I know what you might be thinking, the title above is way too pretentious in the beginning.
However, common sense is by far simpler to interpret than any other approach to a business plan.
First of all, when facing a project there must be a connection between the goal you´ve conceived and two essential principles: resource availability and profitability in terms of returns.
Which obviously means, all business should be financially supported on the basis of an initial level of liquidity plus an estimated amount in terms of future expected value that covers all basic "starting" costs, so as to remain in business by the time the aim of the project has been finally reached.
From then on, we can definitely go for more ambitious goals and therefore assume more risky challenges in terms of returns, by gradually increasing profitability and eventually reaching a higher market capitalization.
So what can you get from this? I´m not saying let´s get started and put our trade mark on the Dow right away, but stock markets are not that far beyond our possibilities when we can efficiently combine the principles cited above.
lunes, 9 de marzo de 2009
The Legacy of Adam Smith
Over the past centuries, human evolution has brought individuals to gradually perform allocation of human resources in increasingly efficient ways, led by what Adam Smith once defined as an "invisible hand", symbolizing the constant eagerness for progress.
No intervention from the government is needed in terms of economic policies, conceived as a natural creation of mankind by means of the decision-making process.
No intervention from the government is needed in terms of economic policies, conceived as a natural creation of mankind by means of the decision-making process.
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