Ged Carroll

Category: business | 商業 | 상업 | ビジネス

My interest in business or commercial activity first started when a work friend of my Mum visited our family. She brought a book on commerce which is what business studies would have been called decades earlier. I read the book and that piqued my interest.

At the end of your third year in secondary school you are allowed to pick optional classes that you will take exams in. this is supposed to be something that you’re free to chose.

I was interested in business studies (partly because my friend Joe was doing it). But the school decided that they wanted me to do physics and chemistry instead and they did the same for my advanced level exams because I had done well in the normal level ones. School had a lot to answer for, but fortunately I managed to get back on track with college.

Eventually I finally managed to do pass a foundational course at night school whilst working in industry. I used that to then help me go and study for a degree in marketing.

I work in advertising now. And had previously worked in petrochemicals, plastics and optical fibre manfacture. All of which revolve around business. That’s why you find a business section here on my blog.

Business tends to cover a wide range of sectors that catch my eye over time. Business usually covers sectors that I don’t write about that much, but that have an outside impact on wider economics. So real estate would have been on my radar during the 2008 recession.

  • Cash divide

    The 1990s had a cash divide. A number of years ago in college, I wrote an essay about the role of technology exclusion in society. This internet as a thing was only really starting to get going and we had just changed over the web browsers at the college from Mosiac to Netscape.

    I used to surf the web in 16 shades of grey available on my battered PowerBook 165, when I jacked into the JANET network. Why am I rambling about a geriatric computer and the ‘net before Google?

    Well, I used the web to research my essay and came across an article on the Washington Post about the cash divide discussing a ‘cash ghetto’, increasingly if you had to deal in cash you were on the margins of society. Part of this was down to the laundering of money from organised crime, including the drug cartels. It made sense to move as many people as possible out of the cash economy, but it created a cash divide. The cash divide separated illegal migrants from citizens; criminals from law abiding citizens.

    An article in the Arizona Daily Star, which my RSS feed aggregator picked up talked about the pervasive nature of Visa and MasterCard where cash was once king reminded me of the college essay.

    Visa and Mastercard have moved in alongside cheque cashing services and remittance businesses to bridge the cash divide profitably. Poor people tend to pay more charges than richer members of society.

    You don’t even need to have a credit record or a banking account. There are ways to provide pre-loaded credit cards in the US to bridge the cash divide. From intern payments to staff bonuses can be provided on cards form Visa, Mastercard and even American Express.  Interesting reading check it out. More finance related posts here.

  • Pitching VCs

    Eric Dunn, general partner with Cardinal Venture Capital wrote the following guide for pitching VCs. This was originally posted on AlwaysOn:

    Figure out what the audience already knows. If you have included a long market overview in your presentation, but are presenting to an industry veteran, you almost certainly win points for skipping quickly through the overview. Figure out what the audience doesn’t know. Conversely, there’s no rule against giving a brief introduction before starting your prepared pitch: “Just in case you aren’t familiar with the automated test equipment market, let me outline for you the major categories and who the market leaders are….” Then take a few minutes off the cuff.

    Pretty basic business presentation skills summed up in pitching VCs – there are no silver bullets beyond nepotism.

    Explain acronyms and terms of art. Your audience is probably ashamed to ask what the LEAP protocol or the IFX standard is, so unless you are sure that everyone in your audience knows what it means, give them a break.

    Track your audience. If you are getting blank stares from the audience, it could mean that they don’t understand, or it could mean you’re belaboring the obvious. Break stride and ask to find out which it is.

    Answer questions crisply. It’s better to say “I don’t know” or “I’ll have to get back to you on that” than to waffle with an incomplete or inaccurate answer.

    What Doesn’t Work

    Unbalanced presentations. Don’t succumb to the temptation to dwell on your personal area of expertise. A dozen slides on the technical attributes of the product, or on the details of the proposed sales organization, is almost certainly too much.

    Spelling, grammar, and punctuation errors. Although your audience will cut some slack for non-native-English speakers, there’s really no reason not to get this stuff right.

    Math errors. Not fatal, but math mistakes definitely chip away at your credibility.

    Hiding the ball. If your CTO is about to resign, you lose far more points when potential investors find out later than if you are up front about it.

    Arrogance. Most entrepreneurs have a lot to be proud of, but the best I have seen retain their humility no matter how successful they become.

