Over my years as a technical student and now management student, I am struck by the number of people who say they want to be an entrepreneur. I am also struck by how evident it is that they don't have "entrepreneurial DNA."
Entrepreneurship is rarely a planned journey. I recently met with a b-school student in management fest who was presenting his B Plan. "I have a 10 year plan towards becoming an entrepreneur," he told me. Really? A 10-year plan to become an entrepreneur? What's that all about?
He wasn't the only person to say such things to me. Here are some of the other excuses I have heard from people when I asked them why they weren't being an entrepreneur, despite their professed love for it.
"I want to spend some years learning first, and building a base of security."
"I do not have access to the capital or resources to start."
"I know I want to be an entrepreneur, I just don't have the ideas."
These reasons all have a modicum of validity, but entrepreneurship is not something you just plan or do, it is something that you have to feel. Entrepreneurs hold an idealism and risk profile that makes them fundamentally different. They don't think about security--in fact they are often uncomfortable with it. And they have the guts to bet it over and over again. They think less about what they lack and more about what they can achieve with what they have. In a sea of ambiguity, they forge ahead with an incredible fortitude.
But just because someone is starting something or comes forward with an idea, it doesn't mean that they are entrepreneurial. What's more, there are obviously numerous people in entrepreneurial situations who should not be. It is similar to something I once read: just because someone goes to Temple, it does not necessarily make them a Hindu. True entrepreneurship goes fundamentally deeper as a belief system and as a mission. It is for this reason that when venture capitalist evaluate early stage entrepreneurs that they look for that "fire in the belly" and that "dare to be great" attitude and feeling of being an Invincible. When you've seen someone with it you know it.
Here is an analogy and question I ask people when assessing their potential for entrepreneurship: Are you a bond or an equity? I believe that most people grow up dreaming to be an equity (or at least thought of as equity), but end up working in high-yield bond situations. If not acted on early enough, these passions often become compromised as the lure of less risky alternatives and the reality of life-stage responsibilities present themselves. It is the guts to go after risk and the perseverance to stick it out that make entrepreneurs more equity-like than bond-like. Business schools are a fascinating places to watch equity people turn into bonds people, or at best to find "equity in the closet" - folks who deep down wish to start something but then decide to take bond-like jobs.
We know that this economy is increasing the number of graduating business school people who are willing to enter into start-ups and take on more risky ventures. At the Business Plan competition where I was recently partcipated, I believe that the number of plans was up some 60 percent this year over last year. If the economic uncertainty does nothing else, but pull some of that equity out of the closet and gets a few entrepreneurs realizing their full potential and creating new innovations, then it's done some good.
So... come on, which are you? Bond or an equity?
Over my years as an entrepreneur and now venture capitalist, I am struck by the number of people who say they want to be an entrepreneur. I am also struck by how evident it is that they don't have "entrepreneurial DNA."
Entrepreneurship is rarely a planned journey. I recently met with a b-school student who was interviewing at our firm. "I have a 10 year plan towards becoming an entrepreneur," he told me. Really? A 10-year plan to become an entrepreneur? What's that all about?
He wasn't the only person to say such things to me. Here are some of the other excuses I have heard from people when I asked them why they weren't being an entrepreneur, despite their professed love for it.
"I want to spend some years learning first, and building a base of security."
"I do not have access to the capital or resources to start."
"I know I want to be an entrepreneur, I just don't have the ideas."
These reasons all have a modicum of validity, but entrepreneurship is not something you just plan or do, it is something that you have to feel. Entrepreneurs hold an idealism and risk profile that makes them fundamentally different. They don't think about security--in fact they are often uncomfortable with it. And they have the guts to bet it over and over again. They think less about what they lack and more about what they can achieve with what they have. In a sea of ambiguity, they forge ahead with an incredible fortitude.
But just because someone is starting something or comes forward with an idea, it doesn't mean that they are entrepreneurial. What's more, there are obviously numerous people in entrepreneurial situations who should not be. It is similar to something I once read: just because someone goes to church, it does not necessarily make them a Christian. True entrepreneurship goes fundamentally deeper as a belief system and as a mission. It is for this reason that when we evaluate early stage entrepreneurs that we look for that "fire in the belly" and that "dare to be great" attitude. When you've seen someone with it you know it.
Here is an analogy and question I ask people when assessing their potential for entrepreneurship: Are you a bond or an equity? I believe that most people grow up dreaming to be an equity (or at least thought of as equity), but end up working in high-yield bond situations. (The proverbial post-business school career path of: "I'll work here for a few years, and then do my entrepreneurial passion."). If not acted on early enough, these passions often become compromised as the lure of less risky alternatives and the reality of life-stage responsibilities present themselves. It is the guts to go after risk and the perseverance to stick it out that make entrepreneurs more equity-like than bond-like. Business schools are a fascinating places to watch equity people turn into bonds people, or at best to find "equity in the closet" - folks who deep down wish to start something but then decide to take bond-like jobs.
I am hearing that this economy is increasing the number of graduating business school people who are willing to enter into start-ups and take on more risky ventures. At the Harvard Business School Business Plan competition where I was recently a judge, I believe that the number of plans was up some 60 percent this year over last year. If the economic uncertainty does nothing else, but pull some of that equity out of the closet and gets a few entrepreneurs realizing their full potential and creating new innovations, then it's done some good.
So... come on, which are you? Bond or an equity?
Thursday, September 24, 2009
Monday, September 21, 2009
How to Beat the Next Recession
We're in the midst of the worst decline in auto sales history — yet Toyota can't make the newest model of its hybrid gas-electric Prius fast enough. According to the New York Times, the world's largest automaker has received 80,000 pre-orders already, one-fifth of the company's Prius sales goal for the year. On the heels of the depressing GM and Chrysler bankruptcies and layoffs, Toyota has instituted overtime production in its Tsutsumi plant in Japan.
This news comes on the heels of one of Honda's latest entries in the hybrid market, the significantly revamped Insight, becoming the bestselling car in Japan in April — not the bestselling hybrid, but the bestselling vehicle — racking up over 10,000 sales at $19,000 a pop.
The era of niche eco-vehicles is over. With Toyota and Honda experiencing their first losses in decades, the vast success of the green parts of their product portfolios must be very welcome — a life boat in troubled times.
It's educational to think for a minute about when the foundations of these successes were built. Toyota started development on the first generation of Prius, not one, but two recessions ago. Sixteen years ago, on the heels of the early 90s downturn, Toyota started designing what it thought would fit the demands of the 21st Century. Early in the process — and even though oil was only $17 per barrel — the team decided that a critical focus should be "environment." And while I can't say exactly when Honda decided to completely retool their earlier Insight model, how long after the early 2000s recession could it possibly have been?
A wide range of companies seem to be making moves now to prepare for a greener future. In addition to well-publicized mega-goals for growth of green product sales from the likes of P&G, GE, and IBM, others are signaling their intentions to play in new spaces. Taiwan Semiconductor Manufacturing (TSMC), which the New York Times calls "one of the most formidable manufacturers on the planet," has indicated, strongly, that it will try its hand in renewable energy and next-generation lighting. TSMC just reorganized at the most senior levels to do so. Here's the Times on the shift:
"The company declared its new intentions with a bold gesture. It stripped Rick Tsai of his chief executive title and placed him in charge of a new unit created to look into fresh business opportunities."
In addition to shaking up these growing industries, and possibly helping to lower the costs of both solar and LED lights, the play is a smart bet on green innovation that should help keep TSMC growing for years — perhaps paying off big time during the next tech spending downturn (which may happen sooner than a global recession).
TSMC is not the only tech company making noise about looking for growth outside of traditional spaces. Applied Materials, the guys behind the machines behind semiconductors, moved strongly into solar a few years ago — it's a bright spot for the company during this brutal drop in tech spending. And Andy Grove, legendary CEO of Intel, has suggested strongly that his Alma mater should use its technological expertise to make better batteries
Innovation takes time. Building new markets that can grow into significant sources of revenue takes hard work and patience. So what's going to prop up your earnings the next time the world, or just your industry, goes into slow-down mode? What will your customers want and need 10 years from now? One core way to answer that question is to think hard about coming environmental pressures and trends.
Mega-regulation on carbon will raise the cost of carbon-intensive value chains. Water shortages could severely restrict growth in key regions or in specific product markets. Rising concerns about chemicals and toxicity will radically shift demand for some products (think about what's happened in just a few years to the baby bottles, toys, and other plastics that include phthalates or the chemical "BPA").
Think through these large trends, ask heretical questions (such as, "What if we used no water?"), and use the green lens to spot long-term trends. This process should start your innovation wheels turning. While we climb out of this downturn — and green strategy can play a critical role in helping companies do that — it's good to start thinking longer term. Believe it or not, it's time to get ready for the next slowdown now.
This news comes on the heels of one of Honda's latest entries in the hybrid market, the significantly revamped Insight, becoming the bestselling car in Japan in April — not the bestselling hybrid, but the bestselling vehicle — racking up over 10,000 sales at $19,000 a pop.
The era of niche eco-vehicles is over. With Toyota and Honda experiencing their first losses in decades, the vast success of the green parts of their product portfolios must be very welcome — a life boat in troubled times.
It's educational to think for a minute about when the foundations of these successes were built. Toyota started development on the first generation of Prius, not one, but two recessions ago. Sixteen years ago, on the heels of the early 90s downturn, Toyota started designing what it thought would fit the demands of the 21st Century. Early in the process — and even though oil was only $17 per barrel — the team decided that a critical focus should be "environment." And while I can't say exactly when Honda decided to completely retool their earlier Insight model, how long after the early 2000s recession could it possibly have been?
A wide range of companies seem to be making moves now to prepare for a greener future. In addition to well-publicized mega-goals for growth of green product sales from the likes of P&G, GE, and IBM, others are signaling their intentions to play in new spaces. Taiwan Semiconductor Manufacturing (TSMC), which the New York Times calls "one of the most formidable manufacturers on the planet," has indicated, strongly, that it will try its hand in renewable energy and next-generation lighting. TSMC just reorganized at the most senior levels to do so. Here's the Times on the shift:
"The company declared its new intentions with a bold gesture. It stripped Rick Tsai of his chief executive title and placed him in charge of a new unit created to look into fresh business opportunities."
In addition to shaking up these growing industries, and possibly helping to lower the costs of both solar and LED lights, the play is a smart bet on green innovation that should help keep TSMC growing for years — perhaps paying off big time during the next tech spending downturn (which may happen sooner than a global recession).
TSMC is not the only tech company making noise about looking for growth outside of traditional spaces. Applied Materials, the guys behind the machines behind semiconductors, moved strongly into solar a few years ago — it's a bright spot for the company during this brutal drop in tech spending. And Andy Grove, legendary CEO of Intel, has suggested strongly that his Alma mater should use its technological expertise to make better batteries
Innovation takes time. Building new markets that can grow into significant sources of revenue takes hard work and patience. So what's going to prop up your earnings the next time the world, or just your industry, goes into slow-down mode? What will your customers want and need 10 years from now? One core way to answer that question is to think hard about coming environmental pressures and trends.
Mega-regulation on carbon will raise the cost of carbon-intensive value chains. Water shortages could severely restrict growth in key regions or in specific product markets. Rising concerns about chemicals and toxicity will radically shift demand for some products (think about what's happened in just a few years to the baby bottles, toys, and other plastics that include phthalates or the chemical "BPA").
Think through these large trends, ask heretical questions (such as, "What if we used no water?"), and use the green lens to spot long-term trends. This process should start your innovation wheels turning. While we climb out of this downturn — and green strategy can play a critical role in helping companies do that — it's good to start thinking longer term. Believe it or not, it's time to get ready for the next slowdown now.
Successful People Are Drivers, Not Passengers - Become a Driver
When Donald Trump walks into his office, do you think he is a driver or a passenger? You do not even have to know what the terms means to know the answer; he's a driver. He is a successful person, do you think he got there being passive and sitting back, like a passenger, or do you think he got where he is by taking the wheel, and going where he wanted to go?
I use this analogy a lot in my material, drivers and passengers. I use it because it's accurate and it tells the right story and gives the right image. Lets add one more ingredient to the mix before we continue; our agenda. This is what we are driving, or should be driving. I refer to what we want to do each day, what we have planned to do each day as our agenda; this agenda is crucial to our success. Without an agenda set up for each day, we are at the mercy of all that is around us. And all that is around us is not beneficial to us reaching our goals and being successful.
Drivers
The very name denotes action, being in charge, taking the wheel and deciding where you are going and how to get there. These are the very traits of successful people that you want to have. Before you take charge, grab the wheel and zoom off, you need something in place first. Every plane that takes off has to have a flight plan, not only does it make sense, it's also the law. Successful people do not take off without their flight plan; I call it their agenda. That is the term I use to denote what they want to do on any given day and how they are going to do it.
Having your own agenda in place is the first step in becoming a driver. Without an agenda in place, what are you going to do when you start your day? What direction will you go in, what do you want to do when you get there, what will prevent you from going in the wrong direction? These are all questions that you need answers to before you start your day. Here is what drivers do, before they start their day:
* Have a clear idea of what they want to accomplish, before the day starts.
* Have these ideas written down, accessible to them throughout the day.
* Have these ideas Prioritized.
* These daily Priorities are part of a larger plan of action.
* The Priorities are Time Activated into time slots reserved for these specific actions.
* They invest a small amount of time prior to each day, knowing the benefits they will reap will be 10 fold greater than the small initial time already invested.
Finally, Drivers do not leave anything to chance. They know what they want to do, when they want to do it and they go about making these things happen. They accomplish this by driving their agenda. I can tell you from seeing thousands of people driving their agendas, the fact that you take the initiative and start to drive your agenda; this initiative is going to guarantee you about 95% of the time that you will be uncontested. If you are already in the driver's seat, you will not often find that you have to fight for the seat; it is very much a first come first serve situation.
