About.com Entrepreneurs: Have you ever been fired by a client? It's painful, embarrassing and even a bit depressing when it happens. It can completely throw your confidence as an entrepreneur.

And yet, it may be the best thing in the world for both you and your client.

But why let it get to the point that they have to fire you? Don't you want to be the one in charge of the relationship? Don't you want to end it on your own terms, as much as possible?

While you may feel like you really have to hang on to the client, whether for your own cash flow or out of your sense of commitment, there are several signs that it may be time to terminate the client relationship.

In some cases, the problem really is with the client, and you should just fire them:

The client is a jerk.

Life's too short. Dealing with jerks is stressful, and if you're stressed, not only will it affect your mental and physical well-being -- it will also affect your ability to serve your other customers well. It will affect your relationships with employees and business partners. And if they're that difficult, odds are that they're not going to be a good referral source for you anyway -- they may even be a liability.

The client drains all your time.

You may have heard of the Pareto Principle, aka "The 80/20 rule". In this context, it's the idea that 80% of your profits come from 20% of your customers, while 20% of your profits come from 80% of your customers. Now I'm not suggesting you should drop your smallest clients, just the least profitable ones. Sometimes it's difficult clients, but sometimes it's the nicest ones -- the ones who can talk you into doing just a little bit more, then a little more, then more, and so on. Scope creep! Try to draw the line with your client, but if it continues, you may have to cut them off.

7 Signs It's Time to Drop a Client [About.com Entrepreneurs]

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When most small business owners think about taxes, they think about Federal income taxes. But there are other taxes that I want to let you know about, so you’re not surprised if you have to pay them.

The first is self-employment tax. If you’ve ever worked for someone else, you know that social security and Medicare taxes get deducted from your paycheck. When you’re self-employed, you don’t actually get a paycheck.

Here’s what happens if you’re a sole proprietor. Following the IRS rules and regulations for calculating income and expense, you report your results for the year on your personal 1040 by filling out Schedule C.

Then you take the net profit and put it on Schedule SE for self-employment tax. After a small deduction, you calculate 15.3 % as your self-employment tax. This is double the rate of 7.65 % that’s deducted from employee paychecks because as a sole proprietor you’re both the employer and the employee so you have to pay both parts.

You get to take half of the amount of self employment tax as a deduction from your income on the front of your 1040. This has the effect of reducing your taxable income.

The self employment tax itself goes on the back of the 1040 in the section called Other Taxes on the line that says self employment tax. For the 2006 filing year that was line 58. This tax gets added to your Federal income tax and any other taxes you owe and is paid when you file your 1040.

If you (and/or your spouse on a joint return) have had Federal income tax withheld during the year that adds up to more than your total taxes for the year (which includes self employment tax), you’ll still qualify for a refund.

If your business is operated as a corporation AND you’re active in your business, you should receive W-2 wages and you won’t be subject to self employment tax on your earnings. Distributions from S corporations are generally not subject to self employment taxes.

If your business is operated as a partnership, you might have some items of income that are subject to self employment tax and some that are not. These items will be reported to you on a schedule K-1 that is part of the business tax return.

Sales tax

Many States have sales taxes. If you sell products to customers, you’ll have to charge them sales tax and pay it to the State. In some cases, digital downloads are considered products as far as the sales tax rules are concerned and certain services might also subject to sales tax. In Indiana, where I live, the rules are put out by the Indiana Department of Revenue. There will be a similar agency in your state who you can contact to find out the rules.

Local Taxes

Some cities and school districts have local taxes that you might have to pay. Some of these depend on your type of business. There might be additional sales taxes, property taxes, innkeeper’s taxes, or food and beverage taxes. Check with the authorities in your area for details.

And then there’s the often dreaded Estimated Taxes

This is a subject that confuses many people.

First, let’s try to understand the reason that the estimated payment system exists. Our system of Federal taxes is a “pay as you go” system. When you think about it, that makes sense. The government needs money all year long to pay for various things.

When you work for someone else, taxes are withheld from your paycheck each pay period, so the government gets its money over the course of the year. If you’re a sole proprietor, this doesn’t happen, so you’re expected to make estimated payments.

As with many IRS rules, there are some exceptions, and some penalties if you don’t pay enough or pay on time. There are some cases where you might not be required to make estimated payments (and you won’t have a penalty if you don’t), but it would still make sense to make them anyway, to avoid having to pay a large amount on April 15th.

If you have another job in addition to your self-employment, you can increase your Federal withholding on that job to cover the amount of the estimated taxes that you would otherwise have to pay. And if you’re married and file a joint return and your spouse has wages from another job, he/she can have additional Federal withholding taken out to cover the estimated payments.

Or, you can make quarterly payments using Form 1040-ES. You can also sign up to make the payments on-line. You might also need to make estimated payments towards your State taxes.

Payroll

If you have employees, you’ll need to pay various Federal, State, and local payroll taxes. But we’ll have to save that conversation for another time.

The most important thing you need to understand is that it’s your responsibility to find out what taxes your business has to pay. And that the laws vary from place to place and by type of business.

A good source of information is an accountant who specializes in consulting with small businesses.

Sheryl Schuff, CPA, is a Certified Public Accountant, author, and consultant who teaches entrepreneurs how to get their businesses organized, keep good accounting records, and maximize their business tax deductions. She is President of Schuff & Associates, PC and has been in private practice for over 30 years. She recently started an information products company www.TaxesForSmallBusiness.com to provide individual training materials for small business owners.

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Do you want to be in control of your life and create the results you desire? To be in a position of power and change whatever is not working in your life? Do you want to be able to change the people around you, the results you produce and even how you feel?

Most people believe that power and control are limited to the fortunate few who were born into power (e.g.: the tycoon's son), or acquire power through exceptional talent, business acumen or lady luck.

They believe (and we'll prove them wrong), that the rest of us are destined to be buffeted by whatever winds of change swirl around us. Economic slowdown, recession, company takeovers are the common winds of change.

The truth is, you do not need to have money or be in a top position to take control over what happens. In fact, people at the helm can also lose control...with much bigger consequences.

Look at the CEOs who watch their company's profits nose-dive helplessly in a bear market.

Or what about the US Army Generals who entered Iraq thinking that they were liberators of the people only arriving to find themselves regarded as invaders. Were they, the high and mighty in control? Not at all!

Taking Absolute Responsibility Gives YOU Absolute Power

The secret is to take absolute responsibility for whatever happens. That's right! When you take full responsibility for whatever happens, it means you acknowledge the fact that you have created whatever happens.

If you created it, then you have the power to change it. So, taking absolute responsibility for something puts you in a position of absolute power.

The extent to which you take responsibility over something is the extent to which you have control over it.

For example, if you take responsibility for your low pay, it means you acknowledge the fact that it was your actions and decisions that were the cause of this result.

Reasons could be that you are not creating enough value to be paid more; you have not demonstrated your true value to your boss; or that you chose to work in a company which does not recognize your true value.

