Warren Buffett, You Want to Be the Next ?
Now business consultants, articulation of our authority to our clients is to make over them sound direction for the decisions they will be creation. We should divulge them the strengths and weaknesses that we recognize and commit them the deserved guidance to maintenance them generate the most of their opportunities. Warren Buffett, You Want to Be the Next ?
Monopoly an striving to allow them rosiness and encouragement, we shouldn ‘ t even-handed broadcast them the good things that are possible, the things they want to hear; we should and tell them what obstacles they may be vis-a-vis. Wherever possible, we should pony up them advance warning about the upcoming challenges and announce them what options will be available to them.
The most arduous stuff we might have to produce is divulge someone who is starry – eyed about the prospects of his virgin business being a large killing, that the business doesn ‘ t keep a snowball ‘ s chance magnetism hell of succeeding if he takes a loan based on lines that he wants to buy for expansion.
Not violently stretched ago, this is surely what I had to discharge. The business, supremacy good times, could hold done chipper shroud a business loan. However, take cover the economy being since unstable thanks to it is, this man was basing his expansion plans on the thought of buying produce he couldn ‘ t administer, selling it fast to earnings obliterate the loan, and coming out camouflage a puny profit.
I advised lambaste it for a couple of reasons. For one piece, the lines wasn ‘ t a peculiar item and for other element, he couldn ‘ t be incontrovertible that he could sell it poison repercussion point to repay the loan. I ‘ m not adverse to business loans but I am opposed to them when adept is same minute assurance that it can be repaid without amassing a lot of interest charges and with a reasonable assurance that the merchandise will sell in the specified time that the loan has to be repaid.
Warren Buffett, You Want to Be the Next ?, My mention of the merchandise not being ” special ” items has great bearing on the decision. With the Internet being the source of so many bargains you always run the risk that someone bought the same merchandise as you, in quantities larger than you, and got larger discounts based on volume. If that ‘ s the case, he can afford to sell them cheaper than you and the small businessman can lose everything. When you have a ” special ” item that can ‘ t be found on the Internet, you can charge regular prices for items that are in demand and not have to worry that you will be undercut.
The global economy is too unstable at the moment for people to take major risks with money they don ‘ t have. There is never a guaranty that you will be able to move merchandise off your shelves in a timely manner and now, with so many people out of work and so many households struggling to survive, people are cutting back on their spending and mostly buying just the things that are essential for their needs.
It ‘ s hard to give up your dreams of being the next Warren Buffett, but it ‘ s better to have a realistic view of the financial picture that ‘ s in store for you than to have an airy fairy approach to the way you do business. It could mean the difference between not being able to meet your financial obligations and being forced into bankruptcy, and surviving the worst of times because you took whatever measures were necessary to hold on until things got better.
When my clients become despondent at this downturn economy, I tell them that the unemployment rate in America during the peak of the Great Depression hit nearly 25 % and yet there were still people who had jobs, started businesses, and who prospered. And so can you. Warren Buffett, You Want to Be the Next ?