Passengers
Just as the term driver denotes certain images, so does the word passenger; passive, not in control, not deciding where or when to go. It's hard to dictate the pace of things from the back seat. You may not have looked at starting your day out as a driver or a passenger. That makes sense, who would? The people who do are the ones who have been exposed to my material and are now actively looking for ways to better invest their time, be more productive and to reduce substantially their stress levels. You have a better idea of what a driver does to be successful. The passengers do the opposite. They make no attempt to organize themselves, Prioritize their activities, have a master plan laid out and they certainly do not have an agenda to drive.
Now that you have had an opportunity to see what a driver does and what a passenger does, which one would you like to be?
I use this analogy a lot in my material, drivers and passengers. I use it because it's accurate and it tells the right story and gives the right image. Lets add one more ingredient to the mix before we continue; our agenda. This is what we are driving, or should be driving. I refer to what we want to do each day, what we have planned to do each day as our agenda; this agenda is crucial to our success. Without an agenda set up for each day, we are at the mercy of all that is around us. And all that is around us is not beneficial to us reaching our goals and being successful.
Drivers
The very name denotes action, being in charge, taking the wheel and deciding where you are going and how to get there. These are the very traits of successful people that you want to have. Before you take charge, grab the wheel and zoom off, you need something in place first. Every plane that takes off has to have a flight plan, not only does it make sense, it's also the law. Successful people do not take off without their flight plan; I call it their agenda. That is the term I use to denote what they want to do on any given day and how they are going to do it.
Having your own agenda in place is the first step in becoming a driver. Without an agenda in place, what are you going to do when you start your day? What direction will you go in, what do you want to do when you get there, what will prevent you from going in the wrong direction? These are all questions that you need answers to before you start your day. Here is what drivers do, before they start their day:
* Have a clear idea of what they want to accomplish, before the day starts.
* Have these ideas written down, accessible to them throughout the day.
* Have these ideas Prioritized.
* These daily Priorities are part of a larger plan of action.
* The Priorities are Time Activated into time slots reserved for these specific actions.
* They invest a small amount of time prior to each day, knowing the benefits they will reap will be 10 fold greater than the small initial time already invested.
Finally, Drivers do not leave anything to chance. They know what they want to do, when they want to do it and they go about making these things happen. They accomplish this by driving their agenda. I can tell you from seeing thousands of people driving their agendas, the fact that you take the initiative and start to drive your agenda; this initiative is going to guarantee you about 95% of the time that you will be uncontested. If you are already in the driver's seat, you will not often find that you have to fight for the seat; it is very much a first come first serve situation.
Passengers
Just as the term driver denotes certain images, so does the word passenger; passive, not in control, not deciding where or when to go. It's hard to dictate the pace of things from the back seat. You may not have looked at starting your day out as a driver or a passenger. That makes sense, who would? The people who do are the ones who have been exposed to my material and are now actively looking for ways to better invest their time, be more productive and to reduce substantially their stress levels. You have a better idea of what a driver does to be successful. The passengers do the opposite. They make no attempt to organize themselves, Prioritize their activities, have a master plan laid out and they certainly do not have an agenda to drive.
Now that you have had an opportunity to see what a driver does and what a passenger does, which one would you like to be?
Saturday, September 12, 2009
Investment Banking: Life as an Associate
An associate is typically a recently graduated MBA or an analyst who gets promoted after three or four years. You will usually stay an associate for three years or so. An associate still has to do a lot of grunt work and may even have an analyst to call on. Your hours will still be miserable and you haven't really become a human being yet. Like a good analyst, your job is to make your boss look good and to understand what's going on. Your boss may abuse you from time to time and you aren't supposed to complain really. This is a job where you can really start to shine. If you add value to transactions or help get things done in some other meaningful way, you can expect to be paid a reasonable bonus and have a shot a promotion to AVP.
The "City" - Square Mile in London, A Major Global Financial Center Deutsche Bank Place, Sydney Australia
Associate level pay in New York firms runs roughly $90,000 in your first year (including bonus). If you are good and stay awhile, expect to go up to roughly $130,000 to $150,000 before you hop up another level. In London expect a salary of roughly 60,000 to 80,000 Pounds (all-in).
Key Skills
In investment banking / corporate finance / M&A, key associate skills include:
* the ability to do DCF valuations
* the ability to use Excel in your sleep
* the ability to arrange client meetings and get the logistics right
* the ability to deal with horrendous egos
* the ability to find comparable companies
* the ability to network within the firm and befriend key people like librarians, IT gurus, messengers, lawyers, compliance etc.
In debt and equity capital markets positions, key associate skills include:
* the ability to massage league tables
* the ability to price up new deals (e.g. bonds, convertibles, preferreds)
* pretend that you know what's going when clients call in and the boss is not around
* the ability to track past deals and pricing to sense where the market is going
* check and generate weekly newsletters (weeklies)
* the ability to fill in silences in meetings with insightful comments (while making sure your boss controls things)
* coordinate due diligence
* prepare document on debt and equity deals
* make sure analysts get burgers from the right place
* generate pitch books with your eyes closed while talking to clients and screaming at syndicate
In sales and trading positions, key associate skills include:
* the ability to watch your bosses blotter
* the ability to know where prices are
* the ability to work options pricing models
* the ability to bluff a little when needed
* the ability to eat endless fattening food without getting fat
* the ability to golf, play tennis, drink and joke around with clients
* the ability to make clients feel comfortable with you
Success Factors
Key success factors include (i) getting your job done well, (ii) getting many things done in a chaotic environment, (iii) dressing well, (iv) having a beer and a good time every once in awhile, (v) always making your boss look good, (vi) being a total whiz with computers, (vii) being able to spin bad news into ok news and (viii) network within the firm. Other good things to do include figuring out when a job could be done better and going out and doing it. For example, create a database to track the results of an equity tender offer. Initiative is key. Also, getting to know clients is very important since you will be using those relationships later on.
Assessment
As an associate you are in. Your job now is to prove you have what it takes to make in investment banking. You may not always like the environment and culture you are in, but your job is to survive and eventually excel. You are only a few years away from getting your own clients, initiating your own deals and making some good money.
Play your cards right and you'll be happy you did the time. Big time.
Recommended Books and Resources
Vault Career Guide to Investment Banking
Guide covers the basics of financial markets, including walk-throughs of equity and fixed income offerings, and M&A private placements and reorgs, and dissects career paths and job responsibilities at departments such as corporate finance, sales and trading, research, and syndicate.
Finance Spreadsheet Programs
Free from Aswath Damodaran.
Valuation: Measuring and Managing the Value of Companies
by McKinsey and Company
A classic that should be in the cube of every analyst and associate on the Street. Another fabulous valuation book is Damodaran on Valuation: Security Analysis for Investment and Corporate Finance
Applied Mergers and Acquisitions
by Robert F. Bruner and Joseph Perella
Handbook of Fixed Income, Frank Fabozzi (editor).
This is the bible for any job involving fixed income sales, trading, underwriting or derivatives. If you are headed for sales and trading you should know this material.
Job Search Success
Getting a job as an associate isn't so easy and we have put together a number of resources that should be helpful to you as you contemplate entering the market. These include:
* Surfing the Cataclysm: Finding an Investment Banking Job in 2009
* Getting in the Door
* Salaries for Bankers
* Job Listings
* Making a Trip to New York
Another important resource to have is access to specific contacts in the field. To ease this process we have assembled several lists that should be helpful to you. These lists cost $20 each and include:
* Headhunter List - very helpful to have good access to executive recruiters
* Guide to boutique investment banks and recruiting contacts - best place to look in 2009
* Guide to Healthcare Investment Bankers - hot area in 2009
* Guide to investment bankers in restructuring and bankruptcy - another hot recruiting area in 2009
The "City" - Square Mile in London, A Major Global Financial Center Deutsche Bank Place, Sydney Australia
Associate level pay in New York firms runs roughly $90,000 in your first year (including bonus). If you are good and stay awhile, expect to go up to roughly $130,000 to $150,000 before you hop up another level. In London expect a salary of roughly 60,000 to 80,000 Pounds (all-in).
Key Skills
In investment banking / corporate finance / M&A, key associate skills include:
* the ability to do DCF valuations
* the ability to use Excel in your sleep
* the ability to arrange client meetings and get the logistics right
* the ability to deal with horrendous egos
* the ability to find comparable companies
* the ability to network within the firm and befriend key people like librarians, IT gurus, messengers, lawyers, compliance etc.
In debt and equity capital markets positions, key associate skills include:
* the ability to massage league tables
* the ability to price up new deals (e.g. bonds, convertibles, preferreds)
* pretend that you know what's going when clients call in and the boss is not around
* the ability to track past deals and pricing to sense where the market is going
* check and generate weekly newsletters (weeklies)
* the ability to fill in silences in meetings with insightful comments (while making sure your boss controls things)
* coordinate due diligence
* prepare document on debt and equity deals
* make sure analysts get burgers from the right place
* generate pitch books with your eyes closed while talking to clients and screaming at syndicate
In sales and trading positions, key associate skills include:
* the ability to watch your bosses blotter
* the ability to know where prices are
* the ability to work options pricing models
* the ability to bluff a little when needed
* the ability to eat endless fattening food without getting fat
* the ability to golf, play tennis, drink and joke around with clients
* the ability to make clients feel comfortable with you
Success Factors
Key success factors include (i) getting your job done well, (ii) getting many things done in a chaotic environment, (iii) dressing well, (iv) having a beer and a good time every once in awhile, (v) always making your boss look good, (vi) being a total whiz with computers, (vii) being able to spin bad news into ok news and (viii) network within the firm. Other good things to do include figuring out when a job could be done better and going out and doing it. For example, create a database to track the results of an equity tender offer. Initiative is key. Also, getting to know clients is very important since you will be using those relationships later on.
Assessment
As an associate you are in. Your job now is to prove you have what it takes to make in investment banking. You may not always like the environment and culture you are in, but your job is to survive and eventually excel. You are only a few years away from getting your own clients, initiating your own deals and making some good money.
Play your cards right and you'll be happy you did the time. Big time.
Recommended Books and Resources
Vault Career Guide to Investment Banking
Guide covers the basics of financial markets, including walk-throughs of equity and fixed income offerings, and M&A private placements and reorgs, and dissects career paths and job responsibilities at departments such as corporate finance, sales and trading, research, and syndicate.
Finance Spreadsheet Programs
Free from Aswath Damodaran.
Valuation: Measuring and Managing the Value of Companies
by McKinsey and Company
A classic that should be in the cube of every analyst and associate on the Street. Another fabulous valuation book is Damodaran on Valuation: Security Analysis for Investment and Corporate Finance
Applied Mergers and Acquisitions
by Robert F. Bruner and Joseph Perella
Handbook of Fixed Income, Frank Fabozzi (editor).
This is the bible for any job involving fixed income sales, trading, underwriting or derivatives. If you are headed for sales and trading you should know this material.
Job Search Success
Getting a job as an associate isn't so easy and we have put together a number of resources that should be helpful to you as you contemplate entering the market. These include:
* Surfing the Cataclysm: Finding an Investment Banking Job in 2009
* Getting in the Door
* Salaries for Bankers
* Job Listings
* Making a Trip to New York
Another important resource to have is access to specific contacts in the field. To ease this process we have assembled several lists that should be helpful to you. These lists cost $20 each and include:
* Headhunter List - very helpful to have good access to executive recruiters
* Guide to boutique investment banks and recruiting contacts - best place to look in 2009
* Guide to Healthcare Investment Bankers - hot area in 2009
* Guide to investment bankers in restructuring and bankruptcy - another hot recruiting area in 2009
Investment Banking: Life as an Analyst
Analysts are typically recent undergraduates who work long hours and do a fair bit of grunt work. A good analyst helps his or her boss get their job done and done well. Analysts are not normally expected to contribute in meetings but often can. Many analysts return to the business. Others choose to try other opportunities. During recruiting out of an MBA program, former analysts will be at a significant advantage over others without experience.
Key analyst skills include:
The Amazing Wall Street Analyst
* the ability to work with Excel spreadsheets,
* write macros in VBA,
* track and generate weekly newsletters (weeklies),
* keep schedules,
* generate prospectuses,
* get burgers
* put in and retrieve pitch books from the copy center
* and answer client phone calls.
Success Factors
Key success factors include (i) getting your job done well and without friction, (ii) getting things done on time, (iii) asking for help when you need it, (iv) dressing neatly, (v) not complaining, gossiping or whining, (vi) learning to use the library and the web to do research, (vii) become a whiz-kid with Bloomberg, Excel, Word and Powerpoint, (viii) always give your boss credit, (ix) know when to cheer up your boss and (x) know when to stay out of the way.
A good analyst also networks, observes and thinks. You want to be genuine yet make it clear that you like your boss. Excessive posterior kissing is a negative. It's always good to have a little hobby as well like following stocks, playing Liars Poker or following currencies. You can do this when things get quiet in August.
Assessment
Small Sales and Trading Desk Small Trading Desk Set up
It's a tiring life but gives you a good chance to learn the investment banking field and bond with people whom you will work with later. Being an analyst is one of the best ways to break into a very good field. The return on investment from being a good analyst can be over 50 times what they actually pay you.
After two years, most analysts leave to get their MBA or pursue other positions. It all depends on the firm. Some places have a pretty strict policy of getting rid of you. Others are more mellow. It makes sense, after all, to try to keep very good people who can get a job done. If you don't go back and get an MBA you might benefit from going out and getting a CFA.
Recommended Books
Fundamentals of Corporate Finance
By Brealey, Myers and Marcus. An excellent, detailed book on topics in corporate finance. If you want to study what the field is about, this is a good book to start with. Keep this at your desk. An alternative finance reference book to use is Fundamentals of Corporate Finance by Ross Westerfield and Jordan.
The Economist.
A great source for info on what's happening in the world.
Wall Street Journal.
Should read this every day. The Financial Times is also quite informative.
85 Broad Street, NY
HQ of Goldman Sachs Goldman Sachs Headquarters
Vault Career Guide to Investment Banking
Guide covers the basics of financial markets, including walk-throughs of equity and fixed income offerings, and M&A private placements and reorgs, and dissects career paths and job responsibilities at departments such as corporate finance, sales and trading, research, and syndicate.
