More Than Money

Black Enterprise magazine interviewed Oprah Winfrey. While many would be like, "So what?" there's much one can learn from her. I've been following her career for many, many years and saw how it evolved since she was an anchorwoman for a little television station in Chicago circa 1985. Something that I always respected about her is when she has a speaking arrangement or does a one-on-one, she doesn't prattle off cardboard answers or give vague or ambiguous answers--she speaks from a standpoint many of us are at right now--having a dollar and a dream and no idea how to plant that seed. Long-winded intro, right? Back to the BE interview.

What made this particular interview stand out for me was how she spoke about success versus her own personal happiness and fulfillment. People were envious of her when she did the news! The thought that she had gained as much recognition as she did back then would've satisfied most but to her, it was still exploratory. She was in the position but didn't think it was right for her. How right she was.

The article goes on about spirituality and business; two things I believe are very important both on their own and together. Whatever your choice deity, being connected to something greater than yourself helps bring about a clarity that you'd fail to have otherwise. Personally, while I don't subscribe to any sect of religion, I'm positive that the wonders of this world are the likes that no person I've ever or will ever meet could create. Not to get all T.D. Jakes on y'all but spirituality is good for business. If what you do for pay doesn't bring you happiness, why do it?

Money doesn't exist as an object, it is merely opportunity. So use it to your advantage and don't be corrupted by it.

Dictated, Not Read
-CZA

Business and Financial Literacy

I came across this article that was so good I had to share with all of you. Business illiteracy is the number 1 reason why businesses fail. Big shouts to my man Dave for writing this:

Business and Financial Literacy

This is a country built on free enterprise and capitalism. So why don't our schools and other institutions give fair time (or any time at all) to these topics? Why do most academicians show a disdain for free enterprise and capitalism (and seem to favor socialism and communism at the collegial level in particular)? Don't the academicians realize that without the industries and businesses out there taking the risks of being in business and paying taxes and employing many workers who also pay taxes and spend in our economy, they wouldn't have their jobs or an economy that they'd be able to live in? Why do people nowadays think that it's the government's job to provide us with jobs? And to take care of us in our retirement (yeah, right. Social inSecurity?). Makework jobs and Social inSecurity come from somewhere--it's called more taxes. On the other hand, the views in the book, Earning Money Without A Job by Jay Conrad Levinson are a refreshing testimony to free-enterprise and personal capitalism. (You can tell that I get a kick out of his writing!) (All the books and references mentioned in this area of ranting and raving can be found through the Amazon.com link at the bottom of this page.

Financial Paradigm Changes

My folks were elementary school and high school English teachers. My sister and I were raised with their view of how the economy works. I eventually got a degree in biology with a minor in chemistry--after a short stint of teaching English grammar and composition at a parochial junior high school, I taught biology and basic science at a public senior high school. I hadn't learned much about business and the financial world because I didn't know anyone willing to share their different views and these topics weren't presented as requirements of the science program at the university.

However, during some traumatic experiences such as moving 8000 miles overseas away from my mom and dad right after high school, losing my job as a teacher during a union strike and subsequent work stoppage, my dad's heart attack, getting married, and then working in the automotive, insurance, and contract auditing industry for a while, I ran across some paradigms that sort of shook what I had been led to believe about how the economy works. My mentors in the automotive and insurance industries recommended that I read books such as those in the Money Dynamics series by Venita van Caspel (her Chapter 13 on Insurance is an eye-opener!) and Wealth Without Risk and Financial Self-Defense by Charles Givens. These books are real eye-openers. They are well-written, have information that I can verify from my experience in the automotive and insurance industries (therefore, I can extrapolate that they are most likely accurate for the areas I don't have much experience in). Reading these books got me interested in others about the economy, insurance, real estate, labor, taxes, finance, investments, and alternate economies (in addition to my usual reading in science fiction, high-tech thrillers, and mysteries).

Books such as The Motley Fools' Investment Guide and You Have More Than You Think by Tom and David Gardner (no relation), Nothing Down and Multiple Streams of Income by Robert G. Allen, and the Rich Dad, Poor Dad series by Robert Kiyosaki (recommended to me by a high-school and college classmate from Guam--Thanks Vangie and Tony!) gave me even more insights--and more paradigm changes!

The simple difference between so-called whole-life insurance (and likewise, "universal life") and term insurance.
What compound interest can do, and the difference between tax-deferred and tax-free accounts.
The principle of financial leverage.
The principle of time leverage.


