Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > Money, Finances, Stocks, Bonds, & Investments.

Money, Finances, Stocks, Bonds, & Investments. A discussion on Money, Finances, Stocks, Bonds, & Investments.

Philip Fisher's view on investing


Money, Finances, Stocks, Bonds, & Investments.

A discussion on Money, Finances, Stocks, Bonds, & Investments.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-04-2011, 10:51 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,569
Rep Power: 10
Steve has disabled reputation
Default Philip Fisher's view on investing

Investor Philip Fisher believed that one should not invest in a business simply because it produced above average sales growth. Sales growth was not the important figure to focus on. He felt the important figure to focus on was the company's ability to generate profits for the share holder.

You can have all the sales growth you want, but at the end of the day, if there isn't a corresponding growth in profits, the sales growth is for naught. It is far more important for a company to focus on maintaining and improving company profits.

Philip found that superior returns would not be produced from marginal companies. Such companies may produce profits during good economic times, but will see a rapid decline in their profits during an economic down turn.

Because of this, Philip sought out companies that had the lowest production costs of their industry. They also, not only needed to have the lowest production costs, but needed to have a focus on keeping such production costs low at all times. Such companies would produce high profit margins.

When a company has a low cost of production, it is better equipped to handle a down turn in the economy. As an economic down turn will put higher production cost companies out of business. As these competitors are knocked out of business, the company with the low cost of production will then be in a position to expand and grow as the economy picks up in its next cycle.

In order to be able to have a low cost of production, Philip felt a company would need to have a strong understanding of it's costs. It would need to have a break down of what each step of production cost the company. Then a company could apply it's resources to the products or services that provided it with the best return on it's investment.

Think about how these important points apply to your lawn care business. Are you keeping your operation costs low? Are you keeping an eye on where you are spending your money to know which services are the most profitable? Are you focusing on scaling up those services that bring you the best return for the dollars you invest?

