Cash or Profit?

In one of the recent workshops we discussed about how could a profitable company goes bankrupt.

Weird, but it is true.

For all entrepreneurs, it is important to remember that cash is king. While profit, as calculated by the accountant based on accounting principles is important, cash is vital. Accounting allows you to record profits when you don't actually have any cash. Take for example, a RM1,000,000 sales of cokodok that you made to Mr A on credit. Mr A has 90 days to settle the bill.

Accounting wise, you would have recorded a revenue of RM1 million ringgit and if the cost was RM300,000 you would have recorded a profit of RM700,000. This is called accrual based accounting.

The problem is, when the supplier comes to collect his RM150,000 cost or your staff wants their salary at the end of the month, you cannot pay with profit! You need cash. You need cash to pay everyone their dues.

So, while you would be happy with your profitable business, please take a closer look at your cashflow.

Selamat berniaga :-)

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My Training Business

In my previous post on moving back on the payroll to support and fund my business ventures (as opposed to seeking government funding/loan etc), one of my passion business, namely the training business has to undergo a change in its business model.

Rather than a full time Training Provider and Speaker, I had to assume a more passive role of Trainer (for Elixireducate) and collaborate with a Training Provider (Symphony Digest).

How did we (Symphony Digest and I) met? Well, I attended one of the training provided by Symphony applying MY First Rule of Business, I offered my service as a trainer for Corporate and Investment topics. What went through my head? 1. There is no shame in making an offer 2. I don't lose anything (ego? doesn't pay for my bills) 3. It is something that I believe that I can do (and I have done it before, but with a different crowd) 4. I know I know my stuff.

I asked my boss and he said it is ok so long as I keep it to weekends on on my day off. We also agreed that this is a great way to market my employer as my audience will be the executives and senior managements of the Malaysian financial industry. Win-win-win scenario

So we decided to give it a go. We were both excited about this prospect.

Symphony had a host of topics that they think I should do. So I applied MY Second Rule of Business "focus". I said lets focus and create a specialization. Let's not bite more than we can chew. So in January 2013 we agreed to start with two topics: First is on Investments in ETF (Exchange Traded Funds) and REITS and the second is on Corporate Finance.

The first training session was on ETF and REITS and it was held on 6 April 2013. The marketing was done in February 2013 and we did not know how the response was going to be; we set the price at a reasonable rate of RM430 per head for a day with lunch. I also marketed the program to my peers and contacts. This will be Yazdi's first time in the market and we did not know how the response is going to be like.I would be very happy if 20 turns up.

In march, I was told initially that 12 signed up. A couple of days later the numbers became 20. But it did not stop there and two weeks before the event, we had to stop taking participants at 60. Symphony said they never had such a large crowd before.

Remember earlier I said that I would be happy if 20 turned up? It changed to me being nervous. Why? The list included directors of banks and heads of investment houses. I know I know my stuffs, but with this crowd, they also know their stuffs. I therefore apply MY Third Businesses rule: prepare to give the best.

In order to give the best, I tripled whatever effort I had planned to expend on this project. If i planned to get 10 source materials, I tripled it to 30. I know that my materials will not be perfect (as perfect does not exist) but I on my way of attaining perfection, I will be really really prepared.

How did it go? I will let the photos tell all :-)

We will be holding another training on Corporate Finance in June. Hopefully we can meet there? Fifteen participants of the previous training already signed up, Alhamdulillah :-)

Role model for entrepreneurs

I am reposting this article from Arab-News lest it goes missing in history. All rights belong to Arab-News:

