Recently I have been looking into Internet Marketing, and have found some interesting things. It seems that there are all sorts of people out there that actually make a living off of the internet. And they don't even have their own products to sell. How is this possible? Through something called Affiliate Marketing.
What is Affiliate Marketing, you ask? Think of it like being a car salesman (minus the slimy part). You didn't make the car, you don't service the car, you just sell the car. Apparently, there are hundreds and thousands of different products out there that all have affiliate marketing programs. Basically, they pay you to sell their product. It's nothing new or crazy, it's been going on for years (think Avon and Tupperware). The difference is, there aren't a lot of people earning full time incomes selling Tupperware.
You can be an affiliate for Toys R Us, Credit Card companies, vacation companies, etc, etc, etc. There are physical products you can sell, and informational products you can sell. There are even some websites set up specifically for affiliate marketing (clickbank.com and commissionjunction.com are two of them). All you have to do is get people to buy the products. While the mechanics of it are a little more involved than that, the basic concept is simple.
It seems that it is a lot of work (link building, writting articles, etc) but can be very worth it in the end if you're able to make a go of it. While not for everyone, I definately recommend looking into it. If you would like more information, feel free to send me an email.
Dad
Monday, December 14, 2009
Sunday, December 6, 2009
Must be Doing Something Right
The other day my 5 year old daughter was "helping" me shovel the driveway of one of my customers. As we were working, she said to me: "Daddy, I know a way that you can make money. In the summer, you can mow people's lawns for money." Those few little words made me very happy. Who to teach their children good things? Who doesn't want them to learn those things? Obviously, she has been learning well, and I hope that as she grows, she will continue to learn good business principles.
As for me, I am still learning. One of the things that I am finding that I am very fascinated with is marketing. The ability to tell people about your product and convince them to buy it, all without meeting them (for the most part). I don't remember the number off hand, but people are bombarded with an enormous amount of advertisements every day. How can you get yourself to stand out from the crowd? How can you be noticed?
I'm still not really sure all of the details, but one thing that I am learning, is that people don't want to be bothered, especially with things they don't care about. That is why it is so vitally important to understand your target audience. Many entrepreneurs, when asked who their target market is, will respond with "Anyone who will buy something from me!" While that sounds great on the surface, here is why that is one of the most terrible and damaging attittude you can have towards marketing.
Let's say you are an automobile manufacturer. Let's say you're GM. Let's say you're trying to sell your brand new and improved Buick Century. In this example, you have only two advertising options. One is in a magazine about iPods, the other is in a magazine about retirement planning. Do you advertise in both then, to maximize your exposure? I realize this is an obvious example, but clearly, someone reading an iPod magazine is very unlikely to have any interest in a Buick. They are driving a Honda Civic or a Toyota Prius. They are more likely a youthful crowd that wants a small, efficient vehicle. Would you spend $10,000 for a magazine ad targeted at this group for your Buick? What about the retirement planning magazine? I would bet that the people reading that are a little older and more conservative. They want a bigger vehicle that is comfortable with a few luxuries but that won't break the bank. Perhaps they might be a better choice to try and reach? It seems so simple and obvious, but I see these kinds of things all the time.
What about those annoying jingles you always hear? The other day my daughter came home from a friend's birthday party with a pack of Juicy Fruit. As soon as I saw it, I started signing the Juicy Fruit song: "Juicy Fruit, it's gonna move ya!" Amazing advertising, right? Well, I'm not sure about everyone else, but I know for sure that I have never had any Juicy Fruit before.
These days, it is so vitaly important that you reach the right audience with an effective advertisement. Advertising can be very expensive, but I like to look at it like an investment. If you do your research and make sure you are reaching your target market, you can be sure that your advertising dollars are being well spent and are bringing you in money instead of just inserting silly jingles into people's heads.
Juicy fruit, the taste, the taste the taste is gonna move ya...
Dad
As for me, I am still learning. One of the things that I am finding that I am very fascinated with is marketing. The ability to tell people about your product and convince them to buy it, all without meeting them (for the most part). I don't remember the number off hand, but people are bombarded with an enormous amount of advertisements every day. How can you get yourself to stand out from the crowd? How can you be noticed?
I'm still not really sure all of the details, but one thing that I am learning, is that people don't want to be bothered, especially with things they don't care about. That is why it is so vitally important to understand your target audience. Many entrepreneurs, when asked who their target market is, will respond with "Anyone who will buy something from me!" While that sounds great on the surface, here is why that is one of the most terrible and damaging attittude you can have towards marketing.
Let's say you are an automobile manufacturer. Let's say you're GM. Let's say you're trying to sell your brand new and improved Buick Century. In this example, you have only two advertising options. One is in a magazine about iPods, the other is in a magazine about retirement planning. Do you advertise in both then, to maximize your exposure? I realize this is an obvious example, but clearly, someone reading an iPod magazine is very unlikely to have any interest in a Buick. They are driving a Honda Civic or a Toyota Prius. They are more likely a youthful crowd that wants a small, efficient vehicle. Would you spend $10,000 for a magazine ad targeted at this group for your Buick? What about the retirement planning magazine? I would bet that the people reading that are a little older and more conservative. They want a bigger vehicle that is comfortable with a few luxuries but that won't break the bank. Perhaps they might be a better choice to try and reach? It seems so simple and obvious, but I see these kinds of things all the time.
What about those annoying jingles you always hear? The other day my daughter came home from a friend's birthday party with a pack of Juicy Fruit. As soon as I saw it, I started signing the Juicy Fruit song: "Juicy Fruit, it's gonna move ya!" Amazing advertising, right? Well, I'm not sure about everyone else, but I know for sure that I have never had any Juicy Fruit before.
These days, it is so vitaly important that you reach the right audience with an effective advertisement. Advertising can be very expensive, but I like to look at it like an investment. If you do your research and make sure you are reaching your target market, you can be sure that your advertising dollars are being well spent and are bringing you in money instead of just inserting silly jingles into people's heads.
Juicy fruit, the taste, the taste the taste is gonna move ya...
Dad
Sunday, November 29, 2009
Let's talk Realtors
I'd like to spend some time this week talking about Realtors. I'm sure we are all very familiar with Realtors; they're the ones all over the bus stops that someone drew a funny mustache on. Most of you reading this have probably had direct dealings with a Realtor at one point or another.
There are Realtors, and there are Real Estate Agents. This may be different in the US, but in Canada, there is a difference between the two. Both are licensed to sell Real Estate, however, Realtors must subscribe to the Realtor code of ethics. I won't delve into that here, suffice it to say that Realtors are held to a much stricter code. If you would like to learn more about that, there is an excellent article on the subject here: http://homebuying.about.com/od/realestateagents/qt/RealtorvsAgent.htm . Just know that there is a difference, and all things being equal, a Realtor is potentially slightly safer than a Real Estate Agent.
So, the big question is: how can a Realtor make me rich? Don't they charge great big fees to sell my house? They certainly do, and in my opinion they are worth every penny. If you are trying to sell a property or even a business, they will work extremely hard for you and get you far greater exposure than you can on your own (especially in Canada with the MLS system).
Where I think they really shine though, is when you are buying an investment property. When you hire a Realtor to help you find and buy a property, you are hiring the services of someone who will scour the listings for properties that match your criteria, someone who knows the market and what the prices should be, someone who is an excellent negotiator and can easily save you thousands of dollars (mine saved me $14,000 on my last purchase - I was prepared to pay the asking price), someone that can put you in touch with other needed services (lawyers, mortgage brokers, locksmiths, electricians, etc, etc, etc). The best part of all of this, however, is that you don't pay them a single cent, the seller pays. You can argue all you like that the seller will just charge more for the house, but the fact is, the house is worth what the market says it's worth.
