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Category Archives: Business

Wealth Creation Formula

Income is King

The most important step in the Wealth Creation Formula is creating income. Income is King and without income, you will fail financially. It’s that simple. How important is income? There are countless stories of professional athletes who have become broke, filing bankruptcies, and working regular jobs after retirement. Of course, their bad spending habits, bad investments, and poor money management have led to their financial downfall.

But the one key that most people miss is that once those professional athletes retire they do not produce those million dollar checks anymore. Their professional careers are over and they stop producing that income. Regardless. if they lived a lush lifestyle if they still had that big payday they would be OK.

Once the income especially those million dollar contracts dry up they are in trouble. They still have to produce income after their careers are over. According to Sports Illustrated, after only 2 years of retirement, 78 percent of NFL players were either broke or struggling financially. Within 5 years of retirement, 60 percent of NBA players are broke. When you have expenses and no income to match it the only result is going broke.

Start Where You Are

Income is your source of wealth. Your job or business is the key. Whether you like what you do or not it is producing income. Furthermore, if you are making money there is a chance to create more of it. What I love about the Wealth Creation Formula is that it gives you a blueprint that can be applied to any profession, career, or job.

The best place to start is where you are now. You have a source now it’s time to milk it before it dries up. Your job or your business brings in money. Your next step is to increase your income flow. I will teach you how to do that in the next lesson. For those of you without an income. Go create one now.

Creating Income

If you have a job or a business look for ways to create more income form that flow. If you are unemployed, well you need to get some money. Go get a job, sell some stuff online, go to the streets and beg. You have to get an income flow. You will not get rich without earning money. The question is what can you do now to earn money?

Strategic Management

Reforms and changes undertaken by the World Bank supported Sectoral Adjustment Programs have raised serious questions about the way the public services are run and how users are treated. Managers and politicians at the central level have had to rethink about the management of public sector institutions in Bangladesh. Most of the reforms and changes have been based on two main ideas: firstly reduction of public spending and secondly, the market mechanism is a good thing, if a market style of relationship is suitable, it should be introduced. In many respects the public sector is different from private sector. In public sector the activities of the Government are rarely based on the need to attract customers. Prices are not normally set to maximize profits or market shares. Investment decisions are not generally based on prospective profit. Motivation may even be different; earnings do not wholly motivate managers and workers. ” What all this means is that the values require to run the public services are different from those required to run a successful business. For example, it is rarely appropriate to withdraw from parts of the ‘market’ because they are no longer profitable. ‘Customers’ who cannot afford to pay still have entitlements, which they would not have if they were receiving service from the business. Those entitlements derive from citizenship and social policy rather than from cash.

It has been further argued by the management specialists that values of equity and justice have to play a vital role in the administration in a way that would be irrelevant to most business. 16% of total GDP is controlled by the public sector in Bangladesh. Any reduction in the size of the public sector would be a painful job for the politicians. In response to the growing demand for public accountability and improved performance, public management scholars and practitioners have been coalescing for quite some time around the theme of which have been identified by Hood as being, ‘New Public Management is the idea of a shift in emphasis from policy making to management skills, from a stress on process to a stress on output, from orderly hierarchies to an extendedly more competitive basis for providing public services, from fixed to variable pay and from a uniform and inclusive public service to variant structure with more emphasis on contract provision’ Hood.

It is argued by strategists like Joyce, Quinn and others that in the organizations of any size and complexity, it is possible to manage for result in the long or short run without a well-developed capacity for strategic management process to provide a coherent approach to establishing, attaining, monitoring and updating an agency’s agenda.

Joyce claims that strategic management can help new public services emerge. It can do this by helping to decide what should be done and how it should be done and by creating the dialogue and consensus need to make the changes. He further argues that in the absence of effective strategic management, the new public management services will still emerge, but in more haphazard way. Strategic management, when practiced well, can help to call for transformation to occur more efficiently and creatively. He further states that this is not to say that strategic management is a magic word, or that it can be continued on to work perfectly every time. It is certainly not a simple method of bringing about fundamental changes. One of the key challenges for public services management in the years ahead is to find out ways in which strategic management may be developed and applied to ensure that both performance and innovation are achieved in the interest of better public services.

