There are several reasons this is an exceptionally good time to be a small business owner.The first: The fundamental opportunity to grow a business asset value over time, as opposed to receiving a paycheck over time that cannot be sold. Just as Warren Buffett views a stock purchase as the acquisition of an “equity bond” with an expanding coupon, a business owner can view the business as a compounding engine in which earnings can be reinvested at potential high rates of return resulting in expanded value over time. Proof in the Pudding Typically, three approaches can be used to fix a price tag on a business and prove the expansion of value: the asset-based approach, the comparable market analysis approach and the earnings approach. Think of the asset-based approach this way: you decide to sell me your lawn care business which is comprised of two assets: a lawn mower and a weed eater. After 10 years of neglect, lack of oil changes, blade sharpening and being tossed in the back of a truck, the equipment is on its last legs. The clientele of the business should not be included in the valuation we decide since most are angry about their half-trimmed yards. The equipment brand new costs $1,500. We settle on $150. The comparable market analysis approach echoes the method used to sell residential real estate in which the selling prices of comparable homes are adjusted up and down based on superior and inferior qualities; except in our case, we use businesses instead of homes. This approach is useful in valuing non-productive assets such as the 10 acres of land sitting under a cash-flowing donut stand but it lacks the ability to value productive assets. The earnings approach accommodates for this and uses the accounting net profit with discretionary items and non-cash expenses added back-in. This figure is then divided by a capitalization rate in order to reach a business value. The capitalization rate is equivalent to a required return on investment and can be thought of as the level of perceived risk in the business, ranging anywhere from 20 percent to 40 percent for small business. For example, if the donut stand averages $50,000 a year in earnings and we use a capitalization rate of 20 preecent, we arrive at a value of $250,000. ($50,000/20 percent). This approach is most similar to how Warren Buffett values the future share price of a business, projecting forward a future value and rate of return based on earnings per share and growth. Increasing Return During a Downturn Another good reason to be a small business owner today is found in the opportunity to increase returns as a result of cheaper inputs. Warren Buffett identifies quality businesses with a durable competitive advantage, a strong earnings track record, a high return on equity and the ability to reinvest in the compounding engine. He does not merely look for the discarded cigar butts with one or two puffs left in them. He identifies great companies with a durable competitive advantage and then patiently waits for them to go on sale. His argument is that if he can buy a company today for $31 a share and it will be worth $80.40 a share at the end of 10 years, then his annual rate of return will be 10 percent. If he can buy the same business for $26 a share, then his return will shoot up to 11.95 percent. In a downturn, great businesses go on sale. Similarly, the owner of a small business with a durable competitive advantage can purchase cheaper inputs such as labor and materials during a draw-back and increase returns over the long haul. Typically, bigger fish with solid financials can outlast competition during recessions and price wars. Thus, the survivors of tough economic times, those with durable competitive advantages, can emerge on the other side to find a clearer field, bereft of distracting competition and chock-full of new market-gap opportunity. Good businesses will shine while mediocre businesses will wane. Help Is On the Way Additionally, with a federal focus on job creation, new programs are available to assist small business owners, programs such as the Hiring Incentives to Restore Employment Act and the Small Business Jobs and Wages Tax Cut. It’s a great time to be a small business owner because of fundamental, underlying asset building principles, the opportunity to increase returns in a draw-back and the reduced competition. The owner of a small business can increase asset value over time just as Warren Buffett seeks out investments with a clear, underlying ability to expand in value over time. Adam Brownlee is author of "Building a Small Business Warren Buffet Would Love."Thursday, May 31, 2012
Think Like Warren Buffett to Build Your Business: Opinion - CNBC
