It May Be Time To Hire

by J John Swanko

11/23/10 (People Port) We may not see this opportunity for another six years. Hire extra workers that will allow your top line expansion. The basis is the same Miami used during Mariel boatlift. Every firm benefited from that huge increase, eventually (see Mariel Boatlift Expanded Demand). Many firms today have done well. You survived without banks. You are exporting, expanding your markets overseas. This may be the time to put the projects you developed in the last decade to work.

I have recommended using dividends (see Are Companies Buying Back Stock Too Soon) instead of share buybacks to pump up stock. There are constraints. Those buying market share, innovation, are in position to do well. This would apply to small, mid-size firms, however, they normally would be already in the planning. Their constraint was capital. Today, they may be better off expanding sales.

Most share buybacks, takeovers, can limit hiring. Those firms with cash stuck overseas, may want to purchase foreign firms (please see:Congress Needs To Sober Up ). All firms looking still looking at increasing their share price, may do better paying a dividend, when market share, access is the reason for takeovers. buybacks.

There will always be that deal you remember, had you just paid that ridiculous price, you would be one or two in that market. Some firms have said that line so often, reports on it, explains the deal as great one for distribution of that firms acquired product. Recently, more than one was in the news. With that aftermath blurb, now. Some firms, takeover a firm, cut back the people, and that market share they bought shrinks instead of expanding. A good distribution network will expand those using the product, service. At one time, takeovers were sold as an opportunity to expand service, create jobs. How many firms can use that justification today.

This is the right time. Our Federal Reserve is trying to grow demand. Demand typically grows for this quarter and next. Tailwinds. If your firm managed to raise the cash, yet -you are immersed in a battle for market share. Pick a segment that will not appear on your competitor's radar. Serve it. Those firms need to hire stealthy -get that jump. You may have noticed I avoid the phrase, Stick to your knitting. Never liked it. A majority of firms may have done an obvious thing well. What drove them ahead was some not so obvious skill. A steel company produces steel, however, their competitive advantage is the way shaping steel into product, lowered final cost.

Hiring will expand demand overall, remember, there is a lag. The battle shaping up in Washington -Bring Obama Down!- will make your work, every American business a challenge. It is the planned massive downsizing of government (still talking about getting rid of Education Department, Dropped getting rid of Energy. EPA) that could stall future demand.

By hiring now, your firm will have the needed experience to deal with the future government downsizing. You may find reminding employees -often- your firms overall goal. That may help keep your profits from bouncing.

Orientation is used to focus the type of innovation, efficiencies you are looking to build out your top line.