Write A One-Page Business Plan

STEP 1: DECIDE WHAT YOU WANT YOUR FUTURE TO LOOK LIKE
What do you want your business to look like in 12 months? What annual income do you need to earn? Do you want a 6-figure business, a business that will eventually replace your income or a part time business?

This step is about creating and writing a vision that is authentic to you. One that articulates your true ambitions, desires and purpose. It is not about what you think you should want. Keep it simple, visualise freely and write your vision in the present tense as if you are already living it.

STEP 2: DECIDE ON YOUR DESIRED ANNUAL REVENUE TARGET
What would you like to earn in a year and how many clients you would like to see over that timeframe. Then work backwards to calculate your hourly value.

Say your annual revenue target is $100,000 and you would like to see 20 clients a week for an hour each. Your formula should look like this:

20 clients x 52 weeks = 1,040 clients a year

$100,000 ÷ 1,040 = $96 per hour (This figure will increase when allocating any non-revenue time such as annual leave)

If you manufacture or sell a product then work out how many products must be sold and how much time needs to be invested to achieve those same results.

Next, run a reality check. Based on the previous calculations, ask yourself whether you are prepared to work that many hours or weeks in a year. Be realistic and do not forget to schedule in recreation or vacation time.

Say you now decide you only want to see four clients a day over four days a week for one hour each in order to have four weeks of annual leave. Your formula would look like this:

$100,000 ÷ 48 working weeks = $2,083

$2,083 ÷ 16 clients a week = $130

This shows that your annual revenue target of $100,000 is still achievable if you rework your fee structure or pricing strategy.

STEP 3: DECIDE ON YOUR UNIQUE SELLING POINT
It is important to communicate to your potential client why they would want to choose you over your competitors. They must be able to clearly see a non-monetary difference otherwise they will make a choice based on price. In other words, what is your unique selling point or USP? This could range from a niche service you offer or the extent of your services to your branding or the strength of your credibility.

STEP 4: IDENTIFY THE STRATEGIES THAT WILL HELP YOU HIT YOUR TARGET
Move your focus from short-term goals to a strategic vision that enables you to choose and correct the direction of your course with ease. As long as you are clear about your purpose and future (Step 1), you will be able to write a solid list of strategies.

STEP 5: IDENTIFY WHAT YOU NEED TO STOP DOING
What activities are a waste of your time or energy, and are out of line with your new strategy? Perhaps it is certain administrative tasks, which can be assigned to an assistant whose hourly value will be lower than yours. That will free you up to meet clients. By identifying what you need to stop doing, you will also get clearer about the strategies you need drive forward.

STEP 6: QUESTION EACH NEW TASK OR ACTIVITY
Before starting any new task or activity, ask yourself this question – Is this moving my business forward or is it a distraction? Quite often we hear out about a new marketing strategy someone else has embarked on and get distracted from our own vision, strategies and plans.

STEP 7: CONDUCT A QUARTERLY REVIEW
Review the first six steps every quarter to ensure you are on track and to evaluate whether each strategy is working as planned. A quarterly review allows you to catch anything that is not working early on and make a decision one way or another.

Quality Control

1. Awareness about quality of the products

Do you know quality really is? Are you aware of the fact that quality carries a lot of importance? As a matter of fact, making employees as well as general public aware of the quality of things is also important, and quality control serves this purpose very well. If the employees in a firm know the importance of quality, they will try their level best to achieve the desired quality in the products.

2. Consumer satisfaction

It’s the consumers that benefit the most from the improved quality of the products. In other words, they get the best product from their desired company.

3. Reduction of production cost

If the production and operations go through inspection, the cost of the production comes down significantly. Aside from this, quality control also keeps tabs on wastage and the production of low quality products. So, the cost of production can be cut down significantly.

4. Resource utilization

Quality control makes sure that the available resources are utilized to their fullest. Again this ensures that the all types of inefficiencies and wastage is brought under control.

5. Reduced inspection cost

Another benefit of control over quality is that the cost of inspection can be reduced greatly.

Fatal Flaws in Business Plan

Unrealistic expectations

While it is sometimes true that using yourself as the ideal customer is a smart idea, since you understand the value and availability of that product or service, you might misinterpret the size of the market and the traction that can be achieved beyond a select group of true believers.

