Business Lyceum

e-Letter
Practical Instruction in the Arts and Sciences of Making Money


Editor/Publisher:  J.F. (Jim) Straw

MAY 2004


Greetings & Salutations:

Did you eat today? -- Are you wearing clothing? -- Do you have a place, out of the elements, to sleep tonight?

What more do you need ... today?

You may want a ho'bunch of other things - but - all you need to survive TODAY is Food, Clothing and Shelter.  Nothing else is necessary to your existence TODAY!

It doesn't even matter how meager your meals may be; or how ragged your clothing; or how dilapidated your housing ... you will survive TODAY, won't you?

As a matter of fact, even if you don't eat today, the clothing you have is insufficient to keep out the elements, and you have to sleep under a railroad bridge tonight, the chances are, you will survive ... at least until TOMORROW.

Think about it!

I'm not kidding. -- Stop for a moment and think about it!

Okay!  Did you think about it?

What do you think that has to do with making a fortune?

Once you finally realize that, no matter what, you will survive TODAY, you will be prepared to spend the "time" necessary to get all the other things you want ... enough "time" to succeed, even make a fortune!

Last week, when I noticed the dogcatcher circling the block around my office, I sneaked out the back door and went to the barbershop for a much-needed haircut. -- As I waited for Jack (my barber) to lower my ears, I noticed a new witticism posted on the wall behind his barber chair.  It read:

"Why is there NEVER enough time to do a job right but always enough time to do the job over?"

Later that same day, one of my readers called. -- He had called before ... some four months ago ... seeking my help.

When I had first spoken with him, he was looking for an investor ... someone to put-up at least $250,000 ... to expand his business. -- He was willing to give-up 25% to 30% of the business to the investor.

His business was grossing just over a million dollars a year but, due to his highly leveraged financial position, profits were thin and overhead was high. -- The $250,000 would allow him to reduce his overhead costs at least 30% and increase his spendable cashflow, by eliminating a sizable portion of his high-interest debt service.

As I always do, I asked him to send me the same information he would provide to an interested investor. -- It arrived the next day by FedEx. -- Within an hour after I received the package, he was back on the telephone asking if I had received the package  - and - if I knew an investor who would be willing to buy into his company ... today!

Confirming that I had, indeed, received his package, I told him I would call him back as soon as I had some time to review the information.

After reviewing all of the information he had sent, it was obvious to me that his company was perfect for the Small Corporate Offering Registration (SCOR) program.

I won't go into any detail here but, under the S.E.C. approved SCOR program, small companies can raise up to $1 Million per year without going through the full-blown Initial Public Offering registration.  And, if the company is raising less than $500 Thousand, the company doesn't even have to provide "audited" financial      statements.

Before I called my reader back, I did a little checking and found two reputable promoters who were doing SCOR offerings. -- When I called him, I gave him a brief overview of the SCOR program and the names, addresses and telephone numbers of those two promoters.

Within a couple hours after I talked with him, he was back on the telephone with me. -- He had talked with both of the promoters I had referred him to and had called back to tell me it would take 3 or 4 months to put a SCOR program together for his business.  Then, he wanted to know ...

"Isn't there a faster way?"

Even after I explained to him that a SCOR program offering was probably the best way to get the financing he needed ... even if it did take 3 or 4 months ... he still insisted that he needed a faster way.  So ...

I told him that the only way I knew that might be faster, would be to run a classified ad in the nearest metropolitan newspaper seeking a Private Investor.    -- I suggested a possible ad ... one that has proven effective in the past ... but warned him that it might take just as long (or longer) to find an investor that way.  Then again, he might just get lucky and find an investor right away - but - if he didn't find an investor within the next 30 days, he should go ahead with the SCOR program.

He telephoned me last week ... after four months ... to tell me that he had been "using my advice."  He had ran a classified ad in a number of nearby metropolitan newspapers - but - he hadn't, yet, found the investor he needed. -- He just wanted to know what he was doing wrong.

I had to bite my tongue to keep from biting his head off.

Believe it or don't ... he hadn't even realized that it had been four months since our last conversation.  He had taken my advice about running a classified ad seeking a Private Investor but, once he got started in that direction, he had completely forgotten my advice about the SCOR program.

He had survived for four months without the funding he absolutely needed right away. -- Had he followed by original advice about the SCOR program, he probably would have already had his funding.

After our telephone conversation last week, he is going ahead with the SCOR program ... four months late; with another 3 or 4 months to go.

See what I mean?

But, instances like that are in the minority.  The majority of the questions I field are about "marketing" ... mailorder and otherwise.

At least once a week ... usually 4 or 5 times ... I am asked for advice about "selling" a product or service.

When I am asked about marketing or advertising for any kind of product or service, my first response is to direct the inquirer to those "tried and proven" methods most commonly used to sell that particular kind of product or service.

If, as is most often the case, the product or service is to be sold by "mailorder," I recommend either a directed mailing to a 'list' of people who have purchased a similar product or service - or - a two-step campaign using a lead-generating classified ad (or small display ad) in publications whose readers either need or want the product or service being offered.