Muhammad Al-Harbi

Tuesday 29 May 2012

Saudi Arabia’s rags-to-riches billionaire Sulaiman Al-Rajhi is also a world-renowned philanthropist. He is the founder of Al-Rajhi Bank, the largest Islamic bank in the world, and one of the largest companies in Saudi Arabia. As of 2011, his wealth was estimated by Forbes to be $7.7 billion, making him the 120th richest person in the world. His flagship SAAR Foundation is a leading charity organization in the Kingdom. The Al-Rajhi family is considered as one of the Kingdom’s wealthiest non-royals, and among the world’s leading philanthropists.
Al-Rajhi is a billionaire who chose last year to become a poor man at his own will without having any cash or real estates or stocks that he owned earlier. He became penniless after transferring all his assets among his children and set aside the rest for endowments. In recognition of his outstanding work to serve Islam, including his role in establishing the world’s largest Islamic bank and his regular contribution toward humanitarian efforts to fight poverty, Al-Rajhi was chosen for this year’s prestigious King Faisal International Prize for Service to Islam.
In an interview with Muhammad Al-Harbi of Al-Eqtisadiah business daily, Al-Rajhi speaks about how he was able to succeed in convincing chiefs of the leading central banks in the world, including that of the Bank of England, nearly 30 years ago that interest is forbidden in both Islam and Christianity, and that the Islamic banking is the most effective solution to activate Islamic financing in the world and make it a real boost to the global economy.
The story of Al-Rajhi is that of a man who made his fortunes from scratch, relying on grit and determination. Al-Rajhi threw away his huge wealth through two windows — distributed a major part of his inheritance among his children and transferred another portion to endowments, which are regarded as the largest endowment in the history of the Islamic world. He had to fight poverty and suffering during his childhood before becoming a billionaire through hard work and relentless efforts, and then leaving all his fortunes to become penniless again.
Al-Rajhi is still very active and hardworking even in his 80s with youthful spirits. He begins his work daily after morning prayers and is active until Isha prayers before going to bed early. He is now fully concentrated on running the endowment project under his SAAR Foundation, and traveling various regions of the Kingdom managing activities related with it. He always carries a pocket diary containing his daily programs and activities and he is accustomed to stick on to the schedule he had prepared well in advance.
Al-Rajhi scored excellent performance results in almost all businesses in which he carved out a niche for himself. In addition to establishing the world’s largest Islamic bank, he founded the largest poultry farm in the Middle East. The credit of activating the organic farming experiment in the Kingdom mainly goes to him through launching a number of farming projects, including Al-Laith shrimp farming. He also established real estate and other investment projects.
Excerpts:
Sheikh Suleiman, have you become a poor man again?
Yes. Now I own only my dresses. I distributed my wealth among my children and set aside a portion for endowment to run charity projects. As far as I am concerned, this situation was not a strange one. My financial condition reached zero point two times in my life, and therefore I have had the feeling and understanding (about poverty) well. But now the feeling is accompanied by happiness, relaxation and the peace of mind. The zero phase in life this time is purely because of my own decision and choice.
Why did you choose this path?
All wealth belongs to Allah, and we are only those who are entrusted (by God) to take care of them. There were several reasons that prompted me to distribute the wealth and that resulted in performing this virtue. Most important among them is to foster brotherhood and love among my children and safeguard their harmonious relationship. This is more significant than any wealth in this life. I was also keen not to be instrumental in wasting the precious time of courts in case of any differences of opinion among them with regard to partition of inheritance. There are several examples that everybody could see when children entered in dispute over wealth and that led to the collapse of companies. Nation has lost many large companies and their wealth that we could have been saved if we tackled the matter in a right manner. Apart from this, every Muslim should work on some endowments that could benefit him in the life after death. Likewise, I prefer my children to work on developing wealth, which they inherit after my death, during my lifetime itself rather than I continue working to increase them.
Are you getting enough free time after the distribution of wealth?
As earlier I am still working on developing endowments. I will donate and give alms from it until Allah takes over this trusted deposit. I have worked out a meticulous scheme for this endowment and developed it with the support of specialist consultants and agencies. This idea struck me long before. Usually people in the Islamic world set aside one-third or one-fourth of their wealth for endowment and that will be effective only after their death. But in my case, I decided to implement this decision in my lifetime itself. So I invited my children to Makkah during the end of Ramadan and presented the idea in front of them. They readily agreed it and then I distributed my wealth among my children in addition to setting aside a part of it for endowment. I sought the help of consultants to facilitate the procedures for the distribution of all my assets including properties, real estates and stocks, and that was completed in a cordial atmosphere. All my children are now fully satisfied with my initiative and they are now working on these properties in my lifetime.
How much wealth you distributed among children and set aside for endowment?
He laughed without giving an answer.
How do you feel now about your projects?
I would like to point out that there were some factors that prompted me to make investments in certain specific areas. My experiment in money exchange was the temptation to set up a bank. The absence of any Islamic banking was also another factor in establishing Al-Rajhi Bank, which is now the world's biggest Islamic lender by market value. I began the experiment with opening an office in Britain where we introduced Islamic banking system at a greater level. The experiment was a success and it had received total backing of the Saudi Islamic scholars at that time. I still recall the application made for getting license for the bank was turned down in the beginning. This was because the concerned British officials did not have any idea about Islamic banking. Therefore, I went to London and met with the manager of the Bank of England and two of his deputies. I told them that Muslims and Christians see interest as forbidden (haram), and the Muslim and Christian religious people are unwilling to make transactions with banks based on interest and instead prefer to keep their cash and other valuables in boxes at their homes. I tried to convince them that (if we establish Islamic banks) this money would be helpful to strengthen the world economy. These talks were helpful in convincing them and they agreed to open Islamic banks. Then I traveled widely throughout the world in the West and East, and met with the chiefs of central banks in various countries and explained to them about the salient features of the Islamic economy. We started working and achieved success through launching it in the Kingdom and implementing it in London. When I returned to the Kingdom from London, I met the late Grand Mufti Sheikh Abdul Aziz bin Baz and Sheikh Abdullah bin Humaid, and informed them about the plan saying: 'We would reach, by the grace of Allah, the Islamic banking within a stipulated period of time.' They praised me for the initiative. We started aggressively implementing the project and that is in the form of Al-Rajhi Bank as you see now. Regarding Al-Watania Poultry, the idea of establishing such a venture struck me after my visit to a poultry project abroad. I saw that the way of slaughtering chicken was not proper. Then I decided to make investments in the field of poultry after considering it as a duty to my religion and nation. I started the project even though making investments in poultry involved high risks in those days. Now Al-Watania has become a mega Saudi project that is instrumental in achieving food security in many respects. The company enjoys a 40 percent market share in the Kingdom, and Al-Watania chickens are naturally fed and halal slaughtered in accordance with the Shariah principles.
