SBR Connections Business Group

2010-04-16T08:21:00.000-07:00

Here is a snippet from my book

MASTER THE NEW ECONOMY

Remember 25% of the proceeds go to supporting kids sports.

"Don't let what you cannot do interfere with what you can do"
- John Wooden

The world today is a far more uncertain place than ever. We are constantly bombarded with negative stories about financial crises, corruption in politics and business, growing unemployment, increased risk of terrorism, increased pollution and global warming.

None of these should be trivialized and many will affect you whether you are considering starting your own business, about to start your first job or are closing in on retirement. It is a fact that there are many things that are completely out of your personal control. It is equally true that there are things you can do and over which you do have control. Concentrating on the things you can influence gives you the ability to compensate for much of the negative. Everything else may seem less overwhelming.

The decisions you make about employment and how you earn a living are specific actions you can take, either to control or to abdicate personal financial responsibility. In the final analysis, the choice is yours.

Financial crisis

“Our love for our children requires that we do not shove today's problems under the rug only to be discovered again tomorrow. Our sense of decency must require that we stop using tricks that will make next year's budget problem even worse.” - Chris Christie – Governor of New Jersey

There should be no doubt in anyone's mind that we are in the middle of a severe financial crisis and that it will, in fact is, affecting us all. It is questionable whether throwing money at the problem will provide a solution or just create a bigger issue 5 years or 10 years from now or just pass a huge problem on to the next generation. Perhaps this time it will be different but history is littered with similar failed experiments.

There are rules for the banks and rules for everyone else. They are not however the same. Everyone knows the saying about the golden rule. "He who has the gold makes the rules". Now here's a well known secret for you. Those making the rules no longer have the gold but for some reason they still get to make the rules. In fact those making the rules are simply printing paper or in the case of the United States are borrowing paper that happens to a have a number stamped on it. A one Hundred dollar or Euro bill is simply a promissory note that allows you to exchange paper for goods instead of carrying around the equivalent value of gold, silver, chickens or turnips. The problem is that the currency is not backed by anything of true value. The US dollar has not been backed by gold since early 1971. The rest of the worlds currencies are tied to the US Dollar. So it doesn't matter where you live, if the US dollar loses value so does the currency in your pocket.

During the last depression Germany attempted to keep its economy afloat by printing money. It did not work and hyperinflation was the result. Today, the outlook is not looking that good either. Wages are dropping but basic costs are on the rise. Young people earning minimum wage are

somehow expected to pay $3,000 per month for a mortgage on a small first home. In mid March 2010, an article by Jeff Rubin in my local news paper warned that “record low interest rates and record high deficits” could not continue for long. Sure enough by the end of March mortgage interest rates began to rise. It is not too difficult to see an imminent collapse in house prices in my home town which up to now has been fairly resilient.

A more troubling trend is that governments start shifting debt. Senior levels of government will attempt to control their deficit by reducing transfer payments to lower levels of government. At every level, services will be cut with local authorities expected to pick up the burden. Ultimately, the tax payer will end up paying for services no longer provided by their government but will do so with expensive after tax income. At the same time many explicit and hidden taxes will either increase or be added to existing services. These are quaintly called ‘levies’ (such as transportation levy, emergency service levy, etc) to pretend they are not taxes.

We are in for a rocky ride unless we have ways of earning an income without being held hostage to the vagaries of the world economy and its influences on our employers.

*** - ***

Change in how business is done

“When the increase in velocity of business is great enough, the very nature of business changes” - Bill Gates

In the late 1990's, Bill Gates predicted huge changes in how businesses would be run. I'd be very surprised however if even he foresaw the scope of change we have already seen and which promises only to be the beginning of what the next few years will bring.

Business occurs at a faster rate every day. Not only is it faster but it is becoming increasingly invisible. It used to be that if you wanted to sell something, then the hours your store could open were regulated by city bylaws or community preferences. Your store may have had to close on Sundays with an additional half or full day closure midweek. Your customers were local, whereas today you can operate a business worldwide from the comfort of your own home; 24 hours a day 365 days a year.

The Internet has already greatly changed how we conduct our daily lives. If you are in any doubt, read 'Grown up Digital' by Don Tapscott. Not only are people using the Internet to conduct their business, they are demanding a say in how business is conducted and in the type and design of the products that are developed. “The customer is king” has never been more true than today.

All of this affects you in ways that are not immediately obvious. What is happening is that because the customer is increasingly driving the rate of change and because the customer wants the best deal. Manufacturing, indeed many service jobs will move to the least expensive sources of labor. A small price or cost of production change might mean the difference between your job continuing in the country where you live or seeing it to move offshore.

