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
Tuesday, September 15, 2009
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
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