What about your insistence on introducing organic farming through Al-Watania agricultural projects?
As you see, now I am 85 and still enjoy good health. If we pursue organic farming as our healthy food style, we can bring down cost of treatment to a great extent. We made several experiments in the field of organic farming. Our numerous experiments met with setbacks in the beginning. This prompted many engineers and workers to reach a conclusion that it is impossible to have organic farming and profit together. In the beginning, they were firm in their view that this would not at all be successful. But I insisted that it would work and continued compelling them to proceed with the venture. At one time, I took a firm position and told them either to do organic farming or quit. Now we are reaping the fruits of this lucrative business in line with my vision to provide only the healthiest, safest and most trustworthy food to consumers. Al-Watania Agricultural Company stopped using chemicals and artificial fertilizers and focused exclusively on organic methods such as the use of pest insect repellants and animal manure.
Your austerity and thriftiness on spending are well known. Please comment?
I am not a miser. But I am always vigilant against extravagance. I always try to impart this lesson to all those working with me whether it is in banking or poultry or other projects, and I am more concerned about it when it is coming to the case of my children. In the past, I never gave money to my children when they were young in return for nothing. When any one of them approached me to give them cash, I asked them to do some work in exchange for it. In our life, we practice some extravagance without being aware of it. But it affects our whole life, exhausting us and putting a burden on our country. For example, there is no logic in putting heavy curtain on our windows and then lighting lamps in daytime when we get sunlight free of cost while electric lamps are costly.
Despite all your wealth, why don't you still have a private aircraft?
Let me tell you that I have many planes but they belong to various airlines. I have ownership in all of them to the tune of the ticket fare that I pay for each travel. I always travel in economy class with the conviction that Allah bestowed us wealth not for showing arrogance or spend extravagantly but to deal with wealth as a trusted property.
What about the recreation and hobbies of Sheikh Al-Rajhi? How do you spend free time?
I have not any special recreations. However, I find happiness and enjoyment while making a trip to the desert. I never went out of the Kingdom on a tourism trip.
What about your will? What are its salient features?
Regarding my will related with wealth, I have already implemented it in my lifetime. As for the remaining aspect of my will, it is a public matter and also involves certain private matters, besides encouraging my children to maintain their kinship and always reminding them about the life after death.
How do you see your children's private investments? Are there any directives to them?
A number of them are doing an excellent work in accordance with their knowledge and experience. Most often, I try to guide them when I noticed anything undesirable even if it is in their private investments. Regarding my younger children, I always guide them, especially in the case of their investments. This is purely out of my keenness that they should be honest in their work as well as in spending wealth given by God as a trusted property. I am also eager to hear about my children that they are interacting with the society in the best possible manner, and that they are serving their religion and nation.
In what way you like to spend your time? What are the places that you like most?
I used to travel between Riyadh, Qassim, Al-Jouf, and Al-Laith to oversee my projects there. I always prefer to visit the farms in Qassim and Al-Jouf.
How could you preserve many old and precious things and antiques at Suleiman Al-Rajhi Museum?
A long time ago when I was in Jeddah, I was keen on preserving heritage pieces and gathered them together, especially those related with money exchange. There would be a history with every human being. The museum tells the story of money exchange. I particularly kept registers and cash boxes that were used when I started the money exchange business. The first cash box was made of wood, and there was a huge treasure box in which we kept our gold and silver. The artifacts kept at the museum tells the evolution of currency in the Kingdom through issuance of bank notes, as well as some currencies and coins that were in circulation among the Haj pilgrims. A major factor that prompted me to set up the museum was the visits made by a large number of officials from various countries to know more about these old coins and currencies. We have had to exhibit these rare collections in front of them to explain about our history and heritage, especially those related with money. I was keen to furnish the museum with historic and heritage pieces, especially with the same materials used for construction in the past. Hence, the roof of the museum was made of palm branches, and that was the case with the seating arrangements at the museum.
Al-Rajhi's punctuality
The interview also sheds light on many qualities of Al-Rajhi, including his punctuality. "In the beginning of my business career, I had appointments with several top European company executives and officials. I still remember that I reached late for such an appointment due to an unavoidable reason. My delay was only a few minutes but the official excused himself for the interview. Later, after expansion of the projects, the same official came late for an interview with me so I excused myself for the interview. I always carry a paper to note down the schedule of meetings and stick to the schedule at any cost."
Al-Rajhi continued: I am always keen to strictly adhere to the Islamic principles throughout my life. Once I received an invitation from an Arab government to attend an investment conference there. On the sidelines of the conference, I was invited to take part in a dinner reception. When I reached there, I found a recreational program, which is contrary to our religious customs and traditions, taking place. So I quit the place immediately and, Abdul Aziz Al-Ghorair from the UAE also joined me. Soon minister plenipotentiary rushed to us, and we explained to him that the function is against our Islamic tradition. So he informed us that the recreational party would be cancelled. When they canceled that party, we participated in the dinner.
Tackling crises
Al-Rajhi said: There was a huge fire that gutted down one of my factories managed by my son. When he came to inform me about it, I told him: Say praise be to God. I asked him not to submit any report about the losses to the authorities seeking compensation. In fact, the compensation is from Allah and it is essential for us to be satisfied with What Allah destined for us. Assam Al-Hodaithy, financial director of Al-Watania Poultry, said: "When the fire broke out at the factory, we decided not to hurt Sheikh Al-Rajhi by informing about it at that moment. Later, when we met him next morning, he told us to shift the factory to another place and remove the debris until completion of reconstruction." There was a similar fire at Al-Watania Poultry project in Egypt. The company incurred losses worth SR 10 million Egyptian pounds. When the concerned factory official contacted Al-Rajhi to inform about the fire, he was surprised to hear an instant reply from him: "AlHamdulillah."

