Posts Tagged ‘Entrepreneur’

The 5 Minute Business Plan

04/06/2011

If you’ve ever watched an episode of Shark Tank or witnessed a desperate business owner trying to pitch his product to a potential customer you may have observed something interesting: the guy or gal on the other side of the desk often knows within the first 15 seconds how the meeting’s going to end. It’s very much like a first date: It’s either an immediate  and absolute “No” or a gradual almost seductive narrative to a possible “Yes!”

The goal then is not to totally bore your audience in the first few minutes. Now although the dating example will have to wait for another time, in entrepreneurship its a dual-play between the entrepreneur and the actual business.

So let’s get started.

There are 10 things that every potential investor, buyer or associate wants to know. Everything else is commentary.

Follow the Rule of 10 / 20/ 30

  • 10 Slides – That’s all you need to get them hooked. All the rest is follow-up.
  • 20 Minutes – Ideally, the presentation should take 5-10 minutes, followed by Q&A.
  • 30 Point Font – If it doesn’t fit on the page, it doesn’t belong in your plan.

Forget special graphics (besides for a logo on your cover page), forget special background, and for heaven’s sake – leave out anything that moves.

The 5 Minute Business Plan

  1. The Team – Who are you (tell them) and why bother with it all? (Some VCs suggest putting this at the end. I say introduce yourself).
  2. The Story – How did you get to where you are and who did you drag with you? (Concise, to the point).
  3. The Problem – What’s so wrong with the market that you’re losing sleep over it?
  4. The Magic – Why you’re better than everything and everyone else out there?
  5. The Demand – How you can prove people actually want what your offering?
  6. The Money – How can you prove that people will actually pay for what you sell?
  7. The Attraction – How do you intend to let your ideal clients know you exist?
  8. The Exit – How long you plan on staying in before you get out?
  9. The Vision – What are the long-term growth options of your company?
  10. The Call to Action – What’s your next move and what do you need to make your millions?

Focus on each of these as if you had ONE chance to present them in front of the President of the United States, the Chairman of Microsoft, and the CEO of Goldman Sachs.

And remember, while great ideas come to us in our sleep, creating world-class businesses is something of another nature – focus, creativity and  persistence.

The True Worth of a College Education

06/14/2010

Before anything, I just want to make clear that I have nothing against academic knowledge. I think that Professors are great and they deal an enormous amount of good and positive inspiration for us all. What they teach however is something else altogether.

This past weekend, I found myself in conversation with a successful entrepreneur and business executive. She is the founder, owner and CEO of a highly successful T-shirt and apparel company. She designs, prints and embroiders hats and T-shirts for large world-class attractions such as Vegas, Universal Studios, Niagara Falls – that sort of thing.

The conversation was revolving around education, so I asked if she had a college degree. It turns out she majored in design, which pertains directly to her line of work, something very few graduates are able to boast.

However, she added that she did not gain her expertise in business from her college days, but from her first husband who was quite the entrepreneur and taught her everything about the T-shirt, apparel and screen business.

So I dug further and asked “And how did he get his start?”. She explained, how he had his MBA in business but most of his acumen he got from from his father who had a natural knack for money and business. He was an expert salesman and a master negotiator.

Hmm, I thought. She has a degree. He has a degree. But where did everyone really get their business sense? From the old-school learn-as-you-go real-deal world of entrepreneurial zeal and spirit.

So is college education all that it’s made out to be? Has it improved by moving further away from the academic literature and closer to the result-oriented – what works and what doesn’t? Is it worth the four long and boring years (much more for med school) and mortgaging the family farm? Maybe. But at the end of the day, you’re probably better off learning from someone who’s done it all before (except for Med school).

Your thoughts?

The Ultimate Investment – Yourself!

04/20/2010

How would you like to invest in yourself? How would you like to learn EVERYTHING about starting and succeeding in your own business? How would you like to skip the tenuous and length college MBA and focus instead on a 2 DAY intensive designed to teach you everything you NEED to know about entrepreneurship?

I will be attending this Dreaming Room, with E-Myth founder and author Michael E. Gerber and I’m inviting only 15 Dreamers to join me in this most amazing experience!

And best of all Michael is offering this unique and rare event on the East Coast (something he rarely does) and for only a fraction of its original price! This opportunity cannot be missed!

