Mitch Biggs

Top Rated Articles in last 12 Months

Best ArticlesThe Top 5 articles over the last 12 months that were read the most.

#1. Determining if you have a sellable business that will attract buyers

#2  Live within your means | The most important money lesson I have learned

#3.  Glenn Beck Espouses Faith, Hope and Charity

#4.  Offer to Purchase or Letter of Intent

#5.  How to Create a Direct Marketing Campaign and Perform Break Even Analysis

Hope you enjoy the reads. Appreciate any tweets you feel worthy. As always, comments welcomed.

Cheers

Mitch

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Filed Under Business Advice, Business Marketing, Business Valuations, Direct Mail, Editorial, Personal Finance, sell business | Leave a Comment

Warning! Bad Economic Trend Ahead

stimulusThere are two things that need to improve for the economic engine to really start to hum. Those things are real estate property values rising and more liquidity into the credit markets. Although we are technically no longer in an economic recession, many would agree that the engine is stuck in neutral. Let us take a look at where we are on these two important economic attributes.

This was certainly not the first recession we have experienced and unfortunately will not be the last downturn. The backbone of the US economy is the small business owner. The bell weather metric to assess investment in this important segment is the flow of money measured by commercial and industrial loans. After a period of steady growth since August 2010, it has hit an unexpected downturn that is a huge warning flag.
(See Chart).

After a hint of reaching the proverbial bottom in recent months, the housing market is flirting with yet another decline as inventories continue to rise. (See Chart). Companies have all but abandoned relocation packages that have effectively put the brakes on the talent pool. Homeowners are faced with difficult choices as they seek to grow their income and careers. What is the value of a FICO score? Is a 20% pay raise worth a damaged credit score? The American dream of home ownership has the unintended consequence to freeze talent.

Until we begin to see dramatic increases in the flow of money into the small business sector, there will not be meaningful acceleration in the Gross Domestic Product. Business owners have shown a reluctance to take risk in an environment where the cost of borrowing is extremely favorable. Likewise, the data suggests we are a long way from purging our housing market of toxic assets. Given that mortgage rates are at historical lows, the housing issue has more to do with consumer confidence than market value.

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Filed Under Business Advice, Editorial | 1 Comment

The Business Case For Network Marketing Industry Growth

equationNetwork marketing companies need two things to thrive. First they need a growing distributor base. Second they need demand for their product. The timing could not be more perfect for an explosion in home based businesses over the next decade. Renowned economist, Paul Zane Pilzer is on record predicting in 2006 that he believes the United States economy will create 10 million new millionaires by 2016. He further states that the fastest growing segments will be Health and Wellness and Network Marketing. He has uncanny accuracy. The Ernst and Young Entrepreneur of the Year Award for 2009 was awarded to Dallin Larsen. Mr Larsen is the CEO of a Nutritional Beverage network marketing company, MonaVie.
Distributor Base  The Baby Boomer Generation drives the economy. This cohort has shaped marketing strategy as well as the retail landscape. The leading edge of the baby boomer juggernaut is celebrating their 65th birthday every 8 seconds according to a recent article in USA Today.  The trailing edge will turn 65 in 2029.  Many of these 77 million members have been forced out of the workforce early, are finding it difficult to find employment, watched their retirement accounts evaporate and lost equity in their homes. They have social credibility, disposable income and a desire to work which is the perfect combination to drive up network marketing company enrollment rates. More importantly to network marketing companies, they still have bills to pay because they refuse to slow down and control expenses.

Amway certainly understands that it is a great opportunity to recruit more distributors and is actively promoting the benefits of becoming “An Amway Independent Business Owner.” Ironically, they are employing traditional marketing channels when they have built an empire touting the merits of word of mouth recommendations to friends and family.

Product Demand  There are direct and indirect product demands that will be driven by the baby boomers. This generation is all about dismissing old age. Boomers go to great lengths to look and feel younger. Cosmetic surgery, teeth whitening, joint relief and nutritional food stores continue to realize great growth trends. Couple that with a home based delivery system (indirect product demand) that pays distributors to be the spokesperson and baby boomers have the perfect marriage for driving network marketing growth.

The MLM Decade? I predict a shift away from traditional part time employment to home based business. Baby boomers will seek more control over their lives as the lure of company benefits has been vaporized by shareholders demanding strong earnings. Company loyalty is a thing of the past. Many baby boomers will engage their entrepreneurial spirit and drive yet another trend in marketing. Network marketing will satisfy the insatiable appetite for the aging boomers to stay in the game. Getting paid to market a product without the constraints of a traditional job will be very appealing to these reluctant retirees. After all, they are learning social networking from their kids, why not monetize it?

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