http://www.arabnews.com/sulaiman-al-rajhi%E2%80%99s-life-rags-riches-story

Distractions in business

When we start or have a business, one of our biggest enemy is distractions. Distractions is bad as it derails us from our original and true intention; making us lose focus on what matters, normally leading to wasted money, time and resources.

Distractions come in many forms and guises. For those who are making progress, distractions could be in the form of lifestyle and fun; the women, men, frolicking and all the sweet things on earth. These kinds of distractions would come to those who started making money from their business. We see and hear these kinds of stories all the time; someone falling off his fortune because of a mistress, excessive travelling and lavish lifestyles.  These types of distractions are tests for those who has made it and wishes to either stay on top or go higher.

But those who just started business and have not made it yet are not spared from distractions. For those who just started a business, distractions can come in forms of new ideas and perceived opportunities. In the beginning, you business will have to go the 'budding' phase; it is a phase where the growth is not visible and it could be frustrating at time. During this phase, your impatience may invite you to be distracted with new ideas and perceived opportunities. These distractions are very dangerous as they would cause you to abandon your original plan, leaving it half-baked. Be careful of this distraction of perceived opportunities as it is very intoxicating. Why? Because it is filled with hope and hope drives an entrepreneur high; only that getting 'high' on hope is not going to get you anywhere.

Therefore, my advise is to always check if you are on the right track. I mean have a systematic method to check if you are on the same track and persistently moving along the track. The first thing is to write it down on paper - do not trust your brain with the plan. You need your brain for the execution of your plan; storing the plan itself should be on a piece of paper. make it a point to spare 1/2 an our each monday to go back and read that piece of paper to remind yourself of your goals and plans. Sit down and write what are the things that you are planning to do for the rest of the week and compare that list with your original plan. You would be able to spot clearly, once it is on paper, what are necessary actions and what are the distractions. Cross out the distractions and reclaim back the time and effort that your are planning for that distractions; the very least, you could use the time to be with your family.

Please do not mistake this with the adjustments that you need to make on your track due to reasonable and valid reasons. That adjustments is vital. You must know the difference between adjustment and distractions.



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Start a business to sell goods or services, not to get grants

Recently it was reported that PUNB has approved for an allocation of RM200 million to help bumiputera entrepreneurs. Great. But if you want to start a business, assume that your name is NOT in the list.

Many Malay entrepreneurs assume that a government grant is almost automatic for them if they have a business. Many went on to build an operation and make commitments based on the assumption that PUNB or some agencies would give them a grant/loan/assistance for their business. WRONG

One thing that you would need to realize, no matter how great you think your product is, how ingenious is your idea, how original your concept is, there will be a thousand others who thinks the same about their products/services. Therefore, there is no guarantee that your business will get the grant.

Build your business assuming that you will not get a grant; your business must be able to stand on its own. Ironically, once your business is proven to be able to stand on its own, he grants and loans will come pouring in. The rationale is simple, the grant officer wants to deliver success stories and proven business are less likely to fail.

But it does not mean that you should not apply for such grant. You should and must apply, but do not assume you will get it. And if you want to prepare your pitch, the following might  help (I do not own the copyright to the photo, it is reproduced under the Fair Use law, for educational purpose only)

Do what you have to do so you can do what you want to do, later

Hello readers,

Sorry for the long silence. I have been caught up with a myraid of things to sort and obstacles to jump over. Anyway, today I read an article which I cannot delay passing on to you through this blog. Read it if you have the time and please do comment if you share the views  in the article, here.

http://www.entrepreneur.com/blog/222831

See you again soon

Yazdi

If you like the article above, please like us here. :-)The Author is the principal of ElixirEducate - a training house for Smart Entrepreneur Program Series. If you would like what you read above, we would be grateful if you could 'like' us at our page here. If you would like to to find out or learn more about the the article above, you can email the author directly at yazdi@theelixirstore.com or be his facebook friend here.
 
Lastly, if there is anyone that you know who may benefit from reading this article / post please forward and share this posting by clicking the button "Share" below. Have a great day ahead.

ElixirEducate

Developing your business

Hello friends,

I am sure most of us have growth as one of the top priority, if not the highest. No, I do not mean the waistline (although mine has a mind of its own) but your business. Simply put, most of us equate business development / growth as increasing profit and wealth.

Well, if you are going to do it yourself (as most entrepreneurs would), these are some simple steps that you could follow:

1. Where are you now? You need to know, precisely, what is your present business model, how much business is it generating and its corresponding size. Brainstorming together with your employees would be a great idea. Do you have strong strategy but weak operations? Or weak strategy but strong operations? What is lacking?

2. Where do you want to go? You need to be clear as to what you want to GROW. Remember, it is sustainable profits that you would want to grow, not simply size. The target should be 'Realistic" but multiplied by two, at least. Set high standards. Do not be afraid that you might fail.

