6 Smart Investment Decisions To Make As An Entrepreneur

Strategy Driven

1.Investing in fixed assets. Investopedia defines an asset as an economically valuable resource owned, controlled, or acquired with the expectation that it will appreciate later. A fixed asset is an asset acquired to liquidate at a later period.

Company Asset Management

Lead Change Blog

Computers, tools of the trade, vehicles, and buildings are the best examples of fixed assets. In a nutshell, a fixed asset is anything that a company buys intending to use for more than one year. The challenge that most companies encounter is in deciding what to do when it is time to get rid of assets. Reasons a Company Might Need to Get Rid of Assets. There are times when assets might lose their original form and cannot be repaired.

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Making Time For Time

Lead Change Blog

Time is a non-renewable resource; a fixed asset. I grew up in a home full of reminders of the brevity of time. My father, a collector and restorer of antique timepieces, filled the walls with clocks of every shape and size. As a child, I quickly learned the meaning of tempus fugit. As a leader, I embrace the awareness of its reality in every moment. If you’re diligent, you can earn more money—but time, once it’s spent—is gone. Each of us is allotted the exact same amount every day.

5 Facts Everyone Should Know About Home Loans Before Applying

Strategy Driven

When a mortgage underwriter is assessing the sort of funding they’ll be able to make available as part of a home loan, if you have considerable assets saved, you might be tempted to think that this will count in your favor. However, most modern underwriters consider assets negligible in terms of assessing your ability to pay back your loan. For this reason, regular income is significantly more important than fixed assets or cash in the bank.

Status Quophiles and Quophobes

Mills Scofield

SQ : Nice idea, but we have to recognize the sunk costs of our existing fixed assets. Ever know anyone who will explicitly say he/she doesn't think innovation is important? So listen carefully for the magic word - "but". Some of you know how much I love to challenge the status quo so here's my theory: Status Quophiles see the glass as half empty and want to make sure it doesn't become totally empty.

Lead with a Coherent Strategy

Coaching Tip

Bringing on more fixed assets, instead of building market-leading capabilities. By Guest Authors from Booz & Company : Partner, Paul Leinwand and Managing Director, Cesare Mainardi . Too many business leaders are preoccupied with the next answer to growth and find themselves stretched thin – trying to play in too many disparate markets and pursuing multiple strategies and directions that undermine rather than reinforce each other.

Unlocking the Full Potential of Your Business Software

Strategy Driven

Finding Problem Areas to Fix. Now that you understand the effect of software and how it can optimise your business, let’s take a look at ways that you can actually find problematic areas to fix. Fixing the Issue With Software. If you find that they’re having troubles calculating numbers and filling out spreadsheets because they’re doing it manually, then it’s possible that a piece of cloud accounting software could fix the issue.

When a Country is Facing Political and Human Rights Issues, Should Businesses Leave or Stay?

Harvard Business

For a services firm, De Maeseneire said, the calculation is different than for a manufacturer: services firms have fewer fixed assets to look after, and their clients often are fellow multinationals. Conversely, companies with long term assets, like factories or buildings, may have an even stronger incentive to stay in troubled markets, but equally should think twice before entering a market. Steve Bronstein/Getty Images.

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business

” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. This has long seemed intuitively true to us.

Recommended Resources – An Interview with Paul Leinwand and Cesare Mainardi, authors of The Essential Advantage

Strategy Driven

PL and CM: Most companies look outside to adjacent markets for growth and invest in assets to exploit those opportunities. And, invariably, you invest in assets. These choices historically conferred advantage – first-mover, scale – but asset-based scale advantages have diminished in recent years, thanks to technology, cheap information, and outsourcing. As the intrinsic value of assets diminishes, the competitive value of capabilities will only grow.

Resolution 2011: Make Your Strategy Coherent

Harvard Business Review

Focus on capabilities rather than just fixed assets: Fixed assets, including brands, are more difficult to leverage across diverse businesses and tend to expire, become obsolete, or give way to related services. There's no doubt about it; numbers don't lie. Companies that demonstrate strategic coherence — think Wal-Mart and Coca-Cola — earn a market premium in terms of higher earnings and greater shareholder value.

The Three Decisions You Need to Own

Harvard Business Review

At many companies the total cash investment in acquisitions, R&D, and fixed assets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. CEOs face countless decisions. The best executives understand which ones they need to focus on and which ones they can delegate.

In Beijing and Washington, Business as Usual

Harvard Business Review

Will Zhang Gaoli, as overseer of the economy, continue China's fixation on fixed-asset investment? Last week the United States held a hotly contested election that demonstrated the challenges and strengths of the American political system. Both major parties talked of all that was wrong in American politics: a future of deficits, the monetization of political life, and the prospect of endless political gridlock.

Retailers Beware: Markets Punish Stores with Too Much Inventory

Harvard Business Review

It is derived by adjusting for changes in gross margin, capital intensity (fixed assets as a proportion of total assets), and positively for sales surprise (the degree to which actual sales exceeds or falls short of forecast). This post is part of the HBR Forum, The Future of Retail. In all my years of studying and interacting with retailers, I have yet to meet one who doesn't worry about the optimal level of aggregate inventory that their firm should carry.

China’s Growth: A Brief History

Harvard Business Review

Some find evidence of a clear improvement of total factor productivity since market-oriented reforms began in 1979, estimating that the increase in TFP contributed about 40% to GDP growth, roughly the same as that contributed by fixed asset investment. Multiple studies have found that China’s economic growth is largely labor-intensive with high levels of fixed capital investment.

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What It Takes to Be a Great Employer

Harvard Business Review

Even in the absence of a fixed definition, more than 100 studies have now demonstrated a strong relationship between employee engagement and organizational performance. How crazy is it that companies are willing to invest in preventative maintenance on fixed assets such as their machinery, but typically won't make a comparable investment to enhance and sustain the health and well-being of their employees?

Say “No” to Innovation-in-General

Harvard Business Review

It’s the continuous technological innovations that will exploit your fixed asset base. I had just arrived at a conference on entrepreneurship and the only panel I wanted to see was starting. I looked down at my watch and realized that I was already 5 minutes late so I dropped my bags and ran to the next building.

The Three Reforms China Must Enact: Land, Social Services, and Taxes

Harvard Business Review

Failure to present a groundbreaking new vision risks leaving in place old economic drivers, especially the over-reliance on fixed-asset investment, that have created serious challenges such as China’s “ghost cities” and high levels of local government debt. China’s global economic power continues to grow, yet the decision-making dynamics of its top leadership remain a mystery. This complicates the ability of outsiders to understand the purpose for and implications of policy changes.

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