Insufficient information

Confirm the need for your products or services when you research and verify the number of potential customers who have the money and motive to buy from you.

Furthermore, make sure that you understand the buying process. Who green-lights the sale? What is the sweet spot price range? Lastly, where do potential customers obtain these products or services now?

Access to customers

Access to customers is everything and some industries or target customers seem impenetrable. You may identify the right customers, understand how your products or services fit their needs and know how to price and deliver. But if potential customers do not have the confidence to work with you because you lack an endorsement from a trusted source, you’ll starve.

Overestimating cash-flow

Usually, businesses won’t achieve desirable gross sales and or show a net profit in the first year of operations. Businesses that require high start-up costs especially will require long ramping-up periods. The business plan must acknowledge the potential for negative cash-flow and demonstrate how fixed and variable expenses will be met during that time. One must know how inventory will be financed, payroll will be met and office rent will be paid.

When writing your business plan, conservative financial projections are strongly advised. Customer acquisition may take longer than expected and the size of their purchases may initially be small. Moreover, it’s possible for a venture to be profitable on paper and still suffer from cash-flow problems, if customers do not pay on time.

Creating Logic Models

The basic idea of a logic model is to show the relationships between inputs and outcomes, plus intermediate activities, outputs and environment, of a program or intervention. At the lowest level, it shows your program’s theory of change: if we provide these resources, then we can conduct these activities. If our population participates in these activities, then these outputs will occur. If all these things happen, our theory says this outcome (or change) will happen in our community or for our participants. By visually drawing these relationships, we should recognize the assumptions we make about the connections between our activities and the expected results.

Since the main purpose of the logic model is to express a program’s theory of change, a common process is to start with the desired outcomes and work backwards. For example, if an organization wants to change Problem X in the community, the planning team might say: “What needs to happen to cause Problem X to change?” Continuing to ask what would change or impact each preceding step will help your team focus on results rather than activities.

One of the common mistakes when creating a logic model is confusing outputs with outcomes. Outputs are the programs or services an organization provides, while outcomes are the difference those programs and services made in our community. Here are some examples:

Output: food pantry with evening hours. Outcome: person working a low-wage job eats dinner today.

Output: free car seats for babies and installation assistance. Outcome: keeping a child safe in the car.

Output: the city public works department’s project design and number of potholes repaired. Outcome: better traffic flow, shorter travel times, and fewer accidents.

As you can see, the thing we really care about is the outcome. Since outcomes can be difficult to measure and we assume the link between our outputs and the outcome are obvious, it’s easy to focus on the activities and outputs instead of outcomes. Using a logic model process can help.

Since some funding agencies require logic models in a certain visual format, teams can get bogged down on making ideas fit into the logic model boxes instead of focusing on the modeling process itself. One of the best ways we’ve seen of helping a team through this process is for the team to use a white board and sticky notes to easily change headings and order of ideas. You can start by dividing the white board into the four columns-inputs, activities, outputs, and outcomes-then team members write ideas onto sticky notes which are placed into the columns. Team members, or a facilitator, can draw arrows, rearrange notes, and add new columns or boxes, even working over several days.

Once your team has reached consensus on its theory of change, you can put it into a visual format. You might even end up with multiple models. For example, an overview model then more detailed model(s) for specific programs. Below are just a few examples of what your model might look like. The one most non-profits are familiar with-the United Way’s template.

Sometimes, a flow chart logic model visually explains your theory of change more fully.

In the last few years, we have also seen network analysis-style diagrams being used to visually express logic models. The American Evaluation Association website is a good place to learn more about current discussions and best practices in logic model creation.

Large grantmakers such as the United Way, W.K. Kellogg Foundation, Robert Wood Johnson Foundation, Centers for Disease Control and Prevention, all encourage non-profit organizations to use logic models for more than grant applications. Some of the most common uses these funding agencies suggest are:

  • Program planning
  • Implementation development
  • Disseminating information to employees and partners
  • Identify your underlying beliefs and assumptions
  • Provide a framework for team conversation and understanding
  • Make sure evaluations focus on the most important parts of the program

Starting A Small Business

Planning

It is important to know what, when, why, where and how you are going to start your business. Unless you have clear focus, don’t even try, it will just be a waste of your time and energy.

