In our previous Build Your Biz post we gave an overview of the way that currency markets operate and explained the importance of foreign exchange rates to many small business owners in today’s global economy. Now let’s take an in-depth look at some of the specific ways that exchange rates can affect your business and …
Oct
05
Sep
29
Exchange Rates – Part 1
As the world becomes increasingly interconnected through the forces of globalization and the march of technology, the role of the small business owner has changed dramatically. Once upon a time, most small businesses were essentially local businesses, producing goods and services for, and acquiring supplies from, a network of customers and vendors that were located …
Sep
01
How much should we produce?
In our recent series on supply and demand, we concluded by advising small business owners to pay close attention to what happens to their profitability when they change either the amount of goods produced or the prices charged. We are now going to expand on this advice by taking an in-depth look at how a …
Aug
18
Supply & Demand Part 2
In the first of our two-part post on supply and demand, we looked at the relationships that supply and demand have to the price of goods, and we defined the concept of elasticity. Now let’s move on to see how supply and demand interact in order to create the prices for all of the goods …
Aug
11
Supply & Demand
At the end of our last post, we discussed some of the factors affecting supply and demand in the commodities markets. Supply and demand, of course, are not unique to the world of commodities; in fact, they are the forces that shape the market for all goods and services. As such, it makes sense for …
Aug
03
Compound Interest – Working for you
Back in our inaugural Build Your Biz post, we had a look at the way interest rates are set by central banks and the effects that rates have on entrepreneurs who need to borrow money to launch or support their businesses. Now we want to take a look at how rates affect those who are …
Jul
28
Commodities Primer
In our recently concluded two-part post on inflation, we examined the concept of inflation and explored its effects on small-business owners. We’re now going to take a look at a special class of goods, commodities, which have experienced a great deal of inflation recently. It is helpful to begin with a definition and an explanation …
Jul
21
Inflation – Friend or Foe? Part 2
In the first of our two-part post on inflation we came to the conclusion that a low and steady rate of inflation, roughly in the neighborhood of 2-3% annually, is preferable to the alternatives of deflation or hyperinflation. Central banks the world over tend to agree with our conclusion and thus seek to ensure that …
Jul
14
Inflation – Friend or Foe?
In our previous Build Your Biz post we examined how and why interest rates are set by a country’s central bank, as well as the importance to small business owners of the level and direction of rates. At the time, we mentioned that one of the goals of a central bank’s interest rate policy is …
Jun
03
Interest Rate Fundamentals
As a small business owner, at some point in time you may require additional funding in order to help grow or diversify your operations. If you find yourself in this situation, then you might consider approaching a bank or other financial institution about a small-business loan. If the bank agrees to lend you some money, …
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