thinkBIG Le a d e r s B u s i n ess Mindset Wea l t h
$7.95 inc GST Volume 2.3 Oct/Nov 09
PAT MESITI How prosperity can also be profitable How to manage your time effectively
PLUS
• Ways to encourage your kids to think big
• Turning conflict into opportunity • 30 success traits • 15 proven ways to attract money
Nelson Mandela How one man’s mindset changed the world LEARN HOW TO RAISE CAPITAL: Free seminar tickets valued at $990 (pg 75)
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CONTENTS REGULARS 8 Editor’s Letter 10 Notes to Self 14 As You Think 68 Dream Big: Ford’s retro supercar 70 Thought Leadership: Books to make you thinkBIG 72 Calendar of Events
section1:mindset 20 Joe Vitale: The greatest money making secret in history 22 Todd Hutchison: Overcoming the fear of public speaking 24 Kym Tucker: Encourage your kids to think big 26 Michelle Brennerr: Isn’t it awful to isn’t it awesome 30 Roger La Salle: What’s your Innovation trajectory?
section2:business 38 Reuben Buchanan: Now is the time to raise capital 39 Carly Crutchfield: Property and finance Q&A 40 John Leighton: Leveraging the stress of investment 42 Michelle Murchison: How finance rules are changing 46 Daniel Kovacs: Top 10 trademark mistakes and how
to avoid them
46.
16. Nelson Mandela: Nation Builder While some critics have questioned Nelson Mandela’s past actions, there is no doubting his commitment to peace and honest leadership.
section3:wealth 52 Peter Wink: How to manage conflict during negotiations 54 Rob Nixon: Million dollar traits 57 Aussie Rob: Shares for rent part 3 60 Jamie McIntyre: The rules of the investing game have changed 62 Chris Howard: Know what you need 64 Glenn Armstrong: Top tips for property investors
features 28 The Wolf of Wall Street’s new success doctrine.
Jordan Belfort spent 22 months in prison paying for his sins.
Today, he travels the globe speaking about transformation and
success principles.
34 The $1 million reason why Pat Mesiti wants to change
your mind
Pat Mesiti is about creating prosperity in every aspect of life,
and teaching people how to take their opportunities.
44 Damian Kay: The FCA and you
You must do your own due diligence when looking into buying
a franchise.
66 Time, a weapon of mass construction
Michael Moore writes that time is infinite if you make it your own.
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WP09
W E N D N A BR
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our team
EDITORIAL What is media’s role?
Publisher Graham Maughan graham.maughan@thinkbigmagazine.com Ph: 02 9994 8963 Fax: 02 9994 8008 Managing Editor Jonathan Jackson jonathan.jackson@thinkbigmagazine.com
Subscriptions Manager Amanda Peros amanda.peros@thinkbigmagazine.com Ph: 02 9994 8963 Fax: 02 9994 8008 National Sales Manager Mark Robberds Ph: 02 9994 8963 Fax: 02 9994 8008 mark.robberds@thinkbigmagazine.com Directors Ken Wood Reuben Buchanan Contributing Editor Chris Howard Contributors Glenn Armstrong, Aussie Rob, Michelle Brenner, Reuben Buchanan, Carly Crutchfield, Jack Delosa, Chris Howard, Todd Hutchsion, Damian Kay, Daniel Kovacs, Roger La Salle, John Leighton, Jamie McIntyre, Michelle Murchison, Rob Nixon, Daniel G Taylor, Kym Tucker, Joe Vitale and Peter Wink Creative Design Maria Conti – Graphic Designer
Enquires info@thinkbigmagazine.com Mindset Media Pty Ltd ACN 129 256 300 ABN 94 129 256 300 GPO Box 519 Sydney Australia 2001 Ph: 02 9994 8963 Fax: 02 9994 8008 thinkbig Magazine ISSN: 1835 7733
Important Message – Copyright and Disclaimer thinkbig magazine is owned and published by Mindset Media Pty Ltd (ACN129 256 300). The publisher, authors and contributors reserve their rights in regards to copyright of their work. No part of this work covered by the copyright may be reproduced or copied in any form or by any means without the written consent of the publisher. No person, organization or party should rely or on any way act upon any part of the contents of this publication whether that information is sourced from a website, magazine or related product without first obtaining the advice of a fully qualified person. This magazine and its related website and products are sold and distributed on the terms and condition that: •The publisher, contributors, editors and related parties are not responsible in any way for the actions or results taken any person, organization or any party on basis of reading information, stories or contributions in this publication, website or related product. •The publisher, contributors and related parties are not engaged in providing legal, financial or professional advice or services. The publisher, contributors, editors and consultants disclaim any and all liability and responsibility to any person or party, be they a purchaser, reader, advertiser or consumer of this publication in regards to the consequences and outcomes of anything done or omitted being in reliance whether partly or solely on the contents of this publication and related website and products. •The publisher, editors, contributors and related parties shall have no responsibility for any action or omission by any other contributor, consultant, editor or related party.
Stock Limits Everything you need to become a successful telco.
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Jonathan
If you’re entrepreneurial and want to start a business, then start with a system
In a box.
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M
y personal trainer and I were speaking recently about the role of media. It was almost a matter of defending the indefensible, as I tried to explain why some reports worked, while others weren’t even given the time of day. Her beef with media was that every newspaper item she read, or news report she watched was a depressing indictment of a society that had turned against itself. Granted what we see and read usually reflects the maddening of a disenfranchised youth, people losing their homes, radio hosts crossing decency lines, cute dogs nervous after having their ears and tails lopped off, or the world on the brink of war; these are serious times and what is needed is serious reportage on matters that matter most. Instead we endure emotive or divisive foot in the door reporting that is just as intrusive or violent as the incidents that require coverage. The media now panders to pop culture and celebrity and uses hype to get its message across and, yes, it is sometimes hard to defend. However, I love the media because beyond the 6pm to 7pm news and the hyped headlines, there are journalists and editors still intent on bringing important messages to bear on a hungry-for-good-news-and- information audience. The doom and gloom reported by news stations masks the important stories. For every sinister nightclub bashing perpetrated by a wayward or angry youth (and I do believe they should pay for their crimes, because everyone has a choice), there are groups such as Whitelion and Reach who are helping the less fortunate kids become model citizens. There are plenty of examples of humanity overcoming the ills to which we bear witness and report on. Most good deeds are perpetrated by those who believe they are doing their civic duty; their 15 minutes of fame matters little in the face of adversity (unless you’re the chk chk boom girl). Some of these stories make headlines, but most don’t as people have no desire to hog the limelight. And that’s fine; it’s their right to remain anonymous. However, in these cases it is important that the media uncovers the stories that counter the bad and prove, undeniably, that there are more good stories in the world than gruesome as my trainer seems to think. It’s time for the media to win back the confidence of its readership and audience by thinking beyond the numbers and realising that ratings might improve if coverage is based on those who think big, rather than those who commit to small minded actions. TB
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Notes to self
21 CENTURY ST
EDUCATION
Feet AND the ten second personality test
Back to basics
Too many Australians are turning to painkillers for a short term fix and failing to recognise the importance exercise, diet and posture in reducing on-going pain, according to research undertaken by the Chiropractors Association of Australia (CAA). The independent research, commissioned for National Chiropractic Care Week which took place May 18-24 found that 45% of Australians choose to take a painkiller that has no long-term benefit for back pain sufferers. Despite the burden of back pain, the majority of Australians still consider themselves to be in good health even though three quarters of respondents don¹t take the recommended amount of daily exercise. The research found that Australians could potentially reduce the chances of suffering frequent back pain by 18%, just by exercising for at least 30 minutes a day. Reducing stress was another key factor found to reduce the likelihood of back pain. CAA National spokesperson Patrick Sim said, “Lack of exercise is one of the key contributing factors to back pain and poor spinal health along with other lifestyle choices such as diet, smoking and poor posture. It¹s not just back pain, it¹s the big picture.”
By Durk Dugan AssociatedNews.US One of the Internet’s top dating gurus, Mr. L. Rx of DatingToRelating.com is claiming that the angle between one’s feet while walking has a very high correlation with your personality. Now personally I find that a little disturbing. My guy friends already tell me that when it comes to women “I am an open book” and my “thoughts are written all over my face”. To have to confront that I am not only an ‘open book’ but ‘open feet’ is a little too much for this reporter. Not so for Mr. L. Rx, who says that he learned from a chiropractor that the angle between one’s feet is regulated by an organ and muscle group that is monitored by the emotion of fear. The angle between one’s feet is thus related to the relative amount of fear one has mixed up in their personality and that leads to a prediction system that Mr. L. Rx claims is 80 -90 % accurate and observable within a few seconds of meeting a person. “Now, ‘fear’ is a very important emotion when it comes to personality typing,” writes Mr. L. Rx. “No fear makes a man very brave. A little fear makes him conservative, a lot of fear makes him very afraid and add more fear and he is terrified. If an angry man has fear mixed in with his anger he becomes covert and backstabbing.”
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What are you thinking?
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ThinkBig understands that without our readers there is no magazine. That’s why we want to hear from you and give you a say in what content you would like to see, who you would like to read about, what you would like to read more about and any general comments with regard to personal development, finance, health or wealth you might have. For next issue (2.4), we will integrate a ‘Your Thoughts’ section and would like you to write in with any comments you feel are appropriate to thinking big and living a fulfilling life. We also want to know what you think about our magazine. So if you have anything you would like to put forward or get off your chest, pick up your pens or sit at the screen and send us your thoughts. You can contact ThinkBig at: jonathan.jackson@thinkbigmagazine.com.au or send letters to ….
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“If you are looking to accelerate your financial results and create an extraordinary quality of life – then Jamie’s book is for you! This book is a must-read for anyone wanting to excel and expand their knowledge. Jamie is one of Australia’s most forward thinking educators and a fantastic teacher!” www.thinkbigmagazine.com thinkbig 11 Dale Beaumont, Creator of the Secrets Exposed Series
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As you think “Leadership: The art of getting someone else to do something you want done because he wants to do it.”– Dwight D. Eisenhower “Misfortunes, untoward events, lay open, disclose the skill of a general, while success conceals his weakness, his weak points.”– Horace “To be a great leader and so always master of the situation, one must of necessity have been a great thinker in action. An eagle was never yet hatched from a goose’s egg.”– James Thomas “The best way out is always through.”– Robert Frost “Nothing contributes so much to tranquilise the mind as a steady purpose—a point on which the soul may fix its intellectual eye.” – Mary Shelley “Men do less than they ought, unless they do all they can.” – Thomas Carlyle “First say to yourself what you would be; and then do what you have to do.”– Epictetus “They can because they think they can.” – Virgil “I cannot give you the formula for success, but I can give you the formula for failure—which is: Try to please everybody.” – Herbert Bayard Swope “Success is the good fortune that comes from aspiration, desperation, perspiration and inspiration.“– Evan Esar
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As you think “Try not to become a man of success but a man of value.” – Albert Einstein “Life is either a daring adventure or nothing.”– Helen Keller “The best way to prepare for life is to begin to live.” – Elbert Hubbard “You cannot depend on your eyes when your imagination is out of focus.”– Mark Twain “The best way to make your dreams come true is to wake up.” – Paul Valery “Let us not say, ‘Every man is the architect of his own fortune’; but let us say, ‘Every man is the architect of his own character.” – George Dana Boardman “Goals are the fuel in the furnace of achievement.” – Brian Tracy, Eat that Frog “The significance of a man is not in what he attains but in what he longs to attain.” – Kahlil Gibran “It is the trouble that never comes that causes the loss of sleep.” – Chas. Austin Bates
Blooper quote “If at first you don’t succeed, try, try again. Then quit. There’s no use being a damn fool about it.” – W.C. Fields
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thinkBIG cover story In one symbolic move in 1995, elected President Nelson Mandela came out in support of the Springboks and united a divided nation. It was one moment when history and sport merged and put Mandela’s moral authority, integrity, compassion and commitment to reconciliation on global display. It is these attributes that has made him the icon he is today writes Jonathan Jackson.
Nelson Mandela:
Nation Builder S port is a uniting force, a great dividing range, a mixture of joy, passion, fury and volatility. In the United Kingdom, supporters of football teams endure their own form of apartheid as League grounds are segregated between rival supporters. In South America men have been known to be killed in anger or celebration depending on their teams’ fates. In South Africa, passionate rugby supporters had no international team to support as the Springboks felt the full force of the Commonwealth enacted Gleneagles agreement in 1977, which prohibited rival countries from engaging in any sporting contact with the excluded nation. The Gleneagles agreement was formulated following one of South Africa’s bleakest moments, the Soweto riots in 1976. In response, 28 countries boycotted the Summer Olympics. At the time of the riots and throughout the boycotts, Nelson Mandela sat idly in a South African jail cell, where the future president had hit upon the powerful appeal of rugby to the Afrikaner. Using the sport as a common interest, he gained favourable treatment from his guards. Yet, even within the confined spaces of prison – where he spent nearly three decades of his life – he never backed down from his political beliefs, protests and vision. He became a source of inspiration and strength to fellow prisoners and remained a beacon of hope and peace for those outside. Yet it is the manner in which he used rugby to attempt to unite the ‘Rainbow Nation’, that illustrates how bold and audacious he is and how his leadership has held firm since he first joined the ANYC at the height of WW2. On Sunday 11 February, 1990 Mandela was released from 27 years of incarceration. Shortly after his release his delegation agreed to suspend their armed struggle. Recrimination and hate was still rife. Old South Africa was coming to terms with the changes, new South Africa was revelling in a newfound freedom; the walls may have been torn down but the divisions remained. As the legal apparatus of apartheid was abolished, the Springboks were readmitted to international rugby in 1992.
And Mandela knew he could make a nation building impact. It took three years for the team to regain momentum, the announcement that South Africa was to host the 1995 World Cup, changed not only the sporting landscape, but the political landscape as well. During this period, Mandela was moving behind the scenes to win black South African support for the Springbok jersey, one of their most hated symbols of apartheid. Rugby was the sport of the oppressor and at any home game this crowd could be found supporting the rival team. Mandela spent an entire year eroding the hatred, convincing the black population that the new Springbok slogan, ‘One team, one country’ was reality, not myth. Mandela was working on two fronts. Within days of his inauguration as president in 1994 he sent for François Pienaar, the Springboks’ captain. Mandela describing Pienaar said: “You looked at him, you considered where he came from and what you saw was a typical Afrikaner.” Yet Mandela is known for not judging the book by its cover: “He did not seem to me at all to be the typical product of an apartheid society,” Mandela said. “I found him quite a charming fellow and I sensed that he was progressive. And, you know, he was an educated chap. He had a BA in law. It was a pleasure to sit down with him.” Pienaar grew up in a working class family in Vereeniging, a town in part held responsible for the deaths of 69 gunfire fleeing black demonstrators from the neighbouring shanty of Sharpeville. Pienaar was nervous upon meeting Mandela for the first time and not for good reason. “We were a typical, not very politically aware working-class Afrikaner family who never spoke about politics and believed 100% in the propaganda of the day.” Five minutes into the meeting Pienaar relaxed. “It’s more than just being comfortable in his presence,” Pienaar recalled. “You have a feeling when you are with him that you are safe.” Winning Pienaar over and thus the entire Springbok team was
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“I would like to be remembered as part of a team, and I would like my contribution to be assessed as somebody who carried out decisions taken by the collective.” www.thinkbigmagazine.com
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cover story BIG feature thinkBIG mission accomplished for Mandela. “He talked about the power that sport had to move people and how he had seen this not long after his release in the Barcelona Olympics, which he especially remembered for one particular moment when he said he stood up and he felt the whole stadium reverberating,” said Pienaar. In a stadium of 63,000 people at the Rugby World Cup, where all bar 1,000 were white Afrikaans, Mandela would have given his bodyguards palpitations. Yet he stood up as President before the match in his Springbok jersey and was cheered by the very people who would have ignored him in the polls a year earlier and called him a dangerous terrorist in years gone by. Indeed, he has been referred to by Mandela: The Authorized Biography author Anthony Sampson as being an impulsive activist with a quick temper. Mandela does not disagree with this assessment saying on his foundation website that: “One was angry at what was happening – the humiliation, the loss of our human dignity. We tended to react in accordance with anger and our emotion rather than sitting down and thinking about things properly. “But in jail – especially those who stayed in single cells – you had enough opportunity to sit down and think. And you were in contact with a lot of people with a high education and who were widely travelled. When they told of their experiences, you felt humbled.” What changed in Mandela was not the quality of his leadership or presence, but the way in which he led. Upon leaving prison he had transformed into a man who knew his mind and feelings. He says that one of the most powerful forces of change was thinking about how he had behaved and reacted to generosity and compassion expressed toward him in the past. “One of the most difficult things is not to change society – but to change yourself.” Thus, as a changed man, and as President of South Africa Mandela set out to transform the nation through compassion, which brought understanding to those wronged by injustice as well as those accused of perpetrating the injustice. And that understanding culminated in a game of football. It was the fairytale tournament for South Africa. The All Blacks (New Zealand internationals) were the most feared team in the world, unconquerable, revered. But just as Mandela had achieved the impossible in uniting a nation, the Springboks repaid the favour. It was a shrewd but politically triumphant move. Mandela had completed the same charm offensive which he had executed with consummate skill for more than a decade, handing the trophy to Pienaar saying, “Thank you very much for what you have done for our country.” “Mr President,” replied Pienaar, “it is nothing compared to what you have done for our country.” Such was the achievement of the man, the team and the nation, Archbishop Desmond Tutu was moved to comment, ‘Quite unbelievable, quite incredible, what happened. It had the effect of just ... turning around the country. It was an incredible transformation. An extraordinary thing. It said, yes, it is actually possible for us to become one nation.” Mandela’s legacy while not complete changed national and global perception and proved that the fight for respect and inclusion can be achieved through peaceful means. TB
Mandela’s
life of achievement 1918 – Born Rolihlahla Mandela at Mzevo in the Transkei
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1925 – Attends primary school near Qunu (teacher can’t pronounce Rolihlahla so names him Nelson) 1940 – Expelled from the University College of Fort Hare
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1941 – Starts articles at the law firm Witkin, Sidelsky & Eidelman
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1942 – Completes BA through UNISA 1943 – Enrols in LLB at Wits University, joins ANC and co-founds ANC Youth League (ANCYL) 1948 – Elected national secretary of ANCYL 1951 – Elected president of ANCYL and begins defiance campaign 1952 – Sentenced to nine months prison hard labour 1960 – ANC is banned. 1961 – Forms militant movement Umkhonto weSizwe
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1962 – Leaves country for military training 1964 – Sentenced to life imprisonment 1982 – Rejects an offer by President PW Botha for release if he renounces violence 1990 – Released from prison
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1993 – Awarded Nobel Peace Prize with FW de Clerk 1994 – Elected as first President of a democratic South Africa 1999 – Resigns after one term 2002 – Launches global HIV/AIDS campaign 2003 – Establishes Mandela Rhodes Foundation
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2004 – Retires from public life
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giving The greatest money making secret in history
By Joe Vitale
If you want money, you only have to do one thing. It’s the one thing some of the wealthiest people on the planet have done and are doing. It’s the one thing written about in various ancient cultures and still promoted today. It’s the one thing that will bring money to anyone who does it, but at the same time most people will fear doing it. What is that one thing?