I'm always willing and interested in holding a conversation and discussion of these topics--because I find these concepts so fascinating and because it's so amazing that so few Americans are aware of them, let alone understand them (I don't yet understand them fully myself--that's another reason why I like to discuss them with others--so I can learn more about them).

Time for a Paradigm Change

Sometimes we require a "paradigm" change. Sometimes it takes a major shock to our system, such as a natural disaster, war, involuntary unemployment, divorce, death of a loved one, or some other traumatic experience to force us to *see* other realities. What's a paradigm change? It's when some strong belief you firmly subscribe to is shaken and irreversably changed.


For example, if you BURN a parafin candle, you get the following chemical reaction:

H H H H H H H H H
| | | | | | | | |
H-C-C-C-C-C-C-C-C-C-H 02 ---> C(Carbon) C0(Carbon Monoxide) C02(Carbon Dioxide)
| | | | | | | | |
H H H H H H H H H *AND* H20 (Dihydrogen oxide, aka WATER)

(Parafin)

One of the by-products of burning a hydrocarbon (parafin) is WATER. This is a tough concept for many folks to grasp. It makes a fun chemistry lab project, however--holding a test tube over a burning candle to see the black carbon building up on the lip of the test tube and seeing the water droplets condensing at the inside tip of the test tube.

Other Paradigm Changes:

Other paradigm changes include:
The first use and control of fire.
The first heavier-than-air, fixed-wing aircraft flight.
Vaccines as a method of providing immunity from various diseases.
Realization that Planet Earth is *not* flat and that it orbits the Sun.
Spaceflight and multiple trips to the moon and back.
Discovery that you could ride a bicycle without falling over.
Learning that heavy metal boats can float (the buoyancy concept).
Many things we now take for granted were paradigm shifts when they were first pondered or discovered and later proven.
Current Paradigms for Many Americans
There are many old-wives'-tales and myths out there that are sometimes considered the wisdom of the day by most Americans. Here are some:
The lottery--A scheme devised by our government to tax folks who aren't good at math. You have more chance of being hit by lightning walking across the street to buy the ticket at your local mom-and-pop store than you have of winning the lottery. Comparatively (and statistically) speaking, you'd have a hugely better chance at making it big with owning your own business. Sure, the statistics say that only one in ten businesses survive, let alone make it big. But compare that with the one-in-80-million chance you have of winning the lottery, and the incentive to start a business of some kind gets more real.
Gambling--This is another scheme to zap folks who aren't good at math. Do folks think that the casinos in Las Vegas, Reno, and Tahoe manage to stay so glitzy by letting all their patrons win? The only way to really "clean up" is to start your own casino, I guess.

Buy land--Yup. (Raw Land, that is) This is a popular one among those who don't subscribe to the previous two deals. My mom and dad--humble teachers that they were--bought some raw land in New Mexico and in Montana. As dad said, they're not making more--and people will eventually need the land, so the value will have to go up and we'll have it as our "nest-egg" when we retire. Except that the land was out in the sticks with the nearest civilization almost 100 miles away. With no access roads other than logging roads or desert trails. Not only did the land *not* go up much in value over the past 30 years, but mom and dad got stuck with the taxes on it every year. And the taxes *did* go up every year. Raw land does *not* appreciate much, it's tough to create an income with it , and you can't "depreciate" it on your tax forms.

Whole Life Insurance "Savings" Feature--This one is a doozy. There are insurance accountant types (called "actuaries") out there who calculate the odds of you dying. Hey--statistics. There are also insurance lawyers out there who write insurance policies out there that would require a Boston lawyer to figure out what the heck they really mean. Then there are marketing types who have no clue about what they are writing about, but who, on the word of the lawyers and the actuaries, will cook up advertising to pull on the heart-strings of every red-blooded American out there so they will buy tons of this stuff from sales people who also haven't researched what they are selling but who get awesome commissions for tugging even harder at your heart-strings and your emotions to get you to buy tons of insurance on your little Johnny and your little Janey. (This isn't something you should do--more here.)