So What’s a Dreaming Room? The Dreaming Room is a 2-day “Entrepreneurial Incubator” with Michael E. Gerber himself, jam packed with the knowledge necessary for anyone who wishes to build the business they’ve always dreamed of or wish to dream of.

You will truly experience everything you’ve ever read about E-Myth and Entrepreneurship, and you will come to understand, in vivid, extreme and creative detail how to start the business you’ve always dreamed of.

You’ll get to know the 4 components of the Entrepreneur: 1) The Dreamer, who has a dream 2) The Thinker, who has a vision 3) The Storyteller, who has a purpose and 4) The Leader, who has a mission.

What Will You Learn In The Dreaming Room?

Such a predictable question.

I receive it every time someone is wrestling with the decision about whether or not to enroll in The Dreaming Room…whether they ask it or not!

I’ll wager you’re wrestling with that decision right now.

But, here’s the thing.

If you were buying a computer seminar, that question would be relevant.

If you were buying a cell phone seminar, that question could be answered, and should be.

If you were buying a sales training seminar, of course you would want to know that the course will provide you with the information you need to become more effective at sales.

All such events, what we’ll call training events, are designed to teach you operating skills.

Operating skills are work skills.

Work skills are those you use inside of your business to produce work results.

And therein lies the difference between The Dreaming Room and all training events.

Training Events are Right-Brained Events.  The Dreaming Room is a Left- Brained Event.

Right-Brained events teach you Work Skills.

Left-Brained events teach you Life Skills.

Right-Brained events teach you how to DO something.

Left-Brained events teach you how to SEE something.

DOING is a Right-Brained activity.

SEEING is a Left-Brained activity.

SEEING is what happens in The Dreaming Room.

It is an activity of your intuition.

It is Soul activity, not Brain activity.

It is about heightening your state of attention. Of presence.  Of imagination.  Of congruence.

SEEING is what Entrepreneurs do.

It is a completely different kind of DOING.

It is not about the DOING that technicians do.

It’s about the DOING that inventors do.

It happens inside of you, not outside of you.

Inside of you is where all the life-sourcing occurs.

It’s where all the magic lives.

It’s where all the energy resides.

It’s where the ideas come from.

The great ideas.  The powerful ideas.

The ideas that make life happen outside you.

The ideas that give birth to great companies.

*  *  * *

Toward that end, The Dreaming Room is designed to awaken the entrepreneur within you.  Not to make you more effective at working IN your business, but to make you more effective at working ON your business.

The entrepreneur is the one who creates the opportunities that are waiting for you in the world around you.

To fill them with your vitality.  With your spirit. With your passion.  With your imagination. With your Soul.

But in order to create opportunities, the entrepreneur within you must first recognize what an opportunity is, and what purpose it serves.

That’s what happens in The Dreaming Room.

What happens in the Dreaming Room is that each and every participant is taken on a unique, one-of-a-kind journey.  Unique, because it is their journey and their journey only.

The journey one goes on in the Dreaming Room is therefore completely unpredictable because no two participants are the same.  No two journeys are the same.

In the Dreaming Room you are not the same as the fellow or women seated to your right or to your left.

Your creative surge is yours alone.

Your path to freedom is only yours, and no one else’s.

Your personality, your history, your obstacles toward inventing a new life through the creation of a new venture, are only applicable, and therefore important, to you.  To you alone.

That’s why we say that The Dreaming Room process is no more or less than an original experience.

A deeply personal, evolutionary experience that is impossible to describe.

Since only you can know it when it happens.

And only you can do it when you are so awakened.

A blank piece of paper and beginner’s mind.

That’s all you need to know when you come to The Dreaming Room.

Along with the desire to explore your own imagination.

Are you up to that?

Are you up to experiencing a miracle inside?

Well, that’s what I do in The Dreaming Room.

Don’t ask me how I do it.

I just do.

Ask anyone who’s been there.

They’ll tell you the very same thing.

It was miraculous.

That’s why I love to do it.

That’s why I know I will love doing it with you.

Come dream with me.

Stop thinking about it.

Come dream with me.

Michael E. Gerber
Chief Dreamer
In the Dreaming Room
Carlsbad, California

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For more information about this exclusive event please email me at personalfulfillment@gmail.com

You can also find more information at the Michael E Gerber website

The 8 Pillars of Business Endurance

09/18/2009

In our previous post, The 3 Keys To Start-Up Survival, we presented the opening mind-set of the entrepreneur: Set Trends, not follow them. Nothing is perfect, do what you can. Every problem has a potential solution.

