Monthly Archives: February 2016

What is the Best Way to Invest and Grow your Money ?

money

When thinking of business and investing, I began to look for find the right step for me to start doing. Then I found the article investments from a website, and I’ll share as below, may be useful for all of us, and success in business and investing in particular.

I remember reading Tina Sellig’s (executive director of the Stanford Technology Ventures Program) book- What I wish I knew when I was 20. (I don’t know Tina, though I wish I did, and I love her book.)

She gave her students the exact same problem. Here are her words, with my emphasis. If you don’t have time to read the whole thing, just skim and read the words in bold.

“What would you do to earn money if all you had was five dollars and two hours? This is the assignment I gave students in one of my classes at Stanford University, as part of the Stanford Technology Ventures Program…

Each of fourteen teams received an envelope with five dollars of “seed funding” and was told they could spend as much time as they wanted planning. However, once they cracked open the envelope, they had two hours to generate as much money as possible. I gave them from Wednesday afternoon until Sunday evening to complete the assignment.

Then, on Sunday evening, each team had to send me one slide describing what they had done, and on Monday afternoon each team had three minutes to present their project to the class. They were encouraged to be entrepreneurial by identifying opportunities, challenging assumptions, leveraging the limited resources they had, and by being creative.

What would you do if you were given this challenge? When I ask this question to most groups, someone usually shouts out, “Go to Las Vegas,” or “Buy a lottery ticket.” This gets a big laugh.. These folks would take a significant risk in return for a small chance at earning a big reward.

The next most common suggestion is to set up a car wash or lemonade stand, using the five dollars to purchase the starting materials. This is a fine option for those interested in earning a few extra dollars of spending money in two hours.

But most of my students eventually found a way to move far beyond the standard responses. They took seriously the challenge to question traditional assumptions—exposing a wealth of possibilities—in order to create as much value as possible.

How did they do this? Here’s a clue: the teams that made the most money didn’t use the five dollars at all. They realized that focusing on the money actually framed the problem way too tightly. They understood that five dollars is essentially nothing and decided to reinterpret the problem more broadly: What can we do to make money if we start with absolutely nothing?

They ramped up their observation skills, tapped into their talents, and unlocked their creativity to identify problems in their midst—problems they experienced or noticed others experiencing—problems they might have seen before but had never thought to solve. These problems were nagging but not necessarily at the forefront of anyone’s mind. By unearthing these problems and then working to solve them, the winning teams brought in over $600, and the average return on the five dollar investment was 4,000 percent! If you take into account that many of the teams didn’t use the funds at all, then their financial returns were infinite.

So what did they do? All of the teams were remarkably inventive. One group identified a problem common in a lot of college towns—the frustratingly long lines at popular restaurants on Saturday night. The team decided to help those people who didn’t want to wait in line. They paired off and booked reservations at several restaurants. As the times for their reservations approached, they sold each reservation for up to twenty dollars to customers who were happy to avoid a long wait.

As the evening wore on, they made several interesting observations. First, they realized that the female students were better at selling the reservations than the male students, probably because customers were more comfortable being approached by the young women. They adjusted their plan so that the male students ran around town making reservations at different restaurants while the female students sold those places in line. They also learned that the entire operation worked best at restaurants that use vibrating pagers to alert customers when their table is ready. Physically swapping pagers made customers feel as though they were receiving something tangible for their money. They were more comfortable handing over their money and pager in exchange for the new pager. This had an additional bonus—teams could then sell the newly acquired pager as the later reservation time grew nearer.

Another team took an even simpler approach. They set up a stand in front of the student union where they offered to measure bicycle tire pressure for free. If the tires needed filling, they added air for one dollar. At first they thought they were taking advantage of their fellow students, who could easily go to a nearby gas station to have their tires filled. But after their first few customers, the students realized that the bicyclists were incredibly grateful. Even though the cyclists could get their tires filled for free nearby, and the task was easy for the students to perform, they soon realized that they were providing a convenient and valuable service. In fact, halfway through the two hour period, the team stopped asking for a specific payment and requested donations instead. Their income soared. They made much more when their customers were reciprocating for a free service than when asked to pay a fixed price.

