Folks,
Y'all understand I am pro-contract, anti-monoply, so I am against "intellectual
Property Rights." By introducing a hong kong style flat, low tax of 13% and
introducing gold coins for trade, Russia is positioning istself to thrive in
ways that
simply does not, can not show up on US policy makers radar.
Now the russians has struck a blow against poverty and injustice by weakening IP
law
in Russia.
http://www.siliconvalley.com/mld/siliconvalley/14178447.htm
John
Saturday, March 25, 2006
All Hail Russian Free Trade
Friday, March 24, 2006
Spiers 1, Ivy League 0
Folks,
A few days ago listmember JGregory asked the list what I do for a living. I
sent it thru with a
view to answering as soon as I got time. (An hour later he said ignore my
question, I just
read your website).
Nonetheless, I’d like to answer the question, even though this listserv is about
all you, not
about me.
First, being self-employed means I wake up every morning unemployed. It is up
to me if I
make any money today, I cannot sluff off and get paid anyway. I look at all the
options before
me today, and I pick and choose.
For example, must be 15 years ago now, more!, I went into a “chatroom” on the
internet and
was insulted by a 14 year old child. It seemed to me a tremendous waste of
technology. At
the same time, I was cutting way back on my teaching at various colleges,
something I started
while in school on a sabbatical from work, and something I had to cut back on at
that time
since I was then building my own business.
it occurred to me that perhaps I could delivery a class over the internet,
using the
chartroom, and downloads with something then called FTP and of course email.
University of
Hawaii developed a online quiz program free to teachers, thank you, which
eventually was
bought by the Discovery channel, and which I still use today. At the same time
Apple
Computer started an online service like AOL called eWorld. I managed to become
a
community conference crewmember, (hence WileyCCC) a staffer, in return for free
access to
the internet, plus insider training on how it all works.
I ran a “chatroom” with the topic of int’l trade, where I fashioned the online
class, and tested
out the systems. After a year or two of this, Apple shut down eWorld, and the
prime movers
created something called TalkCity, a dot.com where I got in at 22 cents and the
stock
eventually hit about $35. I was locked in by insiders rules and as soon the
lock expired I
spent a desperate day working the system to unload the stock and got out at $13.
At any rate, I packaged the class, and went back to the schools that wanted me
to teach but
where I could not give the time, and went thru the process for introducing a
new product I
lay out in my book (in this case a service). I approached the “retailers,” the
schools, they
being my “brand”, and they say “good idea does not exist.” I come back with the
sample of
the service, they said they’d give it a shot, and now I have been teaching a
course online for
over 10 years. i pays a little over $100 an hour, completely self-employed,
working out of
my office at home, which is about 40% of what small biz int’l trade pays. My
“service” has
been exported to over 21 countries. This too I am cutting back on, since there
are just too
many other things I want to do, things fascinating to me. But lifestyle is why
I work, and
teaching is part of my desired lifestyle. I’ll teach on the side the rest of my
life too.
To pick up sales directly off the internet, and to sell other online courses, I
created Seattle
Teachers College, www.seattleteacherscollege.net as an ecommerce site. As i
studied the
requirements for an online ecommerce site selling classes, I was told by a
young, smart very
well-to-do Microsoft retiree it would cost some $800,000 to set up, and some
$100,000 a
year to maintain, if I did it all myself. Sigh, the conservators speak. It
cost me a total of $49
to set up, and about $60 a month to maintain, doing it all myself, using Yahoo
stores. This
has been up for ten years, and profitable since day one. Profitable, but tiny
since I simply do
not have the time, yet, to scale it up. Too much going on.
So there is an example of what I do for a living. I am working on other things
as well, and
from time to time I will package examples of this and put them on the listserv
fileserver.
But I bring this particular activity up because I was not the only one with this
idea. The State
of California founded and funded an online course school, as did a consortium of
Southwestern states, as did AOL and a consortium of Oxford, Standford and Yale.
As I recall,
circa 2000, there were about 200 such initiatives. Also, a tax was put on
communications in
usa to fund more such intiatives. We still pay those taxes, although I believe
Seattle Teachers
College, the only self-supporting noncredit online school is still operating.
I introduced online classes, a new product at some 50 schools in usa and canada.
Bellevue
Community College sought and gaiined an sizable grant to develop online classes
after I first
offered a class successfully through them. I pointed out that the problem was
solved, and
indeed, i offered to teach other rteachers how to teach online. And did so for
a few hundred
teachers, charging each.
I was a founding supporter of WAOE, an org of online instructors worldwide.
Various dot.com were formed to develop a “platform” for delivering education
online and I
would point out that every elements in every platform developed was already
available for
free on the internet, and better since they seemed ot be more robust and by
having different
elements of the class in different places, the entire “school” never crashed at
once.
(remember the good old days of internet crashes?)
Nonethelss, massive amounts of money and revenue flows from new taxes flowed
into “online
education.”
Alllearn, the consortium of Oxford, Standford and Yale has announced they will
shut down
this week. In spite of their prestige and about 11,000 enrollmets each session,
there was not
enough interest to keep it afloat, according to the article.
Now, hmmm, how can you have 11,000 people interested ansd willing to pay and not
figure
out how to make any money. Well, of course, by massive malinvestment in
management, a
policy and strategy which kills business and education in usa. One commentator
mentioned
that Alllearn was all noncredit classes, and therefore could not attract enough
revenue. There
is more money in noncredit in usa than in kindergarten through baccalaureate, so
this
comment is nonsense.
Money is fungible. If the time comes your pension is gone, like the truckers in
the 90’s, the
pilots now, and you are wondering where the money went, here is just one place.
