Financially Free Friends

The Savvy Investor

2007-07-04T23:34:00.000+08:00

You can't invest your money wisely-and become rich-without first understanding and then applying sound financial concepts.

When author Robert Kiyosaki discussed how ordinary people could achieve financial freedom by understanding how money works in his Rich Dad, Poor Dad book series, he quickly gained a following. Kiyosaki, a Japanese-American investor and businessman, is also the inventor of the board game Cashflow 101, which teaches the financial strategies that allowed him to get rich and retire at age 47.

'Most people don't invest because they don't understand financial concepts: they don't like to deal with figures.'

In Cashflow Quadrant, Kiyosaki describes seven levels of investors, beginning with the big spenders on level zero and climbing up to the savvy investors on level six. Each level characterizes an investor's attitude toward money and spending, with those on level zero having nothing to invest and the borrowers on level two having debt attached to everything they own: they're either slaves to their credit cards or use borrowed money to spend or invest. (On the other hand, the savers on level two often prefer low-risk and low-return investments, and believe in paying in cash for fear of being in debt.)

Investors in level three (divided into smart investors, cynics and gamblers) are intelligent people with solid education and resources to invest, but lack financial literacy to understand how investing could work for them.

Long-term investors fall under level four: they understand the fundamentals of finance and are actively involved in investment decisions. The sophisticated investors on level five have a track record of failures and successes, but pack enough wisdom and drive to keep investing. Capitalists on level six become excellent businessmen using other people's money, talent, and time to get rich.

What separates the rich from the poor is their ability to acquire assets that generate money for themselves. If you can't tell the difference between asset and liability, you may be setting yourself up for a life of financial trouble and ending up like half the adult population on level zero: people who have nothing to invest because they spend more money than they earn. Tan says you should work your way up to at least level four and gain a working knowledge of financial concepts (income statement, balance sheets and cash flows, etc.) in order to make the shift.

In his book, Kiyosaki also introduces a quadrant showing four types of people and how they make money. On the left quadrant is the employee who works hard for his or her salary, and the self-employed who works for himself or herself. On the right side are the business owner, who generates money from his or her ventures, and the investor, whose earnings come from the money he or she has invested. To amass wealth, it is necessary to shift from the left quadrant to the right by coming up with an investment plan that rivals that of the rich.

Going into business is a good way to start making money as it serves as training ground for applying the fundamentals of finance. (You may also seek advice from competent financial planners or attend seminars to bone up on financial concepts.) Once you've acquired enough financial knowledge and money, you may move on to higher levels of investment such as real estate and stocks. The risks may be high, but the returns could very well allow you to retire earlier than you expected.

7 Cures for a Lean Purse

2007-06-18T18:35:00.000+08:00

1. "Start thy purse to fattening." - "For every ten coins thou placest within thy purse take out for use but nine. Thy purse will start to fatten at once and its increasing weight will feel good in thy hand and bring satisfaction to thy soul."

There is no Santa Clause, there are no tooth faeries, and a large pile of money is not going to fall in your lap. If you keep ten percent of everything you make for yourself, over time, your purse will begin to fatten. This is largely covered by the first Law of Gold, but is important enough to briefly emphasize again. The only way your purse will fatten is to set aside 10% of all money you make.

2. "Control thy expenditures." - "Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay for thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings.

The amount of money a person makes is important, but it is secondary to the degree to which that person controls his expenses. Budget and plan your expenses earnestly. Demand value for the dollars you spend.

3. "Make thy gold multiply." - "Put each coin to laboring that it may reproduce its kind even as flocks of the field and help to bring to thee income, a stream of wealth that shall flow constantly into thy purse."

4. "Guard thy treasures from loss." - "Guard thy treasure from loss by investing only where thy principle is safe, where it may be reclaimed if desirable, and where thou will not fail to collect a fair rental. Consult with wise men. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom
protect thy treasure from unsafe investments."

If you're going to throw any money towards risky investments, do it with the money you have not set aside for debts or savings. If you have money beyond the 10% savings to throw away, and you have no debt to pay off, you should set up another savings account, and pop a percentage into it. Use that for your hot stock tips, or risky investments. Never jeopardize your true savings by loaning it to friends, family, gambling, or risky stocks.

5. "Make of thy dwelling a profitable investment." - "Own thy own home."

A house is arguably one of the best investments one can make. It certainly ranks in the top 3, and you'll still find people arguing to have it in first place. If you spend 10 years in a house, making regular payments on it, you own a good portion of that house. You can sell it, usually for a huge profit. If you live in an apartment for 10 years, you own no part of it. You can't sell it, you can't modify it, and you have gained nothing. A house is every bit as much of an investment as an IRA, stocks, and savings accounts.

6. "Insure a future income." - "Provide for in advance for the needs of thy growing age and the protection of thy family."

You won't have your health forever, and sometimes bad things will happen. Insurance, while sometimes costly, is not a scam. Get insurance. Get home insurance, get car insurance, get health insurance. The savings in health insurance alone are immeasurable later on down the road. aside enough that you can live comfortably off the interest alone. And when you die, your children will have a nest egg to start their own wealth off with. Thus brings us to another point in this: You must teach your kids these rules if the success of your riches is to pass from generation to generation.

7. "Increase thy ability to earn." - "Cultivate thy own powers, to study and become wiser, to become more skilful, to act as to respect thyself."

In time you will be able to look at everything in terms of how much money it can make for you, and since you will have very few money problems, you'll probably have a lot of free time on your hands. If you have a hobby, it can usually be turned into money. Got a passion for art? Start collecting works by talented painters who are old. Got a hankering for golf? Enter competitions. Got some great ideas? Start typing and write a book. You can enjoy life, and even manage to profit off that enjoyment. Our single greatest asset is time, and if you use yours wisely, you will have more money than you will know what to do with.

Mind your spendings

2007-05-09T22:45:00.000+08:00

Putting up a new business can be so demanding and stressful that even rational people can sometimes fall into the overspending trap. In your enthusiasm to make your business succeed, you yourself may fall into this trap and face the following undesirable situations:

High rental cost. By getting office space that's much too big for your startup business, you can get strapped for cash due to your high rental cost. This mistake would be all the more painful if your business doesn't pick up soon enough contrary to your expectations.

High depreciation cost. It's not advisable to buy top-of-the-line office equipment and furniture when they are not essential to the success of your business. They not only will be a big drain to your initial capital investment but also result in high depreciation expense.

Too many employees. In your desire to make everything in your business move smoothly, you may end up hiring more employees than you really need. To avoid bloating your payroll, see first if you or your manager could handle the functions of the positions you want to create.