For this team, as well as for the team making restaurant reservations, experimenting along the way paid off. The iterative process, where small changes are made in response to customer feedback, allowed them to optimize their strategy on the fly.

Each of these projects brought in a few hundred dollars, and their fellow classmates were duly impressed. However, the team that generated the greatest profit looked at the resources at their disposal through completely different lenses, and made $650. These students determined that the most valuable asset they had was neither the five dollars nor the two hours. Instead, their insight was that their most precious resource was their three-minute presentation time on Monday. They decided to sell it to a company that wanted to recruit the students in the class. The team created a three-minute “commercial” for that company and showed it to the students during the time they would have presented what they had done the prior week. This was brilliant. They recognized that they had a fabulously valuable asset—that others didn’t even notice—just waiting to be mined.“

Tina was trying to teach her students something. And she gave them a powerful gift– she helped them see for themselves that they were boxing themselves in with limitations.

Yes, a lawyer could make money just working a couple of hours. Yes, it takes time and physical effort to make money. But what are the assumptions you’re making in your daily life? What are you not looking at? What have you taken for granted?

Anybody can ask you those questions, but not everybody can set you up and put you in a place that makes you most receptive to appreciating the full power of those questions.

If you can tell me that you go about your life questioning every assumption and leveraging every hidden advantage, sure. But are you? What would it take to get you to start doing that?

source : http://www.lifehack.org

Key to Success and Stages Starting a Small Business

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Small businesses especially are almost no capital need perseverance, tremendous effort. Far above average businesses have a large capital. However, these efforts will not mean anything when you’re wrong mentor to fall everywhere to try without directing, can not make money and lead to despair.

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Strategy plan success to start business

a. See, blackouts and Modifications

When creating a business model, look around and find a successful example of a business model that you want, and learn, observe, imitate and modifications. Keep in mind, all businesses must be a model that has never been there, if you can not find, whether you exceptional genius, or the business model you’re not going to succeed in the real world.

b. Search Partner for sharing risks

Even if the capital needs, try not to invest its own money. Since most business is a risky trip, especially since you do not understand well the risks that will be the case, then look for a partner. So, if everything does not go all the plans, you’re not going to go bankrupt because of start-up funds before, and did not pursue the debt.

c. Price Time, Convert to Money

Convert the time you spend on doing business with the money. Give a monetary value on your time, for example Rp20 thousand per hour. The goal is to help when you have to make decisions: for example, only a store charge Rp10 thousand for shipping every week, and it takes 2 hours to go to the store by yourself, then pay continues postage from the company, because it is cheaper. This is the basic principle of the respect of time.

d. Make the Most

Early stages of starting a business, you must be willing to work hard, long hours, forgetting personal gain and health. As a budding entrepreneur, you certainly will not be able to pay employees, even though employees were cheap. So, your employees, is your own. The company is me!

e. recruit Employees

If your business has started to walk, do a show of force alone. Begin to recruit good employees. To that end, do the recruitment process carefully, without haste. Find who have a passion in that field. Employees are the key to the future of your business. In their hands the vision, your mission will be realized.

f. Take advantage of the Latest Technology

Because you are based online, then use the latest technology. New technologies such as application and data storage with cloud technology is very cheap and make a small company can compete with larger companies. Allocate your time to learn some of the latest technological developments so that you can take advantage of the low cost of the technology on the market to support your efforts

g. Avoid a price war by selling excess

Avoid price wars, to sell the surplus, rather than price. When you start a business, naturally you frustrated market, considering the product or service is new and unknown. Avoid competing on price, you will be defeated by the incumbents. Selling the excess service or product, master the skills to communicate with customers, to explain that the higher the price of your product because it has a better value.

Do not be Afraid of Trying

Starting a business is not easy, a lot of obstacles that will challenge and you have to face. The key is to never give up, because in every challenge you have there will always be lessons that you can take. Not only that, every difficulty in each challenge will make you more resilient and persistent. So, do not be afraid to try!

 

source : https://www.cermati.com/

How to became Stockbroker

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Becoming a stockbroker isn’t easy, and the process can be quite intense and stressful at times. Still, many individuals coming out of school want to join the ranks. But how can they go about doing that? Is there a defined path that one should follow? This article addresses those questions and provides greater insight into this alluring career.