In addition, you will want to do whatever courses are available that might help you achieve your goals. For instance, in my case, before starting my most recent venture, I completed a Certificate 3 in Business Studies, a Diploma in Digital Marketing, a Diploma in Sales, and, a Diploma in Project Management.

Practice

What I mean by practice is not to just dive straight in and learn on the job, no, what will really help you is to observe how SUCCESSFUL people have started the same kind of business that you are attempting to start. How can you do this? One effective way is by getting a job in the industry where you intend to work. Once you have done this, observe the process. If it truly is a successful business, they will have a highly organized and effective process.

Another possibility is actually starting the business. I know, I know, I said don’t do this, however, this suggestion has a little difference. Start the business with no expectations. Become the marketing director, accounts manager, sales director etc… do everything yourself. The problem with this approach is that it will take up huge amounts of time, amounts of time that will be saved, if you are able to work in a successful business that someone else has started. Yes, this suggestion is the harder of the two routes, however what it does do is go from theory to a complete practical knowledge of the industry, to become fully immersed in it.

Pursue

There is a reason why 4 out of 5 small business start ups fail, the rewards are hard to achieve and take inordinate amounts of time to achieve. How can you get over this obstacle?

The key is to Pursue. You need to be focused on your goal, and, never to look away or be distracted from this purpose. How long can you focus on your goal? Only you can answer that! However, realistically, it will take you some years to truly progress in your endeavor. If you are someone who gives up easily, you should really not try to start a business. Instead, look for a well paying job.

Cyber-Security Training

  • Acceptable Use Policy – Specifically indicate what is permitted versus what is prohibited to protect the corporate systems from unnecessary exposure to risk. Include resources such as internal and external e-mail use, social media, web browsing (including acceptable browsers and websites), computer systems, and downloads (whether from an online source or flash drive). This policy should be acknowledged by every employee with a signature to signify they understand the expectations set forth in the policy.
  • Confidential Data Policy – Identifies examples of data your business considers confidential and how the information should be handled. This information is often the type of files which should be regularly backed up and are the target for many cybercriminal activities.
  • E-mail Policy – E-mail can be a convenient method for conveying information however the written record of communication also is a source of liability should it enter the wrong hands. Having an e-mail policy creates a consistent guidelines for all sent and received e-mails and integrations which may be used to access the company network.
  • BYOD/Telecommuting Policy – The Bring Your Own Device (BYOD) policy covers mobile devices as well as network access used to connect to company data remotely. While virtualization can be a great idea for many businesses, it is crucial for staff to understand the risks smart phones and unsecured WiFi present.

Make a Good Flyer

Right away the person knows what we’re trying to sell here. Private Construction Management services. Right below it, you’ll see a picture of a house that would look like our target customer. Under that, there’s a brief description that reinforces credibility by mentioning the years of experience with all kinds of projects.

Anyone looking into renovating their homes will identify with this flyer right away. We ask them the question “Have a project in Mind?”, always qualifying them. The next line tells them what we want them to do, which is to call for a consultation.

Door hangers work really well compared to regular flyers. For one, you won’t have to worry about your message getting lost in the mail. The direct mail route is often pricey and your ad will compete with priority mail like bills. On the other hand, everyone has one front door and your ad will command their full attention.

Flyer Headline Examples
The headline is arguably the most important part of the flyer. Some people spend the most of their time trying to choose the right image that’s going to catch the attention of the customer and dazzle them with their creativity. It sounds nice. It just isn’t the case.

The reality is that we have 1 second to catch the attention of the person we’re trying to reach. We have to talk about what THEY want as opposed to what we’re offering. In the example above, Private Construction Management might not be an ideal headline. Instead, we could’ve said something along the lines of “Got a Construction Project in Mind?”.

It might or might not get a good reception. The key is to grab attention and eliminate anyone who wouldn’t buy from us while selecting those that would. We could write a whole book on choosing the right headline but adhering to some guidelines should put you on the right track. The following are some good headline examples for flyers or for any ads in general.

How-to Headline: People like to learn and the how-to headline is found everywhere. How to hire a good construction management company. How to make a million bucks in 20 min. You’ve seen it before. It works.

