Evaluating the Need for Credit Cards

If you have endless cash, you will never have a need for credit. You will never have to take out a loan because you will always have the money to cover any cost. However, many people do not have this option.

As a general rule, you should not purchase something on credit if you cannot afford to pay for the item in cash. This does not mean that you have to have the entire amount in cash currently available. This means that you have to be able to use your cash, without financial strain, to pay off the bill.

In this day and age, credit cards are essential for building your credit score. Why is this important? Like I said, if you have endless cash, this is not a problem. However, like most of the people in this country, a big purchase, like a house, if something that cannot be afforded if cash was required. Therefore, in order to qualify for a big loan (like a house, car, etc.) we have to build our creditworthiness. Building your creditworthiness is accomplished by raising your credit score. Raising your credit score is accomplished by the correct use of credit cards.

Therefore, the need for credit cards is important in order to be able to afford shelter for yourself and your family and to provide a convenient mode of transportation. If used correctly, credit cards can be a very powerful financial tool. Learn to use your credit cards correctly and you will be able to open financial doors that would otherwise remain closed to you.

Conventional Personal Finance

There are many bad things that you can do with your money or to your money. There are also many goods things you can do with or to your money. What should you do and what should you avoid?

(1) Plan Your Finances – Budgets are very hard to stick to and can cause many headaches, however, planning the big purchases can help protect you from a financial blunder. Always plan out the big purchases before reaching a final decision. This will not guarantee that you made a wise purchase, but it will make you think out and research all the details before concluding one way or the other.

(2) Always Use Interest Bearing Accounts When Possible – Many banks offer interest bearing checking accounts, and various other interest accounts. While deciding between investment opportunities or for the money you keep in an account to pay the bills, collecting interest on this idle money can quickly add up. You will not become rich, but this is the easiest, risk free money you will ever collect.

(3) Diversify – This is very common and effective advice. The recent volatility of the real estate market is a perfect example. Many people lost everything because they threw all of their investment money into the real estate market during the boom. Unfortunately, like gravity, what goes up must come down, and that is what the market did, with a vengeance. If these people had been diversified (meaning they had spread their investment dollars through various industries and markets) these people would have minimized, and probably offset any loss they received from the real estate market.

Doing these three, simple things will help you generate and maintain income for many years to come.

Surviving Financially After You Have Been Laid Off

It happens to the best of us. Sometimes, economic factors beyond your control cause a company to downsize. Sometimes, a merger or a buyout means that a company’s employees will be laid off. What do you do now?

For purposes of this article, we will assume that our fictional, laid off worker did not have any savings, or money set aside in order to “weather the storm,” so to speak. To tell somebody that has been laid off to tap into their savings assumes that the person has savings. One cannot give advice about what to do AFTER one has been laid off based on assumptions of what one should have done BEFORE one was laid off. Do you see the problem with that?

First and foremost, you cannot stay discouraged for long. Being discouraged makes you doubt yourself and, therefore, takes away your motivation to find a new career. If you are feeling discouraged, remember that statistics show that people now-a-days change career three or four times throughout their work lives.

At this point, you have to sit down and calculate your bills. Note what you have in your bank account and see how long (under a worse case scenario) that you could survive without working. Now take that timeframe and shorten it by two (2) weeks. Once you figure this out, you now know your deadline to find a new job. You shorten the timeframe by two weeks because that is how long it usually takes before you get a paycheck at your new job.

You may to get a part-time job in the mean time to cover any bills that you cannot afford while you are in between jobs. The part-time job should be easy to get and not interfere with your goal of getting a new, full-time career.

If things are taking longer than expected, you might want to consider cutting costs. Getting rid of some luxuries (eating out on the weekends, your morning latte at the coffee shop, expensive cable packages, etc.) will help reduce monthly expenses until you have your new career in hand.

If all else fails, start thinking about selling assets. This does not mean hold a garage sale. This means you might have to dump a car, some television or stereo equipment, or something else that when sold would actually have a positive financial impact.

Just remember that your main goal is to find a new career. Do not procrastinate and stay positive!

Is it Possible to Live Without Money?

Technically, it is possible to live without money. One can barter for necessary items such as food, water, clothing, and shelter. However, this is more true in earlier times than in today’s modern society.

