Month: April 2008

Categories
Finance & Capital

Mutual Funds 101

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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!

Categories
People & Relationships

Forget Customer Service – Think Relationship Management

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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 they have generational
memory. Get on the wrong side of a business customer and you find
that long after the reason is forgotten the bad taste lingers on.
In Closing
In human society all real meaningful change comes from the masses.
Institutions fight change even if it’s an improvement. James Russell Lowell
wrote, “He who is firmly seated in authority soon learns to think security
(their own) and not progress.”
In a business change must come from the management team. Business
managers need to take time to seek out improvement or they’ll get lost in
the day to day details.
It’s up to the top managers to be leaders and set the example of what great
relationship management looks like, sounds like and feels like…and if they
can’t do it they need to get help.
AbeWalkingBearSanchezPhoto.jpgAbe 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.

Categories
Franchise

Choosing a Franchise

busineesman-calling.jpgMore and more, women are discovering that franchising is a great way to become a business owner. Whether your background is banking or baking, marketing or mothering, you’ve probably developed a set of skills that will translate to any number of franchise opportunities. And, because a franchisor will provide you with the systems, operations and training, you can make a complete career change without starting at the bottom and working your way up!
But how do you find the franchise opportunity that is right for you? With several thousand franchised businesses in the U.S., your options are nearly limitless. But don’t despair – here’s a list of steps you can take to narrow the choices to a few that really match your needs, skills, personality and aspirations.
ONE
The first step to finding that perfect franchised business is to take a serious look at what you, the potential franchisee, will be able to offer.
1. What skills, experience and interests do you have?
2. How much money can you invest and how much would you like to make?
3. Are you comfortable managing others or would you prefer to work alone?
4. Where do you want to work? Are you willing to relocate?
5. What hours are you willing to work and what lifestyle expectations do you have after the business is established?
6. How do you feel about selling and the sales process?
7. What do you feel to be your strengths and weaknesses in business?
Make a list of your answers to all of these questions and then use this as a guide as you do your research. This will help you quickly eliminate those businesses that just don’t fit and help you stay focused on what is important to you.
TWO
Now you are ready to begin doing some serious searching. Start with item 1 on your list and think about your talents and interests. Do you love working with children? There are a plethora of wonderful franchises that enhance the lives of children and help their parents – everything from baby aerobics to teen tutoring. Is travel your passion? Why not consider a travel franchise?
Did you slurp a delightful fruit smoothie while on vacation but can’t find the same brand in your neighborhood? Maybe that’s the business you’ve been looking for. And don’t overlook service businesses – they can offer high profits for a low investment.
Another source to get you started is a franchise advertising website, such as Bison.com. These sites often have the franchise companies organized by category to help you narrow your search and usually list the basic financial requirements of the business and the type of franchisee they are looking for.
THREE
At this point you have found a number of franchise companies that look promising and you’ve compared the information available on their web sites against your list. Your next step is to contact these companies and request their UFOC (Uniform Franchise Offering Circular, a document every franchise in the United States is required to provide) and then to review it carefully.
The UFOC will tell you the history of the company, the training and marketing programs, and what costs, royalties and fees you will be required to pay. Some franchisors also provide earnings claims in the UFOC that will help you estimate the potential of the business.
Franchise companies are required to revise and file their UFOC yearly and whenever major changes are made so the information is usually very current. By paying attention to what you discover in a company’s UFOC, you can weed out franchises that just don’t measure up. Some warning signs of a franchise that is facing challenges are extensive litigation with franchisees or a closing rate of units greater than what’s being opened.
FOUR
CALL EXISTING FRANCHISEES! Step four is crucial to your understanding of how the franchisor works with its franchisees. This is not a step you can skip or do haphazardly. Contact information for existing franchisees is available in the UFOC and it’s a good idea to make a list of the questions you will be asking before you make the calls.
Existing franchisees are your best source of information for finding out what really happens in a business on a day-to-day basis. You can ask what they like and dislike about the business and if they are happy with corporate support. They may be able to give you ideas about what they’d do differently if they were starting their business again and even give you a feel for the type of earnings their franchise makes.
Gather a variety of opinions from franchisees in different areas of the country and particularly any franchisees in areas similar to the one you are in. These calls should give you a clear idea of how the franchisor helps a franchisee during the start-up phase, how the franchisee feels about the training and support provided and a better idea of the business culture of the franchisor.
FIVE
Hopefully you’ve now found one or several companies that will meet your needs.
When you’ve made it this far, it’s time to go to Discovery Day (an on-site meeting with a franchisor). At this meeting you will be introduced to the top people in the home office and you may make a visit to a local franchisee, allowing you to ask even more questions and maybe to get some hands-on experience with the business.
Discovery Days are very interesting and exciting. When you leave, you will have a good understanding of the franchise. Don’t forget that this is a two-way street. They’ll be evaluating you as thoroughly as you evaluate their business.
SIX
Your last step is both exciting and terrifying at the same time: you need to make a decision. If you have followed all the steps and have been very honest with your self-evaluation and research, you should have confidence that you are making the right decision. Be aware that fear is a normal reaction to new experiences – just don’t let it stop you from achieving your dreams.
Congratulations – you’re ready to be a franchisee!

KimberlyEllisPhoto.jpgKimberley Ellis is the President of Bison.com, a leading online resource for franchise and business opportunities. She has been quoted as an industry expert in USA Today, Wall Street Journal and a variety of local and regional publications regarding trends in business and franchising. Kim combines her entrepreneurial spirit with a diverse background in marketing and operation to help others succeed in franchising.

Categories
Success Attitude

The Keys to Creating Powerful States for Peak Performance

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At any point of time, you create your own states!

If you are feeling confident, then you are creating that confidence within yourself. If you are feeling depressed, you are creating your own depression. When you are motivated, you are creating that state of empowerment.

