Online companies are growing every year and some companies have met a threshold that allows them to function on a higher level. If you are starting a business you will want to ensure you have enough products to actually attract customers and keep them around. As a bonus you can actually charge a little more for these products than many ground based businesses.
Online retailers often offer higher prices than traditional brick-n-mortar stores and have advantages when offering an assortment of products (Koncar, et. al., 2016).
Assortment of Products: It is important to offer enough products to keep people interested. If you don't have enough on your site there is no reason for people to visit or to stick around. Many times people may be looking for one product and buy another. Likewise, you may find that more products create more interest for potential visitors.
Online Prices Typical Higher: This is interesting because I never thought it would be the case because brick-n-mortar has more overhead. However, you may find that there are fees to selling online and there are associated costs. The good news is you can command a little higher price. Remember that people can also compare your product price online.
Koncar, J. et. al. (2016). The assortment structure and the price levels as a factor of marketing channels. Ekonomski Vjesnik, 29 (3).
Wednesday, May 30, 2018
Tuesday, May 29, 2018
CEO's From the Outside are More Likely to be Hired and Earn More Money
CEOs are an integral part of the leadership team. They make and steer the helm of the ship and rely on their crew to keep the company moving forward. For those seeking to maximize their earning power future CEOs should consider moving to outside companies rather than being promoted within the company.
Research has shown that external hiring of CEO's earn more money than internal CEO's (Palomino & Peyranche, 2013). The reasoning is not necessarily clear but much of it may have to do with perception and negotiation power during the hiring process.
Board of directors seem to support outside CEO's and seem to increase compensation packages in the form of equity than internal CEO's. They also hire them more often making the case that any CEO who wants to earn more money should look elsewhere.
When we think about this there is a case for outside CEO's when you need to change the culture or need to do something unique. However, internal CEO's have a history and understand the organization well. This has advantages if you need to create a deep change and the CEO who would know that best is the one that comes from the inside.
Palomino, F. & Peyranche, E. (2013). Internal versus External CEO Choice and the Structure of Compensation Contracts. The Journal of Financial and Quantitative Analysis, (48), 4.
Research has shown that external hiring of CEO's earn more money than internal CEO's (Palomino & Peyranche, 2013). The reasoning is not necessarily clear but much of it may have to do with perception and negotiation power during the hiring process.
Board of directors seem to support outside CEO's and seem to increase compensation packages in the form of equity than internal CEO's. They also hire them more often making the case that any CEO who wants to earn more money should look elsewhere.
When we think about this there is a case for outside CEO's when you need to change the culture or need to do something unique. However, internal CEO's have a history and understand the organization well. This has advantages if you need to create a deep change and the CEO who would know that best is the one that comes from the inside.
Palomino, F. & Peyranche, E. (2013). Internal versus External CEO Choice and the Structure of Compensation Contracts. The Journal of Financial and Quantitative Analysis, (48), 4.
Putting Our Money Where Our Values Are-The Problem with Stock Market and Strategic Decisions
We are moving toward a trade war with China and the Down Jones Industrial Average tumbles 400 points. Perhaps a small bump or something more substantial. We can say that much of our lives in business, government and even national security is based on stocks and large investors. From the beginning of borrowing there has been the ability to influence national decisions based on money alone.
History has shown that some countries have been toppled and experience political insecurity based on debt loads and investment. A few spots in history have shown (i.e. Mexico independence) that not paying debt can lead to invasion. While the world has partially advance from these draconian methods we are still stuck to the same puppet strings.
That is not an argument for or against trade restrictions or even a trade war. It is a concern that perhaps we are too run by money and the whims of the investment class. Some level of insulation is needed to ensure companies and countries can make long-term decisions that are in the best interest of their security.
Investors are not always all wise or all seeing. They make quick decisions in order to recap on money and eek out profits. There are times when long-term strategy doesn't filter beyond their limited scope of perception. A seemingly poor short-term decision can have an immediate impact on the market and investment.
