Wed, 18 Apr 2007 14:28:50 GMT

The Most Important Part of The Business Plan

All sections of the business plan are important. Picking one which is most important is difficult. However, I think that there are three areas where most business plans either fail or pass:

1) Market Analysis: how big is the market? The answer to this question tells the reader of your business plan how much market share you need to achieve in order to meet your income objectives. This is the first area I look at in a business plan. For example, if your business plan shows you needing to get a 10% market share to break even -- how achievable is that? Whereas, if the actual number is 0.002% that is very realistic and attainable.

2) Financial projections: your financial projections need to reflect everything else you explain in the business plan. Investors, bankers and experienced business people will look at your financial projections to see if you really do have a good handle on what it will take to run the business.

3) Sensitivity Analysis: if your sales go down 10% and expenses increase 10% is your business still viable? If sales increase 10% and expenses remain the same -- how much profit does it produce?

These three areas will show how well thought out and viable your business plan is -- you should make sure that you do a good job in these three areas. It will make you be realistic and readers of the business plan will know you know how to make this business profitable?

Do not misunderstand me -- the rest of the business plan is important -- but these three areas are the first ones that a seasoned investor and banker will look at closely. Posted by: Greg Balanko-Dickson      Read more     Source

Wed, 18 Apr 2007 08:21:46 GMT

How to Think Like Warren Buffett, Part 17

Here we are on part 17 of the 29-part seriWarren Buffet's words of wisdom from his yearly letters to Berkshire Hathaway shareholders.

Let's take a look at the year 1993, shall we?

Another decent year:
Our per-share book value increased 14.3% during 1993. Over the last 29 years (that is, since present management took over) book value has grown from $19 to $8,854, or at a rate of 23.3% compounded annually.

During the year, Berkshire's net worth increased by $1.5 billion....

In 1993, Berkshire Hathaway bought Dexter Shoe:
....we promptly jumped at the chance last year to acquire Dexter Shoe of Dexter, Maine, which manufactures popular-priced men's and women's shoes. Dexter, I can assure you, needs no fixing: It is one of the
best-managed companies Charlie and I have seen in our business lifetimes.

Harold Alfond, who started working in a shoe factory at 25 cents an hour when he was 20, founded Dexter in 1956 with $10,000 of capital. He was joined in 1958 by Peter Lunder, his nephew. The two of them have since built a business that now produces over 7.5 million pairs of shoes annually, most of them made in Maine and the balance in Puerto Rico. As you probably know, the domestic shoe industry is generally thought to be unable to compete with imports from low-wage countries. But someone forgot to tell this to the ingenious managements of Dexter and H. H.
Brown and to their skilled labor forces, which together make the U.S. plants of both companies highly competitive against all comers.

Dexter's business includes 77 retail outlets, located primarily in the Northeast. The company is also a major
manufacturer of golf shoes, producing about 15% of U.S. output. Its bread and butter, though, is the manufacture of traditional shoes for traditional retailers, a job at which it excels: Last year both Nordstrom and J.C. Penney bestowed special awards upon Dexter for its performance as a supplier during 1992.
This is also an interesting tidbit from Buffett on Dexter's founders, both for the value it provides business owners in thinking about how they will one day exit their businesses, and as an example of why owning Berkshire Hathaway stock has been a wise investment:
Though they owned a business jewel, we believe that Harold and Peter (who were not interested in cash) made a sound decision in exchanging their Dexter stock for shares of Berkshire. What they did, in effect, was trade a 100% interest in a single terrific business for a smaller interest in a large group of terrific businesses. They incurred no tax on this exchange and now own a security that can be easily used for charitable or personal gifts, or that can be
converted to cash in amounts, and at times, of their own choosing. Should members of their families desire to, they can pursue varying financial paths without running into the complications that often arise when assets are oncentrated in a private business.

