Posts Tagged ‘business education’

Getting Rid Of Money Leeches

 

If you have not yet read Part 1 of this article, please click here  READ PART 1 NOW

Okay, let’s continue where we left off and go a little deeper on being more financially prepared so that wealth starts flowing towards you instead of away from you.

Our lesson today is about being aware and effectively stopping your Money Leeches!

Money Leeches as I’d like to call them are the People, or “Cosmically uncanny” situations that just happen to show up at the very exact moment you come into some money. Sound familiar? Think back…Do you remember the time that you got that P5,000 bonus from your job, or a sideline or unexpected business from a client?

Who called you or showed up at your doorstep needing urgent help or “who just happened to drop by” that very same week needing exactly P5,000?

Did your car, refrigerator, cell phone, or something else break down needing some urgent repairs totaling more or less P5,000?

Did you just happen to go to the mall that weekend, which incidentally was having a 50% off Sale on all items and bought something that you would never ever use for more or less P5,000?

I’m pretty sure you are smiling right now because you know exactly what I’m talking about don’t you? Yup, whoever he or she is, whatever “situation” arose the last time you came into money, you have just identified your money leeches.

I know because I used to have lots of them. And I thought that that was the story of my life. And because I thought that way, the next time I got into some money, the Money leeches would come! It became a reality for me, so much so that all the money I made almost always went to some “Urgent” or “Useless” expense.

The problem is that most of these money leeches are usually family members or close friends. Or when situations arise, like your appliance breaking down or a cellphone being stolen or any similar incident is that you feel that it was by divine providence and that it was beyond your control and you just have to give in.

Let me say right now, they can be stopped and it can be controlled. But it will take a major attitude and cultural change in you. It will require a lot of effort and a very “thick” face but if you apply what I will share, you will immediately achieve a Major breakthrough in our “wealth transfer project.”

First, stop thinking that having money leeches is normal. It is not. You have to change your attitude right now, here’s your first assignment that will help you do just that.

1.)    On a blank piece of paper I want you to hand write the following: >>Make sure that it is “Hand written” not type written:

“Having Money Leeches will kill me financially, I am now aware, I will defend myself and get rid of them now! ___________. (print your first name on the blank space then sign your name on top of it)

2.)    Scan that piece of paper or take a digital picture of it.

3.)    Email it to me as soon as you can. Please note that if you email it to me, you are allowing me to post it on my blog should I choose to do so.

4.)    Prominently place that piece of paper in your wallet so that you can see it every time you open it.

The exercise above is meant to “kick start” your brain to acting and thinking about defending yourself against these money leeches. And yes, it is true, If you do not fix it right now, you will die financially.

Next, identify the people who are NOT immediate family members who constantly ask for money from you. Note, these are the people who are NOT your wife, your children, your brother, your sister oryour 2 parents.

Here’s what you tell the people who are NOT immediate family the next time they ask for money:

Situation: My _______ just got hospitalized, Can I borrow P5,000? (Or whatever amount)

Response: “I’m so sorry to hear that, I hope _______ is alright. I wish I could give you P5,000 but I can only afford to give P50 right now hope you understand.

Regardless of the situation or any amount that a Non-immediate family wants to “borrow” from you, only offer P50! There will be 3 possible reactions: reaction 1: insulted, and will never want to ask money from you again. Reaction 2: they are grateful and they take it. Reaction 3: They negotiate. Regardless of their reaction only be willing to give P50 and not a centavo more.

It might seem heartless to you but it has to be done if you really want to get rid of the money leeches. Remember, this is to be used ONLY for non-immediate family. They are not your burden, they are not your problem. The priority you should always be your Immediate family. What if, God forbid, something should happen to any one of your children? Your wife?  Your Husband? Your sister? Your brother? Your Parents? And you don’t have money because you gave your money to someone else. Now that would be a real tragedy. If you can’t do this for yourself, then do this for your immediate family, reserve your generosity for them. But be smart about how you go about it. In the next article, I will talk about how to financially protect your immediate family and yourself from Money Leeches within your immediate family.

Lastly here is your 2nd assignment, give me feedback. Post a comment about this article or part 1: What I am interested in is not praises (although that would be nice too), instead, complain to me about the problems you have in completing the assignments. Yes, you read it right, post a comment below on why you don’t think this or any of the assignments I have given you will ever work for you. Believe me, I will read every single one — even yours and I promise that I will not ban you or even get mad at you when you do. It is all part of the process.

Good luck and see you in the next article!

