Herman School of Business
rebuilding America is really this simple...
You just watched the Olympics and saw a China that wasn’t your expectation. The country is not a stone age village with a billion people living in huts…there is a country with many thriving metropolis’ that rival any major city in the world, with forward looking architecture and modern technology everywhere you look. How did they make this transformation?
How is India becoming one of the fastest growing wealthy nations? Or Brazil? Why do so many countries around the world look more and more like a growing America…while we seem to be falling over backwards?
Simple really.
Because those countries adopted our capitalist ways, the cornerstone of which were three simple ideas. 1) Those with money could invest in companies that hired people and paid them wages so they could in turn pay taxes and buy goods. And the investors got richer because the company paid them dividends on their investments which they re-invested to grow the companies even faster…hiring more people to produce more goods to sell to more customers who had steady paychecks and wanted more stuff.
What’s broken is the cycle of the companies hiring people in America…we outsource manufacturing and management. What’s broken is that workers have no jobs and no money in America to buy stuff. Normally that would force the company to shut down. But today they just sell their stuff to other countries where they hired workers to build the stuff they make.
Idea number 2) Invest in a business that will hire Americans to make products or provide services. Look at start-ups in your area. Perhaps a local firm that has long range growth potential. It took one hundred years to topple GM and Ford do there may be a company near you that is small now but might be around long enough for your investment to grow…while you are rebuilding America!
Finally…3) make your investment in something that has a plan to pay a dividend. We must reverse the trend of letting companies become monsters and hoard cash without sharing the money with the investors who got you there. Gone are the days where you should let a CEO tell you they need the money for growth and your return on your investment will come with the increase in share value. Bull-Hockey. It’s your investment money, let them understand that part of the cash made by “your” company should pay you, the investor.
Three simple ways to start Re-Building America.
In other words…to all budding Entrepreneurs…sell yourself to investors on these three principles and you just might bag the investor who is tired of putting their money into a company that has abandoned these principles.
- Posted: 29 August 2008
- Comments: 0
- Category: Business success
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