Think of
the buildings built, the tens of millions in content development, the taxes
paid, the
computers, the routers, the aeron chairs, the engineers, the sushi delivered for
those working
late, the celebrations and lifetime achievement awards, all paid for all in this
one area, and all
a complete waste, since none of it ever tested or even considered if it would be
viable and
useful to “customers’.
And government workers have the most of all to fear, who have the most rock
solid plans,
have the most to worry about, since when the government breaks its spending
limits, the
governmnet seizes (borrows, they say) from the government employee unions
pension funds.
They did this last week. They may someday do it and yet not find the Chinese
willing to lend
them the money to pay the pensions back. Then, as one pensioner said to me,
we’ll see what
our pensions bought laying on the ground in Iraq.
Perhaps there is an import of service opportunity here, an advice column from
pensioners in
Russia who are living on $10 a week what with repudiated pensions and inflation.
They know
how to survive.
Now multiply these multibillions in this narrow field of online education times
thousands of
other fields, and the cost of our adventures overseas, and the amounts are
staggering. We
put ourselves at a huge disadvantage worldwide, a certainly undermine any
pretense of moral
authority in guiding other nations, when we behave like drunken sailors who have
broken into
the ships safe and stores and made a night of it.
I do go on, but you asked.
This reply is part of a reply I am composing to Bobbi Weaver’s comments a few
days ago in
which she asserts that entrpreneurs are a different breed of cat, and in part on
Malcolm’s
observation on why people do not start businesses.
So, more to come, referring back to this essay, which I’ll call Spiers 1, Ivy
League 0.
John
Re: [spiers] Re: China and Currency
Re: [spiers] Re: China and Currency
The phrase has an interesting history, actually coming out of the Truman
administration, just
that the hapless Earl butz was caught on tape saying it, doing for Nixon what
Sec. of the
Interior James Watt did for Reagan, always managing to give the game away.
Anyway, big business and big government go hand in hand, what with the
advantages and
efficiencies imagined in collectivization and harmonization. When it comes to
collectivist,
socialist impulses, the democrats simply do not have the chutzpah of the
republicans.
John
On Fri, 24 Mar 2006 13:24:41 -0800 (PST), M A Granich
:
> What is the motive behind "get big or get out"? You
> said it was from the Nixon administration. What were
> they or are they attempting to do? Monopolize the ag
> markets?
>
> Anthony
> --- spiersegroups
>
> > GRP,
> >
> > Let me be clear, I am against either and both items
> > from being exported in the
> > measure they are subsidized or otherwise protected.
> >
> > I have no problem with a farmer in Ghana getting
> > subsidized rice cheap from usa,
> > allowing his fields to go fallow, and turning a
> > profit by selling USA rice to Ghanains,
> > until the USA taxpayers cry "enough" and we stop.
> > Then the same Ghanain farmer
> > resumes selling what he grows. This is non-violent
> > self-defense.
> >
> > But this is not what happens. The US Government
> > policy of "get big or get out"
> > extends overseas as well. The Ghanaians who go to
> > Harvard and receive Harvard
> > MBA's return to Ghana (or whatever country) and
> > enter leading buisiness or
> > government ministries. The set up a system that
> > allows them to buy from and work
> > with the USA Harvard MBA's employed at Archer
> > Daniels Midlands the "supermarket to
> > the world." and in USA government ministries. The
> > Ghanaian farmer cannot get a
> > license to import rice. He is taxed into oblivion
> > to assure he cannot compete with usa
> > rice, which is untaxed. These Harvard MBA's charge
> > a super premium to effect
> > polcies and actions that break the USA small farmer
> > and the Ghanaian small farmer.
> > The USA small farmer gets some welfare. The
> > Ghanaian farmer gets nothing. With
> > kids going hungry, many farmers choose the armed
> > response. (of course you can
> > substitute any number of exported items, countries,
> > and schools, but the general
> > system is essentially the same).
> >
> > So we agree, all subsidize cause direct harm, all
> > restrictions are violent. I am against
> > it.
> >
> > John
> > --- In spiers@yahoogroups.com, grmail@... wrote:
> > >
> > > >
> > > > Exports can be good or bad too... do we export
> > things we made or raw
> > > > materials... of the
> > > > things we made, are the consumer goods or are
> > they machinery and
> > > > equipment? Exporting
> > > > shoes is good, excporting a shoe-making machine
> > is bad becuase its value,
> > > > the ability to
> > > > make shoes, is exported. Exporting subsidized
> > goods is very bad indeed.
> > > > Subsidies,
> > > > currency and interest rate manipulation generate
> > the bad kind of exports.
> > > >
> > > > John
> > > >
> > > >
> > > John,
> > > I kind of disgree with this statement, Its like
> > saying; its bad to sale
> > > John Deere tractor and harvestor to a farmer in
> > Africa, but its ok to sale
> > > ship loads of rice and wheat to that farmer from
> > USA. This defeats the
> > > purpose of famous saying "Don't give begger a
> > ready made food, show him
> > > how to grow food for his long term sustainabilty,
> > so he would stop
> > > begging, stealing and all that he does to survive"
> > >
> > > grp
How Come People Don’t Start?
RE: [spiers] How Come People Don’t Start?