I can tell you from experience, it is very hard finding good investment properties that will make you money. Instead of trying to find them yourself, why not send your Realtor out there to find them for you? You still make the final decision on whether to buy it or not, and when you do, and you're ready to go, send your Realtor in to do all the dirty work. Talk about leveraging someone else's time!
Hats off to all of you Realtors out there and the valuable service you provide. Keep making us richer!
Dad
There are Realtors, and there are Real Estate Agents. This may be different in the US, but in Canada, there is a difference between the two. Both are licensed to sell Real Estate, however, Realtors must subscribe to the Realtor code of ethics. I won't delve into that here, suffice it to say that Realtors are held to a much stricter code. If you would like to learn more about that, there is an excellent article on the subject here: http://homebuying.about.com/od/realestateagents/qt/RealtorvsAgent.htm . Just know that there is a difference, and all things being equal, a Realtor is potentially slightly safer than a Real Estate Agent.
So, the big question is: how can a Realtor make me rich? Don't they charge great big fees to sell my house? They certainly do, and in my opinion they are worth every penny. If you are trying to sell a property or even a business, they will work extremely hard for you and get you far greater exposure than you can on your own (especially in Canada with the MLS system).
Where I think they really shine though, is when you are buying an investment property. When you hire a Realtor to help you find and buy a property, you are hiring the services of someone who will scour the listings for properties that match your criteria, someone who knows the market and what the prices should be, someone who is an excellent negotiator and can easily save you thousands of dollars (mine saved me $14,000 on my last purchase - I was prepared to pay the asking price), someone that can put you in touch with other needed services (lawyers, mortgage brokers, locksmiths, electricians, etc, etc, etc). The best part of all of this, however, is that you don't pay them a single cent, the seller pays. You can argue all you like that the seller will just charge more for the house, but the fact is, the house is worth what the market says it's worth.
I can tell you from experience, it is very hard finding good investment properties that will make you money. Instead of trying to find them yourself, why not send your Realtor out there to find them for you? You still make the final decision on whether to buy it or not, and when you do, and you're ready to go, send your Realtor in to do all the dirty work. Talk about leveraging someone else's time!
Hats off to all of you Realtors out there and the valuable service you provide. Keep making us richer!
Dad
Sunday, November 22, 2009
Real Estate, Business, and Investing
I've been reading a fair bit lately about what I'll call the "Three main ways to make money besides working for someone else", which are real estate, business, and investing, and I've found something interesting. If you talk to a real estate guy, you will hear something like this: "My parents bought their house in 1963 for $10,000 and now, in 2009, it is worth $500,000. Where else can you find returns like this?"
If you talk to a business guy, you will hear something like this: "I started a business with nothing but a bucket of nails and a hammer, now I run the largest construction company in town. Where else can you find returns like this?"
If you talk to an investor guy, you will hear something like this: "I bought stocks in Microsoft when it was still worth $1/share, then I sold it a few years later after it had split several times for $40/share. Where else can you find returns like this?"
Of course, everyone loves his/her field the best. But who is right? Donald Trump is certainly not doing too bad with real estate. I think Bill Gates has the business thing down pat. And I don't think anyone would argue that Warren Buffet is doing fairly well in the investing world.
So, it seems to me, that they are all right. So the question becomes, what are you interested in? All three of these vehicles to wealth have their own pros and cons. They each seem to suit a different personality type a little better. For example, if you hate people, you might want to consider getting in to investing. But really, they all can work to generate a lot of wealth for you if you know how to harness them.
It seems to me that the key really seems to be leverage. What is leverage? To a cave-man, it's putting a stick under a rock to pry it out of the way. To us savy internet types, leverage is taking advantage of someone else's time or money to make more money for ourself.
Example #1 (no leverage): Work 40 hours/week @ $20/hour. Gross profit = $800
Example #2 (leverage someone else's time): Pay 4 people $20/hour to work 40 hours/week. Each person can produce $40 of product or service/hour. Total paid to people = $3200. Gross profit = $6400 Net Profit = $3200
Example #2 seems a little more attractive, does it not? At the end of 1 week, you made 4 times as much money. This is an example of leverage someone else's time. You can get far more done if you hire other people to do it.
How about other people's money?
Example #1 (no leverage): Buy an investment property for $200,000 cash, no mortgage. Hold it for 5 years, sell it for $250,000. Gross profit=$50,000. Return on investment = 25%
Example #2 (leverage someone else's money): Buy the same property worth $200,000, but only put $25,000 down and get a mortgage for the rest. Hold it for the same 5 years and sell for the same $250,000. Gross profit still = $50,000 But Return on Investment = 200%. If you had $200,000, you could potentially buy 8 properties instead of just one and make $400,000 in 5 years instead of just $50,000.
It seems to me, whether you want to be a real estate mogul, a business guru, or an investment tycoon, you can make large sums of money, as long as you learn to use leverage.
Hooray for other people's money and time!
Dad
If you talk to a business guy, you will hear something like this: "I started a business with nothing but a bucket of nails and a hammer, now I run the largest construction company in town. Where else can you find returns like this?"
If you talk to an investor guy, you will hear something like this: "I bought stocks in Microsoft when it was still worth $1/share, then I sold it a few years later after it had split several times for $40/share. Where else can you find returns like this?"
Of course, everyone loves his/her field the best. But who is right? Donald Trump is certainly not doing too bad with real estate. I think Bill Gates has the business thing down pat. And I don't think anyone would argue that Warren Buffet is doing fairly well in the investing world.
So, it seems to me, that they are all right. So the question becomes, what are you interested in? All three of these vehicles to wealth have their own pros and cons. They each seem to suit a different personality type a little better. For example, if you hate people, you might want to consider getting in to investing. But really, they all can work to generate a lot of wealth for you if you know how to harness them.
It seems to me that the key really seems to be leverage. What is leverage? To a cave-man, it's putting a stick under a rock to pry it out of the way. To us savy internet types, leverage is taking advantage of someone else's time or money to make more money for ourself.
Example #1 (no leverage): Work 40 hours/week @ $20/hour. Gross profit = $800
Example #2 (leverage someone else's time): Pay 4 people $20/hour to work 40 hours/week. Each person can produce $40 of product or service/hour. Total paid to people = $3200. Gross profit = $6400 Net Profit = $3200
Example #2 seems a little more attractive, does it not? At the end of 1 week, you made 4 times as much money. This is an example of leverage someone else's time. You can get far more done if you hire other people to do it.
How about other people's money?
Example #1 (no leverage): Buy an investment property for $200,000 cash, no mortgage. Hold it for 5 years, sell it for $250,000. Gross profit=$50,000. Return on investment = 25%
Example #2 (leverage someone else's money): Buy the same property worth $200,000, but only put $25,000 down and get a mortgage for the rest. Hold it for the same 5 years and sell for the same $250,000. Gross profit still = $50,000 But Return on Investment = 200%. If you had $200,000, you could potentially buy 8 properties instead of just one and make $400,000 in 5 years instead of just $50,000.
It seems to me, whether you want to be a real estate mogul, a business guru, or an investment tycoon, you can make large sums of money, as long as you learn to use leverage.
