000 business filings.
The small businesses account for 70% of the employment and we don’t see any funds allocated in the stimulus package. Well, if you studied economics you would know that there are two distinct possibilities for the government to pull out of this recession. First, the government increases taxes through which they can increase their revenues to recoup and offset all that spending. Even with that being said, this would be a challenge simply due to the nature of the current financial system being in a chaos. A number of businesses are already paying taxes in excess of 50% when combined with federal employment tax, social security, state taxes, federal, sales tax, etc.
Second option for controlling the recession would be by simply printing money as the gold standards are not applicable. This will simply create inflation and also raise the prices and devalue the dollar. Based on the current rate that the Federal Reserve is printing money, we will see a huge drop in the dollar valuation in the upcoming 12-18 months. This would perhaps be the most favorable option for them due to simple economics. When you are in inflation, the dollar is devalued and the prices go up. Once the dollar is devalued, the government collects more money quickly. However this is also a very risky game especially for foreign investors. Not only we will be in inflation but the Federal Reserve will need to pull all that money back, so we are caught in a catch 22. After all, we do not want to end up like Zimbabwe with inflation rising exponentially.
This is perhaps the very reason why the foreign investors are concerned with the current state of the US Economy and not knowing which way the current administration is going to turn to overcome this recession. We are already seeing the government burdening the new generation with exorbitant debt and obligations, what is going to be next? The Chinese have been proposing of an idea to use a global currency system to replace the dollar. If that happens, not only are we going to lose the upper hand in the global arena but also in the Oil trading platforms and currency. We just took a back seat this week based on a report out of Geneva, Switzerland that American is now the 2nd most competitive economy in the world after Switzerland.
My Thoughts: Make wise investments and possibly diversify your holdings in a Global Market. Position your companies so that they are on the gaining side and not losing. All the best Men!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Monday, September 7, 2009
Which Businesses qualify for a Negative Interest Rate Loan in the Stimulus Package?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Which Businesses qualify for a Negative Interest Rate Loan in the Stimulus Package?”
Fellow Entrepreneurs I hope I have captivated your interest for the next few minutes. Yes you read the headline correctly. The so called negative loan is called Cost Segregation. This is simply an IRS approved methodology to depreciate the components of a building that an enterprise or investor owns according to its logical progression based on its shelf life. In order for the IRS to accept this study, it has to be performed very carefully and with thorough understanding of not only materials engineering but IRS guidelines and proper depreciation models. This study is generally performed by engineers and architects. This study yields proper depreciation figures both from previous years as well as future. A business can recoup all the overpaid takes since the acquisition of the building and can apply towards future tax credit.
What are the benefits of this study and cost associated with it? Well, there are a number of benefits from creating additional cash flow for businesses especially with the current economic situation we are facing; this would definitely be an option for business as many of them are not liquid enough to sustain their daily operations and perhaps future may seem bleak. There are other benefits such as reducing your insurance premiums in certain cases to even freeing up cash for other investments. Generally the return is phenomenal, anywhere from 1000% and upwards.
A recent study that was performed by Waterbury Financial Strategies’ Cost Segregation Department on a chain of 47 Motels yield $37.6M in tax benefits. This is almost like buying 7 motels at $5M each! Well, and the group that owned these motels, did just that. The engineers are Waterbury Financial Strategies Inc have performed over 15,000 studies some including the Fortune 500 Companies and crediting in excess of over $2 Billion to the clients.
So, why are more companies leaving ample money on the table? Over 80% of these companies have not heard of Cost Segregation and their accountants do not have the knowledge and expertise to perform these studies. Most of the accountants who perform these studies generally outsource to a professional engineering firm. A simple example of how it works. Generally when a commercial property is purchased, the fixtures and the building is depreciated using a straight line depreciation method over 39 year time period. This means all the components in the building are now on a 39 year life cycle. As you know, a carpet in a building is not going to last for 39 years, so come 5th year when the owner replaces the carpet, he still has 34 years to recoup the cost from the previous carpet. That means he is over paying on his taxes and not figuring out the time value of money.
Using proper methods can not only save a business hundreds of thousands of dollars but also generate more revenues and cash flow. For more information on this contact your local consultant at Waterbury Financial Strategies for a Free Preliminary Analysis on your property.