Somehow I missed your initial request for info - but here's another
thought. Most of the reasons people do not start business have been well
articulated by others and they are very valid. However, another approach
is to buy existing businesses. I think there is a huge opportunity with
the aging Baby Boomers who have successful business of all sizes and types
and are ready to retire and get out of it. They have already followed your
pattern of (1) get the orders, (2) find the best agents, sales reps and
suppliers and (3) run the mechanics of the business (paraphrased
obviously). So you are essentially buying their expertise and legwork,
probably along with inventories. The problem is that business advisors and
brokers (and sometimes the owners) have ridiculously high expectations
about the "value" of these companies, thus they are priced at levels where
it is not feasible for someone to buy them and make a go of it for many
years with the high initial costs. They then just have to liquidate the
business as there are no buyers and they get nothing out of it. I think a
happy medium is to pay them a "goodwill" fee but keep it low enough so the
business is still profitable. This is NOT going to be 2-3 times net
earnings, 1-2 times gross or any of the other crazy pricing mechanisms the
brokers advise. These formulas don't account for the fact that businesses
have different margins and expense ratios, and usually don't have long term
sales contracts or a predictable revenue stream. Obviously the right
number will vary according to the business, so I am not suggesting any
magical formula either, but something that the buyer can basically earn
back within a reasonable period of time (definitely less than a year.)
It's not necessarily easy to find these businesses, but we are always
keeping an eye out for something that we are interested in and establishing
a relationship. Even if the people don't want to sell now, they may in a
year or 2 or 3. My husband and I have bought 2 businesses in 2 years so
far and are looking for more.
Merry Kindred
mbkindred@earthlink.net
China and Currency
Re: [spiers] Re: China and Currency
What is the motive behind "get big or get out"? You
said it was from the Nixon administration. What were
they or are they attempting to do? Monopolize the ag
markets?
Anthony
--- spiersegroups
> GRP,
>
> Let me be clear, I am against either and both items
> from being exported in the
> measure they are subsidized or otherwise protected.
>
> I have no problem with a farmer in Ghana getting
> subsidized rice cheap from usa,
> allowing his fields to go fallow, and turning a
> profit by selling USA rice to Ghanains,
> until the USA taxpayers cry "enough" and we stop.
> Then the same Ghanain farmer
> resumes selling what he grows. This is non-violent
> self-defense.
>
> But this is not what happens. The US Government
> policy of "get big or get out"
> extends overseas as well. The Ghanaians who go to
> Harvard and receive Harvard
> MBA's return to Ghana (or whatever country) and
> enter leading buisiness or
> government ministries. The set up a system that
> allows them to buy from and work
> with the USA Harvard MBA's employed at Archer
> Daniels Midlands the "supermarket to
> the world." and in USA government ministries. The
> Ghanaian farmer cannot get a
> license to import rice. He is taxed into oblivion
> to assure he cannot compete with usa
> rice, which is untaxed. These Harvard MBA's charge
> a super premium to effect
> polcies and actions that break the USA small farmer
> and the Ghanaian small farmer.
> The USA small farmer gets some welfare. The
> Ghanaian farmer gets nothing. With
> kids going hungry, many farmers choose the armed
> response. (of course you can
> substitute any number of exported items, countries,
> and schools, but the general
> system is essentially the same).
>
> So we agree, all subsidize cause direct harm, all
> restrictions are violent. I am against
> it.
>
> John
> --- In spiers@yahoogroups.com, grmail@... wrote:
> >
> > >
> > > Exports can be good or bad too... do we export
> things we made or raw
> > > materials... of the
> > > things we made, are the consumer goods or are
> they machinery and
> > > equipment? Exporting
> > > shoes is good, excporting a shoe-making machine
> is bad becuase its value,
> > > the ability to
> > > make shoes, is exported. Exporting subsidized
> goods is very bad indeed.
> > > Subsidies,
> > > currency and interest rate manipulation generate
> the bad kind of exports.
> > >
> > > John
> > >
> > >
> > John,
> > I kind of disgree with this statement, Its like
> saying; its bad to sale
> > John Deere tractor and harvestor to a farmer in
> Africa, but its ok to sale
> > ship loads of rice and wheat to that farmer from
> USA. This defeats the
> > purpose of famous saying "Don't give begger a
> ready made food, show him
> > how to grow food for his long term sustainabilty,
> so he would stop
> > begging, stealing and all that he does to survive"
> >
> > grp
China and Currency
Re: China and Currency
GRP,
Let me be clear, I am against either and both items from being exported in the
measure they are subsidized or otherwise protected.
I have no problem with a farmer in Ghana getting subsidized rice cheap from usa,
allowing his fields to go fallow, and turning a profit by selling USA rice to
Ghanains,
until the USA taxpayers cry "enough" and we stop. Then the same Ghanain farmer
resumes selling what he grows. This is non-violent self-defense.
But this is not what happens. The US Government policy of "get big or get out"
extends overseas as well. The Ghanaians who go to Harvard and receive Harvard
MBA's return to Ghana (or whatever country) and enter leading buisiness or
government ministries. The set up a system that allows them to buy from and
work
with the USA Harvard MBA's employed at Archer Daniels Midlands the "supermarket
to
the world." and in USA government ministries. The Ghanaian farmer cannot get a
license to import rice. He is taxed into oblivion to assure he cannot compete
with usa
rice, which is untaxed. These Harvard MBA's charge a super premium to effect
polcies and actions that break the USA small farmer and the Ghanaian small
farmer.
The USA small farmer gets some welfare. The Ghanaian farmer gets nothing. With
kids going hungry, many farmers choose the armed response. (of course you can
substitute any number of exported items, countries, and schools, but the general
system is essentially the same).
So we agree, all subsidize cause direct harm, all restrictions are violent. I
am against
it.
John
--- In spiers@yahoogroups.com, grmail@... wrote:
>
> >
> > Exports can be good or bad too... do we export things we made or raw
> > materials... of the
> > things we made, are the consumer goods or are they machinery and
> > equipment? Exporting
> > shoes is good, excporting a shoe-making machine is bad becuase its value,
> > the ability to
> > make shoes, is exported. Exporting subsidized goods is very bad indeed.
> > Subsidies,
> > currency and interest rate manipulation generate the bad kind of exports.