Hooray for other people's money and time!
Dad
Sunday, November 15, 2009
I missed the boat
Well...whoops. I guess I've missed the regularity boat. I won't make excuses, but I will say, twice a week seems to be a little much, so I'm going to pare down to posting every Sunday night. Or, at least, trying to post every Sunday night.
I'd like to comment tonight on the value of working for free, and just how big of a payback you can get from it. I've mentioned that I've managed to secure myself a mentor who is a few steps ahead of me. It really was a simple thing to do, but it required a big leap on my part. He owns a retail store and I have done some electrical work for him in the past. So far we have traded work for merchandise, which has worked very well for both of us.
This time though, he had the fairly large job of replacing all of the lights in his store. When he asked me to do the job, he was intending again to trade for merchandise or pay me cash. My business partner and I, however, had previously discussed that he would be a very valuable mentor to us, and so I offered to do the work for free, in exchange for him being our mentor. It was a big leap for me to offer that, as the work would have been worth a large sum, and I also had to take a week off of my own job in order to do it. But I made the offer, and he very gratefully accepted. I have now finished the work and have acquired a very valuable mentor. He is eager to help us out, and in fact, already has given us a ton of advice. He has told me that he may be willing to invest with us if we had the right deal, and while I prefer to keep him as a mentor, that is a huge offer in itself. I have just finished working with him installing the lights this past week, and in that week I have learned a huge amount of very valuable information. He has experience, he has education, and he seems very impressed with us. He has the potential of saving us years of learning and mistakes. Besides that, he has referred me to another job that is also worth a large sum of money, as well as pointing me in the direction that I need to be taking my business ventures. I can take a business deal to him and he will tell me if it is good or not.
I guess what I am trying to say, is that I just bought one of the most valuable assets available, and all it cost me was a week. If you are just starting out in business, or trying to learn a new aspect of business, there are people out there who have been where you are and who already know what you need to know. They are often willing to help. But be aware, successful people are pitched to all the time, and they are successful precisely because they don't fool around. Find someone who knows what you need, show them that you are serious, show them that you are worth their time, and you will be paid back exponentially for your efforts. Or, you could just make a few bucks and move on to the next job. The choice is yours.
Dad
I'd like to comment tonight on the value of working for free, and just how big of a payback you can get from it. I've mentioned that I've managed to secure myself a mentor who is a few steps ahead of me. It really was a simple thing to do, but it required a big leap on my part. He owns a retail store and I have done some electrical work for him in the past. So far we have traded work for merchandise, which has worked very well for both of us.
This time though, he had the fairly large job of replacing all of the lights in his store. When he asked me to do the job, he was intending again to trade for merchandise or pay me cash. My business partner and I, however, had previously discussed that he would be a very valuable mentor to us, and so I offered to do the work for free, in exchange for him being our mentor. It was a big leap for me to offer that, as the work would have been worth a large sum, and I also had to take a week off of my own job in order to do it. But I made the offer, and he very gratefully accepted. I have now finished the work and have acquired a very valuable mentor. He is eager to help us out, and in fact, already has given us a ton of advice. He has told me that he may be willing to invest with us if we had the right deal, and while I prefer to keep him as a mentor, that is a huge offer in itself. I have just finished working with him installing the lights this past week, and in that week I have learned a huge amount of very valuable information. He has experience, he has education, and he seems very impressed with us. He has the potential of saving us years of learning and mistakes. Besides that, he has referred me to another job that is also worth a large sum of money, as well as pointing me in the direction that I need to be taking my business ventures. I can take a business deal to him and he will tell me if it is good or not.
I guess what I am trying to say, is that I just bought one of the most valuable assets available, and all it cost me was a week. If you are just starting out in business, or trying to learn a new aspect of business, there are people out there who have been where you are and who already know what you need to know. They are often willing to help. But be aware, successful people are pitched to all the time, and they are successful precisely because they don't fool around. Find someone who knows what you need, show them that you are serious, show them that you are worth their time, and you will be paid back exponentially for your efforts. Or, you could just make a few bucks and move on to the next job. The choice is yours.
Dad
Sunday, November 1, 2009
Pay Yourself First
I'd like to talk a little bit about this phrase that we have all heard many, many times from many, many sources. I have been hearing this for years and years and years. I always thought I knew what it meant. It's easy, right? Just throw $50 from my paycheck into savings and away I go. Well, guess how much savings that has gotten me? Not much. There always seems to be something else that needs to be payed first. Bills, outings, whatever. Or, once the savings reaches a decent number, it is always very tempting to use it to pay off a bit of debt, or go on a holiday, or buy something I want/need.
What I've learned recently, is that I've been doing it all wrong. I'm sure you all knew this before, but here's how it should work. Let's say every 2 weeks I get paid $2000. Before I even touch any of that, I have setup automatic transfers to take some of that money away and pay me first. Let's say $75 to my RRSP (401K for you Americans), $75 to my TFSA (Roth IRA), and $50 to a high interest savings account, for a total of $200, or 10% of my net. Before I even had a chance to touch that money, it's gone. That's the easy part. Now, here's where I (and everybody else) get into trouble. Let's say my hard expenses every 2 weeks come to $1500. Mortgage/rent, taxes, utilities, groceries, insurance, car, all that stuff. But this month, my car broke down and I need to get it fixed. It costs $500. So, $2000 - $200 = $1800. $1800 - $1500 = $300 discretionary income. $300 - $500 car repair = oh wait, I'll just take that from my savings account. Now my money, my savings account, just went to pay some guy to fix my car.
Or how about I decide to buy a house and I don't quite have enough for the down payment. No problem, I have $30,000 in my retirement fund. I'll just take that out (both the US and Canadian systems allow for this without taking a tax panalty as long as it is paid back in a specified period of time) and use it on my house. The trouble is, even if I pay that back in 5 years (which is a reasonable amount of time) that one little move just cost me a LOT of money. Let's say I was 30 when I took that money out and I'm going to retire at 60. So, over those 5 years, at 8% return (the market average since Moses parted the Red Sea) my $30,000 would have grown to almost $45,000. In 30 years, it would have grown to just over $300,000. But now, because I didn't pay it back for 5 years, I only have 25 years for it to grow. That means it is now worth only $205,000. That one move cost me $95,000!! All because I didn't understand what they meant when they said to "pay yourself first".
So, what's the alternative? Well, I'll let SNL explain it: http://garritson.com/videos/pages/dontbuystuff.htm
Don't buy stuff you cannot afford. Simple. Sure, I might have to wait a couple of years to put a downpayment on that house, but that's what my high interest savings account is for. Figure out how much you'll need, when you'll need/want it, and then you know how much you have to put away every month for it. When the time comes, you will have the money.
I highly recommend reading the book "I will teach you to be rich" by Ramit Sethi. He also has a very informative blog, http://www.iwillteachyoutoberich.com/. He explains it all a lot better than I do.
Dad
What I've learned recently, is that I've been doing it all wrong. I'm sure you all knew this before, but here's how it should work. Let's say every 2 weeks I get paid $2000. Before I even touch any of that, I have setup automatic transfers to take some of that money away and pay me first. Let's say $75 to my RRSP (401K for you Americans), $75 to my TFSA (Roth IRA), and $50 to a high interest savings account, for a total of $200, or 10% of my net. Before I even had a chance to touch that money, it's gone. That's the easy part. Now, here's where I (and everybody else) get into trouble. Let's say my hard expenses every 2 weeks come to $1500. Mortgage/rent, taxes, utilities, groceries, insurance, car, all that stuff. But this month, my car broke down and I need to get it fixed. It costs $500. So, $2000 - $200 = $1800. $1800 - $1500 = $300 discretionary income. $300 - $500 car repair = oh wait, I'll just take that from my savings account. Now my money, my savings account, just went to pay some guy to fix my car.