Get those Refunds back Wise Men!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Fellow Entrepreneurs I hope I have captivated your interest for the next few minutes. Yes you read the headline correctly. The so called negative loan is called Cost Segregation. This is simply an IRS approved methodology to depreciate the components of a building that an enterprise or investor owns according to its logical progression based on its shelf life. In order for the IRS to accept this study, it has to be performed very carefully and with thorough understanding of not only materials engineering but IRS guidelines and proper depreciation models. This study is generally performed by engineers and architects. This study yields proper depreciation figures both from previous years as well as future. A business can recoup all the overpaid takes since the acquisition of the building and can apply towards future tax credit.
What are the benefits of this study and cost associated with it? Well, there are a number of benefits from creating additional cash flow for businesses especially with the current economic situation we are facing; this would definitely be an option for business as many of them are not liquid enough to sustain their daily operations and perhaps future may seem bleak. There are other benefits such as reducing your insurance premiums in certain cases to even freeing up cash for other investments. Generally the return is phenomenal, anywhere from 1000% and upwards.
A recent study that was performed by Waterbury Financial Strategies’ Cost Segregation Department on a chain of 47 Motels yield $37.6M in tax benefits. This is almost like buying 7 motels at $5M each! Well, and the group that owned these motels, did just that. The engineers are Waterbury Financial Strategies Inc have performed over 15,000 studies some including the Fortune 500 Companies and crediting in excess of over $2 Billion to the clients.
So, why are more companies leaving ample money on the table? Over 80% of these companies have not heard of Cost Segregation and their accountants do not have the knowledge and expertise to perform these studies. Most of the accountants who perform these studies generally outsource to a professional engineering firm. A simple example of how it works. Generally when a commercial property is purchased, the fixtures and the building is depreciated using a straight line depreciation method over 39 year time period. This means all the components in the building are now on a 39 year life cycle. As you know, a carpet in a building is not going to last for 39 years, so come 5th year when the owner replaces the carpet, he still has 34 years to recoup the cost from the previous carpet. That means he is over paying on his taxes and not figuring out the time value of money.
Using proper methods can not only save a business hundreds of thousands of dollars but also generate more revenues and cash flow. For more information on this contact your local consultant at Waterbury Financial Strategies for a Free Preliminary Analysis on your property.
Get those Refunds back Wise Men!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Assisted Living Facilities: The Redefined Powerhouses of the New Economy?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Assisted Living Facilities: The Redefined Powerhouses of the New Economy?”
Every year thousands of golden agers Americans migrate to their new homes, the assisted living facilities and are left to spend the rest of their lives to play tennis and socialize amongst other retirees to start all over again. Should the younger generation be attentive to this elite breed of what is commonly referred to as the baby boomers?
After all who are these retirees and just how are they contributing to the current neoteric society? Just how have they enriched the American Culture and humanity in general? I call them the powerhouses of the future of America. These men and women are so strong willed that they can take on a project from start to finish and foster entrepreneurship all over again. These are the same individuals that where pioneers in the field of technology, manufacturing, healthcare, etc. A number of these individuals posses so much endurance and determination that they can surpass the energies of recent Ivy League graduates, no offense grads. It is the passion and enthusiasm that keeps them going day in day out. These retirees have a resume full of countless hours of experience and hard work; they have scars on their bodies to prove their contribution to the creation of wealth for many generations.
The current financial models are more complex and intricate then what has been capitalized in the past, however as we know most of the models are simply build on the old models. We need to replicate older models and build on them and go back to the basics. Wisdom is no longer part of the equation in many entities and destructiveness is being embraced which in return creates a so called short term positive aftermath. However at what cost are we forfeiting our values, morals, ethics, and business practices? These men are fine breed, or like a fine wine that is ready to be enjoyed. We need to get in front of these men of honor and do some serious note taking. We need to implement on their thoughts and ideas. Perhaps transfigure a little so that they may fit into our economic engine and replicate it into much broader spectrum, such as the countries with emerging economies. So much wisdom is stored into these men, and one of the factors that need to be part of merit is the piece of golden advice.
My Thoughts: The system these men put together a number of years ago was of an individual going to work every day working for one company for their lifetime and retire with a pension. What happened to that delicate system? Was this system driven out of business for us to create a New Economy for us? Well, the economy is so volatile in the current times that things change in microseconds and not days. So, we will either need to stay a step ahead of the technology. So, let’s pick up a note pad and head to these assisted living facilities, call grandparents to not only learn about their experience but also to ask some questions as to what would you do if you were in your 20s? So men and women of this great nation, all the best, I would love to hear some of the responses you get. On your way to the assisted living facility, pick up an old fashioned ice cream for them as well, they deserve it.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Every year thousands of golden agers Americans migrate to their new homes, the assisted living facilities and are left to spend the rest of their lives to play tennis and socialize amongst other retirees to start all over again. Should the younger generation be attentive to this elite breed of what is commonly referred to as the baby boomers?