Question Headline: Just like the one suggested above. Asking a question engages the reader and causes them to answer it subliminally or consciously. Either way, we’ve got them communicating with us just through the headline.

Testimonial: Testimonials are great anywhere. They reinforce your brand and its authority. No one wants to buy from the new guy on the block. They want someone tried and tested.

Crazy Offer: A crazy offer can go a long way. A really long way. You should always have a crazy offer on your flyer regardless. If its good enough, it should be the biggest and first thing they see.

Choosing the Best Image for Flyers
As we said previously, finding the perfect image for your flyer isn’t as important as some people might think. A funny or creative image will get a positive response, but it won’t necessarily get us the exact response that’ll bring us sales.

Our picture should flow well without our headline and service. If we’re advertising for a taekwondo school, you might use a picture of children wearing their G.I uniforms.

A picture like that will help people identify quickly what your service is and if its for them. The image should be able to work independently from your headline, and vice versa.

The Elevator Pitch
Flyers have limited amounts of space for words and pictures. We want to get in as much as we NEED to, not as much as we CAN. This is where a lot of people go wrong. They design their flyer to include every single detailed explanation of what they do.

You should remember that the flyer shouldn’t serve as an alternative to your website. Your website is where your customers will go if they want a more in-depth understanding of your company and services/products.

The next section you should include in your flyer is a short description of what you do and why they should choose you. In short, it’s a small elevator pitch about your company.

“We manage construction projects for homeowners and have been doing it for over 20 years”. Simple, yet effective. At this point, we have a headline, a photo, and a small elevator pitch that’s going to help us land the knockout punch.

How to make a good flyer or offer
How to make a good flyer is based on the offer you give. An amazing offer has a time limit and simply cannot be passed by. These flyers receive upwards of 8-10% success rate. You really must be able to give tremendous value, or you won’t get too many replies.

A simple flyer with no offer can expect a 1% conversion rate. This means that we’ll turn 1% of the people that see our flyers into paying customers. You send out 10,000 and you get back 100 customers. Pretty simple stuff.

If you put a great offer, you can see 800-1000 customers out of 10,000 flyers. Suddenly, it makes a lot of sense to give away a great offer. Restaurants, for example, would benefit greatly by offering a free appetizer. They might lose out on some short-term profit but they’ll win in the long term.

Strategizing a Flyer Campaign
A good design is useless without a good strategy for distribution. We know flyer advertising is a numbers game and so we have to choose our target customers carefully. A restaurant might benefit better from delivering to homes instead of street promotion. That isn’t to say that a restaurant shouldn’t use street promotion as part of their campaign. However, if you don’t have enough foot traffic near your restaurant to justify it, you’re better off just targeting the homes in the neighborhood.

These customers are going to be your loyal regulars. The cost of acquiring one of them is inconsequential to the value that they’ll bring as a lifetime customer. For homes, door hangers work best. The reason is that other flyers have to be stuffed in other places near the home. They might be stuck on the mailbox or squeezed between the door frame. On the other hand, a door hanger is going on the doorknob. Basically, to get into their home they’re going to take it off the door and they’ll look at it for about a second.

Work the Plan

Stop Working Alone

For many years, I ran a business that went nowhere. I thought that I could do it all by myself. I was the CEO… the “Chief Everything Officer!” While my payroll stayed in check, I was not generating any momentum. The other big problem was that the business was not making any money. In fact, I was near closing the doors.

My luck changed when I realized that I needed to hire talented people. Of course, this decision required that I have sufficient operating income to make payroll. The first step was to hire part-time workers who could build the technology that I needed to service our customers. The customers were pleased with our work, so they awarded more contracts. In just a few months, we had enough money to hire full-time workers. The business is doing well today, and the credit goes to my capable team who has bought into the vision of our organization.

Act Instead of React

There are many leaders who prefer to take a reactive approach to running the business. Instead of adopting new technology, they take a wait-and-see attitude. The idea here is to let other companies test it out first. If it works, they will use it. While I understand that early adoption of anything carries risk, I also know that doing nothing is even riskier. To remain competitive in today’s dynamic market, it’s essential that we’re willing to take some chances. One way to be proactive is to speed up the planning phase. If an upside is possible, give it a try.