Boosting business confidence in these uncertain economic times

There is an interesting article in today's edition of Marketwatch. Columnist Matthew Lynn makes the point that any business analyzing where and how much to invest is used to looking at things like corporate profits, trade flows, medium-term economic growth, and technological advances.

But these days, none of those things matter nearly as much as the big political questions. In the past, economic conditions primarily determined where markets were going, but today more than ever in history, it is politics that is driving the economy and business decisions.

Put aside what you happen to think about the current political direction being steered by Washington. Matthew focuses on the troubling shift from corporate success based upon analyzing business conditions to now having to analyze political policies. The predicament of businesspeople today is summed up in one word: uncertainty.

There is a growing uncertainty in business, and as a result, critical questions are much more difficult to answer clearly. What new products should we introduce? Where and in what should we invest? What new markets should we enter?  Who should we hire? What's the right price? How much should we manufacture? How much inventory should we hold? In a recent interview with Intel CEO, Paul Otellini, he said, "Take the uncertainly out. Businesses can't invest until they have fewer variables and right now there are just too many variables."

So, why is a corporate trading company writing about business uncertainty?

Because one thing we do really well is smooth out price variability in excess inventory, media, corporate real estate, capital equipment investments and many other business assets and purchases.

For example, say you are questioning how much of a particular product to manufacture. Your costs may be lower by producing more, but can you sell enough of them to warrant the larger investment? Corporate trade can provide you with a safety net by purchasing any unsold product at the full price. No fees. No interest. No hidden costs.

Another example might be a need to upgrade your capital equipment. Perhaps you have a significant lease obligation remaining on the current equipment. New equipment would make you more competitive, but will the result justify the expense of upgrading? Corporate Trade can provide you with a number of options such as nterest-free capital that can be generated from the trading company's placement of your media. That capital can be used to pay the remaining lease on the current equipment or it can be used to fund all or part of the new equipment. Again, it is a source of cash that carries no interest or fees. All that is required is the placement by the trading company of some of your planned media.

Uncertainty is part of business life. But today, with a thick fog covering much of the world economy, corporate trade is becoming an important tool for businesses wishing NOT to sit on the sideline waiting for it to clear before making necessary investment decisions.

Want to learn more? Evergreen Trading will offer you a discreet no-obligation analysis of your current situation. We discuss with you issues you are contemplating such as:

  • The closing out of current products without reducing the price below cost. What are your options, pricing, distribution, etc.
  • The possible sale of corporate real estate at higher than market pricing.
  • Upgrading capital equipment within a current lease term.
  • The need for capital. The amount and how it can be raised interest-free.
  • Getting out of a sponsorship or media commitment without incurring penalties or additional costs
  • An increase in advertising that won't carry a corresponding increase in cost.
  • Your consideration to reduce advertising as a part of a general cost-reduction, and how costs could be reduced without reducing advertising.

We will then generate a report for you and your peers to consider. Easily read and full of guidance and clarity on how corporate trade might be used by your organization, you will at least have a tool to consider that can lift the fog of uncertainty on some of your more pressing issues.

Evergreen Trading is first and foremost a problem solver, and as such, we welcome an opportunity to help create certainly out of what has become a very difficult time to assess situations like the ones listed above.

 

 

About Mike Lake

Mike is the Senior Vice President of Marketing for Evergreen Trading. When not playing jazz trombone he is probably obsessing about writing content that will capture the attention and interest of business people and fellow learning junkies everywhere.

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