Regardless of the reason or position you are in, you have the power to take charge and change anything in your life. The moment you take responsibility, you put yourself on the road to doing something about it.

You can either find ways to create more value by going beyond what is expected, make yourself more valuable by upgrading your skills, ask for a pay raise or find another job that will pay you what you are worth.

When you start taking any of these actions, your situation will change... you will get paid more!

Taking absolute responsibility for your situations and results puts you in a position of absolute power. So remember every time you feel like blaming others or circumstances, stop and take charge!

Adam Khoo is an entrepreneur, a best-selling author and a peak performance trainer. A self-made millionaire by the age of 26, he owns and runs several businesses in education, training, event management and advertising, all with a combined annual turnover of $20 million. His best-selling "Patterns of Excellence" is a complete step-by-step system that will literally program you for success in life.

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Young Go Getter: There’s not a career choice out there that doesn’t allow you to advance by pitching your most marketable asset, which just happens to be… yourself. You’ll never end up in a situation where you can say to somebody “I can’t do that, because I don’t have the resources or tools that I need” without looking like a total fool to anybody who is worth their salt. You have yourself. The rest is just stuff and comes just as easily as you being, if you know how to get what you want in life. And let’s face it, if you can’t market yourself as a valuable asset, you’re not worth the time to anybody worth selling yourself to anyhow.

Think of your professional network as a trading floor to use when you really need things done, or really need work to do.

“Okay. So, how do I get my own awesome network of people who will actually do what I need, when I need it?”

If you don’t have money to pay people what they’re worth, this can be a hard question to ask yourself, for fear of the answer most people give themselves their first time dealing with the situation. The good news is you’re already half way there. The fact that you’re acknowledging that it can be done at all, means that you’ve got what it takes to make it happen.

What’s the next step? Well, if you have the fortune and opportunity to build your network before you need it, feel free to take your time. Consider this part of the process similar to the interview phase of hiring for a job. A good network is built on good people. Take a look back and think about the finer qualities of people that you’ve enjoyed working with in the past, including work ethic, loyalty, quality of work, etc. Look for those qualities in others. These are the people to approach.

When you find these people, hand out business cards, make your intentions known, and put your best foot forward. The one rule: Don’t ever give false impressions of who you are or why you’re trying to network with them.

After you’ve found these people, don’t let them go. Be good to them, and they will be good to you, unless you’ve done a poor job picking people to network with. If they need a hand with something, give them a hand. When it comes time for them to return the favor, they’ll bend over backwards to make sure you get the help you need. After all, at this point you’re just as valuable to them as they are to you.

Never take advantage of your network. Some of them just want the connection for tough times and some of them are just being courteous. Feel them out, and then label your network’s members. After you label them, make sure they know your label. What are your strengths? What are your weaknesses? How much time do you have to contribute to others’ requests? One of the biggest reasons to have a professional network, more so than utilizing its members for your own means, is to offer yourself as an expert and find work in your field. How will they know to give you work if you don’t tell them you’re interested? How will they know you’re an expert if you don’t show them?

The tools of the trade.

Although your most valuable networking tool is your own willingness to meet and greet, there are tools built for the purpose of making it easier. Here are a few of my favorites:

1. Professional Networking Websites such as LinkedIn, YouNoodle, or Monster. Few people really use these websites to their full potential. They’re there for a reason. Sign up, and make use of them.

2. Business Cards. Never underestimate the power of a handshake and a business card. Anytime you meet somebody new worth networking with, they should have your business card in their hand before you walk away.

3. V-Cards. These are little electronic versions of your business card. Treat them as such. Make one (create one in Mozilla Thunderbird, Microsoft Outlook, or one of several other software programs) and pass it around like nobody’s business.

4. Your Resume or CV. These aren’t just for getting a job anymore. People really are interested in where you come from, what you do, and how good you are at it. This is a copy of your resume (or CV) that you can feel comfortable getting a bit more personal with.

5. A Handshake. Practice your handshake! Practice makes perfect, and the perfect handshake can say wonders about your personality. Dig in there tight, look the other gentleman/gentlewoman in the eye with a smile, and don’t let go until they return the favor.

Get out there and make it happen.

Networking As a Necessary Business Process, And the Top 5 Tools of the Trade [Young Go Getter]

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Blogtrepreneur: As an online entrepreneur you will always be faced with more tasks that you need to get done than you can manage. There will always be new ideas and opportunities that are tempting to pull you away from other things you are working on. Prioritizing your work is extremely important to achieve efficiency with your time and to get the most accomplished. Whether you are working full-time or part-time with your online ventures, you will need to recognize what tasks on your to-do list are most important and urgent.

Here are some tips for getting more out of your time by prioritizing your work:

1. Have a strategy

You need to have a sound strategy that will keep you moving in the right direction. An effective strategy will help to keep you focused and avoid distractions from activities that don’t fit with what you are ultimately trying to accomplish.

2. Recognize what makes you money

I think most online entrepreneurs, and definitely bloggers, face the challenge of identifying what work will actually produce an income. If you are going to make money through freelance blogging for example, writing posts for other blogs is what will produce your income. Using social media, reading other blogs, and participating at community sites will all help the cause, but none of these things will directly put money in your pocket. As a result, your income-generating work should take priority.

The important thing here is that you recognize the significance of activities according to how much money they can produce for you. Make sure that you are dedicating the majority of your time to things that will make you successful.

3. Set goals

One way to keep yourself on track and working on the most important activities is to set goals. For example, my monthly income goals keep me focused on the work that will help me to meet those goals. Whatever your goals may be, make sure that they will lead to your ultimate success.

4. Schedule your time

Once you have set your goals, schedule your time accordingly so that you will give yourself the chance to achieve those goals. Scheduling your time for specific activities can help you to reduce the amount of unproductive time, and it will force you to decide what work is most important and worthy of your time.

5. Use to-do lists

Each day there are so many different things fighting for my time, but with a to-do list I always know what is most critical and what I need to get done first. If I get everything on my list done then I can move on to other things. I like to write out the list at the end of the night (making a list for the next day) or first thing in the morning before I start any work.

6. Focus on one project at a time

Try to resist the urge to start something new until you have achieved some success with your current project(s). Be realistic with how much available time you have, and make sure you are giving yourself a chance for success at anything you attempt.

7. Get organized

For most of us, doing some of the day-to-day tasks of running an online business can become more time consuming than we would like. Usually some improved organization would help. Whatever areas are the most time-consuming for you, evaluate to see if there are areas for potential improvement in organization.

7 Tips for Prioritizing Your Work [Blogtrepreneur]

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How do you attract positive attention and draw a sizeable crowd to you?

This is a question I ask myself when I did my first book talk in KL. Unfortunately, I could not find any credible or relevant information that answers this burning question of mine. In times like this, I improvise.

The good news is some work and I will like to share them with you.

Here are the workable ones that have been refined after three book talks.

1. A crowd attracts a bigger crowd… hire groupies if you need to

People are naturally curious. So if they see a crowd (about 5-10) standing, with their full attention on you, they will check it out.