In this post we present the 8 most important factors you must always bear in mind to start and maintain any business.

Find strong demand. Supply a solid product/service. Write a Vision. Listen to the Customer. Manage your Finances. Hire the best people. Solve problems. Systemize the best solutions.

Note that it doesn’t matter which stage of business development you’re in. The 8 Pillars to Business Endurance will work wonders whether you’re in start-up, a small business or a growing multi-national, for-profit or non-profit.

  1. Find Strong Demand. Better to find a product that meets an existing need than trying find the demand to fit a specific product. Sounds simple but so many “entrepreneurs” ignore it.
  2. Supply a Solid Product/Service. Test, Fix, Test, Fix. Be on-time. Deliver the same great service, on-time, every time. It’s the only way to build great clientele.
  3. Write your Vision. Instead of being guided by fate, let your initial ideas and inspirations lead you. This creates internal focus and centralizes your strengths.
  4. Listen to the Customer. They are your market, so it pays big-time to hear what they have to say. Most companies forget this the minute they start making money.
  5. Manage your Finances. Daily! Cash Flow (Income minus Expenses) is the story of your business. If you’re not making a profit, either you or your investors aren’t going to be around for too long.
  6. Hire the Best People. There’s a saying, “When you have the right ideas but the wrong people, your ideas won’t work. If you have bad ideas but great people, your people will fix your ideas”. Seek integrity, intelligence and energy.
  7. Solve Problems. Every organization has issues. They key is to identify them and solve them as soon as possible. Ask: “How can we improve our business?”.
  8. Systemize the Best Solutions. Once you’ve chosen the BEST solutions, create a system that solves them forever, so they don’t come up again or that anyone is able to fix them. Create so many systems that it makes people cringe. That’s organization.

Our next post will focus on the 8 key elements to growing any business.

Related Articles: The 3 Keys To Start-Up Survival

The 3 Keys to Start-Up Survival

09/17/2009

“There were 3 reasons why we survived: We had no money, we had no technology, we had no plan. Every dollar we used very carefully” Jack Ma, Founder of Alibaba.com (read that again)

It forces you to be clever, to dissect problems instead of throwing cash at them, to innovate instead of imitating better-funded competitors. Embrace your lack of resources, your weaknesses! Every problem has a potential solution.

There is an inverse relationship between the amount of funding and the ultimate success of companies.

1) Write down the positives of whatever you’ve been viewing as a negative. No funding? Budget wisely. Set trends, not follow them.

2) Consider the negatives of the positives. Too much funding gives a false sense of security. Nothing is perfect so do whatever you can.

3) Look for dark horse models. Has anyone overcome worse circumstances to do what I want to do? Yes, of course. Every problem has a potential solution. Go find it!

The above is an executive summary of an article written by Tim Ferriss. As a first-time entrepreneur, I understand the facts above to be “self-evident”. Think if it this way. If big companies have the best people, and the most money, how is it that entrepreneurship and small business even have a chance in Corporate America?

The answer, of course, is that funding doesn’t always lock in your success. Yet I would clarify that money is the life-source of any organization; profit or non. You need capital, and lack thereof can send your company to bankruptcy faster than you can sign your supplier’s check.

Find a way to grow using only profits from existing sales without any outside funding and you’ve got it made!

Related articles: The 8 Pillars of Business Endurance

Are You Dumb Enough To Be Rich?

08/21/2009

So you got your MBA from Harvard, saved $20k from your last job and have 5000 friends on MySpace. But are you dumb enough to be rich? That’s what analysts of correlations between brains and bucks have concluded. You don’t have to be smart be become wealthy, and as a matter of fact, brains may even stifle your potential.

You see, wealth requires high-performance and rapid-execution. You can’t get stuck on details when there is someone far more qualified for that job.

As an entrepreneur, you must take on the task of creating everything from scratch and that requires leadership and more strategic long-term big-picture thinking. Leave all the nitty-gritty systematizing and organizing to management and for heaven’s sake – get a professional designer to do your website.

Wealth requires Four distinct elements: Motivation, Skill, Knowledge and Focus. Let’s define each one.

Motivation: The Desire To Be

From when that great idea pops into your head, until you start to do something about it, you’re in the motivation stage. An optimistic point of view that convinces you that you have the next multi-million dollar idea. The problem is that in order to turn great ideas into profitable business, you’ll need more than just a desire to create a great product or service.

