Guillermo’s Furniture Store, Essay Example

Every plan contains potential emergencies and problems that are unforeseen to even the most knowledgeable of business professionals.  Guillermo has projected many important potentially-beneficial opportunities to improve the profit margins that are currently decreasing because of the foreign company with advanced technology.  Should these opportunities become problematic from emergencies or unforeseen issues, it is important that Guillermo has a strong contingency plan to ensure that the company does not go under.

The first step in the contingency plan is that Guillermo must speak with a patent-lawyer regarding his patented finishing process that currently holds a market value within the industry.  Similar resources are available for other companies to do similar work, but Guillermo’s process is specific and detailed.  He must ensure that no company or individual is able to use this process without his permission, or without supplying him with a fee for every time it is used.

Another viable option is for Guillermo to examine investment opportunities that he can engage in or that qualified investors can engage in with his company.  A major concern for Guillermo is that he does not sell the company or become stretched thin by purchasing other, smaller companies.  However, he may wish to invest a portion of his personal or business assets in the stock market in order to receive a higher return on his investments.  This is, of course, a gamble that could cost him some or all of his invested money.  Therefore, Guillermo may want to consider any private investors that are willing to invest in his company in exchange for a share in the company’s profits or an additional beneficial offer.  This may be difficult to find, but with the appropriate trustworthy individual, Guillermo will be able to have additional financial resources to help cover the costs of any unforeseen emergencies that could possibly arise for his company.

Finally, barring any major natural disaster or catastrophe, Guillermo must speak with an insurance company to insure the physical assets for his company.  Natural disasters occur almost every day, and they are very difficult to predict.  Should some unforeseen event take place in Sonora that would destroy equipment or resources for his company’s furniture production, Guillermo’s company should be insured to receive reparations for the emergency.

References

BrainMass.com. (n.d.). The Guillermo furniture store. Retrieved on October 11, 2009, from Web site: http://www.brainmass.com/homework-help/economics/finance/226625