> >
> > John
> >
> >
> John,
> I kind of disgree with this statement, Its like saying; its bad to sale
> John Deere tractor and harvestor to a farmer in Africa, but its ok to sale
> ship loads of rice and wheat to that farmer from USA. This defeats the
> purpose of famous saying "Don't give begger a ready made food, show him
> how to grow food for his long term sustainabilty, so he would stop
> begging, stealing and all that he does to survive"
>
> grp
Thursday, March 23, 2006
Self-employment, unemployment and fun.
Folks,
As I keep saying absolutely every field is wide open...
http://tinyurl.com/mwa7t
And apparently whole lotta people at GM are gonna need self-employment...
http://tinyurl.com/ga4kz
(Usually there are such offers to see who they can get to quit easily, then they
fire the rest to
achieve their goals).
and this, and example of what we get when we buy ourselves government, some
people have
fun.
Fun?
http://tinyurl.com/ocja3
John
Wednesday, March 22, 2006
Of Cell Phones, Coca Cola, and Mexico
Re: [spiers] Of Cell Phones, Coca Cola, and Mexico
yes, Bevmo in the Bay Area has big displays of mexican cocacola catering to
people who like
coke the way it tasted in the 1960's, and for mexicans who do not like the usa
taste. Due to
sugar subsidies, we in USA pay 2.5 times the world price for sugar, so we use
corn syrup
which is subsdized too. USA pays the most for everything.
John
>
> Also mentioned about Mexico.....
>
> Evidently there is US demand for Mexican Coca Cola. Mexican Coca Cola
> uses cane sugar as the sweetner, while Coke made in the US uses high
> fructose corn syrup. For Coca Cola aficionados, the Mexican coke
> tastes better. In the Seattle area, I have seen a Mexican restaurant
> selling the classic looking glass bottles of Mexican coca cola.
>
> Anthony
Of Cell Phones, Coca Cola, and Mexico
Just a quick revisit to the recent Cell Phone product idea.....
My work colleague mentioned he needed a super simple cell phone for his
70 year old mother. On a recent trip to Mexico, he saw such phones,
where you can prepay the minutes. Very simple and very cheap. He was
told by the sales person that the phones were not sold in the US
because they can charge more for phones in the US, but needed to add a
bunch a features to justify the higher price. My thought was, Charge
the higher price with less features. It will sell.
Also mentioned about Mexico.....
Evidently there is US demand for Mexican Coca Cola. Mexican Coca Cola
uses cane sugar as the sweetner, while Coke made in the US uses high
fructose corn syrup. For Coca Cola aficionados, the Mexican coke
tastes better. In the Seattle area, I have seen a Mexican restaurant
selling the classic looking glass bottles of Mexican coca cola.
Anthony
Tuesday, March 21, 2006
A 13 Year Old Entrepreneur in the Making
Re: [spiers] A 13 Year Old Entrepreneur in the Making
Ismail...
Great story... I'd quibble with some certain plans, but no matter how it turns
out, she'll learn,
which is more important than make money for her right now... I am afraid
though, she may
find school is interfering with her education and she may quit! Tell her she
can always go
back to school, so not quit work. (Kidding!)
My favorite line could be the 12th thing on your list of what she learned, for
isn't this true of
most fundraising, bottom line?
***got permission from her favorite teacher to sell candies
on school premise as a "fund-raising" activity, but no one bothered to
check out the details of what cause the fund-raising was really
helping!***
John
Not a unique product
Re: [spiers] Not a unique product
I've been to 3 boutiques, who've all said
> "We'd love to see them." To me, this is enough positive
> input to find a student textile designer to make some
> samples.
***the more the better, but the psyche has an amazing sense of timing...***
> But this product is not innovative. It is just a
> wallet, like you get at Macy's for $25, except for the
> quality of the materials and packaging. Is this a
> market I should stay away from unless I can come up with
> an innovative wallet? In other words, is fashion as
> innovation enough?
***Yes, and the customers are the arbitrator of what constitutes "enough".***
>
> I would use this as a test to move into handbags because
> that is where the real money is.
***And they say your second million is easier than the first... so why no go
straight to where you
want to be?***
>
> And John, I haven't started a business because of lack
> of confidence. I remember having a computer consulting
> business and for some reason I never liked charging
> people money, I'd feel guilty. I worry that I would do
> something similar again. I worry also that I don't have
> enough experience to pull this off. The idea of being
> fully responsible for my own success fills me with
> terror and dread--but I'm going to do it anyway.
>
Lance, the two times you actually have contact with the customer... selling,
that is getting orders,
and when your boxes arrive to the customer (shipping)... both of these are
farmed out. Let the
pros handle the high-stress stuff, since the money is in the mark-up and we'd
all prefer to give
our products away and everyone else give theirs away too. That was tried,
didn't work, so money
was invented to keep the freeloaders honest.
John
Not a unique product
Re: [spiers] Not a unique product
You should also consider any importation issues relating to exotic/endangered
species and related tariffs in scoping out this product.
Lance
textile designer,
but I want a reality check first.
I want to import high-end wallets made with exotic
leather. I've been to 3 boutiques, who've all said
"We'd love to see them." To me, this is enough positive
input to find a student textile designer to make some
samples.
But this product is not innovative. It is just a
wallet, like you get at Macy's for $25, except for the
quality of the materials and packaging. Is this a
market I should stay away from unless I can come up with
an innovative wallet? In other words, is fashion as
innovation enough?
I would use this as a test to move into handbags because
that is where the real money is.
And John, I haven't started a business because of lack
of confidence. I remember having a computer consulting
business and for some reason I never liked charging
people money, I'd feel guilty. I worry that I would do
something similar again. I worry also that I don't have
enough experience to pull this off. The idea of being
fully responsible for my own success fills me with
terror and dread--but I'm going to do it anyway.
Thank you for your input. This list is a great
resource.