No one or nothing can affect or change your state unless you choose to allow yourself to get into that state.

Is this really true? Well, think about this. Why is it that two people can encounter the exact same event, but feel totally different about it?

One person may experience fear at having to speak in front of a large audience, while the other feels totally relaxed.

One person may feel totally motivated coming into the office, while the other feels bored & tired. One person may feel inspired and challenged when faced with an obstacle while another person feels demoralized.

So, you see, it is not what happens on the outside that affects a person’s state, but what happens on the inside.

So how do we create our states? When we are feeling totally motivated, how do we create this state? When we are depressed, how do we create that depressing mood?

How we feel at any moment in time is determined by both of these Keys: 1. Our Physiology 2. Our Internal Re-presentation.

Your Physiology Affects Your State

The first thing that determines the state you are in is your physiology. Physiology means the condition and use of the physical body.

The condition of your body has a direct impact on how you feel. Do you feel different when your body is well rested and physically vibrant?

When your muscles are relaxed and your cells are bursting with energy, you are most likely to be in a peak state.

Conversely, after a night of tossing and turning with worry, having insufficient sleep, won’t you feel your muscles aching and your joints being stiff?

You will easily get into states of tiredness, frustration and depression, non of these being very resourceful states.

This is why it is so important that our body is maintained in peak condition through both proper diet and exercise.

Highly successful individuals from Presidents to pop stars are consistently able to be in peak states because they keep themselves in peak physical condition through comprehensive exercise regimes.

Engaging in daily aerobic activities like swimming, running, cycling or jumping on the trampoline has an effect of oxygenating our body much more readily.

As oxygen and nutrients are carried into our bodies, our cells are nourished more effectively, giving us a lot more energy!

When our physical body is in a peak condition, we will find ourselves being in peak emotional states as well.

Your Internal Re-presentation Affects Your State.

The second factor that affects our state is your internal re-presentation. Your internal re-presentation is a fancy term meaning “How and What we think about.”

What we perceive is not reality but an internal re-presentation of reality. It is how we internally re-present what is going on around us inside our mind.

This is why two people can encounter the same event, represent and feel very differently about this same event in their minds

Some of the key filters that determine what we delete, distort and generalize are our Beliefs, Values and Attitudes.

Because different people have different beliefs, values and attitudes, they delete, distort and generalize things very differently.

As a result, all of us experience a very different re-presentation of the world.

Some people have powerful beliefs, values and attitudes that allow them to constantly re-present things in a way placing them in an empowering state while others constantly re-present things in a way that puts them in a lousy, ineffective state.

Successful people are able to take charge and consciously direct their states from moment to moment. Unsuccessful people, on the other hand, find themselves constantly at the mercy of their (bad) habits and their environment.

By taking charge of our physiology and forming empowering internal representations, we have the keys that will allow us to be in constantly resourceful states enabling us to perform at our peak.

Categories
Home-Based Business

Working from Home: Creating your first website

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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’d think. Listed below are a few tips and tricks to make your first website pain-free.

First, you’ll need a Domain Name. A domain name is what your website visitors will type in to visit your website. For example, the domain name that you would type in to find Christian Work at Home Moms is www.CWAHM.com – “CWAHM” being the actual domain name portion of the website address.

You can purchase a domain name for less than $9.00 a year at places across the internet, such as www.GoDaddy.com. On the main page of GoDaddy.com you’ll find a spot where you can search to see if the domain name that you’d like to purchase is available. You want the domain name that you choose to be descriptive and easy to remember.

Next, it’s time to create your website. Sit down and write out everything you want your website to include. Make a list of all the products, details, prices, and options your customers will want to know. The more information you give the customer upfront, without making them search your website, the more sales you’ll make. Customers like clean, warm websites where they feel that they have all of the necessary information and can trust the person they are purchasing from.

Now it’s time to plan out the design and layout of your website. This aspect is very important. You will need to make sure that your layout is clear and easy to navigate. If possible, include a menu that is easy to find and contains all of the different sections you’ve included on the site.

Also, consider a “site map”. A site map is a page or section of the website that contains a full layout of every page and topic on the website.

Many small websites overlook this, but it is a very simple way to give your visitors an overview of all that you offer. Almost all large websites use site maps to aid their customers. Consider eBay – what website do you know that makes as much in profit as eBay? There aren’t many out there. When you visit eBay, the third link on the website, right up by the logo is “site map”.

Why do you think eBay put their site map in such a prominent place? They know that the visitors to their site get easily overwhelmed. When you click on the eBay “site map” link, you get a complete overview of the all that eBay offers – from registering on the site to contacting their customer service departments.

When planning out the layout of your website, there are, of course many aspects to consider. A few of the most important things to think about are:

How many pages will your website be?

Will your website be showcasing your products or a business opportunity? Or both?

How well do you know your demographic? Will your website be geared toward women or men? What age group are you targeting? What are their interests? What will catch their eye?

Compile this information and start to map out the graphics, pictures and text that you want to use on your site. You want the text on your website to be clear, concise and to the point. Your website visitors will want to be able to easily scan your site for the information they need in order to make their purchase. Use bulleted lists when possible and keep your paragraphs to a maximum of a few sentences.

Finally, you are ready to put your plans into action. The easiest way to create your website is by using a website template, such as Google Pages, http://pages.google.com. The template will give you a framework and allow you to somewhat “fill in the blanks” with the text and graphics that you’ve chosen.

You’ve done it. You’ve created an online presence for your business. You’ve picked a meaningful domain name; researched the demographic that you’re trying to reach; and thought out the layout and other aspects of your website in order to create a meaningful website that will be easy for your visitors to use. You’re now ready to direct traffic to your website and make sales.