Skill: Expertise vs. Scalability

The problem with Professions (besides for requiring an immense amount of both time and capital) is that they require a technical expertise that is designated to the person who is skilled. How many surgeries can a surgeon perform a day? Each one requires his physical presence, full attention and time occupation. McDonald’s on the other hand spews out millions of Big Macs each day with a work-force of teenage students. Scalability is the ability to run at full capacity whether its for 1 or 100, offering the same product or service, with the same results, every time without fail.

In business, the hierarchy works like so: Shareholders elect Executives who hire Directors, who find Managers, to teach Supervisors how to oversee Operators.

If the machines run on they’re own, all you need is a tech-savvy operator to make sure everything runs smoothly. But while technicians may be very smart, learning the service manual backwards and forwards, knowing where every nut and bold belongs – no one ever became wealthy on minimum wage.

Knowledge: Chris Langan vs Henry Ford

In the war of brains vs. bucks, you’d think Chris Langan had it all. You may have heard of Chris, as he was featured in Malcolm Gladwell’s best-seller “Outliers”. However, even though Chris boasts an IQ estimated at 210 (Einstein was 160, and Darwin a mere 120) he nevertheless makes an honest living working in bars. No mansions, no rolls-royce, no big shareholder meetings. Genius in other words has failed. (For those familiar with the collapse of LTCM this would not be the first time.

Enter Henry Ford. Someone once walked into Ford’s office and presented him with a complex math problem they knew he couldn’t solve since Ford lacked schooling. “I do not know the answer”, he replied “but I can definitely find someone who does”. He may have not had an IQ anywhere near 200, yet he practically invented the assembly line concept and industrialized the automobile. They said the Model-T was impossible. Langan would agree. Ford would laugh them out of the room.

It’s not that wealthy people aren’t intelligent. It’s just that they focus not on academic genius, but on practical intelligence. Focusing not on predetermined rules, but on what works and what doesn’t. For them business is not science, but art.

Focus: Thinking like a Laser

Ask anyone successful – Bill Gates, Warren Buffett, Peter Drucker, Michael Gerber – “What is the most important trait in business?”. They would answer: Focus. Or as Chet Holmes refers to it “pig-headed discipline”. I had many friends, who I was convinced, would be millionaires before they turned 30. They had diverse interests and skills across a broad spectrum, had storehouses of energy, could hold a complicated theological discussion with any philosopher, even take apart a fridge and put it back together again. Some were even running small businesses in their teens. To “execute” efficiently and effectively requires intense discipline and discipline requires laser-like concentration.

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  • How to improve your motivation: Read into the lives of the successful. Examine how their thoughts compelled them to do anything from controlling their destiny to changing the world. Focus on gratitude, on everything positive in your life. Relay your dreams repetitively to yourself to confirm your subconscious beliefs. Genuinely desire to create value for the rest of the world.
  • How to improve your skills: Enhance your strengths, don’t fix your weaknesses. Learn to deal with people, organize and systematize. I recommend devouring the works of coaches such as Michael Gerber, Chet Holmes, Warren Bennis and Robert Kiyosaki. Get familiar with concepts of Cash Flow, Entrepreneurship, Scalability, Delegation, Optimization and Management.
  • How to improve your business IQ: See the article “5 Books Every Entrepreneur Must Read“.
  • How to improve your focus: Set goals and set out to achieve them. We often lose sight and therefor direction. It doesn’t come easy and it requires practice and conscious application. Make a list of all the things you want to accomplish over the next 12 months. Just this document alone will propel you to bigger and greater things!

5 Ways To Crash a Small Business

08/15/2009

5 simple, to-the-point ways to run any business into the ground.

  1. Use your heart, not your head. Business is not only about passion and a good idea, but what your idea means to other people.
  2. Underestimate cash needs. Money is the life-flow of any enterprise. Without it, well, just look at our nation’s banks. Just assume you won’t make a dime for the first year.
  3. Skip the market research. If you don’t know your target customer, you have no business. You must know your customer the way you (should) know your own kids.
  4. Limit your business acumen. What do you do? To know your business backwards and forwards is what determines whether you’ll do well in good times or bad.
  5. Treat the business like a job. Don’t because it’s not. You’re net worth is no longer increased by your business’s profits but by your share of its intrinsic value.