Author Box:

Mark So is a fervent businessman, Investor and educator.  He is the Chairman and CEO of Businessmaker Academy—a business, finance and corporate training center.  He is the founder and Chief Forex Trainer of Forex Club Asia, A Trading club of Forex Traders across Asia. He is also the Founder and Chief Trainer of the Philippine Franchise Institute which specializes in training and growing existing Franchise businesses.  A sought after speaker for business, investing, You may email your comments and questions to:   mhso@businessmaker-academy.com or call the office at 6874445 / 6873416 / 6874645 for a schedule of his seminars

Advertisements

In my earlier years, I never really thought of myself as a manager of people, truth be told I never really understood how important managing people really was until I became an Entrepreneur. And even when I embraced entrepreneurship full time, I made many, many mistakes in this field which taught me huge lessons not just in business but in life over all.

You see, back in the day as an inexperienced Entrepreneur, I thought that people management was simple: “if you want your business to succeed, you must hire people who have the background to run your business for you.” Little did I know that those thoughts were the most devastating thoughts ever to cross my mind. Why? Because no matter how good the people you hire, or how much money you offer them, the truth is: No one can ever run your business better than you.

I learned the hard way that being a business owner did not mean that you hired people to think for you and run the day to day operations for you, it meant that you needed to first know what you really want your business to become, and to do that, you need to be Employee number 1. Because and remember Murphy’s Law: If something can go wrong, it usually will. And if you are not there to steer the business clear of problems, you should never expect Employee number 2, 3 or 4 to do it better than you.

The greatest mistake I made with my first business was to hire a General Manager and her managers (Employee number 2 and 3 and 4) to run the business. I was still working for a big multinational company back then and had the excuse of “I’m too busy to handle my own business”. So I relied on the salaries that I was paying my people to make them grow my business, solve problems and make me rich!

Of course, reality is never that easy. Because people that you pay but do not manage usually result in the people taking their salaries and end up making excuses for why things didn’t go as planned.

To read more about my problems on my first business and how I solved it, Click here to read: “Business and the start of a beautiful relationship parts 1 to 3”.

In hindsight, I realized that my biggest mistake was that I “abdicated” instead of “delegated”. Abdication is what happens when you are not there to guide people and as a result fail to fulfill your responsibility as the founder of the business. Delegation is when you slowly give some responsibility to the people you hire so that they can eventually do the work for you over time. Take note, the operative words here are “slowly” and “over time”.

So in my next business, I tried “delegating”. I was more hands on in the business. But there were still big glaring problems. The biggest problem of all was my attitude. I was either too nice, or too strict, or too tyrannical or all of the above. So as you can imagine, some of my people were complaining behind my back. I wasn’t consistent in my approach and my moods got the best of me, because and this is not an excuse: as an entrepreneur you are faced with an extreme amount of stress on a daily basis.

So how did I learn to manage my people better? Well, three things.

First I had to learn to be better than the normal guy. As an Entrepreneur, you will really face a lot of hard and stressful times but even during those times, I had to learn how to become more “presidential” which meant I needed to stop being dramatic, learn to act from my head and not from my heart. It wasn’t easy, but I (with my wife) realized that the solution to achieving this was to slowly and painstakingly build a system to address the needs of our people. This is where my wife, Jhoanna really excelled, she built our Human Resource System almost single handedly which did not just address concerns of our people but also replaced impulsiveness and drama with solid procedures for addressing our people’s problems.

Second, and simultaneously, I had to weed out the bad apples in the bunch. You see I believe that the business owner has to do his / her part in becoming better at managing people but the people themselves must be willing to be honed to become even better for the sake of the Business. Unfortunately there are those who just do not have the right attitude and the only answer is to remove them from the equation. Once I cleared the ranks, replacing them with “better” people was the next task, and to do this, we created a criteria for hiring people, and that criteria was the most important of all, it was to hire those that believed in what the business wanted to achieve. This unified belief is what bonded our people together to act as one with the owners themselves. Without this bond you can never really build a team with a common purpose.

Third, and finally, I realized that the first two things will not matter at all if I did not show them exactly what it was that the business wanted to achieve. So the last and final ingredient of how I learned how to manage people is to lead by example. I am Employee number 1 and as such I must show the rest of the team how to do it the first time, the second time, the third time, until they can do it on their own. Today, I can honestly say that I have come a long way when it comes to managing people. Today I can honestly say I together with my wife are better managers of people.