After all who are these retirees and just how are they contributing to the current neoteric society? Just how have they enriched the American Culture and humanity in general? I call them the powerhouses of the future of America. These men and women are so strong willed that they can take on a project from start to finish and foster entrepreneurship all over again. These are the same individuals that where pioneers in the field of technology, manufacturing, healthcare, etc. A number of these individuals posses so much endurance and determination that they can surpass the energies of recent Ivy League graduates, no offense grads. It is the passion and enthusiasm that keeps them going day in day out. These retirees have a resume full of countless hours of experience and hard work; they have scars on their bodies to prove their contribution to the creation of wealth for many generations.
The current financial models are more complex and intricate then what has been capitalized in the past, however as we know most of the models are simply build on the old models. We need to replicate older models and build on them and go back to the basics. Wisdom is no longer part of the equation in many entities and destructiveness is being embraced which in return creates a so called short term positive aftermath. However at what cost are we forfeiting our values, morals, ethics, and business practices? These men are fine breed, or like a fine wine that is ready to be enjoyed. We need to get in front of these men of honor and do some serious note taking. We need to implement on their thoughts and ideas. Perhaps transfigure a little so that they may fit into our economic engine and replicate it into much broader spectrum, such as the countries with emerging economies. So much wisdom is stored into these men, and one of the factors that need to be part of merit is the piece of golden advice.
My Thoughts: The system these men put together a number of years ago was of an individual going to work every day working for one company for their lifetime and retire with a pension. What happened to that delicate system? Was this system driven out of business for us to create a New Economy for us? Well, the economy is so volatile in the current times that things change in microseconds and not days. So, we will either need to stay a step ahead of the technology. So, let’s pick up a note pad and head to these assisted living facilities, call grandparents to not only learn about their experience but also to ask some questions as to what would you do if you were in your 20s? So men and women of this great nation, all the best, I would love to hear some of the responses you get. On your way to the assisted living facility, pick up an old fashioned ice cream for them as well, they deserve it.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Saturday, September 5, 2009
American Hospitals: Bleeding Money Profusely?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “ American Hospitals: Bleeding Money Profusely?”
American Hospitals are commanded no different than some of the major airlines, a revamp of the overall system is not only integral but a Must! A total mindset is conclusive for the executives of these hospitals to survive this ride as the rules of the engagements have changed and the Health Care Reform will take place one way or the other. At least we hope! There is no doubt whether we need a healthcare reform, we absolutely do! The question is, how is it structured? Are the Americans benefiting regardless of their race, creed, age, sex? Where do these hospitals stand?
The Reform will impact the bottom line of these hospitals in a brimming way. Hospitals have been losing money for many years, this is no new scoop. However, we are facing more critical times where the government is about to pull the plug on some of these hospitals through various channels. Hospitals are mismanaging their funds and there is a very high expense ratio and upon auditing some of these hospitals we have found savings of over 22% in some cases that goes directly to their bottom line. This figure can be looked at as 22% of increased revenue.
A number of hospitals are run by executives who are in their golden years, have old ways of doing things, and are very reluctant to adopt to changes that are for the betterment of not only their hospitals but the community in general. I was astounded when I saw how some of these hospitals are spending money. Money is being bled in almost every department in these hospitals and there is no sense of accountability from top down. As Board of Directors to these hospitals it is your moral responsibility to take charge of the financials and run the hospitals as an entity that belongs to you. Most of these executives demand a high six figure paying salary and when their ship sinks, guess what, they are the first one to abandon it and jump to another ship! If you are getting six figure income, you better deliver six figure kind of results.
My Thoughts: Board of Directors, you don’t have much time to turn around this eighteen wheeler overnight. Your driver has fallen asleep on the wheel, and before you deprive your community with proper healthcare at reasonable cost, I urge you to take some time and learn how to read financials of the hospital or get some professional in there to help you with the turnaround. Swallow your pride, leave you ego at the country club, leave you emotions at home, simply bring your talents and passion to work. We will be waiting for you at the door.
So Do it! Save your Communities. Do it for little Joshua who needs a surgery!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
American Hospitals are commanded no different than some of the major airlines, a revamp of the overall system is not only integral but a Must! A total mindset is conclusive for the executives of these hospitals to survive this ride as the rules of the engagements have changed and the Health Care Reform will take place one way or the other. At least we hope! There is no doubt whether we need a healthcare reform, we absolutely do! The question is, how is it structured? Are the Americans benefiting regardless of their race, creed, age, sex? Where do these hospitals stand?