This question is more important in the context of determining what is important to you. Think of this question more as a “would you rather” situation. For example, would you rather be rich or happy? Therefore, the question of “is it possible to live without money” is more metaphorical. In my opinion, it is possible to live without money as long as myself and my family are healthy and happy. Keep in mind that I am not saying that I do not want money or wealth. If I am able to obtain all three (health, happiness, and wealth), I will do everything in my power to achieve.

The purpose of the question is to make you think. Think about what you are willing to do, sacrifice, or compromise in order to obtain your ambitions. Think about whether the things you are compromising or sacrificing are more important that the things you are compromising or sacrificing it for. In other words, do the means justify the ends?

Think about this carefully or you could be giving up more than you obtain.

Defining Financial Freedom

What is financial freedom? Basically, one would probably define financial freedom as being rich or as being wealthy. But, what is rich? What is wealthy? Do you define “being rich” or “being wealthy” as having a lot of money? Do you define “being rich” or “being wealthy” as having the time to do what you want when you want, or do you feel that spending more time with your family is the defining characteristic of success?

Here is the million dollar question: do you need a lot of money to be able to have the freedom to do what you want and to be able to spend more time with your family? In other words, do you have to be “financially free” in order to achieve your “higher” goals?

Up to this point I have asked many questions but have provided few answers. The reason for this is because each person is different. A lot of money, a big house, and an expensive car are not necessary for many people to be happy. Many people who are not financially rich lead exceptionally happy lives. These people create a budget and stick to it, however, these people enjoy quality of life over financial success. Some of the happiest people on earth make barely enough money to fit into what is defined as the “middle class.”

How does this help define financial freedom? Basically, there are two ways to think of financial freedom. First, one can have an abundance of money and can, therefore, afford anything one wants. This means that money is not an issue of concern. The other way one can be financially free is for one to not care about money. These are the travelers and movers in the world that make just enough money to support themselves, but because they are always on the move, traveling around and discovering new things, money is not an issue. These people believe that life experiences are more important than the size of a bank account.

The big question you need to answer is: what kind of financial freedom do you want?

What if I Experience a Loss?

In everyday speak, a loss is a bad thing. Whether the loss is love, life, or money, a loss is never good. However, because I deal primarily in business transactions and financial insight, we will disregard all other losses and concern ourselves solely on financial loss.

For example purposes, let us pretend that you own a business. You want to make a lot of money in your business. But sometimes, a loss happens. Now what? Do you pack up shop and leave? The answer is: it depends.

If you are a new company, chances are you are going to be operating at a loss in the beginning. This is due to all the initial costs that were necessary to establish your business. Does this mean that after a year, if the company is not profitable you should close shop? What about after two years? How about three years? Once again, your decision depends on your situation. If you are a new business, you probably should not pack up after a year. But if you have no long term plan and you keep losing money year after year, you might want to think about cutting your losses.

Many people make the classic mistake of justifying their continuing a failing business because of all the time and money that has already been used for the business. A classic statement is something like, “I already put $X into the company, I might as well ride it out.” This is a terrible way to think because this usually results in further monetary loss! The time and money that have already been spent are sunk costs. A sunk cost is defined as “a past outlay or loss that cannot be altered by current or future actions.” This means that “riding it out” will not recoup the loss. You have to move on and stop wasting additional dollars!

On the other hand, there are some pretty big companies that operate at a loss because their future profit potential is huge. Two companies that currently do this are Sirius and XM Satellite Radio. Because of the costs of launching satellites, acquiring customers, and developing packaging contracts with auto makers, these companies have been operating at a loss for years. However, as more and more people sign up for the service and as equipment costs decrease, these companies come closer to becoming cash flow positive with every passing quarter.

If your company is designed to follow some sort of long term profitability plan, then it would not make sense to close shop after a year or two or three of losses. Just makes sure that your future profits are viable. Do not fool yourself into thinking that future profits will come if such a future profit business structure was not part of your original intention or plan.

Entrepreneurs Need to Think Big

Any entrepreneur is a person, by definition, that takes a risk in the business world. So why should you be any different? Think BIG!

What exactly does “think big” mean? Thinking big means that you take into consideration any and all ideas that you feel are too hard, too expensive, too time consuming, or are out of your reach. Why limit yourself by things that you think are easy to obtain? If a project or investment is easy to obtain, this usually translates into a small amount of risk. If a project or investment has only a small amount of risk attached to it, this usually means that the reward will also be small. As an entrepreneur, you should challenge yourself to take a risk and to consider all possibilities regardless of intensity or degree of impossibility.