Valuation: Measuring and Managing the Value of Companies
by McKinsey and Company
A classic that should be in the cube of every analyst and associate on the Street. Another fabulous valuation book is Damodaran on Valuation: Security Analysis for Investment and Corporate Finance
Equity Valuation: Models from Leading Investment Banks
By Jan Viebig
This book brings together expertise from UBS, Morgan Stanley, DWS Investment GmbH and Credit Suisse, providing a unique analysis of leading equity valuation models, from the very individuals who use them. Filled with real world insights, practical examples and theoretical approaches, the book will examine the strengths and weaknesses of some of the leading valuation approaches.
Finance and Investment Handbook
Applied Mergers and Acquisitions
by Robert F. Bruner and Joseph Perella
Wall Street Lingo
Job Search Success
Getting a job as an analyst isn't so easy and we have put together a number of resources that should be helpful to you as you contemplate entering the market. These include:
* Surfing the Cataclysm: Finding an Investment Banking Job in 2009
* Getting in the Door
* Salaries for Bankers
* Facts & Advice About Investment Banking
* Job Market Outlook as of Feb 2009
* Job Listings
* Life as an Analyst
* Making a Trip to New York
Another important resource to have is access to specific contacts in the field. To ease this process we have assembled several lists that should be helpful to you. These lists cost $20 each and include:
* Headhunter List - very helpful to have good access to executive recruiters
* Guide to boutique investment banks and recruiting contacts - best place to look in 2009
* Guide to Healthcare Investment Bankers - hot area in 2009
* Guide to investment bankers in restructuring and bankruptcy - another hot recruiting area in 2009
Key analyst skills include:
The Amazing Wall Street Analyst
* the ability to work with Excel spreadsheets,
* write macros in VBA,
* track and generate weekly newsletters (weeklies),
* keep schedules,
* generate prospectuses,
* get burgers
* put in and retrieve pitch books from the copy center
* and answer client phone calls.
Success Factors
Key success factors include (i) getting your job done well and without friction, (ii) getting things done on time, (iii) asking for help when you need it, (iv) dressing neatly, (v) not complaining, gossiping or whining, (vi) learning to use the library and the web to do research, (vii) become a whiz-kid with Bloomberg, Excel, Word and Powerpoint, (viii) always give your boss credit, (ix) know when to cheer up your boss and (x) know when to stay out of the way.
A good analyst also networks, observes and thinks. You want to be genuine yet make it clear that you like your boss. Excessive posterior kissing is a negative. It's always good to have a little hobby as well like following stocks, playing Liars Poker or following currencies. You can do this when things get quiet in August.
Assessment
Small Sales and Trading Desk Small Trading Desk Set up
It's a tiring life but gives you a good chance to learn the investment banking field and bond with people whom you will work with later. Being an analyst is one of the best ways to break into a very good field. The return on investment from being a good analyst can be over 50 times what they actually pay you.
After two years, most analysts leave to get their MBA or pursue other positions. It all depends on the firm. Some places have a pretty strict policy of getting rid of you. Others are more mellow. It makes sense, after all, to try to keep very good people who can get a job done. If you don't go back and get an MBA you might benefit from going out and getting a CFA.
Recommended Books
Fundamentals of Corporate Finance
By Brealey, Myers and Marcus. An excellent, detailed book on topics in corporate finance. If you want to study what the field is about, this is a good book to start with. Keep this at your desk. An alternative finance reference book to use is Fundamentals of Corporate Finance by Ross Westerfield and Jordan.
The Economist.
A great source for info on what's happening in the world.
Wall Street Journal.
Should read this every day. The Financial Times is also quite informative.
85 Broad Street, NY
HQ of Goldman Sachs Goldman Sachs Headquarters
Vault Career Guide to Investment Banking
Guide covers the basics of financial markets, including walk-throughs of equity and fixed income offerings, and M&A private placements and reorgs, and dissects career paths and job responsibilities at departments such as corporate finance, sales and trading, research, and syndicate.
Valuation: Measuring and Managing the Value of Companies
by McKinsey and Company
A classic that should be in the cube of every analyst and associate on the Street. Another fabulous valuation book is Damodaran on Valuation: Security Analysis for Investment and Corporate Finance
Equity Valuation: Models from Leading Investment Banks
By Jan Viebig
This book brings together expertise from UBS, Morgan Stanley, DWS Investment GmbH and Credit Suisse, providing a unique analysis of leading equity valuation models, from the very individuals who use them. Filled with real world insights, practical examples and theoretical approaches, the book will examine the strengths and weaknesses of some of the leading valuation approaches.
Finance and Investment Handbook
Applied Mergers and Acquisitions
by Robert F. Bruner and Joseph Perella
Wall Street Lingo
Job Search Success
Getting a job as an analyst isn't so easy and we have put together a number of resources that should be helpful to you as you contemplate entering the market. These include:
* Surfing the Cataclysm: Finding an Investment Banking Job in 2009
* Getting in the Door
* Salaries for Bankers
* Facts & Advice About Investment Banking
* Job Market Outlook as of Feb 2009
* Job Listings
* Life as an Analyst
* Making a Trip to New York
Another important resource to have is access to specific contacts in the field. To ease this process we have assembled several lists that should be helpful to you. These lists cost $20 each and include:
* Headhunter List - very helpful to have good access to executive recruiters
* Guide to boutique investment banks and recruiting contacts - best place to look in 2009
* Guide to Healthcare Investment Bankers - hot area in 2009
* Guide to investment bankers in restructuring and bankruptcy - another hot recruiting area in 2009
Wednesday, September 9, 2009
Careers In Finance
Accounting
The accounting industry has been rocked by scandal in recent times, with one major firm, Arthur Andersen, being forced out of the picture. Before Andersen’s collapse, the top tier of the public accounting industry was known as the Big Five. Now, it’s the Big Four: Deloitte Touche Tohmatsu, Ernst & Young, KPMG, and PricewaterhouseCoopers.
Accounting concerns itself with the day-to-day operations of bookkeeping. Accountants balance the books, track expenses and revenue, execute payroll, and pay the bills. They also compile all of the financial data needed to issue a company's financial statements in accordance with government regulations.
Accountants are taking a step away from the ledger sheets and are becoming essential to every successful business team. They're the ones who understand the language of money and a company's complex financial situation. Consequently, accountants are increasingly being called on to offer advice and even make business decisions based on hard facts rather than on speculation or gut instinct.
Finance and accounting jobs require critical & detail-oriented thinking, a knack for using numbers to understand patterns that influence business, ability to think critically about the numbers you're working with.
Asset Management
Asset management is the business of making money with money. Asset managers manage money - other people's money, and gobs of it. Generally, they convert that money into assets - stocks, bonds, derivatives, and other types of investments - and try to make that money make more money as fast as possible. Mutual funds, for instance, hire asset managers; so do corporations with lots of money sitting around, banks, and high-net-worth individuals.
Asset managers have one simple goal: to invest other people's money wisely and profitably. Asset managers use a combination of investment theory, quantitative tools, market experience, research, and plain dumb luck to pick investments for their portfolios, ranging from high-risk stocks to commercial real estate to cash accounts.
The profession requires excellent quantitative and analytical skills, organizational skills - and nerve - to make split-second decisions with millions of dollars riding on the line.
Finance and accounting jobs require critical & detail-oriented thinking, a knack for using numbers to understand patterns that influence business, ability to think critically about the numbers you're working with.
Commercial Banking
Commercial banks are banks that are in classic business of accepting deposits and making loans. As against merchant banking where primary responsibility is to help people find money. Thus they help companies to raise capital through issue of equity or bonds etc
In few countries like US and Japan commercial banking is separate from investment banking by law. Few countries like UK we find that commercial banks carry out investment activities through a subsidiary. Only in countries like Germany where we find Universal Banks like Deutsche that is both a commercial and I-bank. The legislation that kept banks and investment banks separate—Glass Steagall—was struck down by Congress in 1999. So banks are now moving into highly visible spheres of activity, such as investment banking, mutual funds, and brokerage.
Commercial banks hold customers’ money and supply loans, in exchange for check-writing fees and interest collected from loans. The work of commercial bankers is critical—retail consumers get their credit lines extended, their checking accounts upgraded, their mortgages, cars, and home improvement loans approved.
A commercial bank can either be a retail bank or a wholesale bank or both.
Retail Banking
§ Retail banking involves high street branches, dealing with the general public, shops and very small businesses. Retail banking covers current accounts, cheque facilities, saving accounts, and loan facilities like overdraft, personal loans and mortgages.
§ The use of cheque and cheque clearance are of prime importance. Here we are talking about high volume low margin business.
Wholesale Banking
Wholesale banking covers banks lending to larger entities like corporate, governments etc It also includes activities like money markets, foreign exchange and finance for trade
Small businesses are also highly dependent on the goodwill of commercial bankers. Even as dot coms, angel investors, and VCs monopolize the news, most small businesses continue to fund their growth with commercial loans. Such loans allow them to secure new inventory, cover payroll, remodel their stores, buy registers, and manage their overseas accounts receivables.
Commercial bankers perform core financial analysis to assess risk, creditworthiness, and the likelihood a business will succeed. They play a key part in deciding the best business initiatives, expanding existing businesses, developing new markets and clients, and creating new products for e-commerce, the Internet, international markets, and consumers.
In addition, Commercial bankers have to combine business acumen with strong accounting and interpersonal skills. After all, commercial bankers are at the front lines of the banking business. Ideally, they know their clients' lives intimately and can recommend additional products and services. Commercial bankers are a key distribution point and referral source for the rest of a bank's financial services activities.
Many commercial banks are consolidating in order to branch out and provide other services such as mortgage, mutual funds, investment banking, and insurance. As other financial firms expand their services, commercial banks are diversifying to keep up, and often a merger with a peer company is the best way to do this. Since 1995, more than 200 large and small banks have merged. Consolidation usually results in layoffs and fewer job opportunities, but jobs in banks that are more diversified offer more opportunities for career development. And a growing number of non-banks are pioneering new ways of delivering financial services, providing more jobs in the finance industry.
If you like intense project work, with a good deal of financial analysis and customer contact—if you like helping new families and new businesses create brilliant futures—commercial banking might be for you. You'll just have to function in a larger organization, trying to build synergies with other product groups across different customer and product platforms.
Corporate Finance
People who work in corporate finance and accounting are responsible for managing the money-forecasting where it will come from, knowing where it is, and helping managers decide how to spend it in ways that will ensure the greatest return.
This career profile focuses on opportunities in corporate finance and accounting in private industry. Every company has a corporate-finance function. The responsibilities that fall under finance and accounting range from basic activities such as bill paying to very sophisticated ones such as forecasting the value of a potential acquisition. The stakes can amount to hundreds of millions - sometimes billions - of dollars and thousands of jobs. Careful assessment of the financial implications of particular strategic decisions can be critical to a company's success or failure.
Of course, a company's size, complexity, economic sector, and stage of development (start-up or established business) influence what tasks the corporate finance team undertakes every day. All companies need to balance their books. Some large technology companies, for example, hire financial experts to valuate potential acquisitions. Others (such as insurance companies) have hundreds of millions of dollars to invest and need financial wizards to manage it.
Corporate finance includes two key functions: accounting and finance.
Accounting concerns itself with day-to-day operations. Accountants balance the books, track expenses and revenue, execute payroll, and pay the bills. They also compile all the financial data needed to issue a company's financial statements in accordance with government regulations.
Finance pros analyze revenue and expenses to ensure effective use of capital. They also advise businesses about project costs, make capital investments, and structure deals to help companies grow.
In spite of their different roles, finance and accounting are joined at the hip: The higher levels of accounting (budgeting and analysis) blend in with financial functions (analysis and projections). Thus, finance and accounting are often treated as one, with different divisions undertaking particular tasks such as cash management or taxes.
Insurance
In general terms, insurance means protection. Insurance company clients pay fees (premiums) with the understanding that if specific misfortunes befall them—if a fire burns down their house, for instance, or they have an accident and need hospitalization—they can make a claim and the insurance company will pay them an amount agreed upon in the insurance policy.
Careers in insurance are varied. Actuaries, for instance, assess the relative likelihood of various types of accidents by performing a statistical analysis of anything they deem relevant to the subject. They use the resulting information to determine policy prices, as well as to whom they should sell which policy.
Agents fill a sales function, and actually sell the policies. Underwriters determine how much overall risk a buyer will add to the company's business and figure out the premium at which to insure a buyer. Money managers invest the money the insurance company takes in through premiums. Claims adjusters decide what, if anything, the company will pay on claims. Risk managers determine and help implement policies and processes to help clients avoid making claims.
Insurance companies tend to be large in terms of both employees and assets, because they need to take in a lot of premiums from a variety of customers in order to diversify and lower their risk of being put out of business by a small number of large claims.
Insurance companies also manage their risk by paying reinsurance companies to take on some of that risk. Reinsurers essentially insure insurance companies against unexpectedly large claims. By writing policies with a variety of insurance companies, reinsurers effectively take on many times the number of individual risks as primary insurance companies do. This lessens the likelihood that a small number of large claims will result in an unforeseen risk to their bottom line.
If you like sales, have a strong quantitative bent, or like to investigate mysteries, this is a very good place to consider looking for a job. It's also a great field to consider if you're looking for top-notch benefits, reasonable hours, and a sense of belonging to a large organization. There's also a place in the industry for entrepreneurs who want to run an insurance agency or work in other sales positions
Investment Banking
Traditionally, commercial banks and investment banks performed completely distinct functions. When someone needed a loan to buy a car, he visited a commercial bank. When he needed to raise cash to fund an acquisition or build its fiber-optic network, it called on its investment bank. Paychecks and lifestyles reflected this division too, with investment bankers reveling in their large bonuses and glamorous ways while commercial bankers worked nine-to-five and then went home to their families. Today, as the laws requiring the separation of investment and commercial banking are reformed, more and more firms are making sure they have a foot in both camps, thus blurring the lines and the cultures.