Author box:

Mark So is a fervent businessman, forex trader, marketer, sales consultant, and educator.  He is the Chairman and CEO of Businessmaker Academy—a business, finance and corporate training center.  He is also the Chief Forex Trainer of Forex Club Manila. Attend Businessmaker Academy’s Business Operations and People Management this August 7, 2010 at Businessmaker Academy. If you are interested in attending this seminar, email Mark directly at markso@zerocapitalclub.com or call 6874445 / 6873416 / 6874645 and look for Kenneth Dalen

My wife and I used to live in a condo unit when we were newly married. At first, the condo was pretty spacious and needed some furniture so we got a little bit of this, and a little bit of that, then gifts would come from friends and family on special occasions and over time the stuff we had would pile up. I remember one time feeling claustrophobic already, I literally couldn’t breathe anymore and no matter how many times we would donate, or purge we would feel that the condo was magically getting smaller and smaller.

Now this is not because we keep buying stuff, we actually live (then and now) a very simple life. We do not buy anything we do not need and we donate and “purge” regularly, the fact is everyone will eventually have more “stuff” over time. This is what I call “the power of accumulation” and what I wanted to share with you today is how I use this power in businesses. And how you too can build something small first then slowly, over time, accumulate not just “stuff” but wealth.

Before I start, I’m sure you are thinking right now: “I can’t start a business yet, I don’t know anything about businesses”. So I want to let you know one powerful truth:

“Everyone starts at ZERO.”

Every successful business owner starts by not knowing much about business. Sure, some of them might have studied about starting a business whether in college, grad school, books and even through seminars. And I wholeheartedly believe in education, but let me tell you another powerful truth:

“Experience is the best teacher of all”.

Let me explain further. If I were to tell a 5 year old child to stay away from the stove because he/she might get burned, then show the child pictures of what a burn looks like and tell her that it is very, very painful then the child has been educated on how not to get burned right?

Now, the child will listen to you…for a while that is.  But when you are not looking and the stove is on, chances are, the child will still go near the stove and accidentally burn her hand anyway. Because the child needs to fulfill her curiosity on what the word “burn” is and understand what you meant about how painful it can really be. Now, the moment she gets hurt and realizes that she never wants to get burned again, she has gained experience.

Likewise, the best way to learn about business is to experience doing business and find out first hand what it is like to go through the pains and gains of being in business.

So are you ready to gain experience and accumulate businesses? Alright then here’s the simple formula / plan that you must start doing now to start accumulating wealth through businesses: “S+R+A” = Power of Accumulation

S = “Start small”

There are many ways to start a business, but my method is the one that you can do right now. First off, know that no one can ever be sure if a business will succeed or not. So, common sense would dictate that you start small. If you have a small business already, good! If you don’t, then start one now by starting a sideline or racket. If you need some suggestions on creating a business without adding any costs, go to my blog at http://www.markso.wordpress.com and search this phrase: “Money Management Simplified Part 3”. In that article are two incredibly simple ways to start a small sideline business with Zero Costs. I would also suggest that you read the whole series (parts 1 to 3) to learn how to manage your money for businesses.

As my readers already know, when I start businesses I start them with Zero costs, to me that is the ultimate way of starting small.

R = “Remain Small”

When I start a small business, and it becomes a success, I do not hire a lot of people, I keep it small and manageable. But I do something “special” inside the business to make it even more profitable. I call it “Multiple Streaming”. It’s a technique that I teach in my 7 point formula seminar. What Multiple Streaming does is that it takes an ordinary sideline or racket and it “doubles” the income streams of that business every year. Now, if I increase my income stream per business and keep my staff small and manageable, the business becomes a lot more profitable even without becoming too big. Why do I like keeping my businesses small? Well, lots of reasons but the most important reason is that small businesses can move a lot faster than bigger businesses and the relationship between the customers, the staff and me are more direct and personal, no red tape.

A = “Accumulate”

Now, once my small business’ income stream stabilizes. I do it all over again with the same process, I start another small business, then I “Multiple Stream it” until profitable, then add another when ready. I simply keep adding small, profitable businesses over time that accumulate into true wealth. Imagine money coming in from multiple sources — when you wake up, when you are asleep, when you are eating, when you are on vacation. It’s an incredible feeling I assure you.

“The Power of Accumulation”

So going back to the introduction of this article when my wife and I started out in a small condominium, the fact is, you will always accumulate more “stuff” no matter what. So I learned to apply this incredible power into businesses and instead of the awful feeling of Claustrophobia, I achieve something else- “freedom from financial worry”. So now, you too can accumulate more wealth by just following the simple plan that I just outlined for you and of course gaining as much experience in the process. All the best! Good luck and God bless!

