Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Monday, 6 March 2017

Business Finance | Alternative Investments

Business Finance | Alternative Investments

In recent times the alternative investments markets have received more attention and publicity. There are realistic markets in Diamonds and Wines, Stamps and coins as well as Gold and other metals, Fine Art and Antiques and Classic Cars.

You can have an investment in Wines for example, have the broker store it for you and never actually lay eyes on it. If you are cold blooded about it and study the 'form' you can make money from these things. In a more casual way you can watch the TV programmes and see what excites you. if you are a collector by nature you will probably have an idea what your own collection is 'worth'. Always become knowledgeable before you step in and commit your savings. 

Thursday, 3 December 2009

Banks And The Clipboard

Apply a solution to something and Pareto’s 80/20 rule kicks in every time. In the world of ‘Business vs. The Banks’ - which is how many people see it - there are 2 things that are happening with banks that are not well realised.
I don’t like either of them. This is not a case of ‘take me back to the good old days’, though I am tempted to suggest we did not carve it up so badly then. As a business on one hand or a Bank manager on the other, you knew where you stood.
The point is that Banks have taken away most of the local discretions. There were reasons for doing so, some of which were brought on by the severing of the old trodden path of promotions that gave a manager an all round education in both handling people and handling business circumstances over a number of years. The tutelage of senior managers by example was part of the mix and usually the result was a manager who had been round the block, knew the Bank’s operations intimately and had had time to build his own skills in gauging business propositions for the Bank.
There are not that many managers left who came up through the ranks in this way. Those that are, tend to be in senior roles, and the majority of businesses are left far beneath them. Even for them the discretions are heavily managed from above. This means 2 things. It gives the Bank a stronger control over the lending book. Policies and Directives can be applied evenly and technology can be used to grade and report on track record to give a measure of risk. 
At the sharp end the business manager has to submit an application for approval to a lending centre often far away. The applications are processed and reviewed according to set measures by relatively junior officers before signing off by a senior lending officer. Neither has seen the customer, or been to the premises, or looked the business in the eye in any way at all.
So, as a business manager, with half an eye to protecting a reputation and building some kind of career, there is a disincentive to submit anything for approval that isn’t ‘watertight’. Despite having targets and other steering mechanisms to attend to, and the more junior the manager the less forgiving they are, he/she is disinclined from the start to put up anything that is not liked and does not possess a belt, braces and a safety chain.
Again there are good reasons for placing a note of caution centrally on such industries as construction, transport, retail, leisure and entertainment, but the caution sticker has branded everything in those less favoured sectors. The balance of risk and probabilities has been skewed too far. It is all very well for the Government to issue exhortations to the banks to lend more freely, and the Government’s loan guarantee scheme has a helpful place, but that overall cautionary inclination is paramount. The Banks can say they are open for business, they are lending and they welcome approaches. All of that is true, but the mechanisms that have developed do not support this in practice.
The local discretion has gone along with a need for much experience. And so too the inclination of the local manager to bother with anything that is not going to get a straight ‘approved, on the basis submitted’ has gone too. The clip board now rules and it is not particularly okay.
Blame Society generally. Blame Globalism. Blame the Economy. It’s why everything is controlled from a far away call centre who has no idea where you mean;  it is why services cannot cover the needs of locals. It’s why it isn’t worth complaining a lot of the time because ‘they’ don’t know what you are talking about. Local service is a luxury no one seems willing to provide because 80% of the time an overarching half baked gloss will do. But that is another topic.
For an informed view of your business banking and finances see www.bobshepherdassociates.co.uk

