Tag: market

Is the Small Business Optimism Index Really That Bad?

Posted by WFG – August 10, 2011

Small business optimism has dropped for the fifth straight month. And this time it’s fallen more than the previous three. But with the way things are, what did we expect, especially when almost everyone sees the future as a pit of doom and gloom.

To begin with, I’m not the most optimistic person in the world. In fact, I will often see things in a pessimistic light. But when I look to the recent news of small business optimism dropping, I don’t see problems ahead, I see companies doing what they’re supposed to do. And that shows us that small businesses will have more chance of survival.

When looking at the components, the small business owner is asked a number of questions. Do they plan to increase employment? Do they expect the economy to improve? And the chances are they will say no. The current economic climate is an unstable one, with debts hitting new highs and riots spreading like a rash.

But with the Index released, all of a sudden a wide number of media companies jump on the stats and reveal that small business owners are struggling and are close to extinction. When in reality, they are tightening their budgets and limiting their options so they survive. If they were to make the index look good in the next month, the chances are that most of the companies would make huge losses and create debt. Where is the sense in that?

The financial market might be temperamental at the moment. But that doesn’t mean everything is going down the pan. The Optimism Index even states that ‘the employment story is not a positive one’ because only 10 percent will plan to increase employment. Most will be waiting this period of uncertainty out until they feel a better time is ahead.

There are two types of small company that will survive this spell of ambiguity. Those with good managers, who planned ahead, cut costs and take a pessimistic approach for the long term future of the business. Or the companies that have a product/service that would sell even if an apocalypse struck our streets. Times might be bad, but the good small businesses will always survive, no matter what the Optimism Index suggests.

What’s Behind Recent Market Behaviours

Posted by Winflow – July 13, 2011

This quarter has been particularly volatile until markets made a recent sharp turn. In the last few days of the second quarter, according to the New York Times, the S&P index was only down 0.4 per cent.

Why has the market been so volatile?

There have been a number of dips in the market this quarter due to the following factors:

  • Deteriorating credit conditions in Europe.
  • Greece just narrowly avoiding default.
  • The Chinese economy has shown signs of cooling off.
  • Oil above $100 per barrel.
  • Unrest in the Middle East and North Africa.
    Read the rest of this article

Types of Investment Strategies

Posted by Winflow – July 7, 2011

An investment strategy is the plan of action an investor has for his investments based on personal goals, future financial needs and risk tolerance. Three well-known types of investment strategies include:

  • Income investing. Those who partake in income investing are typically more risk averse than others. This form of investing is the easiest to understand and ideal for those just trying to build an income. Many investors looking to retire will participate in income investing as it offers stable and high dividends. This investment strategy looks for well-established companies that don’t see a lot of fluctuation in their stocks.
  • Value investing. The strategy in value investing is to find stocks that have been under-valued by the market. This is a moderately risky form of investment because you have to wait until the market has corrected the stock value to make your money back. To determine a stock’s value, investors look at the price-to-earnings ratio. If there is a low price-to-earnings ratio the market will likely be unwilling to pay more for the stock. Make sure you don’t confuse an undervalued stock with and under-performing stock.
  • Growth investing. This investment strategy comes with the highest risks. Growth investing is when an investor purchases a stock that has potential for high growth. High growth often translates to high stock prices and high profits. Investors utilizing this strategy must also prepare for the possibility of young companies failing instead of growing.

Do you need assistance determining which investing strategy is best for your stock portfolio? If so, contact the Winflow Financial Group.

Institutional Investors

Posted by Winflow – July 7, 2011

Institutional investors are large corporations with considerable cash to invest. They move large amounts of shares and have a great deal of influence over the market. They are also subject to fewer protective regulations than non-institutional investors because they are thought to be more knowledgeable about the stock market and investment risks.

Many people benefit from institutional investors without realizing it. Institutional investors aren’t actually investing money they have raised themselves. They typically invest for other people. For example, anyone with a pension plan is utilizing an institutional investors expertise.

Types of institutional investors include:

  • Banks.
  • Insurance companies.
  • Finance companies.
  • Mutual funds.
  • Brokerages.
  • Hedge funds.
  • Investment advisors.
  • Union trusts.
  • Pension funds.
  • Labour union funds.
  • Endowment funds.
  • Commercial trusts.

Institutional investors typically play a huge role in trading activity including securities trading. How can this translate to improving your investments? Watching the investments that institutional investors make can be a good indicator of a company’s health and financial future. They hire analysts  and researchers to learn more about companies they intend to invest in. This gives them the ability to make a more educated decision than a non-institutional investor would be able to make. So, the next time you’re trying to determine what to invest your money in, take a look at what the institutional investors are doing.

Optimism Back in the Market

Posted by WFG – June 30, 2011

With the positive news coming from Greece, and copper on the rise, it seems that traders are looking into riskier assets. The financial sector may still hold a level of uncertainty but many are using the good news as a form of relief.

Hitting its highest point in two months, Copper traded at $9,330 on the London Metal Exchange, compared to closing at $9,320 on Wednesday. This was after it had reached a peak of $9,387.85 a tonne. Due to it being the last day of the quarter, many metal brokers are shifting their assets in a bid to flatter their balance sheets.

Boosted by this raise, other metals have also seen an increase. Zinc also hit its highest point since April at $2,317 a tonne and nickel also traded at $23,250, which is up from $23,075. But the end of the quarter isn’t the only reason for rising prices.

The Greek parliament has today approved the final privatization bills in connection with debt financing. This will allow Greece the time needed to pay of the money they own and stop the devastating default, which could have spiraled out of control.