3. How are you going to achieve it? Organic growth VS in-organic growth? Product development? Market development? Diversification? Market penetration?

4. How much it is going to cost? You need to be very clear as to how much is this going to hit your pocket. Find out any hidden cost.

5. How are you going to fund the cost? Own money? Borrowing? New investors? Equity? Hybrid? Convertibles? What is the art of getting funded?

6. Is it going to be worth it? Is the benefit going to outweigh the cost?

Lastly, keep it simple and doable. Do not make your growth plan complicated. Take action.


Related reads:

1. Growing successfully for small businesses
2. Growing to business failure
3. The Art of Getting Funded



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If you like the article above, please like us here. :-)

The Author is the principal of ElixirEducate - a training house for Smart Entrepreneur Program Series. If you would like what you read above, we would be grateful if you could 'like' us at our page here. If you would like to to find out or learn more about the the article above, you can email the author directly at yazdi@theelixirstore.com or be his facebook friend here.
 
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ElixirEducate

You have got what it takes to be a successful entrepreneur

Dear friends

I am dedicating this post to all my friends in direct selling and multi level marketing. And I wish that all those who has shunned away from direct selling friends to read this letter too so that we can all be friends again.

Direct selling comes in many form and provides different products, from insurance, unit trust, herbal products, vitamins, containers, household, shampoo and the works. I am not talking about the pyramid scam or get rich quick scam, but I am talking about the genuine multi-level sales channel. And direct selling has garnered a very bad name, such that people shuts down by the mere mention of the subject. It seems that someone would have a bad experience with a direct selling, with the way they are being pushed to buy or sign up. Direct selling entrepreneurs are being shunned, pushed away into a society of their own.

I say, what a waste of talents. MLM entrepreneurs can be successful and instead of shunning them away, I want to embrace them that with the right method, they can be the millionaire they wanted.

1. You have what it takes to be successful. The fact that you are taking action, meeting people and overcoming your shyness and fear is already a magnificent start. It is the quality that is required in all entrepreneurs. You are brave.  Not many people have this, but you do. This alone can ensure success. You are taking action to achieve your goal, making changes in your life, sacrificing your time and energy to achieve what you wanted. Unfortunately, people has taught you wrongly and you ended up sacrificing your friends too. But you can fix this easily. Just email me and I will tell you how.

2. You have a dream and you dream big. That is another essential quality to become a millionaire. You are not happy with the status quo, you present situation. So you sell. You sell to achieve your dream. But you must not limit your dream to merely profits. You must dream bigger than a car, a bungalow and a holiday. You must dream to be a better person with a better life. To help other people in need.

3. You are building relationship. Whatever product you are selling now in MLM is just one product, but what you are building is a relationship between a product and a consumer. And that relationship is very valuable. If you build the relationship properly, you can use the relationship to sell other products and make more money. A happy customer who had bought vitamins from you would also be happy to buy some health  equipment too, right? But build relationship the right way, build on trust.

4. You have a plan. Every MLM entrepreneur will start with a plan on how to reach the millions. But the plan is only regarding one product. MLM entrepreneurs must have a bigger plan, their own plan on how they want to achieve thier goal, not juston one product and not just on MLM alone. MLM entrepreneurs must have a plan to eventually become a true entrepreneurs if they really want to earn the passive income. Get an mentor, a coach or anyone who can help you get your entrepreneurship plan drawn out for you.

Finally dear friends, you can get there. You can buy your dream car, your expensive houses and your love boat. But you may need to make some minor adjustments to get there. Old tactics in a new world, a world of social networking and fast dissemination of information as well as disinformation, would not work. People are getting smarter and have more choices. You can be different, if you choose to do so.

And to all those who has lost friends in MLM, share this with them so that we can all be friends again.

Work smart everyone.

Related reads:

1. Marketing formula

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If you like the article above, please like us here. :-)

The Author is the principal of ElixirEducate - a training house for Smart Entrepreneur Program Series. If you would like what you read above, we would be grateful if you could 'like' us at our page here. If you would like to to find out or learn more about the the article above, you can email the author directly at yazdi@theelixirstore.com or be his facebook friend here.
 
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ElixirEducate

Smart Marketing: Creating ultimate customer

This is the preview of the presentation slides for the upcoming Smart Entrepreneurs Training: Smart Marketing Modules.

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If you like the article above, please like us here. :-)

The Author is the principal of ElixirEducate - a training house for Smart Entrepreneur Program Series. If you would like what you read above or want to know more about our training, we would be grateful if you could 'like' us at our page here. If you would like to to find out or learn more about the the article above, you can email the author directly at yazdi@theelixirstore.com or be his facebook friend here.
 
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How to be a succesfull at MLM and keep your friends

Multi-level-marketing business is the epitome of relationship-based business. Well, think about it, you have absolutely no control over what you can do with the product. If the customer does not like the taste, you cannot change it. If the customer does not like the formula, you cannot change it. If the producer stopped making your best selling item, you cannot do anything about it. 

Therefore, the sale, the business of multi-level-marketing or direct selling is purely based on relationship. Therefore, it makes every sense that a multi-level-marketing entrepreneur must follow the path meant for building relationship, rather than sales. By focusing on sales from the onset, you are indirectly forcing a relationship. You will not build a relationship and eventually run out of friends; but that is what everyone seemed to be doing (or at least that is how the industry is perceived). 

