By transferring a traditional IRA into a self-directed IRA, the IRA owner can invest in private businesses and in real estate as well as traditional sources
Using a Self-Directed IRA to Fund Your Business Read More »
Many would-be entrepreneurs have money tied up in retirement plans like IRAs or 401ks that could be used to fund their businesses. Many simply believe they can’t access these funds until they reach the age of 59.5 without being subject to a premature distribution penalty. That being said, there are a few ways that you
Retirement Account Funds New Business Read More »
Wealth can be defined as a measure of one’s assets in the form of cash and equivalents as well as the market value of ones physical and intangible assets. These assets are accumulated during one’s lifetime with after-tax income. Therefore, the current use of graduated income tax rates, which applies to ones earned income, interest
Graduated Income Tax Accelerates Wealth Divide Read More »
Excessive Company Profit Is Not Inherently Unfair. The Profits from Success Business Ventures Offset the High Number of Business Failures. If High Profit Was Not Possible Nobody Would Invest. Moreover, When A Business Sees Success, It Is Often Fleeting and Requiring Investors to Demand a Return-To-Exit.
Why Entrepreneurs Need High Profits Read More »
It is important to periodically benchmark your business against others in your industry and/or in your local area. A free tool that is offered by the SBA called “Size Up” can help. Once you select your industry and location, you can enter data about your company and compare it with your peers to see how
Free SBA Tool to See How your Business Stacks Up Read More »
Income tax is paid on a company’s Net Profit which is the amount that is left over after you subtract your COGS, business operating expenses and allocations.
Business Income Tax – What You Need To Know Read More »
I think we would all agree that making a profit is the incentive to take risk through investments. Moreover, it takes investments to stimulate innovation. But innovation creates productivity gains, which in turn eat into profit. For example, a tractor that costs as much as the labor cost for 150 workers, but which can do
Who Really Benefits Most From Business Investments? Read More »
Sometimes we need to know when to quit, but sometimes we need to hang on to obtain our dreams. There are several times when a business’s prospects might look pretty grim. At these times, if the owner was offered a fraction of the money they had invested in the business, they would gladly take it
Knowing When to Hang On Read More »
Let’s face it. Many business ventures will ultimately fail. Unfortunately, there are no signposts along the way that says “Exit now or face financial ruin”. Entrepreneurs often hang on, ignoring the signals that their business is doomed based on pride, or sometimes they just can’t see the forest for the trees. I have often heard
Knowing When to Quit Read More »
The sustainability of your business revenue is important to understand if you want to keep your business solvent.
Not All Business Revenue Is The Same Read More »
In the news, you often see that the US accuses China of being a currency manipulator by artificially keeping their currency low. If their currency were allowed to rise, goods produced in China would get more expensive in the US and we would buy less of them. Higher prices would mean that Americans would have
How to Leverage China’s Currency Manipulation to Your Advantage Read More »
A trade deficient or a trade surplus unto themselves are not necessarily bad things. A trade deficit simply means that you buy more from your trading partner than he buys from you. The opposite is true with a trade surplus. You have a trade deficit with Wal-Mart, but a trade surplus with your employer. If
Understanding the Trade Deficit for American Business Read More »
Debt used to fund consumption, such as buying a new TV, is not a good use of debt. However, debt used to buy an income-producing asset such as a rental property, where the interest on the debt is less than the income derived from the principal invested, is considered a good use of debt. We
All Debt Is Not The Same Read More »
Labor is a major component cost of any product or service. The lower the labor costs, either the wider the margin or the cheaper the price of the product or service. Cheap labor can be had by either opening our borders to immigrants who are willing to work for less, or by outsourcing. I contend
Immigration vs. Offshoring? Read More »
The rule of 72 is a simple tool to calculate how long it takes to double your money. Your money will double in value if the product of multiplying the interest rate by time equals 72. The formula is Interest x Time = 72. So given a 10% annual investment rate it will take 7.2
The Rule of 72 for Doubling Your Investment Read More »
For individuals, your labor alone will never make you rich. Working harder and longer may create a small boost in income, but you will never become truly rich this way. To become truly rich requires that you control consumption and invest your excess capital to make your money work for you. The same is true
Business Investing 101 Read More »
State lottery games take in about twice as much money if they pay out to the winners in a single lump sum vs. a series of 29 annual payments. Furthermore, the overall odds of winning are not very good: 1 in 259 million for Mega Millions, to quote their website. However, when the jackpot gets
The Lure of Big Money Read More »
Let’s explore an extreme scenario. If you could get all the labor you need to run your business for free how much of it should you buy? I would say “use all the free labor you could get” since with no labor costs your company and more importantly its owners can earn a higher return
Is Offshoring Work to India and China Really a Bad Thing? Read More »
Investments made in your own business or in the stock market have investment risks that can be broken down into seven distinct types of risk.