Keep in mind that thinking big and acting on those thoughts are two very different things. When I tell you to think big, the point is to prevent you from limiting your options before you have even considered the possibilities, advantages, or chance of success. This does not mean that you should blindly follow an idea merely because it is a “big” idea.

Thinking big means accepting all ideas and working through the details until you reach a decision as to your course of action or inaction, if that is the case. Think big, reach for the stars, dream about the impossible, but follow your intuitions, education, and instincts as to a course of action to pursue.

As a Manager, Is It important for Your Employees to Like You?

This is a matter of opinion. I personally believe that if your employees like you, they will be more willing to work hard for you. There is a delicate balance that needs to exist. The balance is between your employees liking you and being a friend to your employees. Just because somebody likes you does not necessarily mean that you are their friend or that they are your friend.

“Hanging out” with employees can lead to dangerous situations and possible trouble. Some employees that you do not hang out with may feel that you, as the manger, are “playing favorites” with the employees that are your “friends.” Others may feel that the relationship is inappropriate because it blurs the line between personal and business relationships.

Regardless of the danger of developing a friendship (I know it sounds funny, but it can be a problem), managers that are liked will be more effective, not because of some extraordinary management skill, but because the employees will be more willing to take the extra step, go the extra mile, work a little bit harder or longer, and treat the customers better. A positive work environment creates a positive employee. Positive employees treat customers better!

All of these advantages lead to more money for your company through increased sales, lower payroll costs, and better reputation through increased customer service. Have a competent, well-liked manager and your business will prosper.

Strategies for "Thinking Outside of the Box"

In this day and age, telling somebody to think "outside the box" is pretty cliche. However, despite the overuse of the phrase, the concept that is encompasses is still sound strategy. Thinking outside the box or creative idea creation is an important skill that all entrepreneurs should try to obtain. The problem that most entrepreneurs have is that they become slaves to their ideas. This is a problem because a person, regardless of race, religion, gender, creed, educational status, and economic position, is restricted by the boundaries of his/her own biases, tastes, and opinions. However, you can overcome these boundaries by practicing a few simple strategies.

First, you can bring in an outside opinion. By bringing on an outside perspective, you are able to identify your biases and correct them or accept and utilize your bias, depending on your situation.

Second, you can evaluate your idea or decision to see if your biases have infected your thought process. This is very hard to do because a person usually does not recognize or know his/her biases. Most people write their biases off as fact and therefore, do not analyze the bias. This is the biggest problem with self-evaluation. However, it is a helpful tool that will be able to help you identify some, but not all, of your biases.

Last, when all else fails, do not use your idea. Thinking outside the box can include using the ideas of others. Talk with others, brainstorm, or get a "think tank" together to see what can develop.

Learn to identify your biases and how to evaluate their affect on your idea, and you will be able to come up with more creative, successful ideas.

What is the Difference Between a Real Estate Broker and a Real Estate Agent?

As articulated to me by my real estate teacher before I obtained my real estate salesperson license, “the agent is scum and the broker is god!” This is a very important lesson to learn. The problem that most aspiring licensees have is that they are under the false impression that once they receive a license, they have free reign to sell any property and represent any client that they see fit. The truth is, agents are nothing without their brokers. A licensee cannot sell any property or any timeshare, nor can he/she represent any client without the consent and involvement of the broker.

Educational requirements are another difference between an agent and a broker. In order to obtain a real estate salesperson license (depending on the state in which a license is obtained), a person usually need only show proof of having taken a specified number of hours of real estate classes and pass a test. However, the requirements to obtain a broker’s license are far stricter. First of all (once again, all states are different so check your local laws), brokers usually need to have completed a specified number of college credits in specified subjects. Additionally, to sit for the broker’s exam, a person usually needs to have worked full time as a real estate salesperson or real estate broker/salesperson for two years during the last five years. Also, the broker’s exam requires an additional fee that is usually higher than the exam fee for a real estate salesperson. Last, some states provide an exception to the requirements of work experience and college credits for a broker’s license if the applicant has obtained a bachelor’s degree from an accredited university. Some states waive the experience and educational requirements if the applicant is a licensed lawyer. However, absent spending the money and time to successfully complete law school, most applicants will have to meet the educational and experience requirements.