According To (Out)Sources

06/11/2009

Bringing back one of my favorite TV shows… Hoofy and Boo talk outsourcing.

View more at Minyanville

So much time… So little to do…

06/10/2009
At least that’s the way it should be. You should have as much time as you want to do what you want to do, not what someone else wants you to do (hence all the recently posted YouTube videos).

If you haven’t yet bought The 4 Hour Workweek (4HWW), you’re missing out! I’m still not sure who needs it more, the teen who is bored at home watching TV all day, or the 50-something who needs to scrap together as much as they possibly can until retirement? One thing’s obvious: Like most things, the sooner the better.

I have read the 4HWW 4x and don’t see any reason why I shouldn’t read it another 8. It holds more than just resources, good ideas and sound business sense. It contains a lifestyle – the lifestyle of the future. Machines are going to replace humans, not vice versa. People must learn how to become shareholders, owners and good delegators as oppose to service-people and operators.

I am in the midst of a life changing experience. I now check my email and voice-mail once daily, instead of the uhm-teen times I’d check them throughout the day. I’m in the process of designating the 20% of the things and processes in my life that offer me the most results and value.

Later this week I will begin a process I’ve been kicking myself to do for years: Start my own business – or as Ferriss would call it – a “muse”. A muse is like a business only that it is entirely automated and outsourced so that we combine cash flow with zero management – the best of both worlds. While this doesn’t make us millionaires it offers us time, free from the operational and maintaining pains of financial insolvency. Then we are truly free to pursue our inner most dreams.

I have lots of “work” to do… like creating and testing my product, getting some business advice from Buffett and Gates, and traveling the world!

So what DO you DO?

06/07/2009
I have always been of the creative nature. When I was 4 years old I wanted to be an astronaut (I still do). When I was 7, I dreamed of moving to Alaska and living as an Eskimo in a mansion igloo. So the question “What do you want to be when you grow up?” always seemed foreign to me. There were always too many options.

It seems that things haven’t improved much. The only thing that has changed is the question, “What do you do?” You can’t imagine how many people ask me this with a face of curiosity and interest only to become ever more confused by my answers. I’m constantly tempted to just end it all quickly with something there’s just no follow up for. “I’m a drug dealer” “I’m a rodeo clown”. Or how about this one “Fortune Cookie Writer” (yes, they get paid).

You have a personal business card. What’s your official title? I always wanted to fill this query with something that would fill every possible playing field, regardless of whether I was studying religion, backpacking throughout South America, doing community service or running a Fortune 500. I thought of “Entrepreneur” but it had too much of a monetary ring to it.

“Vagabond” sounded cool and funky at first, but it lost its luster when Webster’s defined it as “a wanderer without fixed income… unsettled, irresponsible or disreputable life“. (Just not me.)

I tried “Lifestyle Guru” which sounded like someone who has it all figured out but it sounded a bit too egoistic and “know-it-all-ish”.

Then I found it! It was inspired by Tim Ferriss author of The Four Hour Workweek (who is in fact my Lifestyle Guru): Life Hacker. It was love at first sight. Life Hacker implied someone who is actively involved in deciphering life in a way that makes it as fun and fulfilling as possible. We “hack” life much of the same way programs are hacked. Find the inefficiencies and open-doors and take advantage of them, beating the system if you will. Imagine if you could pack 36 hours of life into a day of just 24, or learn a new language in less than 6 months, or make $40,000 a year without showing up! That’s the work of the Life Hacker.

It’s about working smarter, not harder. It’s about living and fulfilling your time on earth, not someone else’s.

5 Books Every Entrepreneur Must Read

05/03/2009
Here are the 5 books Every Entrepreneur Must Read before launching any business or organization. Furthermore, while audio books are quite useful and easier to listen to, I suggest you go out and buy the actual books since so much information, graphs and visualizations are contained in them.

The Art of the Start – Guy Kawasaki

Kawasaki essentially outlines the progressive stages of launching your business with a practical and simple rather than deep and complex approach. Learn what VCs want to hear and how to setup a sound business from the ground up!

The E-Myth Mastery – Michael Gerber

While Gerber’s previous book the E-Myth Revisited details why you must build a systematized business, this version explains how. This is the entrepreneur’s bible; an invaluable asset to any business, start-up or Fortune 500. Learn why systems, not people, run your business best!

