Business Lyceum
e-Letter
Practical
Instruction in the Arts and Sciences of Making Money
JANUARY 2002
Greetings & Salutations:
Well ... it looks like we've finished-off another year. --
Time for each of us to begin evaluating what we did, or didn't
do, in 2001 and begin planning for better results in 2002.
No matter how good your business is, if it doesn't do even
better each year, you don't have a "business" ... you
have a "job." Of course, that's okay, too, if
all you want out of life is a paycheck.
A paycheck means never having to leave your comfort zone ...
never risking what you have in order to get what you don't have
... never knowing the sweet smell of success ... never achieving
beyond your chosen "level of mediocrity."
Even if your "stagnant" business is making you a
million dollars a year ...
If Your Business Isn't Growing, It's Dying!
It's only a matter of time. -- Eventually, the lack of growth
will manifest itself in lower and lower profits ... more money
going out to sustain the current level of revenue. Then,
with less profits to spend, revenues will begin to slide. --
Before you know it, your "paycheck" will eat into capital
reserves and your once successful business will be fodder
for the bankruptcy courts. -- Your business will have quit growing
and died.
Although some less-than-bright business writers have (for
more years than I care to remember) advised their readers that
there are...
Two Ways To Get Rich ... Make More Money - or -
Spend Less Money.
That Is "Wage-Earner" Thinking ó
Not "Business" Thinking!
Granted, in order for a 40-hour-a-week salary-slave to improve
their financial position, they must either make more money ...
by getting a pay raise or a better job ... or, they must spend
less of the "salary" they are currently earning.
Either way, their disposable income increases.
In the business community, it just ain't so.
You can get rich by making more money - but ...
No matter how brilliant you think you are, you
will never get rich by spending less money.
Think about it! -- If a wage-earner decides to spend less
money by reducing their living expenses ... monies spent for
food, clothing, lodging, communication, and transportation ...
it doesn't affect their cashflow. Their salary (cashflow)
remains the same. -- Every penny they don't spend becomes disposable
income to save, invest, or use to pay-off old, outstanding bills.
Wage-earners do not spend money to generate income.
Their cashflow is generated by selling their time and skills
to their employer. Therefore, if a wage-earner reduces
their out-of-pocket expenses, the resulting savings go directly
to their bottom line because it doesn't change the
time and skills they are selling.
In the business community, cashflow (revenue) is a result
of spending money ... buying equipment, fixtures, signage, inventory,
packaging, office supplies ... paying for advertising, shipping,
telephones, utilities, building rent or mortgage, postage ...
and, in most cases, paying people to facilitate the warehousing
or stocking of your wares, and the sale and distribution to your
customers. Each cost helps create ... directly or indirectly
... the resulting cashflow.
Unfortunately, all too many small business people attempt
to "make more money" by "spending less money"
in their business without considering what effect it will have
on their revenue. - Why? - Because, most of them, having come
from a wage-earner background, still have a ...
Wage-Earner Mentality
Since they have been told (frequently and repeatedly) that
to "get rich" they either have to make more money,
or spend less, they usually opt for spending less; because it
looks easier than trying to increase the business' revenues.
Looking through their costs, they see some on-going big expenditures,
and, determined to "spend less," they decide to cut
those costs ... just because those costs are obvious. -- Their
wage-earner mentality tells them that, "if we don't spend
that money, it will be ours to keep" (after paying Uncle
Sam his share, of course).
Since they can't cut their on-going fixed overhead costs ...
like rent and utilities ... they usually decide to cut such things
as inventory and advertising. -- After all, "since people
already know where we are and what we sell, why should we spend
all that extra money on advertising" - and - "we've
got enough inventory, I'll just keep the money in my pocket and
reorder when I run-out."
But, unlike the wage-earner environment in which they were
reared, their income isn't static. The "paychecks"
don't just keep coming in ... regardless of the amount spent.