Author box:

Mark So is a fervent businessman, forex trader, marketer, sales consultant, and educator.  He is the Chairman and CEO of Businessmaker Academy—a business, finance and corporate training center.  He is also the Chief Forex Trainer of Forex Club Manila. Mr. So is slated to conduct his “7 Point Formula Seminar” this July 31, 2010. If you are interested in attending this seminar, email Mark directly at markso@zerocapitalclub.com. To read more of Mark’s interesting and life enriching articles you can go to his blog at http://www.markso.wordpress.com

Happy New Year! It is now 2010 and I hope you are looking forward to a great and wonderful year ahead. This is the time of the year when I am often asked, what’s a good business or investment to get into?

So for my very first column of the year, I wanted to share something basic but very often overlooked about succeeding in Business or Investing in general and that is, before you invest in anything, you must  invest in yourself first.

Sounds simple enough but many times, we place all our efforts and even our hard earned money in opportunities that come our way without knowing what it is we are getting into. Most of the time, we hear and see a new business or investment fad and immediately start thinking of putting money into it. And because we so badly want to progress in this world, we let impulse and greed take control over reason, raise our hopes and inevitably shake our heads later when the opportunity turns out to be another dead end, or worse, another scam. Is this the cycle that you continuously experience every year? So if you are asking what’s a good business or what’s a good investment to get into this 2010? My answer is start investing first in the one thing that you have probably overlooked for so many years…Yourself.

For those who want to start businesses, educate yourself first. The following areas are where you should start:

  • Sales and Marketing Skills

This is perhaps the most important skill to learn first. I often say that Sales is the purest form of business. Without it, you can never be in business. If you are a shy person and don’t think that selling is something you can do, think again. In my Sales and Marketing seminars you’d be happily surprised to know that the shy persons will always outsell the outspoken ones.

  • Capital Raising Skills

A lot of people think that they need capital to start a business, although that may be true for some businesses, would you know how to source capital without getting into debt?  Increasing your knowledge in this area will help you in your business ventures.  This is an important skill that every aspiring entrepreneur needs to learn.

  • Cash Flow Management Skills

A business is like a car.  Sales is money coming in or the gas that fuels the business while Business Expenses is what will deplete the money coming in. Cash Flow management is simply about knowing how to keep your business running smoothly even when the money coming in is not enough to sustain the business operations for a few months as sometimes experienced by many entrepreneurs.  If there is one skill that is critical to the survival of your business, this is it.  That’s why I make it appoint to equip my students with the proper tools and systems for cashflow management—it can make or break your business.

  • Human Resource Management Skills

As your business grows, you will need good people to help you run it. Forming your dream team is a must and improving your people handling skills will help you build this team.  For this, you will need to know basic knowledge in Human Resource Management.  From there, you will be able to develop systems to guide your employees, as well as programs to develop and motivate your team.  Applying what our HR training consultants have taught in our seminars, many companies including my own have greatly benefited from the best practices shared.  I’ve learned over the years that it pays to invest in your people too.

For those who want to do better in financial investments, the following areas are where you should look at:

  • Money Management Skills

The most important part of investing is not about how good you pick what to invest in. It’s about what you do with your money when things go bad. In other words, what is your exit strategy and what’s your plan B? As an investor, this is the most crucial thing for you to learn first.

  • Fundamental Analysis Skills

When you decide on what to invest in, you have to understand the underlying reasons for choosing that investment in the first place. For example I chose to invest in real estate because fundamentally, this particular area is a prime area and also because 5 to 10 years from now, this area will continue to increase in value due to continues development improvements by the private and government sectors.

  • Technical Analysis Skills

An important part of investing is also knowing the past price movements of whatever it is you are buying (or selling) Investors use these past price movements to determine trends in the markets which when properly combined with fundamental analysis can greatly improve your investments and the timing of when you get in and out of them.

  • Discipline in following a plan

Lastly, one of the hardest things to master about being an investor is to develop the discipline to only invest when the probabilities of investing is optimal. Too many times newbie investors will have no discipline and will invest based on gut feel and intuition resulting in catastrophe more often than not.

So you see, when you start asking yourself what’s a good business or investment to get into in 2010, do not just look at what people tell you to get into. Instead invest first in educating yourself and developing your skills in these areas. Then determine for yourself if these business or financial investments are indeed worth it.

Invest in yourself in 2010 because you are worth it.

Author box:

Mark So is a fervent businessman, forex trader and educator.  He is the Chairman and CEO of Businessmaker Academy—a business, finance and corporate training center.  He is also the Chief Forex Trainer of Forex Club Manila.  A sought after speaker for business and forex, he is scheduled to conduct his signature seminar series on Business Start Up and Entrepreneurship this January 16 to February 13, 2009.  To know more about these seminars, you may visit www.businessmaker-academy.com or call (632)6874645.  You may email your comments and questions to:   markso@zerocapitalclub.com