The preceding paragraph begs the question, “If sitting for the broker’s license requires all of those additional qualifications, what is the advantage of having a broker’s license?” The main advantage of having a broker’s license is money! Let us be realistic about the real estate business; I am sure that it feels great to help a person buy their first home. However, if a person wanted a job solely for the good feeling, becoming a real estate agent or broker would not be near the top of the list, if at all. People become real estate agents for the money. Real estate agents can make a lot of money through commissions. However, the broker that employs the agent will always make more. The best way to become rich is to make money of the efforts of others. Brokers usually collect anywhere between 10% to 50% of the agent’s commission. Now, if a broker employs ten agents, that broker is making money off of his/her efforts and off the efforts of ten others. Real estate agents cannot do this, therefore, would you rather be a broker or a real estate salesperson?

Before you answer that question, it is important to note the liability issues with brokers. A broker has a duty to supervise and train agents, therefore, if the agent messes up, the broker could be held liable along with the agent. Back to the example of the broker that employs ten agents; that broker has the possibility of being held liable for the mistakes of ten people whereas a salesperson can only be held liable for his/her own mistakes. The broker in our example may get ten times the monetary benefit, but, in return, he/she has ten times the liability issues.

In the end, if the broker is competent, the liability issues can be easily avoided (also helping a broker in this task is the fact the most states require a continuing education requirement where a salesperson has to take “refresher” classes every two years in order to renew their real estate licenses). Therefore, although harder to obtain, if you possess the necessary qualifications, the monetary benefits of being a broker outweigh any potential liability issues.

The Advantages of Multiple Sources of Income

The advantages on having more than one source of income seem obvious. More than one source of income means more money. However, the advantages of multiple income sources are more than just more money.

First, multiple income sources diversifies your risk. If one income source is cut-off or fails, there is still one or maybe more that is unaffected by the failure of the first (assuming the income sources come from different markets). For example, let us say that you are a computer programmer and that you have some investments in real estate, specifically, real estate rentals. If you stop receiving a paycheck from your computer programming job, your income from your real estate rentals will most likely be unaffected. The additional source of income creates a “safety net” so that money is still coming in the door.

Another advantage of multiple income sources is efficiency of work. In other words, you can make more money per hour while doing the same amount of work. For example, if you were to get a second job, you would be making more money and you would have another source of income, however, you would not be working efficiently. On the other hand, if you had stock investments that pay dividends, real estate investments that pay a rental income, a website with advertising income, etc. you would be making more money per hour for doing the same amount of work, and thus, be more efficient.

Last, and probably most importantly, having an additional income source can give you free time and peace of mind. Having free time is great, but having free time to worry about your finances is like slow torture. The point of free time is to spend it doing the thing you love. Nobody loves worrying about money, therefore, the peace of mind that an additional income source can provide is an extremely important element.

The advantages of an additional income source are many, however, do not work harder for it, work smarter and success will be within your grasp.

Is it Possible to Define Entrepreneurial Spirit?

Entrepreneurial spirit is the motivation used to better yourself and/or others on your quest to achieve “success.” As far as the definition game goes, I believe that “success” is much harder to define and even harder to obtain that is entrepreneurial spirit.

Put simply, entrepreneurial spirit is motivation. Motivation to do what? That is a question that you have to answer. Nobody can tell you that you are an entrepreneur. Nobody can say, follow these steps and you’re an entrepreneur. Unlike traditional college programs, one cannot major in “entrepreneurialism.” You can take classes on the subject, but for the most part, a Business degree is as close as universities get to offering a major in entrepreneurialism. The point is, you have to find your own reason for choosing the path you chose, and then be responsible for maintaining the passion necessary to complete your quest.

A professor once told me, “an entrepreneur has only three characteristics, Passion, Passion, and Ego.” It was the first two characteristics (passion and passion) that really made me think. Two-thirds of being and maintaining yourself as an entrepreneur is having the passion to be an entrepreneur; having the passion to pursue the entrepreneurial dream; having the passion to think of an idea and see it through to fruition; just simply having the passion to do.

Only you can light the fire to pursue your dreams. School, experience, specialty courses, degrees, and the what not are all just tools to help prepare you for the journey. But, what good are these tools if you do not have the passion to use them? Talking is not action, and many would be entrepreneurs make this fatal mistake. If you want to do something, take action!