Multi-level-marketing entrepreneurs can be very successful, can be rich and can be happy. But the business must be carried out in its natural form; that is building relationships. And relationships can only be built the way relationships are built, beginning with trust.

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If you like the article above or would like to learn more, please like us here. :-)

The Author is the principal of ElixirEducate - a training house for Smart Entrepreneur Program Series. If you would like what you read above, we would be grateful if you could 'like' us at our page here. If you would like to to find out or learn more about the the article above, you can email the author directly at yazdi@theelixirstore.com or be his facebook friend here.
 
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ElixirEducate

A letter to aspiring entrepreneurs, Part 3

Helloo there,

How are things going with your new venture? I hope you are getting along fine. I am good too, despite having to work this weekend. Well, you know what they say about us entrepreneurs, "weekends are weekdays but our weekdays can be our weekends too, anytime".

To recap, in my last letter to you, I briefly mentioned about the need to follow your passion, to have the endurance, to be resourceful and to have an 'entrepreneurship plan'. We left off at how your business plan would fail you. Therefore, without further ado, I present to you lesson number 9.

Lesson 9. You Business Plan will fail you. What do they have in business plans? The important ones would be product description, target market, financial projection, swot analysis, competitor analysis, industry analysis, business model and marketing plan. And some people would produce 100 pages of this surefire plan and set off to build a business based on his plan. And one thing are 100% sure to happen: things would not go as planned. And even if you rigidly follow your plan, there is 90% chance your business will fail.  No. It is not because you are not a smart planner, it is certainly not about your capabilities at all.

It is simply because the nature of the business plan. They are all a bunch of guesses and assumptions. Some might argue that it is an educated guess, but it is a guess nonetheless. And most of the assumptions are bound to go wrong. It could be overstated or understated.

But  don't get me wrong. You must have a plan. But you must accept and be ready for the plan to fail and needing adjustments. That is the nature of a plan. It is its natural order of life. Have a plan and keep an eye out for feedbacks and be ready to make changes to your plan. Like the saying "roll with the punches", find ways to find the right plan; the plan that makes money.

And even when you have found the right way and are making money, do not take things for granted. Keep your ears to the ground, listen to the heartbeat of your business and competitors. Modify your plan if you have too.

My last piece of advice on this business plan thing is, keep it simple. 100 pages of business plan are for investors and bank. As for you, you must fit in on a piece of A4 paper. It must be easily understood by you, clearly and visibly. Making money, based on our plan, must not be complicated.

Well, that is all for now, I will write to you again soon, about Overcoming Your Fear of Failure. In the meanwhile, send my love to the family and make smart decisions.

Yours sincerely

Yaz

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If you like the article above, please like us here. :-)

The Author is the principal of ElixirEducate - a training house for Smart Entrepreneur Program Series. If you would like what you read above, we would be grateful if you could 'like' us at our page here. If you would like to to find out or learn more about the the article above, you can email the author directly at yazdi@theelixirstore.com or be his facebook friend here.
 
Lastly, if there is anyone that you know who may benefit from reading this article / post please forward and share this posting by clicking the button "Share" below. Have a great day ahead.

ElixirEducate

Growing your business sucessfully: Understanding the Customer

Hello dear friends,

Whenever I go and discuss about a business with any of my clients, especially new ones, I always ask them this question, "What is the single most important thing that you need if you want to start a business?" Not surprisingly, I would receive answers that would include "Capital","great product", "idea", "employees'. I would tell them that while these are important, the most important of all is the "Customer".

We go into business in order to get other people's money and that is inside the pocket or purse of the customer. The rest of the things mentioned above belonged to us anyway, so it mattered less. The money is with the customer, therefore rightly the focus when we want start or expand our business must be on the customer.

The following are some samples of what you would have to ask yourseff about your customer, your darling customer. How to pry that fingers off the wad of cash grasped tightly in their hands.

Who?

• The first question you need to ask yourself is “Who are the people that you want to serve or help or provide value to” That means asking questions that describes who they are. Which segment do they belong to?
• Do not be tempted to say I can and want to  serve everyone, thinking that you want to expose yourself with all the possible prospects out there. That is a mistake for small businesses; even big businesses do not serve everyone. It is a mistake when you try to serve everyone because you will end up trying to be everything. You will end up being very tired and may get very frustrated too. So, try to narrow down your prospects to a more specific group.
• Are they segmented by gender?
• Who makes the buying decision?

What?

• Next you have to  understand are your prospects’ problems or needs. What are they looking for to be satisfied? No, don’t look back at your product and think what it can solve. Just think and put yourself in the shoes of the prospects that you have just described above and ask yourself these hard questions. Get your employees and prospective customers involved.
• If you already have a business and repeat customers, get feedbacks from these clients that keeps coming back for more.
• There also customers that bought from you and was never heard from again. They are also a very valuable source of information.

How?

• After you know who there are and what do they need, you need to know the hows. And the first how is how do they want to be served. In this day and age, customers have a plan on how to they want to be satisfied.
• You need to find out whether they are willing to drive to a shop / your location to get your products or they prefer to have it delivered?
• How do they prefer to pay?
• How do they prefer to be approached and have the products delivered / consumed? How do you reach them? Email? 
•  

Where?