The Four Hour Workweek – Tim Ferriss

I have many people tell me its unrealistic. I disagree. This is your “Get Out of Jail Free/Rat Race” card before you even get in. Ferriss, though far from conventional lays out how you have to improve everything from your life to your business and back again. Learn how to Delegate, Eliminate, Automate and Liberate!

Good to Great – Jim Collins

What makes great companies great? Collins moves away the clutter to identify the most essential qualities every revolutionary enterprise possesses. Learn why your Values and Vision are worth so many times your balance sheets.

Choose To be Rich – Robert Kiyosaki

So what makes people wealthy? Kiyosaki walks through the fundamentals of wealth creation and good business sense to provide the aspiring entrepreneur the keys to untold riches. Learn why the words “Cash Flow” are the most important words you’ll ever hear.

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These books aren’t just worth a few great lines, they will change your entire perspective on your business and the way you approach your life while achieving your goals.

The only additional keys you need are passion, creativity, common sense and perseverance!

Small Business Owner vs. Entrepreneur

03/11/2009
Why can’t small business stay small?Anyone familiar with Michael Gerber’s work, the E-Myth, will know all too well his “war” on small business, and on the idea that business must be a constantly growing enterprise with sights on world-class status.

He explains that in order to reach this, the business must have both a phenomenal product that fills a true and demanded need for the customer, as well as a systematized organization to ensure that the reason clients came once will continue to bring them back again, and again.

It is for this reason that the “unmotivated” small business owner may find condescension towards the E-Myth. Why can’t we just stay small? Why must we grow relentlessly and “practice” to be better, stronger and more?

To answer this question, I believe we must first differentiate between the Small Business Owner and the Entrepreneur. For the two are not merely different in what they do but also in how they think.

The Small Business Owner has a company with less than 50 employees. He often focuses on a select niche in the industry, and has a list of loyal and returning clients. He has no reason to grow and usually prides himself in being able to cater personally to his customers. He thinks “small business”.

The Entrepreneur on the other hand, has not a business but a vision. A way of uniquely changing the world and those in it in a way no one has ever done before. He sees the business as integral to achieving his goal of fulfilling a need for as many people that possibly request it. Yes he may sell out early to some big corporation or delegate his job and go work on a cure for cancer, but he thinks “better world for everybody”.

This is why I believe Gerber has an issue with small businesses. Mr. Entrepreneur’s middle name is “innovation”. They constantly strive to see new opportunities to achieve their company’s vision and will exploit every option available to them. They will grow out of their own comfort zone, and demand that their managers, employees and associates do the same, all with the attention of making the customer happy.

Over time Gerber believes, there will be a “war” over opportunity, whether in marketing, pricing, talent, customer service or the like. And the winner, he believes, will always be the enterprising entrepreneur and his world-class optimized, systematized, organized and performance-driven visionary company.

From Employee to Investor

12/25/2007
Again moving forward with some of Kiyosaki’s thoughts on business, investing and entrepreneurship, together with some of my own humble opinions.

The Four Quadrants of the employment ladder.

E = Employee – Earns wages through labor for another.
S = Self-Employed (or Small Business) – Earns wages through labor for himself.
B = Business Owner – Starts a system for business growth through others’ labor.
I = Investor – Buys into Assets and Businesses.

Once you categorize yourself as a B or an I, it is important to recognize whether you are more of an Entrepreneur (start business and then transfer or sell to more competent management), Investor (passive owner), or Officer (involved with day to day operations of the business).

The Entrepreneur prides himself in being a great leader and initiator, as well as a big thinker. He has a great idea, plans on how to implement it and goes in. He often comes across all four roles.

The Investor often sits on the sidelines accumulating wealth with the growth of the business, thus his income is passive. The business pays people to do the work.

The Officer is the one who goes all the way from founder or buyer to active management. He builds a successful business with his ability to lead and then enables his ability to manage it properly. His income is both active as well as passive.

Leadership is the ability to initiate an idea of goodwill and influence people around you to achieve that goal.

Management is the ability to work together with people and at the same time complete the necessary tasks of operations.

Taxes are the cost of living in a safe and prosperous society. These are nevertheless deferred for the Business Owner and Investor, particularly when they serve a common good (such as creating jobs or homes). This is why E’s and S’s are taxed first and at much higher rates, while B’s and I’s are taxed last and at lower rates.

