Finding the right business for you. Some of you may know exactly what kind of business you want to start, or you may have already started it. Others may have an intense desire to start a business, but they don’t know what type of business. Deciding what your business will be is a critical step in your journey to business and financial success.
To begin, take a piece of paper, a pen or pencil, or open a word processing document and start listing all or your skills and talents. What are you good at? What do you enjoy doing? What skills have you learned throughout your life? And most importantly, what are your passions?
It is important to be objective because often we don’t give ourselves credit for the skills and talents we have. We just assume that if we can do it everyone can. That is definitely not the case. If you are having problems doing this ask family members, coworkers or friends to tell you what your skills and talents are. We are seen much differently by others than we see ourselves.
Once you have determined what your strengths are, it is important to truthfully identify your weaknesses. We all hate to admit we are not good at something, but when it comes to running a business, it is critical for everyone to know what they are good at and where they need some help. No one can be good at everything, so admitting a weakness has no relevance to whether you will be successful or not. In fact, by admitting and accepting your weaknesses you can proactively find alternative solutions to handle that area and you can focus on your strengths.
Something else to consider is your risk tolerance? Are you pretty cautious with your money and are looking for a lower rate of return for your business but a higher chance of success? Or, are you ready to take more risk for a higher rate of return? That is a personal decision and neither is right or wrong, it just depends on you.
It is important at this point to honestly determine how you are going to finance your new business. Are you going to finance your business from savings or from your current salary, or do you plan on borrowing money from a bank, friends or family members? Or maybe you are taking on a partner, giving them a percentage of the company in exchange for start-up capital.
How much money do you have to invest? I guarantee what you estimate you will need to start your business will be at least 25% short if not more. So, when determining how much money you need be sure to overestimate. If you are borrowing money from friends or family it is a good idea to have the agreement in writing in case there are any discrepancies in the future. It is much better to lay out the agreement in the beginning than to try to piece it together after there has been a misunderstanding and feelings are hurt.
The next step is to do some research. Take a look at the types of businesses that match your skills or talents. Take some time to research the market for these products or services. Is the market young or mature? Is it under or over developed? Are there changes that can be made to existing businesses to improve the market or service? Don’t be afraid to be creative, but do market tests before committing to something entirely new.
You can also look at prepackaged business or franchises. For example if you want to invest at least $1 or $2+ million, you could open a fast food restaurant and everything would be laid out for you. Of course you would have to find a location, have the building either built or fit out, hire employees, learn how to run the business per the franchise rules, etc.
If you decide to open a shop or restaurant on your own you will have the same issues as above, plus you will be completely on your own in regards to purchasing merchandise, marketing, policies and procedures, hiring employees, etc. This can be a very rewarding experience, but make sure you have the capital, a great idea, stamina, and business acumen to be successful.
If you are looking for something smaller, there are many opportunities in direct sales and multi-level marketing (also known as MLM or network marketing) that can generate a good income if you devote the time necessary. These are generally a small, home based business which you can run out of a bedroom or den in your house. Additionally, many of these opportunities are now internet based business opportunities so there are no meetings to go to or inventory to manage. This is nice because it cuts down drastically on your overhead costs and gives you flexibility on how you spend your time.
Unfortunately, these businesses have gotten a bad rap lately, not due to the businesses themselves, but because too many people were promising great income generation without having to lift a finger. Well, we all know that work is required to be successful in business. If you are dedicated and committed to building these opportunities then you will prosper.
Finally, be sure to consult with your attorney and accountant as you set up your new business. They will be able to make sure everything is set up correctly and you are off to a great start!
Communication is an integral part of everyone’s daily activities. Whether you are talking with co-workers, your family members, or by phone or e-mail, effective communication benefits everyone. The problem is, we are usually in such a hurry we don’t think about how what we are saying is being interpreted by the recipient. In fact, there may be times when what we intend is not what the person receiving the message hears. This is even more prevalent with e-mail.
Here are some areas to consider as you evaluate your communication style.
