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.

Lead with a Coherent Strategy

Coaching Tip

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. As a result, they forgo the right to win in any market. . Way to play: They make a deliberate choice about how to add value in the market – e.g., as a value player, an experience provider, an aggregator, etc. .

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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). If inventory levels are predictive of sales and earnings surprises, could one invest based on inventory turns and beat the returns one gets in the market? This post is part of the HBR Forum, The Future of Retail.

Status Quophiles and Quophobes

Mills Scofield

I : Wow, cool, and that’s going to let us help so many more customers and markets than we can now! 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".

How Likely Is Your Industry to Be Disrupted? This 2×2 Matrix Will Tell You

Harvard Business

For the former, we examined the presence and market penetration of disruptor companies; we also considered incumbents’ financial performance. Multinational beer companies have responded by investing in or acquiring large craft brewers such as Lagunitas, Craft Brew Alliance, and Goose Island to gain an immediate foothold in the market. Amazon’s acquisition of Whole Foods is forcing many incumbents in the grocery segment to rethink their go-to-market strategies.

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

Harvard Business

Questions like this involving issues like politics, human rights, or equality often present themselves sooner or later for any business operating in global markets. Over the course of the last few decades, multinationals have entered and left “frontier markets” like Venezuela, Cuba, Iran, Vietnam, Myanmar, and others. ” The company was and remains present in troubled markets like Cuba, Myanmar, Syria, and Venezuela. Steve Bronstein/Getty Images.

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business

Among the firms we identified as focused on the long term, average revenue and earnings growth were 47% and 36% higher, respectively, by 2014, and market capitalization grew faster as well. The data for this index was drawn from 615 nonfinance companies that had reported continuous results from 2001 to 2015 and whose market capitalization in that period had exceeded $5 billion in at least one year. (We public market capitalization over this period.

Resolution 2011: Make Your Strategy Coherent

Harvard Business Review

Companies that demonstrate strategic coherence — think Wal-Mart and Coca-Cola — earn a market premium in terms of higher earnings and greater shareholder value. Start from the opposite direction: Find an attractive market that values what you do best! 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.

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. It was the first time a vice chair would be based in an emerging market. CEOs face countless decisions. The best executives understand which ones they need to focus on and which ones they can delegate.

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.

GDP 12

Say “No” to Innovation-in-General

Harvard Business Review

It’s the continuous technological innovations that will exploit your fixed asset base. It’s the reverse innovations to help you penetrate new markets and return lessons from different geographies. 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.