J
ohn D. Rockefeller did it since he was a child. He became a billionaire. Andrew Carnegie did it, too. He became a tycoon. What is the greatest moneymaking secret in history? What is the one thing that works for everyone? Give money away. That’s right. Give it away. Give it to people who help you stay in touch with your inner world. Give it to people who inspire you, serve you, heal and love you. Give it to people without expecting them to return it – but give it knowing it will come back to you multiplied from some source. In 1924 John D. Rockefeller wrote to his son and explained his practice of giving away money. He wrote, “…in the beginning of getting money, way back in my childhood, I began giving it away, and continued increasing the gifts as the income increased...” Did you notice what he said? He gave away more money as he received more income. He gave away $550 million dollars in his lifetime. PT Barnum gave money away, too. As I wrote in my book about him, “There’s A Customer Born Every Minute,”- Barnum believed in what he called a ‘profitable philanthropy’. He knew giving would lead to receiving. He, too, became one of the world’s richest men. Andrew Carnegie gave enormously, too. While some might argue that these early tycoons had the money to give, so it was easy for them, I would argue that they got the money in part because they were willing to freely give. The giving led to the receiving. The giving led to more wealth. Today it’s fashionable for businesses to give money to worthy causes. It makes them look good and of course it helps those who receive it. Anita Roddick’s Body Shop stores, Ben Cohen and Jerry Greenfield’s ice cream, and Yvon Chouinard’s Patagonia are living examples of how giving can be good for business. But what I’m talking about here is individual giving. I’m talking 20 thinkBIG
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about you giving money so you will receive more money. If there’s one thing I think people do wrong when they practice giving, is they give too little. They hold on to their money and let it trickle out when it comes to giving. And that’s why they aren’t receiving. You have to give, and give a lot, to be in the flow of life to receive. I remember when I first heard about the idea of giving. I thought it was a scheme to get me to give money to the people who were telling me to do the giving. If I did give, it was like a miser. Naturally, what I got in return was equivalent to what I gave. I gave little. I got little. But then one day I decided to test the theory of giving. I love inspiring stories. I read them, listen to them, share them, and tell them. I decided to thank Mike Dooley of tut.com for the inspiring messages he shares with me and others every day by email. I decided to give him some money. In the past I would have given him maybe five dollars. But that’s when I came from scarcity and feared the giving principle wouldn’t work. This time would be different. I took out my checkbook and wrote a check for US$1,000. Mike was stunned. He got my check in the mail and nearly drove off the road as he headed home. He couldn’t believe it. I loved making him so happy. I delighted in giving the money to him. Whatever he did with it was fine with me. What I got was an incredible feeling of helping someone continue doing what I believed in. It was an inner rush to help him. I still rejoice at sending him the money. And then something wonderful began to happen. I suddenly got a call from a person who wanted me to co-author his book, a job that ended up paying me many times over what I
had given away. And then a publisher in Japan contacted me, wanting to buy the translation rights to my best-selling book, Spiritual Marketing. They, too, offered me many times what I had given my friend as a gift. A true sceptic can say these events are unrelated. Maybe in the sceptic’s mind, they aren’t. In mine, they are. When I gave money to Mike, I sent a message to myself and to the world that I was prosperous and in the flow. I also set up a magnetic principle that attracted money to me: As you give, so you will get. Give time and you’ll get time. Give products and you’ll get products. Give love and you’ll get love. Give money and you’ll get money. This one tip alone can transform your finances. Think of the person or persons who have inspired you over the last week. Who made you feel good about yourself, your life, your dreams, or your goals? Give that person some money. Give them something from your heart. Don’t be stingy. Come from abundance, not scarcity. Give without expecting return from that person, but do expect return. As you do, you will see your own prosperity grow. Try it and see. TB
Dr. Joe Vitale is the author of The Attractor Factor, The Key, Life’s Missing Instruction Manual, Zero Limits, and star of The Secret. www.JoeVitale.com
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thought process Overcoming the fear of public speaking By Todd Hutchison
It is hard to believe that public speaking ranks as one of people’s greatest fears, especially when you consider you were naturally born with all the functionality to speak well, and you do it every day.
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he problem is that for those aspiring to become a Chief Executive Officer or consultant, an inability to speak with confidence and clarity can limit your job prospects, slow your leadership opportunities and inhibit your ability to build a public profile. Speaking is a talent needed of great leaders, and speaking with authority that results in people taking action is what leadership is about. Great compelling speeches have led soldiers to war, activists to passionately fight for a cause, and employees toward fulfilling a business’s vision.
As we are not born with this fear, the question is where does it come from and what can we do about it? Consider back to your childhood, the place where many of our fears and doubts begin, based on experiences we have and the meanings we give to those experiences or those we witness. Do you recall the naughty child that was forced by the teacher to stand up in front of the class that became an act of humiliation? It would not be surprising from being directly involved or seeing that happen to a classmate that you fear standing up in front of your colleagues, as this anxiety is a subconscious conditioned response to protect you from being humiliated in this same way in the future. Your subconscious has a positive intent in protecting you, but it became a limiting belief in your adulthood and is hampering your true potential as a confident speaker. You had at that time placed the meaning of humiliation to the act of public speaking. Now that you are consciously aware of it, you can give it a new meaning and suddenly you may find the level of anxiety starts to drop. This new meaning has changed a belief you have carried since childhood, and one that has impacted your performance. To support this new understanding, you also need to realise that speaking is not about you, or even the audience, it is about the content you are presenting and the stories that you bring from your life experiences that help convey the messages. This is why many people become more confident during their speech once they get going and over that initial fear. What is happening is that they start to turn their focus away from thinking about themselves and what people are thinking of them, to the content they are presenting. Once you have changed your beliefs and understand what had been impacting your ability to speak, the only two other factors relate to knowing your topic and having lots of practice. TB
Todd Hutchison is the National Chairman of the Todd Hutchison is the National Chairman of the Australian Project Management Institute Council, Australian Project Management Institute Council, and Managing Director of of People Rich PtyPty LtdLtd and Managing Director People Rich www.peoplerich.com www.peoplerich.com 22 thinkBIG
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dreams
6. Immerse your kids in their dreams
Encourage your kids to think big!
When you observe your child’s excitement, support them by immersing them as much as is practically possible. Buy books or magazines, take them places where they can experience or learn about their interests, including trips to the library; support them in their research and if possible introduce them to mentors. Even if turns out to be a ‘fad’ your child will experience the process and know you are there to support them. Give your child a blank canvas and they may surprise you with their masterpiece.
7. Be a great role model Many of us learn by observing and following others. A great gift you can give your child is to be a big thinker, dreamer and planner yourself. When you take the time to discover your own
purpose, follow your own dream and live by your own values, you are validating the importance for your child. Your dream or vision doesn’t necessarily need to be huge (although it can be), as it is often the simple, congruent things which make a huge difference. Regardless of how old your child is, include some of these suggestions into your daily life and be ready to watch and learn from your child’s unlimited, unique potential. TB
Kym Tucker is a parent, teacher, business consultant and life coach who develops empowering programs to raise awareness for parents and businesses. www.journeyofdreams.com.au
By Kym Tucker
Finding inspiration in life – to clarify our dreams or find what we love to do – can be a long journey of experimentation, success and failure.
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ften we need re-train our thought process, become aware of our limiting beliefs, learn new skills, ignore the ‘nay sayers’ and find support to acquire our chosen goals. But do our kids need to follow the same path to get what they want? As a parent how can you encourage your kids to think big? Here are seven suggestions for independent thinkers who aspire to big visions.
1. Listen to your kids! One of the best ways to encourage your child to consistently express their thoughts and feelings is to listen to them. This may sound easy but can you stop and really listen to them without judgement or ridicule, regardless of what they say, however silly or outrageous, impractical, illogical or crazy? Listen not only with your ears but with your body language too. Rolling your eyes, frowning, turning away or just pretending to listen are all dismissive and powerful rejections for your child. Think of a time when you were excited to share something and it was quickly dismissed. It can be disheartening and disempowering. Your child doesn’t have a level of awareness to understand your intentions and is likely to interpret your disinterest or dismissal as their own unworthiness. With a busy lifestyle it may not always be possible to stop and focus on your child, but as their parent it is vital to allocate quality listening time. If your child picks a bad time, let them know a time when you will listen and ensure you stick to it – consistency is important.
2. Encourage your child’s imagination When listening to your child express big ideas, ask them to clarify the details to develop their visions. Most of us think in pictures, so ask kids to describe their pictures. What does it looks like? Who is with them? Respond to their answers with enthusiasm and allow their story to build. When encouraged to build their visions and develop their imagination your child will gain confidence in communication, problem solving, purpose, clarity and determination. Nurture their imagination and creative thinking
process by asking questions and rewarding their responses. Einstein said ‘Imagination is more important than knowledge’.
3. Value your child’s input Ask your kids for their ideas and suggestions for daily activities – the evening meal, driving to school, weekend activities or coming events such as birthdays. An older child could plan a family holiday or be involved in other family research, such as a new car or decorating their bedroom. Of course there is no point asking for your child’s input if you are not prepared to listen or at least act on some of their suggestions. Only give your child choices which you are prepared to follow through with.
4. Focus on ‘what’ your child’s dreams are not ‘how’ they will achieve them! When listening to your child’s ideas, focus on and encourage the ‘what’ rather than the ‘how’. What does your idea look like? What does it involve? When it comes to encouraging big thinkers, the ‘how’ is not important at conception. There will be plenty of time to research and clarify the vision, so leave the ‘how’ to the natural consequence of the process. For those familiar with Napoleon Hill’s Think and Grow Rich, Henry Ford had the vision of developing a V8 engine. Where his team told him it couldn’t be done Ford’s vision held strong until it was achieved. Encourage your child to hold on to their dreams and don’t dismiss their ideas just because they or you don’t know how to achieve them.
5. Don’t burden your child with limiting beliefs When listening to your child be aware of your own limiting beliefs and keep them out of the conversation. When you are listening to your child’s amazing ideas and you are aware of thoughts that begin something like ‘that won’t work because...’ or ‘that’s not possible because...’, bite your tongue! Say nothing. Just listen. They don’t need, or want you or others to build obstacles across their path. If their ideas are something they really want, they will find a way to achieve them with your support.
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TransforminG Isn’t it awful to Isn’t it awesome!
By Michelle Brenner
Conflict resolution values human dignity over material exploitation, and is a field whose practice focuses on reconstructing dignity in the midst of conflict.
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o you remember that in those days blaming and finding fault was the normative practice of management? Even humour has its downside, remember those mother-in-law jokes, those blonde jokes and Jewish jokes? Being a mother-in-law, a woman and a Jew certainly makes those jokes personal to me! The field of conflict resolution came into our world-view after the WW2. This was the war that should never have been because we had discovered technology, because WW1 was said to be the war to end all wars, and we had great leaders in England and America. The holocaust, which murdered over 6,000,000 Jews and millions more in other minority groups, should never have been because culture was educated, sophisticated and democratic. Nevertheless it happened and in our lifetime. These happenings took the attention of thinking people from across the spectrum of law, sociology, science, anthropology, psychology, religion, politics, counselling, business and art, to name a few. People from all walks of life put their attention on the question ‘why are we not living in peace?’ as well as ‘what are the ways of peaceful living’. Academics came up with all sorts of research projects; searching for the aggressive gene, identifying cultural reasons, and looking for alternative pathways. I wonder how far we have come in practicing peaceful living? Despite the field of peace studies and conflict resolution, there are still wars, genocides and indignities that are part of democratic societies. How far have we really come? Popular conflict resolution is so much a part of management and law in modern society, so here are some of the understandings that lie behind mediation and conflict resolution.
that are universal: • Physical – for warmth, safety and bodily satisfaction in order to live. • Psychological – to keep us happy, content, and mentally/ emotionally satisfied. • Spiritual – the internal drive for connecting to something or someone outside of ourselves, the drive for love, the drive that links us to our past and to the future. Cultures, personality types and society have differed in the way they have traditionally supported and met these needs. Diversity has existed from society to society even from person to person. For example, books, schools, television, radio and story telling satisfies the need for meaning. However, this may conflict with the need for a good identity. There is also diversity in the degrees of satisfaction; what may satisfy one person’s need for meaning may only whet the appetite for another. By understanding that human needs come with life, but that the satisfier may vary from person to person or group to group, a pragmatic framework is created for analysing conflict and working towards resolution. We then begin our problem solving by exploring two themes: 1. What is the underlying need that is being frustrated or in conflict? 2. What is the uniqueness of the people involved? This will be the makeup of what will work for mutual satisfaction to all parties involved. With this framework there are skills and intentional strategies that create a circuit breaker to conflict. These interventions are aimed towards widening perspectives and broadening reflective thinking in order to satisfy the underlying needs of all involved.
Being human
Attitudes
The theories that underlie conflict resolution are theories that relate to the human condition. This is not limited to psychology, philosophy, sociology or religion, although these are developed specialist areas of study. The underlying premise of the human condition suggests that when human needs are met there is satisfaction and peace and when human needs are not met, there is a high risk for frustration and conflict. What are human needs? Inherent human needs are internal drives
Moving from ‘Isn’t it awful’ to ‘Isn’t it awesome’ is not an easy step. It is often a frightening chasm that is filled with mistrust, misfortune and mistakes. Good skills alone however are not enough to transform conflict or awful situations. Good will is just as important. How do you encourage good will in troubling times? Good will is about putting aside the earnest attempt to get what you want, until understanding and mutual understanding has been reached. Good skills can be of great use, but without the good
In the beginning
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will, there is little chance that the insight understanding offers will be sustained. Insight may be revealed with good skills, but it may disappear just as quickly if there is nothing to hook it onto. The hook is the good will. The good will is warmth, caring and goodness. That is why there is often a need for a third party, to facilitate movement and be the conduit of good will.
Conflict resolution as a looking glass When we put our attention on presenting conflicts that reappear, it can give rise to trends and possibilities. Some of these can be captured in statistical analysis but this leaves out the subjective nature of the uniqueness of each person. Both the objective and subjective components are critical to grasp a clear, holistic multi-dimensional picture of reality. Conflict resolution in the widest possible sense aims at promoting social, cultural and political conditions that are conducive for collaborative relationships and hence peaceful living. This engages people in thinking beyond the known, beyond the conventional towards the imaginative spectrum of investigation, innervation and possibilities. Here the focus is in creating environments that mitigate conflict. When we look around us and accept that we have still much to do to create conditions that are sustainable for all to participate in a good life, we notice that our work is cut out for us. There are three elements that when combined make up conflict resolution; awareness, analysis and action: 1. Awareness – of the context that surrounds the conflict, culture/ social/ personal, awareness of feelings, hopes and dreams, and awareness of the past history. 2. Analysis – means thinking, exploring, reflecting. This is often the hardest for people in distress and the most likely to be constricted. 3. Action – without action, there is no resolution or movement towards resolution. Conflict is very practical; it always has impact and consequences. For conflict to be lessened, mitigated, dissolved or resolved, there needs
to be counteraction.
A square peg in a round hole? Which one adjusts? Clearly there is a distinctive difference to approach conflict from a conflict resolution approach and a traditional conformist approach. The traditional approach searches for fault – finding fault in the human being caused from disobedience to rules, policies or a defined sickness in being. The conflict resolution approach looks for sources that open up thinking, understanding and preventing conflict as well as promotion of values and means that offer human needs satisfaction, specific to the reality of the uniqueness of the human beings involved in the analysis. Human beings are resilient and adaptable, to a degree. Fortunately or unfortunately we discover our limits by being stretched and expected to adjust to conformity. It is the premise of a conflict resolution approach that society and conformity should be the result of conventional wisdom that takes into account the human reality and the environment. In this view individuals do not exist to serve social or institutional goals, rather the other way around: society and institutions are to serve the individuals they cater for. Acknowledging the multiple roles that underlie a person’s life and the privileging of the unique circumstances of the individual are contributions towards a peace building society. In the end, the choice between ideals and bread is an ethical or moral dilemma. Making those choices, supporting those choices, and discerning those choices is what the conflict resolution consultant provides with processes, tools and ethical landscape maps. Creating a culture that supports dignity includes surviving, but a culture that supports survival does not necessarily keep dignity alive. The choice is what our life is all about. TB
As a pioneer in the field of conflict resolution, Michelle have been teaching, mediating and consulting for around 20 years. Post Graduatein Conflict Resolution Macquarie University.
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thinkBIG feature
The Wolf of
Wall Stree t’s new
success doctrine By Jonathan Jackson
Jordan Belfort, America’s most infamous entrepreneur, earned $50 million a year at the height of his powers, but blew it all in a haze of drugs and fraud and spent 22 months in prison. Today, Jordan is a reformed man who travels the global speaking circuit espousing the virtues of transformation and success principles.
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ost would know Jordan Belfort as the ‘Wolf of Wall St’. A man who presided over a firm that swindled investors out of $200 million in a shares fraud that landed him in Federal prison at age 36. There is no doubting the man’s talent as a businessman, yet he will forever be answering questions about his moral integrity. Yachts, planes, women, drugs – stockbroker, in his mind Jordan had it all. As a 31-year-old multimillionaire, he once landed his helicopter on his back lawn, flying with just one eye open because he was so stoned he had double vision. He was lucky not to lose his life; it was the only thing he had left, albeit in tatters, when his excess and greed brought him down. Along the way, he managed to provide over $1billion of financing for various public companies, and held controlling stakes in more than 30 of them. Jordan served his time, is 12 years sober and now a worldrenowned motivational speaker, who assists both people and organisations in breaking through whatever barriers hold them back from achieving success. His life story is currently being examined by Martin Scorcese, with Scorcese’s muse Leonardo DiCaprio playing the Wolf. Filming is to begin in 2010. “To be clear, Jordan is more than a cautionary tale,” DiCaprio says. “For all that he may have done wrong he still stands as an example of the transformative qualities of ambition and hard work. In that regard, he is a motivator without peer. I’ve known Jordan for two years and I’ve been in his company many times but there is nothing quite like his public speaking.” Jordan’s two bestselling books have been published in 43
countries and translated into 18 different languages. He is a frequent guest-commentator on CNN, CNBC, Headlines News and the BBC. He’s acted as a consultant to more than 50 public companies, and has been written about in virtually every major newspaper and magazine in the world, from The London Times to Rolling Stone magazine. Recently, he told his cautionary tale to an Australian audience, presenting four success principles which could be applied to any business, big or small: 1. Manage your state (through your focus and your physiology) 2. Manage your beliefs 3. Have a strategy 4. Raise your standards How do these principles apply to business? We take a look at Rob Cecconi’s Sportsnet Corporation which currently has 26 employees and in 2009/2010 will turn over $15 million in sales. Founded in 1998, Sportsnet Holidays which was founded by Rob was sold to a large travel firm in 2005 who were preparing their company for a listing on the ASX. Their attempts failed and in 2007, the company was placed in the hands of Administrators. Rob purchased the business and its assets back from the Administrators in March 2007 and has built it ever since. Rob is a member of the Entrepreneur Organisation, becoming President on 1 July 2009. Below is how Rob has applied Jordan’s four success principles. 1. The nexus of our organisation are our core values which bind our thoughts, decisions, and actions. Our team agrees with Jordan that the ‘quality of your life is all relative to the emotions you feel every day’. Our core values are constant
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reminders to always display a positive, resourceful and obliging state when dealing with clients, suppliers and each other. 2. Jordan suggests ‘avoiding limiting beliefs’ which is extremely empowering, especially in a competitive business environment. A philosophy of this organisation is to ‘dream with limits’ and it is this belief in our collective ability that drives us enthusiastically towards our business and personal goals. Jordan states that “in life, don’t focus on what you don’t like or don’t want. Only focus on your destination.” 3. We spent the first six months of this year creating a robust growth strategy for the next three years. The entire team owns this strategy which means that as a business, we are extremely focused on our destination. As Jordan states, “where focus goes, energy flows.” It is this exact focus that has allowed our company to grow by 105% in sales and 20 employees in the past 12 months. 4. As a sports travel organisation, we have significantly raised our standards. As Jordan states, any smart company raises its standards and passion lies in adopting extraordinary standards. Our vision statement embodies this principle which is to ‘create a world of wow’. And as Aristotle said, “We are what we repeatedly do. Excellence, therefore, is not an act but a habit.” TB
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what’s next? What’s your innovation trajectory?
By Roger La Salle
There are many approaches taken to inspire insightful thinking into what may be the next big thing for your industry, but do you use a formal procedure? Roger La Salle explains.
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any struggle with the search for new horizons, but in fact the search can be made a lot easier if you plot what is best termed the ‘Innovation Trajectory’ 2008©
Change is for certain
A good starting point is to first agree that there is always a new horizon, or something better. Indeed the very definition of Innovation: Change that adds value is founded on this very notion. To argue with this would have you take the view that whatever you use or are doing today will be the same in 100 years, not likely I suggest. One of the secrets of innovation in any sector is to trace the evolution or development of that industry over time and look at how the offering has changed. Discover this trajectory and the gradient of the trajectory and then ask, ‘what’s next’? There is always a next.
Just like mathematics – but with products & services Innovation trajectory is similar to a mathematical extrapolation. By extending a known graph or curve we can very likely anticipate its new position and find new insights into the business. Do this in a systematic way with your present offering, plot the trajectory and see if you can discover the ‘enablers’ and ‘drivers’ and be first with the next innovation, thus leaving others in your wake.
An obvious trajectory In Roman times mail was delivered by a runner or on horseback, an innovation on this was perhaps smoke signals, or the semaphore. Speed of reliable information delivery has always been of great value. Indeed it was the promise of speedy mail delivery that essentially underpinned the fledgling airline business and spawned the birth of the aviation industry. Had it not been for mail contracts the development of the airline industry would have been severely handicapped. If we were to plot the trajectory of mail and parcel deliveries over the past 100 years one thing would stand out as obvious, people value speed of delivery and will in fact pay a premium for speed. On observing this innovation trajectory with speed of delivery as 30 thinkBIG
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thinkBIG mindset a driver, and technology as an enabler, some clever entrepreneurs moved to fill the gap of the relatively slow mail services and implemented the overnight courier services. Such was the birth of such companies as DHL, FedEx, UPS and the like. Speed of delivery via jet aircraft has now plateaued as the speed of transport jets approaches that of the speed of sound. There are now only two presently available solutions to increase this valued speed: • faster aircraft and/or faster ground transport • faster collection and processing time. While speed may have plateaued, price has not. Competition and technology have been the drivers of lower prices for deliveries, and it would seem this trajectory will ever be on a downward slope. Based on this price trajectory and the plateauing of speed, one must question the long terms benefits of being in this business unless some breakthrough innovation is undertaken. Reuters is another example of a business that ‘innovated’ the delivery of information, simply by offering increased speed. The telegraph was the first move into electronic signalling and a great innovation. Since then we have seen an explosive growth in speed of data delivery with that now approaching the speed of light. The driver is people’s need to know, the enabler is technology. Speed may have just about plateaued, but data volume has not. The volume and content is now expanding at a seemingly unstoppable rate. The trajectory of businesses in the communications sector is clearly headed toward volume data coupled with added security using technology as the enablers, and ever lower price, with competition as the driver.
These are classic examples of innovation of services, determine the trajectory, extend the graph and anticipate what’s next, then innovate to fill the void.
Accommodation is no different Another classic example is the accommodation industry. Many years ago we had the local ‘pub’ providing low cost accommodation, maybe even with a shower and toilet down the corridor to be shared by guests. At about that time we also had ‘guest houses’, which were much the same, but not connected to the local hotel. We then moved to fully fitted rooms and top class hotels as well as the low cost local drive up to your room motel. Since then we have seen the burgeoning business of serviced apartments and even apartments at Caravan Parks. The question now is: what will be next? How can we innovate the present latest offering in short term apartment accommodation to have an even better offering. Be assured the astute people in this business are already looking hard at just that, as for many other businesses. Such innovation based on a plot of the trajectory, a determination of the enablers and drivers should be carried out in a structured way that can produce sometimes quite remarkable insights. TB
Roger La Salle, is the creator of the “Matrix Thinking”™ technique. He is Director and former CEO of the Innovation Centre of Victoria (INNOVIC) www.matrixthinking.com
BOOK REVIEW Connection Generation by Iggy Pintado
You can find dozens of books on social media in bookstores, so why is this one outstanding? Pintado says the Web has changed the basis of demographics. Demographics was once based on when you were born; now anyone who has used a computer connected to the Internet is part of the ‘connection generation’. How you reach customers is improved if you match your efforts to how they use the Web. Are they Basic Connectors, Passive Connectors, Selective Connectors, Active Connectors, or Super Connectors? Knowing these terms gives clarity about how to use social media to reach your goals. For me, I’ve been a Passive Connector, only using social media to connect to people I already know. Now I see that I need to become a Super Connector to get to where I want to be. Not everyone needs to be a Super Connector – it depends on what type of user you need to be to hit your goals. If you’re unclear about whether you’re putting social media to the best use, read this book. Reviewed by Daniel G. Taylor
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$1 million By Daniel G Taylor
the
reason Pat Mesiti wants to change your mind
“I’m a prosperity activist,” says Pat Mesiti, author of The $1 Million Reason to Change Your Mind and co-creator of The Millionaire Makers’ Series. “Prosperity is not about stuff – the cars and the watches – it’s about what the person is on the inside. A lot of people do want to prosper but don’t know how. Until you have a dream and a passion, you don’t know how to take advantage of opportunities. I’m about creating prosperity in every area of life.” And, yes, that includes the cars and the watches.
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at Mesiti’s passion is turning around the lives of people most in need. At a drug rehab centre he worked with in Sydney, he helped graduate 400 boys – an 80% success rate. These men don’t spend the rest of their lives as ‘recovering addicts’, instead they leave behind the drugs for good and live meaningful lives. Mesiti self-published his early books, with titles like Attitudes and Altitudes, Dreamers Never Sleep, and Wake Up and Dream. Attitudes and Altitudes sold 100,000 copies. To understand how big that is, bestsellers in Australia are books that sell 10,000 copies or more and most books sell 90 copies. Despite his succcess, the glue of his life lost its stickiness. “In 2001 my world fell apart,” Mesiti told ThinkBIG. “I was suicidal and depressed; I couldn’t see the light at the end of the tunnel. The number one reason for suicide is no hope. You can live three to four days without water, you can live 40 days without food, but you can’t live a minute without hope.” Mesiti realised he had to help himself before he could give to others. “I had to get my confidence back, get my momentum back. I had to get the head and the heart thinking together. See, you must have the head and the heart in agreement. You can’t have two thoughts – one in the head and another in the heart – and get results.” He created a personal growth plan, reading books (“It got me exposed to great thinking when I wasn’t thinking too well”) and seminars. These days if you catch him without a book in his briefcase, he’ll give you $1,000 in cash. His changed mindset came from his dissatisfaction with his life.
“I think discontent prompts you to grow as a person. When you grow, you realise how much you don’t know. It’s about being content with where you are but being aware you’re capable of something better. The person who thinks they’ve arrived never got there in the first place.” Another vital lesson he learned: “Choose your friends carefully. The friends around us become a self-fulfilling prophecy – they can see potential and push change. Our relationships drag us down to the level of our self-worth.”
Mesiti review The $1 Million Reason to Change Your Mind by Pat Mesiti The $1 Million Reason to Change Your Mind is ThinkBIG’s Outstanding Book of 2009. Why? It delivers results when it comes to changing people’s mindsets from poverty to prosperity. Many people are infected with mind viruses, including the Aussie battler idea and the thinking behind the phrase “Welcome to my humble home.” Mesiti cures these viruses through getting you to increase your value before you seek to increase your financial worth. “You need to learn to think like this: who deserves nice things? I do! Who deserves a prosperous family? I do! Who deserves a nice home? I do! Who deserves to wear nice clothes? I do! Who deserves to have a life that is advancing with wealth and increase? I do! You deserve these things!” After reading The $1 Million Reason, I raised the standards of what I expect for myself. Before, if I wanted something, I’d buy on the basis of price, often settling for less. Now I choose things I want – regardless of price – because I’m worth it. Do I always buy expensive? No. But I do get what I want. If you haven’t yet created riches and think your mindset holds you back, this is the book to get. Protect yourself from (mind) viruses this winter (and for life) – get vaccinated today!
How can he teach you to be a millionaire In 2009, Mesiti published The $1 Million Reason to Change Your Mind and The Millionaire Makers’ Series (see the reviews with this article). Mesiti’s book shows you how to change your mindset so you’ll have a prosperity mindset, while the series gives practical paths to wealth. You can think of it like this: Be + Do = Have. Mesiti’s book gives you the Be, and the series teaches you the Do. You end up with the Have. “The purpose of the Millionaire Makers series is to bring together wealth creation experts to create wealth. Prosperity is not just money, my goal is to create millionaires from the inside out. I wanted [the authors] in The Millionaire Makers’ Series to be people with similar values and belief systems to myself. I wanted it to be based on people with a similar heart to succeed.” In The $1 Million Reason, Mesiti tells the story from when he was in an airport. A father and his two girls were at the doughnut shop. The father said, “Girls, you can have any doughnut you want except for the ones on the top shelf.” Those top-shelf doughnuts were 20 or 30 cents more expensive than the others.
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thinkBIG feature
Millionaire Maker Reviews Three of the nine books in this doable series:
Seven Keys to Making $100,000 in the Next 100 Days by Mal Emery Being ugly and in people’s faces gets business. Here, Australia’s marketing genius gives business owners the tools they need to make massive profits. The book covers areas from how to write killer copy to how to be an extraordinary business. Emery promises $100,000 in 100 days – 49 days on, I’ve made $41,325. Need a stronger recommendation than that? Then how about I get a bit ugly and in your face: if you’re in business and aren’t putting Emery’s ideas to work, you’re not serious.
Financial Abundance for Life by Daniel Kertcher
The girls were disappointed, so Mesiti discreetly took the man aside and handed him $20. Why? With a prosperity mindset, investing in memories is the best use for money. “People need to come up a level. It’s about the thinking behind it rather than the act itself. She was a gorgeous girl and why make her unhappy over 30 cents? With the tie” - another story in the book where one of Mesiti’s friends challenges him to buy the tie he likes instead of settling for another just because it’s cheaper – “the thing was addressing my thinking, which was that I was not worthy of wearing it. I’m not saying you have to buy expensive. It’s about the heart behind it, because your income will shrink to your level of your thinking.” Mesiti lists the stages of prosperity, from the point of view of someone who knows they have to work on themselves before they can expect to have: 1. Earn an income. “You can’t give what you don’t have.” 2. Give it away. “You’ve got to be a giver. Giving is a way to defeat greediness in your life. The moment you give, greed is defeated. Whatever you want more of, you’ve got to give it away.” 3. Invest it. “There’s no point earning money if you don’t invest it.” 4. Harvest it. “You’ve got to harvest. Harvesting is enjoying the fruits of your life of labour.” Mesiti’s bounce back from the brink and success since shows that the most important investment you can make is in yourself. “If you’re looking for outside stuff to make you happy on the inside, it will never happen. Be happy with yourself as a person.” TB
Do you know how to make your money make money? If you answered no and would like to get to know the financial markets – an area that covers more than just shares – then Kertcher’s the man to introduce you. He has a knack for making this jargon-laden minefield of confounding concepts easy for anyone to understand. He explains how the financial markets work and how to make money in them. He also shows how to protect yourself when you enter the markets. Interested? Great beginners’ book. Reviewed by Daniel G. Taylor
Trading Millionaire Maker by Aussie Rob Find it hard to make sense of books on money? ThinkBIG writer Aussie Rob – think Crocodile Dundee meets Warren Buffett – takes the complexity out of commodities and shows you how to make money whether the market is going up or down. It does take a moment to get to grips with Rob’s outback-Aussie voice, but get past that and you’ll see he’s dribbling gold. Talking of gold, would you like to know how to use $800 to control $80,000 of gold? You’ll find the answer on page 30. It’s really as simple as.... well, I’ll let Aussie Rob tell you.
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Q &A
survey results Now is the time to raise capital! By Reuben Buchanan
The latest Wholesale Investor National survey, published in August 09, reveals that private investors in Australia are more optimistic, have more money and have invested over the last three months.
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he quarterly survey, conducted by Wholesale Investor magazine on its database of 4,286 high net worth, wholesale, professional and international investors, revealed the following points:
Investors remain optimistic A staggering 81% surveyed said that now is a very good, or exceptional time to invest. The more the market recovers from the financial downturn, the more this statistic will drop. Smart investors invest when values are right down and become less enthusiastic as the market moves towards its peak.
Management team is the key 77% feel that quality of management is the most important investment criteria. This is followed by proof of concept, sector and exit strategy. Many people believe that ‘profit’ and ‘quality pitch’ are the attributes of a deal that gets investors excited. This is not correct as these attributes were listed last. Management Team
55.0%
77.0%
Proof of concept
51.0%
Sector
50.0%
Clear path to exit
45.5%
Quality of business plan
44.0%
Financial projections
30.0%
Historical earnings
26.5%
Quality of the pitch
17.5%
Ability for follow on rounds
1.0% Now is the BEST time
Now is a very GOOD time
Now is an OK time
Now is not a GOOD time
Private companies are preferred 59.3% of investors prefer to invest into private companies (down from 71% in May ‘09 survey). Investors see that private companies can be invested into at lower values, and are less exposed to market fluctuations and nervous markets. Private companies also carry less debt and are less burdened by compliance, reporting and public scrutiny. It is anticipated that interest in public companies is set to increase as the market recovers over the next 18 months. Bonds Managed & wholesale funds 3.0% 4.1% Public companies 16.0%
Property opportunities 17.6%
Private companies 59.3%
24.5% 12.0% 10.0%
Tips for entrepreneurs raising capital – listen to what investors want This survey gives an in-depth insight into the investor’s mindset. This greatly assists companies and entrepreneurs to shape their investment offers, greatly increasing their chance to raise capital. Here are some key tips: • Focus on building a very strong board and management; • Only target investors who invest into your sector; • Be realistic on valuation – get it stress tested by advisors or friendly investors; • Be flexible – investors today seek more than a ride when investing into private companies. • Investors in the survey highlight that 41% of opportunities they seek are not ‘investor ready’. Companies need to seek the right advisor and get educated on becoming investor ready. • Raise capital now. Investors are active right now and have cash. Don’t wait till the market recovers – as values go up – investors’ appetite for private deals and available cash will continue to decrease. To receive a full copy of the survey, please visit www.wholesaleinvestor.com.au and go to the media centre. TB
Reuben Buchanan is a corporate advisor and he assists companies who are seeking to raise capital.
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Property and Finance Q&A with Carly Crutchfield
Carly Crutchfield is the CEO of Australian property and investment firm CCORP and its subsidiaries companies. She is a property developer, investor, public speaker and self-made millionaire. Carly provides you with personalised answers to all your property and finance questions. Q. What are the basic requirements to determine if a property (flats/multi-units) can be strata titled? Does this vary between States and local governments? Brad Davis A. Primarily, the building will have to meet all current building codes and individual council requirements. The building codes are relevant Australia wide as per the Building Code of Australia (BCA), while council requirements will vary from council to council and State to State. The best thing to do in this circumstance is to have the block assessed by a local architect. He will need to review the property and see how much work has got to be done to it to make it comply with current rules and regulations to meet the specific standards. Once you know this you can then assess how feasible it is to undertake strata titling. Q.Can you go through the process of getting a site rezoned to be residential. A. Yes it is possible to get a site rezoned to be residential, but it is a costly process and very time consuming. It may also take years and it is not always approved: there is no guarantee. This generally is only done when the development is a large one and the cost can be justified. When applying for a site to be rezoned you will need to provide a lot of studies, plans and backup information as to why the rezoning is justified. If you can have the rezoning approved it will greatly increase the value of the affected properties. Before applying for a rezoning it is a good idea to meet with the town planner of the concerned council and see how likely it is to be granted. This will save time and money on something that may not have a chance of success. Q.What are vendor terms and can you sell a property on vendor terms if you have a mortgage against it. Ilse Aschbrenner A. The vendor is the person who owns the property, and vendor terms refer to a method of purchasing a property generally by installment by using finance from the vendor, rather than a bank. It is used where the buyer is unable to obtain finance through normal
means. When buying a property on vendor terms you will pay more for the property and possibly a higher interest rate as well. If you have a mortgage against a property and want to sell it using vendor terms this is still possible. You can sell your property on vendor terms using the equity you have in the property ( (against the amount of the mortgage you have paid off). To get your property and finance questions answers, email Carly on carlyc@ccorp.com.au and look out in our next issue to see if your question is featured! TB
Carly Crutchfield is a self made millionaire, the CEO of several national companies she’s been involved in developments throughout Australia, New Zealand and America with a value of more than $200 million dollars. www.carlycrutchfield.com.au
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Lifestyle Lending Leveraging the stress of investment!
By John Leighton
In today’s economy it is commonplace to hear spurts of despair as people feel the pressure of the Global Financial Crisis, but it is also completely avoidable.
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any people are investing and then stressing, instead of using investments to enhance their financial portfolio through leveraged activity that increases their freedom and in theory should decrease their stress. Most investments involve some degree of lending and all too often I see clients enquiring about lending for investments that are completely unsuited to them. The most common example I see is extremely time poor executives investing in property, stock or derivative strategies that require a degree of diligence that becomes completely unmanageable when combined with the day to day demands of their careers. Consequently they make hasty decisions or fail to act when required and lose significant proportions of their portfolios. Then I’ve met with people who’ve taken out highly leveraged margin facilities with little awareness of all the risks when their investments turn against the trends and how quickly their portfolio can turn to dust in their sleep. And we’ve all heard stories around family get togethers of friends who’ve lost wads of money in unique property deals – from sexy resort properties to two tier marketing schemes to guaranteed rental returns. Inevitably people tend to get caught up in the potential returns of an investment and forget to assess how to deal with the downside risk. And more often than not the problem stems from their failure to understand the essence of what they are investing in and whether managing such a strategy would suit their personality, their lifestyle and their risk profile. However this could and is unnecessary and completely avoidable. If people actually considered an investment from the point of whether they have the right equity, time, experience, tenacity or knowledge to learn and manage the investment, then most investors will find themselves thriving towards their dreams. On top of this in many cases a poorly structured finance facility adds to a person’s problems because they’re unable to gain access
to more equity or exit earlier than expected incurring prohibitive costs and penalties. In most cases it’s just time that they need to buy for the situation to remedy itself and well structured lending facilities will do this provided allowances have been made when the loan was first established. How often have you heard the saying that: ‘nothing will teach you more about wealth creation than experiencing a loss’? What should be said is: ‘nothing will teach you more than limiting a loss’. It is more important that the loss be sustainable otherwise you may very well take away a lesson you were never intended to learn. Sadly though, that’s what happens all too often as most people never recover from a loss that wipes out most or all of their life’s savings. They never learn how to invest wisely and how to manage the correct investment and they never learn when to gear up, when to gear down, when to take losses, when to take profits, how to buy time and when to get out. Experiencing a loss through an investment foul causes a person’s confidence to be shot to shreds so severely that they may never attempt investing again of any type, all because they were not given the right advice and information. The road to financial freedom is filled with many lessons to learn so knowing what type of investment suits you and your personality and having the right lending structure in place, will not only save you a great deal of heartache, it will enhance your life the way investing is intended to. TB
John Leighton JP is managing director and founder of Leighton Financial Group and a full member of the Mortgage and Finance Association of Australia (MFAA). www.leighton.com.au
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lending How finance rules are changing
By Michelle Murchison
As the year progresses, it is becoming apparent that Australia has weathered the financial storm better than most, but while our major financial institutions are strong, there continues to be a transition of lending practices back to traditional credit policies of yesteryear.
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e have seen more changes to credit policy in the last 12 months in the mortgage market than we have for the previous 15 years. During this time, we’ve experienced dramatic interest rate changes (both variable and fixed) and major credit policy changes. To this end, it is essential that you obtain the right information and know where to find the right advice, so that you understand the ‘rules of the game’ when it comes to mortgage finance (or any finance needs for that matter!). Interestingly, lenders have been swamped with new business this year, likely and in part due to the historically low interest rates and continued demand for well located properties. While lenders still have to watch their ‘cost of funds’ which in turn impacts on their profitability, it stands to reason that some ‘credit rationing’ affords them the luxury to slow down and ‘hand pick’ the influx of new business. Key areas of credit policy changes significantly impacting on mortgage and finance are: • Loan to Value Ratios (LVR) – most lenders have made a significant change to reducing their maximum LVR down to 90% of valuation. When mortgage insurance is required (above 80% LVR) the lending criteria has
become even stricter. An increased contribution/deposit from the borrower enables the lender to ‘slow the tap down’, thereby attracting better quality loans. • Employment stability – in light of redundancies and staff layoffs this year, closer scrutiny of employment stability by the lenders is becoming more apparent. The longer you are in your job the better (three years or over). If you have been in your job short term (or you’re looking at changing), be careful as this will not be viewed favourably. Most lenders prefer six-12 months in a current role (if less than one year), and more than two years in the same industry/role experience. • Genuine savings – this change has meant most lenders want to see home buyers with a cash deposit (or equity) amounting up to 5% of property purchase in the form of genuine savings demonstrated over at least a six month period. This is good common sense in my opinion. If you’ve been able to set aside savings over a prolonged period, you are demonstrating you can live within your means. This criterion gives the lender ability to see demonstrated ‘delayed gratification’ of the borrower, who is most likely and importantly willing to repay the loan in the future. The key is for young borrowers to start planning and saving sooner, if they wish to buy. I honestly believe, now more than ever, that most borrowers need to seek experienced advice from a good accredited mortgage broker, who has full access to a range of lending solutions. Lenders’ appetite for different types of borrowers and loans is changing frequently and is almost impossible to keep up with. And what’s even more important – knowing which lender to approach first! The last thing you want is multiple CRA enquiries because you went to the wrong lender first. The best thing you can do is be prepared. Do your homework and ask around for a good mortgage advisor to help you. TB
Michelle is the owner of Money Advantage. www.moneyadvantage.com.au
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The FCA & you - buying By Damian Kay
a
franch ise In this first of a two part series, Telcoinabox’s Damian Kay explores how to utilise the Franchise Council of Australia (FCA) when buying a franchise and what to do once you become a franchisor.
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ow do you use the FCA to better understand franchising, and does the FCA give you all the information you need? While the FCA is the go-to authority for potential franchisors/ franchisees, you shouldn’t rely wholly on the information they provide. It is important to conduct your own due diligence to avoid the pitfalls of taking all information provided to you for granted. Before taking that big step to become a business owner, you have probably gone through the decision process of ‘trading hours for money’. Put simply, you have made the decision to either work for someone else and get paid for the work you do, or take the risk and work for yourself. Many people already know what they are going to do before they leave paid employment; usually it is within the same industry and with a unique approach. However, many others look for a business opportunity, which is where franchising comes into the picture. Franchising is not for everyone. If you are not willing to follow a set system, engage with a franchisor closely, be part of ‘an extended family’ or be prepared to learn, then it is definitely not for you. The FCA run seminars throughout Australia on buying a franchise in a ‘non-sales’ environment. They have representatives from the ACCC, the relevant State governments, a franchisee and a franchisor. They are designed to educate you as to what you need to know before buying a franchise and they can be very helpful. On the FCA website (www.franchise.org.au) under ‘About Franchising’, you will find details of these seminars as well as other interesting information including advantages and disadvantages of becoming a franchisee. It is important to remember that when you buy into franchising you are buying into a way of doing things. So, you have decided you want to become a franchisee and you now need to find the best system for you. Hopefully you know what
you are good at and thus can match your skills with the right system. Unfortunately the FCA website does not provide a profiling tool to help you match your skills with an FCA member which would be helpful. However there is a directory of FCA members. While the FCA website provides an excellent resource for potential franchise buyers, and has an excellent list of FCA approved franchises, this is not a full list of franchises available and sometimes the endorsements can be misleading. I have been very vocal in the industry about this and many agree. In late 2008, I spoke at the National Franchise Convention in Sydney after a number of messages and emails went unanswered by the Chief Executive of the FCA. Despite this, it took over nine months for the FCA to actually approach me to discuss this issue. Go figure. It has obviously been a sore point within the FCA that they are only now willing to face up to. The Chief Executive to this day has not bothered to return messages. Due to discussions I have had with some excellent people working within the FCA, I understand that this is finally on their agenda. It is too easy to become a member of the FCA. Franchisors do not have to have a proven system or be assessed in any way whatsoever. There is no interview process or requirement to prove sustainability. As long as the system has been nominated by another member and the directors of the franchised system have not been convicted of an offence, you get your membership (I am sure there is more to it than that, but when my business became a member we did not have to do anything. I did not have any experience myself and the business had been only going for a couple of months). The membership form to become a member is proof of this. I recently tested this theory out with a ‘new franchise system’ and nominated a business system to become a member of which the directors had no franchising experience. The business was closed
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down two months after becoming a member. The moral here if you are considering buying a franchise is to conduct your own due diligence. You need to: · See a demonstration of the systems · Meet the franchisor and people that will be supporting you · Go to the head office (if possible) and observe the operations · Talk to top performing franchisees and determine if you have the same strengths and qualities they possess · Talk to the lower performing franchisees and find out why they are not doing better · Talk to past franchisees of the system and find out why they left · Do your own market research, talk to friends and family and get their opinion about what you will be selling (product or service) · If appropriate go and work in one of the franchised businesses for a day These are just some of the things that you should do even if the industry body finally does something about their inadequate membership requirements. You are about to invest a substantial amount of money, so you must do everything you can to ensure that you go in with your eyes wide open. The amount of people that we talk to in our recruiting process that have done no due diligence or talked to our existing franchisees continues to astound me. We will not take anybody that has not done a good portion of the above. We even ask for a full business plan that our sales team can help them with (the key numbers). We put our potential franchisees through a very rigorous process of questionnaires and interviews to determine if they are right for our business. Too many franchisors take people in that are not right for the business and therefore it ends up in grief. If anything I hope this helps to get across the message that the FCA resources can be very helpful in determining if franchising is right for you and identify the members to look at, but do not rely on the ‘sign’, do your own work. TB
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TRADEMARK Top 10 trade mark mistakes – and how to avoid them By Daniel Kovacs
Building a valuable brand isn’t easy, but it is all too easy to jeopardise or destroy the value of a brand by making mistakes in trade mark selection and registration and failing to properly protect trade mark rights. Here are 10 trade mark mistakes that businesses commonly make.
home loan services) instantly conveys a characteristic of the services to potential customers, but its descriptive quality makes it difficult to protect, and easy for others to legally imitate.
2.Trade mark availability searches It is vital to conduct an adequate trade mark search before settling on any new brand, name of a business, a product or a service, a logo, or even a slogan. Businesses that fail to search, or that search inadequately or inexpertly, risk wasting significant sums invested in a brand that they may be forced to abandon because of the prior rights of an earlier trade mark owner.
1. Choosing non-distinctive brands In devising new brands, marketers are frequently attracted to names that are highly suggestive of the nature of the goods or services. While these names have a superficial appeal, protecting them can be difficult, as the Trade Marks Act prevents registration of trade marks that are not sufficiently distinctive. A name such as APPROVE-FAST (for
amateur filer. Commonly, trade mark owners that file their own applications nominate the wrong classes of goods or services or describe their goods and services in ways that, while appear reasonable to the layperson, in fact provide inadequate or inappropriate protection.
5. Inadequate protection branding elements Good branding can involve a number of elements. Trade mark protection can be obtained for words, logos (graphics), and items such as packaging designs, shapes and colours, even sounds and smells! Maximum protection is afforded by protecting each of these elements separately.
6. Not securing underlying copyright rights Branding elements that include logos or other graphic material may attract some protection under the law of copyright, as well as being potentially registrable as trade marks. Unfortunately, many businesses incorrectly assume that because they have commissioned a graphic designer to create branding elements for them, that they will own the underlying copyright in the artwork.
7. Allowing uncontrolled use by third parties Any use of a trade mark by a person other than a trade mark owner, be it a franchisee or other user, should be made strictly under an appropriately drafted trade mark licence agreement which permits the owner to ‘control’ the use of the brand. Uncontrolled use can lead to dilution of the value of the brand, inconsistent application of brand values and even potential loss of registered trade mark rights.
8. Not using the trade mark as registered A trade mark may be removed from the Register for non-use if it is not used in the form in which it is registered, hence it is important to use the mark as registered, and register the mark as used.
9. Failing to renew registered trade marks Australian trade marks are registered for 10 years initially and can be renewed for further 10 year periods. Once a trade mark’s renewal period has expired, registered rights are lost and a fresh application must be lodged to secure the rights.
3. Failing to register brands as trade marks
10. Failing to monitor the market
Businesses that fail to apply for and register their brands as trade marks find it more difficult to prevent third parties using the same or similar marks than those who have trade mark registrations. Businesses without trade mark registration must establish that they have used their brand to an extent that they have acquired a reputation in the mark to bring an action. The required level of reputation may be difficult to establish, or may be confined to a small geographical area. Trade mark registration, by contrast, gives national rights (and can indeed provide international rights). Businesses that expand into new countries should seek registration in each country where use is proposed or occurring.
Brand owners need to vigilantly monitor their market for any third parties using similar trade marks . To preserve their rights, they need to take legal action promptly to prevent unauthorised use and trade mark owners should arrange monitoring services through qualified trade mark practitioners. If those uses are not detected and/or action not taken against the unauthorised users, the third party may acquire its own rights through use, paving the way for significant confusion in the marketplace and loss of value of the original brand. TB
4. D-I-Y trade mark filing disasters D-I-Y trade mark applications can be disastrous. The trade mark application process is full of traps waiting to catch the
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Daniel Kovacs specialises in intellectual property law at Kliger Partners, Melbourne, representing number of high profile and well known brands. www.kligers.com.au
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The 7 stages OF
property
DEVELOPMENT By Carly Crutchfield & Tom Parkisnon
In the last few issues I have talked about a few different strategies for getting involved in property development and the fact that this market is ripe for property developers. So I thought it was time to lay out step-by-step what is involved and how you can immerse yourself.
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roperty development can be broken down into seven basic stages. If you can grasp each stage and understand the basics then you can avail yourself of this fantastic wealth creation strategy called property development. In this issue we are going to start right at the beginning with stage one and look at how to find a site that is worth developing.
Stage 1: Finding a site It can sometimes be difficult to know where to start when first trying to get into property development and where to start looking for sites that may be profitable. There are many bargains to be taken advantage of in today’s economic climate; you just need to know where to look. I have learnt that great development sites can come from just about anywhere, so the bigger your network the better. To start building a network and finding sites you can look on the Internet, in your local paper as well as your State newspaper and also your local real estate agents. These will display all the properties on the market. However there is another way to look for properties that are actually ‘off market’. A lot of development sites are actually sold before they ever officially come ‘on the market’. To find these sites you need to build a relationship with a development agent. The development agent is similar to a real estate agent but generally only deals in properties where you can value-add through development. If you look under the business section
of the paper, under commercial and investment properties, you will find sites that are suitable for developing but you will also find the contacts of development agents: call these agents and ask to be on their contact list. They will then email you periodically with potential development sites that are not available to the open market. Another great way to find potential deals is by driving through an area and looking for abandoned development sites. These present great bargains as usually construction will have come to a halt due to lack of funding and the vendor will be looking for a quick sale. The vendor or developer may need to sell at below current market value and there’s a high chance that there will be an option to get creative when doing a deal as the vendor will be prepared to take extra measures due to their situation. You can often negotiate something that is win-win for you both and it might even mean you don’t have to invest any of your own money (more on that in Stage 4, when I’ll tell you about no money down deals). There are also many opportunities to create business partnerships in these situations. When getting involved in properties that have already started construction, be careful to do your research in regards to what has been done, what hasn’t been done and why construction halted. This will save you time and money in the long run. When looking for a site, research is very important. You really need to know the area that you are looking at developing in as you will need to pick an area that allows for the type of development you wish to do. The local council website includes a lot of information, so browse through it and familiarise yourself with the content. If there is something you don’t understand you can call the council and talk to someone, usually the town planner, as they are generally happy to help and advise. What the council wants to see in the area is a key factor. It is advisable to build up good rapport with the local council. If you come across words that you do not understand while browsing through the council website, look them up or ask the council what they mean. This is quite important because if
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you do not understand the content you will start to feel lost and won’t be able to make sense of what you are reading/looking at. Familiarise yourself with the council and city maps such as the Zoning Maps and the Land Environmental Plans (LEPs). Understanding the terminology, not just with the council, but also in other areas of property development in general, is also a key factor to being able to succeed. Research not only involves knowing your area well, it also involves educating yourself on the property market. Factors such as housing supply and demand, price rises and falls in suburbs, whether you should be making offers above or below the current market price etc, will all affect your end result. Local real estate agents, various property websites and RP Data all supply information on these trends. Networking is also a great way to find sites. You can start networking and building your contacts such as builders, site managers, project managers, architects, town planners and other investors involved in the property development game. You should network with anybody and everybody, friends, family, local shop owners, local real estate agents, neighbours, mortgage brokers, council, long term residents, plumbers,
financial planners – let them all know what you are interested in. You want to get other people on the lookout for you too, doing the legwork and research for you where possible. Alert local real estate agents and development agents of what your criteria is including the area you want, size of development, profit margin you are looking for, style of dwellings you wish to construct and price range etc. You may also find that you may be able to help them too. With the right tools and knowledge at your fingertips you find yourself coming across more and more sites that may have profit potential. If you would like to do a practical exercise, jump onto your local council website and go to the development section, click onto the zoning map for your local area and check it out. This will show you the development potential of every property in your area. A great way to research and confirm potential development site and something I have been using since I first got started in property development. Next issue we will move onto Stage 2: Site Analysis, which is all about doing the right research on a property once you find it. In the meantime, happy property hunting! TB
With the right tools and knowledge at your fingertips you find yourself coming across more and more sites that may have profit potential.
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generation Y one in five bankrupts are under 30 By Jack Delosa
Figures from the Insolvency and Trustee Service of Australia show that one in five bankruptcies in Australia belongs to someone under the age of 30.
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ome journalists say it’s because our brains are not fully developed, others argue it’s because we don’t fully appreciate consequences. I think you don’t have to look much further than the facts to realise that Gen Y as a generation is suffering from the same problem our debt ridden parents are; a lack of proper education. Over the last 10 years the household ‘debt to income ratio’ has gone from 56% to 125%. This means that the average household spends 25% more than what they earn, every year. At the moment Australian households are in debt to the tune of $530 billion. And it’s not just our parents that are good at spending what they don’t have. CPA Australia, one of the largest accounting groups in the world, released a study indicating that the average debt per person between the ages of 18 and 24 is $21,000. The spokesman for CPA Australia, Peter Mulqueen, indicates that HECS debt, mobile phone bills and credit cards are the major sources of debt for Gen Y. This is an issue, especially for young people. Considering that the average Australian earns $57,000 each year, a debt of $21,000 before the age of 24, is a bad start to an even worse career. When this issue has been reported in the media, the finger has often been pointed at Centrelink and there have been many calls for Centrelink to increase the Youth Allowance which is made to students. I think this is a short term solution to a much greater problem and would be counter-productive to what we’re trying to achieve. Giving us more money is the last thing we need, especially now that the vast majority of the population has demonstrated that we don’t know how to use it effectively. With companies such as Telstra making it possible to pay for a taxi, a can of coke, some groceries and a movie ticket using our mobile phone, the need for effective financial education is becoming increasingly important. The important distinction I think for many in Gen Y to learn is the difference between an expense and an investment. Owning a home for instance, or an investment property, is generally considered an investment because it increases in value. Owning a car, is often considered an expense because usually they decrease in value, they are a depreciating asset. Often the best outcome to come from effective financial education is the enthusiasm that comes from knowing how to build real wealth,
outside of working the usual 9:00am – 5:00pm. What isn’t covered in high schools or universities are the simple strategies that anyone can adopt to start building their personal net worth. Using smart investment strategies that are readily available, I believe that the vast majority of people have the ability to earn more from investments each year, than the average Australian does from working all year. Because the current education system is doing very little to address this issue with any level of cut-through, it is important that my generation educate ourselves on the issues of debt and investments. If you can begin to develop your financial understanding at a young age and learn how to make money from investments rather than employment alone, this will be the most important skillset you learn in terms of building your own net worth and enjoying a level of financial success.
Y not start now? - Investment companies will talk to you for free. You can set up a 60 minute consultation with most financial services companies and they will be happy to outline a strategy that will work for you, based on your current financial situation. They do this because they want to build a relationship with you so you will use them in future. - Find mentors. Speak to people who have investment properties or who invest in shares profitably. These people understand how to make money from assets without having to work. It may require a financial commitment upfront which is great because it gives you a reason to save. - Go to seminars. There are plenty of financial seminars in every main city of Australia, most of which are free. These seminars are great to gain a foundation understanding of what you can do. - Read. If you want to learn about investing in property, shares or business, there are thousands of books written on these subjects, and you only need to read one or two good ones to get started. Email me if you’d like me to suggest some books that would work for you. - Don’t search for help from people who are not actively investing. Learn only from people that are making money in the field you want to learn about. - Believe it’s possible. It is. TB
Jack Delosa is the General Manager of MBE Education. Jack has been named as one of the top 30 entrepreneurs under 30, in Australian Anthill’s 30Under30 Publication. jack@teldar.com.au
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deal making
Let’s explore them both as they relate to our dealmaking purposes. A: Moving-toward values. These are values that people strive to achieve. Examples of moving-toward values include success, love, security, intimacy, freedom, comfort, passion, health, adventure and power. Never expect a conservative individual or company to take too many risks in a deal. If they value security and you challenge it, they’re sure to get very nervous, defensive, and more than likely back out of the deal. B: Moving-away from values. These are values people will avoid at all cost. They include anger, guilt, rejection, fear, failure, humiliation, frustration, loneliness and depression. If the other side demonstrates any of these values and you violate or accelerate them, you’re deal is doomed from the get-go. These values are to be avoided like the plague. Next, you have to make sure you do not violate people’s beliefs. • A belief is anything a person believes to be true about themselves, other people, an organization, or anything else. Many people feel they’re superior in power, strength, service, and/or quality. Let them believe it and don’t question it. If you question the ‘other side’s’ beliefs, they may become very defensive. Work around their opinions of themselves and play to their ego!
How to manage conflict during negotiations!
By Peter Wink
To be an efficient, effective, successful dealmaker, you must be able to keep negotiations moving along smoothly. A big part of the dealmaking process is managing conflict.
T
here are two ways to manage conflict. 1. Avoid conflicts from the start. 2. Resolve conflicts when they arise. Warning: Conflicts always happen at the least opportune time. Before I get too far, I want to define conflict as it relates to dealmaking. A conflict can be a small quarrel with the ‘other side’ or an all-out war! In general, a conflict is a situation arising when two or more people disagree on terms or concessions during a negotiation. Sometimes conflicts even appear as the result of personality conflicts or communication breakdowns. No matter where they begin – they need to end quickly. Most people get flustered, agitated, angry and irritated when a conflict rears its ugly head because they believe that a conflict is automatically negative. Not necessarily. Case-in-point – think of the last time you had a major conflict with another person personally or professionally. Did the two of you get into a conflict because you didn’t care about the outcome? Of course not! You both cared enough about the situation to try and come up with a solution. If you didn’t care to come to a resolution, there wouldn’t be a need for a conflict. You both could have simply walked away. The same holds true during the dealmaking process. When you break conflicts down, you usually find they’re not really positive or negative, just a neutral opportunity. In most cases, even negative conflicts can be turned around to become opportunities fairly quickly. You just have to know how to manage them. And now you will! In my experience, the root of most conflicts stems from a lack of communication between the two (or more) parties involved in the deal. More often than not, one or more of the parties didn’t understand another’s real intentions. Keep in mind that conflict is common during negotiations. So common, you need to learn how to deal with it. In fact, as you already know, conflict is common in every part of life. It’s been going on since the days of Adam and Eve. A couple of other quick points are you should never take conflict personally and never insult anyone personally during the
dealmaking process. Remember, its just business. Focus on the dealmaking issues at hand and leave personal feelings out. Let’s get started by learning the four basic forms of conflict. They are… 1. Conflict between two or more people. Two or more people disagree on terms and/or concessions. 2. Conflict between departments. Many times organisations will experience interdepartmental problems. You’ll also find that department heads/members will negotiate with each other for resources and/or power. 3. Conflict between companies. This is when two organisations have conflicts over issues involving competition, capital resources, employees, customers, prospects, terms and concessions. 4. Conflict between an individual and a group. This happens when someone negotiates with a group of people. Examples are executive boards, committees, groups and various other teams.
5. Incongruent personalities Every individual or group has a different personality/dynamic. Some people will click with each other better than others. Unfortunately, when it comes to dealmaking, you can’t just dismiss or avoid people you don’t get along with.
6. Contradictory expectations When both sides expect to receive a concession, and they don’t get it, conflict will result.
7. Third parties Third parties are people who negotiate on behalf of another person or group. Third parties include outside executives, managers, lawyers, consultants, accountants, friends, or family members. Always remember the old saying —“Too many cooks spoil the broth.” Now change it to read, “Too many negotiators spoil the deal.” In other words, if you can, avoid third parties and deal directly with the other side.
Dealmaker’s note Conflicts typically rear their ugly head at the most unlikely times. I wish I had a dollar for every time I thought a deal was going smoothly and all of a sudden the other side presented a major challenge. These challenges are typically the result of one of the eight common causes of conflict listed below. Let’s go through each of the eight common causes of conflict.
1. Different perceptions Ever since the beginning of time, people have had different opinions and perceptions of the same exact issues and events because each of us has different references and experiences we draw information from.
2. Poor communication When you’re dealing with issues as technical and complex as those you’ll find during dealmaking, you must communicate articulately, effectively, concisely, and quickly. Both you and the other side must be clear about what you want and be able to ’ accurately communicate it. Vagaries, harangues and other nebulous talk will usually lead to both short and long-term conflict.
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3. Misaligned goals
8. Strong-arming
Many conflicts arise from misaligned or incongruent goals between you and the other side.
4. Inconsistent values and beliefs Most people have been guided through life by the same values and beliefs since they were very young. It’s important to understand the other side’s values and beliefs, so you don’t violate them. If you violate their values and/or beliefs, they will get defensive and conflict is sure to arise. Let’s quickly discuss both values and beliefs. • A value is anything that you or the other side place significant importance on or hold dear to your hearts. There are two different types of values: • Moving-toward values • Moving-away values
Strong-arming is the act of using force, the threat of force, or other types of unnecessary pressure to get the other side to accept your terms. Never coerce anyone into doing anything they’re not comfortable with. Strong-arming will come back to haunt you. I’ll say it again; every negotiator (even the best) ends up in a conflict sooner or later. Now that you know the eight basic conflicts, you need to learn how to manage conflicts when they arise. We’ll cover this in the next issue of ThinkBig magazine. TB Peter Wink is a negotiating expert and bestselling author of Negotiate Your Way to Riches and Buying Secrets Retailers DON’T Want You to Know About. www.buyingsecretsretailersdontwantyoutoknowabout.com
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success traits
you ahead of the crowd. Are you abreast of national and world affairs? Do you scan the papers every day? Can you converse on many subjects? 19. Excellent delivery: Always deliver with energy and adaptability. To command an audience is a life skill that every leader needs to learn. People want to be led by people they look up to. Would you like to be led by you? 20. Innovation: To be successful you need a healthy discontent for the present; always innovating and changing. When was the last time you ran an innovation day with your team?
Million dollar traits
By Rob Nixon
What makes a millionaire? Imagine if you could study a group of millionaires. What would they have in common? Recently, I did just that at Dr Alan Weiss’ Million dollar club in the USA.
H
igh achieving consultants are typically earning more than $1m in revenue per consultant. Their secret? Not one but a mix of 30. The 30 traits are broken into three areas: 1) Who you are 2) What you do 3) In business
Who you are 1. Focus and discipline: Determine what’s important. Set goals
2.
3.
4.
5.
6.
7.
8.
and have time blocked out to achieve them. Get the blinkers on and block out distractions. Think like a rhinoceros – thick skin and charge! Self belief: As Dr Alan Weiss says “the first sale is to yourself”. The client doesn’t tell you how to consult, when you will be paid and in what format. It’s your business. Take charge. Intuition: Free up your potential, create new approaches, and be willing to fail. Go with your gut feel – it’s often the right answer. Do you tend to over analyse? Loosen up and make a decision. Passion: You have to love what you do if you’re going to do what you love. When you calculate that you will spend approximately 50% of your adult waking working life associated with work – make it count. Empathy: Understand what the other person feels to gain maximum influence, but don’t get roped into people’s situations. Stay focused on the game. It’s a professional relationship remember. Boldness: Life is short, act rapidly, with conviction. There is a sea of mediocrity in advisory businesses. Be bold and you will stand out from the crowd. Sense of humour: Be willing to laugh at yourself and the situation to retain perspective and put everyone at ease. Remember – it’s not what happens to us, it’s how we deal with it that is important. Don’t fear failure: If you’re not failing, you’re not trying. With any situation or big decision always ask yourself – what is the worst that can happen? If you have an abundance mentality then you will seldom fear failure.
9. Avatar of success: Become the person who both walks the
talk and talks the walk. Successful people want to hang around other successful people. Make sure you are the leader. 10. Act: Move rapidly and be prepared to adjust to compensate for moving early. Implement one idea a week and boom it’ll hit you...your business will improve out of sight.
What you do 11. Great people: Ensure you have a team that believe in what
you do and have a vested interest in the business; do not create a ‘corporate welfare state’. You may have people on board your bus who have their hand firmly on the handbrake. For some of your people you need to drive at speed around the corner with the door open! 12. Personal relationships: The best support systems are the ones closest to you. Get rid of toxic relationships. Do not hang around the ‘naysayers’. Always associate with positive, forward thinking people. 13. Reinvention: The antidote to boredom and staleness is to be unafraid to change and radically metamorphose. 14.Opportunism: Being nimble and light on your feet enables you to exploit new events and ideas. You need ‘working on’ time to take advantage of opportunities. 15. One life: Understand that you don’t have a ‘work life’ and ‘personal life’ but simply ‘a life’. So what if you play golf on a Wednesday afternoon and reply to emails on Saturday morning. Just make sure you balance it out and get everything done that you need to. 16. Simplify: Get rid of stuff that clutters your life and create space. Keep the car clean, have shorter meetings, phone calls and emails. Most things can be done in less time, with less fuss. 17. Speed learning: Maximise your ability to process information, especially in reading with comprehension, writing with expression, speaking with influence and listening with discernment; adapt a learning mindset. Do a speed learning course or a typing course. You need to be a high ’ bandwidth learner.
18. Intellectual firepower: Breadth and depth of knowledge sets
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the barrier to entry. The lower the fees, the less personal and more volume. The higher the fees, the more personal it is with less volume. There you have it. The upshot of all of these traits is that if you want to run a better business you must first become a better business person! TB
In business 21. Market: Identify your key target markets and exploit them. One
successful suburban accounting firm I know ‘invites’ clients to be a client of the firm – based on a strict criteria. Their average fee is $31,000 per client – and they only have 109 clients. Sharpen your target market and sharpen your marketing. 22. Market Gravity: Continue to add value to your target market by way of intellectual property, articles, reports, public relations etc so that more people are drawn to you. Many advisers are frightened to give away intellectual property. Why? The great Zig Ziglar once said ‘You can get whatever you want in life if you help enough people get what they want’. 23. Leverage: When can 1 + 1 equal 1,000? Constantly seek to leverage products, services, markets and relationships. You have vast amounts of intellectual property. Can you put it into a recording, an audio or video download, a report, a white paper, an article or a case study? 24. Database intelligence: Create, nurture, grow and cleanse databases so that they generate powerful returns. Buy, rent or build a list. Then market to them; offer them something for free. Your database is one of the best assets you will have that is not on your balance sheet. 25. Branding: What do people think about you and your brand? Create, nurture and develop strong brands to draw people to you. Your brand needs to be an experience. The better the experience the more clients and sales you will have. 26. Sales process: So what happens after you get an enquiry or have a meeting with a potential client? Is there a structured process? Understand the steps, sequence, scope and symmetry of your sales process to maximise acceleration and margins. 27. High fees: Buyers believe they get what they pay for. There is no right or wrong price with professional services — except for billing by the hour. If you believe you are good at what you do then charge like it. 28. Time management: Always spend your time working on high dollar productive activities. Put structures in place, delegate and don’t do things yourself if someone else can do it. If someone else can do it 80 per cent as good as you then you are 80% in front. 29. Communication structures: Put in place channels to talk to and listen to the client. Feedback forms, surveys, client advisory boards and simply asking clients will go a long way to designing programs that clients want and are prepared to pay for. 30. Network focus: Lure people into your network by lowering
Rob Nixon is a consultant to the accounting profession and an expert in helping accounting firms improve their financial position. www.robnixon.com
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In this, the third part of Aussie Rob’s two part series on renting shares, he’s still excited that you’re taking the time to read information that has enabled many people to change their lives. In this issue he looks at buy writes.
A
Buy Write is just like writing a covered call except you don’t own the shares. With a Buy Write, you buy the shares and sell the Calls in the same transaction. Let’s use Microflop as an example as we did last issue. This time, however, you bought 1,000 shares of Microflop stock for $24 (without previous ownership of stocks at $23) and in the same transaction you sold $25 Calls for $1.15.
Now let’s compare a Buy Write to just buying shares: 1. Buy the Shares and sell the Shares Buy 1,000 shares of Microflop for $24.00 and then sell them for $25.00 Profit: $1,000 ROI: 4.1% (Cash in: $1,000 divided by Cash Out: $24,000 x 100) ROI if on Margin: 8.2% (Cash in: $1,000 divided by Cash Out: $12,000 x 100)
2. Buy a Buy Write and get called out Buy 1,000 shares of Microflop for $24 and simultaneously sell $25 Calls for $1.15 (brings in $1,150 cash into your account). Get Called Out for $25 Profit: $2,150 ($1,150 for selling the Calls & $1000 profit on the stock) ROI: 8.9% (Cash in: $2,150 divided by Cash Out: $24,000 x 100) ROI: if on Margin: 17.9% (Cash in: $2,150 divided by Cash Out: $12,000 x 100)
Now let’s dig a bit deeper… Seller of ‘time Writing Covered Calls is simply selling time. You are selling someone the right to buy your shares from you at a certain price by a certain time. They are buying time from you. Time they are hoping will be enough for the stock to go above the strike price.
How much time? I prefer to write the current month or next month’s Calls. In other words, I sell four to eight weeks of time. Selling further out in time can give you a larger upfront premium but I have found that by selling Calls each month will generally make you more money than
selling Calls further out in time. By going further out in time, you’ll generally get less per month. Covered Calls is all about getting regular monthly income so I like to fine-tune it to get the biggest bang for my buck.
Which shares should you Write Covered Calls on? Finding stocks that pay high yields was difficult in the past but now it’s a breeze. Time is money, right? It’s important in any profession to have the right tools! The right trading tools can make a profound difference to the profitability of your trading. My High Yield Covered Call Scanner has filters that will only display stocks that return greater than 5% per month. If you buy the shares on Margin, that effectively means that your 5% per month doubles to an incredible 10% per month!
Share price range I have found that shares priced between $5 and $30 produce the best returns. Remember, 1 option contract controls 100 shares, therefore, to Write 1 Covered Call on a $100 stock would require an investment of $10,000 ($100 x 100). I would much rather put the same money into a $20 stock and Write 5 Covered Calls ($20 x 100 x 5 = $10,000). Writing 1 Covered Call on a $5 stock only requires an investment of $500 ($5 x 100). Actually, that is not correct! Why? Well, one of the great things about Writing Covered Calls is that the premium that is paid to you is deposited into your account immediately. Therefore, if you were paid $1 per share to write a Covered Call on a $20 Stock, you would effectively be only paying $19 per share as the $1 per Share Call Premium would be paid into your account immediately. How cool is that?
Now check this out…. If you bought the $20 stock on margin, you’d only be paying $10 per share and you’d immediately bring in $1 per share for writing the Covered Call. You’re now effectively only outlaying $9 per share.
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thinkBIG wealth thinkbig WHICH STRIKE PRICE? OTM: “Out of the money”
OTM
The strike Price is HIGHER than the Stock Price
$22.50
You get to have your cake and eat it too Writing OTM Covered Calls enables you to capitalise on the increase in stock value and you get to collect the Option Premium.
ATM: “At the money”
ATM
The strike Price is THE SAME than the Stock Price
$20.00
ITM: “In the money” ITM
The strike Price is LOWER than the Stock Price
$17.50
WHICH STRIKE PRICE? $22.50 OTM
STOCK $20.00 In this example, the stock is trading at $20 and you are selling someone the rights to buy your stock from you for $22.50. Let’s assume that the Option Premium is $1.00 per stock.
There are three different scenarios on what can happen at expiration: Firstly, if the stock is trading above $22.50 at expiration, the stock will be bought from you at $22.50, giving you a $3.50 profit ($2.50 for the increase in the stock price and $1.00 for the Option Premium). Secondly, if the stock is trading below $22.50 but above $20 at expiration, the Option owner would not exercise their rights to buy the stock from you at $22.50 because they could buy it cheaper from the market. Therefore, you keep the Option Premium and the stock, giving you the opportunity of writing another Call on your stock for the next month’s expiration. In the second scenario, you would make a profit on the stock going up and you keep the Option Premium. Let’s say the stock went up to $21.00, you would make a $2.00 profit ($1 for the increase in the stock price and $1 for the Option Premium). Thirdly, if the stock is trading below $20 at expiration, the Option owner would not exercise their rights to buy the stock from you at $22.50 because they could buy it cheaper from the market. Therefore, you keep the Option Premium and the stock, giving you the opportunity of writing another Call on your stock for the next month’s expiration. In the third scenario, you could make a loss on the stock but some of the loss would be offset by the Option Premium.
Breakeven Stock Price – Option Premium
Insurance Writing Covered Calls is a form of Insurance as the Option Premium is your protection. Your stock has to fall greater than the amount of Option Premium that you are paid before you start losing money. What is so cool about this Insurance is that you get paid to take the policy. How is that? Well, you get paid the Option Premium, don’t you?
Repair strategy
OTM: “Out of the money” Stocks trading at $20 have $2.50 Strike Increments.
Your breakeven on this trade would be $19 ($20 - $1) so you could even be profitable on stocks that go down a bit, so long as they don’t go below the breakeven.
The only danger of Writing Covered Calls is if the stock falls below the breakeven. Therefore, a simple repair strategy is: “Buy back the Call if the stock drops to the strike price and then sell the stock”. If you do this at the sold strike price you will still be profitable in the trade. I love this strategy! If the trade goes against you, you still make money.
ITM: “IN THE MONEY” Stocks trading at STOCK $20.00 $20 have $2.50 Strike Increments.
ITM $22.50
In this example, the stock is trading at $20 and you are selling someone the rights to buy your stock from you for $17.50. Writing ITM (In the Money) is my favourite, which really puzzles people at first. They initially think, “Why on earth would you ever sell someone the rights to buy stock from you for less than you paid for them? To me, Writing Covered Calls is all about the premium. Let’s assume that the Option Premium is $3.50 per share. There are three different scenarios on what can happen at expiration:
1. The stock goes up If the stock goes up, the Option owner would exercise their rights to buy the stock from you at $17.50, giving you a $2.50 loss on the stock. However, you brought in $3.50 for the Option Premium, which results in a $1 per share profit. That equates to a 5% return on investment ($1 profit on a $20 investment). That return is per month, by the way. A 5% per month return equates to 60% per annum, without compounding.
2. If the stock goes down a bit If the stock goes down but not below $17.50 at expiration,
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the Option owner would again exercise their rights to buy the stock from you at $17.50. (Your profit would again be the $1 per share from the Option Premium.) Imagine the stock dropping 10% to $18. The Option owner would exercise their rights to buy the stock from you at $17.50, giving you a 5% return for the month on a stock that has just dropped 10%. How cool is that?
3. If the stock goes down below the strike price If the stock goes down below $17.50 at expiration, the Option owner would not exercise their rights to buy the stock from you at $17.50 because they could buy it cheaper from the market. Therefore, you keep the Option Premium and the stock, giving you the opportunity of writing another Call on your Stock for the next month’s expiration. In the third scenario, you could make a loss on the stock but some or all of the loss would be offset by the Option Premium.
Breakeven Stock Price – Option Premium Your Breakeven on this trade would be $16.50 ($20 - $3.50) so you could therefore be profitable on stocks that go down quite a lot, so long as they don’t go below the breakeven. Writing ITM Covered Calls is such a great strategy as you can make a great profit with a very high level of protection.
Why write covered calls?
1. They enable you to generate two income streams: a. Monthly rental of your shares - generates monthly cash flow, month after month after month. b. Capital gain on your shares - if they go up and you Write OTM (Out of the Money) Calls. 2. They’re relatively safe, that’s why the government allows you to do this in your retirement fund. 3. They create discipline! Most traders do not have a plan. They have no idea when they are going to sell their shares or at what price? Writing Covered Calls enforces a plan as you determine when to sell (expiration date) and at what price (strike price). The downside of writing covered calls Hmmm, that’s a tough one… They cap the upside potential of the stock. So you could miss out on some extra potential profit. To me, I’d much rather run a Scan, Write an ITM (In the Money) Covered Call and make 5%, 10% or higher for the month, get Called Out then run another scan and do it all over again. Month after month… TB Aussie Rob has just released a brand new Covered Call training DVD called Aussie Rob’s Share Renting DVD that teaches step-by-step how to write Covered Calls.
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strategies The rules of the investing game have changed By Jamie McIntyre
What are the best ways to fight through an economic downturn? Jamie McIntyre explains a set of rules that demand financial stability beyond the GFC.
I
’ve been saying for over a year now, that the world is heading into a serious recession and there’s a 50/50 chance of a depression and a financial crisis on par with the Great Depression, particularly in America. A year ago, people thought I was overly pessimistic. I don’t want to see that things are better than they are, like overly optimistic people, nor worse than they are, like pessimists. I just want to see what is and then devise a gameplan around that. These are the same people that believe we will have a V or U shaped recession: a fast recovery. If it does happen it would be considered a nice bonus, but unlikely. For mine, we are going to suffer an L shaped recession, or possibly with what’s happened with the share market recovery since 9 March, a W shaped recession. Meaning an upturn ahead of another downturn before any real recovery occurs. So is the worst of the Global Credit Crisis over? I’d say no. Fundamentally the US and world economies have a long way to go before this problem is solved. So what is a good game plan to survive and thrive in the Global Credit Crisis rather than just hoping the markets and economies will miraculously recover? The first rule is to survive. To win the game of business and investing you must stay in the game. Just surviving means when there is an upturn you are in the game still and can prosper. This means a hard review of expenses and overheads and major cutbacks.
Step No 2 Now that you are able to survive because of lower expenses and overheads, you should shift the focus from fear of the doom and gloom to becoming creative and figuring out how to thrive in the recession.
So one of the new rules is to accept what may have worked in the past may no longer work in today’s world. Also focusing on what industries or strategies work best in a recession.
Other rules One should no longer expect the share market and property markets in western societies to always rise. Right now I’d be focused on cash flow from real estate and shares, not capital gains, for instance renting shares has never been more profitable and makes money whether or not the share market goes up.
Real estate With low interest rates and affordable housing, now more than ever, good rental returns can be gained, whether you get any capital gains or not doesn’t matter as you are still profiting. Your rule should be... Capital gains in shares and real estate are a bonus. I want to make money regardless and if they rise in value as well, then great. If not, I’m still going to use strategies that make me money in a flat market or depressed market, so I can profit regardless. I’d also suggest developing your internet skills and building a second or third income online to diversify your income, so you’ll soon be asking others... what recession? Actually, I was talking to one of my business mentors recently, Richard Branson regarding how the cynics were criticising him for starting ‘V Australia’ during a Global Credit Crisis. And he rightly said... “If I waited for a perfect time to start a new company, then Virgin would not exist today, as it would never have started.” TB
Jamie McIntyre is founder of 21st Century Group of Companies. www.21stcenturyacademy.com
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Get the address, admin support and the image of a multinational. While you start your business.
direction Know what you need By Chris Howard
Wealth building is no different from soccer or basketball. In order to score, you’ve got to know where the goal is. You need to identify the specific financial targets you intend to hit. So here’s an easy way to clarify those targets. Start thinking in terms of four incremental goals on the way to monetary success: stability, security, freedom – and finally, opulence.
F
inancial stability means having two to three months’ living expenses in a savings account, plus enough money to cover your basic insurance costs. This should be separate from the money you need to run your business day to day. That way, while you’re growing the business, you’ll still know that your personal financial needs are taken care of. At the start of my seminars, I ask everyone to calculate their basic living expenses. That’s what’s called ‘the nut’. It doesn’t include the luxuries you’d like to have in your life; it’s just what you need to keep you alive. What would that number be for three months, and how much would it include if you purchased insurance? When your income is equal to that amount, you’ll know you’ve hit your financial stability goal. The second goal is financial security. I define this as ‘enough capital, invested at a return of 8%, to cover your basic living expenses on an ongoing basis.” That includes mortgage or rent, utilities, car, food, loans and basic insurance. Remember, financial stability was only enough money to cover two to three months of your basic living expenses. So if you take financial stability money for three months and multiply by four, you’ll see what you need for a full 12 months. That’s the annual income you would need to cover your basic needs. Let’s say you need to make $50,000 a year to cover your basic living needs. What sum would you need to invest at 8% to yield $50,000? You’ve achieved financial freedom when you have enough capital invested at 8% to cover your current lifestyle without having to work again. The third goal is financial freedom. To determine what that amount of money this would be for you, say to yourself: “My financial freedom goal will be attained when I’ve accumulated enough capital invested at 8% to provide an annual income of _______________.” By the way, I refer to 8% because that seems like an achievable rate of return on most investments. Warren Buffett says,
“Unsophisticated individuals who aren’t equipped to take an active role in investing will be far better off putting money in an index fund than giving it to a managed fund. The index funds have outperformed the managed funds over the years.” The index funds have historically returned above a 10% average over time. With that in mind, I believe that 8% is a reasonable number. Financial opulence means you have enough capital invested at 8% to live the life of your dreams without ever having to work again. To calculate the number, think this way: “My financial opulence goal will be obtained when I’ve accumulated enough capital invested at 8% to provide an annual income of _______________.” Of course, it all depends on what you want! Some people will say, “For me, opulence is a quarter of a million dollars.” Others might think it’s $100,000 — that would be enough to retire and live in Bali. Others will need $1 million or $2 million. Once again, you need to figure out what your targets are. Once you have them in mind, you can start taking whatever you’re making from your business—either through income or through dividend payments—and investing that money in the right way. Thinking clearly about your financial goals doesn’t mean you have to retire some day, or have to do anything else. It means you will have the choice to do whatever you want. When the fear of going broke disappears, life is a lot more fun. And it’s even more fun when real wealth becomes a possibility and then a reality. Then you can be a lot more playful as you’re out there building your dreams. You can also give more back to others who are on the same path you’ve been travelling. NB: This article is from Chris Howard’s new book – Instant Wealth Wake Up Rich! TB
International speaker and coach, Chris Howard, is a best-selling author, prominent speaker and the owner of Christopher Howard Training. www.chrishoward.com
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· A prime CBD address. · Access to fully furnished and IT supplied office spaces. · Use of meeting facilities and video conferencing. · The support of a professional admin team, ensuring you have the day to day resources needed to run and maintain a successful business.
All while you focus on what it is you do! L14 Lumley House, Kent St, Sydney NSW 2000 Tel: 9994 8000 Email: reception@serviced.com.au www.serviced.com.au www.thinkbigmagazine.com
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Build and Buy Top tips for property investors
By Glenn Armstrong
As the UK market shows significant signs of recovery, property investment expert Glenn Armstrong advises how to make the most of the current climate.
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s my 50th birthday draws closer, I reflect back on the business decisions I have made and the mindset that I have adopted to get me where I am today. With a UK portfolio of 193 properties, which is worth in excess of £30 million (AU$56 million), I have gone on to share my knowledge with UK investors up and down the country in their dream to become truly financially free; at least 26 of my students are now equity millionaires. I am a firm believer that the UK property market is beginning to show green shoots and activity in the housing market has picked up over the last few months. In March 2009, it was clear that the bottom end of the property market reached rock bottom in my local area of Milton Keynes, Buckinghamshire. The biggest problem estate agents are having at the moment is a lack of supply, everything they are getting at the right money is being sold very quickly. I recently looked at a local agent’s website and every single property that was priced at the right price has now been sold. The only properties that are not being sold are those that are unrealistically priced for the current market. All UK agents are struggling to get enough instructions and when they do get instructions they are selling them in literally a matter of days and in some cases I have heard that gazumping is back! Before March 2009, a good below market value (BMV) deal in my area, would be buying a property worth £120k for a price of £75-80k. These deals are now few and far between and we’re currently now only buying five good deals a month rather than the 20 we were buying prior to April; we’re now paying an estimated £5k more for these properties than we were. The reason being that motivated sellers have now slowed down, interest rate cuts are now having an impact on the market and there are less repossessions as building societies/banks are being instructed to be more lenient.
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As American Investor Warren Buffett said: “Be fearful when others are greedy, and be greedy when others are fearful.” If you’re serious about building a property portfolio, here’s some simple advice. If you know the true market value of a property and are looking for a buy-to-let deal and buy it at 70% of that price, then you’ve built in your own safety net in case the market drops further. You need to be buying for cash flow purposes and you want to have at least a £6-£12k cash back when re-financing after refurbishment and at least £200 cash back positive every month. This is a safe deal for any would-be investor. The art of property investing is to be able to find these kinds of deals. These guidelines should become your buying criteria and once you have this criteria, it eliminates any uncertainties you might have when making an offer to the agent. It is crucial to adopt this mindset when you’re looking to buy and build your portfolio. Glenn’s top tips for would-be property investors who want to make the most of the current market: 1. Choose the right area for you – a maximum of one hour
from where you live and avoid the scatter-gun approach (buying properties across the UK), as this could be a nightmare to manage. And always research an area thoroughly before you buy. You need to know your area and establish a good relationship with the local management agents – ARLA agents are more costly but in the long run this will prove more cost effective especially if you’re not UK based. 2. Don’t get carried away on buy-to-let refurbishments, examine your target market and do the refurbishments in accordance with this market rather than your personal tastes so as to avoid any unnecessary expense. You need to look at the profit margins rather than the actual value of the house. Ask yourself a) Will it not let if I don’t make this part of the refurbishment? b) Or will it increase the rental income I receive? When recently showing one of my mentees a property they asked whether it needed to be refurbished but I assured them in this market and area, the property was fine as it was – this saved them the potential £8k in refurbishment costs they would have paid, 3. Choose your buying criteria and stick to it, focus on your cash flow and not capital appreciation if you want to build a profitable portfolio!
So many of us are afraid about making investments but we believe it’s all about having the right mindset, but any fears can be set aside when you use the above buying criteria. I should know, started investing in 2004 and look where I am today. TB
Glenn Armstrong teaches would be investors the art of successful investing. www.glennarmstrong.com.
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thinkBIG feature It has been said that you are born with a lifetime ahead of you and when you die you have run out of time. In between it is a battle to get everything you want done in time writes Michael Moore.
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dvertisers scream that by using their products you can save time. Yet there is no time bank in which to save it. Did you see that car in the street speed by? Is that time? It left point A and then, after a time, it arrived at point B. Have you ever felt that you were watching time pass you by? Did you ever have a short nap and it seemed like an eternity while you were dreaming and when you woke only two minutes had passed? Have you noticed that time slows down in proportion to boredom and speeds up in proportion to enjoyment? Is time really that flexible or does it just seem so? And if time is money, the unemployed should be wealthy since they
have so much of it and the very industrious poor since they have so little of it. Fallacies of course since everyone from the wealthiest to the abject poor all have precisely the same amount of time in a day as anyone else. Many moons ago when I was a young man, I worked in a factory and observed ‘Time & Motion’ experts walk around the factory at periodic intervals. They would watch an assembly worker put a widget into a ‘thingamajig’. They would watch very carefully and noted how long it took for the worker to move his arm to pick up the widget and place it on top of the thingamajig and bang it in. Place the thingamajig to his left and then reach over to his right to pick up the next widget. Click would go the stopwatch. After a time out would come an edict that “placing widgets in thingamajigs will now only take 1.25 minutes.” This became so unpopular that after a couple of years they changed their name to ‘Particle Flow Analysts’. The stopwatch remained the same however. This technique of saving time because ‘time is money’ failed, not just because of union protest or because the watcher was just, watching time, but because they were making the unwitting assumption that their workers were robots and could be made to work as such. Time is certainly that elusive something hard to get a grip on. So how do you manage time? Let’s change our thinking. Let’s think not in terms of wasting time, watching time or saving time. Let’s think instead in terms of creating time.
How do you create time? “I’m late…I’m late… for a very important date…” said the white rabbit in Lewis Carroll’s Alice in Wonderland. Can you create time? Yes you can you will be happy to know; the way to create time is to take control of time. That is … you take control of time. How do you do that? The answer is P.S.A.P PRIORITIES SCHEDULING ACTION PREDICTION
Priorities The first step to using time is to set priorities for the activities you have to do. A young aspiring violinist was having trouble reaching the level she desired. “I just don’t have enough time to practice as much as I should. There are things to be done in the house, cleaning, laundry and I have to work,” she complained. Her teacher said, “Why don’t you change your priorities?” “How do you mean?” the young concert violinist asked. “Why don’t you practice daily first, then do your household chores. Which is more important to you?” That young girl took her teacher’s advice and went on to become a first violinist in an orchestra. She rearranged her priorities. How could you rearrange your priorities? Are you doing unimportant things as a first priority and leaving the most important matters last?
Scheduling The second step is scheduling. Not just ordinary scheduling but creative scheduling. Now this is not like creative accounting. Creative scheduling could also be called cramming scheduling. The idea is to cram as much in a week, day, hour minute as possible. When do you get the most done? When you’re busy! A lazy day. You have nothing to do. A good day to mow that lawn perhaps. Paint that fence, or write up that report for old so and so. But what do you do? Nothing. A busy day. You have five appointments in the morning, a report to type up and two meetings to attend. How can you ever get it done? But you do. You rush around going from one meeting to another. Dash off that report, interview those five people and lo’ and behold, it’s lunchtime. What is the difference? The difference is that you were busy. Years ago I had a girlfriend who was one of the nicest ladies you could wish for. But she had no time. She would get up in the morning and by lunchtime she was still not ready to go out. Her kitchen was always full of unwashed dishes, clothes strewn around the apartment. Ask her to go out and she was ‘too busy’. “I don’t have enough time.” She would say. Yet she did nothing. Did not have to work. Yet what did she do all day? I never could figure out for a long time until I realised that she had no schedule and did not complete anything she did. Oh she would start things okay, but she never finished anything. There were more incomplete activities than you could throw a stick at. She had no schedule.
Fill up your appointment book. “Oh I am not a sales person.” You cry. “Well you have appointments with yourself too. Do those exercises. Write that report. Eat that lunch on time. Do your study. Do this. Do that. List them all down. “That’s crazy I cannot do all that in a day.” Yes you can! If you want something done give it to a busy man. Turn it around. If you want to do something…get busy!
Action You knew it would come didn’t you? Action. Apply your schedule. Stick to it. Adhere to it like glue. Become one with your schedule. Under action there is ‘Complete everything you do’. Under no circumstances leave something undone or incomplete or unfulfilled or half done. If an activity appears too big to be completed. Break it up into smaller activities. How do you eat an elephant? One bite at a time! There is power in this activity. It is easy to become distracted when you have a heap of things to complete and your attention is dispersed over all those incomplete activities you started but never got around to finishing. Action is COMPLETING the actual activities on your schedule in the priority you have assigned to completion. This is the nugget of PSAP. YOU set the priority. YOU work out the schedule. YOU do the actions. And YOU will have the prediction.
Prediction The prediction is the result you desire and expect. It is the result of accumulation of your hard work and effort. It is the goal you fully know you will achieve as a result of PSAP. It is what you know will occur if you perform certain functions. It is not following the stars in the hope that things will work out. What if that star goes supernova? No, it is your efforts and hard work pursuing your goal using Priorities, Scheduling, Action and Prediction to knowingly attain your goals with malice aforethought. It is what you know will happen because you have followed the principles here and done the time and done the work. It is your reward to wealth and happiness. And it did not take that much time after all did it? TB Michael Moore is a prolific Australian author of books and articles including Kickstart to Wealth and All About Gold. www.authorservices.com.au
Time A we apon of mass constr uction By Dominique Bambino
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FORD’S
RETRO
With a top speed of 330km/h, I doubt few Ford GT owners have experienced its limits. Speaking of whom, there are only 4,200 owners worldwide. Ford only made a limited number of the GT between 2005 and 2006. However in Australia, there are only two. One is owned by Lindsay Fox – housed with his private car collection, it rarely sees the light of day. The other is owned by the Supercar Club, who generously lent it to ThinkBIG magazine to share with our readers. For most people in Australia, these photos are about as close as its gets to experiencing one. Ownership, even for the ultra wealthy, is almost out of the question as the car was never designed to be driven here. Government taxes, steering conversion, servicing and lack of manufacturer support make it all too expensive and hard. However the Supercar Club has gone to all this effort to make it available to its exclusive network of members. The Supercar Club is exactly that – a club where members get to share in a pool of exotic supercars for a fraction of the price of owning them. “Unfortunately only Supercar Club members get to drive the Ford GT,” says Peter Dempsey, CEO of the Supercar Club. “We are about to take delivery of a Ferrari California and we are expecting a Lamborghini LP 640 before the end of September.” When asked what sort of people were members of the Club, he replied, “We have movie stars, bankers, doctors and dentists,
green grocers and brokers.” However Peter exercises absolute discretion when it came to naming names. TB
Specs:
Ford GT
Price:
Estimated to be over $500,000
Engine:
5.5 litre V8, 390kW, 680 Nm torque
Transmission: 6-speed manual transmission Weight:
1,590kg
Performance: 0 – 100 km/h 3.8 sec; top speed 330km/h
No other car on Australian roads today turns as many heads as the Ford GT. Maybe because there are only two in the country! No, it’s because of its wild looks!
SUPERCAR
Ford’s re-incarnation of their all Ferrari conquering 60s GT40 race car typifies the American supercar. It’s big, loud, fast, attention seeking and totally pointless. This is why it has received so much praise worldwide.
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any have said that the Ford GT is what a pure supercar should be. It’s raw, has no electronic aids (except for ABS), and would only feel at home if it was on a race track. At 2m wide, it’s just not practical to thread through the Sydney traffic and narrow roads. And with absolutely no storage (not even a glovebox!) you can’t even take it up the coast for the weekend. But all that is forgotten when you bury your right foot into the floor and Ford’s fastest production car ever, leaps forward like a caged animal that has just been unleashed. However, with over 390kW available from the supercharged 5.4 litre V8,
you have to make a few checks before you do this:
1. Make sure there is no one either side of you. With no
traction control, it’s likely to fishtail sideways – even on dry tarmac. Also you don’t want to scare any other drivers with the enormous exhaust note.
2. Be sure there is at least half a kilometre of clear road
ahead of you. The Ford accelerates so fast, that you’ll be up the rear of anything within seconds.
3. Be prepared to lose your license. 4. Hold on!
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Unemployed
Student
Employed
60+
45-55
35-45
25-35
20-25
15-20
Business Owner
Unemployed
50%
35% Seminars 26%
Books 31%
25%
Offshore
Internet
Bank Interest Forex Currency Managed Funds 15-20
Offshore
Managed Funds
15-20
36%
36%
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61% 59%
56%
CD’s
16%
Personal Coaching Internet
20-25
60+
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CD’s 7% Seminars
36% 16%
31% 14%
you in?
Books
Commercial Property
Share Investments
Residential Investment Property
Managed Funds
20%
Bank Interest 60+
45-55Commercial Property
25-35
Share 35-45 Investments
Residential 25-35 Investment Property
20-25
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Bank Interest Offshore
Share Investments Residential Investment Property Commercial Property Share Investments Bank Interest Commercial Property Managed Funds
markets do you follow?
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Books 61% 20% Seminars 59%
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Options
Shares/Stocks
60+
35-45
45-55
Forex Currency
Commodities
CFD’s
Options
Shares/Stocks
www.thinkbigmagazine.com CD’s
25-35 60+
20-25 45-55
15-20 35-45
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26% 50% 36%
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Share Employed Investments Unemployed
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5
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7% 39% Shares 6%31% 39% Books 71% 16% Funds 55% 20% Managed 20% Managed OwnerFunds 14% 61% Seminars Occupied 50% Own Business 72% Bank Interest 14% 16% Bank 0.44% Interest2% 14% 59% CD’s 14% 16 39% 14% Shares Superannuation 14% Superannuation 2% 56% Internet 0.44% Key Point: thinkBIG Key Point: The thinkBIG subscribers have a 20% Managed Funds A large majority of the Commercial 13% Commercial 13% 0.44% 2% subscribers are owner occupiers. broad Property range of current investments. Property Personal 49% Coaching Bank Interest 14% 30% Teleconference When investing 14% in shares, which What age group are Superannuation
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Bank Interest
29%
15-20 Managed Funds
46%
46% Property 29% 36%
Own Business
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Current investments
0.44% 2% Internet 30% Teleconference 0.44% 2% Personal 49% $20,000 Coaching -$30,000 $30,000 Personal Coaching 0% -$50,000 $20,000 14% Superannuation $10,000 30% Teleconference 16% 37% -$30,000 $30,000 -$20,000 1% Teleconference 14% 3% $10,000 0% -$50,000 89% Commercial 13% $5,000 46%1% -$20,000 Property 46% -$10,000 29% 0.44% 2% 3% 29% 35% 35% 8% $5,000 Key Point: On average each subscriber is planning to make 2 Key Point: A majority of the subscribers are in 89% 26% Key Point: A large majority of those -$10,000 26% investments in the next 12 months. Half the subscribers intend to the 35-55 age groups. These age groups have the actively investing in shares directly invest <$1,000 8% 89% income earning potential. 25% invest in their own business. highest in Share/Stock markets. Books 62% Books 71% 7% $1,000 6% 20% 7% <$1,000 6% -$5,000 62% 25% 61% 16% Seminars Are you interested in buying How much do you spend on personal 24% $1,000 61% Seminars How do14% you prefer to learn? 36% -$5,000 or 63% starting a business in the 35% 20% development seminars, courses, CD’s, 25% Yes No 24% 59% 31% CD’s next 12 months? 59% CD’s 26% DVD’s & books per year? 16% 20% 14% 63% 16% Books 71% 56% Internet $20,000 56% Internet 7% 6% 14% 37% -$30,000 $30,000 Personal 0% -$50,000 $10,000 Seminars Personal 61% Coaching 49% 16% 49% Coaching $20,000 -$20,000 1% 14% 37% -$30,000 3% $30,000 59%Teleconference 30% CD’s $20,000 $5,000 30% Teleconference $10,000 0% -$50,000 2% -$30,000 $30,000 0.44% -$10,000 -$20,000 1% $10,000 0% -$50,000 8% 56% Internet 3% -$20,000 1% $5,000 3% <$1,000 -$10,000 Personal 49% $5,000 Coaching 62% 8% 89% 89% -$10,000 $1,000 8% -$5,000 30% Teleconference <$1,000 Yes No 24% 62% <$1,000 $1,000 62% 25% -$5,000 25% Yes No $1,000 24% 20% -$5,000 20%With an average of 3 responses each, the thinkBIG Key Point: 38% of the thinkBIG subscribers spend more than Key Point: Key Point: Consistent with the thinkBIG Books 71% 89% 24% $1,000 per year on Personal Development including 13% subscriber likes to learn from a wide variety of resources. entrepreneurial theme, a large majority of 16% 16% spending more than $5,000. the subscribers are interested in buying or 14% 63% 14% 61% 63%starting a business Seminars in the next 12 months. Owner Occupied Bank Interest 72%
www.thinkbigmagazine.com Interest
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35%
20%
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70 thinkBIG
awareness, planning, trust, action, flexibility. Combining and using the four phases and the five keys can help women achieve personal fulfillment, success and well-being. There is even a chapter on what men need to know. In parts, concentrating on the information being imparted can at times 46% seem laborious, 29% but for those who truly see themselves as a 35% 21st-century woman with the ability to understand, appreciate 26% and acknowledge this unique female approach, they will be rewarded. Reviewed by L.K. Denning 7%
Bank Interest
Unemployed
Student
Employed
Shares
Unemployed
Student
Own Business
shame and blame scenario. Suze uses anecdotes from her own journey toward financial freedom and security, making it an entertaining journey for the reader. She highlights eight Renting qualities of wealthy women, where one thing she covers is the 28% need for women to stop putting themselves on sale and start valuing themselves as financially able beings. The book offers a series of practical and easy commitments in a time frame that is achievable and the book’s goal is to heal the relationship Owner women have with money. Reviewed by L.K. Denning Occupied
by Miranda Gray
29%
Future Investments - What are26% you Renting 46% Renting intending to invest in within the 28% 29% 28% 35% next 12 months? 7% 6% Property
72%
The Optimized Woman shows women how our menstrual cycles can positively influence day to day life and how to use that knowledge to form a personal daily plan. Miranda offers a comprehensive read on the topic and has come up with four distinct phases in a woman’s monthly cycle: creative, reflective, dynamic, expressive. Awareness of these phases helps women understand our best times for doing different activities, allowing our abilities to be enhanced. She gives five keys to using the concepts in establishing a daily plan:
35% Owner Occupied 26% 1%72% 5% 5% Owner 7% 6% Occupied Property 72%
46%
Managed Funds
14%
Property
Renting 28%
Key Point: Consistent with the thinkBIG entrepreneurial style, a high proportion of subscribers are business owners.
Commercial Property
Women & Money by Suze Orman A must-read for any woman who wants to be financially savvy and in control of her financial destiny. Suze knows from four decades of talking with women about money that most of us would rather have someone else worry about and control our finances. Suze shines a torch on why many women continue to remain in the dark over how to get a functioning financial future and offers encouragement bundled with a challenge to all Australian women: start valuing ourselves and take responsibility for our finances, instead of living out the
woo-woo. 36% One of these new things is to listen to the stories we tell ourselves. Let’s look at money. How do you talk to yourself Renting about it? Do you go over all the wealth you have? Or do you 28% go on a visualisation lack-finding mission? As the popular 5% continues, Esther and Jerry 1%Attraction practice of the Law of Hicks will be the ones taking us to ever deeper understandings of how to craft our desired reality. Reviewed by Daniel G. Taylor Employed
Isn’t it funny how a subject becomes popular and everyone thinks they’re experts? Esther and Jerry and Abraham — spiritual beings Esther channels — show we can always go to new places in our conscious practice of the Law of Attraction. The book looks at many topics — money, health, relationships — but goes into each in enough detail to give you insights you can begin using immediately. The book contains great wisdom even if you’re one of the people who will find the presentation
The Optimized Woman
5%
1%
58% by Esther and Jerry Hicks
Business Owner
Money & the Law of Attraction
1%
14%
Bank Interest 13% • Conducted onCommercial the 21st of August16% 2009; to the thinkBIG 14% Superannuation Property 14% subscriber database of 42,000. Superannuation Commercial 2%male and 48% 13%were female. • Of the respondents 52% were 0.44%
Property
46%
58% 36%
Superannuation Bank Interest
14%31%
Reader Survey
36% 29%
perfect for your customers and offer them in the places at every point your customers come into contact with you. So far, I’ve started putting these ideas into practice with my weekly e-newsletter. Instead of only earning money from work commissioned by people who read it, I’ve added my Amazon affiliate links to books I recommend and offer deals from third parties. Mark Joyner has led us to a cliff — and now it’s time to take the leap into unlimited profits. Reviewed by Daniel G. Taylor
Bank Interest Managed Funds
Own Business 39% Owner Occupied Shares 20% 72%
20% 36%
Shares
5%
Home Ownership
58%
Renting 36% 28%
Business Owner
Mark Joyner thought leads online marketing. If he says jump off a cliff, savvy business people leap. The core idea of Integration Marketing: use every contact point with customers to increase your profits. McDonald’s are masters of integration marketing. They always ask “Would you like fries/apples with that?” and they’ve partnered with Coca-Cola to sell Coke, combining two of the most powerful brands with similar brand experiences. You don’t need to create new products for new profits, instead partner with people who have products
of respondents
1%
Offshore
Daniel G. Taylor publishes a weekly e-newsletter – Thought Leadership – spotlighting ideas from the best success books. Email daniel@danielgtaylor.com to subscribe.
Owner Occupied 72%
Offshore
Reviews edited by Daniel G. Taylor
Renting Occupation 28% 58%
by by Mark Joyner
EmployedStudent
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Thought Leadership Integration Marketing
Employed Business Owner
Business Owner
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Managed Funds
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1%
CALENDAR of
EVENTS 2009 UNIVERSAL EVENTS
Business Chicks
Wealth Propulsion 3 day training - November 27-29 CH NLP Foundation Skills 2 Day Training October 30-31 Fast Track to Success Trainings NLP Results (Level 1) Sydney October 17-23 Brisbane November 19-25 NLP Master Results & Performance Consultant Certification (Level 2) Auckland October 16-22 Sydney October 25-31 Adelaide November 23-29 Presentation and Platform Skills Training (Level 1) Sydney November 3-9 Performance Revolution Brisbane 25-27 Billionaire Bootcamp Fiji November 14-20 Design Your Destiny Sydney November 27-29 www.universalevents.com.au
Wednesday October 14 - Brisbane Lunch & Learn Event Thursday October 15 – Adelaide, Business Chicks Breakfast Friday October 16 – Sydney, Business Chicks Breakfast Wednesday October 21– Perth, Business Chicks Breakfast Friday October 23 – Melbourne, Business Chicks Breakfast Last Thursday Club Thursday October 29 – Sydney, Last Thursday Club Educational Event Last Thursday Club Thursday November 26 - Sydney, Last Thursday Club Educational Event www.businesschicks.com.au
21st Century Academy Eminis Live Webinar Eminis Live Webinar Eminis Live Webinar Eminis Live Webinar Eminis Live Workshop Eminis Live Webinar Eminis 2 Day Live workshop Eminis Live Workshop Eminis Live Webinar ini Eminis Live Webinar Eminis Live Workshop Eminis Live Workshop
and enjoy Australia’s largest collection of Supercars
MBE - Building Wealth Through Business Friday October 9 – Hills District Wednesday October 14 - Sydney Wednesday October 21 - Brisbane Saturday November 7 - Melbourne www.mbeeducation.com.au
CCORP Presents CDevelop Property Development tour: Secrets of the Wealthy Tuesday October 13 - Sydney Tuesday November 3 – Brisbane Wednesday November 11 - Melbourne Tuesday November 17 - Adelaide www.cdevelop.com.au/events
Tuesday October 13 Tuesday October 20 Tuesday October 27 Tuesday November 3 Monday November 9 Melbourne Tuesday November 10 Saturday November 14-15 Perth Monday November 16 Perth Tuesday November 17 Tuesday November 24 Monday November 30Auckland Monday December 7Gold Coast
Magic Moo Cow Seminar
- Generating Cash flow using the Buy Write Tuesday October 20 - Brisbane Wednesday October 21 - Sydney Tuesday October 27 Melbourne info@freedomevents.com.au
www.21stCenturyEducation.com.au
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Join the Club
If you want to be part of this events calendar send your information to thinkBIG graham.maughan@thinkbigmagazine.com www.thinkbigmagazine.com
Live the Life - New Memberships Now Available! Experience the thrills and excitement of driving the world’s most amazing cars, without the costs and burdens of ownership. From the explosive Lamborghini Gallardo Superleggera, to the iconic Ford GT and opulent Rolls Royce Phantom Drophead, membership to The Supercar Club gives you access to over $10 million worth of motoring ecstasy in locations around Australia. Individual and Corporate Memberships now available from $19,000* per annum. Please contact Peter Dempsey for more information on 02 9969 7344.
Supercar Drive Days Want to dip your toe in the water? Our Supercar Drive Days enable you to experience five supercars in one day, giving you memories that will last a lifetime. Only $1,320 per person If you book a Drive Day and then join The Superar Club before the end of the financial year, the Club will take the Drive Day cost off your membership fees.
* Subject to GST
Sydney | Melbourne | Brisbane
www.supercarclub.com.au www.thinkbigmagazine.com
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how to
RAISE CAPITAL for any business
ABOUT REUBEN BUCHANAN The Keynote Presenter is Reuben Buchanan, the former founder of Wealth Creator magazine. He will share with you specifically how to raise capital for ANY business or start-up, no matter what industry, stage, location or phase the business is at.
The workshop, titled Building Wealth Through Business, focuses on raising venture capital for private companies. Also how to sell a business for the highest price, giving you and your investors a positive return. At this workshop you will learn the following:
Reuben is an entrepreneur and media commentator for capital raising and has been interviewed by the Financial Review, Sydney Morning Herald, Daily Telegraph, Sky Business, Smart Company, Anthill Magazine, Boardroom Radio, Financial News Network, any more, about how to raise capital.
• How to Raise Capital for any business in any market • Valuations – how to value your business, even if it has no profit • 12 ways to double the value of your business or idea immediately • How to exit or sell your business for the highest possible price • The specific steps required to raise capital and build a valuable business • How to find high net-worth investors • How to start or buy a business with none of your own capital
www.homebiztopearner.com or call the 24 hour hotline 1800 72 12 51.
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He has also spoken for the Department of State and Regional Development (NSW State Govt), CSIRO, AIM, RMIT, Sydney Uni and Swinburne Uni. He is also the founder of Wholesale Investor magazine, a publication that connects companies seeking capital, with over 4,700 high net worth investors. Reuben has raised tens of millions of dollars for both his own companies, and for clients over the last 8 years.
IC Frith is among the top-10 insurance brokers in Australia and New Zealand. We provide professional insurance advice to associations, companies, partnerships, sole traders and individuals about issues including risk identification and minimisation, policy selection and claims administration.
Learn how to make money while you sleep trading global markets, using proven, little known diverse strategies most traders will never know or understand. www.lifestyletrader.com.au/thinkbig
SPEND A DOLLAR TO MAKE TWO Increase the value of your residential or commercial property by improving it’s appearance. We guarantee professionalism, the highest quality and standard of service. Servicing the greater Brisbane area, Gold Coast and the Sunshine Coast.
For a free no obligation quote phone: Adam 0404 869 478 or Shannon 0430 200 353 We are focused on adding value to your property. 74 thinkBIG
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ABOUT THE WORKSHOP
CLIENT RESULTS
SPECIAL OFFER – ATTEND FOR FREE! Readers of this issue of thinkBIG can attend at NO CHARGE. Each reader is entitled to two tickets, valued at a total of $990. These events are run regularly in Melbourne, Sydney and Brisbane (Australia). Steps to claim your two free tickets: 1. Go to www.mbeeducation.com.au 2. Click on Events, then Event Calendar 3. Select the city and date that suits you 4. Complete your details 5. Remember to enter the Promo Code “TB” to receive your two free tickets (otherwise you will be forced to pay $990)
ery of busines t s a s “Within 30 minutes I decided that it was one of the bestm events I’ve ever done! If you’re n e e p u rsh tra e looking at getting into business, starting a business from scratch or n acquiring e ip business, this information is invaluable. “ & DOMENIC CALABRO – Biotech Australia “I would recommend anybody who really wants to learn and network and grow, definitely come along! I can absolutely endorse it’s a great investment of your time!” ROD YOUNG – DC Strategy (also on board of Boost Juice)
EDUCATION
PRESENTS
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“I came to the workshop to learn, but to also find an Investor. I didn’t find one investor, instead I found TWO! I can’t thank you enough for the information.” MONICA ALEKSANDER - Handbag Partners
If you can’t book online, you can phone us on 1300 858 418.
“I implemented these new strategies and immediately started 2 further businesses! Take lots of notes and see it as a great networking opportunity. I don’t know of anything else like this!” NOEL CURRIE - Australian Business Sales Corporation
To avoid disappointment, you must register for this event immediately. This issue of thinkBIG magazine will be read by over 50,000 people. Workshop numbers are limited so to guarantee you place, take action today.
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