With the advertising expenses cut, fewer people come through
the doors ... fewer sales are made. Or, worse yet, the
people keep coming through the door, but, because the inventory
expense has been cut, they can't find what they came to buy and
don't come back later to look again. -- Either way, the money
that wasn't spent doesn't come back in to be put into the pocket
of the business owner .... unlike the wage-earner's paycheck
that just keeps coming as long as they have a job.
Spending less money might actually allow a wage-earner to
get rich - but - the only way you are going to get rich in a
business of your own is by making more money. -- When a business
owner tries to grow their business by spending less, they inevitably
end up shrinking the business instead ... adding to the business
failure statistics.
Stop thinking like a wage-earner...
Quit trying to "spend less" to "make more"
and figure out how you can "spend the same amount but make
more usable money."
Now, let's do some ...
Questions & Answers, Comments
& Other Good Stuff!
James Wilson asked:
"I've gone through your drop-ship directory and I'm just
having the hardest time finding any food/cookware drop-ship companies.
Outside of selling health related books via drop-shippers, I
would love to sell pies, cheesecakes and fruits via mailorder
but I just can't seem to find any drop-ship companies.
Can you help me?"
Jim:
A sad, but true, fact of life ... most companies that do drop
ship DON'T advertise their drop ship programs. Basically,
it is just something they do while selling and shipping their
products themselves.
Suggest you look for ads offering the kinds of products you
want to sell. Then, contact those advertisers and ASK if
they drop ship their products. -- Or, you might order the product
from them and see where it comes from when you get it.
By the way, MOST companies that produce, sell and ship their
own products will drop ship if ASKed.
Maurice Pickering wanted to know
...
"First off thank you for your e-letter, with all the
b.s. out there it is refreshingly honest. -- I, like many others
I suppose, am trying my luck at starting a web site business.
-- The common problem is getting people to visit you. I
know there's heaps of people who claim to have the answer but
I was just wondering if you could point me in the right direction
to find TRUSTWORTHY advice so I'm not wasting time and money
on rubbish ?"
Maurice:
Your dilemma is the same as thousands (maybe millions) of
webmasters - and - there is no "one size fits all"
answer. -- BUT ...
Let me make this one suggestion. -- DO NOT "buy"
any of the information about getting traffic to your web site.
After spending hundreds of dollars on the latest secrets I have
discovered that the information in the reports you "buy"
is exactly the same as the information you get for "free"
all over the internet.
Just read all the free information you can find about building
traffic to your web site. Then, test, Test, TEST &
Test-Some-More until you find what works for you. -- BUT ...
Don't give up when you only get a few hits from any technique
you use. -- No "one" method or technique will generate
all the traffic you want -- so -- when you do something that
produces a few hits, keep doing it. Then, find other methods
that also produce a few hits. -- After a while you will
have a few hits coming from a variety of methods. -- That's how
I've built my traffic.
Although most of the Internet Gurus lead you to believe there
is, there is really NO "effective" single method for
building qualified traffic. -- In reality, you have to use ever
method that produces just a few responses and just keep adding
new methods ... with each method adding to your total traffic.
Sam Jones had this question
...
"How can I operate as a Real Estate FINDER without a
Real Estate license? -- I'm interested in being a FINDER for
all type's of Real Estate."
Sorry, Sam ...
You really can't operate as a Real Estate "Finder"
without a Real Estate license - however - in my course -- "Finder's
Fees - The Easiest Money You'll Ever Make!" -
-- I tell you how you can get around the licensing requirement
- but - even then, you have to be super careful.
Instead of being a Real Estate Finder, you might want to get
involved in Real Estate using "Options." -- I've done
it ... as have many of my friends ... and I tell you "how"
in my report, "How to Get Filthy Rich Selling Real Estate
You Don't Own!"
Justin B Handley wrote:
"I wanted to get in touch because I have a good friend
who launched a new website that I think may be really useful
for your readers. It is located at http://www.bankhoo.com
and is an amazing new resource to help people find venture capital
investors. You should take a look at it and if possible
I was thinking it would be nice to let all the people on your
list know about it. It also has a great pre-made forms
section that I have found immensely helpful in setting up my
business. Let me know what you think. "
Thank You, Justin ...