Or how about I decide to buy a house and I don't quite have enough for the down payment. No problem, I have $30,000 in my retirement fund. I'll just take that out (both the US and Canadian systems allow for this without taking a tax panalty as long as it is paid back in a specified period of time) and use it on my house. The trouble is, even if I pay that back in 5 years (which is a reasonable amount of time) that one little move just cost me a LOT of money. Let's say I was 30 when I took that money out and I'm going to retire at 60. So, over those 5 years, at 8% return (the market average since Moses parted the Red Sea) my $30,000 would have grown to almost $45,000. In 30 years, it would have grown to just over $300,000. But now, because I didn't pay it back for 5 years, I only have 25 years for it to grow. That means it is now worth only $205,000. That one move cost me $95,000!! All because I didn't understand what they meant when they said to "pay yourself first".
So, what's the alternative? Well, I'll let SNL explain it: http://garritson.com/videos/pages/dontbuystuff.htm
Don't buy stuff you cannot afford. Simple. Sure, I might have to wait a couple of years to put a downpayment on that house, but that's what my high interest savings account is for. Figure out how much you'll need, when you'll need/want it, and then you know how much you have to put away every month for it. When the time comes, you will have the money.
I highly recommend reading the book "I will teach you to be rich" by Ramit Sethi. He also has a very informative blog, http://www.iwillteachyoutoberich.com/. He explains it all a lot better than I do.
Dad
Wednesday, October 28, 2009
Virtual Assistants
Well, here I am just squeaking past my self-appointed deadline. The nifty auto-post feature didn't help either. I guess you have to write the post first before it will publish it.
I thought I would talk a little about a very cool discovery I have made. So many times I have had a small task to complete that was simply beyond my means to do well. I struggled and struggled until I was finally able to eek out a barely passable sample of whatever it was I needed to produce. Had I known about Virtual Assistants, I could have saved myself hours and hours for just a few dollars. Have you ever needed to design a website? Translate a document? Stuff 10,000 envelopes? Whether it is beyond your skill, or you just don't have time, a Virtual Assistant can do it for you. It's like having a part-time employee that you only have to pay when you need them.
Basically, a Virtual Assistant is a freelance (fill-in-the-blank) that will work on a job-by-job basis. You might need to design a database, or write up a legal document, or just type up some notes. Whatever it is, I think you could find someone to do it. This allows you to free up your time for more important things, like growing your business. I have found a few different Virtual Assistant websites, but the one I have found that I like the most is www.elance.com. It is basically a big job board. If you are looking for someone to do work, you post what you need done and the freelancers will bid on your job. You then pick the one you like the most. If you are looking for work, you can sign up, create a profile, and start bidding on jobs that people post. This is amazing for all those stay-at-home moms that need to bring in a little extra income, or for students, or just anyone that needs or wants a bit of extra money.
Check it out when you have the chance. Whether you need something done or you need a job, you can't go wrong!
Dad
I thought I would talk a little about a very cool discovery I have made. So many times I have had a small task to complete that was simply beyond my means to do well. I struggled and struggled until I was finally able to eek out a barely passable sample of whatever it was I needed to produce. Had I known about Virtual Assistants, I could have saved myself hours and hours for just a few dollars. Have you ever needed to design a website? Translate a document? Stuff 10,000 envelopes? Whether it is beyond your skill, or you just don't have time, a Virtual Assistant can do it for you. It's like having a part-time employee that you only have to pay when you need them.
Basically, a Virtual Assistant is a freelance (fill-in-the-blank) that will work on a job-by-job basis. You might need to design a database, or write up a legal document, or just type up some notes. Whatever it is, I think you could find someone to do it. This allows you to free up your time for more important things, like growing your business. I have found a few different Virtual Assistant websites, but the one I have found that I like the most is www.elance.com. It is basically a big job board. If you are looking for someone to do work, you post what you need done and the freelancers will bid on your job. You then pick the one you like the most. If you are looking for work, you can sign up, create a profile, and start bidding on jobs that people post. This is amazing for all those stay-at-home moms that need to bring in a little extra income, or for students, or just anyone that needs or wants a bit of extra money.
Check it out when you have the chance. Whether you need something done or you need a job, you can't go wrong!
Dad
Sunday, October 25, 2009
Stay regular...with your blogging, I mean
All of the "Blogging tips" websites say that it is important to be regular with your blogging. Don't just post here and there and everywhere (sort of like I've been doing). I've decided it would be nice if I could have a post every Sunday night and every Wednesday. That seemed like it might be a pain until I discovered that nifty little option that allows me to write a post whenever I want and have it publish at a scheduled time. Handy.
So, let's talk a little bit about mentors. First off, what is a mentor? Dictionary.com says it is:
So, a mentor is a counselor/teacher, or supporter. In a business context, a mentor is someone who has been where you want to go, and is willing to help you get there as well. This may or may not be in exchange for something of value. A lot of people just want to help others out, and expect nothing in return. Some people want to see some initiative before offering assistance. Some hold courses and charge money for their mentoring services. Either way, I think having a mentor is something that can prove invaluable to your growth.
Where do I find a mentor? Well, I hate to sound simplistic, but just think of what it is you want to do, find someone who is doing it, and talk to them. Offer them your services for free, befriend them, whatever. If your lifelong dream is to open a flower shop, go to a flower shop. Get to know the owner. Maybe offer to work for a couple of hours for free in exchange for advice. Maybe take him/her out for lunch and pick his/her brains. It might be a little scary, you might have to get outside of your comfort zone, but that's the only way you are going to grow.
Let me tell you how I have managed to find a valuable mentor, and hopefully that will inspire you to do the same. As it mentions in my profile, I am currently working as an electrician. I have a friend who owns a store that I have done work for in the past. Up until now, I have have traded my services for some of his merchandise. This has worked well, but I recently got to thinking. This individual started a successful landscaping company and sold it for a large sum of money. This individual is currently running a successful business. This individual has been where I am trying to go, and could provide a lot of valuable insight. So, awhile ago he asked me if I could help him replace all of the lights in his store. He has some really old lights that suck up a lot of power. They cost him a lot of money, and half of them don't work. At first, we had talked about doing some more trading. But then I decided to do something crazy. I told him I would do it for free. All I wanted in exchange was some mentorship. I told him of my business plans and what I hope to do, and he agreed that he knew quite a bit about those things. He seemed quite impressed by my offer, and is more than willing to help out. There was even some hints at possible partnership. I know that nothing is written in stone, and I don't like to be presumptuous or jump to conclusions, but either way, I see nothing but good coming from this. My business partner and I will be meeting with him this week to go over what I have so far and I am very excited at what he has to teach us.
It was hard look at the possible money/trades I could have received instead for doing the work (easily worth $1500-$2000) and turn them down, but I don't think I can put a value on the kind of things he can teach us. Bottom line: if you can find a mentor, DO IT! They've done what you're trying to do. They know the pitfalls, they know the challenges, they know how to avoid them. They can take years off of your learning curve. How can you say no to that?