Overstocking of inventory. Because you want to take advantage of a supplier's volume discount, you might order initial inventory that's way above your normal operating requirements. This can prove to be a bad deal when the cost to maintain the excess inventory proves to be higher than the supplier's volume discount.

Credit line abuse. You can end up acquiring unnecessary debt when you take on your bank's offer of a very high credit line. You can then be tempted to treat your credit line as capital infusion, enticing you to go on an expansion binge that invests heavily on capital expenditures. Because you used short-term financing for the long-term investment, however, you soon begin experiencing cash flow problems and abnormally high interest costs.

There are many ways to cut down on your expenses and minimize your cash outflows, but the most important are the following:

Develop a budget. You need to draw up a budget for each department of your company, listing all monthly expenses, and then make it a point to monitor and evaluate this budget regularly. Budgets are a reliable benchmark for measuring your actual performance. By sticking to your budgets, you will be able to curb your impulse purchases more effectively.

Promote accountability. Once you have drawn up your budget, you need to authorize only a few specific people including yourself to approve or make purchases on behalf of your company. By coming up with a formal approval system, you will be able to develop greater accountability and stronger control over expenses.

Update your bank account regularly. You need to monitor your cash position daily to avoid unexpected cash shortfalls. By knowing your cash position at any time, you will not make the mistake of tapping your bank credit line to finance expenditures for which you have enough cash in the bank in the first place. You will thus be able to avoid unnecessary interest expenses.

Try to barter your services and products. The barter system or "ex-deal" is a good way to reduce your inventories, increase sales, improve cash flow, and use the excess capacity of your business. For example, if you are in the restaurant business and you need to hire a marketing company, you can offer to pay for its services with free meal vouchers instead of cash. This way, you not only reduce your cash outflow but also reduce your inventories and put your restaurant's excess seat capacity to use.

Prioritize your capital expenditures. You should invest in capital assets such as computers, equipment, and transportation only when you absolutely need them. Make sure that they will create a positive return on investment for you in the long term. For example, before purchasing a new computer, you need to first compute the net savings you will get by investing in it as a replacement for your old one, whose slowness could be costing you a substantial sum in overtime pay and delayed sales deliveries. Make the purchase only if the net savings are big enough.

Create an incentive system. You can encourage your employees to cut down on company expenses by developing an incentive system for savings generation. For instance, in a particular department, you can reward the employees a certain percentage, say 10 percent, of the total savings they realize at yearend from their approved budget. In this way, you not only cut down on company expenses but also share with your employees the benefits of the savings generated.

In some rare instances, it may be a good idea to spend heavily on such crucial aspects of the business as marketing and advertising. This may be unavoidable particularly if you are just starting up with a new brand. Still, such expenses should always be carefully budgeted and monitored, and if you are having difficulties justifying them and certain other major expenses, it is always advisable to consult your accountant or a financial advisor.

Source entrepreneur.com.ph/

10 Proven Tactics for Business Growth

2007-05-01T10:51:00.001+08:00

Growing a business requires continuous attention, careful planning and a willingness to take calculated risks. No matter how successful, a business left by its self will go to pot. In the last decade, the cost and risks associated with doing business have risen dramatically, but also opportunities.

1) Give priority to new product or service development. Always seek ways to improve what you have to offer and develop means to reinvigorate your own products or services before someone else does.

2) Find new applications for existing products or services. Be sure to establish a communication means between your company and your product / service users to determine how they really use your products. Offering a financial incentive to surface new applications helps too!

3) Remember the easiest sale of them all. You have already spent the money to acquire your customers and build a relationship with them, why not ask what else we can make or provide for them?

4) Know where to get all the answers. All the answers about how your company is doing, where it should go and what it should stop doing, reside within your own customer base.

5) Buy rather than build. Take a good look at your targeted industry. There usually is a resource limited company that offers viable products and services that relate to yours. Consider buying them versus investing the same money in organic growth alternative.

6) Think out of boundaries. If you just focus on one market, someday you will find your company can no longer effectively compete because someone else beat you to others.

7) Go eCommerce. Establish an effective means, via the Internet for your customers to educate and update themselves, solve their own problems and order your products with a few clicks of the computer mouse.

8) Know when to say "No" and "Stop". Making or doing something that no longer makes financial sense needs to be dealt with decisively, no matter the, "we have always made those, we have always sold those, or we have always done it that way" commentary.

9) Measure and publish everything. Business practices can only be improved upon if they are written, measured, tracked and periodically audited for effectiveness. All results justify being shared with all employees, good or bad. Always celebrate success publicly, criticize poor performance privately.

10) There is always a price to pay for business growth. There is no clear roadmap on how to best grow your company, each company has its own growth challenges.

Source: Business Line Vol. 2

THE 5 LAWS OF GOLD - simplified

2007-04-30T11:49:00.000+08:00

From the Richest Man in Babylon
by George S. Clason

This book holds the secrets to acquiring money, keeping money, and making money earn more money. Acclaimed as the greatest of all inspirational works on the subject of thrift and financial planning, these fascinating and informative stories have become a modern classic in their field.

In language as simple as that of the Bible, this book presents a sure path to prosperity and happiness. It offers an understanding of—and a solution to—your personal financial problems which will guide you successfully through a lifetime.

