Finance Matters

Archive for July 2nd, 2010

No one knows for sure exactly what Google plans to do with its $700 million acquisition of flight search company ITA.

But whether a shiny new travel tool or a forray into online ticket sales is in the works, ITA should provide a big boost for Google, because the company is already in the travel business in a huge way.

Analysts at JP Morgan estimate that around 10% of Google’s search revenue comes from the travel revenue. That surprised us initially, but it makes sense: clicks that lead to the sales of airline tickets or extended hotel stays are incredibly valuable, and those are both things that many consumers are comfortable purchasing online.

The analysts figure that ITA’s technology could help refine Google’s travel results, allowing it to capture a bigger share of that market, even if the company doesn’t launch any radically new products.

That’s not to say that Google won’t. But this could turn into one of Google’s better buys either way.

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See Also:

• So, You’ve Sold Your Startup For Millions. What Should You Do Next?
• Meet The 24-Year-Old Who Just Sold A $70 Million Company To Google
• This Is What It’s Like When Google Buys Your Company

The enthusiasm ginned up for Tesla’s stock during its first day on the market has waned. After reaching almost $30, Tesla is fading fast. It’s down 32% from the high, as investors sell off.

This isn’t really a surprise. Jim Cramer recommended investors buy the stock at the IPO, let it rise, then sell it off. Tesla’s long term prospects are shaky at best.

The good news: If you bought Tesla stock when it first hit the market, you’re doing better than the broader market.

Follow the Chart Of The Day on Twitter: www.twitter.com/chartoftheday

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See Also:

• CHART OF THE DAY: The VC-Backed IPO Is Back, Baby!
• CHART OF THE DAY: iPhone Owners Download Twice As Many Paid Apps As Android Owners
• CHART OF THE DAY: Only 40% Of Web Ads Use Adobe Flash

We’re going to keep this short, because it was a quiet day, and you should be off your computer anyway.

First, the scoreboard:

Dow: -50
NASDAQ: -10
S&P 500: -4.5

Recap:

• There was very little news today following the release of the June jobs data, which was weak, like everyone expected. Markets headed lower in the early going.

• Factory orders also came in weaker than expected.

• At one point the major indices were down just over 1%. Then they ramped back. Then they fell going into the final moments of the day.

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Note: This post was originally published on OPEN Forum.

We hear a lot about the economy turning around — that businesses are enjoying an upswing.

Still, the glory days haven’t exactly returned for most businesses, which are still making cuts and whittling budgets down.

And even if your business is doing fine, it never hurts to be smart and trim costs where you can.

Fortunately, some cuts and changes don’t require a huge sacrifice. And who knows? You might find your business even gets more business out of paying less.

Curb your business travel — and cut costs where you can.

Meeting with long-distance clients is costly and it can be expendable for some businesses, but travel can also be the most beneficial expense for a business. Fortunately, modern technology can replicate the experience at a much lower cost.

All the way out in Big Sandy, Montana Kamut International, growers and distributors of Kamut Khorasan Wheat have made some significant cuts by using Skype for conducting international conference calls. “We use technology to the fullest to cut down on trips overseas to see our partners,” says Kamut International president and founder Bob Quinn. 

According to Kamut’s CEO Trevor Blyth, when committing to business travel, they try to be flexible with schedules and purchase the least expensive flights, even if it’s more challenging. “Most of the time we take public transportation instead of renting cars or taking taxis,” says Blyth. “We don’t stay in higher-end hotels when a Hampton Inn will do. These items save us thousands of dollars each year. Since we are in the organic/sustainable business these cost-savers help us keep things in perspective, and we feel a duty to live and work in a sustainable way.”

Get the most out of your headquarters.

Patty Tobin owns a fine jewelry shop in New York City, where the cost of running a business and living is not a trivial expense. Tobin makes it a point to negotiate with her landlord by freezing rent rates, asking for a month out of the year lease at no charge, and getting credits towards utility charges if they’re not included in rent. 

Within her shop she is mindful year-round of heat and air conditioning. “[I am] constantly checking with telephone and cable providers for better rates, too.” Better yet, cut out the landline and fax line — with Blackberry’s and iPhones, and everything compatible for email, who needs them?

Consider a la carte assistance vs. long-term contracts and hires.

Lisa Krohn runs a personal assisting and organizing company for businesses and entrepreneurs. She consults small companies and individuals, and teaches them to be more efficient, self-sufficient and to rely on themselves — all while increasing their self-esteem and integrity. “There is no badge of honor for working long hours if you aren’t efficient,” says Krohn. “I help them re-edit so they use their time better. I undo the multi-tasking because it’s actually very inefficient.”

Because companies of all sizes hire consultants, a one-person entrepreneur like Krohn is of little expense, as she’s paid by the hour. “I am affordable consulting and outsourcing without the ego,” says Krohn. “”I’m no-contract and no-lawyer. I just send in an invoice and we’re done.”

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See Also:

• The 5 Types Of Expenses You Shouldn’t Cut If You Want To Grow
• 5 Creative Ways To Cut Your Office Space Costs
• 6 Steps To Pricing Your Product Right

Google Music launching in the fall along with Android 3.0

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