Then, of course, I explain that no matter what method they choose to employ, they must ...

Test, TEST, Retest, and then Test Some More

 ... until they find the lists and/or publications that work best for their particular product or service.

Sometimes, the inquirer actually gives me time enough to give them a brief explanation of 'testing' methods.

Invariably, though, the final response is ...

"Isn't there a faster way?"

Or, over the past three years ...

"Wouldn't it be faster to use the Internet?"

My response is -- YES! -- there may well be "faster" ways ... you might even find a way to use the Internet effectively to market your wares - but - even that will required that you test, retest and test some more, until you find something that works for you.

Just like finding the right publications ... magazines, newspapers, newsletters ... you will have to test, retest and test some more until you find the websites whose readers either need or want the product or service being offered.

All too often, the inquirer goes away disappointed or, worse yet, they end the conversation with something like ...

"I thought you were supposed to know how to do it."

But, they don't know ... as you do ... that the ONLY thing that separates the successful, professional marketers from the willy-nilly amateurs is TESTING ... and testing takes time.  As a matter of fact, most of us don't really know any more than you do ... we just keep on "testing" long after the amateurs have quit.

Over the past 40 odd years (man and boy), I have observed that very, very few people really 'fail' in business - but - over 90% of them 'fail to succeed' in business.  And, even the majority of businesses that do achieve a modicum of success ... at least enough to pay the business owner more than a living wage ...  never reach anywhere near their potential.

Why? -- Because most business people ... not just beginners ... for reasons far beyond my ability to comprehend, will willingly spend ten times more time looking for a 'shortcut,' than going ahead and doing the job right the first time.

But ...

Every Business Success Happens Exactly The Same Way

In every case, a successful business is built and grows when the business owner ... after all the planning, testing, replanning, retesting, planning some more, and testing some more ... finally finds that one (just one) product, method, service, idea, or technique, that produces a profit.  Then, they just do the same thing over and over and over ... again and again and again ... until they have made their fortune. -- It only takes ONE successful idea ... duplicated over and over ...  to get rich.

It can happen to you in your business ...

You just have to survive until you find what works for you - and - all you need to survive TODAY is Food, Clothing and Shelter.  Nothing else is necessary to your existence TODAY! -- So ...

How many days can you go without eating before you really starve? -- How many days until you have to go naked, or sleep under a railroad bridge?

Think About It!


Now, let's do some ...

Questions & Answers, Comments & Other Good Stuff!

Anony Mouse wanted to know what  I would do ...

"Noticed your line about questions in the recent e-letter and thought it would be great to get your input. -- I have a question about mail-order.  It may actually be impossible to answer (probably is) but I'll ask anyway. -- If you do a price-drop mailing to existing buyers of a product ... what sort of revenue would you get (generally) in comparison to the 'full-price' mailing? -- By way of example, let's say you mail your existing customers with a product priced at $200. -- 10% buy it.  Then ... once you've 'milked' those customers ... you mail the remainder with a reduced (e.g. scratch-n-dent) offer ... with the same product ... for only $100. -- Would you get anywhere close to the original 10% that bought first time (i.e. half the revenue again), or would it be a lot lower than that?  (e.g.10% buy at $200, milk those, and then remail and get only 3% for the lower-price?) -- I know this is probably impossible to answer but I thought you must have some sort of experience with this kind of thing. -- I'd really appreciate your input."

Mouse:

You guessed it ... ain't no right or wrong answer.  The only way to tell for sure is by testing, Testing,  TESTING and Testing Some More -
but ...

From my own experience, I  have found that lowering the  price like that usually causes hard feelings among those that bought at the
higher price (they will find out; don't ask me how, but they do).  However, in those  cases, the lower price usually doesn't pull very well
because the customers think; "If you can lower the  price, it can't be worth  it."

Here's how I would do it ...

Let's say I have the same 10% response at $200 ...  after getting all  the orders I could  at that price,  I would put out another mailing at a
price of $275. -- Would probably get a few orders at that price - BUT - amazingly, a good  many of the  people  who didn't buy at $200 the
first round will find that old mailer and order at the $200 price (they think they are beating you out-of $75). -- Works every time.

Try it that way ... it  might just amaze you.


Steven James wanted you to know...

"You can earn how to trade the FOREX market from your own home at your own pace."

Just in case you didn't know,  FOREX is the Foreign Exchange market. -- I have traded it successfully some years ago ... it is a viable way to make money; as long as you know and accept the risk.

Check it out at:

http://betterways.fxtrainer.biz


Codrut Turcanu just wanted to tell me ...

"I just finished reading your eBook: 'HOW You Really Can ... Make Your Internet Fortune As An Affiliate Marketer! Without "selling" Anything' and I must admit it is the most practical eBook I ever read about Affiliate Marketing ... it's so well written that even a 12-year old person could use the info and apply to generate income on the Internet. -- I learned the real TRUTH about this Affiliate Marketing Business and I'm going to put it into work! -- JOB well done, Jim!"

Thank You, Codrut ...

I greatly appreciate your kind remarks.  Use the information in  good wealth.