• You need to know where are your customers located. If you are targeting housewives, they could be found at home, school gatherings and other social activities involving children's. It your target are working women, they can be found in offices (obviously) and also at home in the evening. Next you need to know where Where do they live? Guys? Try the golf course and driving range. Teenagers? it will be at the malls, theme parks and schools.

When?

• Timing is just as important as any of the information we found out about the customers above. Like the saying, you need to be at the right place with the right product and the right time.
• When would they need your product most?
• When are they most cash flush?
• When are they at home surfing the Internet?

The answers to all the questions above would help you to plan more effectively, meeting them at the right time and at the right place with the right product. And chances are, your success rate in getting the customers to notice and buy your product would be very good.

But we are not going to settle for good. We want it to be great and in order for it to be great , you have to know these two additional elements. These two are crucial if you really want your customers to love and adore you and your product.

Who do they trust?

• In order t have a great relationship with your customer, you must build trust. And the more effective mean of building trust in a person is through another person.

What are they emotional about?

• This is a direct button to their heart. You need to find something they are emotional about. It could children (for mothers), anti-smoking, fighting cancer, single parent, entrepreneur struggle or anti-whaling.

The answers above are the akin to the keyhole in their heart. You now would have a good idea how does your prospect look like and what are her trigger points. All you need now is to look at your product and your business and find out if you have the key to their hearts (read ‘pockets’)

Work smart, everyone. 

The Author is the principal of ElixirEducate - a training house for Smart Entrepreneur Program Series. If you would like what you read above, we would be grateful if you could 'like' us at our page here. If you would like to to find out or learn more about the the article above, you can email the author directly at yazdi@theelixirstore.com or be his facebook friend here.

Lastly, if there is anyone that you know who may benefit from reading this article / post please forward and share this posting by clicking the button "Share" below.  Have a great day ahead.

ElixirEducate

Plunging with passion

Yesterday I met with a good friend of mine. He was, like I was before, an international investment banker. He just finished his stint in Saudi Arabia and now back in the trade with an investment bank in Malaysia.

After the customary hi and small chat, he said that he is now back to square one, working until the wee hours of the morning, completing the corporate proposals. I reminded him that his square one is worth a lot. He agreed but that is not the point. We went and discussed some more and alluded to the fact that he would like to venture out on his own, taking his father as an example of a successful entrepreneur, but do not know where to start. He wants to take the plunge but do not know where to the plunge, in which area?

I offered my advice.

I told him do something that he is passionate about. Entrepreneurship is not an easy game. It is laboriously hard at times. The number of opportunities are almost equal to the number of risks. He has to put in the effort, the energy, the time and the mind - for a long period of time. It may take months, it may take years before he makes a decent living or create a decent cashflow. It is really a test of endurance. I was about to sugarcoat it. I was being frank.

And I went to tell him that the only way he could endure this harsh winters of entrepreneurship is bu venturing and doing something that he loves. Money? It must be in the equation but it should not be the reason.

You have to venture into something that you are passionate about. Imagine when you are in love, the endless travel on the bike, endless rounds in the shopping malls, all seemed effortless when you were doing it for your loved ones. You loved doing it. Well it is the same thing about business. Why? because business are also run by us, human beings. We do not transform ourself into an android when we become an entrepreneur (although we work like one), we are still human. And humans thrive on love and emotion.

And humans strive for a value that is higher than money. Find something you are passionate about and do that. Find opportunities that revolves around your passion.

He lamented, "Well, I don't know what I am passionate about. I love everything. "

I said impossible. There must be something that you love more than the rest. Something that makes you smile whenever you think about it. Something that makes you feel lighter after doing it.

We went through the process of finding his passion, with a series of guided questions. In the end, he left the coffee shop with a pretty good idea what his real passion was geared up to find the opportunities that share that value/passion of his. And wished that he will do well in his trade.

The moral of the story is, never do something that you do not like as a long term activity, especially in entrepreneurship. Never be everything for everyone. Yes you may pick up the odd money-grabber here and there but your core business,  your brand, your business' personality must remain the one and same. It must be based on your passion will you truly succeed and reach heights that was higher than your dreams before.

Work smart people

The Author is the principal of ElixirEducate - a training house for Smart Entrepreneur Program Series. He was an international investment banker, corporate financier and now serial entrepreneur and business coach. You can find more information on ElixirEducate on their facebook page, here.  And be a facebook friend  of Yazdi . Please share this information with your entrepreneur friend who may benefit from this post. They could be an existing entrepreneur or someone who plans to start a business.  You can also join the growing business network of Entrepreneurs in Malaysia by joining this group. Thank you.

Advise to new entrepeneurs with a lot of money / Nasihat untuk peniaga baru yang BANYAK duit.

NOTA: Versi bahasa Melayu di akhir versi English ini.

ENGLISH VERSION

Do you or anyone you know:
1. Newly pensioned and has lot of money. Planning to do business - rearing sheep maybe?