Charity stems from the old adage “Give a man a fish and he’ll have food for a day. Teach him to fish and he’ll have food everyday.” To properly reap the benefits of success one must also contribute. The greatest of businesses were often solutions to problems and contributions to a better and more efficient economy.

The Greatest Fears we are often faced with are the “Fear of Rejection” – the whole world will never love you – and “The Fear of Failure” – you can’t win every time. The greatest of mankind are those who strive to conquer these two emotions. After that life is nothing but wonderful.

The advantages of the business owner are immense. As a corporation an individual enjoys a sense of security and protection, as well as a tax-efficient method for increasing wealth through entrepreneurship and enterprise.

12/20/2007

Some Thoughts on Wealth

I was recently listening to Kiyosaki’s audio course entitled “Think Rich”. There were many fascinating aspects, some that were new to me and many which were not. (Many of his ideas reflect those written about by Henry Ford, Napoleon Hill and Richard Clason). I agree much of his work (and disagree with some – such as his definition of luck), so here are some of the ideas that stuck out.

“Money is an merely an idea that can make you rich or poor”.

In this sense money has no validity as a source for wealth unless channeled properly. Many people make money doing their job but few have the intelligence to maintain that wealth and increase it over time.

“Think of wealth as a time frame. If spend $1000 a month and have $10,000 in the bank: You have 10 months worth of money”.

I found this fascinating in the sense that it applies to businesses too. If a business has $1M today that it doesn’t have to spend till next year, that’s significant.

“If you are going into the Real Estate market don’t buy until you’ve seen 100 houses”.

He bases this on the Law of Averages. The more homes you look at the better your chances of finding a bargain.

Q: Why are Brokers called Brokers?
A: Because most Brokers are Broker than you!

“Failure is a verb, not a noun. The fact that 9 out of 10 businesses fail means that 1 of every 10 succeed.”

Again he uses the Law of Averages. He says how it took him only 3 tries before starting a successful business. In a sense he may be considered in the top 3rd percentile in regard to financial intelligence. The truth is most people don’t even bother to try.

“Investing is Saving in what goes UP in value”

You become wealthy by owning appreciating assets, not by holding liabilities. This is why no one ever made money by buying real estate. You make money through the spread of your cost to profit.

“You don’t invest in stocks. You invest in a plan”.
Stocks may go up and down but your financial goals and the strategies by which to reach them stay put.

“Invest in a plan. Know why you wish to become wealthy and the how will follow”.
This sounds much like Enron’s old adage “Ask why.”, but it reminds me of a good joke.

“A man, having trouble with his furnace, calls in a repairman. The Repairman takes a look, grabs a hammer, bangs the wall and the furnace is as good as new again. Receiving the bill the man cries, “50 bucks? I could have done it myself and saved half a union!”. The Repairman takes the paper back for a second, scribbles something, and hands it back. It reads “Bang of Hammer, $1. Knowing where to bang, $49”.

I came up with a few good ideas while listening but that’s for another time.

Until then… Buy appreciating assets. The keyword is “Appreciating”. Kiyosaki says too much of tomorrow’s financial dependence is relied upon the stock market. We say like Jim Rogers “The next thing… is Things”.

03/12/2007
The Ten Rules of Life

After a feel-good, politically-correct, no-losers method of thinking has brainwashed a generation of kids with no concept of reality and failure, we welcome the real rules of life.

Rule 1: Life is not fair – get used to it!

Rule 2: The world won’t care about your self-esteem. The world will expect you to accomplish something before you feel good about yourself.

Rule 3: You will not make $60,000 a year right out of high school. You won’t be a vice-president with a car phone until you earn both.

Rule 4: If you think your teacher is tough, wait till you get a boss.

Rule 5: Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: they called it opportunity.

Rule 6: If you mess up, it’s not your parents’ fault, so don’t whine about your mistakes, learn from them.

Rule 7: Before you were born, your parents weren’t as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent’s generation, try delousing the closet in your own room.

Rule 8: Your school may have done away with winners and losers, but life has not. In some schools, they have abolished failing grades and they’ll give you as many times as you want to get the right answer. This doesn’t bear the slightest resemblance to anything in real life.

Rule 9: Life is not divided into semesters. You don’t get summers off and very few employers are interested in helping you “find yourself“. Do that on your own time.

Rule 10: Television is not real life. In real life people actually have to leave the coffee shop and go to jobs.