It is ironic that in North America we hear people bitterly complaining about manufacturing jobs moving offshore, while the same complainers can frequently be found shopping at Walmart or other discount superstores for the cheapest deals.

The speed with which your job functions change is a large factor in how secure your job really is. As customers demand novel functionality or presentation, you may find yourself in a vulnerable position. The length of the product life cycle is greatly reduced. Even though you may feel secure, your job, even your profession could be reaching obsolescence due to some disruptive innovation just over the horizon. For example, the personal computer killed the typewriter, the DVD became an almost instant changeover from VHS tape and Digital cameras have all but replaced traditional film.

Anyone trying to live a traditional – get an education, get a job, retire – life path may have no control whatsoever over their financial security. They will be completely subject to the rather unpredictable ebb and flow of economic trends. To counter this we must find ways to mitigate the risks of finding our jobs obsolete and ourselves redundant. To achieve that, we have to understand how to survive and prosper in the new economy.

*** - ***

The job security myth

"If you don't run your own life, somebody else will.”

- John Atkinson

The days of get a good education, find a good job and live happily ever after are gone. The new reality is that you will not only have several jobs, you are likely to have several careers. The degree you earned today may be outdated before you've taken off your gown at the graduation ceremony. You will need to invest a great deal of time and effort just to stay current in your chosen field. Education is expensive; ignorance however, may well be ruinous.

Even if you do invest in ongoing education, it may still not be enough. In the early 1980's, I knew people who thought they could create an employment niche in the new word processing field. Within a few months, programs such as Microsoft Word and Word Perfect had made word processing available to anyone who had access to a computer. Those who thought they'd found a career niche very soon found themselves obsolete. Technology has changed the face of many careers. A graphics designer friend abandoned her career, because computers became an essential part of the job. She did not want to work with computers and became a chef and a very good one as it happens. Her original career was completely changed by technology in ways she was not prepared to deal with.

Today I subscribe to a number of online social networking discussion boards. One in particular is targeted to people who find themselves not only unemployed but with their options very quickly running out. A common complaint is that their technical certifications have expired, often after only a few months. Personally, I have significant doubts about any certification that is not only expensive to get but which becomes irrelevant very quickly or because the next “new thing: has arrived.

Nonetheless, this is what employers are demanding and if you are unable to practice your profession for any length of time, the cost of the education needed to stay current can eliminate you from you chosen career.

Investment advisors almost invariably tell their clients to diversify. I’m not convinced but if this is good advice for investing, then surely it is even more appropriate for how you earn your income. It is an increasingly rare person who will not find themselves made redundant or whose job will not be lost due to corporate failure. Being prepared by diversifying and having multiple streams of income will stand you in very good stead when [not if] the day comes that you have to make a sudden career or job change.

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Thanks for reading, please add a comment if you wish.

MASTER THE NEW ECONOMY

Remember 25% of the proceeds go to supporting kids sports.

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I'm not a millionaire - YET!

2009-08-10T16:09:00.000-07:00

The biggest money looser I’ve ever been involved in is expecting someone else to have all of the answers in a “sure fire” web based system. Like so many, when I first started out in network marketing, I looked for success stories, signed up for the courses, sat back and waited for the money to roll, and

"Hello still waiting" ;-)

Now if I were a complete business novice, I might be forgiven for trying something new, but I don’t have an excuse. I’ve run a small but successful IT consulting practice for over two decades, and I should know. In fact I do know that it just isn’t that easy. It took a long time working on small contracts, and working with a variety of clients, until I began to earn the respect and deserve the higher profile projects. So why did I think network marketing would be any different. Here are a few reasons:

1. The product is brilliant

Any company works very hard to brand their product. So the emphasis is always on the quality, the purity, the efficacy of the particular product or service we are selling. We tend to expect the product to sell itself. The problem is that people aren’t really buying the product, they are buying you and me.

2. Impatience

Because we are convinced that what we're selling is the very best thing since sliced bread, we naturally become very impatient with results, if we do not frequently register new customers. Impatience has two effects, one you start looking for effective systems to multiply sales, and in the process, most likely express a certain level of desperation in your sales efforts. Very few people will react favourably if they think they are just part of a system, and a there is nothing sadder than someone desperately trying to make a sale. If you are not confident about selling your product, avoid the temptation of hiding behind internet systems. They are expensive and will do little to improve your personal posture (see article on posture below).