Anyone else interested in  making money on the Internet? -- If'n you are, check it out at:


Jacqueline Corbett asked me a bunch of questions ...

"My partner Dave and I are loyal readers of your newsletter. -- Are you familiar with the Financial Freedom Society memberships as marketed by Retire Quickly? -- Are you familiar with the NEW "Partners in Philanthropy" program as a way to market memberships in Financial Freedom Society via "alliances" with nonprofit orgs? -- Are you familiar with other aspects of the new "Alliance Selling" that lets you work with businesses and financial advisors... etc... to market memberships in Financial Freedom Society in a "wholesale" manner to these target groups? -- I have set up a site to do it.  Please go there and take a look ... see if your hair doesn't stand on end after you've read and digested everything you find there."

Thank You, Jacquelin - but ...

Right now, I just ain't got the time  - so,  I'll tell my readers about it and let them look at it for me.

http://www.permanentfundraising.com


Robert Newton needed to know ...

"I purchased an ebook about producing free accident guides for lawyers.  The short story is that you approach lawyers and offer to produce a certain number of guides for them free. You then get a list of their contacts who would be the prospects to pay for some advertising in the guide.  The lawyer would write you an introduction letter to the prospects to help you convince them to advertise in the guide. Do you have experience in this type of business idea?  Any pointers, tips or missteps that could guide me in making this happen?"


Robert:

Yes ...  back in my younger days, I did some  similar "sponsored" promotions.

Not much to it.

With the Lawyer writing the letter of recommendation, it should be fairly easy to sell the ad space.


Last month ...

Sam needed to know ...

      "I must acknowledge your effort in information dissemination.  Thanks a lot for the good work you are doing.  Please, I need
      your help. -- How can I possibly acquire a credit card to enable participate in the good programs you've brought my way. -- I
      live in Africa and there are no credit cards available here yet."

I told Sam ...

I would suggest that you open a bank account with a major International Bank and use that account to get your Credit Card through them.

An International Bank that does have operations in  Africa is CitiBank ... http://www.citibank.com -- When you get to their site, on the
right hand side, you will find a pull down menu of the countries in which they have operations.

WELL ...

EliaHu tells me  ...

"To your info the citibank does not open U.S. bank accounts  from out of the U.S. countries. -- They do open accounts for NON U.S. citizens when  they do it in person at U.S. branches. -- However the CHASE bank does open accounts online to non U.S. citizens, with a minimum of 100$ balance."

Okay, gang ...

If you  happen to be; or know, a non-U.S.person who needs a bank account in the U.S. to get a credit card, check it  out at:

http://www.chase.com


Linda Caroll is doing another  "makeover" ...

"I'm not going to try to stump you...  I quite enjoy Business Lyceum, so thanks for the great job you do with it. -- I'm writing to let you know about a new site that your readers may enjoy. -- A couple of summers ago, I ran a "boring business card" make over event.  Small business owners that weren't getting much response to their cards were invited to send them in, and we'd pick the worst five and give them a free make over.  The event went over really well, and was covered by the New York Times.  -- In conjunction with Mike Winicki's Small Business World Newspaper - the make overs are back!  This time, we're offering to make over the worst business cards AND display ads that didn't get good response. -- Your can enter to win (free) at my site. -- The site is a little tongue in cheek, but is getting fantastic response already. -- Thanks, and keep up the good work."

Okay, gang ...

Get your chance for a business card makeover at ...

http://www.AdsThatSuck.com


I would almost be willing to bet that, right now, you have one of the most powerful advertising tools in the world in your pocket - but ...


I would also be willing to bet you don't even have the foggiest idea how very, very powerful it really can be.

What is it?  What is it?

Believe it or don't, it is your Business Card. -- That's right, your Business Card is one of the most powerful advertising tools you have - but - 99 out of 100 business people use their Business Cards the wrong way.

This contact just sent me a copy of his book, "How To Use Your Business Cards For Success."  It's short but, like dynamite, it is a small package that packs a powerful message.

In "How To Use Your Business Cards For Success" you can learn how use your Business  Cards to ... reduce your operating expenses fast ... increase your sales & profits ... build tremendous personal prestige ... no matter what kind of business you're in. -- "How To Use Your Business Cards For Success" teaches you how to eliminate the biggest mistake made when handing out your Business Cards ... what to say & do when giving a card to someone ... places to leave cards that can generate instant sales ... why color is important ... how to use cards to enhance customer benefits & lower general operating costs ... with four significant facts of selling & how they relate to Business Cards & examples of successful cards. -- This is one book every business owner should have - because - almost every business owner has a Business Card (they just don't do anything with it).

"How To Use Your Business Cards For Success" is only $19.95 directly from the author ... it would be cheap at 10 times the price. -- Order your personal copy, today. -- Contact:  G. LEE MIKULES, P.O. Box 864, Manitou Springs, CO  80829 -- (719) 577-7747 -- OnLine: http://www.BusinessSuccessNow.com


Here's a unique site I just found ...

http://jp.l-o-c-a-l.com

Check it out.


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
Grande Panjandrum


Thought For The Month!

"All the troubles of man come from his not knowing how to sit still." -- Blaise Pascal


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.


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