Thursday, August 31, 2006

The Pivotal Finances


The average person would not be able to live for more than three months if they were unable to draw an income. This means that they are dependent upon insurance, government programs, friends and family. 
The primary goal of savings is to provide a much higher level of personal independence and security.

You can make two million dollars a year but if you spend 2.5 million dollars, it doesn't matter how much money you made, does it? You will be saddled with debt.

One of the key components to long-term wealth building is the discipline of saving money on a regular basis.  One simple difference between the philosophy of the rich and the poor is: 
the rich save/invest their money and spend what is left. 
the poor spend their money and save/invest what is left.

Investing involves risk - calculated risk - and the possibility for much more reward. Investing is the 
maximizing of capital gain and the harnessing of compound interest. Saving is not the pursuit of aggressive growth of our resources. Saving and investing are done for different reasons and with different desired goals and outcomes.
 
Saving is an act of discipline. No matter how you slice it, saving money on a regular basis is a 
discipline. It is not "dependent" on income. Pick up any number of magazines and you can read about an athlete who made twenty million dollars over seven years and is now bankrupt. It isn't a matter of money. It is a matter discipline. On a regular basis, put a little away until it builds up. That is the savings game.

Saving builds self-reliance. Our ultimate goal financially should be to become independent, without 
relying on anyone else. We should be able to pay our bills and long-term, live off of the interest of 
the savings and investments we have. A solid base on which to build the rest of our financial independence.

So, through our diligent saving, we rely on what we have accrued. Then we become more able to help those in need. We are now the lender and not the borrower. A good savings goal is to have at least six months of living expenses set aside. For example, if your expenses are $2,000 a month, then you should set the amount of $12,000 as a savings goal. This gives you the ability to be self-reliant for those times when you may need it, and the peace of mind knowing you would be able to handle challenging circumstances if necessary.
 
Saving money in a standard savings account or money market account will pay a nominal sum, say 2-4 percent, depending upon interest rates. There is something called the rule of 72, which says that whatever interest rate you average, divided into 72, will determine how many years it takes to double your money. So, even at 3 percent, your money will double in 24 years. 

That isn't extraordinary by any means, but it does happen. Your money is working for you. You get more money simply by letting it sit there and letting compound interest do its work. With saving, this is a 
seemingly small beginning, but it is the strong foundation of security that allows you to build the future of your dreams and goals and provides the anchor to help you weather financial storms that can come your way. 

The exciting news is that you now have a solid base to start your investment drive. 

I wish You Success.

Wednesday, August 23, 2006

Making That Change

If you want to get more out of a team or group, don’t just push harder – think what’s holding them back.

Different forces at play, it was the renowned German-born psychologist, Kurt Lewin, who most clearly identified that the regular pattern which emerges in these activities, or ‘processes’, is determined by the interplay of a wide variety of different ‘forces. 

The forces themselves can be categorized into two opposing types: driving and restraining forces. 
Driving forces may be ambition, goals, needs or fears. They may act as ‘forces toward’ or 
‘forces away from’ something. A restraining force, on the other hand, is different in nature: 
it merely opposes the driving forces. 

In the context of organizational change and development, restraining forces refer to factors that resist or hinder the implementation of change initiatives. These forces act as obstacles, barriers, or resistance 
mechanisms that work against the desired changes within an organization. Identifying and understanding these restraining forces is crucial for change leaders to develop effective strategies to overcome them. 

Here are some common restraining forces:
1- Existing organizational structures, processes, and systems may resist change due to their inherent inertia. Bureaucratic structures, in particular, can be resistant to modifications that may disrupt established workflows.

2- Poor communication about the reasons for change, the expected outcomes, and the implementation process can contribute to resistance. Ambiguity and misinformation can lead to distrust and resistance among employees.

A forcefield operates in such a way that the opposing forces balance out at a point where the driving and restraining forces are equal. This is the point at which the usual rhythm and pattern of human activity becomes established. 

To create change, therefore, Lewin suggested that two questions have to be answered: 
1- why does the process, under its present circumstances, carry on at this level 
2- what are the conditions for changing those present circumstances?

Although change is always going on within any group of people, life has a tendency to settle down, 
and activities develop a rhythm and pattern of their own. It happens in our personal life too – 
we develop habits that we hardly notice; for example, where we shop for food. Typically, the same 
supermarket is visited and a broadly similar range of food is bought each time.