The Seven Types of Macro-Environmental Risk Read More »
Taxing the rich reduces the relative incentives and encourages more coasters. In school, smarter people should not get a harder test simply by the virtue that they work harder than the slackers that do not study. We should reward people for risking their personal capital to start a business that creates employment. Rewarding lucky risk
Is Taxing The Rich Sound Economic Policy? Read More »
3 types of Investment risk. Greater risk = great rewards. Range = Inventory, least risk/reward, thru production equipment, to innovation most risk/reward.
Understanding the Investment Risk Continuum Read More »
If you were within the top one percent of academic achievers when you attended school, you were likely highly motivated to be that the top achiever. You would do almost anything to be in the coveted position of “Top Student”. Similarly, if you were on the cusp of flunking out, you likely were highly motivated
Extremes and The Effect on Motivation Read More »
As a hunter, I appreciate a buck with a large set of antlers. However, it is not the absolute size of his rack that makes him able to defend his does from his adversaries, but his relative size to the other bucks. As the saying goes, “You do not need to run faster than the
Absolute vs. Relative Values Read More »
Many people falsely believe that people are motivated by money. The truth is that people are motivated by their relative social or professional standing, aka “status”. To prove this point, consider the great lengths people are willing to go to become a famous movie star or a professional athlete. Money is simply a means to
People are Not Motivated by Money Read More »
Economies grow through incentives or the lack of disincentives for business investment. In pro-business countries like the US, the cost to lay off an employee can range from two weeks to six months of the person’s salary. In pro-labor countries, like many in the Europe Union, the cost to lay off an employee can exceed
Pro-Labor or Pro-Business? Read More »
When I hear politicians say that we need to bring more offshore manufacturing jobs back to the US, to me it is like saying that we need to move more employment back to the farms. Often the dialog related to manufacturing jobs includes references to more skilled jobs with higher wages. There is one very
Manufacturing is Not The Answer Read More »
People at the top of the wage scale are mostly employed in “thought” oriented jobs. The productivity of thought oriented jobs has been increasing at a greater pace than the productivity of workers at the bottom of the wage scale, who are mostly employed in “manual labor” oriented jobs. With increasing productivity comes larger margins,
Why the Rich Get Richer Read More »
Often a company will spend months or even years developing a new product. The labor and material used to develop a new product or offering is considered Research and Development (R&D). R&D is often considered an expense to the company. Expenses are deducted from Revenue in the year they are incurred and help to reduce the
Should you Amortize or Expense your R&D? Read More »
People don’t buy a radar detector until after they get a speeding ticket, and they don’t buy life insurance until after a bad doctor visit or the sudden death of a friend. Let’s face it: people fear change. They avoid action until an external event, like getting a speeding ticket or a bad report from
How To Make A Customer Viable So They Will Buy From You Read More »
Robert Kiyosaki, the author of Rich Dad Poor Dad, uses a model he calls the Cash Flow Quadrant to explain different ways income is generated. The last quadrant is Investor. As an investor, it is all about having your money work for you. As an investor, you can spread your investment money around to achieve
Investor – Cash Flow Quadrant Read More »
Robert Kiyosaki, the author of Rich Dad Poor Dad, uses a model he calls the Cash Flow Quadrant to explain different ways income is generated. Being a business owner is different from being self-employed in that as a business owner you hire employees to do the work. That is not to say that the business
Business Owner -Cash Flow Quadrant Read More »