I have a friend who became very successful in the real estate business. He came from a similar educational and financial background as me, yet he has already achieved what I currently working toward. We were sitting down one day having coffee and I asked him, “How did you get the financing for your first real estate purchase?” He said, “If you want to get financing, go out and get it. That is what I did.”

My friend did not know anybody special. He did not have rich family members or any other type of monetary connection that I did not. His ace in the hole, his sole source of revenue was his passion. He had the passion to go out and get what he wanted. I am sorry to say that he had more passion than me or else I would have been in the same boat. However, all is not lost. I learned from our little conversation and am better off because of it.

Find your passion; find your “entrepreneurial spirit” and success will follow.

Tips on Developing a Reputation as a Ubiquitous Businessperson

Ubiquitous is defined as "being or seeming to be everywhere at the same time." How does this help a businessperson's reputation? To be described as ubiquitous means that you can be in more than one place at once. It means that you can handle more than one situation at a time. Put simply, it means that you are a multitasker.

Is being able to multitask a good trait to possess? I believe it is. Being able to effectively complete more than one task at a time helps with efficiency. Efficiency equates to cost savings. Cost savings equate to higher profits. Higher profits equates to more money! Do you see a winning formula here?

Now back to the question at hand; how do you develop a reputation of being a multitasker? First, you have to know your limits. There are many characteristics that will help you in the business world, and you do not have to possess all of them to be successful. Develop the characteristics that play to your strengths. Do not try to bite off more than you can chew just because you want to show your ability to handle multiple tasks. Business partners, investors, and customers will be more concerned will quality than quantity. It makes more sense to do a great job on one project than a mediocre job on three projects. The reason this is true is because even though three jobs were "completed," they will probably have to be redone because of lack of quality. Having to redo things costs money and effectively negates the cost saving purpose of multitasking.

Second, if you evaluate your situation and think you can effectively handle more than one task at a time, try your hand at more responsibility. Start small and take on one additional, small task. For example, if your current project is in real estate investment and your task is to find financing, but you feel that financing will not be a hard project to effectively complete, you may want to take on another small project, such as finding renters (if you are going to hold the real estate).

Last, do not try to do everything yourself. This point is similar to my first point except for one difference. My first point was, do not multitask for the sake of multitasking. This third point is, once you have started multitasking and found that you can successfully do it, do not use this success as a motive to do everything. Nobody can do everything, and if you attempt to, two possibilities will result: (1) you will get "burned out" and not be able to effectively perform any task; or (2) you will not be able to complete all the tasks and some aspect of your project will "fall through."

Having the ability to multitask will be beneficial to your future success, however, only do so within your limits. Remember, effectively completing one task is better than partially completing multiple tasks. The whole point of multitasking is cost saving, and this only works if projects do not have to be redone. Be ubiquitous, but not irrational, and your reputation will develop accordingly.

How the Internet Levels the Playing Field for the Small Entrepreneur with Big Ideas

A common theme among aspiring entrepreneurs is that they possess as many ideas as stars in the sky. You and your business partners spend countless hours preparing a “package” that you can show people in hopes that they will think your idea is great and will want to help. You and your business partners planned and thought of every possible, microscopic detail. You are very proud of your idea and your work, however, you soon realize that a big monetary investment is necessary in order to put you idea “into action.”

This is the point where most ideas fall apart. Getting financing is not an easy task. You can try the traditional channels (such as banks and other lending institutions), but chances are, unless you have vast amounts of experience, excellent credit, and a large amount of collateral, you will most likely not get the loan you sought. An alternative is to find “private money.” The problem with this is that many times private investors will want a large piece of your idea (by way of a percentage of gross revenue) or will want management control. You may agree to a “bad” deal if you are desperate and find that the investor is making more money than you! What are your alternatives?

This is the part when you may expect that I tell you how great the Internet is and how it has changed the modern business model. Well, it is true that the Internet is great, and it is true that the Internet has revolutionized modern business, however, many pitfalls exist that can make your Internet business awakening a real life nightmare.