Be respectful to everyone: The best way to stop the communication flow is to be disrespectful to the person you are talking to. Everyone deserves to be treated with respect, whether it is your boss, your kids, co-workers, the cleaning crew, etc. No one is better than anyone else – treat everyone as you would like to be treated. There is a side benefit here as well; you never know when you might need help, and you will be much more likely to receive it from people you were nice to in the past.
Listen: You have something you want to say and you know you are right. That may be, but you will destroy any chance you have for the other party to accept your viewpoint if you are rude and talk over them. You will gain much more cooperation from people if you listen to them and let them participate during your conversation.
Don’t be condescending: You may have a larger vocabulary than the person you are talking to or you may be an expert in a field, but you will gain no ground by talking over the person you are communicating with to make yourself feel more important. Again, the goal of communicating is to successfully convey your thoughts and ideas, that is pretty tough if the person you are talking to has no idea what you are talking about. It’s even worse if you are doing it just to make them feel stupid.
Make sure everyone is clear: At the end of the conversion do a quick recap to make sure everyone is on the same page regarding what was decided. If this is a work environment, you may want to summarize the conversation in a memo or e-mail afterwards and send it to all participants. That way no one can argue later that they didn’t understand. Be sure to keep all e-mails or memos you send out for your own records.
Be approachable: You may be the boss or the parent, but that doesn’t mean you have to be unapproachable. There may be times when one of your employees or children needs to initiate a conversation. Don’t make it a scary or stressful situation because they will be less likely to be forthcoming with information you need to know.
Remember, we are all trying to work together to come to understandings, which means our communication skills are very important. Take the time to assess your current communication skills and their affects on the people you interact with. It may be time for a little tweaking!
When you mention real estate investment in most areas of the country these days, all people talk about is how much value properties have lost. We became spoiled the last few years as the real estate values skyrocketed. We forgot the fundamental reasons of investing in property, long-term investment and equity building. We focused on the short-term value increases. Of course, no one wanted to face the fact that the increases couldn?t go on forever and eventually there would be a market correction. We certainly didn?t anticipate what has happened recently!
Now the dust has settled . . . it is time to go back to the fundamentals. Except for unusual circumstances, real estate investment is a long-term investment strategy, not a get-rich-quick scheme. Here are six fundamental principles to take into consideration when looking at property investment.
Income generation: Except for the home you are living in, when purchasing property you are looking for someone to rent or lease the property. The rental payments you receive are income that you then use to pay the mortgage and associated expenses for that property. Ideally, the rent you receive from a piece of property will cover all your expenses and have extra left over.
Equity build-up: As you receive rent payments from your tenants and pay the mortgage, a portion of each payment goes to interest on the loan and the rest goes to paying down the principle of the loan. By paying down the principle, you are building equity. That means you are increasing the amount of the property that you ?own.?
Tax advantages: Your rental property is considered a business. Therefore you can take business tax deductions associated with the property. For example, depreciation. The IRS allows an owner to depreciate buildings over time, and a good accountant will be able to help you take advantage of this law. Your accountant will also be able to show you other tax deductions you will be able to use in your rental business.
Leverage: You can have control of a piece of property without having to pay for the entire property upfront. You do this by using OPM – Other People?s Money. OPM allows you to leverage your investment and use the income generated to pay off the mortgage and gain equity. You will make much more on your money by leveraging your investment than if you owned the property outright. A drawback to this is the higher level of risk some people are not comfortable with.
Local Markets: Residential units, either single or multi-family, are bought and sold in every city and town around the world. You will never run out of possibilities. The key is to do your research for the area(s) in which you want to invest. Learn everything you can before you start investing, and don?t be afraid to talk to people who have knowledge about the area.
Buying Below Market Value: Now is a great time to find properties that are being offered below their market value. Unfortunately, the lending practices of the last few years have put people in a difficult situation, forcing them to sell their house below market value. Other reasons include job transfers, divorce, job loss, or change in financial condition. You may feel that you are taking advantage of people in a difficult situation, but if you are fair and equitable in your dealings with them, you will actually be helping them get out of a bad situation.