I checked it out and it looks right. -- I just told my readers
about it.
Peter Eselgroth wanted a recommendation
...
"I'm looking to supplement a retirement income and my
objective is to bring in about $50k per year. I have purchased
a few of your programs and frankly would like to save myself
the ordeal of trying all your programs, these and the remainder.
My background is project mgmt, but my interests are broad.
Would you be willing to venture a guess on pointing me in a direction
that has a fairly good probability of this level of supplemental
income ($50k), particularly in uncertain economic times?"
Sorry, Peter ...
Who is the most beautiful woman in the world?
Although I have made millions of dollars doing the things
I teach in my reports, there is really no way I can tell you
which one of them would be best for you (without being you).
There are people making $50K (and much, much more) doing the
things I have written about. -- There is even a fellow in Arkansas
knocking-down about $20K per month using my "Get $1,000-$5,000
Free & Clear within 30 days." - >
-- But, there is no way I can get inside your mind to determine
which way would be best for you.
In reality, you can make the $50K you want in any of them.
All you have to do is "decide" what you are going to
do and then do it.
Not much help - but - that is the way life works.
Sony Delgarde wanted to
know how ...
"I like your email very much and I enjoy every question
and answer. These important and wonderful sources of information
help me to know that I'm not the only one. However, I'm
29 and I'm from a French colony ... that means English is my
second language. Besides, l would like to write a Business
plan on Relocation Services and Contractors. I'm not sure
if that will make sense to you (providing service assistance
to people moving to Atlanta, Ga). I speak French and I
understand Spanish very well. So ... would you be able to give
or help me with everything that l need to know, please, everything
that can help."
Sony:
Here's an old trick I learned many, many years ago ...
Find a successful business that provides the same services
you plan on providing. -- Contact them and ask for "information"
about their services. -- Use their information to formulate your
own business plan, sales materials, or whatever.
Hope that helps!
Well ... that's it for this month. -- In order to make every
issue responsive to YOUR needs, please send me your questions;
or tell me what sources or resources you need to build your business;
or give me any thoughts you want to share with your fellow members.
Believe it or don't ... I ain't a mind-reader. -- If'n you
doesn't tell me what you need, I may never touch upon the information,
sources or resources you need.
This is your publication for you to use to your benefit ...
I am just your moderator.
Until next month, keep well ...
J.F. (Jim) STRAW
Not a Money Saver
Thought For The Month!
"Human beings, who are almost unique in having
the ability to learn from the experience of others, are also
remarkable for their apparent disinclination to do so."
- Douglas Adams
Can you stump the old master? --
Betcha can't!
Over the past 40 years (man and boy), I have made bundles
of money in direct selling, service contracting, wholesale merchandising,
entertainment (I was a professional Trumpet player, vocalist
& Radio Announcer), freight forwarding, import/export, retail
merchandising, warehousing, real estate, electronics manufacturing,
finder's fees, closeout merchandising, financial brokerage, business
consulting, steel fabrication, gold and coal mining, offshore
banking, mailorder, writing, and publishing. -- That being the
case ...
No matter what business you're in ... whether you're just
starting, well on your way, or at the top of the heap ... I've
probably been where you are, done what you are doing. -- So ...
Anytime you have a question about 'how' to do something in
your business - or - if you have any comments about anything
I've said in issues of this e-Letter; or if you want to add your
2 cents worth ... just "ask" me or "tell"
me.
Send your Questions, Comments or 2 Cents Worth
to ...
with "Question" - "Comment"
- or, "2 Cents Worth" in the SUBJECT.
If I, personally, don't have an answer to any question you
may ask, I will contact some of the professionals in your field
of endeavor (I will probably know one or more personally) to
get the real 'skinny' for you.
Note: If you want to ask a question anonymously
just tell me so when you send in the question. -- Nobody but
you and I will know who asked the question.
Return to the Archives
Copyright - 2002, J.F. (Jim) Straw. All rights reserved.