5 Key Ingredients of Business Success

What do you need to have for a successful business? Many people focus too much on the money part and neglect other important ingredients of a successful business. Here’s the list of key ingredients for business success:

1) Time: You must understand that time is money. In business, our objective is to make money. Period. But the question is how productively you convert your time into money. Are you making full use of your time or you just let the time pass by you?

How much you make depends on how good you are at converting time to money. If you are already productive, then you may want to ask what are the things you can do to improve further the ratio of dollar/second? If you are making $0.01/second, what you can do to make it $0.02/second? Or even more. Remember time is the most valuable asset and once it’s gone, it’s gone. Also time is also the fairest distribution of resources every human being receives.

2) People: To be successful in business, you must have people connections. I mean the right people. People consist of customers, suppliers, partners, staff, and associates. One thing that you must not leave out is your mentor or coach. Having genuine mentors or coaches is very important and it can make a very big difference in your business. Organize your database of people connections. By simply knowing who does what, who supplies what, who needs what, where to get what make you miles ahead of other people. To organize your connections, you can either use a paper folder or computer spreadsheet.

3) Knowledge and Skills: When I talk about knowledge and skills, I am not referring to academic knowledge that you find in schools or colleges. What’s more important to you is knowledge and skills that can bring you results you want.

How many MBA holders that you know of have become business owners and have made tones of money? That shows getting the right knowledge and skills is important. Don’t blindly go after knowledge that could drown you. Go for knowledge and skills that are universally tested and proven.

Examples of right knowledge and skills are where to get what from who, money making trends, marketing strategies, art of dealing with people, negotiation skills, selling skills, skills of managing and growing money, investment skills, universal laws of success, and more. Don’t waste time on unnecessary knowledge as I went through that before. There’s only so much that you need to know and learn. Be sharp and focus when you acquire knowledge and skills. Don’t follow what normal people do.

4) Personal Health: In fact, this is the most important ingredient of all. How can you run a business without a healthy body? In order to maintain an optimum health, you have to provide your body with proper nutrients and sufficient exercise. And also don’t forget about emotional well being. Don’t let anger and other negative emotions control you.

This is where positive and empowering attitudes come into play. Maintaining your body is just like maintaining your car. If you send your car to workshop for regular service and pump petrol regularly, why don’t you do the same for your body? It’s something for you to think about. Don’t be stingy over spending money for your own health because physical and mental health can cause you a lot of money in the long run if your body is not taken care of properly.

5) Money: Let’s face it. It does take money to make money even you need a little. But you might not need a lot of money to start a business because there are many ways to start one with low capital. I meet a lot of people who want to be rich but are not willing to invest the money. You must invest in something in order to for you to get something. The law of sowing and reaping is at work. Don’t expect something without investing anything. Money is one of the investments you need to make.

Even though you don’t need to have a capital for your business, but at least you must be able to cover your expenses while building your business. You also need money to buy products to stock up and other stuff. So, you must at least come up with whatever amount that you have to start a business.

These are the five basic ingredients of business success. Do your best to acquire or grow or invest in these ingredients. But the good thing is you don’t need to have a perfect combination of ingredients to get started. You can still perfect the ingredients along the way. Somehow, get it started with what you’ve got.

author:Abel Cheng

Categories of Real Estate Investment

Below are ten categories of real estate, and different ways to invest in them. The best one for you is something only you can decide, according to your particular needs. To help you do that, I list a couple good points and bad points for each type.

1. Renting single family homes. Good points: An easier way to get started, and good long term return on investment. Bad points: Being a landlord isn’t much fun, and you typically wait a long time for the big pay-off. You also lose all your income when a house is vacant.

2. Fixer-uppers. Good points: Fast return on your investment, and it can be more creative work. Bad points: More risk (many unpredictables), and you get taxed heavily on the gain.

3. Low income housing. Good points: Similar to any other rentals, but with higher cash flow. Bad points: Similar to any other rentals, but with more repairs and tenant problems.

4. Selling rent-to-own houses. Good points: If you buy, then sell on a rent-to-own arrangement, you get higher rent, and the buyer is usually responsible for maintenance. Bad points: Bookkeeping can be tricky, and most tenants don’t complete the purchase (this can be an advantage too, but it does mean more work for you).

5. Commercial properties. Good points: Multi-year triple-net leases mean little management and high returns. Bad points: A tough market to break into, and you can lose income on vacant storefronts for a year at a time.

6. Land, split and resold. Good points: Simpler than some real estate investments, with the possibility of great profits. Bad points: It can be a slow process, and you have expenses, but no cash flow while you wait.