3. I love the products, so why can’t everyone else see the value

This really is a killer, as it starts to eat away at your confidence in the product you are promoting. You start to question yourself. If no-one else is interested, am I barking up the wrong tree. Again if you have doubts about your product, your prospects will pick up on them, and they will not buy from you. The best network marketing companies know that they have to deliver a very high quality product, or they simply do not survive. So if you are with one of the major companies that has been around for a while (I use 10 year as a rule of thumb), you very probably have a good product. However, it is up to you to make sure that you know everything there is to know about your product. The term “Posture” is used to describe why some sales people are successful and others are not. Check out:

Selling Success Depends on Winning Posture - Part I
By Andre Boykin

This is an excellent article and clearly shows how poor sales results are directly related to how your attitude will determine your success.

Make sure you meet often with other associates in the business. Discuss your concerns with them, learn how they handle problems, doubts, etc, and use that knowledge to build your posture. Only then will you be able to speak confidently, which will show in your body language, and start to improve your sales results.

You will find that this is one of the very few situations in your life when it is "All About You"

Is Network Marketing a Legitimate Business

2009-07-23T13:56:00.000-07:00

SBR Wellness is the name I've given my network marketing group. The topics I'll discuss here are those that I've been asked to address over the years I've been involved with my MLM Company, and it seemed appropriate to gather some of our experiences into one place. If you find the ideas useful, let me know, and if you'd like to pass on information that would benefit my group, then I'd appreciate that too.

The first question I’m always asked about MLM is “isn’t that a scam”. The answer unfortunately is ‘Yes’ and ‘No’. Let’s see if I can make that a bit clearer. Type “MLM” into the internet search engine of your choice and you will see thousands of results returned. They will vary from “all MLM’s are scams to “this is the best thing since sliced bread”. The real problem here is the overwhelming information overload. Many people thinking of taking up a part time business will be left no wiser irrespective of how much they tried to read and absorb.

So what is the truth? Why should anyone give up the time, emotional energy and yes some money to invest in a network marketing business? There is no doubt that there are some sharks swimming in the internet ocean looking for people gullible enough to part with their hard earned cash for nothing more than an empty promise. My personal experience is that how a network marketing business is perceived is based entirely on whether the person involved had a good or a bad experience. Apart from some obvious and deliberately dishonest practices, the difference between a scam and a great company is rather subjective; the same company can be called both by two different people with different experiences. That experience in turn depends on a variety of factors –here are a few of my favourites:

1. Do you truly want to be in business for yourself?

Not everyone does, and that is OK. Many people are satisfied with how much they earn the level of responsibility they have to carry, and the relative job security they enjoy. Some jobs, especially the professions are mentally demanding and even if you do wish to dabble in some extracurricular project, the firm may not approve. Getting distracted by your personal business venture may well be a career limiting factor. So if you are not fully committed to being in business for yourself, then save yourself a lot of hassle and don’t get involved. You can always enjoy products as a customer if you like them. However, if you answer is “yes absolutely, I want to see if I can be my own boss”, then make sure you have a very clear picture of why you want to be in business for yourself.

2. What sort of business should I be in?

It really depends on what you are capable of, and how much time you have to learn what you need to know and become successful. However, whatever you decide to base your business on, it must be something you are passionate about. If you are a professional, or have a trade, you may be able to leverage your skills into a solid self employment business. You need to take stock of your skills and abilities to see what you need to learn. You’ll note that I didn’t say to see if you have what it takes. Knowing what you don’t know is the first step, and sometimes the most painful to learn. Being a brilliant engineer does not automatically make you a good warehouse or purchasing manager. I started in Information Technology. However, I doubt I’ll ever finish learning about marketing and sales.

This is where network marketing can really help. I’m tempted to suggest that many if not most businesses fail because the owner and staff spend all their time planning how things will be done instead of actually doing them. If for example you have:

· Little or no experience with inventory.

A good network marketing company will handle all order processing, manufacturing and delivery. You don’t have to.

· No payroll or HR knowledge

Your MLM will handle all compensation payments. You don’t have to.

· No product development background

Find a company whose products are manufactured to very high quality standards, and preferably patented and certified by an independent body. You don’t have to invent your own.

· You know little about managing or presenting to large groups.

You can start small and grow as your ability and confidence grows. Eventually you could reach a size where the company will want to help you produce professional conferences.

Because the company takes on all of the basics, you have the time to focus your time and energy on the one thing that will ultimately make your business a success.