Investment banking isn’t one specific service or function. It is an umbrella term for a range of activities: underwriting, selling, and trading securities (stocks and bonds); providing financial advisory services, such as mergers and acquisition advice; and managing assets. Investment banks offer these services to companies, governments, non-profit institutions, and individuals.
The action and players in investment banking are still centered in New York City and a few other money centers around the world, but the list of players is getting smaller as the industry consolidates. Today, leading banks include Merrill Lynch, Goldman Sachs, Morgan Stanley, Citigroup’s Corporate and Investment Bank (whose investment banking arm was until recently known as Salomon Smith Barney), Credit Suisse First Boston, and JPMorgan Chase
Wall Street is filled with high-energy, hardworking young investment bankers who spend hours hunched behind computers, poring over financial statements and churning out spreadsheets by the pound. Others are traders who keep one eye on their Bloomberg screen, a phone over each ear, and a buyer or seller on hold every minute the market’s in session. Traders work hand in hand with the institutional sales group, whose members hop from airport to airport trying to sell big institutions a piece of the new stock offering they have coming down the pipeline. Then there are the analytically minded research analysts, who read, write, live, and breathe whichever industry they follow, 24/7.
To survive in investment banking, much less to do well, you’ll need to like the work itself. And, quite honestly, even if you love the work, an investment banking career can still be a tough road. But, if you like fast-paced, deal-oriented work, are at ease with numbers and analysis, have a tolerance for risk, and don’t mind putting your personal life on hold for the sake of your job, then investment banking may be a great career choice.
Securities Sales and Trading
An investment bank relies on its sales department to sell bonds or shares of stock in companies it underwrites. Investors who want to buy or sell a certain stock or bond will place an order with a broker or sales representative, who writes the ticket for the order. The trader makes the trade.
Securities sales and trading are high-profile, high-pressure roles in the investment banking industry. Unlike other i-banking careers, such as corporate finance, public finance, and M&A, where the emphasis is on the team, securities salespeople and traders are independent, working on commission to bring to market the financial products that others create.
In the United States, the securities business revolves around markets (also known as "exchanges") such as the New York Stock Exchange, the Chicago Board of Trade, and Nasdaq, where debt, futures, options, stocks, and other financial instruments are bought and sold. Salespeople and traders are independent agents working under a simple contract: The firm provides a place to do business in return for a percentage of the business that salespeople and traders generate.
Salespeople are called brokers or dealers. As one of them, you're expected to build a "book" of clients. No matter how long you've been working, and no matter how many clients you have, you're expected to cold call. New brokers make as many as 600 cold calls a day. Most of the work takes place over the telephone: soliciting clients or selling a particular stock or bond issue. You'll use analyst research and every sales trick in the book to push your securities to investors.
Traders make money by trading securities. Although they're the ones who transact trades for the brokers and their clients, traders are primarily responsible for taking a position in a security issue, and buying or selling large amounts of stocks or bonds using an employer's (or their own) capital. When they bet right, they win big; when they bet wrong, they lose big.
Securities sales and trading is a high-pressure career. You're responsible for the financial fortunes of your clients—or yourself, if you're a lone trader. Every day you're making $100,000 (or more) decisions under severe time constraints. The daily fluctuations of stock prices can make you rich one day and break you the next. Brokers eat a lot of antacid.
Securities salespeople and traders work independently, usually with little supervision and very little interaction with management—provided they succeed. If they don't, they're quickly out of a job. To do well, you need a good head for numbers and a hidebound determination to make money. If you're on the sales side, you'll need exceptional customer service skills; if you're a trader, you'll need to be able to handle huge risk—and stomach huge losses. The upside of these careers is the money brokers can make.
The accounting industry has been rocked by scandal in recent times, with one major firm, Arthur Andersen, being forced out of the picture. Before Andersen’s collapse, the top tier of the public accounting industry was known as the Big Five. Now, it’s the Big Four: Deloitte Touche Tohmatsu, Ernst & Young, KPMG, and PricewaterhouseCoopers.
Accounting concerns itself with the day-to-day operations of bookkeeping. Accountants balance the books, track expenses and revenue, execute payroll, and pay the bills. They also compile all of the financial data needed to issue a company's financial statements in accordance with government regulations.
Accountants are taking a step away from the ledger sheets and are becoming essential to every successful business team. They're the ones who understand the language of money and a company's complex financial situation. Consequently, accountants are increasingly being called on to offer advice and even make business decisions based on hard facts rather than on speculation or gut instinct.
Finance and accounting jobs require critical & detail-oriented thinking, a knack for using numbers to understand patterns that influence business, ability to think critically about the numbers you're working with.
Asset Management
Asset management is the business of making money with money. Asset managers manage money - other people's money, and gobs of it. Generally, they convert that money into assets - stocks, bonds, derivatives, and other types of investments - and try to make that money make more money as fast as possible. Mutual funds, for instance, hire asset managers; so do corporations with lots of money sitting around, banks, and high-net-worth individuals.
Asset managers have one simple goal: to invest other people's money wisely and profitably. Asset managers use a combination of investment theory, quantitative tools, market experience, research, and plain dumb luck to pick investments for their portfolios, ranging from high-risk stocks to commercial real estate to cash accounts.
The profession requires excellent quantitative and analytical skills, organizational skills - and nerve - to make split-second decisions with millions of dollars riding on the line.
Finance and accounting jobs require critical & detail-oriented thinking, a knack for using numbers to understand patterns that influence business, ability to think critically about the numbers you're working with.
Commercial Banking
Commercial banks are banks that are in classic business of accepting deposits and making loans. As against merchant banking where primary responsibility is to help people find money. Thus they help companies to raise capital through issue of equity or bonds etc
In few countries like US and Japan commercial banking is separate from investment banking by law. Few countries like UK we find that commercial banks carry out investment activities through a subsidiary. Only in countries like Germany where we find Universal Banks like Deutsche that is both a commercial and I-bank. The legislation that kept banks and investment banks separate—Glass Steagall—was struck down by Congress in 1999. So banks are now moving into highly visible spheres of activity, such as investment banking, mutual funds, and brokerage.
Commercial banks hold customers’ money and supply loans, in exchange for check-writing fees and interest collected from loans. The work of commercial bankers is critical—retail consumers get their credit lines extended, their checking accounts upgraded, their mortgages, cars, and home improvement loans approved.
A commercial bank can either be a retail bank or a wholesale bank or both.
Retail Banking
§ Retail banking involves high street branches, dealing with the general public, shops and very small businesses. Retail banking covers current accounts, cheque facilities, saving accounts, and loan facilities like overdraft, personal loans and mortgages.
§ The use of cheque and cheque clearance are of prime importance. Here we are talking about high volume low margin business.
Wholesale Banking
Wholesale banking covers banks lending to larger entities like corporate, governments etc It also includes activities like money markets, foreign exchange and finance for trade
Small businesses are also highly dependent on the goodwill of commercial bankers. Even as dot coms, angel investors, and VCs monopolize the news, most small businesses continue to fund their growth with commercial loans. Such loans allow them to secure new inventory, cover payroll, remodel their stores, buy registers, and manage their overseas accounts receivables.
Commercial bankers perform core financial analysis to assess risk, creditworthiness, and the likelihood a business will succeed. They play a key part in deciding the best business initiatives, expanding existing businesses, developing new markets and clients, and creating new products for e-commerce, the Internet, international markets, and consumers.
In addition, Commercial bankers have to combine business acumen with strong accounting and interpersonal skills. After all, commercial bankers are at the front lines of the banking business. Ideally, they know their clients' lives intimately and can recommend additional products and services. Commercial bankers are a key distribution point and referral source for the rest of a bank's financial services activities.
Many commercial banks are consolidating in order to branch out and provide other services such as mortgage, mutual funds, investment banking, and insurance. As other financial firms expand their services, commercial banks are diversifying to keep up, and often a merger with a peer company is the best way to do this. Since 1995, more than 200 large and small banks have merged. Consolidation usually results in layoffs and fewer job opportunities, but jobs in banks that are more diversified offer more opportunities for career development. And a growing number of non-banks are pioneering new ways of delivering financial services, providing more jobs in the finance industry.
If you like intense project work, with a good deal of financial analysis and customer contact—if you like helping new families and new businesses create brilliant futures—commercial banking might be for you. You'll just have to function in a larger organization, trying to build synergies with other product groups across different customer and product platforms.
Corporate Finance
People who work in corporate finance and accounting are responsible for managing the money-forecasting where it will come from, knowing where it is, and helping managers decide how to spend it in ways that will ensure the greatest return.
This career profile focuses on opportunities in corporate finance and accounting in private industry. Every company has a corporate-finance function. The responsibilities that fall under finance and accounting range from basic activities such as bill paying to very sophisticated ones such as forecasting the value of a potential acquisition. The stakes can amount to hundreds of millions - sometimes billions - of dollars and thousands of jobs. Careful assessment of the financial implications of particular strategic decisions can be critical to a company's success or failure.
Of course, a company's size, complexity, economic sector, and stage of development (start-up or established business) influence what tasks the corporate finance team undertakes every day. All companies need to balance their books. Some large technology companies, for example, hire financial experts to valuate potential acquisitions. Others (such as insurance companies) have hundreds of millions of dollars to invest and need financial wizards to manage it.
Corporate finance includes two key functions: accounting and finance.
Accounting concerns itself with day-to-day operations. Accountants balance the books, track expenses and revenue, execute payroll, and pay the bills. They also compile all the financial data needed to issue a company's financial statements in accordance with government regulations.
Finance pros analyze revenue and expenses to ensure effective use of capital. They also advise businesses about project costs, make capital investments, and structure deals to help companies grow.
In spite of their different roles, finance and accounting are joined at the hip: The higher levels of accounting (budgeting and analysis) blend in with financial functions (analysis and projections). Thus, finance and accounting are often treated as one, with different divisions undertaking particular tasks such as cash management or taxes.
Insurance
In general terms, insurance means protection. Insurance company clients pay fees (premiums) with the understanding that if specific misfortunes befall them—if a fire burns down their house, for instance, or they have an accident and need hospitalization—they can make a claim and the insurance company will pay them an amount agreed upon in the insurance policy.
Careers in insurance are varied. Actuaries, for instance, assess the relative likelihood of various types of accidents by performing a statistical analysis of anything they deem relevant to the subject. They use the resulting information to determine policy prices, as well as to whom they should sell which policy.
Agents fill a sales function, and actually sell the policies. Underwriters determine how much overall risk a buyer will add to the company's business and figure out the premium at which to insure a buyer. Money managers invest the money the insurance company takes in through premiums. Claims adjusters decide what, if anything, the company will pay on claims. Risk managers determine and help implement policies and processes to help clients avoid making claims.
Insurance companies tend to be large in terms of both employees and assets, because they need to take in a lot of premiums from a variety of customers in order to diversify and lower their risk of being put out of business by a small number of large claims.
Insurance companies also manage their risk by paying reinsurance companies to take on some of that risk. Reinsurers essentially insure insurance companies against unexpectedly large claims. By writing policies with a variety of insurance companies, reinsurers effectively take on many times the number of individual risks as primary insurance companies do. This lessens the likelihood that a small number of large claims will result in an unforeseen risk to their bottom line.
If you like sales, have a strong quantitative bent, or like to investigate mysteries, this is a very good place to consider looking for a job. It's also a great field to consider if you're looking for top-notch benefits, reasonable hours, and a sense of belonging to a large organization. There's also a place in the industry for entrepreneurs who want to run an insurance agency or work in other sales positions
Investment Banking
Traditionally, commercial banks and investment banks performed completely distinct functions. When someone needed a loan to buy a car, he visited a commercial bank. When he needed to raise cash to fund an acquisition or build its fiber-optic network, it called on its investment bank. Paychecks and lifestyles reflected this division too, with investment bankers reveling in their large bonuses and glamorous ways while commercial bankers worked nine-to-five and then went home to their families. Today, as the laws requiring the separation of investment and commercial banking are reformed, more and more firms are making sure they have a foot in both camps, thus blurring the lines and the cultures.
Investment banking isn’t one specific service or function. It is an umbrella term for a range of activities: underwriting, selling, and trading securities (stocks and bonds); providing financial advisory services, such as mergers and acquisition advice; and managing assets. Investment banks offer these services to companies, governments, non-profit institutions, and individuals.
The action and players in investment banking are still centered in New York City and a few other money centers around the world, but the list of players is getting smaller as the industry consolidates. Today, leading banks include Merrill Lynch, Goldman Sachs, Morgan Stanley, Citigroup’s Corporate and Investment Bank (whose investment banking arm was until recently known as Salomon Smith Barney), Credit Suisse First Boston, and JPMorgan Chase
Wall Street is filled with high-energy, hardworking young investment bankers who spend hours hunched behind computers, poring over financial statements and churning out spreadsheets by the pound. Others are traders who keep one eye on their Bloomberg screen, a phone over each ear, and a buyer or seller on hold every minute the market’s in session. Traders work hand in hand with the institutional sales group, whose members hop from airport to airport trying to sell big institutions a piece of the new stock offering they have coming down the pipeline. Then there are the analytically minded research analysts, who read, write, live, and breathe whichever industry they follow, 24/7.
To survive in investment banking, much less to do well, you’ll need to like the work itself. And, quite honestly, even if you love the work, an investment banking career can still be a tough road. But, if you like fast-paced, deal-oriented work, are at ease with numbers and analysis, have a tolerance for risk, and don’t mind putting your personal life on hold for the sake of your job, then investment banking may be a great career choice.
Securities Sales and Trading
An investment bank relies on its sales department to sell bonds or shares of stock in companies it underwrites. Investors who want to buy or sell a certain stock or bond will place an order with a broker or sales representative, who writes the ticket for the order. The trader makes the trade.
Securities sales and trading are high-profile, high-pressure roles in the investment banking industry. Unlike other i-banking careers, such as corporate finance, public finance, and M&A, where the emphasis is on the team, securities salespeople and traders are independent, working on commission to bring to market the financial products that others create.