First, the good. The Internet is a relatively inexpensive way to advertise your business. It allows many opportunities for an aspiring entrepreneur that would otherwise be closed off in a traditional business building model. The Internet allows provides a very large audience where you can sell your products. In other words, you are no longer restricted by state and international borders. The world is your oyster, so to speak. In addition to the advertising benefits, start-up costs are relatively inexpensive. Owning and maintaining a website is far less costly than owning (or leasing) and maintaining an office and/or store.

Now, the bad. The Internet can have many pitfalls for the inexperienced “webtrepreneur.” You have to be wary of the people you meet on-line. Many people will promise you gold, but only deliver lead. Make sure you do not jump into a “business relationship” on-line just because the other person delivers a good pitch. That being said, there are many sincere people on-line who will possess goods and/or services that may help you in your business endeavor. Feel these people out, develop a steady communication, and ask for credentials. Who knows, you may be able to build an important business bridge!

One of the biggest problems with Internet companies is that something may be wrong with your website code. In other words, your page may not be navigating properly, loading properly, or receiving and sending payments properly. In order to prevent these problems, you are going to have a website programmer, or some other computer savvy person on the payroll at all times. As inventory changes or new products come in, you are going to have to update your website in order to make sales. This is where your programmer comes into play. In may be costly at first, but losing business to lost sales due to website malfunctions, will cost you much more.
As a whole, the Internet has made it easier for entrepreneurs to pursue their dreams. Remember to weigh the advantage against the disadvantages. Take advantage of the benefits and avoid the pitfalls and you may find the success for which you are looking.

How to Develop a Reputation as a Dependable Businessperson

Dependability is an important asset to have in the business world. There are a number of things you can do to establish a reputation as a dependable businessperson.

First, always be on time. Being punctual is great a great way to show clients that you care about their situation and your business relationship with them. By showing up late, you portray the “I had better things to do” attitude. When a client thinks this, he/she will less likely depend on you and thus, may go to a competitor for their business needs.

Second, always meet your deadlines. This is very important. If something is due by a certain date, make sure that you have completed that project by that time. Showing an ability to successful accomplish time sensitive work shows that you are dependable. Additionally, if you know that you cannot meet the deadline, notify your client as soon as possible so you can solve the problem. The worst thing you can do is lie to yourself when you know that there is no way you can meet a specific deadline. Be honest with yourself and your clients, and you will be able to solve any potential problems before they arise.

Third, establish a reputation of being dependable. Be known as the person “that people can depend on in a crunch.” How can you achieve this kind of reputation? You can achieve this kind of reputation by actually being the person that helps your clients out when they are in a tough situation. Clients like to know that there is somebody there to back them up. Be that person, and your reputation will flourish.

Last, always remember that a bad reputation is easier to get and harder to get rid of than a good reputation. Always be upfront and honest with your clients. You do not want to develop a bad reputation during your career. Unlike Hollywood, negative press can and will hurt your career.

Online Business Networking: Does it Work?

I have advocating using the Internet for a wide variety of things. Now the question arises; does online business networking work? You tell me. Thousand of new websites are being created on the Internet each and every day. It seems that every major company has at least one blog. Bloggers are making money hand over fist and are not even selling a product!

Is online business networking the most effective way to market a business? This question depends on many factors. First, like with most things, the amount of money you are willing to spend, will determine, among other things, the amount and quality of exposure you, your product, and/or your website or blog are going to get. However, the great thing about the Internet is that you are going to get “more bang for your buck.” Think about it like this; if you spent $100 to go to a networking event, you might meet a couple hundred people, of which only about twenty or thirty will actually produce any business for you (in exchange for you producing business for them). On the other hand, if you go on a social networking website (the larger free sites include MySpace and FaceBook, while there are paid sites that charge a small monthly fee but produce contacts specific to your business) you will be in contact with literally millions of people! So, common sense would tell you that free contact with millions is better than paid contact with hundreds.

However, something is to be said with face-to-face networking. It is a very valuable tool. People cannot really grasp your personality strengths in an e-mail. This is the disadvantage to online networking. However, if you are not the best schmoozer, online networking will probably be your best bet.

Take advantage of the free networking, but do not disregard the in-person networking. Remember, you get more bang for your buck with online networking, put you lose the advantage of presenting your personality strengths. Weigh the pros and the cons against your situation and use the two systems accordingly to help maximize your business networking opportunities.

Ways to Effectively Distribute Business Cards

Let us assume that you already have received your brand new business cards. Chances are you spent money to get them. Why then would you waste that money by ineffectively distributing business cards?