Most of these people will stay for about 30 seconds to assess if your talk is relevant or interesting enough for them to drop their agenda. If you want to play safe, I encourage you to “hire” a crowd. Gather some of your friends and fans. Make sure they report on time. Get them to rally together. Each time someone passes by or stops, have them give a warm smile to the person and invite him/her to join in. This has proven to work wonderfully well!

2. Location, location, location!

Pick a place where you have a lot of open space. This way, you are highly visible.

When we were in KL, the first day turned out was much better than the second day even though the second bookstore was a bigger one. Here’s why. In the picture above, you notice we were right smack in the middle of the bookstore. Judging from the density of the crowd, most of them walks in from the right (of me). I even have a friend who will stop these people and invite them to sit in.

However on the second day, we have this really HUGE waterfall blocking us (to the left of the picture).

Hence we only have a crowd on the far right and we miss about 50% of the people in the bookstore. Plus, the talk was held in the quadrangle which creates an invisible barrier. People who are not in the quadrangle will think it is a scheduled talk and avoid it. This is why the crowd size did not increase significantly compared to the first day.

3. Let ‘em do the talking

Make sure you have a lot of activities that get your audience talking and mingling. Firstly, this creates buzz which attracts people. Secondly, it allows the audience to interact with one another which makes the whole environment friendlier. So what you get is a friendly buzz that naturally draws people in.

Getting my listeners up to talk works like magic. It’s usually normal to see someone in suit talking since people will assume he has been hired. However to see a shopper speak, now that is something you don’t see everyday. So in your talk, find as many opportunities as you can to have pockets of your listeners up on stage or make sure you have a lot of activities where they get to interact with one another.

4. Use the “S” word

The word SECRET and SUCCESS seems to have an effect on the audience. Each time I say something along the line of “Let me tell you a secret…” or “Here are three tips on how to be successful…”, you will hear a pin drop. Everyone will keep really quiet. Even the kids. Passer bys will deliberately slow down so that they can eavesdrop into the million dollar secret that you were about to share.

The lesson is simple - make it exclusive.

5. If need be, pay them to laugh at all your jokes and clap at opportune times

Laughter and applause are your two best weapons in drawing crowds. In a short 60 minutes, I have about 8 stories planted in my talk. And each of them are intentionally funny. Some even require audience participation. For example the analogy about swimming and public speaking.

So if you are going to give a talk to an open crowd, make sure your speech has about 80% stories, 20% tips. Stories are naturally engaging so it becomes your magnet in pulling a crowd. After you finish your story, land them with a power point or a valuable message, that will keep them staying. Repeat the formula and you will have 10 soccer teams eating out of your hands in no time.

Here are other miscellaneous pointers on drawing an attentive crowd.

Don’t just address the crowd. Make sure you talk to passer-bys too. Catch their eye and speak to them as if they are meant to be listening to you. I guarantee you that they will stop and listen, at least until they find you boring or irrelevant to their needs.

Have a whiteboard with big words on it. Mind maps work well too. When passer by walks past, they will be curious enough to check out what you have written and since it is hard to walk and read at the same time, they will linger for a while.

Final note: Even if you have just one listener, hide your disappointment. It’s ok. Really. On the bright side, you won’t be suffering from aerobic effects of public speaking… and if you keep at it, you will start to draw a crowd. Why? Coz’ people are curious. They will be wondering why are you speaking to only one person. Why is that one person so focused on you? Is there something that they are missing out on? And before you know it, you have ten, twenty people clamoring for your attention.

Final final note… I am going to assume here that you have SOLID content that (1) resolves your audience’s top three frustrations or challenges and (2) bring them one step closer to their wants and desires.

Good luck with your next public appearance!

Eric Feng is the go-to guy if you want to learn how to impress your investors and customers through public speaking. For more tips and tactics that you can use immediately in your next presentation, visit The Public Speaking Blog.

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Brockblake.com: Kent Thomas (CFO Solutions), put together an interesting article called “10 Tips for Recession-Proofing your Business.” Kent provides a much-needed out-sourced financial services for the small & growing business. He has been fantastic to work with and I highly recommend him. Here are the details of his recent article:

1. Diversify Customers. Evaluate your customer base and identify concentrations of customers in the same industry and / or geographic region. Also look at how much business you do with each customer (make a list of your top 10 or 20 customers with total sales in the past 12 to 24 months and calculate the percentage of your total sales that comes from each. Establish a strategy to expand your customer base and to watch the “concentration risks” carefully.

2. Cut costs. If three employees are doing the job of one, you may need to make job cuts. “When times are tough, it’s best to focus on core markets and spend money in those areas, not in areas that haven’t been more profitable,” says Lenhart, the national director of business restructuring at BDO Consulting in New York

3. Ratchet down inventory. When a recession hits, the last thing you’ll want to do is get stuck with shelves of needless inventory. Keep an eye on leading consumer indicators such as those offered by the National Retail Federation and the Conference Board. Also, establish inventory targets and make sure the sales and purchasing departments are talking.

4. Maintain prices. You may be tempted to slash prices to free up cash flow. That’s a mistake, says Bradley J. Sugars, a business coach in Las Vegas. Sure, you’ll sell products but you’ll also cut your profit margins and likely dilute your brand in the process. Plus, if customers decide to buy again from you in the future they may expect similar discounts.

5. Reserve discounts. “Don’t go into a discounting war,” says Sugars. Since you don’t want to dilute your brand’s value and you especially don’t want to start competing on price with discounters such as Wal-Mart Stores and Target.

6. Focus on service. While expanding your business into markets abroad may be avenues for growth, many small-business owners should focus on their existing customers and clients for a boost in revenue. With this in mind, Sugars suggests focusing on service. “It is one of the best ways to add value without costing money,” he says.

7. Invest in employees. When the going gets tough, the employees you have will be your productivity all-stars, says Lenhart. Make boosting productivity within reason, of course a focal point. For those that rise to the top, be sure to reward them accordingly. “You don’t want to lose your most productive people at this time,” he says.

8. Free up cash flow. While you’re attempting to cut costs and grow sales, “now is the time to call in favors,” says Howard Applebaum, chief lending officer of Sterling National Bank in New York. Be sure to free up your business’s cash flow by asking to have payments to suppliers extended.

9. Renegotiate contracts. If a contract, a lease or other obligation will soon be up for renewal, try to negotiate lower prices. At this point, you may be able to also make cuts, says Applebaum. If you don’t need 50,000 square feet of office space, consider paring down. “It is really a reality check that requires a tough look at your expenses,” he says.

10. Look to expand your business. If, on the other hand, you’re sitting pretty, Carmen Bianchi, director of San Diego State University’s Entrepreneurial Management Center, suggests giving the competition a gander. “Look for weaknesses and instability,” she says. If they’ve been having trouble, you may be in a good position to pick up their business at bargain-basement prices.

