Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Global Recession: A Paradigm Shift?”
As we see challenges in the global economies, we must also simulate new models not only to get us through the survival mode but also to make our organizations stronger and more powerful than ever before. However, the question we must ask ourselves as the executives of our comprehensive domain, can we handle the growth? Are we ready for the paradigm shift?
With or without you, this shift is happening across various industries and sectors and it has never been as aggressive in the past. Paradigm shift is contributing and making its presence appreciative in the organizational structure of many creative companies and bring worlds together and making them smaller. It is now that we must embrace and accept it by formulating new strategies for not only growth but sustaining current state.
This recession brings abundance of opportunities for any business regardless of industry they are in. If you are an entrepreneur and can’t seem to find that gold nugget, I say you are not looking hard enough. You need to look harder and find the opportunity within your industry. We simply have to position ourselves to be on the receiving side and not on the giving side.
In the next few years will encounter a number of changes in the business world and many times these changes will affect us as well, but we have to be the judge of whether that impacts us in a positive manner and not negative. This shift needs to be initiated in every organization from the frontend such as business development and sales to the backend like the financials, etc.
My Thoughts: Create positive synergies amongst your partners and related industries; don’t wait for them to happen! Be creative and think logically before making a commitment, especially long term commitment. Are we ready for the Paradigm Shift? Or should I ask are you ready for the Shift?
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Monday, October 5, 2009
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
Wednesday, September 9, 2009
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
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