Evaluate your reason's to start your own business.

So, You Want Your Own Business!

There are many reasons for wanting to start your own business, and most of us get to this point.  Which one of the following applies to you?

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• Freedom from daily routine.
• Doing what I want when I want.
• Improve my living standard.
• I want creative freedom.
• I want to fully use my skills, knowledge and education.
• I have a product/idea/service that people need.
• I’ll have more time with the family.
• I won’t have a dress code.
• There are good tax breaks for business owners.
• I’m a Type B person and work best alone.
• I want to be my own boss.
• I want to make the decisions.

Now granted, every one of the above is a good reason for wanting your own business.  The rub is, that not many people think the process through – step by step.  There are 7 phases to business planning.  They are:

1. Investigation Phase
2. Planning Phase
3. Start-up Phase
4. Operating/Monitoring Phase
5. Problem/Challenge resolution Phases
6. Renewal/Expansion Phase
7. Selling, Transferring, Retirement Phase

We’ll cover all of the above in my next few columns as a “Business Basics” refresher, but for today let’s take number one.



In the Investigation Phase you look at yourself and also your business options.  There are careers that are suited to personality types, so the first thing you must discern is “Which personality type am I?”



Duty Fulfillers

            This is an introverted personality who is serious, quiet, thorough, orderly, matter of fact, logical, realistic, and dependable.  They take responsibility, are well organized, know what should be accomplished and work steadily toward it disregarding distractions.  They are careful calculators, and 20% of this group become accountants.



The Mechanics

            These are also introverts and are cool onlookers.  They are quiet, reserved, observing, and analyzing life with a detached curiosity and have unexpected flashes of original humor.  They’re usually interested in cause and effect, how and why mechanical things work, and in organizing facts using logical principles.  They usually are craftsmen, mechanics, or handymen with about 10% becoming farmers.



The Doers

            These people are extraverts who are good at on-the-spot problem solving, don’t worry, enjoy whatever comes along, are adaptable, tolerant, and generally conservative in values.  They tend to like mechanical things and sports, and dislike long explanations. They are best with “real” things that can be worked, handled, taken apart, or put together. About 10% of this type go into marketing or become Impresarios.



The Executives

            These are another extravert group and are hearty, frank, decisive, leaders in activities and usually good in anything that requires reasoning and intelligent talk, such as public speaking.  They’re usually well informed and enjoy adding to their fund of knowledge.  They may sometimes appear more positive and confident than their experience in an area warrant.  They’re sometimes called “judgers” and “thinkers” and 21% of this group become legal administrators.



To go into each personality type would be far too complicated, but to give you an idea of the roles that personality types could fall into look at the following list.  Beside the categories we covered in depth here are some simply broken down into Introvert or Extravert Personality.



Introverts choose careers that satisfy being:

• Nurturers
• Guardians
• Artists
• Scientists
• Protectors
• Idealists

Extraverts are usually:

• Performers
• Visionaries
• The Inspirers
• Givers
• Caregivers

The second part of the Investigating Phase is looking at your business options.  When choosing the business, you want to start considering the following:

• Do you like to work with your hands or brain, or both?
• Does working indoors or outdoors matter?
• Are you good at math, writing, puzzles, blueprints, installing things or fixing things?
• What interests you? What are your hobbies?
• Do you like to work alone or as part of a team?
• Do you like to plan things, or go to events?
• Do you like machines, computers?
• Do you like to drive or operate equipment?
• Do you like to travel, collect/display things, give/attend shows, or take pictures?
• Are you small, large, strong?

Make a list of your likes and dislikes.  Keep a diary of things you do that relate to business and rate each entry from 1 to 5 based on your interest.  Then prepare a list of your strengths, weaknesses, opportunities and concerns.  After doing all that, you should have a list of candidate businesses that are right for you.  Then you can make a list of the “candidate businesses” and rate them from 1 to 5 based on your own chosen criteria.