10 Tips for Recession-Proofing your Business [Brockblake.com]

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I am among the 61 percent of Americans who believe that the US economy is currently in a downward slope, heading towards a recession or already at the point. Consider the astronomical number of foreclosures, escalating real credit card debt, ever-increasing consumer pricing (with particular concern about skyrocketing gasoline pricing and its domino industry effect), lagging personal income, rising unemployment or underemployment rates … and its easy to agree with the pundits who proclaim that all is not well with our recessing economy.

Despite the unsettling news or perhaps because of it, thousands of merchants across our nation continue to blaze an entrepreneurial path, opening up businesses, cutting a swathe along every conceivable niche. Most of these new business owners will realize the necessity to accept credit cards, and consequently, need to establish merchant accounts. (Consumer credit card use naturally increases during difficult economic times and merchants must accommodate their customers preferred method of payment.)

Knowing the importance of obtaining credit card processing capability, merchants engage in an exercise of due diligence in an attempt to find the best merchant account to satisfy their needs. Here are some criteria to consider when weighing options in the midst of turbulent economic
times:

1) Associated credit card fees – This is an obvious consideration, particularly when business profit must be maximized. As comparisons are performed, all rates must be considered, particularly the discount percentage assessed to qualified, mid-qualified, and non-qualified transactions. Of course, other fees come into play, such as start up, monthly, and annual costs. By comparing apples to apples, merchants may reap the seeds of greater profit;

2) Monthly minimum expense – Many credit card companies charge a monthly minimum – a certain amount of processing a merchant must reach to cover the merchant account provider’s cost. For example, if the monthly minimum is $25 and the merchant has only attained a processing amount of $15 (calculated by taking the discount rate times the associated transaction dollar amount), the merchant would be responsible for an additional $10
that month. This can add up over time and take a bite out of crucial
profit. Many new businesses, particularly during slow economic cycles, experience financial hardship during the first year, and it need not be compounded with unnecessary credit card processing expenses;

3) Cancellation or termination fee – While some merchant account providers waive this cost, many assert that it is a valid charge due to the expenses incurred by the processor. But the cancellation / termination fee can run into hundreds or even surpass the $1,000 threshold. While business owners need to maintain a sense of confidence and optimism, the stark reality is that many businesses will fold … and with greater frequency in a depressed
economy. Other merchants may simply grow disenchanted with their present
merchant account provider, and look for a better solution, usually to cut
costs. As such, a cancellation / termination will only serve as a financial albatross to the merchant;

4) Chargeback expense, policies, and procedures – As the growing financial crunch bears its adverse effects to all, there is simply a greater likelihood that customers will initiate chargebacks, disputing a given charge. Merchant account providers typically assess a fee due to the ensuing investigation. Business owners should know what the fee is (the lower the better), and even more importantly, the merchant account provider’s chargeback policies and procedures. Some merchant account providers are very supportive in helping merchants navigate the process; others are very indifferent and may have policies that are not
merchant-friendly (e.g., a tendency to freeze accounts). It is important to find out your merchant account provider’s modus operandi with chargebacks; and finally, consider ...

5) Customer support – Regardless of your choice of provider, it is important for you to learn the facets of credit card processing. Agents must truly enlighten merchants and hasten the learning curve. After all, in difficult economic times, merchants cannot afford to waste time on trying to figure out or solve problems stemming from their merchant account. There must be a quick resolution so merchants can concentrate on their core competency. Any independent sales organization or agent must provide fast, reliable service, and be available for any problems that crop up.

Despite down markets, merchants can recession-proof their business, and one way is to choose the best merchant account using the aforementioned criteria.

Andy Lax has worked in the credit card processing industry for over five years and is now an Account Manager at IntelliCollect, a merchant account provider that enables business owners to accept credit cards and electronic checks.

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Working from Home: Creating your first website

Starting a home-based business is a huge undertaking. Creating an online presence for your business can be equally overwhelming. Where do you begin to learn the basics of creating your first website? It’s actually much simpler than you think.....

Continued in BIZNESS! Newsletter Issue 67 >>>

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- DemoCamp 17 in Toronto
- Instant Fresh Tea Innovation
- StickK to Your Word
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Continue reading these top stories in the BIZNESS! Newsletter >>>

- When a Goal Become a MUST!
- 5 Great Ways To Use Spreadsheets and Stay Organized
- Choosing A Franchise
- Plan For Success
- Mutual Funds 101
- Incentive Planning Takes Two Brain
- Five Ways to Market Using Email

Continue reading these top stories in the BIZNESS! Newsletter >>>

Can't stand your demanding boss anymore? Start your own business! Before that, be sure to subscribe to our free informative newsletter. BIZNESS! is jointly published by CoolBusinessIdeas.com and GetEntrepreneurial.com What you get in BIZNESS! - the latest new business ideas, small business advice, business tips and info and entrepreneur resources. Everything you need for your brand new business!

Free 20-pages PDF report (worth $38) - "New Business Ideas Report 2007" - included with your subscription. Learn more here.

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This article was provided by Dittman Incentive Marketing, a quality leader in the field of people performance improvement. Since 1976, Dittman has helped companies achieve critical corporate goals via original, one-of-a-kind corporate incentive award programs that inspire sales team motivation, customers to buy more, and others to do more.

Scientists agree that in most people one side of the brain dominates. The right half of the brain controls the creative, artistic characteristics and the left side controls the practical, reasoning functions. Bankers, mathematicians and physicians are directed by a dominant left side. Artists, writers and actors live by the right side of their brain.

Those who successfully create incentive travel programs must be able to call on unusual competencies from both sides, seemingly simultaneously — to call on their ability to be an artist, a poet, a dreamer at one moment and almost immediately transform themselves into a plotter, a planner, a schemer.

One half says, “How do I get people from point A to point B in the most organized, logical and efficient fashion?” The other half says, “How can I make it fun?”

What are the skills needed, the training to be drawn upon, to prepare the two sides of the mind for this “combat”? From the right side come abilities in English, history, foreign language, art and music. From the left come the necessary accounting, math, science, geography and business skills.

English and History
A good incentive travel proposal provides a romantic, moving description of the travel experience as the guests will live it. The promotional materials also transform a piece of geography (the trip destination) into a living, breathing entity. The materials that prepare the winners for the travel experience fuel their fantasy. So you need the poetic skills of a great romantic.

Yet our writer must also have the discipline of a journalist. The proposal must deal, in almost checklist fashion, with the elements that are included in the cost. The rules of the program must be written in clear, precise, direct English. And the trip preparation materials must be quickly and easily understood.

The clearly superior incentive travel program uses the customs, the culture, the history of the travel destination to bring its uniqueness to life.

To be in a position to make that destination the foundation of a lifelong memory for the guest requires, at the very least, a good sense of history; to do it well calls for a genuine, heartfelt interest and knowledge of history.

The best travel programs inform and educate as well as host and entertain. And the incentive travel professional educates while he or she entertains.

Foreign Language
Do not mistake the intention here. An incentive travel creator need not be fluent in multiple languages to be successful. But a person who takes on the role of operating travel programs abroad can be of maximum effectiveness if he or she has a strong working knowledge of at least one foreign language.