THE FIVE LAWS OF GOLD

"Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family." - This first part is very simple, and surprisingly easy, regardless of your income. It's also known as "pay yourself first." Always set 10% of your pay aside into savings. Find a savings account, and dump it in there, every single paycheck. Never fall in the trap of missing a paycheck's worth of savings, and thinking you can dump twice as much in next time. Though it may not seem like much, it amounts to thousands within a short period of time. If you earn only $5/hour, and work a 40 hours week, ($200 pay), then even $20 a week will add up to over $1000 by the end of the year. This does not only apply to paychecks! You must do this with any money you receive, be it a tax refund, a gift of money, winnings, that $10 you found on the street. Pay yourself first, before your bills, before your toys, before your living expenses. ALWAYS SET ASIDE 10%
"Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field." - Everything you save should earn. In other words, putting your money in a mattress isn't going to do much good. In order for your wealth to truly accumulate, you need to put it into an interest bearing account. The interest it earns will, in turn, be added to the total, so that you earn even more interest, which will be added to the total, and earn even more interest, and so on. Start off small. Get a savings account. In the beginning you will only see a few cents added in your monthly statement. But as you add to it with your 10%, and your money earns that interest, it will grow, until those few cents a month turn to a few dollars a month. Those few dollars, in turn, becomes tens of dollars, then hundreds... Think of it as if you were breeding your money. Once you have a few thousand saved, look for more profitable interest-bearing accounts, such as a money-market, or a Ginnie Maes. YOUR MONEY SHOULD ALWAYS EARN INTEREST
"Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling." - Almost as inevitable as death and taxes, are people who will just be dying to spend your money for you, or give you advice on what to do with it. So you've got this friend, we'll say he's a carpenter, and if you give him a thousand dollars, to join his thousand, he'll go across the border and pick up some jewels that will be worth TEN TIMES the amount. Let me ask you this: if you want the best quality jewels, for the lowest price, who are you going to go to? You go to a jewelry, or a gemologist. If you want quality craftsmanship and quality wood, go to your carpenter friend, but do not trust him with a subject he is not specialized in. DO NOT TAKE INVESTMENT ADVICE ABOUT JEWELRY FROM A CARPENTER.
"Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep." - There is a reason that most lenders refuse to trust money to someone who has none. They simply can't be assumed to have the skills or knowledge capable of paying it back. After all, if one had the knowledge to manage money wisely enough to be able to pay back a loan, they wouldn't be dirt poor. The same should apply to your money. When you have amassed a comfortable amount of savings, you will be approached by everyone from friends to family members to total strangers, all of whom want to just borrow enough money to get back on their feet, or to start a business. The best help you can give them is the knowledge of The Five Laws of Gold. If they are wise, they will thank you, get a job, and slowly turn their life around to the point where they will never need to borrow again. If they are not, they will demand instant gratification. Should you choose to lend to them anyway, you may as well throw your money into a ditch. Business loans are different. Keeping in line with Law #2, you should arrange for reasonable, timely payments, with interest, and be certain to have the legal paperwork to back it up. Using Law #3, do not give your carpenter friend a business loan so that he can open up a jewelry store. Suggest that, instead, he come up with a plan for a construction company. And always remember, the safest loan you can give is to a person who already has a liquid net worth of at least 4 times what he borrows. NEVER LOAN MONEY TO PEOPLE WHO ARE NOT CAPABLE OF PAYING IT BACK
"Gold flees from the man who would force it to impossible earnings or who follow the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment." - Gambling is the stupidest investment one can possibly make. If you gamble, do it for fun, and plan on losing that money. Once it is gone, do not grab more, hoping to make up for it. Beware of ridiculously high interest rates, anything past about 11% is almost certainly a scam job. Before you invest, do your research. Make sure you know exactly how it works. If you don't understand, ask a reputable banker to explain it to you. Believe it or not, most of them are more than happy to do so, as a wealthy person makes a better customer. SAFE INVESTMENT ALWAYS PAYS OFF BETTER THAN RISK

source: a post of thelibra (abovetopsecret.com)

Leadership Myths Demystified

2007-04-23T22:42:00.001+08:00

Psychologists have long held that perceptions shape behavior more powerfully than reality. One fine example of perception influencing reality is the conventional wisdom on leadership. For the longest time, business owners have sworn by some beliefs about leadership that at best have brought them mixed results. And when conventional wisdom doesn’t give one the outcome he wants, it’s time t challenge this belief. Here are the most common leadership misconceptions.

Myth #1: Leaders are born, not made.

Scientists have yet to find the so-called leadership gene, while we are all born with different potentials and personalities, none of us are born leaders. There are as many leadership styles as there are people: Some are more charismatic while others are more quiet and warm. You can develop your leadership skills by raising your awareness, creating opportunities, r trying something new. Think f strengthening your leadership as a lifelong project instead of a quick-results task. Set modest goals and regularly check your progress. Find and meet with a friend or mentor with exemplary leadership qualities, and talk to him not abut leadership, but about how business is doing, especially about how you interact with staff, customers, and partners.
The truth: Leadership is learned and developed.

Myth#2: Status and position make a leader.

When asked who they think are the greatest influences in their life, people often say teachers, coaches, priests, and relatives। Many on the list may not hold what society considers as high status positions, but their leadership was powerful enough that it changed lives. Leadership is not about holding a title; its about taking action. Showing up early, going home late, and working alongside the staff at cleanup time are manifestations of leadership. Some people with fancy titles are actually ineffective leaders, while others with the barest of social standing can wield influence beyond expectation. In your business, you ask yourself: Who are the unrecognized leaders? What am I doing to develop them?
The truth: Leadership is shown in action.

Myth#3: Leaders control.

Leadership is sometimes confused with control। The misconception is that instilling fear allows one to maintain a position of leadership. In reality, too much control puts a ceiling on business potentials. Consider the case of a salesperson in a store who, when asked for a discount, always consult the owner. Such rigid rules are indications of ineffective leadership. True leaders give their frontline employees control and power to decide.
The truth: Leaders who give control earns their subordinate’s loyalty.

Myth#4: Future leaders need spoon-feeding.

Treating people with kid gloves and hand holding them through the rough times won’t turn them into leaders. If you want your people to take responsibility, give it to them. That’s how they become responsible, instead of spoon-feeding them: Develop leaders who respond creatively and effectively to various business situations.
The truth: Leadership is about allowing people to take responsibility, and then gradually increasing it over time.

Myth#5: Natural leaders grow into their role when their time comes.

You’ve heard the plot before: The spoiled son is a party animal. But on his 21st birthday, his wise father rewards him by naming him successor to the family’s business empire. A natural leader, the son realizes even more success than his dad. But this is a fairy tale, not what happens in real life. If you are not building leaders now, you wont have them tomorrow. Worse, you may have to hire new, more expensive people you don’t even know or trust. A leader spends a lot more time leading and less time handholding. If the staff needs to ask you for the tiniest decisions, like what brand of soap powder to buy, you’re not teaching them leadership. From the start, make people fully responsible for their work. Remember that the supervisor in an overseer role adds no value, only cost. Strengthen your people’s skills by being in a supporting role. Together, set reasonable performance standards.
The truth: Future leaders need to be developed now.

Myth#6: Learn the theories first, then apply them later.

To the entrepreneur, ideas without action are worthless. Our best learning isn’t separated from work; it’s embedded in it. The best way to test ideas is to try them out. Offer a new recipe, clothing item, or try a marketing gimmick or service on the ground as you interact with your customers. Learn as you go.
The truth: Always combine learning with action.

Myth#7: Leadership is too risky

Many business owners find developing leaders not worth their while, much less that they are expected or required to do so, because making leaders is not usually a valued endeavor in small organizations. Nevertheless you can do things differently.
The truth: Leadership is worth the risk

Spotting the Latest Trends

2007-04-22T22:19:00.000+08:00

Part art and part science, this kind of trend spotting is truly the key to entrepreneurial success. The good news: It’s not as difficult as you might think.