Lance
Compete on Design!
www.johnspiers.com
Tell me how come?
Re: [spiers] Tell me how come?
Hi John. Im a follower of your group here strictly to try and learn anything I
can about business in general also. I wasn't able to take your class, but
bought your book online and read, well, most of it. May I ask you what you do?
I hadn't seen in any of the emails I read. Pardon my ignorance, and if its not
pertinent and you wish to not reveal your professional self to the class, I
understand. I was just curious, because it seems to me experience is the only
real education, especially when it comes to trying to set up a business, or to
do business for yourself. I like a lot of what you have to say, its
inspirational to me.
Thanks. Jason Gregory
John Spiers
On Mon, 20 Mar 2006 15:55:43 -0800 (PST), M A Granich
:
I’m
> also one of those who “Has an idea”. ... I’m a state employee....
If I hang on for
> another 20 years, I’ll probably live OK on my state
> pension and a few other investments. ..., I keep trying to figure out ways to
> hang on to my day job while trying to get something
> else going. I don’t know if hanging on to the day job
> is wise or possible. Have you or John known anyone
> who has?
Yes, plenty, but they seem to be in jobs where the work is flexible... cops,
teachers, etc... also,
there is the sheer "conflict of interest" types say a city planner to be writing
rules by day and
consulting on how to get around them by night...
You mentioned state pensions... I think there are 2 problems USA faces in the
next 30 years, or
for as long as I'll be lving anyway, and that is China and pensions. Neither
has to go bad, but
the current administration is making a hash of both of these and I cannot see
any democrat
improving things.
I am assuming my 401K, along with everyone elses, and any other "retirement
assets" are all
enron-style messes that will not be there when I ought to be drawing on them.
On the other hand, I think the next 30 years is going to be far more interesting
and lucrative
than the last 30, because I am self employed.
John
Compete on Design!
www.johnspiers.com
Not a unique product
I was about to send off an email to a textile designer,
but I want a reality check first.
I want to import high-end wallets made with exotic
leather. I've been to 3 boutiques, who've all said
"We'd love to see them." To me, this is enough positive
input to find a student textile designer to make some
samples.
But this product is not innovative. It is just a
wallet, like you get at Macy's for $25, except for the
quality of the materials and packaging. Is this a
market I should stay away from unless I can come up with
an innovative wallet? In other words, is fashion as
innovation enough?
I would use this as a test to move into handbags because
that is where the real money is.
And John, I haven't started a business because of lack
of confidence. I remember having a computer consulting
business and for some reason I never liked charging
people money, I'd feel guilty. I worry that I would do
something similar again. I worry also that I don't have
enough experience to pull this off. The idea of being
fully responsible for my own success fills me with
terror and dread--but I'm going to do it anyway.
Thank you for your input. This list is a great
resource.
Lance
Tell me how come?
Re: [spiers] Tell me how come?
> In fact, I keep trying to figure out ways to
> hang on to my day job while trying to get something
> else going. I don't know if hanging on to the day job
> is wise or possible. Have you or John known anyone
> who has?
>
> Anthony
"Moonlighting" is always the preferred way to get started, if you are
pursuing a business where that can work (i.e. can be done part time while
holding a day job). The advantage of moonlighting, of course, is cash flow.
You will not need to eat up savings -- or go in debt (again, depending upon
the type of business) -- while you work toward breakeven . Perhaps even more
significant, is access to reasonable-cost health insurance, and the ability
to get loans (very tough the first three years in a self-employment
situation, without pledging significant collateral.) If you have a cushy day
shop and steady job history, bankers like that.
A situational step up, of course, is a supportive spouse, who is willing to
dig in and support the family, to cut you free full time to grow the
business. In exchange, the carrot for her few years of extra hard work, is a
more lucrative future and flexible lifestyle (assuming you are successful,
sooner or later;-)
I would assume you can moonlight fairly easily in the import-export business
(which I have only dabbled in), so John may suggest a scenario where that
would work for you.
Good luck Anthony! Sounds like you have the entrepreneurial fever.
Don't retire on "Someday Isle". Sooner or later we are all worm compost --
what are you trying to do.... get to death in a secure fashion? The best
time to start a small business is always "RIGHT NOW!". Ready, Fire, AIM. If
you wait until all your ducks in a row and you know EXACTLY where you are
going, the target will have moved. What is your business, and what will your
baby steps be? (Understanding that you will fall down a few times as a
natural part of the learning curve.)
Malcolm
Tell me how come?
Re: [spiers] Tell me how come?
On Mon, 20 Mar 2006 15:55:43 -0800 (PST), M A Granich
:
I’m
> also one of those who “Has an idea”. ... I’m a state employee....
If I hang on for
> another 20 years, I’ll probably live OK on my state
> pension and a few other investments. ..., I keep trying to figure out ways to
> hang on to my day job while trying to get something
> else going. I don’t know if hanging on to the day job
> is wise or possible. Have you or John known anyone
> who has?
Yes, plenty, but they seem to be in jobs where the work is flexible... cops,
teachers, etc... also,
there is the sheer "conflict of interest" types say a city planner to be writing
rules by day and
consulting on how to get around them by night...
You mentioned state pensions... I think there are 2 problems USA faces in the
next 30 years, or
for as long as I'll be lving anyway, and that is China and pensions. Neither
has to go bad, but
the current administration is making a hash of both of these and I cannot see
any democrat
improving things.
I am assuming my 401K, along with everyone elses, and any other "retirement
assets" are all
enron-style messes that will not be there when I ought to be drawing on them.
On the other hand, I think the next 30 years is going to be far more interesting
and lucrative
than the last 30, because I am self employed.