In the United States, the securities business revolves around markets (also known as "exchanges") such as the New York Stock Exchange, the Chicago Board of Trade, and Nasdaq, where debt, futures, options, stocks, and other financial instruments are bought and sold. Salespeople and traders are independent agents working under a simple contract: The firm provides a place to do business in return for a percentage of the business that salespeople and traders generate.
Salespeople are called brokers or dealers. As one of them, you're expected to build a "book" of clients. No matter how long you've been working, and no matter how many clients you have, you're expected to cold call. New brokers make as many as 600 cold calls a day. Most of the work takes place over the telephone: soliciting clients or selling a particular stock or bond issue. You'll use analyst research and every sales trick in the book to push your securities to investors.
Traders make money by trading securities. Although they're the ones who transact trades for the brokers and their clients, traders are primarily responsible for taking a position in a security issue, and buying or selling large amounts of stocks or bonds using an employer's (or their own) capital. When they bet right, they win big; when they bet wrong, they lose big.
Securities sales and trading is a high-pressure career. You're responsible for the financial fortunes of your clients—or yourself, if you're a lone trader. Every day you're making $100,000 (or more) decisions under severe time constraints. The daily fluctuations of stock prices can make you rich one day and break you the next. Brokers eat a lot of antacid.
Securities salespeople and traders work independently, usually with little supervision and very little interaction with management—provided they succeed. If they don't, they're quickly out of a job. To do well, you need a good head for numbers and a hidebound determination to make money. If you're on the sales side, you'll need exceptional customer service skills; if you're a trader, you'll need to be able to handle huge risk—and stomach huge losses. The upside of these careers is the money brokers can make.
Friday, August 21, 2009
Emerging Marketing Mantra:Fear better than Sex
Hi
To all
Today when i were reading ET there was a post that today companies are using Fear Factor rather than Sex Factor in their Ad campaigns.
It is really true that today customers are inclining more towards their health and safety rather than impressive ads in which they promises to make them attractive to the opposite sex.
Know days every nation is facing Swine Flue problem and people and governments are more inclining towards the health of people and at this time companies who are having different brands related to the health of people are making money and using this time.
Health care companies are using fear factor to promote their products and undoubtedly some companies have increase their profit to 200 percent.
Reason for this consumers are more awaken.
They are more interested in their health as compared to attract opposite sex.
Companies are using this mantra to show fear to consumers and sell their products.
May be companies are forgetting their ethics for money
But they are using right mantra at right time to make profit
thanks
To all
Today when i were reading ET there was a post that today companies are using Fear Factor rather than Sex Factor in their Ad campaigns.
It is really true that today customers are inclining more towards their health and safety rather than impressive ads in which they promises to make them attractive to the opposite sex.
Know days every nation is facing Swine Flue problem and people and governments are more inclining towards the health of people and at this time companies who are having different brands related to the health of people are making money and using this time.
Health care companies are using fear factor to promote their products and undoubtedly some companies have increase their profit to 200 percent.
Reason for this consumers are more awaken.
They are more interested in their health as compared to attract opposite sex.
Companies are using this mantra to show fear to consumers and sell their products.
May be companies are forgetting their ethics for money
But they are using right mantra at right time to make profit
thanks
Thursday, August 20, 2009
Internet Marketing
Hello Friends
In CII two days Annual Marketing Summit on the second day hottest topic for the discussion was increasing the share of Digital Marketing in the Marketing Department Of India
Reasons to promote Digital marketing in India that were given in Summit
1 As number of internet users are increasing at a very high pace.
2 Digital marketing is quite economical as compared to other marketing techniques.
3 Internet Marketing is more fruitful as compared to the Printing and Ads marketing.
4 Customer Response can be tapped easily.
5 Reaching to the target Customers is quite easy as compared in other marketing techniques.
6 Creating value for customers and getting value from customers which is the basic tool for an organization can be implemented in Dig ital Marketing quite easily.
7 Internet is giving marketing a new platform to perform and company offering can be easily understood by customers on net quite easily.
So in my view digitalization and using technology for marketing is a new and innovative tool for marketing in future
Thank uou
In CII two days Annual Marketing Summit on the second day hottest topic for the discussion was increasing the share of Digital Marketing in the Marketing Department Of India
Reasons to promote Digital marketing in India that were given in Summit
1 As number of internet users are increasing at a very high pace.
2 Digital marketing is quite economical as compared to other marketing techniques.
3 Internet Marketing is more fruitful as compared to the Printing and Ads marketing.
4 Customer Response can be tapped easily.
5 Reaching to the target Customers is quite easy as compared in other marketing techniques.
6 Creating value for customers and getting value from customers which is the basic tool for an organization can be implemented in Dig ital Marketing quite easily.
7 Internet is giving marketing a new platform to perform and company offering can be easily understood by customers on net quite easily.
So in my view digitalization and using technology for marketing is a new and innovative tool for marketing in future
Thank uou
Thursday, June 18, 2009
Successful Entrepreneurs Secret
Successful Entrepreneurs Secret
Hi friends
Today everyone wants to start their own enterprise and wants to become successful entrepreneur but few reach to that peak and there are three reasons that a entrepreneur's have in their life which makes them happy and successful are Smarts , Guts and Luck .If a person is having all these things in his/her life than he/she can become good entrepreneur in this world.So lets have discussion on them.
SMARTS
Successful Entrepreneur's possesses good understanding, intuition ,emotional and conceptual intelligence thus they can find the solution of the problem quite easily without using much analysis and books and this is themain difference between a CEO and Founder as Founder knows how he can take his company on top and CEO uses or implements the strategies given in the books to get success.
GUTS
Successful entrepreneurs have so much guts that they always ready to take risks in their business and everyone knows that if their is risk their is success and also entrepreneurs never think of the resources that they not having they always think positive and remains happy with the resources that they are possess.Successful entrepreneurs always have passion to be on top of the world and this intiution makes them successful in their life .
LUCK
To be successful in this globe with hard work they also need luck in their life and if a person have ability to work,is smart,have guts and also have luck then he/she can become successful entrepreneur in their life.
So if a person is Smart , have Guts and also have luck with him then no one can stop him in becoming a successful entrepreneur in this world.
BEST OF LUCK
Hi friends
Today everyone wants to start their own enterprise and wants to become successful entrepreneur but few reach to that peak and there are three reasons that a entrepreneur's have in their life which makes them happy and successful are Smarts , Guts and Luck .If a person is having all these things in his/her life than he/she can become good entrepreneur in this world.So lets have discussion on them.
SMARTS
Successful Entrepreneur's possesses good understanding, intuition ,emotional and conceptual intelligence thus they can find the solution of the problem quite easily without using much analysis and books and this is themain difference between a CEO and Founder as Founder knows how he can take his company on top and CEO uses or implements the strategies given in the books to get success.
GUTS
Successful entrepreneurs have so much guts that they always ready to take risks in their business and everyone knows that if their is risk their is success and also entrepreneurs never think of the resources that they not having they always think positive and remains happy with the resources that they are possess.Successful entrepreneurs always have passion to be on top of the world and this intiution makes them successful in their life .
LUCK
To be successful in this globe with hard work they also need luck in their life and if a person have ability to work,is smart,have guts and also have luck then he/she can become successful entrepreneur in their life.
So if a person is Smart , have Guts and also have luck with him then no one can stop him in becoming a successful entrepreneur in this world.
BEST OF LUCK
Successful Entrepreneurs must avoid this
As in my last post I told you about three important secrets of the successful entrepreneurs are SMART,GUTS and Luck if the person is having these qualities than he can become successful entrepreneur in his life
But if the person start feeling he is the emperor of the world and develops these characterstics in him such as PERSISTENCE and STUBBORNESS,CONTROLLING INTEREST and TEAM LOYALTY than definately it will hamper his life and hinder the success of his company.
PERSISTENCE and STUBBORNESS
It is right that person should be persistent towards his goal and success of his company but when persistence mixes with stubborness than the problem arises .Stubborness is heaven when it is right but hell when it is wrong .When this mixture comes out than possiblty of getting or taking right decision will be hard .
CONTROLLING INTEREST
During the early stages of company growth entreneurial vision is very important to keep eye on every task that is going on but as a company grows, entrepreneurs need to demonstrate not only that they can do the task but also that they can appropriately delegate. Fast growing businesses quickly move beyond the ability of one person to manage without proper delegation and should show his potential at every point in the growing company.
TEAM LOYALTY
Loyalty should be there and is culturally important, but it should not be confused with the performance and future needs of the organization. As a start-up becomes a full-fledged business, an entrepreneurial leader has to be prepared to deal with difficult and personnel situations where business decisions need to be made for the interest of the company and not personal or historical reasons.
So Please all the entrepreneurs avoid this in you
But if the person start feeling he is the emperor of the world and develops these characterstics in him such as PERSISTENCE and STUBBORNESS,CONTROLLING INTEREST and TEAM LOYALTY than definately it will hamper his life and hinder the success of his company.
PERSISTENCE and STUBBORNESS
It is right that person should be persistent towards his goal and success of his company but when persistence mixes with stubborness than the problem arises .Stubborness is heaven when it is right but hell when it is wrong .When this mixture comes out than possiblty of getting or taking right decision will be hard .
CONTROLLING INTEREST
During the early stages of company growth entreneurial vision is very important to keep eye on every task that is going on but as a company grows, entrepreneurs need to demonstrate not only that they can do the task but also that they can appropriately delegate. Fast growing businesses quickly move beyond the ability of one person to manage without proper delegation and should show his potential at every point in the growing company.
TEAM LOYALTY
Loyalty should be there and is culturally important, but it should not be confused with the performance and future needs of the organization. As a start-up becomes a full-fledged business, an entrepreneurial leader has to be prepared to deal with difficult and personnel situations where business decisions need to be made for the interest of the company and not personal or historical reasons.
So Please all the entrepreneurs avoid this in you
Reasons for Putting SME Out Of Business
Hi
At this time I am working with a startup company and I found these problems that my company is phasing .With this blog I want to communicate to all new entrepreneurs that they should avoid these circumstances in their new business.
Focus Entrepreneurs must have clean and clear focus i.e they should know what they want to achieve and where they want to see his/her organization after five years.
Information Entrepreneurs do not emphasize on market research and do not count who all are their competitors, what customers wanted facilities that are not given by the existing companies so they must do market research before entering into market
Joint Venture At the starting if organization signed a joint venture with the stabilized organization than at the starting they can create a name in the market and can grow with full of colors
Marketing and Advertisement At the starting entrepreneurs think advertisement and marketing will not benefit much but it is necessary tool to make impact in business so they should invest in marketing and advertisement to get good return
CRM If a customer comes in the new store and employees do not behave properly with them properly and do not give discounts or offers to them may be next time they will go to their old store so it should be avoided.
Training If the employees are not having full knowledge about what they are selling than it is hard to get to the customer as they will not be able to fulfill customer’s demands so they should be given proper training to them.
Finance Entrepreneurs do not have full details and maintain their Balance sheets, Sales tax records, License, Insurance than in the future they would face problem so they should maintain all ledgers and their Finance Reports.
Profit rather than Sustaining Entrepreneurs in the starting emphasize mainly on small profit rather than creating value for customer and retain the customer permanent member it should be avoided so create value for customers
So new entrepreneurs comes in business with broad mind rather than narrow mind
THINK BIG GET BIG
At this time I am working with a startup company and I found these problems that my company is phasing .With this blog I want to communicate to all new entrepreneurs that they should avoid these circumstances in their new business.
Focus Entrepreneurs must have clean and clear focus i.e they should know what they want to achieve and where they want to see his/her organization after five years.
Information Entrepreneurs do not emphasize on market research and do not count who all are their competitors, what customers wanted facilities that are not given by the existing companies so they must do market research before entering into market
Joint Venture At the starting if organization signed a joint venture with the stabilized organization than at the starting they can create a name in the market and can grow with full of colors
Marketing and Advertisement At the starting entrepreneurs think advertisement and marketing will not benefit much but it is necessary tool to make impact in business so they should invest in marketing and advertisement to get good return
CRM If a customer comes in the new store and employees do not behave properly with them properly and do not give discounts or offers to them may be next time they will go to their old store so it should be avoided.
Training If the employees are not having full knowledge about what they are selling than it is hard to get to the customer as they will not be able to fulfill customer’s demands so they should be given proper training to them.
Finance Entrepreneurs do not have full details and maintain their Balance sheets, Sales tax records, License, Insurance than in the future they would face problem so they should maintain all ledgers and their Finance Reports.
Profit rather than Sustaining Entrepreneurs in the starting emphasize mainly on small profit rather than creating value for customer and retain the customer permanent member it should be avoided so create value for customers
So new entrepreneurs comes in business with broad mind rather than narrow mind
THINK BIG GET BIG
Friday, June 5, 2009
Cost Saving in a Tech Way
In the current scenario it is becoming hard for the small players to retain in market so they are adopting different methods to retain in market and not surprisingly they are focusing on spending Information technology not on technology but on cost saving technology. In this scenario business process need to be innovative and efficient enough and adapt and scale to market requirements. It also needs to integrate with the partners, suppliers, retailers and consumers and to achieve all this they have to use information technology to achieve the business objectives.
Benefits
Enables them to innovate something
Respond to the market as per the requirement.
Helps in taking quick and right decision
SME’s have become a key focus area for the IT service providers in this recession time who want to keep their growth so they are finding that SME sector is having some scope that can help them to grow.
The vibrant growth in SME sector also made a significant contribution in GDP of India.
And it is the reason that IT service providers are launching their new ideas and software’s in the market for SME’s and expecting 22% growth in IT sector will be through SME sector only. It will also help the small enterprises to compete with the foreign enterprises and meet their standards.
Open Source Software
Open source software implies that the source code is free but some of the rights are associated with some software company but these Open Source Software are easily available for a small fee.
Benefits
It gives the organization full right to code the software according to their use
It also helps in saving large amount of cost.
Enterprise Resource Planning
ERP is integrated software that manages and coordinates resources and information at a single point from share data stores. Either it would be Corporate finance, manufacturing Plant anyone ERP plays a big role in their maintenance and growth.
