Business Principles - Cherif Medawar

Whether you are working as an executive in a company, own your own business or are an active investor or stock market you must have some solid business principles and strategies to grow.

Start by defining what is it you are trying to accomplish with any of your business endeavors.

In my businesses I seek to add value to others and achieving profits by either:

1) Safe, steady cash flow with liquidity (like my commercial real estate investments or my discounted cash flow notes where the steady income is the key)

Or

2) Safe, high margins of profit with velocity (like the MIGSIF fund and selling the notes to investors where the buying, fixing and turn around and re-selling is the key)

To grow your business properly without losing control you must follow four steps:

First, create a good system that produces the desired results consistent with the right people in place.

Then automate the process of production to step back and keep the momentum going.

The third step is to scale the business model by increasing sales and this happens by either adding customers, increasing prices (bringing more margins of profit), or increasing the frequency of sales (adding velocity).

One the above is achieved, the fourth and final stage is to sell the business by cashing out, merging with another company, or going public, or raising money for the up and running business (less risk), etc.

The same principles apply to the stock market trading, commercial real estate investing as well as management and business practices.