There are several reasons this is an exceptionally good time to be a small business owner.The first: The fundamental opportunity to grow a business asset value over time, as opposed to receiving a paycheck over time that cannot be sold. Just as Warren Buffett views a stock purchase as the acquisition of an “equity bond” with an expanding coupon, a business owner can view the business as a compounding engine in which earnings can be reinvested at potential high rates of return resulting in expanded value over time. Proof in the Pudding Typically, three approaches can be used to fix a price tag on a business and prove the expansion of value: the asset-based approach, the comparable market analysis approach and the earnings approach. Think of the asset-based approach this way: you decide to sell me your lawn care business which is comprised of two assets: a lawn mower and a weed eater. After 10 years of neglect, lack of oil changes, blade sharpening and being tossed in the back of a truck, the equipment is on its last legs. The clientele of the business should not be included in the valuation we decide since most are angry about their half-trimmed yards. The equipment brand new costs $1,500. We settle on $150. The comparable market analysis approach echoes the method used to sell residential real estate in which the selling prices of comparable homes are adjusted up and down based on superior and inferior qualities; except in our case, we use businesses instead of homes. This approach is useful in valuing non-productive assets such as the 10 acres of land sitting under a cash-flowing donut stand but it lacks the ability to value productive assets. The earnings approach accommodates for this and uses the accounting net profit with discretionary items and non-cash expenses added back-in. This figure is then divided by a capitalization rate in order to reach a business value. The capitalization rate is equivalent to a required return on investment and can be thought of as the level of perceived risk in the business, ranging anywhere from 20 percent to 40 percent for small business. For example, if the donut stand averages $50,000 a year in earnings and we use a capitalization rate of 20 preecent, we arrive at a value of $250,000. ($50,000/20 percent). This approach is most similar to how Warren Buffett values the future share price of a business, projecting forward a future value and rate of return based on earnings per share and growth. Increasing Return During a Downturn Another good reason to be a small business owner today is found in the opportunity to increase returns as a result of cheaper inputs. Warren Buffett identifies quality businesses with a durable competitive advantage, a strong earnings track record, a high return on equity and the ability to reinvest in the compounding engine. He does not merely look for the discarded cigar butts with one or two puffs left in them. He identifies great companies with a durable competitive advantage and then patiently waits for them to go on sale. His argument is that if he can buy a company today for $31 a share and it will be worth $80.40 a share at the end of 10 years, then his annual rate of return will be 10 percent. If he can buy the same business for $26 a share, then his return will shoot up to 11.95 percent. In a downturn, great businesses go on sale. Similarly, the owner of a small business with a durable competitive advantage can purchase cheaper inputs such as labor and materials during a draw-back and increase returns over the long haul. Typically, bigger fish with solid financials can outlast competition during recessions and price wars. Thus, the survivors of tough economic times, those with durable competitive advantages, can emerge on the other side to find a clearer field, bereft of distracting competition and chock-full of new market-gap opportunity. Good businesses will shine while mediocre businesses will wane. Help Is On the Way Additionally, with a federal focus on job creation, new programs are available to assist small business owners, programs such as the Hiring Incentives to Restore Employment Act and the Small Business Jobs and Wages Tax Cut. It’s a great time to be a small business owner because of fundamental, underlying asset building principles, the opportunity to increase returns in a draw-back and the reduced competition. The owner of a small business can increase asset value over time just as Warren Buffett seeks out investments with a clear, underlying ability to expand in value over time. Adam Brownlee is author of "Building a Small Business Warren Buffet Would Love."
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•Low investment and great economic model
•Open in 30 -45 days
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•Services that we offer are in high demand
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Malaysian companies can profit from Big Data and the Cloud: FalconStor
FalconStor to hold awareness session in Kuala Lumpur to help Malaysian companies to uncover the opportunities presented by Big Data and cloud computing.
PHOTO - Simon Ng, South Asia regional director of FalconStor Software Inc
Malaysian companies can realise benefits and business opportunities by getting beneath Big Data and cloud computing, said data protection solutions provider FalconStor Software Inc.
Speaking on May 31 2012, FalconStor Software South Asia regional director Simon Ng said it was time to hold an awareness and education session for Malaysian companies from all industry sectors to discuss Big Data and the importance of cloud computing.
"with the rapid rise of cloud computing, data analytics and Big Data, we are asked by customers to explain the technology and not jargon, and present the real insights into the storage world of Big Data and Cloud impact on their IT environment and daily operations," said Ng.
"In particular, safeguarding valuable company information by using a recovery process that is key based on a unified storage infrastructure to ensure any soft errors like data corruptions or OS (operating system) crash can be recovered based on any services, anywhere and anytime," he said, adding that a rest and test application was also essential to ensure availability and continuity of data, server, storage, infrastructures.
