Sweet Amazonia

Archive for the ‘Business’ Category

A good idea must be shared with the world, otherwise it remains just an idea regardless of how good it was. There are two ways to share an idea. The first and most noble way is to give it away for free. The person who got the idea gets the fame and the gratitude of the people that benefited from it but not much else. However, there are ideas that need to be given away, especially ideas that affect the health or future of people. The second way to share the idea is to build a business around it. There is no harm in earning something from an idea, especially when work was done to bring it about. The key is to serve more over earning more. The formula is that serving more with less earnings is the same or greater than serving less but earning more.

In any case, a business requires financing. To bring an idea to a usable product requires work and materials, both of which requires, at least, Small Business Financing. Without Business Finance, an idea remains an idea and is practically wasted and this is sometimes the case for bright but poor people. Fortunately, Small Business Finance is a good source of working funds to, at least, get the business started.

Diversifying into new business lines can be financially dangerous even for large, successful corporations. The ideal way is to start up a new corporation under the larger one that deals with this new business. This protects the mother corporation from suffering financial problems from the start up corporation. In this way, the diversification project can fail or succeed without causing too many problems for the mother corporation. However, start up corporations takes time and effort to create. Money is lost, in terms of lost sales, as the corporation is being created. With a fast changing business world, money can be won or lost in a very short period of time.

Thus, good alternative to starting a corporation is to buy pre-existing Shelf Corporations to cover diversification needs. With all the necessary documentation already in place, a Shelf Corporation can be made active in a very short time, reducing wait time prior to engaging in business. Also, corporations such as this have existed for a period of time. This ages the corporation, bringing certain benefits to the table. These Aged Corporations have at least a credit benefit over start-up corporations. Also, these corporations are often offered at significant discounts over the cost of starting a new corporation.

Because public coffers are empty and leading-edge innovation is desirable, the private sector needs to take the front-line role in financing, building, and operating the information highway, but there are many differing views on where the business opportunities lie. In the nineteenth century, when railways were built across the North American continent, investors found that the most profitable aspects turned out not to be passengers (the population was too thin) but the millions of acres of real estate that went with the right- of-way. The information superhighway may be just like that. As Joel Birnbaum of Hewlett-Packard puts it: “In a gold rush there are two ways to get rich—digging for gold and supplying the infrastructure for the gold diggers.”
There are so vigorous debates regarding the nature of the highway. For example, will it be based on the telephone networks, cable systems, satellites, digital radio, or other transmission media? What will be the most important applications—business, education, entertainment, shopping, health care, interpersonal communications? What will be the economic model—that is, how will users pay for using the Net? And how can companies make money? Right now there appear to be more prophets than profits on the Net. What will be the structure of the I-Way—an open network of networks like the Internet, or some other model?
An emerging consensus is that more competition and less regulation are necessary to stimulate private-sector investment and innovation. In such a world, governments act as referees to safeguard the public interest rather than controllers of how technology will evolve. Perhaps the first inkling of this change came in 1984 with the government-ordered breakup of AT&T and the creation of the so-called Baby Bells. The resulting competition in the residential long-distance telephone market is widely credited with driving down costs, improving quality and stimulating innovation.
For example, in 1987 AT&T said it would take more than two decades to convert its network to superior digital technology. But the competitive pressure from companies such as MCI and Sprint forced AT&T to achieve the conversion in just four years. In the past decade American residential long-distance costs have dropped 50%.