The BSG Invitational is off and running for December 2013

The contestants have started entering decisions and already are in the forth round.

Some teams have already crashed and burned pretty hard.   Having a $10,000 dividend for the first round was certainly the mark of teams who were the most clueless.   Lots of teams are overbidding for celebrities I see, which is another rookie mistake that should have been learned before the Invitational.

Some teams are making a lot of good decisions too.   Just remember that being at the top of your industry group doesn’t mean that you’re in the best position for long term success, and many teams can be in 3rd or 4th place and be in the middle of a better long-term strategy for success at the end.

Many teams haven’t thought out their decisions for dividends, for example.   Making use of long-term debt is usually better to expand production and avoid running out of cash.   A high credit rating may seem prudent, but not if you can improve your long-term margins and profits above the cost of financing.  Net profits can pay down debt while getting a nice tax deduction and increasing leverage for a higher return on equity.