What is Market Intelligence and how can fintalent help you hire the best Market Intelligence Consultants?
Market intelligence is a phrase that can be applied to many different aspects of finance. Generally speaking, it refers to the process of synthesizing and analyzing data in order to predict how an asset will perform with regards to its value. Market intelligence, as applied to the stock market, might involve analysts surveying opinions and sentiment with regards to a company’s future performance and then hedging their bets accordingly, or it could refer more generally towards investors trying to predict where the market is headed next. It can also refer towards predicting whether or not an asset will go up or down in value.
In a nutshell, market intelligence involves gathering and analyzing data and information that may not be readily available in order to make wise and informed investment decisions. Fintalent, the hiring and collaboration platform for tier-1 Strategy and M&A professionals has a large pool of market intelligence consultants available for hire. Fintalent’s consultants have varied experience across diverse areas of finance including data analytics, research and other complementary areas of knowledge such as business analysis. Fintalent’s consultants are readily available for hire.
The term “market intelligence” is used in different ways by different people. For example, one might use it to refer to the process of conducting research in order to predict how a particular stock will perform in the future. Another might use it referring to the act of utilizing technical analysis to predict outcomes of various asset classes. Yet another person might speak about market intelligence as having to do with fundamentally analyzing an asset class over time, or coming up with an unbiased opinion on whether or not a particular company’s products are worth investing in. Another would speak about market intelligence referring towards anticipating trends before they become apparent through social media, news reports, financial blogs and other sources.
Analyzing the Market: The History of Market Intelligence
According to Wikipedia, “Market intelligence is a method of forecasting and predicting, which forms part of quantitative analysis.” In other words, market intelligence can be used as a way to analyze different asset classes and predict how they will perform. In terms of history, it can be traced back as far as 1949 with the publication of The Intelligent Investor , a book by Benjamin Graham . But market intelligence has been studied and practiced for much longer than that.
The first known study of market intelligence was conducted by the investment firm of Benjamin Graham and David Dodd , who were interviewed by Charles Henry in 1949. In his article, The First and Second Thoughts on Market Intelligence , Charles Henry explains: “We have come to the conclusion that the best preparation for markets is to be engaged in them.” He goes on to explain that when engaged in markets, you’re constantly evaluating different asset classes with regards to their value, and that this process has been going on for centuries.
Uses of Market Intelligence
1) Planning Business Objectives. The first thing that all companies should do is to set some business objectives on what they want to achieve for that year or even multiyear. When setting business objectives, it’s good to include what your team expects out of certain areas of your business.
There are usually three key business objectives that many companies have. These are sales, earnings per share, and return on equity. Each company has their own way to measure these metrics but nevertheless they are crucial business objectives that can be set for your company.
2) Sales Forecasting. Sales forecasting is the way to track sales activity at a specific company or group of companies in order to prepare for the future period. This step is very important because this will make sure that there is enough inventory to meet consumer demand. Forecasting is usually done by sales, operations, and marketing teams.
Sales forecasting would require you to look at historical sales data. This can be accomplished by pulling sales figures for operations, marketing, and sales department data. Demographical data of the company would also need to be reviewed in order to understand customer behavior or how they feel about the company. Another input that you will need is forecasts for future demand by looking at macroeconomic factors like GDP growth rates, inflation rate, unemployment rates; using this the company will determine the future demand of their product or service.
Sales forecasting can be helpful in cash-flow planning because it allow you to determine when money should come in so that it can work its way throughout your organization. Knowing this process will enable you to create a timeline of your cash flow as well as set priorities on what projects you should invest in first.
3) Estimating Competition. Competitive intelligence is very important for any company or business because it can help them forecast the future and determine if their product or service offers is still valuable. Having competitive intelligence can also help you come up with better offers for customers. It is most effective when the competition has a certain product that they are offering that you know there is no competition, or that it’s already been saturated. If this happens then it’s simply a matter of waiting to phase them out and replace them with what your company offers using all of your resources.
Competitive Intelligence is used for various reasons, but the first thing is to determine the price of your product or service. This way you can compare it with your competitors and make sure that you are not overpricing your product/service. Through competitive intelligence it’s also possible to know if there is a certain client segment who offers specific needs that might be unmet by you or one of your competitors. Using this information allows for better pricing plans and marketing plans with the interest of these customers in mind.