Robert Kiyosaki, the author of Rich Dad Poor Dad, uses a model he calls the Cash Flow Quadrant to explain different ways income is generated. When you are self-employed, you own a job. The government also refers to this group as non-employer businesses, where the owner is the only employee. When you are self-employed you
Self-Employed -Cash Flow Quadrant Read More »
Robert Kiyosaki, the author of Rich Dad Poor Dad, uses a model he calls the Cash Flow Quadrant to explain different ways income is generated. When you are an employee you know you will get a paycheck as long as you continue to work for the business, even if the business is not profitable. Earning
Employee -Cash Flow Quadrant Read More »
Most business owners appeal directly to their customers, but sometimes an indirect approach may work better. Since I make my home in Colorado, where recreational marijuana is now legal and high capacity magazines are not illegal, I can see how politicians use these indirect means to drive their people to the polls. For example, in
Indirect Marketing Efforts Read More »
The owner, or the person that invests in a new business, gets paid out of the business’ profits. An employee gets a guaranteed wage paid by the owner/investor. Therefore, the employee cares about getting a paycheck, while the owner cares about the ongoing success of the business and profits. We own a few income properties
Owner vs. Employee Mentality Read More »
Regardless of whether you are selling a product or selling your business it is important to make sure you understand what the customer is buying. An early mentor of mine by the name of Ron Muns had a business that developed software to track a company’s assets. After sales began to ramp up to unexpected
Know What The Customer is Buying Read More »
Small businesses generally discount their negotiation position when dealing with a larger company. Basic economics would dictate that if you provide more value in an exchange you should be compensated. Consider the hotdog vendor in front of Home Depot. I postulate that Home Depot derives more value in that exchange than does the hotdog vendor.
Don’t Discount Your Position Read More »
Many people, and many businesses for that matter, really do not understand the difference between an asset and a liability. When asked what is your biggest asset most people will say their house. An asset is essentially something that helps put money in your pocket and a liability is something that takes the money out.
One Person’s Liability is Another Person’s Asset Read More »
More than seventy percent of Americans think we should spend more money on education to reduce class sizes. However, report after report indicates that unless a class size is very small, say, five students, there really is no difference in student achievement between a class of ten or a class of thirty. So why do
Do Your Own Analysis Read More »
Three-quarters of all firms in the United States are categorized as “non-employers”. Non-employers are business that provides work for only a single or part-time owner. While small businesses which employ many people are usually started in response to marketplace opportunities, non-employer business is often started as occupational decisions. They can be a way to deal
How to Leverage a Turning Tide Read More »
Being totally committed and all in on the success of a business can be the difference between having a successful business and quitting before the business has had a chance to takes off. A few years ago I planted a garden for the first time in several years. The first few weeks were brutal. I
Are You Committed? Read More »
Successful Entrepreneurs Choose The “Best Path” To Their Goal, Not The Easiest Or Shortest Path And Are Willing To Sacrifice Much To Obtain It.
Do You Have What It Takes To Be a Successful Entrepreneur? Read More »
A wise man once told me: “If you have a successful business, you will need more money.” He also said: “If you have an unsuccessful business, you will need more money.” The undisputed leading cause of business failure is that businesses just run out of money before they become profitable. Access to capital is, therefore, the
Do You Have Access To Capital? Read More »
It Is The Knowledge You Gain In All Facets Of Business That Will Ultimately Help You Achieve Business Success.