Dad
So, let's talk a little bit about mentors. First off, what is a mentor? Dictionary.com says it is:
| 1. | a wise and trusted counselor or teacher. |
| 2. | an influential senior sponsor or supporter. |
Where do I find a mentor? Well, I hate to sound simplistic, but just think of what it is you want to do, find someone who is doing it, and talk to them. Offer them your services for free, befriend them, whatever. If your lifelong dream is to open a flower shop, go to a flower shop. Get to know the owner. Maybe offer to work for a couple of hours for free in exchange for advice. Maybe take him/her out for lunch and pick his/her brains. It might be a little scary, you might have to get outside of your comfort zone, but that's the only way you are going to grow.
Let me tell you how I have managed to find a valuable mentor, and hopefully that will inspire you to do the same. As it mentions in my profile, I am currently working as an electrician. I have a friend who owns a store that I have done work for in the past. Up until now, I have have traded my services for some of his merchandise. This has worked well, but I recently got to thinking. This individual started a successful landscaping company and sold it for a large sum of money. This individual is currently running a successful business. This individual has been where I am trying to go, and could provide a lot of valuable insight. So, awhile ago he asked me if I could help him replace all of the lights in his store. He has some really old lights that suck up a lot of power. They cost him a lot of money, and half of them don't work. At first, we had talked about doing some more trading. But then I decided to do something crazy. I told him I would do it for free. All I wanted in exchange was some mentorship. I told him of my business plans and what I hope to do, and he agreed that he knew quite a bit about those things. He seemed quite impressed by my offer, and is more than willing to help out. There was even some hints at possible partnership. I know that nothing is written in stone, and I don't like to be presumptuous or jump to conclusions, but either way, I see nothing but good coming from this. My business partner and I will be meeting with him this week to go over what I have so far and I am very excited at what he has to teach us.
It was hard look at the possible money/trades I could have received instead for doing the work (easily worth $1500-$2000) and turn them down, but I don't think I can put a value on the kind of things he can teach us. Bottom line: if you can find a mentor, DO IT! They've done what you're trying to do. They know the pitfalls, they know the challenges, they know how to avoid them. They can take years off of your learning curve. How can you say no to that?
Dad
Tuesday, October 20, 2009
Assets and Liabilities
First off, I'd just like to announce that we have our first ever snow clearing customer. I'm very excited. It's not much, but it's a start. I'm hoping we can add a couple more before winter really gets going. I've put a lot of work into this business and have been pretty much eating and sleeping it since the start of September trying to get it going in time, so it's nice to start to see some payout.
Now that's out of the way...The next lesson that I would like to pass on that I have learned is one that is very basic, yet so very, very important. It is something that many people are confused about, and once you have learned it, it will make a world of difference to you.
Assets and Liabilities...what are they? Well, we all learn when we go to get a bank loan that assets are things like houses, cars, and mutual funds, and liabilities are things like debt. Unfortunately, that is not exactly the truth. If you look up the word asset in the dictionary, you will get a definition that supports the standard definition of the word "asset": an item of value owned. Likewise the word liability: something for which one is liable.
To all of us middle class and poor people, these definitions of the words "asset" and "liability" are sufficient. It is all we really need to know. To get a loan, you need an "asset" to back it up, like a house or cash. If you have too much "liability", you won't get a loan. That's about as much experience as most of us will ever have with the words.
To rich people, however, these words have a much more useful meaning. It is very simple, but has a profound significance. An asset is anything that I own that puts money in my pocket. A liability is anything that takes money out of my pockets. Why does this difference matter? Because what most people assume to be their biggest asset, their house, is actually their biggest liability. I don't know about any of you, but my house does not make me any money at all. In fact, it costs me money. A lot of money. It is a liability, not an asset. An example of an asset that I own is my yard care business. It puts money in my pocket (or will soon, anyway).
The reason this is so important is this: rich people buy assets. Poor and middle class people buy liabilities. That one teeny little difference makes all the difference in the world. If I am rich and I have $1000, I will buy a stock, or put it towards some real estate, or something else like that. If I am poor or middle class and I have $1000, I will buy a new TV, or go on a weekend getaway, or something like that. After awhile of buying assets, the rich person will be making money and will then have enough to buy a new TV and go on a weekend getaway, and will still have the original $1000. After awhile of buying liabilities, us poor and middle class people will have a house full of junk and a maxed out credit card.
Since learning this, I have personally committed to never buy a single thing for myself again that I don't absolutely need unless the money has come from the proceeds of an asset. I have not asked my wife and children to commit to this yet, but when I have reached that goal for myself, they will be following suit. Instead, I am taking that money and buying assets. For example, I just acquired a DNS registry website that can make me $300-$500 per month. That is an asset. I plan to acquire many more.
There are different types of assets, among them: real estate, businesses, portfolio (paper assets like stocks and bonds) and intellectual property. Look around and I guarantee you will find something that you can afford. As I mentioned in a previous post, there are plenty of opportunities out there.
I can't stress enough, stop buying liabilities! We are all doing it, and if we ever want to get ahead, we need to take that money and buy assets instead. Think of the last big ticket item you bought. I'm thinking of what I bought, and it cost $400. I had no problem spending that $400, but when thinking of investing, there was no money. Imagine if, evertime you ever bought something like a TV, car, boat, bike, etc, you had purchased an asset instead. Think how much money you've spent in the last year, and now imagine what you could have done with that money had you invested it in something. Imagine all the junk you could buy if you had $50,000 generating you $5000 every year. Double that. Triple that. It's not that hard. I am on my way. I hope to see you all when I get there.
Dad
Now that's out of the way...The next lesson that I would like to pass on that I have learned is one that is very basic, yet so very, very important. It is something that many people are confused about, and once you have learned it, it will make a world of difference to you.
Assets and Liabilities...what are they? Well, we all learn when we go to get a bank loan that assets are things like houses, cars, and mutual funds, and liabilities are things like debt. Unfortunately, that is not exactly the truth. If you look up the word asset in the dictionary, you will get a definition that supports the standard definition of the word "asset": an item of value owned. Likewise the word liability: something for which one is liable.
To all of us middle class and poor people, these definitions of the words "asset" and "liability" are sufficient. It is all we really need to know. To get a loan, you need an "asset" to back it up, like a house or cash. If you have too much "liability", you won't get a loan. That's about as much experience as most of us will ever have with the words.
To rich people, however, these words have a much more useful meaning. It is very simple, but has a profound significance. An asset is anything that I own that puts money in my pocket. A liability is anything that takes money out of my pockets. Why does this difference matter? Because what most people assume to be their biggest asset, their house, is actually their biggest liability. I don't know about any of you, but my house does not make me any money at all. In fact, it costs me money. A lot of money. It is a liability, not an asset. An example of an asset that I own is my yard care business. It puts money in my pocket (or will soon, anyway).
The reason this is so important is this: rich people buy assets. Poor and middle class people buy liabilities. That one teeny little difference makes all the difference in the world. If I am rich and I have $1000, I will buy a stock, or put it towards some real estate, or something else like that. If I am poor or middle class and I have $1000, I will buy a new TV, or go on a weekend getaway, or something like that. After awhile of buying assets, the rich person will be making money and will then have enough to buy a new TV and go on a weekend getaway, and will still have the original $1000. After awhile of buying liabilities, us poor and middle class people will have a house full of junk and a maxed out credit card.