Benefits
Speed: When ERP is implemented in an organization every thing is maintained so quickly and easily.
Reduction in risks
Help the managers to taking decisions.
High Return on investment (ROI).
Software as a Service
It is a particular type of software deployment in which vendor provides the software on a superscriptions basis in which organization can use some of the features of the software only .This helps the organization in cost saving.
Benefits
In this implementation time is short so it helps the organization to get benefits quickly.
It also offers the organization to quickly migrate to standard application.
Service providers make huge investment in data backups and recovery process so the risk of data is least.
Application Based Software Delivery
Application based software delivery is like SAAS only but with some new and additional features. It is preinstalled and pretuned combination of hardware and software models that plug into network quite easily.
Benefits
Secure solutions that makes sure that organization data is secure and preserved.
Reduction in cost and thus saves money.
In the end we can say that success of most of the Small Scale and Medium Scale industries depend upon them how efficiently they are using Information Technology in their business and how much they are saving money and making profit after adopting the technology
Benefits
Enables them to innovate something
Respond to the market as per the requirement.
Helps in taking quick and right decision
SME’s have become a key focus area for the IT service providers in this recession time who want to keep their growth so they are finding that SME sector is having some scope that can help them to grow.
The vibrant growth in SME sector also made a significant contribution in GDP of India.
And it is the reason that IT service providers are launching their new ideas and software’s in the market for SME’s and expecting 22% growth in IT sector will be through SME sector only. It will also help the small enterprises to compete with the foreign enterprises and meet their standards.
Open Source Software
Open source software implies that the source code is free but some of the rights are associated with some software company but these Open Source Software are easily available for a small fee.
Benefits
It gives the organization full right to code the software according to their use
It also helps in saving large amount of cost.
Enterprise Resource Planning
ERP is integrated software that manages and coordinates resources and information at a single point from share data stores. Either it would be Corporate finance, manufacturing Plant anyone ERP plays a big role in their maintenance and growth.
Benefits
Speed: When ERP is implemented in an organization every thing is maintained so quickly and easily.
Reduction in risks
Help the managers to taking decisions.
High Return on investment (ROI).
Software as a Service
It is a particular type of software deployment in which vendor provides the software on a superscriptions basis in which organization can use some of the features of the software only .This helps the organization in cost saving.
Benefits
In this implementation time is short so it helps the organization to get benefits quickly.
It also offers the organization to quickly migrate to standard application.
Service providers make huge investment in data backups and recovery process so the risk of data is least.
Application Based Software Delivery
Application based software delivery is like SAAS only but with some new and additional features. It is preinstalled and pretuned combination of hardware and software models that plug into network quite easily.
Benefits
Secure solutions that makes sure that organization data is secure and preserved.
Reduction in cost and thus saves money.
In the end we can say that success of most of the Small Scale and Medium Scale industries depend upon them how efficiently they are using Information Technology in their business and how much they are saving money and making profit after adopting the technology
Friday, May 15, 2009
Retaining Clients in Recession
In Recession it is becoming hard for the organizations to create clients even it is becoming more harder for the organizations to retain their clients. Today in recession period clients used to do lot of cost cutting and they prefer to get services and products on least prices and sometime happens many local organizations give them what they want on their prices and this move really impact the brand names.
I am having some ideas that can help organizations easier to retain their clients in this recession.
Deadline Getting the work done before the given deadline it will improve organization reputation in eyes of customers and it will definitely add points in organization favor and also it will show your efficiency and client focus.
Ask Concerned Questions Clients appreciate when their service provider shows concerned about the product and its result .It shows that you are helping him and acting as a thought partner
Know when to defer Deference is important but too much of it positions you as hired help. Inspire confidence by acting collegial and proving yourself to be a competent expert, not a lackey. This is time when you have to show "How much you have it in you"
Feedback There is nothing in this world which is perfect everything needs improvement so give feedback to you client about his product and also help him how it can be improved and try to give constructive criticism
Trust Today everyone wants that their account must be credited when they delever their product to the client but sometimes it happens that client is not able to pay so for this organization must trust on their clients that they will credit when organization account when they will get. This trust will add points in your favor
May be my ideas will help the organization to add maximum number of points in their favor and it will help them in future when their client will be thinking for alternates
I am having some ideas that can help organizations easier to retain their clients in this recession.
Deadline Getting the work done before the given deadline it will improve organization reputation in eyes of customers and it will definitely add points in organization favor and also it will show your efficiency and client focus.
Ask Concerned Questions Clients appreciate when their service provider shows concerned about the product and its result .It shows that you are helping him and acting as a thought partner
Know when to defer Deference is important but too much of it positions you as hired help. Inspire confidence by acting collegial and proving yourself to be a competent expert, not a lackey. This is time when you have to show "How much you have it in you"
Feedback There is nothing in this world which is perfect everything needs improvement so give feedback to you client about his product and also help him how it can be improved and try to give constructive criticism
Trust Today everyone wants that their account must be credited when they delever their product to the client but sometimes it happens that client is not able to pay so for this organization must trust on their clients that they will credit when organization account when they will get. This trust will add points in your favor
May be my ideas will help the organization to add maximum number of points in their favor and it will help them in future when their client will be thinking for alternates
Monday, May 11, 2009
Systematic Risk
By June it is expected that Obama Administration may propose legislation and call US Federal Reserve to play a central role in regulating Systematic Risk .As US banks stress tests are over and now administration is focusing on tighten the rules and regulations on the banks and financial institutions who were mainly responsible for the global recession in which number of banks becomes bankrupt that’s why Obama Administration propose a legal authority who will have a check over the banks moves and their strategies to avoid Systematic Risk to prevent crisis like this that is still ravaging the economies worldwide.
Systematic Risk refers to the problem in the financial system that is large enough to damage overall economy. As last year if the US government gave bail out packages to insurer American International Group because its failure like Lehman Brothers and Bank of America was seen as a Systematic Risk.
Obama administration also wants a agreement among officials that they will setup a government regulator to monitor and manage the Systematic Risk. Even Treasury Secretary Geithner believes that US needs a single regulator who will be responsible for regulating important firms and keep control on their critical payment and settlement systems.
Obama administration wants that this bill should become law within this year and the mistakes which resulted global meltdowns in future could be avoided and also president Barrack Obama would lead the effort on regulatory restructuring also.
It is expected that this move by the Obama administration could avoid Systematic risks in future or it can alarm the governments before coming slowdowns.
Hope this strategy will reduce risk for the economies of the world
Systematic Risk refers to the problem in the financial system that is large enough to damage overall economy. As last year if the US government gave bail out packages to insurer American International Group because its failure like Lehman Brothers and Bank of America was seen as a Systematic Risk.
Obama administration also wants a agreement among officials that they will setup a government regulator to monitor and manage the Systematic Risk. Even Treasury Secretary Geithner believes that US needs a single regulator who will be responsible for regulating important firms and keep control on their critical payment and settlement systems.
Obama administration wants that this bill should become law within this year and the mistakes which resulted global meltdowns in future could be avoided and also president Barrack Obama would lead the effort on regulatory restructuring also.
It is expected that this move by the Obama administration could avoid Systematic risks in future or it can alarm the governments before coming slowdowns.
Hope this strategy will reduce risk for the economies of the world
Thursday, April 30, 2009
Core Sectors train back on track
Core Sectors such as cement, electricity, coal industries are leading the infrastructure sector in the month of March the growth of industry increases from 1.3 percent to 2.9 percent.
In this economic turn moil real state and infrastructure are worstly hitted sector even prices of real state and property had fallen upto 50 percent and even high profile industries had suffered badly from this recession for eg ArcelorMittal world’s largest steel maker had suffered a loss of 1.1 billion dollars impacted by the decline in demand of Steel.
Now market analyst are viewing that market is becoming strong and coming with beautiful colors and making heaven for the customers and people. This is a good sign for future investment of brokers on core sectors
Still steel industry are facing loses but in near future they will definately grow and their train will also come back on track very soon
Hope For the best
In this economic turn moil real state and infrastructure are worstly hitted sector even prices of real state and property had fallen upto 50 percent and even high profile industries had suffered badly from this recession for eg ArcelorMittal world’s largest steel maker had suffered a loss of 1.1 billion dollars impacted by the decline in demand of Steel.
Now market analyst are viewing that market is becoming strong and coming with beautiful colors and making heaven for the customers and people. This is a good sign for future investment of brokers on core sectors
Still steel industry are facing loses but in near future they will definately grow and their train will also come back on track very soon
Hope For the best
VAS is adding value to Telecom Sector
VAS is Value Added Services these are the services that are provided by the telecom operators to its customers for their benefits, entertainment (such as games, ringtones, songs), cricket info, sports info, astrology, TV serials, and many others services
These value added services are benefiting heavily to these telecom operators
These Value Added Services are earning nearly 10% percent of telecom operators revenue for eg RCOM earns more than 550 crores this year from VAS services,idea earns 8% of its revenue this is the reason they are promoting VAS services and using innovative ideas to bring new services in the market that benefits them in earning high revenue.
For eg what strategies they are using to make money first they are providing numbers to the telecallers of companies for the of their product promotion and make money from them and charge customers for restricting these calls.
No investment and heavy profit business.
I am giving you example which shows that operators are now emphasizing mainly on their VAS services
VODAFONE in their advertisement there are cartoons performing different acts and in acts they are promoting their value added services rather than their network and the real services for which they are in the field .So from this you can expect how much telecom operators are earning from VAS services
Recently TRAI has announced some rules and regulations against these telecom operators to contain them exploiting their customers
These value added services are benefiting heavily to these telecom operators
These Value Added Services are earning nearly 10% percent of telecom operators revenue for eg RCOM earns more than 550 crores this year from VAS services,idea earns 8% of its revenue this is the reason they are promoting VAS services and using innovative ideas to bring new services in the market that benefits them in earning high revenue.
For eg what strategies they are using to make money first they are providing numbers to the telecallers of companies for the of their product promotion and make money from them and charge customers for restricting these calls.
No investment and heavy profit business.
I am giving you example which shows that operators are now emphasizing mainly on their VAS services
VODAFONE in their advertisement there are cartoons performing different acts and in acts they are promoting their value added services rather than their network and the real services for which they are in the field .So from this you can expect how much telecom operators are earning from VAS services
Recently TRAI has announced some rules and regulations against these telecom operators to contain them exploiting their customers
Will SWAYN Call BEAR
When the smile is coming on the faces of the people after seeing the economies and stocks are improving globally than at this time SWAYN come from where none knows and started fetching smile from faces.
Just two days before stocks were increasing at good rates and after the alert of SWAYN sensex’s have reported a great decrease in companies share’s value and also it starts broking believe’s of people and shares value which were showing good positive results.
This time sensex were increasing with great solidity and people were investing their money after doing analysis and with great carefulness not like before that’s why every market analyst were saying its BULL not BEAR in aggression phase
But SWAYN alert would call BEAR again globally.
Sectors that will benefit and Loose after SWAYN alert are
Benefits
Medical Industry
Manufactures of Medical tools
Hospitals
Certification Sector
Loosers
Aviation and Transport
Food and Beverages
Food Chains Restaurants
Lets call BULL and beat this SWAYN in this fight
Just two days before stocks were increasing at good rates and after the alert of SWAYN sensex’s have reported a great decrease in companies share’s value and also it starts broking believe’s of people and shares value which were showing good positive results.
This time sensex were increasing with great solidity and people were investing their money after doing analysis and with great carefulness not like before that’s why every market analyst were saying its BULL not BEAR in aggression phase
But SWAYN alert would call BEAR again globally.
Sectors that will benefit and Loose after SWAYN alert are
Benefits
Medical Industry
Manufactures of Medical tools
Hospitals
Certification Sector
Loosers
Aviation and Transport
Food and Beverages
Food Chains Restaurants
Lets call BULL and beat this SWAYN in this fight
Monday, April 27, 2009
New Strategy to Revive Auto Industry
Auto industry is one of the worstly hit industry in this global economic turnmoil.Globally auto makers are bearing heavy losses from last three quarters and these looses make them think alternatives to remain exist in the market such as cost cutting ,entering into small segment cars and many others. .
For example Honda City manufacturer was able to make profit of 80-90 thousand on each Honda City now it slices down to 2700.
Big automakers are now using new strategy to cut prices on their vehicles manufacturing that they will buy auto parts for their small cars from the local manufacturers and after using them vehicles will be exported to other countries
By this firms will be able to keep prices competitive and will make profit which help in growing the auto industry.
European Car Major VW invested 3800 crore to establish their own manufacturing firm in India and they will source 70 -80% of their auto parts from local manufactures by this they will be able to keep overall cost low and the prices will remain modest.
Skoda is launching Fabia and betting big on local manufacturers for small car to keep cost low
Ford India who is launching their small car in 2010 and expect localization level of nearly 85 percent
As these Big names are now depending on the local manufactures definitely this strategy will bring some revive or energy in Auto industry from local manufacturers to Big names of this world
For example Honda City manufacturer was able to make profit of 80-90 thousand on each Honda City now it slices down to 2700.
Big automakers are now using new strategy to cut prices on their vehicles manufacturing that they will buy auto parts for their small cars from the local manufacturers and after using them vehicles will be exported to other countries
By this firms will be able to keep prices competitive and will make profit which help in growing the auto industry.
European Car Major VW invested 3800 crore to establish their own manufacturing firm in India and they will source 70 -80% of their auto parts from local manufactures by this they will be able to keep overall cost low and the prices will remain modest.
Skoda is launching Fabia and betting big on local manufacturers for small car to keep cost low
Ford India who is launching their small car in 2010 and expect localization level of nearly 85 percent
As these Big names are now depending on the local manufactures definitely this strategy will bring some revive or energy in Auto industry from local manufacturers to Big names of this world
Tuesday, April 21, 2009
Cricket Will begin Reverse Outsourcing
With the Introduction of ICL and IPL in Indian cricket in 20-20 format begin the reverse outsourcing .As today we all know our GDP increases because of outsourcing and foreign investment in INDIA.Companies wants to invest in INDIA and give the services to their customers.It increases employment and level of living in INDIA
Will it beneficial for India to outsource players of other countries in future
Benefits
Reputation will increase in the World
Entertainment to crazy cricket lovers of India
Will give platform to new players.