Take Baby Steps To Avoid Business Failure Read More »
Sales opportunities exist in a declining market. When consumers cut back they look for savings. Try to repackage or reprice offerings to take advantage
How to Make Money in a Declining Market Read More »
Each customer is different in terms of their needs and ability to pay. There is no rule that says that every customer needs to pay the same price for the same product or service. Working on a government contract has more overhead than working on a commercial account. As such, the billing rate we used
Pricing Strategies – Pricing by Customer Read More »
Sometimes you have a new product or service category with little or no competition and are free to charge whatever you want for early adopters. When I had an Invisible Fencing franchise the sum of direct costs for a self-install kit was about $100 in parts and another $100 to cover the parent company’s national
Pricing Strategies – Pricing by Available Options Read More »
Small business owners often live and die by controlling their cash flow. Having a customer pay for products and services as they use them may not provide sufficient cash flow to your business. Getting the customer to prepay for products or services can be the difference between surviving and dying. Smart tools and gift cards
Pricing Strategies – Pricing for Cash Flow Read More »
Limited availability or scarcity is a powerful tool to create the premium pricing. There is only one Super Bowl per year with only a fixed number of seats. Tickets prices rise to meet demand. Furthermore, there are only so many ads spots during the Super Bowl. Here again, prices rise to balance out demand. The
Pricing Strategies – Pricing by Limitation/Availability/Scarcity Read More »
Contrary to popular belief, people are really not motivated by money. They are in fact motivated by status. More money simply gives folks the ability to buy more status symbols, which they can use to flaunt their status. That being said, most people equate a higher price with greater status. We all know that a
Pricing Strategies – Pricing by Status Factor Read More »
Within a few hours after the September 11th attacks, you could not find patriotic items like flags anywhere. Even before the day was out there were secondary markets set up selling flags and other patriotic items for more than ten times their price before the attack. Many store owners were not collecting the price premium.
Pricing Strategies -Pricing by External Factors Read More »
If a customer has to go to some effort and expense to join a club they often develop a sense of loyalty. Sam’s Club and Costco restrict shoppers unless they have a membership, which they get customers to purchase up front. Good Sam’s (a camping membership) allows members to get discounts at participating campgrounds while
Pricing Strategies – Pricing For Loyalty (Membership) Read More »
Customer acquisition costs represent a significant indirect expense. Once you acquire a new customer you should implement strategies to keep them coming back again and again. When you fly you often have a choice of airlines that fly the same route. To encourage repeat business many carriers offer frequent flier miles that equate to perks,
Pricing Strategies – Pricing For Loyalty (Repeat Business) Read More »
If you are not pricing your service based on the time of day you are leaving money on the table. Many businesses have peak demands at various times of the day. Popular restaurants are generally full between 5:30pm and 7:00pm for the dinner rush. Many restaurants have early bird specials to drive customer traffic for
Pricing Strategies – Pricing by The Time Of Day Read More »
Anyone that has ever shopped for the best airline ticket prices and is flexible on their travel dates knows that flights are cheaper on Tuesday through Thursday and higher on Monday and Friday. Since most business people travel on Mondays and Fridays demand for these seats is high, driving up per seat prices. Since flights
Pricing Strategies – Pricing by The Day Of The Week Read More »
Businesses that have inventory often have a seasonality to their sales. Holding unsold inventory for a year to wait for the next peak season ties up valuable capital. Savvy business owners mark up prices when demand is high and steeply discount merchandise at the end of the season to convert surplus inventory into cash. For
Pricing Strategies-Pricing by Season Read More »
It is my experience that no two people pay the same price when they book an airline ticket. The list price for an airline seat varies depending on the number of seats already sold and the closeness of the purchase date to the departure date. If an airline fears that a flight will have too
Pricing Strategies – Pricing by Units Available Read More »
As a way to obtain new customers you can offer your product or services at a price that is less than your direct cost. Cell phone companies offer new phones for less than the actual cost of the phone in exchange for an extended contract. Razors are often sold at a loss based on the
Pricing Strategies – Loss Leader Read More »
Once you know the minimum price you can accept to meet or exceed your breakeven, you are ready to price your products or services to achieve strategic business objectives. Pricing your product or service properly is one of the most overlooked marketing strategies you can employ to achieve the business results you desire. Over the