The art part of this is that you need to be creative in your thinking, and anticipate what consumers will want not only right now, but also years down the road. The science part is that, while you don’t exactly need to walk around in a lab coat, you do need to treat your environment like a lab, where you’re constantly making observations and discoveries. Follow the steps outlined below, and you’ll be well on your way to identify-ing a trend that could turn into a successful business.

Distinguish trends from fads. “When deciding to adopt one or the other, it’s important to know the difference,” says Nancy Trent, president of Trent & Company Inc., a New York City PR firm specializing in building health, beauty and fitness brands.

Essentially, anything that has staying power is a trend. It has social, political and economic significance. It develops gradually and follows a sequence of events. Fads, meanwhile, can come and go in a flash. (That isn’t to say you can’t start a business based on a fad. See "Absolutely Fad-ulous" below for help determining whether this is the route for you.) If a trend is what you’re after, though, Trent has a simple acronym to help you nail down one that’s worth pursuing.

Time: Trends don’t happen over-night. “Yoga is the oldest trend in history,” says Trent. But yoga has become so well-accepted that it’s now mainstream--hence the story of Plank.

Roots: “Because a trend is developed in a wide variety of ways, it develops roots,” explains Trent. Trends won’t vanish even as they evolve, because their roots are deep and intricate.

Everywhere: A trend will slowly sprout up in different places. After a while, you’ll see it all over the place.

Nonstop growth: Trends keep building slowly, never stopping their growth. “A trend isn’t going anywhere--it will be there for a long time,” says Trent. In contrast, she says, “A fad won’t last.”

Durability: Trends are strong. Unlike fads, they don’t weaken as they become mainstream; they only become stronger.

Make observations. “You always have to be on the lookout,” says Trent. Read newspapers and magazines, especially from the East and West Coasts, where trends are often born. Go online and read blogs. Watch TV--not just the news, but popu-lar shows. Talk to teenagers; they’re especially in tune with trends. Look to companies like Wal-Mart to see where their profits are coming from. Basically, do anything you can to stay on top of what’s hot and what’s not--and what will be in the future.

The key is that you can’t only pay attention to industries that interest you--because, as Celente says, everything is connected. “It’s one of the big mistakes [potential entrepreneurs] make,” he says. “Opportunity misses those who view the world through the eyes of their profession.”

Obey the rule of threes. If something gets written or talked about in the media at least three times, “then you know it meets the initial criteria for being a trend,” says Trent.

Remember, however, that you need to know the demographics and needs of your particular market. Look for the patterns that are happening locally, and ask yourself whether they make sense. “If it’s something you need hot weather for, it’s not going to work in Alaska,” explains Trent.

David Lobel, founder and managing partner of Sentinel Capital Partners, makes it his business to look for those patterns and understand market needs. Just in the past several months, his New York City private equity investment firm has purchased several businesses that are taking advantage of a powerful trend: catering to the aging population.

Lobel says the trend is obvious even to the casual observer. “I don’t have to do a lot of deep thinking to figure out that this is a [good idea],” he says. Indeed, a simple Google News search for the words aging and population together produces more than 4,000 results. Not all the results are relevant, but this helps demonstrate that the trend is a no-brainer. What patterns are you seeing in the media?

Be your own trendsetter. Why not be the one analyzing the market and looking at changing needs? You can be the apparel manufacturer determining what to manufacture, or the children’s business creating the next great learning toy. Anticipate what lies ahead, and you’ll always be in business--even as the trends change in your industry. “Spotting is [seeing] what already is,” says Celente. “Forecasting is [seeing] what’s going to be.”

The beauty is that it’s within your power as an entrepreneur to act on trends you spot. You’re in control of your own destiny. So when you see a trend coming, you can plan for it and jump in when the timing is right, without any bureaucratic baggage. “Entrepreneurs can actually outflank many large businesses,” says Celente, “because the bigger the businesses are, the slower they move.”

Absolutely Fad-ulous
There are some subtleties to trend spotting--the primary one being identifying trends vs. fads. If you think you’ve spotted a worthy fad, you may have a worthwhile business. But you have to be prepared to act quickly and move on when the fad has run its course. “To be successful in a fad business, it’s all about timing,” says David Lobel, founder and managing partner of Sentinel Capital Partners, a private equity investment firm in New York City. “You have to get in early enough and get out before it’s too late.”

Deciding between a trend and a fad business largely depends on the kind of business you’re in. Apparel companies create fads all the time, with great success. Most important, don’t assume a fad is business-worthy just because you have a good feeling about it. “That path is littered with companies that failed miserably,” says Nancy Trent, president of Trent & Company Inc., a New York City PR firm.

Instead, research your idea and test it on your target market as you would with any trend or business idea. In fact, many of the same principles of trend spotting apply to spotting fads--just in a much shorter time frame. “People have made fortunes on fads,” says Trent. “It [takes] a cost-benefit analysis.” How much will it cost you to get in? How much can you make? If it’s likely to be a short-lived fad, how will you get out? “On the other hand,” says Trent, “you can keep a fad going if you’re waving a blanket at it and stoking the flames.”

source: Entrepreneur

15 Reasons Why You Need a Business Plan

2007-04-19T21:57:00.000+08:00

Whether you're just starting out, growing your business or seeking outside help, a well-thought-out business plan is the vehicle you need to get you there. Why do you want a business plan? You already know the obvious reasons, but there are so many other good reasons to create a business plan that many business owners don't know about. So, just for a change, let's take a look at the less obvious reasons first and finish with the ones you probably already know about.

15. Set specific objectives for managers. Good management requires setting specific objectives and then tracking and following up. I'm surprised how many existing businesses manage without a plan. How do they establish what's supposed to happen? In truth, you're really just taking a short cut and planning in your head--and good for you if you can do it--but as your business grows you want to organize and plan better, and communicate the priorities better. Be strategic. Develop a plan; don't just wing it.

14. Share your strategy, priorities and specific action points with your spouse, partner or significant other. Your business life goes by so quickly: a rush of answering phone calls, putting out fires, etc. Don't the other people in your business life need to know what's supposed to be happening? Don't you want them to know?

13. Deal with displacement.Displacement is probably by far the most important practical business concept you've never heard of. It goes like this: "Whatever you do is something else you don't do." Displacement lives at the heart of all small-business strategy. At least most people have never heard of it.

12. Decide whether or not to rent new space. Rent is a new obligation, usually a fixed cost. Do your growth prospects and plans justify taking on this increased fixed cost? Shouldn't that be in your business plan?

11. Hire new people. This is another new obligation (a fixed cost) that increases your risk. How will new people help your business grow and prosper? What exactly are they supposed to be doing? The rationale for hiring should be in your business plan.