For tax and other reasons, private companies also often find it difficult to diversify outside their industries. Berkshire,
in contrast, can diversify with ease. So in shifting their ownership to Berkshire, Dexter's shareholders solved a
reinvestment problem. Moreover, though Harold and Peter now have non-controlling shares in Berkshire, rather than controlling shares in Dexter, they know they will be treated as partners and that we will follow owner-oriented practices. If they elect to retain their Berkshire shares, their investment result from the merger date forward will exactly parallel my own result. Since I have a huge percentage of my net worth committed for life to Berkshire shares - and since the company will issue me neither restricted shares nor stock options - my gain-loss equation will
always match that of all other owners.
Interesting note on taxes:
Directly and indirectly, Berkshire's 1993 federal income tax payments will be about 1/2 of 1% of the total paid last year by all American corporations.
One of the toughest thing for me to learn in my past zeal to dabble in trading individual stocks is the reason that buy-and-hold is so smart (besides the fact that it makes sense to be patient and wait for the gains to happen)---taxes:
....tax-paying investors will realize a far, far greater sum from a single investment that compounds internally at a given rate than from a succession of investments compounding at the same rate.
This passage about Coca-Cola is another salute to the long-term investing view:
Earlier I mentioned the financial results that could have been achieved by investing $40 in The Coca-Cola Co. in 1919. In 1938, more than 50 years after the introduction of Coke, and long after
the drink was firmly established as an American icon, Fortune did an excellent story on the company. In the second paragraph the writer reported: "Several times every year a weighty and serious investor looks long and with profound respect at Coca-Cola's record, but comes regretfully to the conclusion that he is looking too late. The specters of saturation and competition rise before him."

Yes, competition there was in 1938 and in 1993 as well. But it's worth noting that in 1938 The Coca-Cola Co. sold 207 million cases of soft drinks (if its gallonage then is converted into the 192-ounce cases used for measurement today) and in 1993 it sold about 10.7 billion cases, a 50-fold increase in physical volume from a company that in 1938 was already dominant in its very major industry. Nor was the party over in 1938 for an investor: Though the $40 invested in 1919 in one share had (with dividends reinvested) turned into $3,277 by the end of 1938, a fresh $40 then invested in Coca-Cola stock would have grown to $25,000 by yearend 1993.

I can't resist one more quote from that 1938 Fortune story: "It would be hard to name any company comparable in size to Coca-Cola and selling, as Coca-Cola does, an unchanged product that can point to a ten-year record anything like Coca-Cola's." In the 55 years that have since passed, Coke's product line has broadened somewhat, but it's remarkable how well that description still fits.
Finally, Buffett's thoughts on diversity for diversity's sake, something he's not a fan of:
....if you are a know-something investor, able to understand business economics and to find five to ten sensibly-priced companies that possess important long-term competitive advantages, conventional diversification makes no sense for you. It is apt simply to hurt your results and increase your risk. I cannot understand why an investor of that sort elects to put money into a business that is his 20th favorite rather than simply adding that money to his top choices - the businesses he understands best and that present the least risk, along with the greatest profit
potential. In the words of the prophet Mae West: "Too much of a good thing can be wonderful." Posted by: Justin McHenry      Read more     Source

Thu, 12 Apr 2007 23:34:39 GMT

Black Edition AMG CLK63 Sets The New York Stage ‘Ablaze’

Its the year of 40th Anniversaries for many superlative products in the Auto Arena. Ford forty years of its Shelby Cobra Mustang at the New York fest but they are not the only one celebrating this milestone as Mercedes-Benz also 40th birthday of its AMG in-haus performance specialists at the same venue.


As a toast to the achievement Mercedes released an on road spec version of its F1 safety car with the dubbing, Black Edition AMG CLK63. The naming scheme does have the word black at the beginning but, the way this car was introduced in New York, it lit up the darkest of the city corners.

Gone were the light bars and the F1 stickers from the Safety car and the resultant; a street legal sedan powered by a 6.3 liter V8 engine producing 500 horses which does 0-60 mph in 4.1 seconds with an overall 186 mph .

The standout part about this car is its carbon fiber flares which enclose 19-inch forged aluminum wheels that have inbuilt compound brake rotors measuring 14.2 inches in front and 13 inches in the back thus ensuring ASR traction control and ESP stability control in a thorough manner .

The ventilation part has also been nicely taken care off as there are additional vents in the front fascia alongwith fenders that help sustain airflow for cooling and downforce and the restricted slip differential at the back also has its own oil-cooler with a thermostatically controlled fan.


The chassis has an adjustable suspension allowing the driver to control the cars’ ride altitude. The driver can also control the compression and ricochet features of the shock absorbers electronically.

Looking at this car walk the beat at the F1 circuit I never thought it had so much of hidden potential, it surely has a different beast under the hood but even then the basis is the same; Good job Mercedes! that is the way to make a pick.

