Reinvest profits or sell your company?
There are an important links between the reinvestment of net profits and the growth of the company. According to Professor Aswath Damodaran, the long-term profits growth rate is given by: This can be calculated from the net profit or operating profit, for example: If...
Do you really optimize your time?
It is very common to see how some entrepreneurs try to keep low fixed costs by avoiding to hire certain key personnel or hiring an inadequate (cheaper) person to lead certain processes. Recently the manager of a company with 160 employees told me that the approval of...
Have you already planned your exit strategy?
Every day I see how some entrepreneurs are associated without having a clear exit strategy. By associating I mean becoming part of a society, company, or legally binding project. A partnership with a third party is like a marriage, it can be great or a disaster...
To execute investments within your company you must first plan
All companies have multiple investment opportunities, in all areas of the company there are many opportunities for expansion and improvement. Simply ask each area leader what is needed and you will find requests like these: Production: “We need to replace the...