Desire And Skills
Being a stockbroker sounds like glamorous work; we have Hollywood movies like Wall Street to thank for that. But the fact is that many first-year brokers end up dropping out of the business because the job usually requires long hours, can be very stressful and requires a large amount of dedication. If you are considering entering the profession, you should first do some soul searching and try to determine whether you have the desire and patience to do what it takes to be successful.

While no particular personality traits are required to become a broker, generally speaking, successful Registered Representatives have an inner drive to succeed. They also make the most of their day, and they can take rejection. These are important qualities to have, given that most of a broker’s day is likely to be spent on the phone, pitching stock ideas to prospective or existing clients.

Other key skills that can come in handy are:

– an ability to sell
– an ability to effectively communicate
– an ability to explain to others concepts that are sometimes hard to grasp

Although classes and seminars are offered to improve communications ability and salesmanship, that takes time and money. Therefore, it’s usually best if you already posses these skills before entering the field. (If you’re still trying to figure out where you’d fit best in the financial world, check out Finding Your Place In The Financial Industry and Is A Career In Financial Planning In Your Future?)

Education
A college education is generally a must these days, as the competition to get into certain firms and training programs can be quite intense.

There are no specific types of majors or degrees that will guarantee you a job, but individuals who majored in finance probably will have a leg up on the competition. In addition, a master’s degree helps the candidate stand out from the crowd, as it implies that the candidate has learned additional skills in communication and finance that can be helpful on the job.

A Firm Fit
Be on the lookout for companies that have reputable and structured training programs. These companies can be extremely helpful in teaching certain sales techniques, time management skills and the ins and outs of the industry. (For tips on getting accepted into the training program you want, read Get Into A Broker Training Program.)

To find this information, conduct a search on the internet and, more specifically, on the websites of individual firms. Good old-fashioned help-wanted ads in major newspapers such as the Wall Street Journal or New York Times might also detail information on training programs.

And, even beyond that, consider firms that match your personality and preferences. For example, as a would-be broker, consider whether you want to work for a large, internationally known firm or a smaller firm. (To learn how to find a firm that’s a great fit, read Trying On Potential Employers.)

Sometimes brokers who start off at larger firms feel like small fish in a very large pond. And small regional broker-dealers might provide a higher commission rate and a warmer and friendlier cultural atmosphere. However, the downside to a smaller firm is that landing customers or ensuring confidence in your firm might harder because of its lesser-known name.

Series 7 and 63 Exams
Even if you are hired by a firm and you have the desire, there is no guarantee you will become a fully functioning stockbroker – to do that, you must first pass specific exams:

The Series 7 exam is traditionally taken by beginning brokers. It is a general securities license that enables an individual to sell securities such as stocks.
The Series 63 exam focuses on state laws and regulations.

Would-be brokers should understand that these exams are not easy, and the brokerage firm sponsoring you for the exam expects you to pass it. (Need help passing the exams? Our Series 7 and Series 63 exam guides have the information you need.)

Building Clientele
Just because you pass the exams and officially become a stockbroker doesn’t mean that you can sit back and relax. On the contrary, this means that your work is just beginning. You now must focus on building a book of business.

There are many ways to seek clients. Some of them include:

A phone book and an order to “smile and dial”, which means to make cold calls in order to open accounts. (For tips on making the sale, read Cold Call Without Getting The Cold Shoulder and Alternatives To The Cold Call.)
A list of pre-qualified prospects, from which to start contacting to drum up business. These may be given to you by your firm or bought from marketing firms.
Tapping relatives or friends to obtain referrals.
Organization memberships, such as the local chamber of commerce in order to network and meet prospective clients.

Bottom Line
This entire process can be a very time-consuming and costly adventure. As a would-be broker, consider the effort that must be put forth and whether you have the patience and mindset to take on something like this. Keep in mind the time and effort it takes to attain such a position. If you are lucky or motivated enough to possess the necessary aptitude, take heart – although it isn’t for everyone, being a stockbroker can be a very rewarding job.

source : http://www.investopedia.com/