Monday, 28 September 2009

Changing Values

Harry Enfield did a wonderful take off Stafford Cripps wondering about inflation in one of his black and white parodies of early fifties public information films. After the ravages of war most working people were unaware of economics in those days as a subject, needing to focus their interest on their take home pay.
In 1952 Colin Brine was 15 and started work on the Railways at £1.17s.6d for a six day week. Teenagers hadn’t been invented and he had only essentials to spend his money on. He probably gave his Mum most of it for his ‘keep’, saved some and went to the cinema on Saturday evening. Translated to decimal currency that is around £1.87 a week. The nearest equivalent now is a 16 year old, below the age for minimum wage rates and earning £140 per week or £7280 per year.
Curiously though it doesn’t translate. Things have changed. The only way you might find a comparison is to examine wages and spending power. That can only be done with things that are available in both registers. So a pint of beer would have been about 2d, less than 1p. Minimum wage (47 hours a week then) was £5.8.1d (£5.42) a week. Presently it is about to go up to £5.80 per hour for ages over 22.
Roughly then wages are about 50 times what they were in 1952. The price of a pint of beer is not. Later in 1971 when decimal values for the pound were adopted, a gallon of petrol was 33p. At the time an average wage was about £15.00 per week. Trying to make comparison with today’s petrol price of around £5 per gallon and the present day average wage of about £450 per week makes no sense. Petrol was far more expensive then than it is now evidently.
The differences in life style, expectations and living arrangements generally make comparisons very difficult and hugely subjective. From the book that cited Colin Brine I read that the crossing keepers in Somerset who lived in the railway houses had two large cans of water delivered by one of the passing freight trains each day. They were not on mains water in the late 50s and early 60s. Until the late 1950s television was very limited and not common. My own in- laws were given a television in 1955 which sat in the corner for a year because they had no mains electricity. Refrigerators (‘Fridges’ in modern parlance) were only common from the 60s onwards. The history of every day private life is only recently coming of age as a study. We probably have the war to thank for that. The idea of enforced rationing and the notion of evacuating your children away to the countryside to spend 4 or 5 years away from you is fascinating for the television writers.
The Land Girls were largely unsung and just family tales from Grandma’s repertoire until it was noticed they were disappearing fast. Now they have a certificate signed by Gordon Brown and a badge to wear. So the television is only reflecting a general resurgence in interest. All the retro programmes and interest in past re-enactments is an attempt to put it all in focus and give perspective. Was it all better then? Some of it was, most of it was not. The things that were better seem to be attitudes and work ethics. What is known as the Fabric of Society.
Why is it that once unassailable aspects of British society that earned world wide respect evidenced by emulation across the world no longer stand scrutiny and are subjected to howls of criticism from our own press and media? Recent attacks and criticism have been aimed at a dysfunctional education system, a ruined Royal Mail, an NHS that does a poor job in many cases, a police force that no longer can be trusted, bus companies that are not there to provide a service any more, railway companies that just can’t cope, banks and financial worlds that fall over, MPs that can't organise their expenses honourably, a farming industry dying and other national institutions that are on their knees, either through inefficiency and an inability to adapt to modern needs or as victims of political dogmas that have not seen the advantage of a commercial strength. The Newspapers themselves are dying on their feet and struggling to adapt old methods of income to new channels of news delivery.
It’s not just globalisation (for which we are in large part responsible) or the fault of one political party or another. Nor is it the dying flickers of a once unbelievably powerful empire that is now allowed criticism and vitriol from those with a particular angle of view to support. I don’t feel it is the old ‘uns complaining things aren’t what they used to be, much to the frustration and exasperation of the young. It might be a mixture of all these aspects and probably more besides.
The same changes in values allow the discrimination laws, health and safety, and any other sort of ‘Rights’ generally to be abused and mocked for the very clip board mentalities they promote, bringing even the standards that we thought were taken as read, into disrepute.
Any sort of fractionalised approach, in industry, education, transport, health, defence, has a short term gain and a long term loss of way. The answer is not to re – nationalise everything. I do think it is to encourage a positive view of what is good and not to drag everything down. The thought is not new. In the seventies we had an ‘I’m Backing Britain’ campaign for just the same reasons. It was good for morale if nothing else, and was not condemned out of hand.
Some positive views are needed, and the rest will slowly follow.
See Bob Shepherd Associates for a positive yet practical view of your business tempered with a realistic perspective.