ImagWinding Road Posted by: Atul      Read more     Source

Wed, 11 Apr 2007 22:36:36 GMT

Justin Timberlake Has No Bitter Feelings for Ex Girlfriend

Although singer Justin Timberlake split with his four year long girl friend Cameron Diaz earlier this year, the singer has got no bitter feelings, but kind words for his ex.

Asked to comment on the split by British GQ, Timberlake, 26, said,

It’s hard for me to talk about because we’re talking about a person that I love and respect. If I hear anyone say anything bad about Cameron then I’ll have something to say to them.

Timberlake who is known for not badmouthing anybody respects his ex a lot. Talking about his ex-flame Britney Spears, Timberlake says,

Honestly, I am so far removed from that situation.

About the rumor that Timberlake sent a veiled message to Spears while accepting a Brit Award for best international male solo artist in February, the singer is zapped. At the awards ceremony Timberlake told the crowd, Stop drinking! You know who you are. I’m speaking to you. You are going to get sloppy, which many tabloids suggested was a reference to Britney who checked in rehab the next month. However Timberlake clarifies that he doesnt know anything about it and shakes his head in disbelief.

Timberlake is midway through his FutureSex/LoveShow tour, which wraps up in China in September, and stars in Black Snake Moan with Christina Ricci and Samuel L. Jackson, currently in theaters.

Via Posted by: Nishtha      Read more     Source

Wed, 11 Apr 2007 14:53:52 GMT

Halle Berry to Mow Her Mane

After Britney, its Halle Berry whos reaching for the clippers. The beautiful actress is all set to shave her lovely locks for a film role in the romantic comedy currently titled Nappily Ever After.

Berry is playing the character of a woman who decides to go for the sharp crop after her hair starts falling out. Berrys character then learns to cope with peoples perceptions of her and the way in which her hair shaped who she was.

Berry was quote dsaying,

I’m going to shave my head bald. I can’t believe it,” she told reporters on Wednesday. I still struggle with this hair issue. I’m going to get the lesson on film, and hopefully other women will get it, too.

The former Bond babe plans to bring to clip her live for the shot, instead of faking it with a cap. Her fans will be able to catch the bald look only after an year on the silver screen, as the new draft for Nappily has just been completed.

Via Posted by: Nishtha      Read more     Source

Wed, 11 Apr 2007 08:44:34 GMT

Pulsatilla vulgaris var. rubra

BPotD is in brief entry mode on weekends and holidays from April through September. – Daniel

A nod of gratitude to Meighan aka Meighan@Flickr for today's image (original | BPotD Flickr Group Pool). Much appreciated!

There seems to be some disagreement as to whether this should be considered a botanical or cultivated variety (i.e., variety rubra vs. 'Rubra'). I've opted to follow the Royal Horticultural Society convention.

Read more about the European pasque flower via the Kemper Center for Home Gardening. The RHS also has an article on the species. Posted by: Daniel Mosquin      Read more     Source

April 10, 2007, 7:49 PM CT

Afghans favor and understand democracy

An overwhelming majority of Afghans favor democratic government and demonstrate a surprisingly sophisticated understanding of democracy, according to a new analysis by UC Irvine political scientist Russell Dalton. Violence and instability in certain regions, however, remain a significant threat to democracy's development.

Dalton, who helped develop and analyze The Asia Foundation's 2006 survey of Afghans, a follow-up to a 2004 survey, finds that 84 percent of Afghans think that democracy is the best form of government, and the same percentage define democracy in terms of political rights such as freedom and government by the people.

"The strength of support for democracy and the richness of the Afghans' understanding of democratic concepts are stunning," said Dalton, professor of political science and a faculty member in UCI's Center for the Study of Democracy.

Support of democracy is stronger in Afghanistan than in Pakistan, Iran, Iraq or Indonesia, according to Dalton, and Afghans' support is relatively uniform across social groups like Pashtuns, Tajiks, Uzbeks and Hazaras.

"We want democracy to bring peace in our country and to rebuild the country," said one Tajik male in Jalalabad who was interviewed in the course of the research.