Some criteria could be is it feasible, low in cost to establish, meets my objectives, will make money, there is a “niche” market of existing customers, or it will produce residual income to name just a few.



By the time you’ve accomplished all that, you should seriously consider visiting the local chapter of S.C.O.R.E. or your own mentor to use as a sounding board for your plan.  Next week, if I haven’t dissuaded you so far, we’ll cover the Planning Phase.

Security and Finance

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When you hear the term “Security Finance” you might think about collateral.  When you go to the bank to secure a loan for a new car or a home, the bank will look at what you already own and they often refer to that as “security.”  In days past, that was the definition most recognized with the term, but today it means something a bit different.

Security finance can fit into two categories:

Debts

Equities

When considering security finance as it relates to debt the term is often used in reference to things like bonds.  Bonds are generally issued to one person by another person who owes them money.  Some common types of bonds are the bonds issued by the government.  In this type of security finance, the bond is taken out for a specific time with an agreement that once that time has elapsed, the bondholder will be entitled to the face value of the bond along with interest at a pre-determined rate. 

These types of bonds were extremely popular years ago when people would buy government bonds as a savings technique.  The interest payable is low though and although they do garner a profit, it’s generally modest. The Best Finance Tips are those that help the consumer yield the biggest profit with the least risk.

Another type of bond that people think of when they consider security finance is Eurobonds.   Eurobonds sound exotic but in essence they are bonds from another country.  The investor places money into a bond in a foreign country. 

In terms of security finance when you are referring to equity that generally means shares or stock in a company.  Stock is the money raised by a company through the sale of company shares.  With many popular companies going public and giving anyone the opportunity to purchase shares, it’s not uncommon for a person to hold shares in several well-known corporations.

Security finance in this sense is thrilling to the average worker who purchases a share and then follows the stock market carefully wanting to see how his investment is doing.  Many people see this as a beneficial addition to their financial portfolio. 

Having some understanding of the Best Finance Tips is essential though if you hope to make a profit by investing in shares.  A share can hold a modest value one day and then shoot up substantially the next.  For many investors this would be the time to sell to see that immediate profit, but those schooled in security finance understand that the stock market can be unpredictable.

There are trends in the stock market and if you have an understanding of security finance you’ll know that following the market is crucial to success.   The critical components to success are what to purchase and when to purchase it. Recognizing the Best Finance Tips and following them will help you with knowing how to read the stock market.

Security finance is an exciting area for even the modest investor.  Getting the knowledge you need is as easy as taking time to research the area you are interested in.  Regardless if you have five dollars or a million dollars to invest you can make a profit if you keep a level head.

SHARPEN YOUR FINANCIAL EDGE

SHARPEN YOUR FINANCIAL EDGE BY CHANGING YOUR ATTITUDE

Everyone has advice and ideas about how you can handle your finances and the way you treat money. Some say to save at every opportunity and watch every penny, some say pay off all your debt first before you even think about investing, others advocate that you live within your means, and all of these strategies have Merritt, and can even propel you forward. But think for a moment what really motivates you, what drives you to grab your finances by the throat and corral them into submission, to bend to your will and carry you on your desired path? A better standard of living for you and your family, are you tired of living from substandard point of view? well what ever motivates you to change your attitude it is always best to have as much understanding and knowledge as possible so lets explore some mantras of the rich,who knows maybe you can find a “take away point” that can help you turn that corner to financial independence.

Having the attitude that you are the master of your own future and you do not have to fall prey to the status qua is vital. People with this mindset are more likely to take responsibility for their lives, their success's as well as their failures and are more prone to learn from their mistake and failures. They will normally examine what they did wrong and make improvements and adjustments. They don't blame others or make excuse but find results which leads to them becoming successful and accomplishing their goals.

Having a “CAN DO” attitude can be the difference of waking up in the morning with a purpose and getting fired up for the day ahead or waking up in the morning and throwing the alarm clock at the wall and hating the day you were born and pulling the covers back over your head. Persons who believe that what they do has an impact on the world in real time are more likely to work hard to change their circumstances. While some may have a “victim” mentality when they awaken to the fact that they can change their circumstance nothing makes them more angry and determined to change their attitude toward wealth.

No one wants to be lead buy a person who has a lacking self-confidence and is weak in making the tough calls. But those who are confident, even over confident bordering on the fringe of arrogance has the ability to draw the masses to his point of view. People gravitate to those whom have strong conviction about their point of view because they are strong and willing to take risk and stand back up after a failure to try again. If by chance they stumble or even fall the manage to do it gracefully. They own up to the circumstance and move one by their head and shoulders down and work hard to prove themselves again.

Many of use have a fixed perspective about our abilities, and some may even think that they are not smart enough gain wealth. They see themselves as stupid and ignorant but I think it is more related to fear, fear of failure, fear of losing, fear of being ridiculed by their piers but if a person can over come these fears and negativism they can overcome all the regrets and fallacy's. The only thing that should matter is where is the best place to put that investment dollar that will give me maximum return.

Proceed without regrets and be a little anxious about your money. Having this attitude will give you a healthy availability about your money and keep you motivated to strive to protect it and your earnings. To show vigilance is better than overspending or gambling it away. Many take unnecessary risk when they come into extra money or money that isn't earned from work like a tax return or an inheritance but that money is the same as any other money and should be treated with respect. Spend those dollars as you would any other dollars you may acquire.

Strange Bedfellows

Strange Bedfellows

June 1, 2017 • Karen DeMasters
Financial advisor Chad Willardson worked very hard recently to get elected to a job that had no financial training requirements whatsoever—treasurer of Corona, Calif.

In that position, he is in charge of investing the city’s $250 million bond portfolio. His predecessors were in charge of the same fund, but he says they didn’t have his financial or investment training. They came into the job cold.

More often than people realize, elected officials in the U.S. have no financial training when they are put in charge of public budgets and pension funds on the local, state and national levels. Even when an official is not directly in charge of a financial department, he or she is frequently expected to weigh in on the financial consequences of legislation.

Sometimes financial advisors or those with similar backgrounds decide to tackle the rigors of campaigning and accept public offices themselves, but it doesn’t happen enough, say industry people.

Willardson, the founder and president of Pacific Capital, a wealth management and financial advisory firm, never had any political ambitions himself. But he wanted to make things better in the community where he and his family work and live. Leaders in Corona, a growing city of about 162,000 residents, asked him to run for treasurer in a nonpartisan election, and he is now starting his first four-year term.

“A lot of cities are in financial trouble and there are many of us with financial expertise who can make a real difference,” he says. “Managing the city’s portfolio was like taking on a new client for me, but it is a very important client. It was easy to fold this in with what I already do as a business.

“I don’t think we can afford to place our investments in the hands of politicians,” he says.

Willardson is using the same resources for the city that he uses in his business, and he has brought in a third party analyst to help show the officials how the city can increase yield and reduce costs on its investments. “My goal by the end of four years is to show how much we have improved with our investments,” he says.

The ways advisors get into the public arena differ, but the goal of effectively influencing public policy so that financial consequences are taken into consideration is the same for most. Some advisors who have taken the public servant plunge are battling financial issues on the state level. Heather Bishoff, co-owner and chief financial officer of Bishoff Financial Group in Worthington, Ohio, an asset management and retirement planning firm, started with a seat on the local board of education when she saw teachers being let go and programs being cut. But she soon found that school funding is a state issue.

She is now a Democratic member of the Ohio House of Representatives in her third two-year term facing numerous challenges in a state ranked fifth worst in the United States for taxes. “It was extremely intimidating to run for office, but we need more people who are financially minded to be at the forefront of these issues. There are public policy issues on expenditures and taxes that affect people on a day-to-day basis,” she says. “We have to put our money where our mouth is, so to speak.”

