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Why Wall Street Aren’t The Only ones That Profit From Creative Asset Management!

So ladies & gentlemen when you hear the term “MLM”,  (aka) Multi Level Marketing, what readily comes to mind?(Honestly!)

Granted, while I’ll readily admit that particular term is considered rather old school among today’s active network marketers!But still in all, are you one of those people that automatically associates the phrase “pyramid scheme”, with that particular term?

If you do, you’re certainly not alone! Or what about this one, ever heard the term “LBO” or “Leveraged Buy Out?”

Yea, you don’t hear that fancy 80’s term thrown around much these days, due to it’s rather negative stigma! That was one of those 80’s investment terms, that got negatively associated with the so called “Decade Of Greed!”

That’s how some financial experts and analysis characterized the free wheeling investment era in the 80’s! And when you think of the height of the “LBO”, s frenzy, the name “Micheal Milken”, (aka) “The Junk Bond King”  is sort of synonymous, and will be forever be associated with that entire era of complete financial decadence!

So today’s, “LBO”s are now affectionately referred to as “PE’s” (aka) “Private Equity” funds!It does sort of have a much gentler flair to it, don’t you think?

Just like yesterday’s “MLM” distributor, is today’s power “Network Marketer!” The much maligned “MLM” industry badly needed an image makeover!So they strategically adjusted with the times!As did the power brokers on Wall Street!

Now let’s see what you and I can, (and should) learn from the fancy Wall Street crowd about consistently profiting from some rather creative asset management,shall we?

So What Exactly Can You And I Learn About Creative Asset Management From The Fancy Wall Street Crowd?

First of all, (ladies & gentlemen) I want you to understand up front, this post in no way, endorses any of what happened to literally millions of extremely hard working Americans, who may have unfortunately lost their jobs, pensions and or retirements, as a direct result of some of the negative impacts of “LBO”,s during the wild west investment banking days of the 80’s!

Now for those of you that may not totally understand, the bare bones minimum basics, of your typical LBO.

Here’s a really quick, shot gun crash course! 😎 Basically some rather savvy, (although), make no mistake about it, (profit driven) investors on Wall Street,set their sights on first purchasing and then quickly dismantling a business.

And they put up as little of their own liquid cash as possible!

And they borrow the balance from some extremely savvy Wall Street Investment bankers and purchase the business. Greatly overly simplified example!(Thus the term “Leveraged Buyout!”)

And then they immediately start dismantling the various assets of the business!Be they tangible and or intangible assets!And sell them as fast as they can and pocket any and all profit!

And by doing so, millions of unsuspecting hard working people, either had their hours severely cut or lost (both) their jobs, pensions and retirement benefits altogether!

Because of all the new debt these heavily leveraged companies were now legally liable for! And many of them were simply bankrupted in the process!And that’s “why” you don’t hear the term “LBO” used much these days, even though “PE” funds,(aka) Private Equity Funds) pretty much operate the exact same way! 😎

Wall Street Has It’s Creative Asset Management Strategies And So Do You And I!

Now let’s think of this “Leveraged Buyout” process, in a little more practical terms, and hopefully it will shed some light on what’s truly possible for you and I!

Let’s say there’s this really nice mansion for sale for $10,000,000 (ten million dollars.) And it’s tucked away in the country, away from all the noise of the fast paced city and it’s got 25 beautiful acres of really fertile land to go with the purchase, and some extremely marketable cattle and trees that can be used for firewood and other general building purposes etc.

And an extremely viable dairy farm.So let’s say a group of savvy investors, put up 10%, or one million dollars down of their own money and borrow the other 90%, or nine million dollars to purchase this mansion and other assets!

But they immediately put the mansion on the market and start selling the various assets, such as they sell the the 25 acres!They start chopping down and the trees, and sell them for firewood!

They immediately sell of the equipment and machinery of the dairy farm and put all the full and part time workers out of a job! They sell all the beautiful furniture and appliances in the house as well!

And that includes everything from antique paintings, to refrigerators and dressers etc!Hopefully, you get the idea about how this whole “LBO” process works now,right?

And basically by separating the mansions various assets up, piece by piece, they earn even more money! (That’s the general theory anyway!)

Now then, let’s talk about “how” any of this is relevant to you and I!

Think about “how” many extremely savvy marketers and or companies, large and small, completely forget about and or neglect altogether, their opportunities to take advantage of their, (built in) daily missed untapped sales revenue increasing opportunities!Huh?

For ex: “How” many times has the cable person come to your home, apartment/condo and or office, to do a brand new cable installation and or to do a  repair/service call?

And they do their job, hand you and I some document to sign, hand us our copy and leave!Say what?(That’s it?)

Entrepreneur You Can Either Count increased Revenue Or Missed Opportunities!(The Choice Is Yours!)

Strictly from a statistical stand point, since we’re already current established customers right? Why don’t they offer you and I, (at least) two of their best market tested prices on some type of additional upgraded premium service of some kind!

For ex; if it’s a guy customer they’re calling on, including a husband & wife customer!If they guy doesn’t already have, (either) the the standard yearly NFL, NBA and or MLB VIP package, at a hefty 40-60% savings for the next three years!

If they initially balk, then attempt to “down sell” them to maybe 40% off for just the first twelve months!

Entrepreneur, the very worst they can say is no!And the repair/installation rep is already there, so this particular sales call, cost the cable company nothing more!

And likewise for the lady customers they show to (either) repair and or install cable for. Why not offer them additional premium movie channels like “Showtime and or Cinemax” etc.

Or the ever popular “Lifetime Movie Network” package at a savings of 40- 60% off for the first three years! Plus throw in two free (PPV) Pay Per View events valued at X, just for taking advantage of this extremely “time sensitive offer” now!

Entrepreneur, just in case, it’s still not crystal clear, “what” specific creative asset management tool that’s being referred to here!

Basically it’s those virtually untapped and or non pursued sales opportunities, that literally tons of businesses have, that they rarely ever attempt to monetize!

We’ll discover a few more key ones in part two!But hopefully with this really simplistic example, you are beginning to appreciate a major creative asset management sales revenue generating opportunity, that’s being totally neglected and or ignored,by a major industry, that’s already incredibly successful!

So we’re not just talking about the small Mom & Pop outfits here! Don’t you agree? See you in part two!

Now as is customary during this part of our show.

Please share your extremely valuable comments (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!

As always, if you got any value out of this post, please Google Plus or tweet this.Thanks!

And be sure you grab your explosive free 22 step small business marketing idea kit series, because it will help you increase your profits by as much as 25% in the next 90 days or less.

And help you master your effective communication in marketing skills.(No matter what your particular niche market is.)It’s a $97 dollar value and it’s free!

2 Responses to Why Wall Street Aren’t The Only Ones That Profit From Creative Asset Management!
  1. I started a promotional products business online. Everyone told me that I was nuts and it would never work. Well it has. Today people do not want to be bothered with sales people coming into their office. My asset management was myself. I sold real estate for 25 years and the one thing I learned is service, service and more service. I now have a high repeat rate because it is unique today to get outstanding service. We were very busy today and I picked up one of the phone calls. Customer needed their order immediately. I got the information to the customer within 30 minutes and the response was, Wow now that is customer service. The customer said they would be placing another order. It is a simple concept and for my business it is working.
    Arleen recently posted…An Emerging Target Market: The Pet Industry!My Profile


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