Before we begin, you will want to make sure that your business card contains your full name, your company name, you position/occupation in the company, and any and all contact information (including your company address, office phone number, cellular phone number, fax machine number, and e-mail address). You might want to refrain from giving your home phone number unless you run a home based business. If you have a beeper, give this number also. The point is that you want to make it very easy for your client to contact you whenever he/she needs to, during working hours.

Additionally, you want to keep your business card clean-looking and to the point. The point of a business card is to give some very brief information about your position and contact numbers. Now is not the time to present your entire life story. I have seen some people put their company mission statement, product lines, company motto, etc, on their business cards. I think this is overkill. At most, I would include (if relevant) a company logo and any education or experience you have that would make you more credible. This does not mean that you place your resume on your card; this means that you put the appropriate educational distinctions after your name (for example, M.B.A., M.E., B.A, B.S., J.D., M.D. Broker, Broker-Salesperson, Salesperson, etc) and/or a quick one-liner about your experience (for example, “helping people acquire wealth for over ten years”).

First and most importantly, ALWAYS have some of your business cards on you. Having anywhere between 10 to 15 business cards with you at any given time would be ideal. Many times people will ask for a business card and you may not have one to give. This is a lost opportunity! If you just give the potential contact a phone number, chances are, he/she is going to forget what and who the phone number is for. However, if a business card was given, there can be no mistake as to who the number belongs.

Second, put a stack of business cards on your desk. When you meet potential clients, it is nice and beneficial to give them a card. This way, if that person wants to recommend you to another, they will have a business card to give to that person. Additionally, your client will have a means of information should they need to contact you for any reason.

What if you do not have an office where clients come to meet you? What if you run a home based business? This problem is easily solved. When you go and meet the client, give them a card attached to any presentation, contract, agreement, and/or document that pertains to the meeting. (The preceding sentence also applies to people that have a traditional office where clients come to meet. Just make sure that you do not drown your clients with business cards. One or two is fine. Do not attach a business card to every document you produce for them).

What if you never meet the clients with who you do business? In this case, some sort of communication has to take place. How else would you two have gotten into contact? In this case, it is most likely that e-mail is used and, therefore, you can put business card-like information beneath your signature line. It has the same effect as a traditional business card and better yet, it is free!

Third, networking events are a great place to exchange business cards with others. Just make sure you do not blindly throw your cards at people without making a true contact. Handing cards to people you never talk to are not going to help your cause.

Last, place your business cards in local shops that allow you to do so. Many local coffee shops, juices bars, restaurants, pubs, bars, and “mom and pop” stores allow people to place their business cards on a bulletin board and/or on the restaurant tables under a piece of glass which serves as the table “cloth.” This is a good way to create ties with the local small businesses and with the local community. A word a caution; this is probably going to be the least effective method for generating business. Many people do not go into a coffee shop looking for a anything other than a cup of coffee, therefore, do not expect much business to come directly from this method. That being said, if a person does become your client from one of your cards placed in local businesses, and that client ends up loving you, that little card that stays pinned up at those shops, probably indefinitely, will generate much positive word of mouth advertising. This in turn creates lots of business for you.

Self-esteem and the Business World

Self-esteem is important no matter the avenue of life involved. If you do not have self-esteem about general aspects of your life, possessing self-esteem in the business world is not important. You first have to possess self-esteem generally if you want the same to apply in a business setting.

Let us assume that you possess much self-esteem and that you are an outgoing person. Both of these characteristic traits will be greatly beneficial to you. However, it is easy to get discouraged if you are not careful. You have to have “thick skin” in the business world if you want to achieve greatness.

Many people advocate the “dog eat dog” ideal of business. Competition is going to be rampant during your entrepreneurial journey, however, how you deal with the competition or how it affects your self-esteem is going to determine whether you will survive as an entrepreneur.

Rolling with the punches is part of this business. I am not advocating that you not be competitive. Competitiveness is an essential element, however, when the competitive streak leads to unethical tactics or the untruthful damaging of a personal reputation, you need to step back and evaluate your actions. The truth is, these actions may happen to you. How you deal with such an event (by means of your self-esteem) will be pivotal to your success.

First and foremost, you have to stay calm. This can be easier said than done when faced with a situation as described above, however, maintaining your calm will help you think rationally. Rational thinking will help prevent your doing some action that you will later regret.