Pricing Strategies – Volume Discount Read More »
New disruptive inventions don’t only affect manufacturers like our button manufacturer in yesterday’s post. Sometimes technology affects service businesses as well. Let’s consider the safety razor and the impact it had on the barber industry. While Jean-Jacques Perret invented the safety razor in France during the latter part of the 18th century, the invention reached
How Disruptive Technology Can Affect Your Business Read More »
Several years ago I attended a presentation by Daniel Burris, the author of the book “Techno-Trends.” The opening line of a presentation that still resonates in my head to this day is “The future is already invented”. After a long pause to allow the line to sink in, Mr. Burris began talking about technology life
Is Your Business On A Path To Extinction? Read More »
Many new business owners make several formation errors during and after the registration process that can come back and bite them later. 1, One common formation error is that the registering agent fails to include an entity identifier in the name, such as LLC or Inc. 2, Once registered, many LLCs fail to produce an operating
Seven Common Business Formation Errors Read More »
A business associate of mine once used to charge $5,000 per day for his consulting services. I asked him once how he came to that rate and he said he heard someone was charging $4,000 per day and he wanted to be sure he was the most expensive option available. At the time he billed
Harness the Power of Expectations and Price Read More »
In behavioral economics, we never want to lose our options. We often keep our doors open even if we never have any intention to go back through them. It is our often irrational fear that once we close the door we’ll have the need to get back that prevents us from moving forward in a constructive way.
Harness the Power of Keeping Options Open and Fear of Loss Read More »
As a rule, faced with two similar options and one dissimilar option, behavioral economics says that most people will discard the dissimilar option and choose between the similar options based on our hardwired need to compare two like things. Furthermore, behavioral economics shows us that by contemplating a number, which in fact can be quite
Harness Our Need to Compare and Decoy Prices Read More »
Remember when Blu-ray and HD DVD were competing for head to head and it became clear that Blu-ray was going to emerge as the standard? Savvy retailers, knowing that buyers respond in irrational ways to the word “Free”, began to offer HD DVD players that sold in the neighborhood of $400 a piece with “Five
Harness the Power of Free Read More »
Economics assumes that an individual provided with all the facts will respond rationally and make good buying decisions. Behavioral Economics recognizes that our brains are hardwired in certain ways that make us respond, often quite predictably and irrationally, in ways contrary to logical economic rules. With a better understanding of just a few hardwired behavioral
Use Behavioral Economics for Profit Read More »
New government policies and news events affect group-thinking, which also creates sales opportunities. For example, recent talk of potential gun legislation caused a run on guns and ammo. Movement, whether economic or emotional, creates opportunities for small businesses who can spot them and react more quickly than larger companies. Savvy small business owners look at
Do You Leverage Group Think? Read More »
I was walking through Sam’s Club the other day with a shopping list. Nowhere on my list was cheese or ham patties. But as I walked up and down the aisles grazing on samples, I ended up with cheese and ham patties my cart. There is no way I would have looked at either of
The Power of Free Samples Read More »
Coming up with a great idea is the easy part. It is the execution of bringing your idea to market that is the hard part. I have run into many clients who have a great idea, around which they want to build a business. When I mention that they can license the product to a
Being an Inventor Does Not Make You an Entrepreneur Read More »
Americans are fixated on how much they make. People use their salary as a report card of sorts to compare their success to others. The problem is that income is often a poor measurement of success since it is decoupled from a person’s standard of living. It is not how much money you make, but
Salary vs. Standard of Living Read More »
I often encounter businesses that at their core are pure services businesses, but which also sell products as part of their offerings. For example, consider a small part-time mobile oil change business. They are primarily in the service business of changing a person’s oil. However, their service includes the sale of motor oil. I’m often
Sales Tax Workarounds for Service Oriented Businesses Read More »
Everyone deserves a living wage, but the wages earned by an employee should be directly proportional to the value they provide to their employer. A pay raise should not be based on how long a person has worked for an employer or some government mandate. When my kids have come to me and asked “How