Make that Change.

I wish You Success.

Wednesday, August 09, 2006

What is a strategic alliance

When you're running a business, you ALWAYS have to be on the lookout for ways to add new streams of income. And one of the BEST ways to do this is by entering into "win-win" relationships with other businesses!

Strategic alliances are formed to achieve specific goals or objectives that benefit all parties involved.
Common objectives may include entering new markets, developing new products, sharing technology, 
or improving operational efficiency.

You never know WHERE you're going to find your next business partner!

How do these arrangements benefit the businesses? Think about it... When Starbucks has a shop inside a big bookstore like Barnes & Noble, it gets to put its products within the eyeballs of a lot of potential customers.

Barnes & Noble, meanwhile, is happy to play host to Starbucks because its customers won't have to 
leave the bookstore to get their daily caffeine fix. The more time people spend inside the store, 
the longer they're exposed to all those books -- and the more likely they are to make a purchase!

Types of Strategic Alliances:

Joint Ventures- Two or more companies create a separate legal entity to pursue a 
specific project or business opportunity.

Equity Alliances- Companies acquire equity stakes in each other, creating a financial 
interest and alignment of long-term goals.

Non-equity Alliances- Partnerships where companies cooperate without forming a new entity or exchanging equity.

The point is strategic alliance and joint venture opportunities are EVERYWHERE. If you keep 
yourself open to the possibilities, there's no limit to where you can take your business! Strategic alliances provide a level of flexibility that allows organizations to adapt to changing market conditions without the complexities of mergers or acquisitions.

Just make sure you research your potential partners carefully and contact them in a professional manner.
Partners should have well-defined exit strategies in case the alliance does not meet expectations or 
if market conditions change.

Strategic alliances can be powerful tools for anyone seeking to enhance their competitiveness, 
expand their reach, and innovate. However, they require careful planning, effective communication, 
and ongoing management to realize their full potential.

I wish You Success.

Thursday, August 03, 2006

Things You Should Know Before You Bid

Online auction is an e-commerce model that allows users to bid on and purchase items through the internet. These auctions can take various forms, and they provide a dynamic and interactive platform for buyers and sellers. 

Types of Online Auctions:
English Auction- Also known as an ascending-bid auction, participants place increasingly higher bids.
The item goes to the highest bidder when the auction ends.

Dutch Auction- Starts with a high asking price that is gradually lowered until a bidder accepts.
The first bidder to accept the price wins the item.

Reverse Auction- Buyer's post what they are willing to pay, and sellers compete to offer the lowest bid.
Often used in business-to-business transactions.

Sealed-Bid Auction- Bidders submit concealed bids, and the highest bidder wins.
The bids are not revealed to other participants.

Valuable Auction Tips:
1. Know the value of the product before you bid. If the product is brand new, check to see what price
retailers are charging for it. If the product is used or reconditioned, you will want to pay way less than the retail value.

2. If the product's description or picture isn't detailed enough for you, contact the merchant to get more
information before you bid. You don't want to take a chance to waste your hard earned money.

3. Know the highest price you will bid for the product and stick with it. Don't get caught up in a bidding war; you may end up paying more than the product's worth. Don't forget to add in the shipping price with your bid.

4. Visit a few online auctions before bidding because some merchants auction the same product in many
auctions. You usually can purchase the product for a lower price in a unpopular auction because there are less bidders.

5. Know the time the auction begins and ends. You also want to know how long it will take to ship. If
you need the product by a certain date, you'll want to estimate the time it will take to receive it.

6. Know the payment options the merchant accepts before you bid on their product. If they only accept
checks or money orders, it may take even longer to get the product because the payment has to clear. If
they accept credit cards make sure they have a secure server.


7. Know if the merchant offers a warranty or money back guarantee or before bidding on a product. You
don't want to get stuck with a product that does not work, or you're not satisfied with.


8. Online auctions will, sometimes, allow you to check the merchant's history with their auction. Check to see if people have complained about their products or business practices before you decide to bid.


9. It's important to place a bid early in the auction to show other bidders you are interested in the product. If someone does out bid you, don't be afraid to outbid them. Remember not to go over your maximum bid price.


10. Another reason to know when the auction ends; you can place a last-minute bid. The other bidders
may not be keeping track of when the auction ends or may not have the time to bid again.

I wish You Success.