Will increase revenue for the government
Will show the path for others to invest outside the country.
Losses
Money will go outside the country in heavy amount
Not using the Talent inside the country calling from outside.
Many people are changing their profession
Taken as a money making game rather than Heart game
Hurting the emotions of the people for money
So In my view we should do whatever we want to do but in end it should benefit country
Will it beneficial for India to outsource players of other countries in future
Benefits
Reputation will increase in the World
Entertainment to crazy cricket lovers of India
Will give platform to new players.
Will increase revenue for the government
Will show the path for others to invest outside the country.
Losses
Money will go outside the country in heavy amount
Not using the Talent inside the country calling from outside.
Many people are changing their profession
Taken as a money making game rather than Heart game
Hurting the emotions of the people for money
So In my view we should do whatever we want to do but in end it should benefit country
Oracle to buy Sun
Today April 20, 2009 will be remembered as a golden day in history of IT-- Sun Microsystems (NASDAQ: JAVA) and Oracle Corporation (NASDAQ: ORCL) announced today they have entered into a definitive agreement under which Oracle will acquire Sun common stock for $9.50 per share in cash. The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun's cash and debt.
What a day today is
Two big giants of IT World become one and soon these companies will takeover the whole IT market and become emperor of IT world.
Benefits to Oracle
Sun will contribute over $ 1.5 billion in first year and over $2 billion in second year .
Oracle can do innovation in Java according to its database handling.
Oracle can add new features and facilities in Solaris
Oracle can emperor in IT world from database to operating system.
Benefits to Sun
Sun can develop and integrate the oracle database in its softwares according to the situation or demand.
Innovation can come because they are having everything in their hand to develop software;
Better utilisation of Brains will be there .
Benefits to End User
They do not have to spend on both software and database.
Helpful for configuration management people
Quickness and easiness will be there in Softwares.
In my this deal will definately benefit in future.
What a day today is
Two big giants of IT World become one and soon these companies will takeover the whole IT market and become emperor of IT world.
Benefits to Oracle
Sun will contribute over $ 1.5 billion in first year and over $2 billion in second year .
Oracle can do innovation in Java according to its database handling.
Oracle can add new features and facilities in Solaris
Oracle can emperor in IT world from database to operating system.
Benefits to Sun
Sun can develop and integrate the oracle database in its softwares according to the situation or demand.
Innovation can come because they are having everything in their hand to develop software;
Better utilisation of Brains will be there .
Benefits to End User
They do not have to spend on both software and database.
Helpful for configuration management people
Quickness and easiness will be there in Softwares.
In my this deal will definately benefit in future.
Friday, March 27, 2009
When there is Risk there is Success
Minor innovations make up 85% to 90% of companies’ development portfolios, on average, but they rarely generate the growth companies seek. At a time when companies should be taking bigger—but smart—innovation risks, they are moving in other directions and the ability of organisations to take big risk as compared to 1990 and the reason for this decline is organisations tendecy to play safe so they take very little steps towards innovation and the result of this is they are not growing as they ought to be.
As I have studied there are two types of Risks Small I and Big I
Small I
It is the lower level of risk when organisations take low risk as they want to play safe game in Small I .The resultant of this Small risk is that it don't give competitionces among competitiors and it also contribute less to profitabilty.
Big I
It is higher level of risk it is new to the company or new to the world—that push the organisation into diffrent markets or innovative technologies and can generate the profits needed to close the gap between revenue forecasts and growth goals.
Two tools are present which help the organisations in assessing the results of the risk that they want to take and also helps them in predicting the future of the Risk.
RISK MATRIX
R-W-W (“real, win, worth it”)
Risk Matrix
It will graphically reveal risk exposure across an entire innovation portfolio. The risk matrix employs a unique scoring system and calibration of risk to help estimate the probability of success or failure for each project based on how big a stretch it is for the organisation.
R-W-W (“real, win, worth it”)
It can be used to evaluate individual projects. Organisation should use new and real strategies to take risk then after that it helps organisations in evaluating the win factor in the risk and in the end organisation evalute that it is worth to take risk and how it will be helpful in future.
So if any organisation wants to be successsful in future they must take risk but after strong evaluation only.
So are you ready to take BIG I .
As I have studied there are two types of Risks Small I and Big I
Small I
It is the lower level of risk when organisations take low risk as they want to play safe game in Small I .The resultant of this Small risk is that it don't give competitionces among competitiors and it also contribute less to profitabilty.
Big I
It is higher level of risk it is new to the company or new to the world—that push the organisation into diffrent markets or innovative technologies and can generate the profits needed to close the gap between revenue forecasts and growth goals.
Two tools are present which help the organisations in assessing the results of the risk that they want to take and also helps them in predicting the future of the Risk.
RISK MATRIX
R-W-W (“real, win, worth it”)
Risk Matrix
It will graphically reveal risk exposure across an entire innovation portfolio. The risk matrix employs a unique scoring system and calibration of risk to help estimate the probability of success or failure for each project based on how big a stretch it is for the organisation.
R-W-W (“real, win, worth it”)
It can be used to evaluate individual projects. Organisation should use new and real strategies to take risk then after that it helps organisations in evaluating the win factor in the risk and in the end organisation evalute that it is worth to take risk and how it will be helpful in future.
So if any organisation wants to be successsful in future they must take risk but after strong evaluation only.
So are you ready to take BIG I .
Successful Entrepreneurs Secret
Hi friends
Today everyone wants to start their own enterprise and wants to become successful entrepreneur but few reach to that peak and there are three reasons that a entrepreneur's have in their life which makes them happy and successful are Smarts , Guts and Luck .If a person is having all these things in his/her life than he/she can become good entrepreneur in this world.So lets have discussion on them.
SMARTS
Successful Entrepreneur's possesses good understanding, intuition ,emotional and conceptual intelligence thus they can find the solution of the problem quite easily without using much analysis and books and this is themain difference between a CEO and Founder as Founder knows how he can take his company on top and CEO uses or implements the strategies given in the books to get success.
GUTS
Successful entrepreneurs have so much guts that they always ready to take risks in their business and everyone knows that if their is risk their is success and also entrepreneurs never think of the resources that they not having they always think positive and remains happy with the resources that they are possess.Successful entrepreneurs always have passion to be on top of the world and this intiution makes them successful in their life .
LUCK
To be successful in this globe with hard work they also need luck in their life and if a person have ability to work,is smart,have guts and also have luck then he/she can become successful entrepreneur in their life.
So if a person is Smart , have Guts and also have luck with him then no one can stop him in becoming a successful entrepreneur in this world.
BEST OF LUCK
Today everyone wants to start their own enterprise and wants to become successful entrepreneur but few reach to that peak and there are three reasons that a entrepreneur's have in their life which makes them happy and successful are Smarts , Guts and Luck .If a person is having all these things in his/her life than he/she can become good entrepreneur in this world.So lets have discussion on them.
SMARTS
Successful Entrepreneur's possesses good understanding, intuition ,emotional and conceptual intelligence thus they can find the solution of the problem quite easily without using much analysis and books and this is themain difference between a CEO and Founder as Founder knows how he can take his company on top and CEO uses or implements the strategies given in the books to get success.
GUTS
Successful entrepreneurs have so much guts that they always ready to take risks in their business and everyone knows that if their is risk their is success and also entrepreneurs never think of the resources that they not having they always think positive and remains happy with the resources that they are possess.Successful entrepreneurs always have passion to be on top of the world and this intiution makes them successful in their life .
LUCK
To be successful in this globe with hard work they also need luck in their life and if a person have ability to work,is smart,have guts and also have luck then he/she can become successful entrepreneur in their life.
So if a person is Smart , have Guts and also have luck with him then no one can stop him in becoming a successful entrepreneur in this world.
BEST OF LUCK
Tuesday, March 24, 2009
Marketing Performance Measurement
Hi Friends
From last few days i am working with an advertising firm which is promoting food chain restaurant .So today I want to share my views with you all.
As we all know that there are different ways through which companies used to do marketing of their product or their Brand Name and they used to spend a huge amount of capital for marketing of their product.
There are different ways for doing marketing such as
* By the help of advertisements in newspapers,magazines etc
* By the help of Mass Media.
* By the help of Radio's ,Dramas etc.
* By the help of interaction with customers and telling them about their product.
This is all about the marketing strategies that organizations usually use to market their products but they also keep one thing in regulation that how their marketing strategy performing or they have to do some ammendmants .
So organizations use marketing performance management tool to see the utilization of their resources
Organizations use three steps to check their performance are
Data
Data is the basic tool that is used in performance management as when we are having data then only managers can convert data into information which can be used for analysis and metrics which are the next steps of managers.
Analytic
By thoroughly analyzing the data, organizations can gather actionable business insights to improve the marketing effectiveness and marketing efficiency. For example, organizations can use the analytic to drive the marketing return on investment, and make faster and better business decisions which are the basic needs and role of managers.
Metrics
Metrics is the tool which is used to show the analysed data in the form of graphs,tables,diagrams which show analysed data some specific metrics include marketing's impact on share of preference, rate of customer acquisition, average order value, rate of new product and service adoptions, growth in customer buying frequency, volume and share of business, net advocacy and loyalty, rate of growth compared to competition and the market, margin, and customer engagement.
Marketing Performancce management is used to measure the monitoring of operational efficiency and performance and it also help marketers to measure efficently resources of the organization are used and how much efficent in making customer as compared to other which would be cheaper than this
So at this time of recession we should maintain our Performance mangement tools updated and on sharp edge because at this time if you loose something other will definately grab it .
From last few days i am working with an advertising firm which is promoting food chain restaurant .So today I want to share my views with you all.
As we all know that there are different ways through which companies used to do marketing of their product or their Brand Name and they used to spend a huge amount of capital for marketing of their product.
There are different ways for doing marketing such as
* By the help of advertisements in newspapers,magazines etc
* By the help of Mass Media.
* By the help of Radio's ,Dramas etc.
* By the help of interaction with customers and telling them about their product.
This is all about the marketing strategies that organizations usually use to market their products but they also keep one thing in regulation that how their marketing strategy performing or they have to do some ammendmants .
So organizations use marketing performance management tool to see the utilization of their resources
Organizations use three steps to check their performance are
Data
Data is the basic tool that is used in performance management as when we are having data then only managers can convert data into information which can be used for analysis and metrics which are the next steps of managers.
Analytic
By thoroughly analyzing the data, organizations can gather actionable business insights to improve the marketing effectiveness and marketing efficiency. For example, organizations can use the analytic to drive the marketing return on investment, and make faster and better business decisions which are the basic needs and role of managers.
Metrics
Metrics is the tool which is used to show the analysed data in the form of graphs,tables,diagrams which show analysed data some specific metrics include marketing's impact on share of preference, rate of customer acquisition, average order value, rate of new product and service adoptions, growth in customer buying frequency, volume and share of business, net advocacy and loyalty, rate of growth compared to competition and the market, margin, and customer engagement.
Marketing Performancce management is used to measure the monitoring of operational efficiency and performance and it also help marketers to measure efficently resources of the organization are used and how much efficent in making customer as compared to other which would be cheaper than this
So at this time of recession we should maintain our Performance mangement tools updated and on sharp edge because at this time if you loose something other will definately grab it .
Thursday, March 19, 2009
Think Of Economic Future in Recession
Today in every part of the world lot of chaos is prevailing that what will happen tomorrow ?
May be tomorrow my manager will give me Pink Slip,my bank will become bank krupt in which put my savings,how much share market will fall and it will break which record of highest slowdown and may be my country will become beggar in front of other countries.
Today everyone is having this feeling and this slow down is becoming worse day by day because of our negative attitude that is circulating in our minds as we stopped thinking positive that is why till today we did not get the right path to overcome this recession.
This recession is showing devastation in every field as we have stopped thinking or using our brains and we totally depending only on think tanks of the world for the solution .No we have to start thinking and work as a team globally to beat this small ghost.
Some ideas that can help or we can do->
Start a new company is the most fruitfull and innovative idea as I told you before at this time of recession because at this time you will get best talent in market , help from the govt in taxes and other facilties , low invertory cost, cheap labour and also help from the financial institutions.
Start finding a new job as many people are taking decision to start their new business and they want best talent to promte their business and if you are having talent, knowledge and experience you can make wonders with them and also in these new start ups you will definately get experience how to work in startups at the time of recession.
Start investing in the organizations whom you trust that they will handle this recession and will come out of this as early as possible and dont think of falling of share market .Today share market is at 9000 as it was in 1997 it started booming from there only with some new innovations wait it will roar again like a hungry tiger and will give you great returns for your patience.
If you are out of your job don t think that your life ends no its a dawn in your new life think in this sense " You are back with a bang now you can do whatever you wanted to do either go for higher studies ,full fill your desires as you had to leave because of your job so do it now".
All of us have to start thinking positive.
So be +ve .
May be tomorrow my manager will give me Pink Slip,my bank will become bank krupt in which put my savings,how much share market will fall and it will break which record of highest slowdown and may be my country will become beggar in front of other countries.
Today everyone is having this feeling and this slow down is becoming worse day by day because of our negative attitude that is circulating in our minds as we stopped thinking positive that is why till today we did not get the right path to overcome this recession.
This recession is showing devastation in every field as we have stopped thinking or using our brains and we totally depending only on think tanks of the world for the solution .No we have to start thinking and work as a team globally to beat this small ghost.
Some ideas that can help or we can do->
Start a new company is the most fruitfull and innovative idea as I told you before at this time of recession because at this time you will get best talent in market , help from the govt in taxes and other facilties , low invertory cost, cheap labour and also help from the financial institutions.
Start finding a new job as many people are taking decision to start their new business and they want best talent to promte their business and if you are having talent, knowledge and experience you can make wonders with them and also in these new start ups you will definately get experience how to work in startups at the time of recession.