10. Decide whether you need new assets, how many, and whether to buy or lease them. Use your business plan to help decide what's going to happen in the long term, which should be an important input to the classic make vs. buy. How long will this important purchase last in your plan?

9. Share and explain business objectives with your management team, employees and new hires. Make selected portions of your business plan part of your new employee training.

8. Develop new business alliances. Use your plan to set targets for new alliances, and selected portions of your plan to communicate with those alliances.

7. Deal with professionals. Share selected highlights or your plans with your attorneys and accountants, and, if this is relevant to you, consultants.

6. Sell your business. Usually the business plan is a very important part of selling the business. Help buyers understand what you have, what it's worth and why they want it.

5. Valuation of the business for formal transactions related to divorce, inheritance, estate planning and tax issues. Valuation is the term for establishing how much your business is worth. Usually that takes a business plan, as well as a professional with experience. The plan tells the valuation expert what your business is doing, when, why and how much that will cost and how much it will produce.

4. Create a new business. Use a plan to establish the right steps to starting a new business, including what you need to do, what resources will be required, and what you expect to happen.

3. Seek investment for a business, whether it's a startup or not. Investors need to see a business plan before they decide whether or not to invest. They'll expect the plan to cover all the main points.

2. Back up a business loan application. Like investors, lenders want to see the plan and will expect the plan to cover the main points.

1. Grow your existing business. Establish strategy and allocate resources according to strategic priority.

8 Deadly Mistakes When Running a Business

2007-04-18T16:19:00.000+08:00

Anyone who have been in business made mistakes. In fact, the longer you’re in business, the more mistakes you’ll make. It’s just that the ratio of good decisions to bad ones improves over time. To help you guide not to commit some of the obvious ones, we list here 8 deadly mistakes you would likely commit. Keep on reading.

1. Underestimating the importance of cash-flow management. You can be making plenty of money, but if the cash is not arriving in time to meet the payroll, finance your borrowings and buy inventory when it’s needed, you can be quickly out of business.

2. Sloppy record keeping. Good records are a key decision making tool. If you are not keeping track of your business, you are denying yourself the tools to make good business decisions.

3. Ignoring inventory. If you end up with stale inventory, discount it and get rid of it. Otherwise you are tying up money and storage space.

4. Neglecting collections. Unless you have a systematic collection plan and make sure it is carried out, people just won’t pay.

5. Disregarding employee concerns. Get expert advice on human resource issues. While it may look expensive, it can save you a bundle in the end.

6. Failing to delegate. Turn some of the job over to the best assistant you can hire and trust that person to do the job. If you insist on doing it all yourself, you can’t grow.

7. Offering something the customer doesn’t want. Talk to customers and respond to what they tell you. The house recipe might have been in the family for three generations, but tastes do change and you will have to adjust to that.

8. Letting costs get out of control. Be careful not to spend all the profit. Keep your personal funds separate from your business money. Reinvest a healthy percentage for business expansion or bank it in reserve for a rainy day.

Source: Business Line

Financial Statements 101

2007-04-17T17:57:00.000+08:00

As an entrepreneur, one of the things you need to learn is how to analyze your financial statements. Understanding financial statements is critically important to the success of a small business especially during its first two years.

Financial statements can be used as a roadmap on your business journey to economic success. Using numbers as navigation aids can steer you in the right direction and help you avoid costly mistakes. Most entrepreneurs don’t realize that financial statements have a value that goes far beyond their use to prepare tax returns or loan applications.

Any business, whether new or old, has to have updated financial statements all the time. An entrepreneur will have a better understanding of how this business is doing by analyzing the different critical information which financial statements present. By doing so, he can nip in the bud any problem besetting his business before it’s too late.

First, ask your accountant to derive the following financial information from the balance sheet and income statement:

1) Sales Growth on a monthly basis
2) Gross Margins as a percentage of Sales
3) Net Operating Expenses as a percentage of Sales
4) Accounts Receivables (Days)
5) Inventory (Days)
6) Accounts Payables (Days)

The first three data are what we call the Growth and Fundamental Profitability Indicators of an enterprise. These are critical factors that determine whether the business can generate enough cash to be sustainable in the long-term.

The second set of data (Account Receivables Days, Inventory Days and Accounts Payable Days) is called the Swing Factors. They are called swing factors because any small improvement or decline in any of the three variables can result in a significant shift or swing to the cash position of the company.

Now, what’s the implication or importance of this financial information to your operations? First, the analysis of your monthly (annual) sales growth will reveal whether the business is generating enough cash. It is worth noting that any changes in monthly/annual sales will impact on your monthly/annual cash flow. Sales growth is an indication that your business is using a large amount of cash to finance any business growth.

As an entrepreneur, you know that sales is a function of the selling price and the quantity sold. Manipulate these two critical variables to achieve your desired sales level.

Analyze where the bulk of your sales is coming from by deriving percentage of each business unit’s contribution to the total sales. How much is your present gross margin and operating expenses (net of depreciation and amortization expenses) as a percentage of total sales? Procedurally, you will arrive at your gross margin by deducting your cost of sales/revenues from your net sales. Consequently, deducting from your gross margins the net operating expenses will give you your “cash cushion.”

Gross Margin = Net Sales – Cost of Sales

You should remember that by definition, gross margin represents the amount of profit per peso of sales that the company retains after accounting for its cost of sales. It is important for you as a starting entrepreneur to remember that any increase in gross margin is a source of cash flow. A higher gross margin will enable your enterprise to cover your operating expenses.

The operating expenses on the other hand, is the amount of gross margins that is consumed by operating expense. An increasing trend in your operating expenses means a decrease in your cash flow. A higher cushion will enable the enterprise to cover its current operation and make the enterprise liquid in the current term. Being liquid would mean that it would have the ability to pay its overhead expenses including interest and tax payments.

Take a look at the last set of financial information that you should examine. These are your Accounts Receivables Days, Inventory Days, and Accounts Payable Days. As a manager, you can control them through rules and regulations that you will put in place with regard to extending credit, terms of payment and collection policies.

Accounts Receivables (AR) are your credit sales. And here we are looking at the average time your business takes to collect trade receivables arising from credit sales. An increasing trend in the AR days reflects a decrease in cash flow and vice-versa. On the other hand, Inventory Days tells you the average time your business takes to sell its inventory goods. You should remember that a rising inventory (INVTY) is costly to your operation. It is money lying idly in your storeroom or warehouse. Similarly, an increasing trend in your INVTY days also reflects a decrease in cash flow and vice-versa. The Accounts Payables Days is the average time it takes your business to pay its trade creditors or suppliers. An increase in AP days reflects a source of cash. This is so because as long as you can delay payment to your suppliers, you can hold on to our use your cash for other purposes than payment.

