In a message dated 9/13/02 1:16:32 PM, moodkini@earthlink.net writes:
<< > Very tastefully put - nice essay, what made
> your write that??.
>
> >
> ***A desire to address common questions, even
> if they strike me as odd...
> pluys I am groping towards the pricing issue...
> we have trailing indicators
> of the going price of our goods (the NTDB info
> and the Key Biz Ratios book),
> but we are price leaders... and that aspect
> I've been missing. So, I took a
> week long econ seminar in Auburn Alabama this
> summer and they addressed this
> issue... truth told, I did not understand what
> they said, yet, but I am
> pretty sure they got it right. More on that
> later.***
>
>
> > Since your class I have spent two years
> developing my product, with the
>
> help
>
> > of an overworked gentleman in Taiwan.
>
> ***Excellent...***
>
> I haven't made a buck yet AND I know
>
> > that's coming. More importantly for me thus
> far, is the enjoyment I have
>
> > received from this latest project, the way
> people to help walk up when I
>
> > need it and the satisfaction in visualizing
> my success.
>
> ***See how quickly you form your own "world
> trade association"?***
>
> I anticipate next
>
> > summer you may hear more about the moodkini
> and maybe some of the other
>
> > great ideas that have come about since my
> imagination started working
>
> again.
>
> ***I can hardly wait...***
>
>
> > Now you tell me I'm gonna make $250/hour!!!!!
> WaaaaHooooooooo.
>
> >
> ***Keep track of the hours you are working, not
> including the hours you are
> visiting museums and having clothes
> tailored...***
>
>
> > Still have a homebrew waiting for you in Las
> Vegas
>
> >
> ***Now, this is why I teach...*** >>
John
Friday, September 13, 2002
Re: spiers] Captured by $250/hour
Thursday, September 12, 2002
Captured by $250/hour
Folks,
Perennially people ask how much can one make working self-employed in small
business international trade. Those who have recently taken my seminars may
recall I've said one makes about $250/hour, and it should not cost more than
$100 per month and take more then 9 months to get to the point where you know
whether or not you have enough orders aggregate from customers to cover the
suppliers minimum production run in a workable amount of time, profitably
(say $250/hour). And I say if you are not within these bounds, something is
wrong and please check in for review.
Now, the $250/hour is supposed to be a kind of Zen koan, to throw you off the
wrong track and get on the right track. I picked it some what intuitively,
guesstimating what my bosses and I make.
(And people ask do I make more teaching or trading... well, I make $250/hour
trading and $100/hour teaching. So that is simple, but the real bucks are in
consulting, which is over $1000/hour. Except I cannot stand consulting
unless the project is extremely interesting and relates exactly to what I am
now working on... which means I turn down easily 99% of consulting offers and
do a little less than every two years.)
Also, please know I find all this talk of "how much can one make" repellant
since it is impertinent and unseemly, and seems to be bragging. But if I can
cover this topic from one more angle, I think I can wrap this up into an
essay and leave it as an item to which I can refer those who seem stuck on
money.
Here goes:
Once your company is up and running, and you are getting lines of credit from
banks (against which you open letters of credit to suppliers), you will
yearly visit your banker to review your banking relationship. Your credit
lines will be changed as warranted, and the banker will secure all of your
personal assets, etc, as outlined in my book.
As a side note, since money is fungible, and small business loans are at say
11%, and home loans are at about 6%, many businesspeople take out large loans
on their homes at 6% and use the money in the business, saving 5 whole
points. Since profits are on the margin, the difference in a business that
carries inventory having to pay only 6% interst instead of 11% shows up as
profits, going straight to the bottom line.
Of course, since almost no one gets a mortgage anymore, merely a deed of
trust, no home is safe from a bank anyway (again, making nonsense out of the
claim one incorporates to protect one's home and private property).
I mention this because it is common practice today, but in any event, as
banks establish lines of credits with businesses they take an "abundance of
caution" which as a practical matter means your personal assets cover the
banks risk.
Further, the bank lays down your salary, to assure they can watch how much
cash you take from the business. usually, this is a non-issue since very
many small buisness people, on advice of their CPAs, take a very small salary
to minimize loss through taxation.
Having said all of the above, I did a quick calculation of one business
owner, after 25 years in business... his salary was about $100,000 per year,
and I estimated he worked about 400 hours per year at the business, the rest
of the time he was busy about his other interests.
Guess what 400 hours into $100,000 equals? $250/hour. Now, of course, his
$5 million a year in sales business is turning net profit of $500,000, but
that belongs to the company (which he owns, but it is not what he is paid
for his work, it is an appreciation on his investment).
This net income on his business is no different then money he makes on his
stocks or his real estate. He may decide to work more hours, and no doubt
they would generate more $250/hour income, but he simply does not choose to
do so.
So, thank you for enduring this crude and distasteful topic, but I think
there is something to learn about the reality of the biz from this
exploration.
John
Hi
Re: [spiers] hi
Yes, I am happy to issue a certificate to anyone who requests.. but your
request must have exactly what you want the certificate to say and a mailing
address. Without both I cannot comply.
We in USA are blessed with something they have no where else, and that is
NonCredit education. This class is an example of that. Therefore, although
you may have enrolled through a school, there is no record nor credit of this
class or your participation.
Finally, the course is to learn how to start a business, not get a job. So
any effort I make will be along those lines. Apply what I taught and neither
you nor I will ever need to speak to an employer!
John
In a message dated 9/12/02 6:59:55 AM, san_24_24@sify.com writes:
<< HI John Spiers,
This is sangeetha. I have done "trsding world wide in nine
weeks " course under your guidance. I would like to know whether you provide
any certificate for the course. and i would request you to provide me your
phone number so, that i can speak to you in detail.
I have applied for few jobs. some jobs have requested me to provide
with the college name and the instructors phone number , just for reference.
so, i would request you to provide me your phone number as soon as possible.
thanking you,
with regards,
sangeetha. >>
Hi
RE: [spiers] hi
The idea for this class is to be able, upon completion, to begin one's own
business in world trade...not work for someone else. I saw no indication of
a certificate or anything else awarded upon completion. The big reward is to
go forward and build your own business and be successful! It appears that
some people will always be satisfied with working for a "pay check" and
being at the mercy of others. Work for someone else, make them money. Dare
working for yourself, make your own money...hire someone to work for you,
let them make you money! What do you want life to hand you? A job or a
busines?
-----Original Message-----
From: sangeetha [mailto:san_24_24@sify.com]
Sent: Thursday, September 12, 2002 12:41 AM
To: spiers@yahoogroups.com
Subject: [spiers] hi
HI John Spiers,
This is sangeetha. I have done "trsding world wide in nine
weeks " course under your guidance. I would like to know whether you provide
any certificate for the course. and i would request you to provide me your
phone number so, that i can speak to you in detail.
I have applied for few jobs. some jobs have requested me to provide
with the college name and the instructors phone number , just for reference.
so, i would request you to provide me your phone number as soon as
possible.
thanking you,
with regards,
sangeetha.
Hi
hi
HI John Spiers,
This is sangeetha. I have done "trsding world wide in nine
weeks " course under your guidance. I would like to know whether you provide any
certificate for the course. and i would request you to provide me your phone
number so, that i can speak to you in detail.
I have applied for few jobs. some jobs have requested me to provide with
the college name and the instructors phone number , just for reference. so, i
would request you to provide me your phone number as soon as possible.
thanking you,
with regards,
sangeetha.