Are you able to withstand an economic downturn because of your low overhead costs and are you then able to better position yourself for future growth, all while keeping your eye on your production costs to make sure they are in line and don't spiral out of control?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Benjamin Graham's two rules of investing. Steve Money, Finances, Stocks, Bonds, & Investments. 0 03-02-2011 03:11 AM
Ben Graham's three approaches to investing Steve Money, Finances, Stocks, Bonds, & Investments. 0 02-23-2011 08:30 PM
Benjamin Graham's view on investing Steve Money, Finances, Stocks, Bonds, & Investments. 0 02-20-2011 08:49 PM
Investing JR- Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions 8 03-23-2010 06:11 PM
Stock investing Steve General Business Discussions 6 11-20-2008 09:58 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
SCAG Tiger Cat DECK...
rower30
08-24-2013 10:07 AM
Yesterday 02:51 PM
by Sunpointair
12 4,903
John Deere 667a
acrajchel
08-30-2015 10:00 AM
Yesterday 11:06 AM
by Steve
4 99
Your 2015 summer review.
Steve
Yesterday 11:01 AM
Yesterday 11:01 AM
by Steve
0 31
Dane Scag
Steve
08-28-2015 12:29 PM
08-28-2015 12:29 PM
by Steve
0 83
24 and 50 acre cemetery...
grassmasterswilson
08-18-2015 10:09 AM
08-26-2015 02:42 PM
by Steve
13 560
Rookie business question...
WarriorLandscapingCAN
08-05-2015 05:20 PM
08-26-2015 02:33 PM
by Steve
3 413
How to clean an old...
rmccutchan
08-16-2015 05:23 PM
08-26-2015 02:31 PM
by Steve
9 431
how to make customers...
Bradcook21
05-27-2015 05:04 PM
08-26-2015 12:25 PM
by kslawn
19 3,774
Needing a website built
burtle
06-17-2015 09:02 AM
08-25-2015 11:31 AM
by acrajchel
9 2,486
Big mowing job
Bradcook21
07-30-2015 03:57 PM
08-25-2015 11:23 AM
by acrajchel
17 1,005
ZTR Review
Shark1611
05-31-2012 10:42 PM
08-25-2015 11:16 AM
by acrajchel
8 3,777
Hi Everyone
mmays29
08-25-2015 08:16 AM
08-25-2015 11:15 AM
by Steve
3 130
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
08-25-2015 11:08 AM
by acrajchel
11 1,206
Old Business New Owner
Toyman
06-17-2014 08:57 PM
08-25-2015 11:00 AM
by acrajchel
17 1,597
Hi everyone! We're new...
alltrades
08-22-2015 12:46 PM
08-24-2015 10:41 AM
by Steve
2 179
CAn I get some help with...
rootytalbot
08-11-2015 06:14 PM
08-24-2015 10:36 AM
by Steve
12 525
Hi
Wemowjunction
08-16-2015 08:45 PM
08-20-2015 01:46 PM
by Steve
11 423
Drive cable bad?
SGL1
08-10-2015 11:16 PM
08-20-2015 01:41 PM
by Steve
5 381
Hey there everyone
Cole8999
08-16-2015 04:42 PM
08-18-2015 04:35 PM
by Steve
3 263
Help with a truck
bdodson89
04-27-2015 08:15 PM
08-18-2015 11:47 AM
by rmccutchan
7 980
I need some aeration...
rootytalbot
08-14-2015 12:32 PM
08-18-2015 07:59 AM
by rootytalbot
7 404
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-17-2015 04:34 PM
by Steve
1,229 406,195
Whats wrong with this...
GreenWorx
07-28-2015 07:56 PM
08-16-2015 11:42 PM
by rmccutchan
3 605
What's your next...
Steve
05-15-2015 11:54 AM
08-16-2015 11:09 PM
by SC93
16 1,259
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
08-14-2015 11:08 PM
by scaypa
95 11,498
New Biz
kufnerins
08-14-2015 05:52 PM
08-14-2015 08:56 PM
by Steve
1 220
Chemical and Fertilizer...
rmccutchan
08-09-2015 10:36 PM
08-13-2015 11:11 PM
by rmccutchan
6 419
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
08-13-2015 02:10 PM
by rootytalbot
12 2,092
Hello all thinking about...
bernie
08-11-2015 04:28 PM
08-13-2015 10:33 AM
by Steve
8 380
Logo Help Font Color
LZLC
08-08-2015 09:26 PM
08-12-2015 03:50 PM
by Steve
4 359
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
08-12-2015 12:30 AM
by Jeff1
20 1,830
My new mower
Chilehead
08-08-2015 09:09 PM
08-11-2015 08:36 PM
by Chilehead
9 532
Thought this was a good...
Just for Cuts
08-06-2015 03:38 PM
08-11-2015 10:54 AM
by Steve
8 527
Plowing pricing
jcurr33
08-08-2015 04:58 PM
08-11-2015 10:51 AM
by Steve
6 483
Should I upgrade my back...
googus
08-07-2015 10:50 AM
08-11-2015 10:44 AM
by googus
7 451
Keeping it clean....
Wolf4dk
08-09-2015 11:31 PM
08-11-2015 06:34 AM
by Chilehead
7 376
I have been rude and...
biglee
06-15-2015 10:11 PM
08-10-2015 09:41 PM
by stallman419
12 2,764
Newbie Saying Hi.
LZLC
08-08-2015 09:22 PM
08-10-2015 11:20 AM
by Steve
1 267
How much do I charge to...
Chris Herrera
08-06-2015 09:30 PM
08-09-2015 11:31 AM
by biglee
2 411
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
08-07-2015 03:26 PM
by Steve
17 1,153
Best commercial contract...
sanlanct
08-04-2015 12:18 PM
08-06-2015 06:20 AM
by sanlanct
2 404
I came across this on a...
rootytalbot
08-02-2015 11:04 AM
08-05-2015 08:17 PM
by SC93
9 639
Help bidding a hedge...
hopolb33
08-02-2015 06:09 PM
08-05-2015 02:07 PM
by Steve
3 442
recycler toro 22"
rvezakis
08-03-2015 12:10 PM
08-04-2015 11:47 AM
by Steve
1 323
» Popular Tags
ad landscaping advertising aerocore applying bark billy goat brushcutter blowout bob villa bush collections contract help curb appeal services deliquentaccounts demonstration design door hangers edging employee problems equipment dealer equipment rental facebook flyers free advertising free lawn care growing a lawn care business hiring how to hydro increase customers landscape landscaping landscaping training lawn aeration lawn care lawn mowing marketing marketing secrets more customers business mr dave mulch new business ordinance past due per hour charge per hour service plowing pricing profit on employee roundup scag secrets to landscaping sell the vision seo shell shreaded solo solo backpack sprayer sq ft square foot swzt tree tree pics up sell employee walk behind web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:58 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 02:58 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy