What Are Market Trends, and What Do They do for You?
By knowing which way the wind is blowing, a sailor can make a few small adjustments to the rigging of his craft, and watch the ship turn and accelerate in a new direction. In a race or a battle, the ability to observe changes and act on them quickly marks the difference between victory and catastrophic defeat. In the world of private equity investing, keeping a weather eye on changing market trends serves the same function.
Beat Market Trends By Doing It Better
Markets go up and down; that’s the basic thing to understand, but what does it mean for your portfolio? There are at least two important ways that you can beat the market at its own game.
When the economy is booming, rather than getting on the same bandwagon as everyone else, smart investors keep their ears open. They listen for startups that have found a way to radically alter the economic landscape. We live in an age of such astonishing creative destruction wrought by the power of the internet that whole industries, like hotels and taxis, have already been changed forever. AirBnB and Uber are just two of the most widely-recognized of such disruptive brands. There are thousands more such opportunities, across every industry. Some industries are more ripe for change than others. Lately, it’s been sounding like healthcare and education are downright overripe. Investors who connect with imaginative entrepreneurs in these areas stand to fly past the larger market trends.
Even during a downward-trending economy, there are opportunities. Your portfolio companies can succeed and grow during a bear market. That’s especially true if the services they provide represent a significant cost savings for their clients. During a downturn, everyone is looking to tighten the belt a bit. Anyone who can make it more comfortable stands to earn a reward for it.
Do It Better By Reducing Scaling Costs
Boomsourcing helps portfolio companies buck market trends by letting them scale more affordably. We seamlessly integrate trained nearshore sales development representatives and back-office staff into our clients’ in-house teams. That means they can achieve more at far lower costs. Contact us today to empower your portfolio to reward their customers and boost your ROI!
