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Financial profits from commercial success - 25th October 2008
Expanding markets in a global economic slow down

Warren Buffet has an ability to identify undervalued companies which he buys cheaply. This strategy has made him and many who invested in Berkshire Hathaway very wealthy. He basically buys shares in companies with low overhead expenses, high growth potential, significant market share and low price-to-earning ratios.

This effectively means that investors should invest in sound commercial ventures when the financial economy appears volatile. It is commerce with sales of real goods and services for profit that forms the bedrock of capitalist systems. This coupled with the right regulatory framework can be leveraged through financial derivatives creating a financial economy that supports the commercial base.

When he was 11 years old Warren Buffet bought his first stock, 3 shares of Cities Service Preferred at $38 a share. The price dropped to $27, then recovered to $40 when he sold thus making a profit. He however, missed the rise in value of the company’s share to $200. This was his lesson in patience.

For an entrepreneur the important thing is identifying and reaching your market. The product or service must be of a quality that establishes a loyal consumer base that will return for more. This coupled with an effective “brand strategy” can translate into long term market share.

Identifying and understanding a market is therefore crucial. The website www.downtownwinnipegbiz.com is a site that introduces the city of Winnipeg, located at the geographical centre of North America the largest market in the world. With about a hundred different ethnic communities, Winnipeg with its strategic location and affordable cost of doing business appears to be an excellent place to introduce a new product into the North American market. Commercial and consumer buyers who click on BUSINESS–QUICK CONTACTS in the Downtown Winnipeg Biz website will find worldwidebusinessconnection.com a virtual business centre. This website provides companies seeking new markets a link to the North American and worldwide market.

The global financial slowdown which started with the burst of the United States property bubble resulted in falling equity prices on the New York Stock Exchange. This resulted in financial insolvencies on Wall Street. Companies worldwide will now, have to cut back on operational expenses while seeking opportunities in new markets. Having experienced a supply chain squeeze on margins of profit, traditional established producers, wholesalers and retailers may now find it difficult to reduce prices.

Establishing a North American presence can position any company venturing into new markets with the right base for future expansion as the US government rescue package gradually restores confidence in the financial markets.

In today’s global economy worldwide business connection through the internet is one of the cheapest and fastest ways for expanding market share and growing a business. Internet access provides information, feedback from consumers and market news critical in planning business strategy.

Sunil Bharti Mittal of the Bharti Group who made a fortune in the mobile phone industry speaking on entrepreneurship to the Wharton Business School essentially advised that, you should do things that you have not done before. Go into markets where government does not place road blocks. When caught between speed and perfection, choose speed. You can improve along the way. But always deliver quality.

Siddha Param
International Business Consultant
E-mail:siddhaparam@worldwidebusinessconnection.com