Second, fix the problem. If you have received negative feedback or are experiencing confrontational problems from co-workers or other similarly situated people, fixing the problem can be your best bet. This will require talking to the culprit. Do not confront because this could cause an unnecessary tension. Instead, explain the problem to the other and see if you two can come to an amicable solution.

Last, assess how you handled the situation. Your self-esteem about your abilities runs simultaneous with your abilities themselves. Learn to control your environment, and your self-esteem and you will do fine on your entrepreneurial journey.

The Importance of Networking

If you have found your way to this blog, then you are interested in pursing some type of career path as an entrepreneur. I am going to let you in on a little secret, networking is going to be one of the most important keys to your success.

I have written articles in the past regarding the importance of networking, and nothing has changed since that time. Why then am I writing another article on the subject? I am writing another article because networking is that important.

The whole idea behind entrepreneurialism is to create wealth were ordinary people cannot. Later in your career, when you have your own company and your own financing, you may be able to complete a project with most of your own resources. However, even then you will need the help of others. Until that time, you have to build your reputation and business contacts. This is achieved through, survey says, “networking!”

Networking is defined as “a supportive system of sharing information and services among individuals and groups having a common interest.” In case this definition is too formal for you, I think of networking as a way of getting my name “out there.” Networking is a great way to meet likeminded individuals that can help each other achieve success through the exchange of certain assets and skills.

Now that you have a basic understanding of what networking is, you now need to know how to network. First thing first, define your purpose for networking. Are you trying to find support on a specific project or are you generally attempting to acquire contacts? Once you have defined your purpose for networking, you will be able to effectively focus your networking efforts.

Many cities have events were aspiring entrepreneurs can meet and greet. These events are free to attend and can create many wonderful contacts that could help you now or in the future. Additionally, many cities have organizations or clubs that are specifically formed by aspiring entrepreneurs for aspiring entrepreneurs. Search the terms “Entrepreneur Organizations” in your favorite search engine to acquire a starting point for your discovery.

Also, be aware of what your local college or colleges are doing. Many times it will hold conferences, seminars, or the like that is open to the public. Be aware of these events as they can be a great place to begin spreading your reputation.

These are a couple of simple ideas about where you can begin your entrepreneur networking journey. Look around, be creative, and you should be able to find other networking opportunities.

Tips on Developing a Reputation as a Credible Businessperson

No matter your field of business, your reputation is a very important attribute to maintain and to market. Becoming credible or reputable in your particular field will take hard work and discipline. With some discipline and creative marketing, you should be able to develop a powerful reputation that will bring a lot of business your way.

First and foremost, you have to be honest! Honesty in business will speak volumes about your character. If you can be trusted in and with a business transaction, word-of-mouth advertising will become your best friend. Referrals will start pouring in and making money will become second nature. If you “tell it as it is” (even if the truth is something the other parties do not want to hear) your clients, business partners, and/or customers will respect you for that.

Second, you have to know when to play “hardball.” Negotiating a contract (or any other item) can be a nasty, time consuming monster. You always want to get the best deal for your client, and this can sometimes mean that you and the other party may get into a heated debate. These can be avoided with some calming conversations, however, I can almost guarantee that this situation will happen at least once in your business career. If you represent your client to the best of your ability (whether in real estate or some other business) your client will know that you are looking out for his/her interests. The client will pay you back two fold: first, you will be paid your rate (whether commission or hourly) and second, you will receive referrals from that client.

Third, do not nickel and dime your clients. Whether you work for commission or an hourly fee, your clients are going to scrutinize every item on their final bill. If a client disputes a legitimate, significant charge you probably should not give in to their dispute. What is legitimate and significant? That decision is yours to make. On the other hand, you do not want to argue over something small if it prevents the large from being paid. Keep things in perspective and decide where you are flexible on billing arrangements.

Last, you have to know when to cut your losses. Not every client you meet or do business with is going to be all “roses and sunshine.” You are going to meet some clients you cannot stand, are not highly intelligent, and/or never listen to a word you say, which translates into you having to constantly clean up his/her mess. Sometimes you have to tell a client “no.” They might not like you in the short term, but when they discover that your decision was in their best interest (assuming your decision was in their best interest) they will develop a greater respect for you.