And, most importantly, the key to fluency in any foreign language is a sound structural knowledge of English. An understanding of the nuances within a language, and the relationships of different languages to one another, yields a deeper understanding of the differences among people.

Art and Music
Music is not all rock and roll. And Leroy Neiman is not the most acclaimed painter who ever lived. The majority of guests on an incentive program are at the point in their lives where they are searching for truth and beauty. Close your eyes and picture listening to Mozart or Strauss being played in Vienna. Now, keep them closed and picture yourself soaking up all the beauty of a Renoir or a Monet in the Louvre.

The artists and composers … the poets and sculptors and writers of the world have made a more lasting impression on our lives than all the generals and politicians and statesmen. And it is up to the incentive creator to use them … to bring them to life.

I’ve referred to only five subjects that call upon the right side of the mind; by extension, philosophy, sociology, psychology and anthropology are included, as well. In short, the liberally educated man or woman “for all seasons” is best equipped to create heart-moving, mind-filling, exceptional incentive programs.

Now, to the left side of the brain.

Accounting
Could there be two people as opposite in essential nature as the poet and the accountant? Yet they must co-exist in the mind of the incentive creator. Line item costs must be budgeted, reconciliations made, the cash flow needs of suppliers, corporate sponsor and incentive creator prioritized. Foreign currency fluctuations must be dealt with. International monetary transactions are a daily task. And most important, the program must be done within budget, with a fair profit for all.

Math
We speak here not of trigo-nometry or differential calculus, but rather, of the basic arithmetic and algebraic manipulations that put one in command of numbers and, in turn, in command of problem solving.

If you’ve constructed a per-person price on a program, part of which is arrived at by amortizing $25,000 in fixed costs over 375 projected guests, what is the new price if you only have 320 guests? What formula can you fix in your mind to tell what time and what day it is in Bangkok when it’s 2 p.m. on Tuesday in Indianapolis?

These are the kinds of questions you must be able to handle without too much time, effort and anguish.

Science
Here again, not advanced chemistry or nuclear physics is required, but rather, a working knowledge of basic physical science and the human machine.

What are the effects on the human body of a 15-hour plane ride across eight time zones? What do you do with your guests the first 48 hours in Hong Kong to help them adjust to their new daily schedule? What season is it in Buenos Aires when it’s summer in New York?

If you’re not curious about the answers, then incentive travel planning is not for you. If you plan a major party the first night in Hong Kong, or if you think you’ll find the warming sun of Argentina baking you to a golden brown in July (where it has reached as low as 28 degrees F.), you’re doomed to fail.

Geography
The need for this body of know-ledge is self-evident. The consummate incentive travel expert knows the world as well as most people know their living room and knows not only the topography, the major points of visual interest and the capital, but where the water is and whether it’s drinkable or swimmable. Enough said.

Business
I’ve left the most important element for last in the hope that it will linger the longest in the reader’s mind. The most common misconception about incentive travel — and the one that does the most damage — is that we are in the business of running “trips.” We are not.
We are in the business of helping corporate marketers reach their business objectives. And to do that, the incentive creator must first understand enough about his or his client’s business — its style, product, goals — to create a program that is a sound business proposition. To survive, the incentive creator must be a pragmatic business pro.

The Challenge
Incentive travel, as the Society of Incentive Travel Executives defines it, is “a modern manage-ment tool used to achieve extra-ordinary goals by awarding participants a travel award upon their attainment of their share of the uncommon goals.” It is a basic tenet of the free enterprise system that the greater the effort, the greater the reward. The key words in the SITE definition are “extraordinary” and “uncommon.” One doesn’t earn the extraordinary for doing the common.

Quality control people are expected to control product quality. Accountants are expected to keep the books properly. And salespeople are supposed to sell, to meet set quotas.

People get paid to perform these tasks to measured standards. How, then, do we help people to overachieve, to extend themselves well beyond usual standards? The answer lies in the human psyche. We work for money, of course, but there live in each of us two human drives that, combined, explain why incentive travel works.

The first is the need for applause, the need to feel appreciated by our employers and admired by our peers.The second motivator is the desire to travel, to see strange, new places. When you take your overachievers away to a distant place for the purpose of applauding them, you have married the dual needs for self-esteem and self-actualization … and have created the most powerful, inspirational force of all.

Your company can set goals for its people well above the norm of expected performance by saying to them, “Achieve your goal and we will take you away for the travel experience of a lifetime.” This motivator is usually directed at sales personnel, but is increasingly being applied to non-sales employees to motivate them to achieve quantifiable goals such as improved productivity, quality and cost control.

You’ll note that I didn’t say that the overachievers “win” a trip. They don’t “win” anything; they earn it, through their efforts. And it’s not a “trip” they earn, but a travel experience. After all, if you ask a salesperson to work smarter or harder, or both, you can’t reward the effort with a week in the Caribbean that they see advertised in the New York Times for $499. When I say, “an extraordinary travel experience,” I mean a program so extraordinary that participants couldn’t duplicate it, no matter how much money they had to spend.

This may be a tall order, but it is the reason why incentive travel has worked to move billions of dollars of products for thousands of corporations across the country. It’s the very reason that incentive travel challenges the mind as no other profession does.

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There are many ways to market a home-based business. But one of the simplest ways is to use an every day business tool - email. By using these five easy tips you'll see how easily your business can grow without much effort on your part.

1. Use a Professional Signature - This is an important tip to use on every email that you send. Even your friends may not always remember your website address or business phone number and will quickly look to an old e-mail to look it up.

When preparing an email signature it's important to include Your Name, Company Name, and your Physical Address or Website Address. You may also include your phone number. Below is a sample Email signature:

Jill Hart 888-241-0990 Christian Work at Home Moms http://www.cwahm.com

The signature is simple, easy to read and includes a link directly to my website. It is very important to include the http:// before the website address because many email programs will not link the text to your website without this (it will appear as text - not a link).

Also, make sure that you double check that you have your website correct. Often times I've found that people have their website wrong by inverting a letter or two and aren't aware of it. It cannot only lead to a loss of a sale, but it shows less professionalism on your part.

You can also use a virtual business card as your signature. You can design and purchase your own virtual business card at http://www.vistaprint.com. There is a very small cost - less than $2.00 for this professional looking virtual signature file.

2. Find a "Signature Buddy" - This is an easy and cost-free way to spread the word about your business. Ask a colleague or friend if they will "swap" a line in their signature with you. You will add a line at the bottom of your signature with a link to their business and they will do the same.

Jill Hart 888-241-0990 Christian Work at Home Moms http://www.cwahm.com

Publishing and book marketing - http://www.virtualwordpublishing.com/

The signature "swap" can be as simple as a line (as above) or as much as a 2 - 3 line testimony of why you're recommending this link. You can find a permanent signature "buddy" or change it weekly or monthly.

3. Send Email Coupons - This is a great way to network using email. Send a special coupon by email that is available only for those that receive your emails. You can also extend this to a newsletter if you have one. Offer a special coupon for anyone who signs up for your newsletter!

