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!

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.

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.

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 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.

Characteristics of a Successful Entrepreneur

I could sit here and start rattling off random, “good sounding” characteristics (such as ambition, boldness, drive, motivation, etc.), but that does not really help you or me. Instead, I will tell you what I believe makes a “successful entrepreneur.”

First, a successful entrepreneur can do the impossible. He/she can make something out of nothing. Many people who start with nothing end with nothing. An entrepreneur does not follow this norm. No matter the disadvantages or set backs, a successful entrepreneur can change his/her situation to anything he/she wants it to be. A successful entrepreneur can change his/her stars.

Second, a successful entrepreneur knows how to seize opportunity. This one sounds easy, but in reality, many people let some of the best opportunities slide by unnoticed. Contrary to popular belief, “opportunity” does not magically appear at your doorstep (we should all be so lucky) and wait for your response. Opportunity is something that a person has to go out and find. You have to seek it out like a jungle treasure hunt and conquer the traps set along the way. A successful entrepreneur knows this and does this daily.

Third, a successful entrepreneur has to network. True, there are many “anonymous millionaires,” and although anonymous to you and me, they are not anonymous to the people that played a part in creating that millionaire’s wealth. You do not have to be world famous or have your own reality television show, but you do have to know a couple people in the particular “money making circle” of your interest if you want to achieve large amounts of wealth. Therefore, for example, if you want to develop real estate, it would be nice to know some contractors, other developers, some finance people, and even people at the various utilities companies.

Fourth, a successful entrepreneur knows when to walk away. There is going to be a time when you have to cut your losses. A successful entrepreneur knows when that time occurs. Remember, these are not the high seas. You do not have to go down with the ship! You may think that this characteristic contradicts the first characteristic I mentioned. However, the first characteristic relates to an entrepreneurs personal life and this point relates to business.

Last, once an entrepreneur has achieved large amounts of wealth, he/she gives back to those who have need it. A successful entrepreneur uses his/her wealth to help change the world for the better.

These are the characteristics of a successful entrepreneur.

How to Create A Business/Marketable Idea

As you begin your entrepreneurial journey, many questions and concerns will arise: How do I find financing? How do I write a business plan? To whom will I pitch my plan? However, no matter how much information and advice you can, and probably will, obtain about those questions, all of your questions and all of the available information and advice are based on the assumption that you have already created an idea, product, or concept.

What if you have not yet created an idea, product, or concept? Does this mean that you can never advance or achieve your entrepreneurial goals? Of course not! Although creating an idea, product, or concept can be one of the most difficult obstacles to overcome, it is not impossible and can be achieved rather painlessly.

The main problem with idea creation is that ideas are subjective. What one person considers a great idea, another may consider a terrible idea. Another problem with idea creation is that if the idea is forced, it will not be completely thought out, and therefore has the potential to become a “bad” idea.

Let me clarify something, you do not have to have an idea, product, or concept to become or continue to be an entrepreneur. Partnering with others is a large component of being an entrepreneur. Just know that unless you have a lot of money to invest or have specialized education or experience, your options will be limited. Due to this fact, many new entrepreneurs have to possess new, innovative, and creative ideas to make up for their lack of funds.

Some people are lucky enough to be born with creative ability. These people can create ideas and concepts with little or no difficulty. Knowing people who have this gift will benefit your situation. If you happen to know people with this ability, you should create a business relationship with them. They may be able to help you through any creative mental blocks that may occur now or in the future.

Back to the main point; how do you create an idea? First, you have to know what you are interested in and what type of education and experience you possess. Determining these factors will help you focus your thought process. For example, if you are interested in computers, but have no education or experience with computers outside of internet surfing or word processing, it will be difficult to create a marketable idea for computer software components. Know your limits and keep your thought process reasonable. In other words, do NOT let your imagination run wild. When you become good at creating ideas, then you can let your imagination do some work, but not at first.

Second, ideas are like dreams. Have you ever experienced the phenomenon of having a dream, waking up remembering the whole thing and then five minutes later not remembering any of it? In my experience, ideas follow the same pattern. An outside stimulus will trigger an idea and soon after having thought it up, I cannot remember any of it. The way to remedy this problem is to get a small notebook to write ideas in. Get one of the little notebooks that you see police carry in their shirt pocket. Whenever you have an idea, write it down! This way you can look at your notebook and later begin to develop your idea.

Third, ideas occur like magic. I know this sounds cheesy, but hear me out. Have you ever been sitting on your couch and a friend or family member asks, “What is the name of the actor in X movie?” You know the answer, but, for the life of you, you cannot remember the actor’s name. You eventually get frustrated and give up. Then, ten, twenty, or even thirty minutes later you are watching television, not thinking about anything and then “poof,” the actor’s name pops into your head. Ideas also follow this pattern. The truth is every person has had at least one good idea in his/her life. Sometimes, without noticing it, a stimulus awakens something in our subconscious and an idea pops into our head. When this happens (and it will happen because I guarantee it has happened to you before and you have not noticed) write it down in your notebook for further development.

Fourth, if by chance neither of the two phenomenon mentioned above occur or you are not patient enough to wait for them, more practical methods exist to stimulate idea creation. Going back to my first point, focus your thought into a field of interest. For example, if you are interested in cooking, maybe you have a problem with the way an oven can dry out a chicken when cooking. Now that you have identified a problem, brainstorm and think of as many solutions as possible. It does not matter how crazy the solution is, just think about them and write them down. After you have written down every possible solution, no matter how crazy, go through the list and find the solution that you feel you can best accomplish. Surprise! You have come up with an original idea. This does not mean that you should pitch this idea tomorrow. All this means is that you should develop your idea, mold your idea, and perfect your idea into something you think people would buy if in the market. Also, this way of thinking will get your creative juices flowing. You may find yourself traveling a different path from your original field of interest. If this occurs, follow the thought until completion. You may be surprised where it leads!

Remember, do not force your ideas, take a break if you need one, and BE PATIENT! Do not expect miracles the first time. Go through the process and everything should work out. Write down ideas when they hit or sit down, focus your thought, find a problem, think of a solution, and develop YOUR original idea.

Lastly, be proud of your creation. Ideas, like people, need nurturing and development. If you do thee things, idea creation will become second nature to you.