“I’ve had my say, but, despite my pleas, Ohio has raised a lot of taxes,” she says. “What tends to happen when non-financial people make decisions about public policy is they trip over a dollar to save a penny. As financial advisors, we think long term and for taxpayers it should be the same. I am too passionate about this to see shortsighted public policy made. As financial advisors, we know you sometimes have to make investments up front to save money later on.”

As an added bonus, Bishoff says her children love her holding public office. “They feel special. They know I am good for a peanut butter sandwich for them, but I can also stand on a mountain with a sword and let my opinion be known if need be.”

Another bonus is that holding public office can give a financial advisor added exposure, says Doug Lyons, founder of Douglas J. Lyons Financial Group, a wealth management firm in Red Bank, N.J. Lyons was encouraged to run for office in his hometown of Bay Head, N.J., he says, but commuting to New York City every day left him with little extra time. After opening his own business in the suburbs, he had more time.

A Republican, he is now in his second three-year term as a Bay Head councilman in charge of the finance committee. Lyons encourages all financial advisors to serve in public office as a way of giving back to the community. Being in public office gives an advisor more attention but it also means taking the good with the bad, he notes.

“People will unload their complaints about local issues on you at parties, but as a financial advisor you deal with all kinds of individuals, so you can bring a unique skill to the table in knowing how to deal with people,” he says. “Absolutely, I would encourage other financial advisors to run for office.

“In Bay Head, there were issues in the finance department that needed to be dealt with and I think I brought a new perspective that would not have been there without me,” Lyons adds. Since he has been on the council, he has helped deal with full-time and part-time employee issues.

Advisors in general often show a high level of engagement in their communities, some by running for public office, others by taking different actions, says Blaine Aikin, chairman of the Certified Financial Planner Board of Standards Inc.’s board of directors.

“Financial advisors are highly engaged in people’s lives and understand behavior and they know how to bring reality into the picture,” Aikin says. “Sometimes what we want to do is not realistic: Advisors have to point this out all the time, so they know how to work with people to show them what the trade-offs of proposed legislation might be.”

But being in politics can be divisive, and some advisors may not be comfortable with that. “Many people may not realize a public official needs to be a fiduciary, just like a financial advisor needs to be one,” Aikin points out. “They need to act in a way that is best for their constituents” on decisions about whether to, say, pursue revenue growth or focus on other goals like land preservation. In this way, they are acting just as advisors need to act—in the best interests of their clients, he says.

Many advisors still hesitate to jump into the political arena, adding more work to what is probably an already busy life and potentially creating enemies along the way, says Paul H. Auslander, the former Financial Planning Association president and chair, who has held leadership positions in the financial community nationally and in Florida where he works and lives. Auslander is the director of financial planning at ProVise Management Group LLC, a fee-based financial planning and investment management firm in Clearwater.

He was selected in 2007 by Florida’s chief financial officer to serve on the state’s first Financial Literacy Council for a four-year term. The council, created by the Florida Legislature, was asked to study the financial issues that affect consumers without basic financial knowledge. The council made recommendations to the legislature on how to help consumers increase their knowledge of these issues.

Auslander is known for urging financial advisors to apply their skills to public policy issues by taking on elected and appointive offices. “Financial advisors in public offices are needed more now than ever, but many do not run because of the time-consuming complications of dealing with their own compliance issues for their firms, or because of a disdain for the political process,” he says.

“I would like to see them do it because they see it as a noble method of service, but most are not interested,” he says. “Some cataclysmic event may spur them to act, but they should not wait until something drastic happens.”

The U.S. Department of Labor’s fiduciary rule, which requires advisors who deal with retirement planning to act in the best interests of their clients, is a perfect example of a law that needed more financial experts weighing in on it, Auslander says. The rule is now set to go into effect in June. “The rule was a great idea in concept but then something went wrong and it is just bad legislation now, which is a shame,” he says.

The reward for those who accept the challenge of being in public office is that “you feel like a public piñata,” says Frank Astorino, a Republican councilman in his third term in North Caldwell, N.J. He heads the Astorino Financial Group, a wealth management and financial planning firm in Fairfield, N.J.