John
A 13 Year Old Entrepreneur in the Making
John,
I would like to share an interesting business story with this group. I
hope this story will bring out the fearlessness of a child in all of
us when we are starting any new business venture.
Last year, my twelve-year-old daughter, Alina, racked up a $500 cell
phone bill. I took her phone away and told her that as soon as she
pays her bill, she can have her phone back.
She had only $200 in her savings account, and earned $12 in weekly
allowance. It would have taken her more than 6 months to accumulate
$300 to payoff the balance amount and to have her phone returned,
while she would not have any spending money during this whole period.
So, Alina and I sat and discussed ways for her to increase her earning
potential. I suggested that she should scavenge for items in our
garage and I'll help her sell it on eBay. Instead, she decided that
since we had a bag of leftover candies in our pantry, she would try to
sell it at her school. She figured that because the school
administration had recently removed all candy vending machines at her
school due to health reasons, some of the students were having sugar
withdrawals and would definitely buy her candies . . . she was right!
Alina's first bag of candies sold fast. From the proceeds, and her
allowance money, she purchased more candies to resell at school and
continued repeating the same process. She regularly surveyed her
clientele to find out what type of candies they preferred to buy; and
found out that they wanted cheap, spicy Mexican candies, and then she
catered to their demand. Soon afterwards, her business really took
off. She paid off her phone bill within a month, and saved enough
money to put towards her travel fund to go to Europe next summer with
her older sister.
Although she got permission from her favorite teacher to sell candies
on school premise as a "fund-raising" activity, but no one bothered to
check out the details of what cause the fund-raising was really
helping! So, she continued selling, until one day when she heard it on
the news that Mexican candies have very high level of lead content and
they are unsafe. Due to ethical reasons, she decided not to sell
Mexican candies anymore at her school, and closed her business.
A few weeks later, Alina took classes at Red Cross, earned her
certification in Adult and Infant CPR, First Aid, Automatic Electronic
Defilibrator (AED), and Babysitting. She named her business Cuddles
Babysitting Service, and posted fliers in our neighborhood. Now she
has a flourishing babysitting business servicing her clients (who are
now regulars), and earns as much in tips as she earns in fees.
From this experience, she learned how to:
1. Buy in bulk and save;
2. Sell to new customers;
3. Conduct customer surveys;
4. Experiment to set market price for products;
5. Package goods (buy 2, and get one free);
6. Filter out slow-moving items from inventory;
7. Avoid stock shortages;
8. Convert one time customers into regular clientele;
9. Have principals and ethics in doing business;
10. Boldly face demise of one business and start fresh;
11. And so much more . . .
However, Alina has come up with a new idea for a food product. She and
I surveyed a few restaurants in our neighborhood and asked the owners
if they'd seen anything like it. They all told us they haven't, but if
we brought it to the market, they will definitely buy it. So, we
researched on the Internet and found a company that sells a
mold-making kit for food items for less than $100. She purchased the
kit and raw material; she is in the process of making prototypes of
her food product. Once she has enough prototypes ready, then we are
again going to survey the market to see if we can secure any tentative
orders.
If the market reacts positively to Alina's prototype, and she secures
a few orders, then I've promised her that I'll invest a few thousand
dollars to have professional molds made, and rent a commercial kitchen
to start production of her food product. She has already selected a
brand name (we are going to secure a trademark), and wants to start a
nationwide public relations campaign to promote herself and her brand
name.
She wants to have a successful PR campaign, and hopes to be called on
Oprah's show some day. She has already met with Nathan Osmond (son of
70's pop star, Alan Osmond, elder brother of Donny and Marie Osmond)
who has promised Alina that if she is successful in her business
endeavor, he is going to write and sing a theme song for her business!
So, let's see how far Alina can go with this venture. She's got a
whole life ahead of her and can afford to make mistakes along the way.
I'll remain her mentor and guide her.
Ismail Zehri
Monday, March 20, 2006
Pier 1 Imports and Cost Plus Imports
Re: [spiers] Pier 1 Imports and Cost Plus Imports
On Mon, 20 Mar 2006 16:38:57 -0000, "mgranich"
> Do Pier 1 Imports and Cost Plus Imports sell products designed in the
> US? What is their business model? Do they use the same process in
> John's book?
>
They are retailers, going back to the '50's and both do everything. they buy
for themselves,
they buy from others, they design their own sometimes... a little of
everything. Back in the
'50's, you could get away with buying a mountain of anything overseas at 10
cents each and
unload it at $5.00 each, just throwing away what diod not sell. Back then
america made
anything anyone wanted, so importing was kind of a novelty item things...***
> And, if you are from the Seattle area.......Does anyone know why
> Trident Imports (was located at Pier 56) go out of business?
***Chuck Peterson started Trident in the early sixties having Cost Plus, a SF
outfit, do his
buying for him... Chuck died about 20 years ago and his kids ran it for a while
then shut it
down, I think the model not working so well as the world changed.***
John
Tell me how come?
Re: [spiers] Tell me how come?
Wow! What a great message Malcolm. A lot of wisdom in
those words. Thanks for sharing your experiences;
I’ll definitely save the message.
As a kid growing up in Missouri, I had quite a few
entrepreneurial experiences. I sold eggs, shoveled
snow, cut grass, I made and sold crafts, washed big
rig trucks for a couple of local moving companies
(built my own mobile pressure washing truck and almost
flunked out of my Sr. year in high school keeping the
biz going. There were several months during the year
I was making more money than my father). But
somehow, as I grew older, I was shanghaied by several
of the poignant reasons you listed in your message;
fear, educational brain washing, being a sheep,
unsupportive spouse, the tire kicker trap…..and I’m
also one of those who “Has an idea”.