Start investing in the organizations whom you trust that they will handle this recession and will come out of this as early as possible and dont think of falling of share market .Today share market is at 9000 as it was in 1997 it started booming from there only with some new innovations wait it will roar again like a hungry tiger and will give you great returns for your patience.
If you are out of your job don t think that your life ends no its a dawn in your new life think in this sense " You are back with a bang now you can do whatever you wanted to do either go for higher studies ,full fill your desires as you had to leave because of your job so do it now".
All of us have to start thinking positive.
So be +ve .
Sunday, March 15, 2009
Is it a right time to start a business
When Global Recession is hitting every part of the world- organizations, banks , financial institutions are falling like pack of cards , millions of people lost their jobs, countries going bankrupt ,trade industry is trumbling down and countries GDP is becoming negative.
At this time if you say someone that you want to start your enterprise everyone will say are you mad or some people will say you are living in which world .Maximum number of people will criticise your decision to start your enterprise but in reality you are taking a right decision .You are investing your finance or money in your enterprise rather than becoming shareholder of other company when the share market is falling without any stoppage.
Reasons why it will be beneficial to start a business in this recession->
*At this time everything is cheaper from building space to commercial equipments to labour and government will also help in establishing your firm as they want to encourage other people to invest or finance and your enterprise will provide employment to number of people it will somewhat reduce their pressure of unemployed people.
Even for your enterprise you can hire better qualified at less income because millions of people lost their jobs even qualified people so they can work in less wages as it is opportunity for them to work as compared to sit at home ideally and it will benefit you in getting experienced and well qualified person at less wage .
From a cost perspective, everything is on the table for most companies. Even if your prices are higher, if you can come in with greater value, you have a good chance at winning new business. You also have the advantage of being the new kid on the block when it comes to pitching your products and services. Many companies are desperate to find new partnerships with new companies that have a different, better or more innovative way of delivering those products and services.
Family and friends do not want to invest more in real marketand shares it means they may be willing to finance a portion of your new venture, or the expansion of an enterprise that has proven itself over time. The main benefit is that they know you and have a relationship with you and if you have a solid business plan that delivers real numbers, your chances of raising the capital you need increase exponentially
At this time suppliers will give good amount of credit as credit market is virtually tuned down
and as the raw materials with suppliers are pilling up and it is becoming their headache so they can give the raw material on credit and it is a win win situation for you because with less investment you are owing to start business and with less investment you are setting up your organization.
The media loves aberrations, and if you are optimistic by expanding or getting into business now, you would be in that category. That means you can generate some great PR by demonstrating your "alternative" view of the market.Definately it will helpfull as it is your free advertisment without any investment in marketing .You are getting marketing naturally as you are going against the tide everyone will cover your move.
At this time of recession when you develop Balance Score card of your enterprise it will show wonders as the investment is less and returns are good .If you think from the managerial economic prospective you are taking decision at right time when the prices of everything is low and expecting a great return and will be helpful in future.
This is simply being aware of good opportunities others have buggered up, and finding deals where you could get an entire business simply by taking over a lease (along with all the equipment). Many business owners want out at any cost, meaning you can negotiate great win-win deals that allow the current owners an escape while giving you an opportunity to turn around what could be, if run right, a very viable business.
Sometimes, the best business decision is the one you are forced into, and the incentive (as well as need) for income is often enough to push those previously "on the fence" to strike out on their own. There's nothing wrong with being in this position; it simply means there is greater urgency to do something that will start to generate income as quickly as possible.
So investing in starting your own business at this time will be great rather than relying on other organization and if you want to take less risk.
You must follow the Risk management.
Go for Franchise as it is safe business in starting.
Invest in Educational Institutions.
So Best Of Luck for new Business
At this time if you say someone that you want to start your enterprise everyone will say are you mad or some people will say you are living in which world .Maximum number of people will criticise your decision to start your enterprise but in reality you are taking a right decision .You are investing your finance or money in your enterprise rather than becoming shareholder of other company when the share market is falling without any stoppage.
Reasons why it will be beneficial to start a business in this recession->
*At this time everything is cheaper from building space to commercial equipments to labour and government will also help in establishing your firm as they want to encourage other people to invest or finance and your enterprise will provide employment to number of people it will somewhat reduce their pressure of unemployed people.
Even for your enterprise you can hire better qualified at less income because millions of people lost their jobs even qualified people so they can work in less wages as it is opportunity for them to work as compared to sit at home ideally and it will benefit you in getting experienced and well qualified person at less wage .
From a cost perspective, everything is on the table for most companies. Even if your prices are higher, if you can come in with greater value, you have a good chance at winning new business. You also have the advantage of being the new kid on the block when it comes to pitching your products and services. Many companies are desperate to find new partnerships with new companies that have a different, better or more innovative way of delivering those products and services.
Family and friends do not want to invest more in real marketand shares it means they may be willing to finance a portion of your new venture, or the expansion of an enterprise that has proven itself over time. The main benefit is that they know you and have a relationship with you and if you have a solid business plan that delivers real numbers, your chances of raising the capital you need increase exponentially
At this time suppliers will give good amount of credit as credit market is virtually tuned down
and as the raw materials with suppliers are pilling up and it is becoming their headache so they can give the raw material on credit and it is a win win situation for you because with less investment you are owing to start business and with less investment you are setting up your organization.
The media loves aberrations, and if you are optimistic by expanding or getting into business now, you would be in that category. That means you can generate some great PR by demonstrating your "alternative" view of the market.Definately it will helpfull as it is your free advertisment without any investment in marketing .You are getting marketing naturally as you are going against the tide everyone will cover your move.
At this time of recession when you develop Balance Score card of your enterprise it will show wonders as the investment is less and returns are good .If you think from the managerial economic prospective you are taking decision at right time when the prices of everything is low and expecting a great return and will be helpful in future.
This is simply being aware of good opportunities others have buggered up, and finding deals where you could get an entire business simply by taking over a lease (along with all the equipment). Many business owners want out at any cost, meaning you can negotiate great win-win deals that allow the current owners an escape while giving you an opportunity to turn around what could be, if run right, a very viable business.
Sometimes, the best business decision is the one you are forced into, and the incentive (as well as need) for income is often enough to push those previously "on the fence" to strike out on their own. There's nothing wrong with being in this position; it simply means there is greater urgency to do something that will start to generate income as quickly as possible.
So investing in starting your own business at this time will be great rather than relying on other organization and if you want to take less risk.
You must follow the Risk management.
Go for Franchise as it is safe business in starting.
Invest in Educational Institutions.
So Best Of Luck for new Business
Friday, March 13, 2009
Will be a right time to invest in Franchise
Till 2008 maximum foreign investment was coming from franchise that people of world used to take and outsourcing. It provided opportunity for the foreign investors and companies to invest and rule in the market but because of recession maximum number of companies have stopped their trade with other countries and foreign investors are withdrawing their money from there places where they had invested to make profit.
Now the question arises in front of us that still investment in franchise will be profitable or loss deal.
I am putting some of my views here
Lifecycle of an franchise
Franchise is an exiting opportunity for the people who wants to start small business or who want to come in Business world as it is workable business its plans and strategy have been working somewhere and it is well settled so the risk factor is also quite less which is the right strategy and thinking at this time of recession.
Information and Research
At this time business investor has carefully deliberated on pros and cons of being franchisee as it is good decision to rely on the defined system rather than new one .As new system and strategy must have something creative or different way has to be there to survive in he market of this time.
Expansion
As if the person gets a taste of success in the franchisee business the profit the person made from first franchisee they can invest that profit for multi unit franchisee and can expand their system without much investment and following the real system of business to invest your profit for expansion but if the franchise fails than still franchisee will not be in big loss as compared if person starts a new business and it crashes than whole investment will be lost
Emerging Franchisor
They are having new franchising concepts which have proven ,viable business model wilth well defined structure of the transferability of idea to the enterpreneur working with these emerging franchisor. It will be benefical as they are having new concept and we can make good margin in profit only if their strategy works and it is quite risky from investor point of view
Emerged Franchisor
They offer a produst or service that is perfectly tested and tried ,refined and sold over a period of time and these established franchisor represents the least risk type of franchisee opppurtunity but on the dowturn everyone know their startegy and the opputunity for franchisee may be less as market is saturated
Whatever type of franchise person invest on he/she must gather the full information about the franchise to be taken but it is a right time to invest because in other markets investment is going down regularly and it is a much informed decision ,avoiding costly mistakes ,folllowing best practise and right at this time of recession
Best of Luck Investors
Now the question arises in front of us that still investment in franchise will be profitable or loss deal.
I am putting some of my views here
Lifecycle of an franchise
Franchise is an exiting opportunity for the people who wants to start small business or who want to come in Business world as it is workable business its plans and strategy have been working somewhere and it is well settled so the risk factor is also quite less which is the right strategy and thinking at this time of recession.
Information and Research
At this time business investor has carefully deliberated on pros and cons of being franchisee as it is good decision to rely on the defined system rather than new one .As new system and strategy must have something creative or different way has to be there to survive in he market of this time.
Expansion
As if the person gets a taste of success in the franchisee business the profit the person made from first franchisee they can invest that profit for multi unit franchisee and can expand their system without much investment and following the real system of business to invest your profit for expansion but if the franchise fails than still franchisee will not be in big loss as compared if person starts a new business and it crashes than whole investment will be lost
Emerging Franchisor
They are having new franchising concepts which have proven ,viable business model wilth well defined structure of the transferability of idea to the enterpreneur working with these emerging franchisor. It will be benefical as they are having new concept and we can make good margin in profit only if their strategy works and it is quite risky from investor point of view
Emerged Franchisor
They offer a produst or service that is perfectly tested and tried ,refined and sold over a period of time and these established franchisor represents the least risk type of franchisee opppurtunity but on the dowturn everyone know their startegy and the opputunity for franchisee may be less as market is saturated
Whatever type of franchise person invest on he/she must gather the full information about the franchise to be taken but it is a right time to invest because in other markets investment is going down regularly and it is a much informed decision ,avoiding costly mistakes ,folllowing best practise and right at this time of recession
Best of Luck Investors
Thursday, March 12, 2009
Nano - Will it serve as a straw for drowning auto Industry
Today when every country is scared of their economy will they able to survive in this global recession .When every industry is facing downturn count from real state to IT industry to manufacturing industries in every part of the world there is lot of chaos How they can survive?
At this time of global recession when Auto industry is worstly hitted every automaker is in loss from General Motors to Kinetic than at this will launching of NANO in Indian Market by Mr Ratan Tata chairman of TATA MOTORS will provide some relief to the auto industry.
But we can see when maximum auto makers is in loss only one auto maker is in profit MARUTI they are making wonders, they are making profit even they are increasing their production as well as their manpower because their small segment cars are selling at the same speed as before even an increse of 4 % is seen in their sales as they are selling their products at the same price and even increase their availability.
With succes of MARUTi everyone is expecting that NANO will survive in the Market because of some reasons it is better than Maruti 800
-> NANO is Cheaper than Maruti 800 .
-> NANO looks better and having great design than Maruti 800.
-> NANO is 8 percent smaller — bumper to bumper than Maruti 800.
-> NANO has 21 percent larger seating capacity than Maruti 800.
-> NANO is more fuel efficent than Maruti 800.
With these specialties everyone is expecting that NANO will leave its competitiors behind such as MARUTI 800 ,SPARK ,i10,Zen Astilo.It will blast in small segment cars.
For a realistic comparison we should look atChina , there is a model from Cherry for 5200 $ which has dual air bags and features available in mid segment cars in India
When at this time of recession everyone wants a gthing in which they have to invest less and they will get good return from it and NANO is the car in the auto industry that can bring relieve people who wants to invest in the market for their personal transpotation as it is providing the thing they want with great returns
NANO as it nicknamed "People's Car" will definately fullfill the RATAN TATA dream to migrate the Middle class person from 2 wheller to 4 wheeler and definately he will achieve what he expected and we should give fullmarks and regards to TATA family for bringing such a car at this time.
Next month NANO will be on the road and we indians expects it should make wonders and help our auto industry to come out of this global recession and launching and success of NANO will provide opportunities to other auto makers to launch their cheapest and best auto product in the market to survive.
Best of Luck to TATA and NANO
At this time of global recession when Auto industry is worstly hitted every automaker is in loss from General Motors to Kinetic than at this will launching of NANO in Indian Market by Mr Ratan Tata chairman of TATA MOTORS will provide some relief to the auto industry.
But we can see when maximum auto makers is in loss only one auto maker is in profit MARUTI they are making wonders, they are making profit even they are increasing their production as well as their manpower because their small segment cars are selling at the same speed as before even an increse of 4 % is seen in their sales as they are selling their products at the same price and even increase their availability.
With succes of MARUTi everyone is expecting that NANO will survive in the Market because of some reasons it is better than Maruti 800
-> NANO is Cheaper than Maruti 800 .
-> NANO looks better and having great design than Maruti 800.
-> NANO is 8 percent smaller — bumper to bumper than Maruti 800.
-> NANO has 21 percent larger seating capacity than Maruti 800.
-> NANO is more fuel efficent than Maruti 800.
With these specialties everyone is expecting that NANO will leave its competitiors behind such as MARUTI 800 ,SPARK ,i10,Zen Astilo.It will blast in small segment cars.
For a realistic comparison we should look at
When at this time of recession everyone wants a gthing in which they have to invest less and they will get good return from it and NANO is the car in the auto industry that can bring relieve people who wants to invest in the market for their personal transpotation as it is providing the thing they want with great returns
NANO as it nicknamed "People's Car" will definately fullfill the RATAN TATA dream to migrate the Middle class person from 2 wheller to 4 wheeler and definately he will achieve what he expected and we should give fullmarks and regards to TATA family for bringing such a car at this time.
Next month NANO will be on the road and we indians expects it should make wonders and help our auto industry to come out of this global recession and launching and success of NANO will provide opportunities to other auto makers to launch their cheapest and best auto product in the market to survive.
Best of Luck to TATA and NANO
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