You can send other specials by email as well - special offers, free gifts, ebooks, etc. There are many ways that you can utilize your email to bless your customers and colleagues.

4. Create a Custom Background for your Email - This is easier to do than it sounds. If you are using Microsoft Outlook or a similar program, you can find directions on creating your own custom signature online at places like http://www.mailmsg.com/outlookstationary.htm.

Custom email stationary can take a plain email and make it look professional. I include my logo and my website name in my custom background. Be sure to make the picture "light," so that it does not compete with the text of the emails you'll be sending.

5. Send Thank You Emails - In this day and age it is very acceptable to send a Thank You card via email. This is an easy way to thank customers, advertisers, and even newsletter subscribers.

You can create you own Thank You or use a program like Yahoo! Greetings. Many of these programs have free e-cards that you can send as well as a paid version with additional designs. Another great place is Hallmark.com where you can get customized greeting e-cards for any occasion, free. It's a great way to remember your client's birthdays or perhaps a special day in their business.

You can even set up an auto-responder to send the Thank You automatically. There are many auto-responder programs for you to choose from and many website hosting companies will provide you with one, you'll just need to go in and set it up.

One great thing about an auto-responder is that you can set up when the email will be sent, what will "trigger" the auto-responder and what the email will say. This way, any time you receive an order, the customer receives an email immediately, even if you're not available.

One downfall to auto-responders is that they can seem impersonal. However, you can overcome this by taking the time to write a personal note to your customers and use this as the auto-responder email.

Can you see how beneficial e-mails can be for your business? When you use a professional looking signature, find a "buddy" to swap lines in your signature, personalize your email background, use auto-responders and any other items that you are able to customize, you'll never look at email the same way again. Marketing can be inexpensive and effective when you know the right ways to do it.

Jill Hart is the founder of Christian Work at Home Moms, CWAHM.com. She graduated from Grace University with a Bachelor's Degree in Human Development and Family Studies/Bible. Jill has worked from since 2000 and started her own home-based business to assist other Christians who desire to work from home while maintaining a godly life.

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As a solopreneur there is always an endless list of projects that we want to work on or need to complete in order to grow our business. If we don't plan properly and build in time to work on these projects we can very quickly become overwhelmed, and in the end we don't complete anything.

This first quarter I've launched two products, revamped my website, hosted a teleclass series, and launched a new service, all of which have been achieved without sacrificing client work, and without staying up until the wee small hours of the morning!

So, how do I achieve all of this, and still manage to have some free time?

Quite simply, I plan! And today, I'd like to share with you my top five tips for planning for success!

1. Create a Project Planner. I have my own one-of-a-kind List Building and Marketing Workbook that I use to plan which projects I am going to work on and when. This spreadsheet is at the heart of my business; I keep it handy so that I can refer to it often, and I update it on a regular basis.

It sets the scene for projects that I want and need to complete for the year, although I don't necessarily plan out the whole year in advance! I plan by quarters. That makes it much easier and more achievable than trying to plan out the whole year, although I may add projects to my planner well in advance!

2. Create a Timeline For Your Projects. Are there some projects that you can't complete or begin work on until you've completed a previous one? For example, one of my projects this year is to set up and run an affiliate program for my products; however there is really little point in me working on the affiliate program until I have some products to sell! So first I need to create and launch the products, then work on the affiliate program. So when planning for this, I know that I can add affiliate program set up for at least six months ahead.

3. Set Aside The Time To Work On Your Business. I have one day a week that I set aside for business development and marketing activities, such as developing info products, writing my newsletter, submitting articles, or some other activity on my List Building and Marketing Workbook. On this day I don’t do any client work (if a client has an urgent project then I may have to rethink) but as a general rule this is the day and time I have set aside to work on my business.

4. Plan The Time For Client Work. Set aside specific days/time each week that you are available to work on your client and income generating activities so that they do not get overlooked. Put this time down in your calendar so that you will stick to it.

5. Do Not Allow Yourself To Get Distracted. The truth is I only have a very limited amount of time during which I can work with my clients and work on my business. The time I do have I protect it closely and really focus on what it is I need to do, whether that’s client work or working on my business. During this time I won’t let myself get distracted by going off and reading emails, becoming involved in discussion groups, or even running personal errands.

By really focusing and making the best possible use of the limited time you have available, you can can achieve A LOT! I know I do!

Online Business Manager & Virtual Assistant, Tracey Lawton, supports professional speakers, coaches, and authors to operate an efficient, organized, and profitable business. Learn how to create an efficient and organized office in 7 EASY steps, and receive free how-to articles at http://www.OfficeOrganizationSuccess.com.

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Whatever you believe is true...at least to you.

Averages, don't you love them? What mama ever said to her children that the goal in life
is to be "average"?

Lowly manager...Largest asset

Sometimes it's more but on "average" 40% of a business' assets are in the form of
accounts receivable...short term money due from the sale of a product or service. In direct
contrast to the size of the asset that they are responsible for creating and managing,
credit managers are most often lower echelon managers who are at the very least one
step removed from the corporate decision makers...and their paycheck reflect it.

Forget the traditional organization chart with branches that in turn branch off and so on.
Instead of organizational charts think of totem poles...the carved columns erected by
the Native Americans of the Pacific Coast.

Totem poles are representations of men and animals and of their relationship. Now
forget about corporate titles, initials after names, and the size of the paychecks earned
by different business managers; instead focus on their ability to influence profitability.
Where would credit managers sit on the totem pole; close to the top, in the middle,
at the bottom...if at all?

The Pay Back

When allowed, encouraged, and supported by "upper management"; credit managers
can and should seek to find ways to say yes to new profitable sales, to keep existing
credit customers current and buying and to identifying and communicating cost reducing
opportunities for improvement through out the entire business chain of suppliers,
sellers and customers.

A credit application can represent the successful result of marketing and sales efforts,
a customer wanting to buy, or a risk for non-payment...of loss if the customer fails to pay.
Corporate attitude will determine how performance is measured and if DSO (days
sales outstanding) and % bad debt are used the message to the credit manager is clear,
"be real careful who is approved for credit and if a credit customer fails to pay within
terms ..throw them on credit hold/stop". The end result of focusing on and measuring
for risk will be great DSO and bad debt numbers ...but at what cost/loss?

Instead of measuring for risk a company should measure for profit and if it does credit
approval becomes the process of finding a way(s) to say yes to profitable sales . The
profit measurement looks at the % of applied for dollars approved, or exceeded.
Measure for profit and past due A/R management (it's not collections) becomes the
"Completion of the Sale" with the goal being to keep credit customers current and
buying. With repeat sales often being the most profitable, companies should measure
for % of credit customers current...and buying. If the total credit line (never credit limit)
for all credit customers is $10,000,000...what % of the total line is being utilized?
...and are those customers with an unused line being encouraged to buy more?

A secondary goal of Completion of the Sale (past due A/R management) is the
early identification and control of the small % of past due that represent a potential
for loss...type two financial serious and type three avoiders.

