Learning Team Reflection Essay

Essay Topics: Essay, Learning, Reflection, Team,
Category: Non categorie,
Words: 716 | Published: 01.18.20 | Views: 148 | Download now

Alan Litchman and Laura N. Trust, Co-Presidents of Finagle a Kleines, rundes br?tchen, own a kleines, rundes br?tchen business in Boston (Parrino, Kidwell, Bates, 2012). Alan and Laura met in operation school after gaining organization experience in other industries that they purchased the bagel business with the objective of growing it as far as possible. They have two primary concentrate on markets: 1) retail stores and 2) low cost accounts with large corporations.

Get essay

In this daily news, we will certainly briefly discuss a few of the strategies they used to manage their very own working capital. The owners of Finagle a Bagel were tired of working for other people so they decided to buy one new business. They have applied several financial concepts to handle the economic accountability of their small business. They may have controlled costs from the beginning in the process for the delivery with the product, in addition to the administrative costs.

Other items which have been pointed out are the managing of cash movement, payback, and the schedule of money entries, which has allowed the corporation to pay its bills. They have proven a good relationship with the banks in order to negotiate the time framework for repayments and rate. Suppliers are also a key accomplishment factor intended for the company, as the repayment terms will be negotiated to complement the flow cash. The company’s concentrate is to maintain its financial managing so that the organization may grow and return huge profits.

The Finagle a Bagel even offers a policy of recognizing hard work with their employees. The owners assume that managers and employees are responsible for the success of the company. Jointly, the company is growing in a lasting and fiscally healthy way. According to Alan Litchman, when making any kind of investment, first one has to understand what the demand pertaining to the new product is going to always be, and what style of item can be made out of the new products (Parrino, Kidwell, bates, 2012). Alongside his wife, Mister.

Litchman discussed how important it is to understand the company’s performance and opportunities to better apply capital investment in the company. They will both explained, in their very own words, the value of establishing strategies and planning ahead of putting a cool product on the market. The couple likewise spoke about debt.

Laura Trust stated that debt is usually a necessary evil’ and often taking financial debt has it is benefits if compared to locating capital through other means, such as chasing a partner (Parrino, Kidwell, Bates, 2012). In such a case they did not need to take a venture capital spouse because the owners wanted to have got authority when producing business decisions, thus keeping away from working for somebody else’ (Parrino, Kidwell, Bates, 2012). This kind of shows that the owners try some fine business framework like a singular proprietorship. Lastly, the fact that interest rates have been dropping for small business as well supported their particular decision to try to get debt to invest in the company.

The couple is incredibly educated when creating business decisions, as they recognize that even when a business has financial resources, the business increases more by simply obtaining financial resources from banking institutions with tiny interest rates, when allowing the time they have to create dividends with higher interest levels. This is generally called borrowing cheap money’ (Investopedia, 2014). Finally, credit rating is also discussed. They mentioned trade credit, which is how much time directed at pay back sellers for the merchandise bought. The longer the word, the better, as it permits time to acquire revenue before having to spend the debt.

This is another very important recommendation on how to properly make use of cash flow and steer clear of taking on personal debt. Overall, Joe Litchman and Laura M. Trust show a thorough knowledge of how to control their capital so that their particular small business continues to grow and increase their net income, despite economical challenges in the neighborhood and the region. References Investopedia. (2014). Low-cost Money.

Retrieved from http://www.investopedia.com/terms/c/cheap-money.asp Parrino, L., Kidwell, Deb., Bates, Big t. (2012) Basic principles of Business Finance, (2nd Ed) David Wiley & Sons Incorporation.

< Prev post Next post >