The six elements listed above are the foundation of most long-term real estate investors. There are great deals to be had for someone who is serious and is willing to do the work involved. Remember to always consult with your attorney and accountant before investing in real estate.
Are you one of the many who think they need goals but never get serious about them? Or are you one of the very elite few who actually realize the incredible benefits to be gained by getting VERY serious about setting goals.
The increase in income alone is a major benefit of goal setting and should be enough to make anyone take a serious look at it. However, there are many, many additional benefits that can’t be measured in numbers that improve the overall pleasure of life. So, put the two together, and wow, think about what this could do for you.
To make goal setting really work for you, there are things in your life you need to throw away right now ? you don’t need them, you don’t want them, they are doing great harm to you.
Anger: This is rampant now more than ever because of the collapse of our economy and the devastating effect this has had on the lives of so many people. We want to blame someone for what has happened to us ? we’re angry at everything and everyone that upset our life. The truth of the matter is, you are not hurting the person or thing you are angry at, you are only hurting yourself. They don’t even know you are angry with them. As Buddy Hackett, the comedian, once said, “I never hold grudges; while you’re holding grudges, they’re out dancing!” Throw away your anger!
Self Pity: This is such a natural and comforting thing to cling to; and the people who won’t give it up will never reach their full potential ? not even close!? Don’t blame others for your problems. Take ownership of everything that is yours. If you don’t like those things, decide to change them, which usually means changing yourself and your attitude towards life. Throw away the self pity!
Making Excuses: Instead of making excuses for things that come up in your life that are uncomfortable or unwanted, say, “I am responsible.” Do you know what this will do for you? It will give the power of the situation to you and will take you out of the role of victim. You will become free, mentally and emotionally. By the way, you can also say, “I am responsible” when good things happen in your life! How great is that?! Throw away your excuses!
These harmful, self-destructive habits and emotions won’t disappear the first time you throw them out. They’ll sneak back into your life as soon as they can because you have been such a good host to them, and they want to stay with you. This is normal and happens to everyone. That’s why you must practice doing this consistently for several weeks, or however long it takes to permanently eradicate them. Throw them out!
Set yourself up as a personal services corporation ? You, Inc. – ?and make yourself the president. You will be in charge of and responsible for everything. Set up your goals for this corporation ? salary, vacation time, leisure time, continuing education, training needed to be more effective in your job, marketing yourself, etc. Be very specific in what you want and what you want to be.
You are president of your career. Picture yourself as a powerful person who is self-determined and self-directed. If you don’t like your past, dismiss it as just that ? the past. You cannot change anything that has happened; you can only learn from it.
Be very specific about your goals for this corporation because they will determine, in a very great way, whether you will fail or be hugely successful. You are the architect of your own destiny ? make the blueprint amazing, wonderful, and ?awesome!
We all began this year at GO, and all roads lead to a final rendezvous; the difference is what we’ve done en route. Goals set, actions taken, and results realized determine if you get to call this year a success or not.
September 23rd is an important date as it marks the 100 day countdown of 2009. I wanted to share with you an exciting opportunity to finish the year strong?it’s called the 100 Day Finish Strong Challenge!
Gary, The Goals Guy, is offering a powerful special report for free which is titled: How to Create Your Own Big Bang!
This report in my opinion is worth its weight in gold as it shows you how to create monumental performance gains. I encourage you to get your copy right now.
So what are you waiting for? The clock is ticking and if you want to seriously improve your life and corresponding results, I encourage you to check out the 100 Day Finish Strong Challenge today as it will be one of the smartest decisions you’ll make all year. www.goalsguy.com
Communication is an integral part of everyone’s daily activities. Whether you are talking with co-workers, your family members, or by phone or e-mail, effective communication benefits everyone. The problem is, we are usually in such a hurry we don’t think about how what we are saying is being interpreted by the recipient. In fact, there may be times when what we intend is not what the person receiving the message hears. This is even more prevalent with e-mail.