Ensuring Home-Based Business Success

Posted by Winflow – June 21, 2011

There are literally millions of home-based businesses that start everyday. Working from home as an entrepreneur is appealing but if you jump into the home-based business world without any preparation you could find your small business struggling. If you’ve decided to start a home-based business make sure you have completed the following:

  • Set up a workspace separate from the craziness of the rest of the house. Even if you don’t have a separate room create a distinct separation between your personal space and your office space.
  • Make sure you have a market. Do your market research before deciding to start operating your small business. You will know what kind of demand there is for your product/services this way.
  • Get a separate phone line for your business. Your customers aren’t going to get a great impression of you business if your four-year-old answers the phone.
  • Invest in ergonomics. If you’re going to be working from home make sure you are comfortable. You will likely be spending a lot of time sitting in your home office.
  • It also smart to open a separate bank account so you aren’t mixing your business income with your personal finances.

For your small business needs, contact the Winflow Financial Group.

Determining the Competition

Posted by Winflow – June 14, 2011

Unless you have invented an entirely new product, chances are you are going to have some competition within your industry. Though this can be intimidating it doesn’t have to be bad thing. You can actually use your competitor’s prices and policies in your favour. To make the most out of your competition be sure to:

  • Research the competition. Know what their business is about, what products they have and what their prices and services are like. Then compare your business to theirs and see what you can improve on.
  • Capitalize on what makes your small business unique. After learning all there is to learn on the competition, determine how you differ from them and play it up. Use it as a marketing strategy against the competition.
  • Use your competition as a motivator and a learning tool. Grow your business by learning from your competition’s mistakes. Having competition is also a great incentive to grow your company.
  • Conduct market research to determine what your customers want. Don’t forget that you’re in a small business and may have the advantage when it comes to personal contact with customers.
  • Add new sales channels. If your competition is out-selling your business it is probably because they have more sales channels. If possible, open up an online store to appeal to a larger market.

For your small business needs, contact the Winflow Financial Group at 1.800.956.6897.

Small Business Marketing Mistakes

Posted by Winflow – June 14, 2011

When you first open a small business, determining successful marketing techniques can be a bit of a trial-and-error process. If you market properly you could see your sales increase, develop customer loyalty and increase your market. If you market incorrectly you could lose money, sales and harm your business reputation. Some common marketing mistakes include:

  • Ignoring the market research. Don’t sink all of your money into a product without testing it first to see if it sells. If the market research says there is no market for your product, it really doesn’t matter how much advertising you do.
  • Marketing only when sales are down. Successful marketing campaigns are ongoing and during this economic downturn it is important to attract new business.
  • Focusing on your services. You should be focusing on customer needs and wants in your marketing.
  • Marketing to everyone. It will cost too much for a start-up to market their products/services to everyone. Instead market to the audience that is more likely to be a paying customer.
  • Ignoring benchmarks. Other businesses in your industry have already determined the costs of a successful marketing campaign so look to them for marketing information.

If you need assistance determining the best marketing techniques for your small business, contact the Winflow Financial Group at 1.800.956.6897.

Retail Business Tips: Juggling Websites and Store Locations

Posted by Winflow – June 14, 2011

If you’re running a retail business from a website and a store location, there can be a lot to keep in mind. If you are having trouble juggling both methods of business, keep the following information in mind:

  • Make sure your store and your website are cohesive. There is nothing more confusing to a shopper than expecting one thing from an online premise and walking into a store that doesn’t meet any expectations. Make sure your site reflects the look and the feel of the store. This will make customers more comfortable when shopping by different methods.
  • Inventory availability is important. While it can be beneficial to offer certain products online or in-stores, it is best to offer the same products in both locations. This will cut down on customer confusion and frustration.
  • Prices should be consistent too. Just like a lack of inventory can frustrate customers, price differences can too. A product on your website should cost the same, minus shipping expenses, than a product in your store. Don’t mark up in-store products just because customers don’t have to pay for shipping.
  • Remember your market. Transitioning to online sales can take away a lot of that personal touch and leave you forgetting who your customers are. Stay focused on your audience and market your website to appeal to them.
  • Don’t just offer an online store. A website should feature information that can be ascertained by shopping online. This includes product details, washing instructions and return policies.

If you need advice about balancing your online and in-store responsibilities, call the Winflow Financial Group at

Trade Shows and your Small Business

Posted by Winflow – June 14, 2011

Though regarded as a thing of the past, tradeshows are making a comeback. Many small business owners believe the costs will be too great but leading experts are saying ateending tradeshows can be on the smartest things for your small business. This is because:  

  • Trade shows provide vaulable exposure for your small business. Even if you’re just attending, getting the company name out there can improve business.
  • Trade shows are great place to network. You can meet prospective clients, suppliers and manufacturers at trade shows.
  • Trade shows often offer demonstrations on the latest business technology. You can find the latest time-saving technologies to assist your business.
  • Trade shows are a good way to learn about your competition or your market.

Making Trade Shows Work for your Small Business

Tradeshows are all about taking advantage. You want to get the most you can out of your time there. Here are some tips for optimizing your time at trade shows.

  • Do some research ahead of time. Determine which tradeshow has the most to offer your small business. Make a plan of important events to attend.
  • If you are participating in a trade show, plan ahead. Make travel arrangements and back-up plans beforehand to ensure everything runs smoothly.
  • Offer to be a guest speaker if possible. You can get great exposure for your small business this way.
  • Write a pitch for your business ahead of time and ensure employees manning the booth have practiced it.

To learn more about the advantages of trade shows read this Wall Street Journal small business article.

For your small business needs, contact the Winflow Financial Group.