Source: www.sme.com.ph

Tech trends for 2007

2007-04-16T23:33:00.000+08:00

What? The year's over already? As my favorite Matrix actor would say it, "Whoa!" Time again for our annual trend reports!

The good news is that 2007 looks like it will be such a good year for entrepreneurs, and I'm not talking about the release of Windows Vista either. I say this because if you search the web today, you'll most likely find a nifty tool not only for your personal use but also for your business. The catchword for 2007 therefore could very well be "Better tools on the Web, for free (or at lower cost)!"

Trend #1: Collaboration through Web and IM will become even more popular.

More than ever, we will be getting better and cheaper computer hardware from the Internet and get cheaper Internet connections besides. The World Wide Web (aka "the Web") can provide us with even more exciting entertainment as well as faster and more productive ways to gather information and to get more work-real work-done. All this, thanks to Web 2.0, a revitalized, dynamic platform that provides even better collaboration tools.

The most outstanding of these new tools are Google Docs & Spreadsheets for word processing and spreadsheet calculations, Basecamp for project management, and Gliffy for flowcharting and diagramming. These tools all run from the Web but they behave like traditional software, performing such mundane information-processing tasks as drag-and-drop and copy pasting. All you need to put these tools to work is an Internet connection and a browser like FireFox. There's absolutely no need to download and install anything. In addition, Google recently purchased other collaborative tools from independent developers that might be made available to users soon-most probably also for free!

Recent advances in real-time instant messaging (IM) will also definitely greatly enhance collaboration over the Internet. Now fast becoming standard fare in IMs is voice over IP (VoIP), which is geek-speak for "allowing us to make and receive telephone calls through an Internet connection." The most popular IM tools are Yahoo Messenger and Skype because they allow for both voice conferencing and video conferencing. These handy, easy-to-use IM tools are excellent free alternatives to the expensive traditional video-conferencing services.

Trend #2: Here comes crowdsourcing.

The growth of the Web also makes possible a new service capability: crowdsourcing. This feature is different from outsourcing, which is the use of experts outside the company to provide products and services. In crowdsourcing, the company collaborates with volunteers and amateurs to create products and solve problems for the company. In a typical crowdsourcing project, a company can post the project on its website and invite interested parties to propose, bid, or work on the project either for free or for cash incentives.

Crowdsourcing has three advantages for entrepreneurs. First, the more people working on a problem, the more chances that they can get a better solution within a shorter time. Second, crowdsourcing is mediated by the Internet, which is a largely free medium. And third, crowdsourcing can draw volunteers and enthusiasts who often work for much lower cash incentives than the usual outsourcers. It is a threat to big companies, of course, but for entrepreneurs, it opens up a lot of previously unavailable opportunities.

Trend #3: Even better open-source software will become available.

Crowdsourcing is actually riding on the coattails of the Open Source Software (OSS) movement, which draws on crowd power and the internet to collaboratively build inexpensive software. The result is software that is more reliable, more secure, and more customizable than proprietary products like those produced by Microsoft. Small-scale entrepreneurs with tight IT budgets should look into OSS as an alternative.

How reliable is OSS? Just take a look at the most popular OSS software programs, FireFox and Thunderbird. The web browser FireFox is better at blocking unwanted ads and viruses compared to Internet Explorer. On the other hand, the email program Thunderbird offers better spam filtering and more security than Microsoft Outlook Express. Both FireFox and Thunderbird were created by the Mozilla Foundation which is backed by an active open source community that can post patches to bugs and virus threats in less than a day.

Last year, I predicted that Linux would enjoy increasing use as a cheap alternative to Windows. That prediction is now coming to pass, thanks to the development and introduction of Ubuntu Linux, which is very easy to install and is compatible with more hardware. In fact, the computers in our office-including laptops-run on Ubuntu, making them virtually free from viruses and hardware crashes. And by the way, I am writing this column with OpenOffice, a free and open source word processor.

Trend #4: E-commerce will still be hobbled by high-cost online payment facilities.

Entrepreneurs who wish to go online in the Philippines still have to contend with a major obstacle: collecting payments for goods and services when they are not paid in cash upon delivery. As predicted last year, the online payment facility PayPal has become available in the Philippines. Its use remains very limited, though, and online stores still only have G-Cash and Smart Padala as viable alternatives for getting paid online. It's true that PayPlus and EasyPay have been set up as local versions of PayPal, but these two charge simply too much. In fact, PayPlus and EasyPay are missing the point: their services are actually best suited for small businesses, but their rates are too high to attract the small businesses.

Small-scale and medium-scale businesses simply can't afford those rates. And PayPlus and EasyPay shouldn't really hope to be servicing big businesses. After all, those businesses are already big and will most likely ignore the online market anyway. It is the small businesses that have a crying need for low-cost online payment alternatives and are more ready for technological innovation.

source: Entrepreneur

Make money from your blog: 5 tips

2007-04-15T22:47:00.000+08:00

Many of the people who write blogs today simply want to share their opinion on something. But then there are the business-minded folks, who have found a way to use blogs, or Web logs, to bring in a little extra cash too.

If you're interested in taking it further — blogging for bucks, if you will — here are five strategies that could turn your blog into a moneymaker.

1.Sell advertising. This is likely the most common means of leveraging a blog to generate income. If yours happens to become a well-known blog, or one that is well-received in a particular niche, it's always possible to sell ad space on your own. For lesser-known blogs, services such as Google's AdSense or BlogAds enable bloggers to establish ad programs.

AdSense's — which lets you select several ads that are consistent with the content of your blog — pays you based on how many readers click on the ads for further information. Even better, it's free. BlogAds, on the other hand, hooks bloggers up with would-be advertisers and levies a commission in return for any ad placements that result.

2.Help sell others' products. Here is another click-through opportunity. Affiliate programs enable your blog to serve as a conduit between readers and online sites offering various goods and services. One popular choice is Amazon.com. If, for instance, you offer book reviews or even just mention a book in passing in your blog, an affiliate program provides a means for your readers to click directly from your blog to Amazon to obtain further information about the book. If they break out the checkbook or charge card, you get paid as well.

3.Solicit contributions. Not every blog-related income opportunity involves hawking goods or services. As Blanche DuBois did in "A Streetcar Named Desire," consider relying on the kindness of strangers. Ask for contributions. If, for instance, your small-business blog supports a cause or issue in some fashion — say you repeatedly mention tax reform, health care or some other topic — you can always ask for reader support.