The largest percentage of past due A/R are tied to something going wrong. On
"average" 70% or more of past dues are type two system related...something went
wrong somewhere. In the process of identifying, fixing and communicating those
things/processes that have gone wrong; the credit area can help drive down
everyone's costs. Constant improvement in how things are done provides a
payback far greater than more new sales, repeat sales, and improved cashflow
combined.

Numbers and results

Payment on account and expectation fulfillment are linked. If a customer orders
a green "whatever" and is shipped a blue "whatever" the seller shouldn't expect
to be paid. Employees are kind of like that; they tend to go with the flow , with the
expectation. If credit managers are low paid, if they are thought of as the "ugly
step-child of accounting" and if their performance is measured by DSO and bad
debt loss...not much is being asked nor is likely to be delivered. On the other hand
if a company measures for profit...for new sales, repeat sales and improved
efficiencies...cash flow and bad debt will take care of themselves.

Total Cost of Business

On "average" 25% or more of the total cost of doing business is tied to inefficiencies,
to things not being done as right as possible the first time. And not to be repetitious,
but the credit manager in a company is like the man following a parade with a shovel
...when something goes wrong the customer doesn't pay and in the process of fixing
things the credit manager interfaces with just about every aspect of business; and if
asked the credit manager can point out improvements that drive down everyone's cost
of doing business.

Summary

Whatever you believe is true and it's the same for companies...whatever they measure
for defines their thinking, their attitude.

The full profit potential of a business is influenced by its attitude toward the credit
function and to Credit's placement on the corporate totem pole.

And if your company still measures for DSO and % bad debt...your attitude is showing.

Abe WalkingBear Sanchez is an International Speaker / Trainer / Consultant on the subject of cash flow / sales enhancement and business knowledge organization and use. Founder and President of www.armg-usa.com, WalkingBear has authored hundreds of business articles, has worked with numerous companies in a wide range of industries since 1982 and has spoken at many venues including the Shakespeare Globe Theater in London.

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People who achieve their goals are those who are truly committed to get what they want. To them, their goals are not a mere wish or a weak desire. They are an absolute must.

When a goal becomes a must, we operate from a very different frame of mind. When something becomes an absolute must, we will do whatever it takes to get it (within ethical, legal & moral boundaries of course).

When something becomes a must, we will stretch well beyond our comfort zones and keep changing our strategy as many times as it takes.

Time and again, you will notice that people who succeed are those who show this level of commitment. In fact I believe that failures, setbacks and frustrations are life's ways of testing our level of commitment.

Most people fail this test by quitting when they hit major obstacles. The few who succeed do so because they do whatever it takes to overcome obstacles.

I truly believe that when something becomes a must for you, and you are willing to do whatever it takes, you will always find a way!

For most people, achieving success in anything is rarely a must. They would like to lose weight, but it is not a must. They would love to make more money, but they won't die without it. They wish they could take charge of their lives, but they could live without it.

The moment something becomes a 'should' instead of a 'must', you will rarely achieve it. You will always find a way to put it off or to quit the moment you meet resistance.

People like Sylvester Stallone, Steven Spielberg or a Donald Trump who achieve success are not born more focused, more disciplined or more lucky than the average person.

What makes them different is that they make their goals a must for themselves. They are not willing to accept anything less than the best.

So let me ask you a question.

Are your dreams and goals an absolute must or are they just weak desires that you can live without? Have you been truly committed to do whatever it takes in the past or have you quit and given yourself excuses along the way?

If you haven't then it's time you take yourself and your goals seriously because if success isn't a must for you then there is no way that you can become successful. Because success only reserves itself for people who want it bad enough to make a MUST!

Adam Khoo is an entrepreneur, a best-selling author and a peak performance trainer. A self-made millionaire by the age of 26, he owns and runs several businesses in education, training, event management and advertising, all with a combined annual turnover of $20 million. His best-selling "Patterns of Excellence" is a complete step-by-step system that will literally program you for success in life.

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Does just the mention of the word 'spreadsheet' cause your mouth to go dry? Do you immediately think of sums, formulae, and figures?

Well fear not any more -- I'm here to tell you that spreadsheets aren't just for sums!

I'm going to share with you my favorite top five tips on how you can use spreadsheets in your every day business to help you keep organized and on top of your work - and there isn't a formula in sight!

No.1 'To Do' List

How do you manage your day-to-day tasks? Do you have a notebook for your To Do lists and cross out each one as you go along? Or do you have little yellow post-its stuck all over the place? Is this really the best way of managing your daily tasks?

Spreadsheets are a great way for you to organise your To Do list. Set up headings in the first row and add your tasks below. You can then sort your list by any column that you choose, making it an interactive To Do list. And best of all, your list is contained in one place.

Create a shortcut to your To Do list and place it on your desktop so that you can access it easily, or just keep it open and minimise your screen each time you're not using it.

No.2 Log Registration/Password Data

Another great way to use spreadsheets is to keep track of all those websites that you've registered at, and need to insert a username and password in order to gain access to.

Even though I try and keep to the same username/password I sometimes find that a website will require you to insert your username or password in a certain way, with digits as well as letters, or a minimum of six characters etc. etc. and then it starts to get confusing remembering which username/password for which site!

Set up a spreadsheet to track key data, and keep tabs on this crucial information in one easy-to-use place. As your list starts to get longer, you can also sort your data into alphabetical order, making it even easier to find your registration details.

No.3 Create a Simple Mailing Database

Another great use for a spreadsheet is to set up a simple mailing database. Perhaps you've researched a target market and want to send them a mailing. By creating a spreadsheet to input their name, address, phone number, email address, and website you can easily keep a track of your data.

You can also use this data to carry out a mail merge via Word. Create active hyperlinks for the email and website addresses and you can email or visit their website directly from your spreadsheet.

And if you add an additional column for 'Responses' you can simply monitor your success rate too!

No.4 Track Potential Clients and Follow-ups

If you regularly have enquiries from potential clients, whether they're phone calls or directly via your website, you can set up a spreadsheet to track this data. You can see where your enquiries are coming from, which method of marketing is the most effective, and if the prospect turned into a client.

You can also add an additional column for 'Follow-up Date' and perform a sort on this column so that you know who to follow up with and when!

No.5 Monitor a Project/Activity Planning

Because spreadsheets also accept date formats they are a great way to track projects or plan activities. You can easily use autofill to create a date timeline too. Use the column headings for your dates, and the rows for your activities.

As you work along the timeline, you can hide the columns with past dates, showing only those columns for current and future dates. And if you want to be really creative, use different colours for the cells to represent different activities.

There are so many more projects that you could use a spreadsheet for that don't require you to input complicated formulae. When I was compiling this list for you, I thought of twice as many again, all of which would help you to organise your day-to-day business activities.

Online Business Manager & Virtual Assistant, Tracey Lawton, supports professional speakers, coaches, and authors to operate an efficient, organized, and profitable business. Learn how to create an efficient and organized office in 7 EASY steps, and receive free how-to articles at http://www.OfficeOrganizationSuccess.com.