Do Your Employees Know Their Contribution? Read More »
On a recent trip to visit our son, we went to dinner at a nice restaurant. When the meal was served my son’s Chicken Alfredo contained a rather large bone, on which he nearly choked. When the owner was summoned to the table he began to explain that it was not possible for the bone
Social Media Can Make Or Break You Read More »
When I worked in a corporate job I worked very hard and often had to put in extra hours to complete projects. However, when I left the office, I pretty much-left work behind. I had the time to coach soccer, go on vacations, and, overall, remain engaged in all aspects of the family. Family time
Business Ownership Changes the Entire Family Read More »
Task discounting is the phenomenon whereby people assign more value to near-term or simple tasks than they do to future or complex tasks, even if these tasks hold more value. Have you ever really stepped outside your business and challenged yourself to answer a simple question: Why do I do the tasks I do? If
Are You Guilty of “Task Discounting”? Read More »
Each generation has their own unique attitudes and behaviors that set them apart. Gen YBorn 1977-1994 (17 Years)Population size 71 million (4.2 million births per year) Gen Y’s are the children of the Baby Boomers. They lived their formative years with technology and grew up watching cable TV and playing on the Internet. As a
Gen Y Attitude and Behaviors Read More »
Each generation has their own unique attitudes and behaviors that set them apart. Gen XBorn 1966-1976 (10 Years)Population 41 million (4.1 million births per year). Members of Gen X were left alone to fend for themselves. Most were dropped off at daycare as very young children. When they reached school age they returned home to
Gen X Attitudes and Behaviors Read More »
Each generation has their own unique attitudes and behaviors that set them apart. Late Boomers –Born 1956-1965 (9 Years)Population size – 49 million (5.4 million births per year). Late Boomers lived their formative years with Watergate, which shaped their general mistrust of government. The oil embargo and other economic struggles squelched their optimism about the
Late Boomers Attitudes and Behaviors Read More »
Each generation has their own unique attitudes and behaviors that set them apart. Early BoomersBorn 1946-1954 (8 Years)Population size – 33 million (4.1 million births per year). Early Boomers lived their formative years with Vietnam and witnessed the assassinations of John F. Kennedy and Martin Luther King. They lived through the Civil Rights movement and
Early Boomers Attitudes and Behaviors Read More »
For our Everest expedition, the previous few years had offered a better than average weather pattern during the month of May, which is when most expeditions plan to reach the summit. The guides became complacent and assumed that May of 1996 would hold the same good weather pattern. They should have made their decisions based
The “Recency Bias” Read More »
The guides of the Everest expeditions often boasted that they could guide anyone with average fitness to the top of Mt. Everest. They were so confident that they ignored the 2:00 return to base rule and paid the ultimate price. In a poll taken of teen drivers, 93% indicated that they were better than average
The “Overconfidence Bias” Read More »
Members of the ill-fated Everest expedition invested upwards of $65k each. They spent weeks hiking to reach the final base camp before their ultimate eighteen-hour push to the summit. There is an unwritten rule that if you have not made the summit by two o’clock in the afternoon of the final push, you should turn
The “Sunk Cost Bias” Read More »
With the federal deficit out of control, at some point, the government will need to raise tax revenues through tax increases or tariffs if for no other purpose but to pay off the interest of the debt. Levying more taxes on individuals, or more accurately voters directly is political suicide. Perhaps politicians will get more
Get Ahead of Tax Legislation Read More »
Many years ago typing was a skill that only a fraction of the workforce possessed. In fact, I had one job where I was concerned about my ability to be successful. The job description clearly required typing skills, and although I took typing in school I was not very proficient. Typing is no longer considered
Social Media: The New Selectric Typewriter Read More »
An up-and-coming New York-based production company was preparing to release a new movie short. They employed a clown to appear at random locations in the NY area. People noticed. Soon the clown was being spotted all over town. Without any explanation for the clown, people took to the internet to unravel the mystery. Soon, the
Time To Clown Around And Get Noticed Read More »
Pepsi recently employed an innovative idea to get noticed in a sea of street-level billboards. The company shot a video from the point of view of a person on the street and displayed it on an outdoor LCD flat screen bus shelter. Then they added a bizarre event, like a giant tentacle popping up a
If the customer can easily idenify the price of your product or service you will more than likely not make the final sale.