7. Boarding houses. Good points: You’ll generate more cash flow renting a house by the room, especially in a college town. Bad points: You’ll generate more headaches renting a house by the room, especially in a college town.

8. Invest cash, sell with terms. Good points: A high rate of return is possible by paying cash to get a good price, and selling on easy terms to get a high price AND high interest. Bad points: You need a lot of cash, and you tie up your capital for a long time.

9. Invest, live in it, sell it. Good points: The tax law lets you fix it up, and sell it for a big tax-free profit after two years (if you live in it), then start the process again. Bad points: You may become attached to your investment, and you’ll have to move a lot.

10. Pure speculation. Good points: You can make large profits buying in the path of growth and holding until values rise, and it is a low-management investment. Bad points: Growth in value isn’t always predictable, you have expenses with no income while you’re waiting, and transaction costs can eat much of the profits.

There are many ways to invest in real estate. These ten are just to get you thinking about what is possible, and what type of investing suits your personality. Once you figure that out, you may want to look into other categories of real estate investment.

author:Steve Gillman

Celebrating Successes: The Power Of Compliments

Years ago, when I was new in management circles, a veteran administrator decided to share his self-described secret of success. He said: You have to be careful, Bill. I’ve learned not to compliment my people. Makes them too self-assured, and they get lax in their work habits. Better to keep them guessing.
As I listened, I uttered silent thanks, grateful that Don was a professional acquaintance–and not my boss. Both intuitively and from experience, I knew that managers build loyalty when they celebrate their employees* successes with compliments.

To use a familiar analogy, criticism has the same impact on people that salt does on plants. Stated positively, compliments act as nutrients for people, just as fertilizer does for flowers. Having played golf for several decades, I remember the teaching professionals who helped me the least–and the most. The least helpful were those who spent the whole half hour describing my faults: bending your left arm. . .not enough weight shift. . . tempo is too fast. Jim, my favorite pro, accents the positives: swinging better than last time. . .hit that shot really square . . .now that*s the way to finish in balance. Not surprisingly, I wanted to swing better for Jim.

When I think of compliments, I remember my father’s advice. For forty years, he managed a sizable department store. When I took my first supervisory position in higher education, he counseled me: Bill, one thing I have learned is that workers perform better when we let them know we appreciate their performance. Remember to commend those who do well. Then they*ll keep improving.

During the twenty-three years I spent as a department head, I followed his recommendation. Even a simple comment–You did a good job drafting those letters–boosted morale and cultivated organizational loyalty.
As a communication specialist, there are several tips I will share about using compliments.

Avoid flattery, say no more than the situation merits. While flattery exaggerates our evaluation, the compliment reflects our honest opinion. For example, if you choose to tell an employee that she handled that customer superbly, better than anyone else could possibly have done, she might silently question your authenticity. A more believable comment: I liked the way you helped that customer. I’m sure you made a good impression she will remember. An employee–just like a friend or family member–detects shallow praise. Fortunately, when you have deep convictions about the praise you extend, co-workers will sense your authenticity.

This leads to a second characteristic of a compliment: It sounds realistic. If somebody told me that I am a wonderful dancer, I might laugh out loud. Sadly, so would my wife, who has endured my errant feet for a long time.

Be timely in issuing compliments. We should give the compliment almost immediately after the event that prompts our praise. Imagine that on Tuesday Dorothy makes the biggest sale she has ever made. Clearly, her training has brought beautiful results. Even fellow employees admire her accomplishments with this order. If you wait until Friday to compliment her, you’ve lost a grand opportunity. Give her your attention before Tuesday ends, while she*s still aglow with pride. Try this: Dorothy, I think you noticed that all of us were delighted with that special order you handled today. You’ve made lots of progress, and it shows.
Another tip: Issue compliments in moderation. Managers lose credibility when they praise employees too frequently. Like the most gorgeous flower, a compliment becomes grander with irregular appearance. No, we can’t go as far as my colleague Don, never issuing favorable comments. However, good judgment will help us find the reasonable pacing that works.

Again: Use compliments in proper context. When you tell Fred late in the day that he is one of your most dependable people, your compliment becomes suspect when you add: Oh, by the way, Fred, you*re supposed to have Saturday off, but I*m going to have to ask you to come in then to help us handle those weekend wedding orders. Any time a compliment appears manipulative, it loses force. . .and we lose face.
Yes, compliments can be chancy. Some employees might accuse us of playing favorites, being too syrupy, or trying to win favor for our hidden agendas. Risky, that’s true. . .but worth the risk.

