Sterling Terrell

recovering economist

Random Thoughts – 3

Random Thoughts – 3

1. Can you list Evernote on your resume as a work skill?

2. Does anyone rent physical DVD’s still?  I mean Netflix is like 10 bucks. HBO now too, I suppose.

3. When I was 18, my dad said I should study engineering (like he did). I didn’t. Sixteen years later – I can think of no better undergraduate education.

4. Good grief, kids. Learn to shake someone’s hand properly. It feels like you have no self-confidence when it is all limp like that.

5. Is there anything better than a signed card from your two-year-old daughter on Father’s Day? Nope.

6. The music at the gym suddenly annoyed me for the first time ever this week. I hope that is not a sign of age.

7. Good grief True Detective is good.

8. The more I trade, the more I think trading involves no intellectual skill-set. It does require a psychological skill-set though.

9. People have got to stop complaining at work. Boss, peers, underlings, nobody wants to hear it. Pray about it. And then if something is still an issue, bring it up at review time in a professional manner. If you are still miserable after that, go look for a new job.

10. Sure wish I would have started a Commonplace book when I was 18. 16 years late is better than never though, I guess.

7 Tips to Make You Better at Business

7 Tips to Make You Better at Business

#1. Play Defense

Economy down? Balance sheet and income statement look bad? If your business is in trouble, the answer is working on increasing revenues while drastically cutting expenses. The stupid thing to do is frantically search for a new business or revenue stream.  Expanding your way out of a business problem can be done, but it is a fool’s errand most of the time.

#2.Trust People

Have trust issues? Get over it. Unless you are a one-man shop, you need to learn to delegate. And that requires learning to trust people. If you don’t trust who is reporting to you, fire them and hire someone you do trust. Simple as that.

#3. Take a New Look at Prices

Sell a bunch of different products? Try running an experiment.  Increase the price of a few of them by 10 percent. If the quantity sold of those items decreases by less than 10% – good job. Play with it if you wish. Some products and customers will be more or less price sensitive than others. Remember, the goal is to increase revenue, not sell more units.

#4. Save for The Future

Business going great, or even par? Start an emergency fund. More or less is fine, but trying to save 15 percent of after-tax profit is a good place to start. Put it in a separate checking account or money market fund and save it for a time when you need it. When times make a turn for the worse, few things can be more satisfying than having a huge cash cushion or buying out a supplier or competitor.

#5. Avoid Debt

Finance professors will argue about good debt vs. bad debt, the cost of capital, and alternative returns.  Do not listen.  Who cares if you can borrow it at 4 percent and reinvest it at 9 percent.  You may do that today, but it’s the uncertainty of the future that will kill you.  What is good for the individual is good for the company.  Good debt is no debt.

#6. Don’t Hire Friends and Family

Does your brother-in-law need work? Help him look for a job somewhere else. You don’t hire family because if who you hire is incompetent, lazy, or stupid, you want the ability to easily fire them. Try firing a family member. Life at home will never be the same again. The whole thing is not worth it.

#7. Avoid Burning Bridges

If you are in the business world (or anywhere else for that matter) do not burn bridges. Relationships matter.  Be professional at work.  Keep your mouth shut about your personal feelings and get over being petty.  I promise you, about 95% of the things you get worked up about are stupid. In short, grow up.

Sterling Terrell