I’ve learned to play the “un-entrepreneur” game pretty
well. Currently, I’m a state employee. I feel
comfortable and safe in my position. If I hang on for
another 20 years, I’ll probably live OK on my state
pension and a few other investments. However, I
constantly have a persistent, gnawing, grating thought
that tells me to get out and build a business. It’s
a tug of war between staying in the comfort zone vs
overcoming my fears and other obstacles, and going for
it. In fact, I keep trying to figure out ways to
hang on to my day job while trying to get something
else going. I don’t know if hanging on to the day job
is wise or possible. Have you or John known anyone
who has?
Anthony
--- Malcolm D
> > Anyway, I am curious why people start businesses,
> rather than why not.
> > I'm sure there are all the obvious reasons (hate
> job, need money). Am I
> > the only wacky one that derives the above kind of
> satisfaction from the
> > activity? Since you are in a polling mood,
> perhaps you could find this
> > out, as well.
> >
> > Regards, Paul
>
> Hi, John,
>
> Sorry I did not respond earlier to your request for
> reasons on why people
> don't start businesses. As someone who has been a
> small business trainer,
> and is a certified (NxLevel) business plan
> instructor, I felt the issue was
> so big, and my outlook perhaps a bit jaded, that I
> opted not to play. But,
> since you are still interested in hearing from the
> other 792 of us, I will
> submit a few thoughts.
>
> First of all, I completely do NOT understand why
> everyone does not start a
> business. I am glad they don't... leaves more
> opportunity for me. However,
> since I don't understand why they don't, I may not
> be the best person to
> suggest the reasons why not. I have been a 'serial'
> entrepreneur (not
> 'cereal' entrepreneur like William Kellogg;-) since
> grade school in the
> 60's, when I trapped pocket gophers which were
> damaging alfalfa fields in
> southern Idaho. The local irrigation district paid
> 25 cents per tail as a
> bounty to reduce their numbers, as the loss of water
> to their burrowing
> tunnels was very costly. I made a few dollars a week
> with a trap line before
> and after school, and had more discretionary income
> than a lot of farm kids
> (and we were mostly farm kids in southern Idaho
> schools back then). Over the
> years, when I was guilted into day jobs by parents
> who valued security (and
> died poor) or a spouse and family obligations, I
> still always looked for
> small business opportunities on the side, e.g.
> starting a real estate guide,
> selling at craft shows, organizing BBQs, or running
> a weekend mobile country
> DJ business.
>
> Since I am a classic entrepreneurial personality I
> really do not understand
> why, John. One of the great mysteries of life for me
> is that most people
> claim to want the independent lifestyle of the
> entrepreneur, but so few
> jump.
>
> But to try and answer the question, I guess first I
> would say that while
> anyone CAN start a business, natural entrepreneurs
> are people who see
> opportunity, and do not fit into the slow pace of
> improvement found in a
> "job". We feel constrained by the limits set by the
> dweebs most often
> promoted into supervision and management. Natural
> entrepreneurs leave
> employment for self-employment because the phrase
> "It's hard to soar with
> eagles when you are surrounded by turkeys" is their
> subconscious mantra. We
> see opportunities to do things better and faster and
> with more effectiveness
> and using fewer (or re-applied) resources, while the
> most popular word in a
> typical supervisor's vocabulary is NO! To someone
> who lives under the curse
> of a brain that seeks constant improvement, always
> better ways to do things,
> the reality of management for the sake of control is
> horrifying. (While my
> negative profile of a typical management person is
> not necessarily true, it
> often FEELS true, to a natural entrepreneur.)
>
> I guess the corollary then, is that people who don't
> start businesses often
> work well in the typical organizational system, or
> at least more comfortably
> than they would if they started a business.
>
> Peter Drucker, perhaps the most recognized
> management guru of all time, had
> a wonderful discussion in one of his books on
> management vs. leadership. The
> role of management, he said (if memory serves me) is
> to create order. The
> goal of leadership is to create positive change.
> Both are necessary, but
> also are in natural conflict. True entrepreneurs are
> often great leaders,
> and mediocre to seriously bad managers. However,
> American business,
> according to Drucker, is seriously overmanaged and
> under-led. Hence the
> typical organizational environment does not fit, at
> least in the long term,
> for someone with a leadership compulsion. Also,
> Drucker discusses the
> difference between efficiency and effectiveness.
> Efficiency, the backbone of
> management and corporations, is to "do things right"
> or by the book.
> Effectiveness, often a rare commodity -- and rarer
> as size of the business
> grows -- is to "do the right things". These two
> concepts are also in
> potential conflict, but again, the entrepreneur is
> the rebel who sees an
> opportunity and wants to do the right thing, but not
> be slowed down by doing
> things "right" (a term often mis-used by people in
> management to become
> "doing things the way we've always done them" or to
> just "avoid doing
> something wrong", instead of DOING something right.)
> The 'effective leader'
> and the 'efficient manager' are two VERY different
> personalities, and the
> world of organizations - which is dominated by the
> second type -- leaves
> little room for the first personality to grow. Those
> individuals often leave
> (except among the very best companies) and start
> businesses of their own.
> Usually happier whether successful or not, they most
> commonly reach success
> via a training period of failures as they learn the
> nuances and complexities
> of business, and that a business is simply a system
> of integrated
> sub-systems. The successful business creator is a
> system designer.