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This article is by our guest writer Sandra Hajda, a freelance journalist, publisher and avid investor. Sandra resides in Melbourne and can be contacted at hajdasandra@hotmail.com.

It’s increasingly recognised that shrewd investment is essential to achieving a high standard of living, especially after retirement. The web is awash with stories of middle income-earners (teachers, laborers and IT professionals) who have created extraordinary wealth by studying the markets.

The average investor can expect to live more comfortably (not everyone will rake it in like Rene Rivkin!). But financial terminology is prohibitive, to say the least: a minefield of jargon, abbreviations and subtle distinctions that may take years to master. Here’s our helpful introduction.

Bond Investing

A debt instrument. When you buy a bond you become a creditor- the idea is that someone uses your money to raise capital (for their business, say). The bond is a promise that you will be repaid with interest by a specific date (maturity). Popular index: Merrill Lynch Domestic Master.

High Yields

Feeling brave? Looking for high risks with high potential returns? Then you want high-yield bonds. High-yield is basically a rating: it means a bond is regarded as ‘risky’, with high probability of default (the bond equivalent of bankruptcy- you get zilch!). If there’s no default, the payout will be oh-so-sweet.

Money Market

The market for borrowers and lenders whose transactions are settled within thirteen months: your short terms investments. If you’ve ever invested in a Money Fund (particularly Repurchase Agreements), handled a Certificate of Deposit, or made a deposit in US dollars outside the United States, you’ve participated in the Money Market.

Investors

Anyone-or anything- that makes an investment; individuals make up only a tiny percentage of active investors. Venture Capital Funds, Investment Banks, businesses, Investment Trusts, Hedge Funds and Mutual Funds are all investors, and most are prepared to invest on your behalf.

Equity Funds

These funds invest in equities, better known as stocks. The goal is long-term growth. The Money Market can offer immediate liquidity, Government Bonds offer safety, and regular Bonds give maximum income, but Stock Funds give the highest probability of a big payout. If you’re willing to wait.

Market Timing

Market Timing is the strategy used to buy or sell; it allows you to profit or lose. Many sophisticated theories (such as Time Zone Arbitrage) have tried to predict the market, but most analysts regard investment simply as a form of gambling.

Investing for Beginners

First choose a good broker. Ask yourself: do I want someone selecting my investments? If so, use a Full Service Broker (eg. Morgan Stanley). They’ll set you up with a package of bonds and stocks. Feeling independent? Sign with a Discount Broker, watch the indices yourself and make the decisions.

Hedge Funds

A hedge fund attempts to offset losses by ‘hedging’ its investments; Short Selling is the major strategy used. The hedger sells an asset he doesn’t then own, hoping to purchase it later once the price has decreased. By ‘shorting’ hedgers can profit from price decreases as well as price rises!

Emerging Market

The markets of developing countries, including China, India, South Asia, Mexico, Latin America and some of Eastern Europe. Political events play a bigger role in influencing the markets in these countries; theoretically you could profit by reading the papers and selling assets quickly when you smell political upheaval.

Investing in Gold

Can be done by purchasing shares and derivatives or by literally owning bullion! The gold price is influenced by changes in sentiment, gold hoarding and the activities of the International Monetary Fund. Thought to preserve wealth in the face of inflation, but won’t offer the long-term returns that stocks do.

Now that you’ve done the groundwork those rambling financial articles won’t seem so daunting. Happy investing!

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"Wisdom is the integration of thought and analysis based on accumulated
experience." Elkhonon Goldberg "The Wisdom Paradox"

Improvement starts with acceptance that a business doesn’t have to be
sick in order to get better.

Some years ago the CEO of a 3rd generation manufacturing company asked
that I conduct an evaluation of his credit operation. The company was
expanding into Europe and with the expansion came greater demands on
the ability to extend credit and cash flow. Following breakfast at my hotel
the CEO and I drove out to the factory and administrative offices. On the
drive out the CEO continued the story he’d started over breakfast. His
grandfather and father had built the business and now he and his brother,
who was the VP of sales, were trying to take the company to the next
level in growth.

We parked in the back of the building and as we walked through the
production area on the way to the administrative offices, we must have
passed by at least 20 production people…and there was silence. Not one
of the employees we encountered said good morning, hello boss or even
nodded…and neither did the CEO.

We met with the CFO, the Credit Manager, the Customer Service
Manager, and the A/R and A/P Managers…all women. The brother?,
he’d stuck his head into the room and then disappeared.

I’d ask a question of the group and as one of the women would start to
answer the CEO would butt in…soon the women shut up and the only
voices heard were mine and the CEO’s. After I broke up the meeting I
went to each member of the group individually to ask my questions.

On the way to the airport the CEO and I stopped for lunch and he wanted
to know what I thought needed to be done. I told him that his people were
approaching credit and A/R management in an old an out of date risk
management way…like many other companies. I told him that I had an
associate who in a week’s time could train his staff on our "profit "
approach and that he could help organize and document the knowledge
needed to ensure proper implementation.

The company president asked why I wouldn’t be doing the training, and I
said to him, "I don’t like you."

The man was shocked. "Why don’t you like me?", he asked. I was hoping
he’d ask and I said to him, "All the production people we passed were
brown or black and you didn’t greet any of them and on their part they
looked away from us. All the people in the front office are white and every
time one of the women in our meeting tried to say something you cut them
off as if what they had to say was of no value." I went on, "I don’t have to
look at any numbers to know that you have a high absentee and turn over
rate. Morale is bad because the employees don’t like you and that leads to
poor productivity and poor work quality. If you want to expand to Europe
you better know that those folks expect quality."

All was quiet for a few minutes and I wasn’t sure if I was going to have to
catch a taxi to the airport, and then he said, "You’re right , we keep retraining
new people and we’ve had a big problem with quality and with employees
stealing from us. My father and grandfather were loved by the employees
and they would do anything for them but neither my brother nor I seem to
have that ability." We drove to the airport in silence.

In my follow up report I suggested to the CEO that he and his brother find
themselves a GM (general manager) who liked people and wanted to be
liked in return. To his credit they found such a person and things got better,
he also had my associate out for the week.

The Point

Great Customer Service starts with great Employee Relationship Management.

It Will Make You or Break You

Marvin Minsky in his book , "Society of Mind" says that the human mind is
made up of thousands of learned agents/programs none of which on their own
define the mind, but collectively they make up the mind. Every business and
organization , including government, is a collection of people and none on their
own, including the CEO, define the organization but collectively they are the
company/organization.

Three Areas of Relationship Management

1. Employees. The highest priority is good relations with employees
because if they are unhappy your customers better look out. An
old friend once said to me, "If mama ain’t happy no one’s happy."
2. Vendors/Suppliers. Vendors are critical to your success and if you
disrespect and abuse them they’ll get even, and the word (buzz) will
get out on your company and then others will demand a higher price
to work with you,… if they‘ll work with you at all.
3. Customers. You might be able to get away with abusing consumers
because so many businesses do, because they have short memories
and because there’s a lot of them and more on the way. Business/
commercial customers are fewer in number and t