Since learning this, I have personally committed to never buy a single thing for myself again that I don't absolutely need unless the money has come from the proceeds of an asset. I have not asked my wife and children to commit to this yet, but when I have reached that goal for myself, they will be following suit. Instead, I am taking that money and buying assets. For example, I just acquired a DNS registry website that can make me $300-$500 per month. That is an asset. I plan to acquire many more.
There are different types of assets, among them: real estate, businesses, portfolio (paper assets like stocks and bonds) and intellectual property. Look around and I guarantee you will find something that you can afford. As I mentioned in a previous post, there are plenty of opportunities out there.
I can't stress enough, stop buying liabilities! We are all doing it, and if we ever want to get ahead, we need to take that money and buy assets instead. Think of the last big ticket item you bought. I'm thinking of what I bought, and it cost $400. I had no problem spending that $400, but when thinking of investing, there was no money. Imagine if, evertime you ever bought something like a TV, car, boat, bike, etc, you had purchased an asset instead. Think how much money you've spent in the last year, and now imagine what you could have done with that money had you invested it in something. Imagine all the junk you could buy if you had $50,000 generating you $5000 every year. Double that. Triple that. It's not that hard. I am on my way. I hope to see you all when I get there.
Dad
Friday, October 16, 2009
Some unexpected concerns
Well, the great news is that I've started to have some response to my advertising. I've found though, that people are having some unexpected concerns when they contact us back. I can't say I blame them, but I'll have to figure out a way to alleviate those concerns. The problem people are having, is that because we are so new, they are worried we are going to scam them and take off with their money. In retrospect, that is a very valid concern, and something I never really thought of. So far we have 1 contract to be signed on Tuesday, and another that we are waiting to hear back from (maybe we might be waiting a long time!) I think what I may start offering is payment at the end of the month, rather than the beginning. One more hurdle to jump.
On another note, I wrote before that opportunities are everywhere, and now that I've started looking, they sure are! I've been looking through listings of businesses for sale in my area and there are some great fits. My criteria:
- Low maintenance/high employee involvement (if I can pay someone else to run it, even better)
- Positive cash flow (should be a no brainer)
- Low buy-in cost (because I don't have much to buy in with)
I've found at least 6 that fit those criteria. How about this one: It is a line of products that is sold on consignment out of another store. So all that is needed is to bring the product to the store. Total cash flow: $7000-$8000/year. Cost of the business: $40,000. And it sells metaphysical gifts. I don't even know what those are. But if I did, I'd be all over that.
Tanning salon? Positive cash flow, 5 employees that run the place, $80,000 to purchase it. Room to expand. Except my wife doesn't like tanning salons. But besides that, another great business opportunity.
Driving school for sale. Owners are retiring. Asking $85,000. Grosses $107,000 annually. 4 employees. A little more money than I have right now, but that would be a hard one to turn down.
Candy vending machine business for sale. Owner paid $21,000 for it 2 years ago and brings in $200 a week for 4 hours of work. Needs to sell in a hurry, so he's asking $5,500 for it. Holy cow!! That would pay itself back in less than a year! Antonio, answer your phone, I want to buy your business!! He's probably already sold it, but this would be almost perfect.
Two websites for sale. I won't say which ones, b/c I think these ones are just what I am looking for. $2300 for the two of them. Between them they bring in about $2000-$3000/year. No, that isn't very much. But they are 99% automated. There is almost nothing to do but collect the money. The owner is selling b/c he needs capital for another project. Hello passive income.
Of course, you should verify the claims of the business owners. Check financial statements, customer records, etc. I imagine a lawyer would help (mental note: don't forget to call my lawyer).
So get out there and start looking. Opportunities abound! Build up that asset column.
Dad
On another note, I wrote before that opportunities are everywhere, and now that I've started looking, they sure are! I've been looking through listings of businesses for sale in my area and there are some great fits. My criteria:
- Low maintenance/high employee involvement (if I can pay someone else to run it, even better)
- Positive cash flow (should be a no brainer)
- Low buy-in cost (because I don't have much to buy in with)
I've found at least 6 that fit those criteria. How about this one: It is a line of products that is sold on consignment out of another store. So all that is needed is to bring the product to the store. Total cash flow: $7000-$8000/year. Cost of the business: $40,000. And it sells metaphysical gifts. I don't even know what those are. But if I did, I'd be all over that.
Tanning salon? Positive cash flow, 5 employees that run the place, $80,000 to purchase it. Room to expand. Except my wife doesn't like tanning salons. But besides that, another great business opportunity.
Driving school for sale. Owners are retiring. Asking $85,000. Grosses $107,000 annually. 4 employees. A little more money than I have right now, but that would be a hard one to turn down.
Candy vending machine business for sale. Owner paid $21,000 for it 2 years ago and brings in $200 a week for 4 hours of work. Needs to sell in a hurry, so he's asking $5,500 for it. Holy cow!! That would pay itself back in less than a year! Antonio, answer your phone, I want to buy your business!! He's probably already sold it, but this would be almost perfect.
Two websites for sale. I won't say which ones, b/c I think these ones are just what I am looking for. $2300 for the two of them. Between them they bring in about $2000-$3000/year. No, that isn't very much. But they are 99% automated. There is almost nothing to do but collect the money. The owner is selling b/c he needs capital for another project. Hello passive income.
Of course, you should verify the claims of the business owners. Check financial statements, customer records, etc. I imagine a lawyer would help (mental note: don't forget to call my lawyer).
So get out there and start looking. Opportunities abound! Build up that asset column.
Dad
Saturday, October 10, 2009
Some Early Results
Well, I've some some early results from my advertising. Specifically, 1 reply. It's not much, but it's a start, and it's encouraging.
One thing I have read recently that I am really starting to see is that there are opportunities everywhere, but most people don't see them. One of the biggest reasons I've never really started a business is that I could never think of a good idea. I always thought that good ideas were something other people had. Since I've shifting into business mode, I can all of a sudden see all sorts of opportunities all over the place. For example, on a website I frequent I noticed that someone was selling an item for $200 that I know for a fact is easily worth $250. I managed to bring the seller down to $180. So now I have a $250 item for $180. Once I receive it, I will turn around and sell it for $250, and I will get $250 for it. I know this is a small deal, but that's $70 of free money. Imagine that on a bigger scale. What if I could buy a $200,000 condo for $150,000? That's $50,000 of instant profit. And I've seen those kinds of deals. I know they're out there.
There truly are opportunities all over the place. Have many times have you said to yourself, "Why doesn't somebody open up xyz store and sell abc?" Or something similar. I've said it a lot. Here I was looking for ideas, and I had them. Right in front of my face. Why didn't I open up that store? Or provide that service? Or how many other needs are there that people are willing to pay good money for, but nobody is fulfilling that need. Start looking, and you will see them. I don't think I will ever have trouble thinking up a good business idea again. Now, the hard part is making it work.
Dad
One thing I have read recently that I am really starting to see is that there are opportunities everywhere, but most people don't see them. One of the biggest reasons I've never really started a business is that I could never think of a good idea. I always thought that good ideas were something other people had. Since I've shifting into business mode, I can all of a sudden see all sorts of opportunities all over the place. For example, on a website I frequent I noticed that someone was selling an item for $200 that I know for a fact is easily worth $250. I managed to bring the seller down to $180. So now I have a $250 item for $180. Once I receive it, I will turn around and sell it for $250, and I will get $250 for it. I know this is a small deal, but that's $70 of free money. Imagine that on a bigger scale. What if I could buy a $200,000 condo for $150,000? That's $50,000 of instant profit. And I've seen those kinds of deals. I know they're out there.