The Reform will impact the bottom line of these hospitals in a brimming way. Hospitals have been losing money for many years, this is no new scoop. However, we are facing more critical times where the government is about to pull the plug on some of these hospitals through various channels. Hospitals are mismanaging their funds and there is a very high expense ratio and upon auditing some of these hospitals we have found savings of over 22% in some cases that goes directly to their bottom line. This figure can be looked at as 22% of increased revenue.
A number of hospitals are run by executives who are in their golden years, have old ways of doing things, and are very reluctant to adopt to changes that are for the betterment of not only their hospitals but the community in general. I was astounded when I saw how some of these hospitals are spending money. Money is being bled in almost every department in these hospitals and there is no sense of accountability from top down. As Board of Directors to these hospitals it is your moral responsibility to take charge of the financials and run the hospitals as an entity that belongs to you. Most of these executives demand a high six figure paying salary and when their ship sinks, guess what, they are the first one to abandon it and jump to another ship! If you are getting six figure income, you better deliver six figure kind of results.
My Thoughts: Board of Directors, you don’t have much time to turn around this eighteen wheeler overnight. Your driver has fallen asleep on the wheel, and before you deprive your community with proper healthcare at reasonable cost, I urge you to take some time and learn how to read financials of the hospital or get some professional in there to help you with the turnaround. Swallow your pride, leave you ego at the country club, leave you emotions at home, simply bring your talents and passion to work. We will be waiting for you at the door.
So Do it! Save your Communities. Do it for little Joshua who needs a surgery!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Venture Capital: Is it on a Diet Pill?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “ Venture Capital: Is it on a Diet Pill?”
Venture Capital Outlook for the upcoming years is as obscure as ever due to many external factors such as the government intervention in the private sector to the state of the economy which is very fragile across various industries and sectors. Capitalism is no longer being conceived in a positive manner and no longer are those values being embraced. It is simple, the working model is broke. We need fresh ideas and blood to re-invent the New American Standards across all different platforms.
The Institutional investors are gearing up and getting more conservative and the total commitments to alternative assets is shrinking rapidly and the industry is shrinking just as fast as it was growing. More and more Venture Capital Firms are seeking alternative means of keeping their activity up to par and many are going back to the basics, repositioning their approach of not only controlling their investment in companies in the backend, financially but also in the frontend of business development and forming strategies that will fetch revenues for the next 3-5 years before a solid exit strategy is formulated by the self correcting marketplace. Personally, I would conservatively estimate that a good 30-50% of the Venture Capital Firms will throw in the towel and walk away from the industry. Same activity was seen during the times when a number of mortgage companies decided to leave the Subprime and Prime Mortgage Arena. The smarter ones recouped their investment, made money and moved on. Where are they now? We are seeing the same activity in the financial sector, banking mainly.That being said, this could very well be a healthy transformation for many companies that are positioned well with strong strategies and people to back them up. My thoughts: embrace good strategies, cut down costs and first restructure your organization and form strong ethical relationships with competitors by joining forces to that you can stand strong in front of bigger players with just as many resources, combined.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Venture Capital Outlook for the upcoming years is as obscure as ever due to many external factors such as the government intervention in the private sector to the state of the economy which is very fragile across various industries and sectors. Capitalism is no longer being conceived in a positive manner and no longer are those values being embraced. It is simple, the working model is broke. We need fresh ideas and blood to re-invent the New American Standards across all different platforms.
The Institutional investors are gearing up and getting more conservative and the total commitments to alternative assets is shrinking rapidly and the industry is shrinking just as fast as it was growing. More and more Venture Capital Firms are seeking alternative means of keeping their activity up to par and many are going back to the basics, repositioning their approach of not only controlling their investment in companies in the backend, financially but also in the frontend of business development and forming strategies that will fetch revenues for the next 3-5 years before a solid exit strategy is formulated by the self correcting marketplace. Personally, I would conservatively estimate that a good 30-50% of the Venture Capital Firms will throw in the towel and walk away from the industry. Same activity was seen during the times when a number of mortgage companies decided to leave the Subprime and Prime Mortgage Arena. The smarter ones recouped their investment, made money and moved on. Where are they now? We are seeing the same activity in the financial sector, banking mainly.That being said, this could very well be a healthy transformation for many companies that are positioned well with strong strategies and people to back them up. My thoughts: embrace good strategies, cut down costs and first restructure your organization and form strong ethical relationships with competitors by joining forces to that you can stand strong in front of bigger players with just as many resources, combined.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
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