For those making the decisions it means constantly watching stock prices and adjusting the books to ensure there isn't a fall out. Not all of this is bad. The market has the ability to push for more openness with trade and more fiscally sound decisions. It does that in the long-run but sometimes misses the mark with the steps needed to get there in a time frame wanted by the investors.
It does have a great amount of power to control events by people who may not have a stake in those events in the same way as people who live within a particular country or within a business. For example, if a long-term decision is unpopular a CEO may have to adjust their strategy to please investors when this may not be the wisest decision. They may be thinking 50 years down the road and not 3 or 5.
History has shown that some countries have been toppled and experience political insecurity based on debt loads and investment. A few spots in history have shown (i.e. Mexico independence) that not paying debt can lead to invasion. While the world has partially advance from these draconian methods we are still stuck to the same puppet strings.
That is not an argument for or against trade restrictions or even a trade war. It is a concern that perhaps we are too run by money and the whims of the investment class. Some level of insulation is needed to ensure companies and countries can make long-term decisions that are in the best interest of their security.
Investors are not always all wise or all seeing. They make quick decisions in order to recap on money and eek out profits. There are times when long-term strategy doesn't filter beyond their limited scope of perception. A seemingly poor short-term decision can have an immediate impact on the market and investment.
For those making the decisions it means constantly watching stock prices and adjusting the books to ensure there isn't a fall out. Not all of this is bad. The market has the ability to push for more openness with trade and more fiscally sound decisions. It does that in the long-run but sometimes misses the mark with the steps needed to get there in a time frame wanted by the investors.
It does have a great amount of power to control events by people who may not have a stake in those events in the same way as people who live within a particular country or within a business. For example, if a long-term decision is unpopular a CEO may have to adjust their strategy to please investors when this may not be the wisest decision. They may be thinking 50 years down the road and not 3 or 5.
Motivated Grit Makes Winners in the Business Game
Entrepreneurship takes its glow from the deep desire to chart one's own course and sail your way into ports still unknown. With starry eyes we eye possibilities and ruminate on ideas until one gains traction and like a 4X4 in mud we put it into a lower gear and press the gas until we get to the other side and make our way to better traction.
People may come from a variety of different backgrounds and from an entire field full of ways of thinking but each one comes to the business owner game with a single motivation. Money trumps the list!
Money isn't just money though is it? It is more like freedom, power, self-direction, validation, and display of skill that is wrapped into the concept of money. It looks more like a sport of comparison against others more than it is an actual purchasing medium.
Drivers of entrepreneurial aspirations are based in wealth creation (Hessels, van Gelderen, & Thurik, 2008). Those that desire to start a business funnel their needs into wealth and this opens up other opportunities for them.
People may come from a variety of different backgrounds and from an entire field full of ways of thinking but each one comes to the business owner game with a single motivation. Money trumps the list!
Money isn't just money though is it? It is more like freedom, power, self-direction, validation, and display of skill that is wrapped into the concept of money. It looks more like a sport of comparison against others more than it is an actual purchasing medium.
Drivers of entrepreneurial aspirations are based in wealth creation (Hessels, van Gelderen, & Thurik, 2008). Those that desire to start a business funnel their needs into wealth and this opens up other opportunities for them.
There are a million ways to make money but not so many people with the ability to actually get it done. To succeed in this new arena means one has to be highly motivated to compete day in and day out seeking ways to beat out their competition. Their innate desire to master beats out the grind of the actual work over a sustained period of time. You win with motivated grit!
Hessels, J., van Gelderen, M. & Thurik, R. (2008). Several drivers of entrepreneurial aspirations and entrepreneurial motivations are investigated using country-level data from the Global Entrepreneurship Monitor. Small Business Economics, 31 (3).
Monday, May 28, 2018
A Quick Hike at Torrey Pines-Pictures
Torrey Pines offers a water protected outlet with hiking trails and unique scenery. It takes about 1.2 hours to hike up the hill and down the beach path. A great little exercise that sees scores of people every year.
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