However, Dalton's analysis shows that in some areas of the country, democratic principles may be undermined. Belief that political opinions can be freely expressed varies across regions, and Afghans in regions of conflict in the Southwest, near Kandahar, and the East, near Pakistan, have the greatest doubts about their ability to express themselves freely. These doubts can dangerously erode democratic participation, Dalton notes......... Posted by: Ethen      Read more         Source

April 9, 2007, 11:14 PM CT

Analysis of Black Bloggers in the Blogosphere

In the first scholarly research examining the role of black bloggers in the blogosphere, Brown University researcher Antoinette Pole assessed how bloggers of color use their medium for purposes related to politics. She found that black bloggers are, in fact, mobilizing readers to engage in political participation. Additionally, Pole found that black bloggers do not feel discriminated against or excluded by other bloggers. These findings are published in the International Journal of Technology, Knowledge and Society.

Among the top political blogs, Pole says blogging has primarily been undertaken by white men, coined by Chris Nolan as the "Big Boys Club." She says blacks comprise approximately less than 1 percent of political bloggers.

"Though they are less numerous, examining the role of minorities in the blogosphere is important if blogs are being used to engage in political discourse and discussion, and more importantly, political action that has real-world implications," Pole said. "Who has influence in the blogosphere and how bloggers are using this new medium to undertake political action merits study".

Based on in-depth interviews with 20 black bloggers conducted in November 2005, Pole's study found that 85 percent of respondents use their blogs to engage in political advocacy and to raise money for charitable causes. A majority of the bloggers said they encouraged their readers to vote or to register to vote; 40 percent of the bloggers asked their readers to contact elected officials; 35 percent suggested that their readers sign a petition or attend a rally, protest, or march. Several of the bloggers mentioned using their blogs to endorse candidates for office. Compared to other research examining blogging and political participation, black bloggers appear to be engaged in these online advocacy efforts and philanthropic endeavors to a greater degree than their white counterparts, according to the paper......... Posted by: Ethen      Read more         Source

April 3, 2007, 10:13 PM CT

The global carbon budget

Life as we know it, from the most basic microbes to our human neighbors, is carbon based. By investigating how carbon cycles through ecosystems, scientists can learn valuable information about food chains, nutrient cycling, and productivity. Because carbon dioxide is a greenhouse gas, with the ability to influence temperature, an accurate global carbon budget is needed to address climate change.

On Earth, carbon is continually cycling through terrestrial systems, inland waters, the ocean, and the atmosphere. Until little over a decade ago, when calculating the terrestrial component of the global carbon budget, inputs were limited to the ocean and the land. Because inland water bodies cover less than 1% of the Earths surface, it was assumed that their contribution was inconsequential.

This view was recently challenged in an Ecosystems paper highlighting the findings of a National Center for Ecological Assessment and Synthesis analysis. Carried out by a team of international scientists, including Institute of Ecosystem Studies Biogeochemist Dr. Jonathan J. Cole, the papers senior author, the group reveals that inland water bodies are important areas of terrestrial carbon transformation that deserve inclusion in global carbon cycle assessments.

While rivers were introduced into global carbon budget assessments in the late 90s, Cole and colleagues argue that current models are limited by a narrow definition of how rivers transport carbon. By depicting rivers as "pipes" that passively deliver terrestrial carbon to the sea, models fail to capture the complex transformations that occur on the journey toward the ocean. The fact is, according to the authors, that half of the terrestrial carbon entering inland waters is destined for a fate outside of the oceans salty shores......... Posted by: Ethen      Read more         Source

April 2, 2007, 10:06 PM CT

Supreme Court case on carbon dioxide emissions

Four faculty members from The University of Arizona in Tucson were part of an amicus curiae brief supporting the plaintiff in today's historic U.S. Supreme Court decision on carbon dioxide emissions and climate change.

In the case, Commonwealth of Massachusetts, et al. v. U.S. Environmental Protection Agency, several states sued the EPA for failure to regulate carbon dioxide emissions from motor vehicles as required by the Clean Air Act.

Today the court decided in favor of Massachusetts, et al.

"This ruling is a victory for climate science," said UA ecologist Scott Saleska, the scientist who organized the scientists' collaboration on the brief. "EPA ignored what is perhaps the most important finding in climate science in the last decade, which is that the rise of global temperature and the anthropogenic increase in atmospheric CO2 are causally linked.

"The opening paragraph of the Court majority opinion cited that specific scientific finding".

UA scientists were leaders in the climate scientists' amicus curiae brief in support of the plaintiff. Scott Saleska, a UA assistant professor of ecology and evolutionary biology, organized the group of climate scientists to file the brief. Kirsten Engel, a UA professor of law, was one of only four lawyers on the amicus brief......... Posted by: Ethen      Read more         Source