Learning Team Reflection Essay

Alan Litchman and Laura B. verify, Co-Presidents of Finagle a Bagel, bear a bagel dividing line in Boston (Parrino, Kidwell, Bates, 2012). Alan and Laura met in melody instruct and after gaining business experience in other industries they purchased the bagel business with the drift of growing it as much as possible. They seduce two primary marking markets 1) retail stores and 2) wholesale accounts with considerable institutions. In this paper, we will briefly discuss a few of the strategies they used to be intimate their running(a) detonating device letter. The owners of Finagle a Bagel were commonplace of piddleing for other people so they decided to buy wiz refreshing business. They have used several monetary concepts to manage the monetary accountability of their low-down business. They have controlled costs from the beginning of the puzzle out to the deli real of the mathematical product, as well as the administrative costs.Other items that have been highl ighted atomic number 18 the management of hard cash hightail it, payback, and the schedule of cash entries, which has allowed the company to pay its debts. They have complete a good relationship with the banks in order to negotiate the conviction trope for honorariums and rate. Suppliers are in any case a pick up supremacy positionor for the company, as the payment terms are negotiated to match the flow cash. The companys focus is to guard its financial management so that the business may grow and return large profits. The Finagle a Bagel also has a policy of recognizing the hard work of their employees. The owners believe that managers and employees are responsible for the success of the company. Together, the company is growing in a sustainable and financially healthy way. fit to Alan Litchman, when do any empowerment, first one has to regard what the demand for the new product is going to be, and what kind of product plunder be made with the new equipment (Parrin o, Kidwell, bates, 2012). on base his wife, Mr. Litchman explained how important it is to understand the companys performance and opportunities to better apply capital investment in the company. They both explained, in their own words, the importance of setting up strategies and planning before putting a new product on the market. The duet also spoke about debt. Laura Trust said that debt is a necessary fiendish and sometimes taking debt has its benefits if compared to finding capital through other means, such as pursuing a partner (Parrino, Kidwell, Bates, 2012). In this case they did not want to unsay a venture capital partner because the owners wanted to have authoritywhen making business decisions, thus parrying working for soulfulness else (Parrino, Kidwell, Bates, 2012). This shows that the owners prefer a business social organisation like a sole proprietorship. Lastly, the fact that interest rates have been displace for small business also support their decision to ta ke on debt to invest in the company. The couple is very improve when making business decisions, as they understand that even when a company has financial resources, the business gains more by obtaining financial resources from banks with small interest rates, while allowing the resources they have to generate dividends with higher interest rates.This is loosely called borrowing cheap money (Investopedia, 2014). Finally, faith is also discussed. They mentioned trade credit, which is the amount of time given to pay back vendors for the products bought. The longstanding the term, the better, as it allows time to receive gross before having to pay the debt. This is another very important recommendation on how to aright use cash flow and avoid taking on debt. Overall, Alan Litchman and Laura B. Trust take the stand a thorough understanding of how to manage their capital so that their small business continues to grow and increase their net profits, condescension economic challenges in the community and the country.ReferencesInvestopedia. (2014). bodacious Money. Retrieved from http//www.investopedia.com/terms/c/cheap-money.asp Parrino, R., Kidwell, D., Bates, T. (2012) Fundamentals of somatic Finance, (2nd Ed) John Wiley & Sons Inc.