3. Does it involve selling?

Unfortunately this is the one thing that most people hate to do, and which is critical to your success. You have to get out there and sell. This is the point where most naysayers start yelling “Scam”. Are you dishonest?? I hope not. Is the company manufacturing snake oil or unsafe products? Unlikely, if they’ve been around for any length of time. The real reason so many people are uncomfortable with MLM is because their perception of selling takes them way out of their comfort zone. Rather than admitting this, there is a tendency to attack either the messenger (you and me) or the product.

What did you think being in business was all about? Right first time. It’s all about selling. Sure there are other aspects important to a business, but if it doesn’t sell, there is no business. Most people work in a branch or part of a business, very important maybe, but at the end of the day if the sales force can’t sell, then no one will be working there for very long. If I was an employee of a company today, I’d be more than willing to give up 10 to 20% of my salary providing the savings went directly to beefing up the sales division.

So let’s take a look at what selling really means. So many people I approach tell me they couldn’t possibly sell. Yet in the very next breath they tell me about a great movie or restaurant they’ve been to. More often than not, I take them at their word and check it out. In other words, they’ve just sold me. Wait a minute. I thought they just said they couldn’t sell. The truth is that we all sell. Mostly we sell ourselves, every minute of every day of our lives. We want people to like the things we like, to agree with the beliefs we have. We want to be part of a group. Selling is really just persuasion based on trust. If you have recommended a movie to me and I tell you I enjoyed it, you will be much more likely to go see a movie I recommend. The reason is you will be inclined to trust my suggestion because I trusted yours.

Similarly, in order for me to sell you my products or business opportunity, I have to be trustworthy in your eyes. Developing trust takes time, and patience. How we do this in network marketing is by providing information, explaining how it works, giving away free samples, and using the products ourselves. Mostly however, we build trust by listening to what other people’s issues and wants are. Only when we have understood them can we offer our products and services as a potential solution.

People aren’t bad at sales, but bad at listening.

4. How much should I invest?

Any business requires investment. You could invent a brand new product and spend millions on invention, patents, legal ownership structures, and manufacturing before a single item is brought to market. If you have millions to spare, I commend you. The rest of us however, have at least some cash constraints. Franchises are great. They are true businesses in a box, where everything down to the last detail has been worked out for you. The business model is tried and proven (although they were nearly banned). The downside is they are very expensive and simply beyond the reach of most people. Network marketing on the other hand is like a personal franchise, specifically designed and priced for the small start-up or home based business.

How much should you invest? Typically there are several entry levels to any MLM. But for arguments sake let’s assume two. The customer level, usually the least expensive, and the business level, the most expensive. If you are not completely sure what the products and the program are about, then why not start as a customer. Try the products and be sure you like them. On the other hand, if you are ready to use this company and products as a business vehicle, invest at the highest business level registration. The reason is simple, if you intent to build a business, then you must commit to it fully. Being in business for yourself is not something you ‘try’.

5. Isn’t it risky?

The last person to ask me this paused mid sentence to light a cigarette, inhaled deeply, pulling who knows what kinds of poisons into her lungs. “Compared to what” I replied. Show me something that isn’t risky? Everything we do in life has a certain amount of risk attached. How you perceive and manage that risk makes all the difference. I fly small airplanes. You’ll never convince some of my friends that flying is 30 times safer than driving. How do you feel about GM, Enron, and Nortel? These were all companies considered to be the paradigms of business success. If you had a job with one of these companies you were supposed to be set for life. The world has changed. Jobs and even careers are temporary. Being self employed is the new paradigm for job security.

6. What do you get out of it?

Most people who think of network marketing as some sort of scam, probably never get past thinking about the money. If they don’t make some cash in a very short time period, they assume they’ve been duped. Don’t get me wrong, money is important. However, the education you receive along with your personal growth may well prove far more valuable than the pay check. It has been said that network marketing is not so much a business as the world’s best personal development program. You will learn incredible things, not just about how to run a business, but about yourself and the people around you. You will make friends with people whose vision of what you could achieve exceeds anything you could imagine; people who have become successful, not just financially, but in all areas of their lives. You will meet people who have overcome incredible adversity to be where they are today, and who’s main ambition is to help you reach your goals.

So back to the original question is it a scam. I don’t think so, not if you’re careful and do your due diligence before jumping in. I’ve gotten so much out of it beyond a pay check. In my professional career, it is unlikely I would have built the size of organization I have today, or have the incredible support from the people who are above me. If I can pass on even a little of what has been given to me, it will have all been worth it.