Even if you've attracted a group of regular followers who simply enjoy reading what you have to say, they may be willing to underwrite their loyalty with a little financial help. Programs such as PayPal make it easy to establish a simple on-site contribution collection button.

4.Market your services in your blog. Many people associate blogs exclusively with a cyberspace-based soapbox — a place to shout your opinions and little more than that. Granted, blogs are an ideal venue to share your thoughts with others, but don't overlook their capacity to generate new business as well. When appropriate, work in references to what you do and, in turn, what you may be able to offer any would-be client or customer who may be reading your blog. That can spread your opinion and your business moxie at the same time.

5.Use a blog to deepen your existing customer relationships. Nor does any marketing material inserted in blog content have to be limited to bringing in completely new business. By using a blog to regularly communicate with existing clients as well as other readers, you can take advantage of the opportunity to fully inform them about everything your business does. That may expand your readers' understanding of the full scope of your products or services.

Donald Trump & Robert T. Kiyosaki

2007-04-15T13:37:00.000+08:00

6 Steps on How to Invest in Properties and Real Estates

2007-04-13T23:56:00.000+08:00

Kiyosaki & Dolf De Roos revealed the 6-Steps how to invest in Properties and Real Estates

1. Decide To Be Investor
2. Find An Area
3. Identify Properties
4. Analyze, Offer and Negotiate
5. Put together the deal
6. Property Management

Franchising a Business

2007-04-12T23:35:00.001+08:00

Overview

The term "franchising" is used to describe business systems which may or may not fall into the legal definition provided above. For example, a vending machine operator may receive a franchise for a particular kind of vending machine, including a trademark and a royalty, but no method of doing business. This is called product franchising or trade name franchising.

A franchise agreement will usually specify the given territory the franchisee retains exclusive control over (the area protection), as well as the extent to which the franchisee will be supported by the franchisor (e.g. training and marketing campaigns).

Advantages

As practiced in retailing, franchising offers franchisees the advantage of starting up a new business quickly based on a proven trademark and formula of doing business, as opposed to having to build a new business and brand from scratch (often in the face of aggressive competition from franchise operators). A well run franchise would offer a turnkey business: from site selection to lease negotiation, training, mentoring and ongoing support as well as statutory requirements and troubleshooting.

After their brand and formula are carefully designed and properly executed, franchisors are able to expand rapidly across countries and continents, and can earn profits commensurate with their contribution to those societies. Additionally, the franchisor may choose to leverage the franchise to build a distribution network.

Franchisers often offer franchisees significant training, which is not available for free to individuals starting up their own business.

For some consumers, having franchises offer a consistent product or service makes life easier. They know what to expect when entering a franchised establishment. See franchise validation.

Disadvantages

For franchisees, the main disadvantage of franchising is a loss of control. While they gain the use of a system, trademarks, assistance, training, and marketing, the franchisee is required to follow the system and get approval for changes from the franchisor. For these reasons, franchisees and entrepreneurs are very different.

It can be expensive. Because of standards set by the franchiser, the franchisee often has no choice as to signage, shop fitting, uniforms etc. and may not be allowed to source less expensive alternatives. Added to that is the franchise fee and ongoing royalties and advertising contributions. The franchisee may also be contractually bound to spend money on upgrading or alterations as demanded by the franchiser from time to time.

In response to the soaring popularity of franchising, an increasing number of communities are taking steps to limit these chain businesses and reduce displacement of independent businesses through limits on "formula businesses."

Another problem is that the franchisor/franchisee relationship can easily cause conflict if either side is incompetent (or not acting in good faith). For example, an incompetent franchisee can easily damage the public's goodwill towards the franchisor's brand by providing inferior goods and services, and an incompetent franchisor can destroy its franchisees by failing to promote the brand properly or by squeezing them too aggressively for profits.

source: Wikipedia
-------

Stumbled upon some good links to franchising info and stuff. If you are planning to get a franchise, I suggest you visit the links:

http://www.franchise.mixph.com/
http://allfranchise.blogspot.com/
http://pinoyfranchising.blogspot.com/
http://www.franchisebrief.com/

What Quadrant are you?

2007-04-10T00:11:00.000+08:00

Cashflow Quadrant is a personal finance and investing book as the sequel to Rich Dad, Poor Dad. In it, Kiyosaki discusses what he calls the cashflow quadrant: a grid consisting of the letters E, S, B, and I. The cashflow quadrant itself is just an illustrative tool to show the difference between Employees, Self Employed/Small Business owners, Business owners (not directly involved in the day-to-day operation of the company), and Investors. Kiyosaki discusses the differences between concepts and ideas characteristic of each quadrant, particularly as they relate to passive income and tax advatages.

Part 1 | Part 2
(audio book)

How to be Successful in your Business

2007-04-09T00:13:00.001+08:00

Many people start a small business but not all of them succeed. One of the most important factors which determines the success of a small business is the correct choice of business corresponding to your business type. If you want to reach your goals you must know exactly what they are. It is very important to clearly formulate concrete measurable goals and set a deadline for their achievement. If the deadlines are realistic, it will be clear what must be done to achieve your goals on time. Do not postpone them but try to find ways to reach them on time. This will force you to become goal-oriented and will develop your ability to reach those deadlines punctually.

>> Do not trust only yourself while assessing the situation. You should ask for the opinion of experts in this kind of business. Familiarize yourself as much as possible with the kind of business you intend to start. Be aware of the difficulties this enterprise meets with. Try to determine if these difficulties are caused primarily by the businessman's faulty management or if perhaps they are specific to this business itself. Assess your capability to cope with these difficulties.

>> Try to understand how the consumers' needs can be answered by your goods or service and compose your commercial so that it will meet the current requirements of potential customers. Always be in contact with your customers. Send them catalogues and samples of your goods.

Create and support your business's brand. Give your business a name which reflects the essence of your enterprise, or your own name. Develop a logo or picture which represents your business. Create and run commercials. Distribute badges, fridge-magnets, etc. of your business among your customers.

>> Try to personalize your relations with the customer. Let him feel that you are selling your product personally to him, considering his wishes and demands. Provide the customer with an additional service free of charge. The grateful customer will buy your goods repeatedly and will recommend your business to others. There are various ways of showing your interest and friendly concern to the customer, from giving him useful advice about your product to sending small gifts and inviting him to specially organized festivities.

>> Do not push your product insistently to a potential customer when speaking to him. Point out your product's advantages and why it would be especially useful to him. Explain the product's different uses and make recommendations for its maintenance. If the customer trusts you, he will trust your product as well. If he is confident of your skills and knowledge, it is very probable that he will return for another purchase.

