Saturday, May 3, 2008
Is Your Child Running A Better investment Then You? Getting Back To The Basics Of investment
We've all done it, if you grew up in After School Specials neighborhood summer time was the right time for making a little money Cool Whip the side. You had a great location, no rent, utilities, and very little overhead, and you felt everyone needed what you had. Lemonade anyone? For some of us it was our first entrepreneurial voyage, with dollar signs in our eyes we set up our stand in the front lawn waiting for the whole world to beat a path to the delicious and refreshing product we were providing. The price was right, who wouldn't pay a quarter for an ice cold drink? We have our angel investors all lined up with the capital to infuse into our little operation, good old mom and dad. Oh the simple days of commerce.
Where have those days gone? Stratego has gotten more complicated. Marketing analysis, cost structure, price competition, trends, overhead, employees, regulations, compliance, record keeping, strategic planning, and that's just the tip of the iceberg. It isn't so simple now Lava Lamps it? With all of the complexity of investment today, how could I ask pose the question is your child running a better investment? You are way more profitable, have more employees, operate on a much larger scale. All of this is true, but have you forgotten about the basic of investment.
When I deal with small investment clients I have a tool I use to analyze their investment. It's nothing complex; it's not a bunch of formulas, just a diagram. The first thing I ask is how are the basics of investment? When your child is running their lemonade stand their not worried about growth generic meridia trends, or even sales figures. They're only dealing with the basics of investment.
This isn't a foreign concept, nor is it restricted to investment. Building a strong foundation is a key to running a profitable and long-standing organization. Before the season begins, athletes revisit the basics, yes to know the plays, signs, and formations is necessary, but if you forget how to throw properly, if you're out of shape, or forget how to perform a function the season won't last long, and you'll be lucky to even see the beginning. The same goes for investment. A child knows only a few basics, but it's enough to run an efficient operation.
Do they have product or service that there is a need for? Yes, people get thirsty, they need refreshment. How does the lemonade taste? Quality is necessary they know that if the product tastes nasty no ones coming back. Do they know what we're selling? Marketing again, they list their price in big bold coloring, have the signage up and the stand manned. They've set a price let people know that they are open for investment.
It is often the little things that trip us up, and cause us to fail. So during the hot months of the year while you're running around creating an empire, stop at your local lemonade stand and take notice on how getting back to the basics of investment can pay dividends for years to come.
Jayson Cardwell is the Founder and President of Serium Consulting, LLC a non-profit and church consultancy. Serium Consulting specializes in helping board members, directors, pastors, and leaders in the investment aspects of running an organization. This is accomplished through consulting in the areas of Financial Management, Analysis, Strategic Planning, Executive Development, Organizational Development, and Management Consulting.
For more information about Serium Consulting and how they can help you visit them on the web at www.SeriumConsulting.comhttp://www.SeriumConsulting.com