Ng said the company has gathered experts in Kuala Lumpur to uncover the basics and practical opportunities behind Big Data. "Despite all the hype created around Big Data there is no doubt that the need to cope with the aggressive growth of data, as well as to contend with the increased variety of data sources, is not only introducing a number of challenges for organisations, but also significant opportunities."
"Questions posed are whether organisations in this region ready to embrace Big Data Analytics and What are the key challenges faced by end-users?" he said."There has to be an emphasis on heterogeneous cloud and storage consolidation and on the importance of recovery in the cloud based on the angle of fast, accurate and simple recovery on server storage virtualisation. In addition, CIOs need to test their confidence and trust on strengthened security on DR-as-a-Service (DRaaS) to help them jump on-board this cloud infrastructure."
For more information about the Falconstor Solutions Day 2012, Sime Darby Convention Centre Malaysia, 5th June 2012, please visit - http://info.falconstor.com/MY2012FalconStorSDAgenda.html
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Monday, May 28, 2012
Boeing co-sponsors conference to explore business opportunities with M'sia
Boeing co-sponsors conference to explore business opportunities with M'sia
Kuala Lumpur: The Boeing Company co-sponsored a conference with the Malaysian Investment Development Authority (MIDA) on May 2 in St. Louis to showcase current business opportunities in Malaysia and to discuss the goals of Malaysian industry.
Conference attendees included representatives from 75 Malaysian and U.S. companies.
"Strategic and cultural alliances are shifting back to markets in Asia," said former U.S. Sen. Christopher "Kit" Bond, who spoke at the conference in St. Louis.
"Establishing partnerships with Malaysian industry is critical in capturing new opportunities. Malaysia has transformed into a competitive, high-tech economy that is actively seeking areas of mutual collaboration in the medical, technology, and aerospace industries."
Boeing's involvement with Malaysia dates back to 1947 and continues Thursday through a variety of programs, including the country's fleet of F/A-18D Hornets, Harpoon Weapon System, MEASAT satellites, training programs, and commercial aircraft.
Most recently, Insitu Pacific, a wholly owned subsidiary of Insitu and Boeing, announced a contract for the ScanEagle unmanned aircraft system in Malaysia and a partnership with Composites Technology Research Malaysia to provide in-country support for ScanEagle operations.
In addition to improving its intelligence, surveillance and reconnaissance capabilities with ScanEagle, Malaysia also is looking to bolster its fighter capability.
Boeing is offering the next-generation F/A-18E/F Super Hornet in Malaysia's Multi-Role Combat Aircraft competition.
"Strategic international partnerships create combinations of capabilities and ideas that give the partners a greater competitive advantage for future business pursuits," said Mike Gibbons, Boeing vice president of F/A-18 and E/A-18 Programs.
"Boeing continues to demonstrate its long-term commitment to building win-win opportunities with the Malaysian aerospace industry that are independent of any one platform sale and will continue beyond any potential sale."
Other co-sponsors of the conference included the Boeing Institute of International Business at Saint Louis University; Kit Bond Strategies; Missouri International Trade & Investment Office; the Regional Chamber & Growth Association of Saint Louis; US-Asean Business Council; U.S. Department of Commerce; and World Trade Center Saint Louis.
A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft.
Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 61,000 employees worldwide. - Bernama
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The CityStir Business Opportunity
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If your looking for a home based business opportunity, CityStir might be the perfect fit. CityStir is a network of community based websites that helps local small businesses connect with the local community.
Through the CityStir business opportunity you will own and operate a community website that gives visitors timely information about what's going on in the local community, and give businesses a cost effective means to increase their online footprint.
CityStir can be worked either as a part time or full time business opportunity. The CityStir business opportunity can help many different professionals connect with the local community. Political leaders can use a CityStir site to stay in touch with local residents. Real Estate Agents can use CityStir to position themselves as neighborhood experts. Non Profits can use CityStir as a perputual fundraiser. The possibilities are endless with the CityStir business opportunity. To learn more about the CityStir home based business opportunity visit http://citystir.com/
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Haley: Grand Strand means business opportunities - msnbc.com
Charleston — MYRTLE BEACH, S.C.- Gov. Nikki Haley says while the Grand Strand is great for tourism, it also provides business opportunities for investors. Haley made the comments Monday during a business conference with Canadian business leaders in Myrtle Beach. Haley said the conference highlights Myrtle Beach as a...
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