There truly are opportunities all over the place. Have many times have you said to yourself, "Why doesn't somebody open up xyz store and sell abc?" Or something similar. I've said it a lot. Here I was looking for ideas, and I had them. Right in front of my face. Why didn't I open up that store? Or provide that service? Or how many other needs are there that people are willing to pay good money for, but nobody is fulfilling that need. Start looking, and you will see them. I don't think I will ever have trouble thinking up a good business idea again. Now, the hard part is making it work.
Dad
Sunday, October 4, 2009
Getting Close!
Everything is coming together for my yard care business and we should be ready to go full out in about 2 weeks. Which is good, because there's already snow in the forecast. I think this is the first year I can ever remember being a little excited about snow. Not really excited, just a little bit.
We've been focusing heavily on our marketing plan (makes sense, we only have 1 customer so far). A lot of what I've been learning has to do with marketing. In a couple of weeks, I'll know if all of these people who seem smarter than me really are.
One of the things that has made the most sense to me is that the goal of marketing should be to develop leads, not sales. "Wait a second though...I thought I want to sell things, that's why I'm marketing??" That's what the little voice in my head says. But it makes sense. Really. Imagine if you walked up to a girl (or guy) that you've never met and asked them to marry you. You probably wouldn't get very far. You need to develop a relationship first.
The same thing applies to business. Most business owners (including myself at one point) believe that people will come simply because they have a business. Wrong! People want to know something about you first. That's why places like McDonald's do so well, while places like Joe's Burger Joint (no offense if you happen to run a place called Joe's Burger Joint) don't always do so well. People know McDonald's. If I go to McDonald's, I know I will get a mediocre meal at a decent price. Every time. I don't know anything about Joe's Burger Joint, and I'm not always willing to risk going there.
So how do I develop a lead? Instead of offering something for sale, think about who your target market is. What do they want? Offer them something (usually information, or maybe a sample) with no obligation. Show them how helpful you are. Gain their trust. Once they get to know you, they are much more likely to buy whatever you are selling. Or at least recommend you to someone else.
That's the theory anyway. It seems very sound to me. I am about to find out as all of my marketing will be going out this week. I will let you know soon how it turns out. Hopefully we can all learn something.
Dad
We've been focusing heavily on our marketing plan (makes sense, we only have 1 customer so far). A lot of what I've been learning has to do with marketing. In a couple of weeks, I'll know if all of these people who seem smarter than me really are.
One of the things that has made the most sense to me is that the goal of marketing should be to develop leads, not sales. "Wait a second though...I thought I want to sell things, that's why I'm marketing??" That's what the little voice in my head says. But it makes sense. Really. Imagine if you walked up to a girl (or guy) that you've never met and asked them to marry you. You probably wouldn't get very far. You need to develop a relationship first.
The same thing applies to business. Most business owners (including myself at one point) believe that people will come simply because they have a business. Wrong! People want to know something about you first. That's why places like McDonald's do so well, while places like Joe's Burger Joint (no offense if you happen to run a place called Joe's Burger Joint) don't always do so well. People know McDonald's. If I go to McDonald's, I know I will get a mediocre meal at a decent price. Every time. I don't know anything about Joe's Burger Joint, and I'm not always willing to risk going there.
So how do I develop a lead? Instead of offering something for sale, think about who your target market is. What do they want? Offer them something (usually information, or maybe a sample) with no obligation. Show them how helpful you are. Gain their trust. Once they get to know you, they are much more likely to buy whatever you are selling. Or at least recommend you to someone else.
That's the theory anyway. It seems very sound to me. I am about to find out as all of my marketing will be going out this week. I will let you know soon how it turns out. Hopefully we can all learn something.
Dad
Thursday, October 1, 2009
What is your motivation?
Why do you want to be rich? It's almost a taboo subject, and very confusing. On the one hand, we all idolize wealth and riches: big houses, fancy cars, designer clothes, etc, etc, etc. On the other hand, we are taught that money is the root of all evil, being greedy is bad, think of others before yourself.
I believe that both sides have their merits, but the real focus should be somewhere in between. There is nothing wrong with wanting to be able to have nice things and provide for yourself and your family. But if money is all that drives you, you will likely live a miserable existence.
One of the most important things I have learned in the past few months is that if you want to be rich, you need to have a good reason for it or you will not succeed. After all, who doesn't want a big house, a condo in Hawaii, a Mercedes Benz and regular trips to tropical destinations? Obviously, these things do not provide the drive necessary to become wealthy, or we would all be on permanent vacations.
So what is a good enough reason? The best reasons are the non-selfish reasons. You have to want to help people. For example, if you are a mortgage broker and approach your business that way, you will likely live an average life and do average things. That is fine. But if you are a mortgage broker and your business is helping people to get into a home at an affordable rate and be able to pay off that home as quickly as possible, you will have much better focus and I can guarantee you your results will far exceed those of a simple mortgage broker. Why? Because it gives you a reason to succeed. Because people can see that you are genuinely trying to help. By helping people, you will make money.
It sounds very simplistic, but I have been thinking about it a lot lately, and people I have met that are truly successful are generally very nice people and always willing to help. These are the kinds of businesses that I want to frequent, and I do.
When people are shifty and greedy, however, they stick out like a sore thumb and I avoid them like the plague. I don't want to do business with these people. They may be slick enough to make a quick buck here and there, but they will get very few repeat customers.
Bottom line, if you want to be rich, start helping people. Focus on someone else, and the rest will fall into place.
Dad
I believe that both sides have their merits, but the real focus should be somewhere in between. There is nothing wrong with wanting to be able to have nice things and provide for yourself and your family. But if money is all that drives you, you will likely live a miserable existence.
One of the most important things I have learned in the past few months is that if you want to be rich, you need to have a good reason for it or you will not succeed. After all, who doesn't want a big house, a condo in Hawaii, a Mercedes Benz and regular trips to tropical destinations? Obviously, these things do not provide the drive necessary to become wealthy, or we would all be on permanent vacations.
So what is a good enough reason? The best reasons are the non-selfish reasons. You have to want to help people. For example, if you are a mortgage broker and approach your business that way, you will likely live an average life and do average things. That is fine. But if you are a mortgage broker and your business is helping people to get into a home at an affordable rate and be able to pay off that home as quickly as possible, you will have much better focus and I can guarantee you your results will far exceed those of a simple mortgage broker. Why? Because it gives you a reason to succeed. Because people can see that you are genuinely trying to help. By helping people, you will make money.
It sounds very simplistic, but I have been thinking about it a lot lately, and people I have met that are truly successful are generally very nice people and always willing to help. These are the kinds of businesses that I want to frequent, and I do.
When people are shifty and greedy, however, they stick out like a sore thumb and I avoid them like the plague. I don't want to do business with these people. They may be slick enough to make a quick buck here and there, but they will get very few repeat customers.
Bottom line, if you want to be rich, start helping people. Focus on someone else, and the rest will fall into place.
Dad
Saturday, September 26, 2009
My experience so far
My business experience so far consists mainly of my acute observations on the workings of other people's business. I have learned a lot just by seeing what other people are doing. I also started an e-commerce site about a year ago mainly to test the waters and to be doing something. I shut the site down a few months ago after deciding I'd learned what I could from running it, mainly that I hadn't learned enough yet.
