Category: Business I

The 20/80 Principle

The 20/80 principle was formulated by Vilfredo Paredo in the late 1800s. It states that roughly 80% of the effects come from 20% of the causes. Say, 20% of the carpet gets 80% of the wear. Or 20% of the customers provide 80% of the profits and so on and so forth.

This is not literal, nor should it be taken as such. I have found, through consideration, that although some people may say that it is true in all situations, I know that it is not applicable all around. One article that I read on the subject stated that 20% of the members of your family give you 80% of the love. I find that as ridiculous as it is untrue. (more…)

Small Business Or Apprenticeship To A Mentor

Should you start a small business of your own right away, or should you apprentice yourself with a minimum wage to a mentor who can teach you the ins and outs of the business world. You should start a small business if you have perfect confidence in yourself and in your abilities. You should apprentice yourself if you think you need more training, have the knowledge and not the know-how or if you feel you need experience.

A mentor shows you how to run your own business. You get to see firsthand how a business is run, and how it works as a whole. You get to observe ideas and processes. It may make you more successful in the long run. You have to think carefully.

On the other hand, if you have your own business, you are independent and can do as you wish with it. You will have an income coming in that is not minimum wage. You would make and sell you own product and have finance and schedule independence. (more…)

TV Hours And The Money Wasted: Is It Worth It?

TV hours are hours that can be used in a more purposeful use of time. If you run a small business, your TV hours are hours that can and should be used to work instead of watch. If you work, you will make millions, yes millions, of dollars. This essay illustrates how much money you could be making at your desk in your business instead of watching TV.

I have calculated that if I watch an estimated seven hours a week, I will lose one hundred and forty dollars a month if I average my time at twenty dollars an hour. I will lose $1,479,919.82 per hour by the time I am fifty-eight if I continue at seven hours a week. Last week I watched five hours of television. Most of that was news. Some of it was movies. My cable television consists solely of news and sports. My movies come from places like Amazon. I do not watch shows and comedies, etc. that many teens watch. Most teenagers watch an average of twenty-two hours a week. This is proven. If that continues, they will lose tens of millions of dollars by the time they are twenty-three. I am way below average. I will not lose that much money because I do not watch a lot in the first place.

Some teens watch thirty-five hours a week, or twenty-five, or maybe forty. It depends. You can calculate your own cost of time, and how much you will save by cutting down on your TV here: Compound Interest Calculator. Estimate your time at twenty dollars an hour, multiply that by your hours of TV and enter it in the Current Principle bracket. Enter the same amount in the Monthly Addition bracket. Enter forty-five years in the Years to Grow bracket, and ten percent in the Interest Rate bracket. Put in the number twelve in the Compound Interest __ time(s) per year bracket. This will give you your amount.

So you ask yourself: Is it worth it? I say no. You might say yes, out of the excuse that you like it, do not know how to give it up, etc. I say it is a waste of time that could be spent in doing something else. My time-waster, instead of television, is books. I read and read and read at least two hours a day, sometimes four, sometimes six. Although you might say, “That’s not a time waster!”, too much of a good thing can become a bad thing. (more…)

My Method of Goal-Setting

To organize and keep track of my goals, I use 3″x 5″ note cards and a pen. I keep them loose in a wallet and look at them whenever I need to remind myself of my goals.I use pen and paper versus an electronic app, because I find it handier, and quicker and much easier to manage.

The note cards are divided into three sections. The first is short-term goals, the second is long-term goals and the third one is my financial goals.

Within the short-term goal section there are three cards named “One Month,” “Six Months,” and “One Year.” In the long-term section there are four named “Two Years,” “Three Years,” “Four Years,” and “Five Years.” Inside the financial goal section there are five named “Two Years,” “Four Years,” “Six Years,” “Eight Years” and “Ten Years.”

Within these time brackets I list my goals for the upcoming months and years. I also keep in mind what my very long-term goal will be and that is my job and my calling. I know what they both are, and I know what I want to accomplish. That is my ultimate goal.

Why Would Running Your Own Business Guarantee Your Employment in 2030?

Why would running your own business guarantee your employment in 2030? It can guarantee your employment because you cannot be replaced. You have made yourself un-replaceable.  You cannot be replaced by a robot* because you are unique. And your business is unique.

You are the head of your business. You make the choices. You decide who you fire, and who you do not fire, including yourself. You are the employer, not the employee. In that position, you have power. Power over your employees. You are their boss. You can fire them. They cannot fire you. Robots cannot replace you unless you so wish it. (more…)

What, According to Harry Browne, Is The Number One Duty Of A Salesman?

The number one duty of a salesman is to serve the customer. Serve the customer above all else. Here are the steps for a successful sale:

  1. Humor the customer. Do not ramble on about your product’s benefits. You will lose him if you do that.
  2. Find out his problem. Let him talk about himself, about his problem.
  3. Verify that you know what his problem is. Ask.
  4. Tell him that you know you can help him. Now is the time to tell him about your product.
  5. Elaborate only a little. Tell him about the virtues of your product. Tell him how your product can solve his problem.
  6. He will agree. You have sold him on the idea.
  7. Close the deal. Have him sign on the dotted line.
  8. You have sold him the product. You have your commission. He has his product.

This is the process by which you can sell something. This is the number one duty of a salesman. Serve the customer. That is the secret of selling anything.