2. Newly VSS'ed and also have a lot of money. Open a franchise maybe?

3. Made a personal loan with a bank,  RM100,000 and planning to put it all in a business?
Good intentions.  But you loose all your money if you don's take heed of these advises:

1. Most of the people above are educated or experienced. 
Yes, you may be an engineer who is extremely intelligent, but this enterprise business is another field altogether. The formula for  businesses is not like the formula for employment - In employment, you do the work get the money and the more intelligent you are the more you get, sometimes. Business other hand, work will not necessarily get the money but if you do it right do not need to work but still get the money. Do not invest all your money in the first business. 9 / 10 start-ups fails. Accept that you are new in this area and start small.

2. Do not be arrogant. 
The biggest mistake is when you think that  you are wise and have the business acumen considering  that you have a degree and once worked in a multinational company. You do not need to learn from other people. Be humble, to your employees, to your customers generally everyone around you. Do not dismiss people's advise on running a business easily, just because he wears a slipper into your shop.
3. Get trained 
Money does not make money. Only you do; so get trained. This is a must. If you do not go, you are really looking for trouble

4. Get a business coach 
You are putting RM150, 000 in your business. My advise is : do not bank it all on your work experience for 0 days. Get a business coach and he would be able to show the potholes of businesses before you fell into it. If you fall, the extraction price is very expensive.

5. Do not stingy with workers
Diligent and honest employee MUST be held on to tightly. Pay him more and treat him as partners and always discuss - not direct.

6. Pay your Zakat and give to the charity
A must. Businesses are fulled with risk as it is, you would not want to risk the wrath of the Al-mighty.
Work Smart Everyone

The Author is the principal of ElixirEducate - a training house for Smart Entrepreneur Program Series. He was an international investment banker, corporate financier and now serial entrepreneur and business coach. You can find more information on ElixirEducate on their facebook page, here.  And be a facebook friend  of Yazdi . Please share this information with your entrepreneur friend who may benefit from this post. They could be an existing entrepreneur or someone who plans to start a business.  You can also join the growing business network of Entrepreneurs in Malaysia by joining this group. Thank you. 

VERSI BM 

Adakah anda atau sesiapa yang anda kenal:

1. Baru pencen dan ada banyak duit. Merancang untuk berniaga - ternak kambing ke?

2. Baru dapat VSS, duit banyak dan juga nak berniaga. Buka francais ke, kopi tiam ke?

3. Baru dapat buat personal loan dengan bank RM100,000 dan nak laburkan semuanya untuk berniaga?

Niat bagus tapi anda mungkin akan hangus semuanya kalau tak dengar nasihat ini.

1. Kebanyakan orang yang pencen dan dapat VSS adalah orang yang terpelajar atau berpengalaman. Memnag anda mungkin seorang engineer yang teramat bijak tapi perniagaan ini amat lain. Formula perniagaan tidak seperti formula pekerjaan - buat kerja dapat duit. Berniaga pula lain, buat kerja belum tentu dapat duit tapi kalau beturl caranya tak payah bekerja tapi dapat duit. Jangan laburkan semua duit anda dalam perniagaan pertama. 9/10 kebarangkalian perniagaan pertama anda mungkin hancus atau perlu dirombak/dibaiki besar - walaupun anda buat francais.

2. Jangan jadi sombong.
Ini saya nampak sendiri dikalangan engineer yang dapat VSS. Kebanyakannya orang yang terpelajar tapi syarikat nak lepaskan mereka, jadi bagi pampasan. Kesilapan terbesar iayalah apabila anda merakana diri bijak dan tak perlu belajar dari perniaga lain. Apalah susah sangat nak jaga kedai makan berbanding jaga enjin kapal dulu. Susah jaga tu mungkin tidak, susah nak buat duit tu ya. Jadi, mestilah rendahkan diri kepada pelanggan, rakan and juga semua orang. Kat pekerja pun tak boleh kita bersombong, nanti diludah dalam beehoon tu pulak, susah.

3. Pergi krusus perniagaan
Ini mesti. Kalau tak pergi, memang cari masalah

4. Dapatkan jurulatih perniagaan
Anda akan letakkan RM150,000 dalam perniagaan anda. Jangan letakkan semuanya keatas pengalaman bekerja anda yang selama 0 hari. Dapatkan jurulatih perniagaan dan beliau dapat tunjukkan lubang lubang perniagaan sebelum anda jatuh kedalam. Kalau dah jatuh, harga nak keluarkan anda tu lagi mahal.

5. Jangan kedekut dengan pekerja
Pekerja yang rajin dan jujur MESTI dipegang dengan seerat-eratnya. Bayar dia lebih sikit dan layan sebagai rakan-kongsi dan selalu berbincang - bukan mengarah (ingat, anda pun baru bermula berniaga sedangkan dia sudah lebih lama bekerja)

6. Keluarkan zakat dan bersedekah
Wajib buat dua dua ni. Berniaga had ada cukup banyak risiko, anda tidak mahu risiko Allah marah!

Bekerjalah dengan bijak.

Pengarang adalah prinsipal ElixirEducate - Pusat Latihan Siri Usahawan Bijak. Beliau adalah bekas pegawai bank pelaburan antarabangsa, pembiaya korporat dan kini adalah usahawan dan jurulatih perniagaan. Anda boleh mendapatkan maklumat lanjut mengenai ElixirEducate di laman facebook mereka, di sini. Dan jadilah kawan facebook-Yazdi. Sila berkongsi maklumat ini kepada rakan usahawan anda yang boleh mendapat manfaat daripada post ini. Terima kasih.