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jerryking : profitability   7

Yes, It's a Tech Bubble. Here's What You Need to Know
SEPTEMBER 2015 ISSUE | | Inc.com | BY JEFF BERCOVICI.

"Investors change priorities. Soon, they may be telling you, 'We want to see profitability at the expense of growth.' So you need to think about the levers you can pull to make that happen." (JCK- How does redirect from a growth mindset and plans to one of profitability?--Scott Kupor)

First, there will be some upside. Sky-high home and office rents in certain cities and neighborhoods will drop, and if you're not in the market yet, you'll have a great buying opportunity. If you're hiring, the drum-tight talent market for anyone with programming skills should loosen up considerably, although big companies may reap the benefits more than small ones, says Oliver Ryan, founder of the tech recruiting firm Lab 8 Ventures. "The 'war' for engineering talent is primarily a supply-and-demand issue, so a widespread pullback of venture capital would likely diminish demand to a point," he says.......a burst bubble could also create new types of adversity. ....suppliers and distribution partners may disappear, your business notwithstanding......money is time, and the best way to ride out a downturn is with a couple of years' worth of cash stashed in your mattress. Just be sure you're prepared to deliver a couple of extra years' worth of growth, because you'll need to if you follow the raise-more-than-you-need plan. "It's not without risk," .... "You'll have to make the numbers to justify your valuation at some point, so you're raising the hurdle on yourself."......To make it over the chasm, you have to show investors traction and momentum--a PowerPoint slide with a line pointing up and to the right. A startup can often manufacture these things by spending enough on advertising and customer acquisition. But the attributes so richly rewarded in the current environment aren't necessarily the same ones that will be selected for once the bubble bursts......In October 2008, Doug Leone of Sequoia Capital gave a famous presentation titled "R.I.P. Good Times," in which he counseled entrepreneurs to squirrel away their nuts for winter and "spend every dollar as if it was your last." In hindsight Leone's forecast, and his warning was seen as alarmist......be more careful about the terms on which you raise money as that "extreme end of a cycle" approaches. Typically, you'll seek the highest possible valuation: (a) It minimizes dilution and generates publicity that attracts talent and clients and even more capital. But as valuations settle--and the inevitable rise of interest rates all but guarantees they will--founders who overreached will struggle to support, or defend, those valuations. In the worst instances, if you finagled an extra 10 or 20 % of paper value by granting investors aggressive downside protections--the "features" and "ratchets" that VCs use to make reckless bets without incurring real risk--you'll find yourself downgraded from owner to employee. "
boom-to-bust  bubbles  downside  economic_cycles  economic_downturn  founders  growth  investors  mindsets  overreach  profitability  priorities  pullbacks  recessions  Sequoia  start_ups  Silicon_Valley  silver_linings  upside  vc  venture_capital  war_for_talent 
october 2016 by jerryking
Toronto café and coffee-shop boom about to go bust?
Feb 22, 2012 | The Grid |BY: David Sax
Since 2008, an estimated 100 new independent cafés have opened in downtown Toronto, offering premium espressos at premium prices—usually within bean-throwing distance of five or six other coffee shops. How the hell do they all stay in business?
coffee  Toronto  profitability  high-quality  Independents  cafés  David_Sax  bubbles 
may 2013 by jerryking
Grocers, academics are spoiling for a fight
December 26, 2005|Orlando Sentinel | By Jerry W. Jackson, Sentinel Staff Writer.

Now, according to recent studies by the U.S. Department of Agriculture's Economic Research Service, produce accounts for about 8.7 percent of total supermarket sales, but 20 percent of the profits.
fresh_produce  profitability  supermarkets  grocery  statistics 
april 2013 by jerryking
HOW TO SELL FRESH PRODUCE TO SUPERMARKET CHAINS
March 1999 | | Bobby G. Beamer, Adjunct Professor, Department of Agricultural and Applied Economics, Virginia Tech.