Competitive intelligence can be done by many different sources, however most companies use public sources because they provide good insight into what their competitors are doing. For example, you can use a company’s financials by going through SEC filings, or its news releases to get a better understanding of how well the company is performing as well as any large movements in its stock price or volumes each day. In addition, you can use social media for competitive intelligence as well. By using platforms like Twitter and Facebook it’s easy to determine if their is any opinions being tweeted about the company from their clients.
4) Tracking Corporate Performance. This step allows you to see how a certain department or product is doing within the company. It is mostly used for internal use only but it can also be used for external companies who want to track certain metrics that your company may have produced.
The part that is the most important is the top line or sales revenue and bottom line or net income. You can also see if your company is doing well by reading through your business plan and how you predict certain revenue will grow each year.
5) Investing. This step allows you to invest in different companies which could be mutual funds, ETFs, or other investment vehicles. It’s important to make sure that you do this because your investments help determine your future and possibly your long-term goals and goals for your estate for retirement. If you don’t invest in the market then your money is stuck in your bank account and it will not grow over time; therefore, if you’re looking for a better return on your money then you need to get into the market. Some ways that mutual funds and ETFs can get into the market is by buying stock of companies who are listed on the stock exchange. Through this step it will also determine which sectors of the market should be invested in because at this point you know what sectors do well and which ones do not. The second way is by investing in stocks of companies who are not listed on the stock exchange, such as private companies and bank stocks. This allows you to invest in companies where you can make investments but won’t be affected by the market. Lastly, you can also invest in bonds and other fixed income assets like real estate and gold through this step. Investing allows your money to grow and if done correctly will give you a good return over time.
6) Budgeting. The first step is to determine your current financial position. This will include how much cash you have, the amount of debt you’re currently carrying, and how much you could potentially earn in the future. Making a budget will also help with your long-term planning by determining how much money is going to be given for expenses and savings each month. Once you have these numbers then you can create a monthly plan that will allow that money to be used for different things such as expenses or savings instead of being stuck in a bank account. This will also help with your long-term planning because from this point on you can’t go back and change your budget because you know how much money is going to be in each category.
7) Forecasting Cash Flows. This step allows you to determine the cash that is going into and out of the company. To do this, you will need to figure out how much money comes in from sales, client payments, and what is coming out such as payroll. The last part of forecast your cash flow is by looking at the budgets that were created before for both sales and expenses; it will show if there are any problems. If there are any expenses that need to be figured out then you can adjust your budget. If there are differences in the numbers then it will help with tracking down the cause of the problem.
8) Risk Assessment. The first step is to look at external risks which can come from customers, employees, suppliers, or even other stock holders. If you are looking into company mergers or acquisitions this would be an example of external risk. Next, you can look into internal risks which could cause problems within the company such as illness among employees or losing a key ingredient in your product. Lastly, physical risks come from natural disasters outside of the country that may occur and affect your company’s ability to function properly.
9) Business Due Diligence. This step is where you will analyze and review your company’s financial statements, balance sheet and other financial information. This information will help determine what the company’s risk exposure is to potential changes in economic conditions. You can also look into various aspects of your company such as nature of business, nature of the industry, and competition involving your company. This way you can make an informed decision about whether buying the business is worth it or not.
10) Investment Selection. Finally, this step is where you select which companies to invest in; this will include the stocks on your list. The key to investing is to not just invest in a company that has a great idea but to also diversify your portfolio. Diversification allows you to spread your investments across different sectors, industries, and geographies to reduce your overall risk. It’s important not to just buy stocks of one industry because if that industry has problems then you will be affected by it as well.
Why you need Fintalent’s Market Intelligence Experts
Market Intelligence aids companies by giving them the tools to make informed decisions that will help them reach their business objectives. In addition, it gives them a competitive advantage over their competition as they are able to predict fluctuations in the market before they happen. Market Intelligence when properly conducted by Market Intelligence experts helps investors in the sense that it can tell whether or not an investor should invest in a company. Using Market Intelligence to analyze a company’s financial statements could help determine if the value of the stock is high or low, and how to cash flow analysis will look like.
Fintalent enables firms take advantage of these vast possibilities possible with Market Intelligence as it provides a platform for both individuals and firms to hire vastly experienced Freelance Market Intelligence Consultants.