No Price, No Sales. Read More »
Entrepreneurs often invest in products or new service offerings that are doomed to fail from the outset because they fail to notice what is apparent to a casual observer. When we expect a particular outcome or we are intently focused on a specific measurement we often can’t see the obvious. The human mind uses filters
Who is Your Jester? Read More »
Word of mouth is a great way to build brand awareness, but how do you get people to talk about you or your company? Be outrageous. Ever see Lady Gaga on TV? She is never dressed as a normal person. Perhaps she is draped in meat or sporting some crazy headdress. What comes to mind
Outrageous Marketing to Get Noticed Read More »
Many would-be entrepreneurs think in terms of full-time employment, either from a job or through a business they own. Eighty percent of businesses are considered non-employer businesses according to the Small Business Administration (SBA). Many start out as part-time efforts. Some progress into full-time businesses with employees, but many are simply businesses designed to supplement
Learn To Supplement Your Income Before Taking The Plunge Read More »
For the entrepreneur, the division between personal and business life is virtually nonexistent. Running a small business requires a significant commitment of time and energy; time and energy that might otherwise be devoted to one’s family and other interests, but is instead spent on the business. If an entrepreneur has family members who underestimate the
Something Never Taught in an MBA Program Read More »
The events playing out in the news over the past month, with Secretary of State John Kerry trying to broker peace talks between Israel and Palestine, got me thinking about how much national economic conditions affect a country’s bargaining position. More specifically, I was thinking about the role a nation’s attitude toward business creation
The Currency of National Wealth Read More »
America was built on a culture of hard work. American workers work harder than the Germans, the French, and even the Japanese. Even during their leisure time many Americans build furniture and grow gardens just for fun. They coach soccer or baseball teams and volunteer to help non-profit organizations. Overall, most Americans are just not
What Do You See In The Mirror? Read More »
Once a month I sit on a military transition panel where the audience includes perhaps a dozen or so folks considering following an entrepreneurial path after separating from the armed forces. I often ask them why are they considering going into business rather than “working for the man,” as they say. I get the usual
Diversify: Good Advice For Stocks, Good Advice For Business Read More »
Why do we take notes? One reason is it forces us to take new information and consider it in context so that we can produce relevant knowledge and wisdom. The physical act of writing down our thoughts strengthens the memory and provides greater recall later. When you read your notes and edit them, you are
How To Internalize Your Business Plan Read More »
I’m often asked “Do I really need a business plan even if I don’t need a bank loan?” My response is sometimes“Yes” and some other times “No” One thing is for certain, it is not the destination that is important when it comes to writing a business plan, but the journey you take in writing
Do You Need a Business Plan? Read More »
Ask the average person what made the car affordable and you would hear it was the way Henry Ford used the concept of the division of labor as outlined by Adam Smith in the Wealth of Nations. Most people naturally assume that if you have a job composed of many tasks it is better to
Efficiency Myth BUSTED Read More »
As an occasional golfer, I don’t have any expectation that I will hit a hole-in-one from the tee box. I expect to take several shots, each one taking into account many aspects including distance, slope, angles and more, with each stroke getting closer to the hole. I have learned that if my only goal is
Start-Ups Look For a Hole-In-One Read More »
Operating Leverage is just one part of your Economic Model. Simply put, operating leverage is the relationship between fixed costs and variable costs.
Understanding Operating Leverage Read More »