A few weeks later I decided that what I really wanted was to start my own electrical contracting company. Being only a 3rd year apprentice makes it difficult to do, so meanwhile I figured I should start reading some books and maybe take some courses.
I started out with a book called "The Successful Business Plan Secrets & Strategies" by Rhonda Abrams. This book has changed my entire outlook on business. What I expected was simply a book that told me how to write a business plan. What I got was a book that showed me how to research, plan, find investors, define your business, run your business, do financials, etc, etc, etc. This book really is very exhaustive, yet easy to follow. It is peppered throughout with quotes from various successful business personalities (among them are the likes of Eugene Kleiner, considered to be one of the "fathers" of Silicon Valley, Charles Huggins, President of See's Candies, Bill Walsh, former Coach and President of the San Francisco 49ers, and many others). I highly recommend this book if you haven't read it already. Even if you are an experienced entrepreneur, I believe you will learn something critically important from this book. In fact, since I believe in it so much and I am a big fan of giveaways, as soon as I figure out how to do it I'll put up a contest to give away a copy of this fantastic book.
After reading this book, with my head full of ideas, I ended up going into a good old handshake partnership with a friend of mine who also has wanted to start his own business. He has a similar background to me and so we decided to start something just to start it. I believe one of the major issues holding most people back is not that they are incapable of success, but that they simply do not take action. We decided our first joint business venture would be to purchase a condo or small house and rent it out and started planning how we would go about it.
Meanwhile, the next major step in my business education came along in the form a seminar put on by "Canadian Rich Dad" Darren Weeks. We got a doorknob ad which somewhat piqued my interest, but being generally skeptical of such things I dismissed it until my wife convinced me to go. It was free and one of the major topics to be covered was buying real estate with "no down payment". My business partner and I went and found it was actually quite valuable and most importantly, we learned that we were on the right track in what we were doing. The seminar was very informative and free of any high pressure sales tactics which to me gave it a lot more credibility. I ended up signing up for Darren's "Fast Track Inner Circle" and from there have been learning at an exponential rate.
I won't go into all the details in this post as it's already getting a little long, but the main things I have come out with so far involve marketing and the beginnings of the "Rich Dad" mindset. I have purchased Robert Kiyosaki's "Rich Dad Poor Dad" (haven't finished it yet) and am seeing the wisdom in what he has to say. Whether by accident or by design, I truly believe the vast majority of North Americans (including myself) are on the wrong track financially and this needs to change.
Eager to test all of this knowledge, my partner and I have started a second business venture together that can put the principles we have learned to the test a lot quicker with a lot less risk involved. That is the snow removal and lawn care business I mentioned in my last post. My goal is to be able to start from scratch and create a company that can either be sold or be self-running within 3-5 years.
That should just about bring you up to speed on where I am at right now. I think the main point I want to get across right now is to take action. Do something, anything. Start some sort of business. They say the average successful business owner has started something like 7 or 8 failed businesses. Might as well get some of those out of the way, right? If you can't think of an idea, feel free to email me and I can help you find something you're interested in. Stay tuned for some more details on some of the really good stuff I've learned.
Dad
A few weeks later I decided that what I really wanted was to start my own electrical contracting company. Being only a 3rd year apprentice makes it difficult to do, so meanwhile I figured I should start reading some books and maybe take some courses.
I started out with a book called "The Successful Business Plan Secrets & Strategies" by Rhonda Abrams. This book has changed my entire outlook on business. What I expected was simply a book that told me how to write a business plan. What I got was a book that showed me how to research, plan, find investors, define your business, run your business, do financials, etc, etc, etc. This book really is very exhaustive, yet easy to follow. It is peppered throughout with quotes from various successful business personalities (among them are the likes of Eugene Kleiner, considered to be one of the "fathers" of Silicon Valley, Charles Huggins, President of See's Candies, Bill Walsh, former Coach and President of the San Francisco 49ers, and many others). I highly recommend this book if you haven't read it already. Even if you are an experienced entrepreneur, I believe you will learn something critically important from this book. In fact, since I believe in it so much and I am a big fan of giveaways, as soon as I figure out how to do it I'll put up a contest to give away a copy of this fantastic book.
After reading this book, with my head full of ideas, I ended up going into a good old handshake partnership with a friend of mine who also has wanted to start his own business. He has a similar background to me and so we decided to start something just to start it. I believe one of the major issues holding most people back is not that they are incapable of success, but that they simply do not take action. We decided our first joint business venture would be to purchase a condo or small house and rent it out and started planning how we would go about it.
Meanwhile, the next major step in my business education came along in the form a seminar put on by "Canadian Rich Dad" Darren Weeks. We got a doorknob ad which somewhat piqued my interest, but being generally skeptical of such things I dismissed it until my wife convinced me to go. It was free and one of the major topics to be covered was buying real estate with "no down payment". My business partner and I went and found it was actually quite valuable and most importantly, we learned that we were on the right track in what we were doing. The seminar was very informative and free of any high pressure sales tactics which to me gave it a lot more credibility. I ended up signing up for Darren's "Fast Track Inner Circle" and from there have been learning at an exponential rate.
I won't go into all the details in this post as it's already getting a little long, but the main things I have come out with so far involve marketing and the beginnings of the "Rich Dad" mindset. I have purchased Robert Kiyosaki's "Rich Dad Poor Dad" (haven't finished it yet) and am seeing the wisdom in what he has to say. Whether by accident or by design, I truly believe the vast majority of North Americans (including myself) are on the wrong track financially and this needs to change.
Eager to test all of this knowledge, my partner and I have started a second business venture together that can put the principles we have learned to the test a lot quicker with a lot less risk involved. That is the snow removal and lawn care business I mentioned in my last post. My goal is to be able to start from scratch and create a company that can either be sold or be self-running within 3-5 years.
That should just about bring you up to speed on where I am at right now. I think the main point I want to get across right now is to take action. Do something, anything. Start some sort of business. They say the average successful business owner has started something like 7 or 8 failed businesses. Might as well get some of those out of the way, right? If you can't think of an idea, feel free to email me and I can help you find something you're interested in. Stay tuned for some more details on some of the really good stuff I've learned.
Dad
Greetings
Welcome to Business Dad. I will be posting on this blog under the pseudonym of Dad. I wanted to start a blog to document my journey through the entrepreneurial waste-land to the proverbial pot of gold at the end. I have been involved in a couple of small business ventures in the past, mostly to test the water. In the last few months I decided to start educating myself on business so that I could make a serious go at it. Here I am, several books and seminars later, with some really good ideas in my head and some solid, proven principals to work with. I am now ready to start my first serious business venture. It’s a really cool idea. Seriously. I have decided to start a business removing snow and caring for lawns. I have an equal partner with whom I have been working on another business venture and who jumped at the chance to be included in this one. I don’t really think I have a passion for shoveling snow, but I think that’s ok because as I have learned my business is actually helping people to free up some of their time by shoveling snow and mowing lawns. I do have a passion for helping people.
I hope that as I become more successful I will be able to document some of the things that have helped me along the way so that hopefully you too can benefit from that knowledge.
With that in mind, please, make yourself at home. There’s not much here yet, but I’ll be making some hefty changes in the next few days.
I hope that as I become more successful I will be able to document some of the things that have helped me along the way so that hopefully you too can benefit from that knowledge.
With that in mind, please, make yourself at home. There’s not much here yet, but I’ll be making some hefty changes in the next few days.
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