Tough Questions

So... seeing what folks will do to *win* in life-- here are some questions for you.
What would you do if you had no money worries (in other words, a few million dollars or so available at any time)?
Would you still go to work? Where would you live? What would you do?
If you were told you only had six months to live, what would you do? Would you still go to work? Would you spend more time with your family? Would you go places and do things that now you find you have no time to do?
Seeing how you answered the previous two items, why do you do what you now do?
Rants and Raves and the New Paradigms
On this Squidoo, I've assembled some essays and ideas based on my experiences in the industries of insurance, automotive, software development, computer networking, network marketing, public/parochial/private school teaching, and general experiences as a customer of other industries. These are only my rants and should be taken with a grain of salt. You are welcome to agree or disagree to these rants. If you don't like 'em, ya don't have to read 'em. .
Capitalism is fascinating. Being more able to direct one's destiny through owning a business is fascinating. But our schools don't teach much of this anymore. They teach and train young people to get out of school and robotically work for someone else. To work for an institution. To give up many freedoms for the sake of a paycheck. I've got a degree in biology with a minor in chemistry. But I don't work in those fields. I have been employed in the computer networking industry--in particular, the telecommunications, networking, and storage area network software industries.

Anyone thinking about starting a business should at least play with putting together a business plan.

Although the dot.com industry took a major beating during the last two years, I think shopping online and e-business is here to stay. The dot.com disaster served in wiping out many of the smaller businesses, but left the stronger survivors in perhaps a better position to become more successful. I've watched these industries from very close on the sidelines (Cisco and Veritas count as being *VERY* close to the sidelines!)--and from what I've seen, the networking industry has plenty of room to grow (and the stock analysts on Wall Street don't seem to have much of a clue ).
Affiliate programs with Amazon.com and other e-businesses are interesting--for the effectiveness and efficiencies they bring to the market. --And also the fact that ordinary folks like us can get paid for participating in the business and subsequently in the economy. The process is not much different than if we raved about a movie we had seen or a book that we had read--which encouraged you to go to the store and buy it or go to the theater to see it. Except now, we can get paid some of the "advertising" and "marketing" fees that otherwise would have gone to advertising agencies or television or radio stations or newspapers or magazines for the advertisements. Hey, if you recommend a movie or homeschool curriculum to us... and we go out and buy it--wouldn't it be nice for the publisher or movie producers to reward you for your referral? I know that when I worked in the car and insurance industries, I occasionally passed on a "referral" fee to those who sent customers to me. So, we decided, why not? Our website is an "Affiliate/Associate" with Amazon.com. If you click on the Amazon.com icons on our website and purchase anything based on our recommendations, Amazon thanks us for our referral by sending some cash in our direction. Nice paradigm change. Now if the movie theaters and other attractions we recommend to folks would do the same thing, there may not be any need to spend so much time at the office, eh?

Other rants:

So many businesses "leave money on the table" by not training their front-line workers to keep customers *HAPPY*. Sometimes it's just a case of *thinking*. Like asking the counterperson at McDonald's for a "half-dozen" McNuggets--and getting the answer, "I'm sorry, but we only have boxes of 6 and 9."

So many businesses don't take advantage of ways to market their business more effectively by getting their word out. Whether the businesses are a "Mom and Pop" operation or a large corporation like IBM--I'd think that they'd benefit by and encourage their marketing folks (or owners, for the small businesses) to read books such as Guerrilla Marketing by Jay Conrad Levinson or Driving the Competition Crazy by Kiyosaki. There are some great ideas in these books that could increase profitability without much investment other than carrying out some of the suggestions provided.
There's a book called Guerrilla Tactics on the Job Market by Tom Jackson that is essential for those in the process of changing jobs, being laid off, or just wanting to find something better. Another excellent book for those wondering about their career directions is What Color Is Your Parachute by Richard Nelson Bolles.

Observe Principle: Avoid the Business Obituary

The marketplace now is one that is still optimistic but not enough precaution for the future is being taken, so business after business finds no alternative but to drastically cut costs (sometimes at the expense of employees) or close up shop. Often this can be avoided if a little planning is done beforehand. Remember:A company that doesn't grow, dies. Surviving isn't enough.

Tailor your product(s) directly to those who want it. By catering to your intended target, you create a place for you among the giants. Research different ways to get your item out; you might find a way others haven't utilized yet and can capitalize on something that can aid in creating your presence.

Constantly research and development new revenue streams applicable to your brand. With technology improving so fast, there's always new opportunities to explore. How can you expand your influence further? Whether via the internet, sponsoring events or television, there's no reason to get more exposure by means available.

Understanding your products worth keeps you from using more resources than what you bring in. Do you service high-end clients or is it mass produced? Hone in on that and you can keep your pricing model relevant. Don't be one of those that offer a million different rebates and discounts--your customers would rather have a solid product at a fair price.

As mentioned before, the road to success can be a rocky one, and you'll most likely never traverse it without a roadmap, so make sure you have one.