The most common approach to penetrating the fresh produce market has been to identify market windows created by seasonal production variations in major production areas. To attract buyers, local producers have attempted to fill market windows left open by established marketing channels. This production
approach to marketing fails to consider the needs of their customers: the retail supermarkets and their buyers.
However, by adopting a marketing approach , growers can establish better long-term relationships with their customers and capture more benefits than merely competing with other producing regions on price. Marketing efforts must begin before production as growers learn about buyers` needs and
requirements, including grade, quality, packaging, and delivery, in addition to learning which individual produce items are needed. The marketing approach, then, requires that growers produce what they can sell rather than trying to sell what they have produced. With the emphasis on variety in the produce section, Virginia growers may find more production opportunities in the specialty item category than by attempting to meet the shortages created by seasonal production
variations.

the average produce department in 1994 occupied 12 percent of the total store space but generated almost 17 percent of the average profits for the store. Previous research (Runyan, et al .) identified the following problems that can hinder the development of a good relationship between buyers and producers:
∑ lack of consistent quality,
∑ uneven sizing and grading,
∑ product too mature,
∑ lack of advance notice of product availability,
∑ inadequate removal of field heat, and
∑ lack of organization among local growers.

CONCLUSIONS
This study confirms the conditions for market entry described by Ryan, et al .: consistent grading for quality, even sizing, proper product maturity; removal of field heat; anticipated arrivals; and grower organizations. Merchandisers stressed the importance of good relationships, stating that new producers would have a hard time penetrating the market because of the loyalty factor established between growers and buyers. Part of this relationship is that ì. . . even at a cheaper price, itís going to be hard to pry us away from [our usual suppliers] because they provide consistent size, color, packing, and delivery. If we call them up and say that weíre short and need another truck load, theyíll have it here for us this
afternoon.îThe existence of these relationships emphasizes the need for the producer to get to know the market.
Rather than trying to compete with existing relationships, producers need to identify commodities having inconsistent supplies or poorly established supply relationships.

During interviews, produce merchandisers consistently expressed doubts about the willingness of small-scale, local produce growers to adopt practices conducive to the establishment of relationships . Although small-scale producers lack the economies of size that enable large-scale producers to invest in equipment and facilities, new institutions, such as the shipping-point markets, may provide small firms with the support needed to establish market relationships. However, such marketing support may be coming at the wrong end of the production process. Traditionally, fruit and vegetable growers, like many people involved in agricultural production, view their role primarily as commodity producers. The primary emphasis is placed on producing a good product, while marketing is viewed as strictly a post-harvest activity. One merchandiser related the story of a new producer who grew several acres of Daikon, a large, hot Japanese radish. The producer was disappointed to discover that after harvesting the crop no one was interested in purchasing it. Such a problem could have been avoided if the grower had invested some time, prior to production, in market research. Unfortunately, many producers still follow this approach in the production and marketing of fresh fruits and vegetables
fresh_produce  supermarkets  grocery  howto  market_windows  statistics  profitability  barriers_to_entry  farming  agriculture  Virginia  decision_trees  WaudWare  OPMA 
april 2013 by jerryking
Planning for profit
Mid-Mar 2000 | Professional Builder Vol. 65, Iss. 4; pg. 59, 2
pgs | by Tom Stephani . Simply defined, profit is payment for risks
taken, capital invested, and liability exposure. Sadly, far too many
small volume and custom builders operate as non-profit businesses. In
order to make a net profit in the home building business, builders must
define profit, plan for profit, and have systems in place to measure it.
Profit is the most important component of the gross margin that you
apply to every construction project that you sell. Profit is over and
above any salary benefits the owner is paid for the day-to-day operation
of the business. Often, smaller builders assume that profit is what is
left over after paying all of the bills. Determine what your profit goal
is first, and then work the numbers to determine what gross margin you
must achieve at a realistic sales level.
profits  planning  profitability  profit_dynamic  measurements  small_business 
december 2009 by jerryking

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