Investing for Small Business Owners
January 31, 2012 | 
Author
As an investment professional specializing in managing investments for entrepreneurs and small business owners (SBOs) I am repeatedly confronted with several investing issues that specifically deal with these individuals. Because of their unique situation, several of these issues go overlooked by the business owners.
Too Much Risk
Entrepreneurs by definition like to take risks. This type-A behavior often spills over into their investment portfolios. The first mistake often made by the SBO or their advisor is they don’t consider the business as a piece of the portfolio. This is critical because the business is often the most precarious component of the portfolio.
Small businesses are heavily influenced by economic cycles, competition, and raw material inflation. The small business owner must look at their investment portfolio less as a growth vehicle and more as a vehicle for capital accumulation and preservation. By doing so the SBO has the option of using their portfolio for income generation during tough economic times. If the portfolio is only structured for growth they are very likely to lose a large portion of their net worth during poor economic times (as the stock market leads the economy by 6-12 months).
This brings me to the second reason SBOs assume too much risk. Many small business owners like to invest in the same industry as their business. At first glance this seems logical, as one can make a more informed decision regarding an investment decision if you know the industry. But once you start to include the business as a piece of portfolio you soon realize you are overweighed in that sector or industry. If their industry goes into a negative economic cycle the result is a drastic drop in the SBO’s net worth and available liquid assets. Investing in the same industry only compounds the problem. Instead SBOs should look to invest in counter cyclical industries as a component of their portfolio. Therefore during times of economic contraction in their sector their portfolio will be protected by growth in those inversely correlated investments.
Hold & Hope
Wall Street, just like Pavlov, has mastered the art of classically conditioning their subjects. In just about every advertisement you will see the worn mantra “buy and hold for the long-term”or “stocks always go up long-term”. But stocks always go up long-term right? This all depends on YOUR definition of long-term. As an example, the S&P-500 peaked in 1969. In 1982 the S&P-500 was at the same price! Can you afford 13 years of no investment gains in your portfolio?
The truth is that stocks (or bonds for that matter) are not always good investments. Just ask Warren Buffett; He’s holding over $40 Billion in cash because bargains are scarce. It all boils down to this: Wall Street can never be negative on stocks; if they were, they would have nothing to sell to the public.
Instead of buy and hold small business owners need to manage their investments just like their business: proactively.
Posted in idaho better business | 
Tags: Economic Contraction, Investment Decision, Liquid Assets | 
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Dr. Eric Schiffer and a Preview on His Impressive Performance as a Trusted Chiropractor
The name ‘Eric Schiffer’ has seemed to be the standard when it comes to exceptional chiropractic treatment. As a matter of fact, he has been considered as among the pioneers of modern methods used in this type of alternative body healing procedure. His numerous successful treatment services that cured a diverse array of body pain problems can be attributed to his extensive educational background, trainings, and work experiences. He has also been known as a professional chiropractor with the incomparable passion for excellence at all times.
Among the most promising chiropractic techniques used by Dr. Eric Schiffer are the Diversified Technique, Activator Methods, and Gonstead Technique. Diversified Technique is the most popularly used by reputable chiropractors because of its high-velocity but low-amplitude thrust involved. The main objective of this technique is to restore the proper movement as well as the alignment of spine and joint dysfunction. Activator Methods, on the other hand, are basically characterized by a mechanical force manual assisted (MFMA) instrument. These are generally classified as softer type of chiropractic technique. Meanwhile, the Gonstead Technique is one that primarily uses weight-bearing X-ray films to analyze the spine. This technique bases on five evaluative factors. These are the visualization, static palpation, motion palpation, instrumentation, and x-ray analysis.
In summary, the various chiropractic techniques are either intended for manual articular adjustive and manipulative procedures or manual non-articular manipulative procedures. Dr. Eric Schiffer specializes in both of these classifications of chiropractic treatment methods. Other than that, he has also been offering several non-manual techniques for the treatment. Some of these are the Electrical Modalities, Laser Therapy, Ultrasound and other Thermal Modalities, and Acupuncture. In special cases, Dr Schiffer also applies Neural Retraining Techniques to a patient. Adding to that are the guidelines he provides to the patient’s exercise and rehabilitation as well as nutritional counseling.
The excellent performances of Dr. Eric Schiffer have continued over the years of his productive services in the industry. Since his first practice of chiropractic treatment, he has never disappointed his patients on acquiring an overall health improvement, relief from body pain, and recovery from any type of body injury. His records have remained impressive despite the increasing demands of the patients for this service. Another good thing about him is that he never settled nor relied on the knowledge and skills he already possess. Instead, he has pursued continuous learning to seek for new and better approach on his treatment and to keep updated on the new technologies for chiropractic procedures.
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