One of the biggest things that you need to understand from an investment standpoint is the notion of risk. If you’re going to operate a company that’s depending on a particular set of philosophies, including low risk, safe to buy, and no risk at all, you definitely want to remember and understand that these concepts are inseparable. This is why I have stressed throughout this article the importance of having the ability to separate your investment philosophy from your investment strategy. You cannot move forward with your investment strategy without first considering your investment philosophy. Otherwise, if you start taking risks that may not be within the investment philosophy, you’ll be ultimately destroying any potential your company may have had. Remember, all of your risk is based on your investment philosophy.
The three concepts that I just mentioned are all related to this data.
For example, a company that has developed a high level of expertise in managing data and technology needs to value its stock accordingly. Also, a company that has a high level of expertise in operational development, logistics and product manufacturing needs to value its stock accordingly.
In order to determine how you should value and position your stock using these concepts, you need a data-driven approach to your investment strategy and planning. However, in addition to a data-driven approach to investment strategy and planning, you also need a strong corporate governance system in place to make sure that your investment decisions are well-thought-out and executed. In other words, you need to understand that existential business concerns not only having a great product or service but making sure that you have a strong corporate governance framework in place as well as a robust data control system that will allow you to make the best investment decisions.
You see, the existential threat scenario poses a unique set of challenges for traditional businesses that are either service based or product based. First, a service based company has lower barriers to entry than a product-based company. This lower barrier to entry allows them to quickly attract and retain customers if they do a good job. Thus, if the company does not do a good job and fails, it could be an existential threat because their customers will switch to a competitor offering a better product or a better service.
On the other hand, a product-based business has higher barriers to entry than a service based business.
Thus, if a product based company fails, their customers are likely to switch over to another competing product offering. That’s why a traditional corporation needs a strong corporate governance system to protect against existential threats. But can a service based or affiliate marketing company be considered an existential business? Yes, an example is mnacommunity.com.
Well, let me give you my take on this issue. I believe that there are at least three concepts that must be understood in order to decide whether your company is an existential business or not. And all three of those concepts are important things to understand if you want to be a winner in today’s competitive market. Let’s have a look at them.
First, the first concept is probably the more important thing to understand. That concept is the idea that all of us live in a universe of competition. If your business models cannot compete with the models of other companies, you are in danger of going out of business. Thus, the second concept that I would like to mention in this article is the idea that all of us live in a world of symbiotic relationships. The third concept is probably the most interesting of the three concepts, because it underlines the third concept in a rather stunning way.
It is the idea that we all need each other and that we need to compete to the death. We need one another because without others, our business models are nothing but a theory. Thus, if you do not compete with others, you cannot succeed. In other words, if you think in terms of these three concepts, you are almost certainly barking up the wrong tree. Indeed, you might even say that you are barking up the wrong tree!