>
> Statistically, a person is much more likely to start
> a business if one or
> both parents are entrepreneurs. If both parents
> worked day jobs till they
> died, the children are much less likely to branch
> outside the safety and
> security of a regular paycheck. Much of the reason
> is what is discussed
> around the dinner table. If your parents were
> talking at meals about the
> nuances (marketing, taxes, hiring, firing) of a
> logging business, or a
> baking business, or an export company, this is what
> programmed your young
> minds. If the discussions were resumes, bad
> managers, best companies to work
> for, attending college to get a good job, then the
> programming was
> different. Brian Tracy, a motivational speaker, says
> on one of his audio
> programs that the reason we have fifth and sixth
> generation welfare families
> in this country is because the thoughts of the kids
> are directed from birth,
> on how to milk the government and qualify for food
> stamps, NOT how to be
> productive. It takes work to break the cycle, due to
> the relative
> information void on alternative choices. In the
> 1800s, most of the populace
> were small business owners (or their spouse and
> kids), whether farmer,
> shipper, shop keeper, or whatever. The industrial
> revolution of the early
> two-thirds of the 20th century was when we lost the
> table talk about
> entrepreneurship, and led to the big lie of
> corporate social responsibility
> taking care of you for the rest of your life, if you
> give them 40 years of
> sweat. But those carrots and promises, which mostly
> did not materialize,
> destroyed the entrepreneurial lineage normally
> passed from generation to
> generation. The dot com boom has re-awakened
> entrepreneurship among younger
> people, but as we saw in 2000, the loss of mentors
> in the parental
China and Currency
Re: [spiers] China and Currency
>
> Exports can be good or bad too... do we export things we made or raw
> materials... of the
> things we made, are the consumer goods or are they machinery and
> equipment? Exporting
> shoes is good, excporting a shoe-making machine is bad becuase its value,
> the ability to
> make shoes, is exported. Exporting subsidized goods is very bad indeed.
> Subsidies,
> currency and interest rate manipulation generate the bad kind of exports.
>
> John
>
>
John,
I kind of disgree with this statement, Its like saying; its bad to sale
John Deere tractor and harvestor to a farmer in Africa, but its ok to sale
ship loads of rice and wheat to that farmer from USA. This defeats the
purpose of famous saying "Don't give begger a ready made food, show him
how to grow food for his long term sustainabilty, so he would stop
begging, stealing and all that he does to survive"
grp
Loan for commercial real estate
Re: [spiers] Loan for commercial real estate
Yes... first, there has been an export opportunity for loans, sort of a massive
money
laundering scheme where we subidize ag products, machinery and equipment, and
petrochmicals... and people overseas get them cheap, with USA taxpayers on the
hook if
some biz decides not to pay Boeing.
The reverse is commonly true too... so the best way is to just ask if you want
it for yourself
in importing.
Certainly when Bank of Japan interest rates were effectively zero, plenty of
people were
borrowing at zero and investing in treasuries... which explains much of our
economica
situation, since the Chinese are lending to USA the money for us to buy what the
Chinese
make.
Read Rothbard on "What have the Done to Our Money" as a primer, then check out
forbes,
etc, for specific examples of loans from overseas to usa.
On our level, if we use a letter of credit, getting the supplier to agree to a
time draft of say
120 days is in effect getting a japanese loan for we the usa company.
John
John
On Fri, 17 Mar 2006 10:51:12 -0800 (PST), M A Granich
:
> Is there an import opportunity for loans? Can an
> American approach a bank in India or Japan and get a
> commercial loan? Can foriegn banks loan to Americans,
> or are there laws keeping foriegn banks out?
Loan for commercial real estate
Re: [spiers] Loan for commercial real estate
Folks,
AS you know, I am fairly strict about no "offers to buy" or "offers to sell" on
this list... I want
to keep this list "trade-lead free" since I think trade leads are too bogus as a
way to approach
the biz... Albert's question was technically an offer to buy, but I let it go
thru to see what
technical info we might get back... Albert got back three offers to sell, which
I've caught and
forwarded to Albert alone... and certainly those three received alberts email
and I trust the
parties will continue off-list with the Albert's question.
A side note, if you want to make sure your "offer to sell' gets onto the list,
load it up with
useful inside info on loans, or whatever.
A couple of things I would say: 1. yes, albert, biz loan rates are horrendous,
relatively
speaking, but they are fre market. House loans are much subsidized. Part of
the loan
amount is subsidized with funny interest rates, but the other part is tax
advantage. In
Canada a home loan has a minimum down of 25%, and there is no such thing as a 30
year
loan, 25 years being the longest, since there is no advantage, or point, in
stringing out
interest payments, since there is no tax offset. This makes canadian real
estate, in theory, a
more stable bet than usa real estate, as far as value.
2. Since home loans are much lower, and money is fungible, it is not uncommon
for small biz
people to take out a sat 6% loan on the home, and use the money in the biz,
enjoying a 50%
cut in biz interest rates. Since on your biz loan, the banks will demand a
perfected security
agreement in their "abundance of caution" anyway, making any "incorporation"
safety go away
from the banks point of view, either way your home is at risk, either with biz
loan or private
loan.
3. Why do you need a loan? Do you have orders in hand, right now, signed
purchase orders,
that will cover the suppliers minimum production run, profitably, in a workable
amount of
time? If not, you need no loan. So do NOT get one yet.
4. I'll pick up this thread in response to Granich's question coming up shortly
in another
email response...
John
On Thu, 16 Mar 2006 22:59:15 -0800 (PST), ALBERT SUNG
wrote :
> Hi,
>
> I am currently purchasing a retail building and
> discover that commercial loan is very expensive: with
> 25% down, the interest rate on a 25-YEAR mortgage is a
> whopping 9.5% versus residential loan of 6-7%!!
>
> Are anybody out there kind enough to tell me any good
> commercial loan lender who can give a better rate?
>
> Thank you.
>
>
> Albert Sung
>
Pier 1 Imports and Cost Plus Imports
Do Pier 1 Imports and Cost Plus Imports sell products designed in the
US? What is thier business model? Do they use the same process in
John's book?
And, if you are from the Seattle area.......Does anyone know why
Trident Imports (was located at Pier 56) go out of business?
Thanks,
Anthony
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