Business Proposal: Thomas Money Service

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Business Proposal: Thomas Money Service

Alma Villalpando

Economics; ECO561

Alexander Heil

July 26, 2010

Thomas Money Service Inc.
Since the 1940’s TMS has been providing small loans to consumers. During that time TMS augmented its business to include the servicing of business loans, business acquisition financing, and commercial real estate loans. In 1946 TMS decided to finance forestry and construction equipment. The decision proved to be very profitable and resulted in TMS’s establishment of Future Growth Inc. (FGI). Consequently FGI also experienced an immense demand for equipment allowing FGI the capability to purchase its own equipment manufacturing company. This allowed FGI to sell, build, and finance its own equipment. For 67 years FGI’s business venture went well (UOP, 2010).

Currently FGI is faced with making various decisions due to the failing economy and several natural disasters that have occurred in various states. The sale of homes has also decreased. Much of the equipment is being repossessed by FGI, in turn FGI has decided to bundle it together and selling it at a discounted price. The purpose of this proposal is to provide business recommendations to Thomas Money Service Inc (TMS). In light of everything that is occurring in the economy TMS has requested recommendations addressing how TMS can increase revenue, its ideal production levels, maximizing profit through fixed and variable costs in addition to reducing costs. Recommendations

Increasing Revenue
Increasing revenue is the goal and continuous effort of any organization regardless of how the economy is doing but it is most important in a declining economy. Thinking and planning strategically will assist any business in increasing revenue. Due to all of the natural disasters that have occurred, it will be most beneficial if TMS places their focus mainly on the construction of new buildings. There is a need for hospital and nursing homes, with all the...
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