5 Lessons

2007-04-07T23:49:00.000+08:00

FIVE LESSONS FOR TODAY

LESSON 1
Standing in front of a shredder with a piece of paper in his hand,
"Listen," said the CEO, "this is a very sensitive and important
document, And my secretary has left. Can you make this thing work?"
"Certainly," said the young executive.
He turned the machine on, inserted the paper, and pressed the start
button.
"Excellent, excellent!" said the CEO as his paper disappeared inside
the Shredder machine. "I just need one copy."
LESSON I: "NEVER, NEVER ASSUME THAT YOUR BOSS KNOWS EVERYTHING"

LESSON 2
An American and a Japanese were sitting on the plane on the way to LA
When The American turned to the Japanese and asked, "What kind of -ese are
you?"
The Japanese confused, replied, "Sorry but I don't understand what
You Mean."
The American repeated, "What kind of -ese are you?"
Again, the Japanese was confused over he question.
The American, now irritated, then yelled, "What kind of -ese are you
... Are you a Chinese, Japanese, Vietnamese!, etc......???"
The Japanese then replied, "Oh, I am a Japanese."
A while later the Japanese turned to the American and asked What kind
Of 'key' was he.
The American, frustrated, yelled, "What do you mean what kind of
-kee'am I ?!"
The Japanese said, "Are you a Yankee, donkee, or monkee?"
LESSON II: "NEVER INSULT ANYONE"

LESSON 3
There were these 4 guys, a Russian, a German, an American and a
French, who Found this small genie bottle. When they rubbed the bottle, a genie
Appeared. Thankful that the 4 guys had released him out of the bottle,
He said, "Next to you all are 4 swimming pools, I will give each of
you A Wish. When you run towards the pool and jump, you shout what you want
the Pool of water to become, then your wish will come true."
The French wanted to start. He ran towards the pool, jumped and
shouted, "WINE".
The pool immediately changed into a pool of wine. The Frenchman was
So Happy swimming and drinking from the pool.
Next is the Russian's turn, he did the same and shouted, "VODKA" and
Immersed himself into a pool of vodka.
The German was next and he jumped and shouted, "BEER". He was so
Contented With his beer pool.
The last is the American. He was running towards the pool when
suddenly He Steps on a banana peel. He slipped towards the pool and shouted,
"****!!!!!!!........."
LESSON III: "THINK TWICE BEFORE YOU SAY SOMETHING, BECAUSE SOMETIMES
ACCIDENTS DO HAPPEN"

LESSON 4
The organs of the body were having a meeting, trying to decide who
was In Charge. Each organ took a turn to speak up:
Brain......... I should be in charge because I run all body functions.
Blood........ I should be in charge because I circulate oxygen for the Brain.
Stomach... I should be in charge because I process food to the brain.
Legs......... I should be in charge because I take the brain where it Wants To go.
Eyes......... I should be in charge because I let the brain see where it's Going.
@SSH0LE.....I should be in charge because I get rid of your waste.
All the other parts laughed so hard and this made the ******* very
mad.
To prove his point, the @SSH0LE immediately slammed tightly closed
And Stayed that way for 6 days, refusing to rid the body of any waste
whatsoever.
Day 1 - Brain got a terrible headache and cried out for relief
Day 2 - Stomach got bloated and began to ache terribly
Day 3 - Legs got cramps and Became unstable
Day 4 - Eyes became watery and vision became blurred
Day 5 - Blood became toxic and poisoned the body
Day 6 -The other organs agreed to let the @SSH0LE be in charge.
MORAL OF THE STORY: "NO MATTER WHO YOU ARE, OR HOW IMPORTANT YOU
THINK YOU
ARE, YOU WILL FIND THAT IT IS ALWAYS THE @SSH0LE THAT IS IN CHARGE"

LESSON 5
A junior manager, a senior manager and their boss are on their way to
A Meeting. On their way through a park, they come across a wonder lamp.
They Rub the lamp and a ghost appears.
The ghost says, "Normally, one is granted three wishes but as you are
Three, I will allow one wish each"
So the eager senior manager shouted, "I want the first wish. I want
to be In the Bahamas, on a fast boat and have no worries." Pfufffff. And he
was Gone.
Now the junior manager could not keep quiet and shouted "I want to be
In Florida with beautiful girls, plenty of food and cocktails."
Pfufffff. And He was also gone.
The boss calmly said, "I want these two idi0ts back in the office
After Lunch at 12.35pm."
MORAL OF THE STORY IS: "ALWAYS ALLOW THE BOSS TO SPEAK FIRST"

Business Plan Template

2007-04-07T23:25:00.000+08:00

What is a Business plan?

A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. is the document you create that details your business’ history, current standing and future plans. The business plan is the first document that most investors will see about your company. It may also contain background information about the organization or team attempting to reach those goals.

The success of a business is a matter of planning. For those people who wants to enter the "B" quadrant or in that quadrant, I suggest you make a Business Plan if you dont have one. You can download the template in M.S. Excel file.

Download (Excel File)
Thanks to Ken Gaebler for the file

The Heat is on

2007-04-06T14:52:00.000+08:00

"The Philippines is on its way to a major climate change catastrophe--that is, unless the government takes urgent and ambitious action to avert a disaster that will put millions of Filipinos at risk. Greenpeace issued the warning today during the release of never-before seen maps that illustrate the extent of climate change impacts on the archipelago. The group additionally called for strong measures to mitigate the worst effects of climate change to help the country avoid certain disaster.."

- source: GreenPeace

How hot will it be when I get older or reach my goal? The wind is so hot and unbearable on the afternoons that people opt to stay at home or hangout somewhere that has airconditioning units.
Not even electric fans won't save you. You' only get burned like a chicken on the grill. Good luck to the people doing Senakulo and Stations of the cross today. Skin cancer pah. At least the halohalo and ice candy are making money to some folks. Stop cutting trees or refrain from making more pollution. You know the drill. I know you do. We all want to retire rich and retire young and retire healthy so take some small measures to do your part.

Blog updates

2007-04-05T21:07:00.000+08:00

Been busy the whole day attending a seminar on soap making. Still rearranging some elements on the blog. Too bad my other friends are on vacation. No groupwork for now. Oh well. Read a copy of Business Mirror and I was happy to see that the inflation rate is down by 2%. I hope this keeps up. Read it here.

Welcome to F³!

2007-04-04T22:15:00.000+08:00

Well met, this is my first blog entry. Here, you can find some tools and some ebooks that you can use to get out of the Rat Race. By the way, to those who haven't read Robert Kiyosaki's Rich Dad, Poor Dad, I suggest you grab a copy of it. OR you can download the audio books.. thanks to people who uploaded it.

CD 1

CD 2

CD 3

Some info on financial freedom here.