Observe Principle: The Art of the Contract

To too many people the idea of having to sign a contract is the same as saying "Put these shackles on" when in fact it's just the opposite. A contract is your best friend (unless you get into one that's not beneficial to you) because it offers you the freedom to act and move while knowing exactly what you are bound to. On top of that, you know exactly what to expect from the other party and if they don't hold up their end of the bargain you have a classic breach of contract which you can take to small claims court (a la Judge Judy) to settle.

To get a little deeper, here's a few basic parts that's present in every court-worthy agreement with the first being a mutually beneficial consultation. All that means is that you and the other guy met, discussed what he wanted and what you wanted and came to an agreement both you can live with.

The second part of a legally-binding contract is the age requirement. If both parties aren't of adult age it doesn't fly. The underage party would need their parents or guardians to sign for it. Think about it. If you feel comfortable setting up a big money contract with a minor?

Next, we need for each party to have a copy of the contract. Via email or fax is fine if you can't manage a face to face, but the signatures have to be legitimate on the page. While some request that small claims court is waived in exchange for neutral arbitration, if it's not in the contract you aren't bound by it. (By the way, most large companies use arbitration to keep whatever tiff there is out of the public eye. Nothing worse than getting that image tarnished, eh?)

This is by no means an end-all be-all about contracts, but it should provide you with a launchpad to find out more. Use contracts to your benefit. There are plenty of sample contracts on the net for resource and while you don't need a fancy high priced lawyer to draw one up (I've seen agreements made on bar room napkins before) the legalese present in most makes them a nice asset. Notary Publics are good because they can be brought into court as witnesses because they in fact do witness the signing of the contract by both partners.

Observe Principle: Brand Yourself

Companies vie for your attention everywhere you look; from fashion to real estate to household items there are easily more people wanting your business than you can give your business to. So what makes a particular company stand out among the thousands of other competitors that can be (a lot of times)less expensive or more efficient? Let's try an exercise.

When you think of a pair of gym shoes, what's the first thing that comes to mind? More often than not, it's Air Jordans. We can still picture the electrifying dunk Mike did with his signature pose as he gracefully soared through the air, which subsequently became his logo. He created a brandable legacy that to this day tops the list for most sought out. They've actually become collector's items. Jordan's case isn't special; it's a good balance of iconic presence and a good marketing thesis.

Let's look at another.

Before and during the 2007 Super Bowl, Budweiser aired a thirty second commercial starring Jay-Z to bolster awareness for their flegling Bud Select line. What made them choose Jay-Z? It wasn't the music he supplied to them--it was one of the worst albums of his career many critics said. Likewise it wasn't his street credibility--that's not going to move any product for them so then what was it? His name. Beyond the hip hop community, Jay-Z is known internationally as someone to respect in his genre and that translated to the possibility of many of his fans buying the beer because their favorite rapper endorsed it. It also streamlined the company because hip hop is what's in right now and they wanted to capitalize on the world-wide acceptance of such. He was made co-Brand Director for the line of beverages and helped sculpt a plan for the company to exploit the usage of his likeness to the fullest. Once again, what Jay-Z has done isn't a ground-breaking thing in theory; people love to jockey a winner and, well, Jay-Z wins. (Go ask Beyonce if you don't believe me.)He did the same thing Jordan did, the same thing Tiger Woods did with Tag Heuer: simply licensed his brand.

How does this help you? Besides motivation, it should open your eyes a bit to what a brand truly is. Understanding and implementing that is simply a step in the growth of your business, but without it you might as well be the cheap soda sitting next to Coca-Cola on the shelf.

So now you're wondering, "How do I make my business into a brand?" It's not as hard as it may seem. First off, you need to sit a moment and think about what exactly it is that you wish to convey to your customers--what specific image and connotation are you delivering when your company's name is brought up? The best way to start to define that is by writing a mission statement outlining your company's focal point and what it is you do in the length of a sentence or two. Here's a sample one from a fortune 500 company (aka big chips) to get you going:

It is the Mission of Advance Auto Parts to provide personal vehicle owners and enthusiasts with the vehicle related products and knowledge that fulfill their wants and needs at the right price. Our friendly, knowledgeable and professional staff will help inspire, educate and problem-solve for our customers.

This is a good example because of its poignancy and how fully it states not only what the business does but what it hopes to continue doing. Throughout it makes assurances that the business is relevant to anyone who fits that niche, in this case it's automobiles.

A properly descriptive brand and high brand awareness amongst your target market will allow you to more easily introduce a wider range of products and services when they're developed without having to start by again selling who you are, what you do and how you do it first. Your brand has already presold YOU. Your job then is to sell your products and services.