When you become known for offering genuine, realistic compliments in moderation, at the right time, and in the proper setting, you’ll notice your employees responding positively. In fact, they will compliment you for your thoughtfulness and encouragement.

author:Bill Lampton Ph.D.

Borrowing Money to Consolidate Debt

Debt consolidation is usually done by taking out a big loan to pays off other smaller loans. This is called a debt consolidation program. Debt consolidation programs can be very beneficial to borrowers, but may also put you at risk of further debts.

When to Use Debt Consolidation Programs
Debt consolidation programs are good for a few situations. If you are paying several different loans off, your life may be easier if you consolidate everything into one loan. You’ll only get one monthly statement and make one payment. Also, you’ll find that your monthly debt payments decrease if you use a debt consolidation program that stretches your payments out over a longer period of time. This means that you’ll pay out less each month and you can free up some cash.

A tempting (and sometimes successful) strategy is to use a debt consolidation program to manage various high-rate revolving debts. As an example, you might have numerous credit card balances with high interest rates. With a debt consolidation program, you might be able to get a handle on that debt and lower the interest rate that you’re paying. In general, credit cards have higher rates and secured loans have lower rates.

Things to Remember About Debt Consolidation Programs
Using debt consolidation programs can help you or hurt you. You should be very aware that all these programs do is shift your debt – a debt consolidation program does not eliminate your debt. You owe the money and will have to pay it back sooner or later.

One pitfall of a debt consolidation program is that you may feel like you have less outstanding debt. For example, you’ll notice that your credit cards once again have generous amounts of available credit. If you use this credit you’ll only dig yourself into a deeper hole.

You should also be aware that you may end up paying more total interest if you use a debt consolidation loan. If you stretch out your payments over a longer period of time, it is possible that your total interest cost will be higher. Of course, it may be worth it to you if you can more easily manage your cash flow today.

Finally, remember what you’re risking by using one of these programs. Often, you’ll use a home equity loan or a home equity line of credit to consolidate your debt. The consequences of falling off the payment schedule can include the loss of your home in some cases. Credit card companies can’t take your home. However, if you pledge your home as collateral in a debt consolidation program then your house is fair game.

How to Find the Best Debt Consolidation Programs
There are a variety of choices, and you should shop around to find one that fits your needs. If you need some ideas on where to start, try this plan:

• Local credit unions or banks that you already have a relationship with are reliable sources that are likely to give you a fair deal.

• Banks that you don’t already have a relationship with might offer you a good deal in order to win your business.

• Mailers offering debt consolidation programs already want your business – they’ve mailed you an offer because something about you fits into their desired profile.

• E-Lending programs offer increased efficiency and easy processing, but be sure to check the legitimacy of the lender.

In addition to shopping around, you can ensure that you get the best deal by managing your credit. Loans are hardest to get when you need them the most.

author:John Mussi

Be Prepared When Seeking A Mortgage

When you’re looking for a mortgage, whether it’s a first time loan or you’re taking advantage of an opportunity to refinance an existing mortgage, it may seem that you’re wading through a quagmire of uncharted territory. If you’re prepared ahead of time, you’ll avoid some of the common pitfalls and know how to find the best deal for your situation.

Remember that you are the consumer and that you are shopping for a service. That means that you have the right to be treated as a customer. Ask questions and keep asking until you get all the answers you are looking for. If a potential lender is reluctant to spend the time addressing your concerns, you don’t have to do business with that particular company. In today’s market with the opportunities to shop for a mortgage online, finding a lender is the least of your worries.

Look for the best interest rates, but also search for a lender who offers the mortgage without the high closing costs. There are likely to be some requirements for closing the loan. You may be asked to pay for an appraisal, home inspection and even a survey if property is involved in the transaction. Those are fairly standard but be wary of a company that charges a large additional fee for closing costs though you can expect a moderate fee. A lender is a business and as such, is in business to make money. That means that you as the consumer should expect to pay for the service, but comparing fees and interest rates will help you find the best possible deal on your mortgage.

Finally, be aware of unbelievable claims. A company that promises you’ll be approved for a loan regardless of credit is probably making promises that they can’t keep. If you’re asked to pay an application fee with this guarantee, you could be wasting your money. In some cases, the lender will approve the loan, but will make unreasonable requirements for repayment or down payment. If you then can’t meet the terms, the company will have fulfilled their promise - they did offer you the loan. Your application fee is typically non-refundable and you’ve simply lost that money.

author:Mark Lambie