    Selling the wrong point. If the critical question is price performance, don’t spend 15 minutes on channel strategy.

    Preaching to the choir. If an investor says “OK, we accept that this is a $5 billion market,” stop! Once you have convinced your audience of a point, you lose ground (for obtuseness) by going on to make additional arguments.

    For many entrepreneurs, these suggestions for improving investor pitches will be old hat. But all entrepreneurs should recognize that even a great business can’t shine through a low-quality pitch. Good pitches mean investment decisions are made on the merits of the underlying business, and that’s in everyone’s interest.

    More related content here.

  • The number

    Whilst catching up on my backlog of mails I came across this from CBS Marketwatch on Yahoo! making the number. The number is the consensus that market analysts think that a company will make in a given quarter:

    NOT MUCH SHOUTING GREETS YAHOO EARNINGSYahoo shares (YHOO) got the boot after the company kicked off a fresh earnings season for the online-media group by only just measuring up to expectations, demonstrating what American Technology Research analyst Mark Mahaney called a mantra: “in-line quarters don’t cut it for Internet stocks.”

    Ok, basically what this guy Mahaney is saying that because Yahoo! managed to get their profit for the quarter in line with what a number of market anlaysts expected them to be (based on a guestimate set maybe 90 to 180 days back) then they deserve a kicking.

    Unbelievable, accountancy despite the use of numbers is not an exact science, why?

    • Bills and sales are constantly coming in and out of a company
    • What does a sale really mean? If you sign a 3 year deal for online advertising, should Yahoo! claim that as a sale all at once or claim as the money comes in
    • When is the money in? When you invoice for it, or when it sits in your bank account
    • Is the capital gains made on the building you own and work out of profit?
    • If you had a bumper quarther this time but you know that the next quarter will be soft, should you avoid booking all the sales in to give you an income cushion next quarter?
    • How should you write off the depreciating value of computer equipment, chairs or a forklift truck? There can be more than one way of doing it that will affect the figures

    With this in mind, I would recommend that you read The Number by Alex Berenson, which takes you through the insanity of it all in greater depth.

  • Getting burned

    Interesting article in Bambi Francisco of CBSMarketwatch’s regular email. It seems despite the dot.com bust, investors are still up for getting burned.

    SAN FRANCISCO (CBS.MW) – Sometimes, you do what you can to stay afloat.As many market watchers have already observed, there are companies out there that appear to be promising candidates in a hot business area, but make their money off of something entirely non-related.

    Some investors may have heard of a company called Mace Security International, whose shares traded to a recent high of $6.68 in mid-June after trading below $2 earlier this year. The stock went gangbusters because the company’s been touting its anti-terrorist, surveillance security products.

    One would think Mace housed a number of technologists in cubicles. Yet those techies weren’t techies at all, unless washing cars requires an engineering degree. Apparently, Mace generated 85 percent of its sales this year from being a car wash, which a big signal that investors will be getting burned.

    Mace shares eventually got washed up a bit as its true colors were exposed. Let’s face it, being a car wash isn’t a competitive advantage for a security company. (Now, if they were impersonating a car wash but were really a security company — I’d say that was impressive.)

    But here’s what we can learn from Mace. Sometimes you have to be creative if you want to stay in business. More related information here.

  • Counite

    I received an email today from the development director of a new social and business networking site called Counite based in Altrincham, a town in the Cheshire ‘stockbroker’ belt between Chester and Stockport. They had apparently culled my name from existing sites that I has subscribed to.

    In the mail I was offered “We will provide you with a free 12-month subscription and would just ask for you to visit the site on a regular basis after the launch, invite some of your business or social contacts along and provide us with some monthly feedback on the site performance. We can ensure you that you will be impressed with the features and functionality, and will greatly benefit from this membership.”

    I was a bit perturbed by Counite with regards the free 12-month subscription statement that implies Counite may get expensive afterwards unlike LinkedIn, Orkut or AlwaysOn Ziabatsu.

    Some of their own words about Counite “This exciting new site takes a global approach to networking using a complex contact management application that identifies your connection to other Networkers. We believe it will be the most comprehensive networking site ever launched with the industry’s most advanced communication tools including Voice over IP.” So the project is buzzword compliant for any vulture capitalist with some pennies burning a hole in their pocket.

    The sites launch follows the demise of some of the UK’s first generation of networking sites: BuddyNetwork and Pollen, so we’ll see how they go. More related content here.