~Robert Kiyosaki

The other day, my wife and I were shopping for a new car. We stopped by the Cadillac dealership because we wanted to see the new Escalade Hybrid. The lot was filled with new cars. There were at least 10 salespeople ready to help us, but there were only two customers: us. I felt bad for those salespeople and the staff. I wish I could say we purchased a new car, but we didn’t.

Many people blame the automakers for the problems that they are facing–and they are to blame, but not completely. As entrepreneurs, we can all learn at least three big lessons from the auto industry mess:

1. Leaders should be on the same compensation plan as the sales staff. If Detroit’s leaders were paid only for the number of cars sold, they might be better businesspeople. Instead, the leaders have megasalaries, private jets, midweek golf outings and benefits suited for royalty–all unrelated to sales or company health. These corporate leaders have been stealing from the company, workers and investors who gave them so much. To be a great entrepreneur, be a leader who works for those who work for you. As the head of my company, I work for my customers and my workers. If my company is not profitable, I should not get paid.
2.  Leaders listen to the customer. Never forget: It was the customer that wanted the big SUVs and trucks. An entrepreneur needs to have a crystal ball and prepare for changes in the customer before the customer changes. As my company’s leader, I have been preparing for this economic downturn for years. As some of you know, I have spoken out against the financial planning industry, mutual funds and the financial gurus who recommend them. Instead, I have been an advocate of personal financial education and have built my company around it. Today, my company’s sales have increased as more and more people realize that a well-diversified portfolio of mutual funds is not a safe investment and investing in a financial education might offer a better return.
3. Politicians reward incompetence. Many of the politicians the Big Three automakers were begging for money are the very politicians who protected the inefficient industry. It was the politicians who protected the unions and high wages. Most entrepreneurs do not have the benefits of high-paid lobbyists and friends in high places. I realize President Obama promises change. But never forget: He is a politician, not an entrepreneur. Getting elected takes more than just money. That is why entrepreneurs need to watch what politicians do–more than what they say.

Big Lessons from the Big Three

Quickplan D.I.Y, a free on-line business plan course, is launched. It brings the tools, support and knowledge needed to design and launch new businesses. When used by existing firms, it will provide new insights.

“Everybody needs a new set of skills,” says Peter Mehit, co-founder. “The changes to our economy will be structural. It’s critical that people learn how to evaluate a business idea and then launch and run it, because the world is going to look very different a few years from now.” The company believes that acquiring these business skills is a prerequisite for prosperity in the new reality.

The course contains eight instructional videos, a MS Word business plan template and a MS Excel financial model template, available at the company’s web site. The program is also offered on DVD at a nominal charge for those living in low bandwidth areas, having limited computer access or who just want to have the program in video format.

The program, which has been taught to hundreds of students, business owners and entreprenuers, takes users through how to figure out if a business idea will be profitable, the reasons for a business plan, building pro forma cash flow models, doing market research and pulling the written narrative together. The company also offers support for the D.I.Y. course as well as guided development courses.

“Whether the program is used to write a complete business plan or not, the fundamentals discussed are important for anyone that needs to create their livelihood,” says Mehit. “I heard someone say ‘this is bad as it’s going to be’. The fact is, nobody knows what’s next. You have to become your own rainmaker”

For more information about Quickplan D.I.Y., visit www.wbpllc.com/quickplan/.

Source:
Quickplan D.I.Y

First, think like an investor, not an accountant or an attorney. That simply means seeing the true value of something rather than just considering the original price. If you can see what someone else can’t — like how existing zoning will limit or expand what can be done with acreage – you can identify low or no risk investments.

Also, you must have an entrepreneurial spirit and a love for that lifestyle. Investing isn’t for those with a “saver’s” mentality as making money and attaining wealth are about mind control — how you view an opportunity and what you are willing to spend in order to step up the value are key.

So says Robert Kiyosaki, author of The New York Times best seller Rich Dad, Poor Dad. He explains that the more you invest with control, the more profits go up and risk goes down. In large part, this is a matter of ownership and power over outcome, something you can’t get by participating in a mutual fund or buying stocks and bonds.

Six Critical Controls

According to Kiyosaki there are six critical controls to help you manage your financial statement for an investment; they are:

• income

• expenses

• assets

• liabilities

• financial training or management

• insurance

Financial Training

Although listed as number five, the most important of these is financial training as without it you can’t control the other five elements. Unfortunately, this is not something we learn at school but, luckily, in today’s global and web-based world there are many options for gaining the learning you need to become an expert at investing with control.

Controlling Income

With respect to the other critical areas Kiyosaki identified, controlling income is about making sure there is some and that you have a say on how much that will be. Think about owning rental properties where you can set the monthly fees versus opening a savings account where the bank controls how much interest you’ll receive.

Controlling Expenses

With expenses, the old adage is definitely true; you often have to spend money to make money. The point is to do it as necessary and wisely, whether it’s upgrading rental property by painting the apartments or increasing the advertising budget to see more of a product you make.

Controlling Assets

To do this, you need to be able to shift the gears in your head so that you’re seeing all the possibilities for making money and measuring them against expenses. Kiyosaki again uses real estate as an example: consider a piece of land that could be used for varied purposes, some at no additional cost.

However, if you think a bit out of the box you could build a mobile home park which, although it necessitates building an infrastructure, the costs associated with obtaining zoning changes and different capital gains taxes, has an ultimate value to the entrepreneur that is exponentially magnified.

If you don’t do these things you negatively affect your assets; remember even small changes can lead to large rewards. The learning here is that asset control can impact the speed at which your investment gains value. It’s as simple as deferring maintenance on that apartment building to keep expenses low or making the repairs now and being able to up the rental fees.

Controlling Liabilities

With respect to liabilities, pay cash where you can, refinance at a lower interest rate or sell equity instead of borrowing to pay off debt.

Controlling Insurance

Carry insurance and consider bypassing any investment where you can’t.

Raymond Aaron,
New York Times Top Ten Bestselling Author, “Double Your Income Doing What You Love”

Read more from the original source:
Raise Your Income Using Robert Kiyosaki’s Formula of Investing With Controls

With all that’s going on in the economy nowadays, many new graduates are finding that the current state of the financial markets is one more challenge they have to face coming out of school. Staying on top of your finances is key to getting ahead, regardless of the economy. That’s why budgeting is so important. Here are some tips for creating and maintaining a hassle-free budget that enables you to easily manage your dough.

Make a budget. While following a budget after school sounds like more work, it’s vital to ensure that you stay on track of finances after college. With loans to pay and probably not much income coming in, a budget gives you a good idea of where you stand. Even if you scratch down your monthly bills and expenditures on a piece of paper, you’ll still see where you need to put your money and where you can cut back spending. Many recent college graduates are intimidated by making a budget—the truth is that you don’t have to keep track of everything using the latest financial software…something simple will do.

Review your budget regularly. The budget won’t work unless you repeatedly review it. For example, if you’re not making your minimum credit card payment month after month, there’s a problem and you’ll need to see where you can take money from to make the payment. Looking at the budget helps you remember where funds need to be allocated so you don’t wind up doing something like getting extra money one month and blowing it all on something frivolous because you think you have “extra” spending cash. Even if you’re a savvy spender, knowing what your expenses are will help you be more aware of your financial status.

Adjust your budget as necessary. The great thing about a budget is that it can be amended. For example, if you’re just out of school, you may not be paying off student loans for the first six months. But when that payment is added to your expenditures, it can hurt! So you’ll need to constantly re-evaluate where money is coming and going. Think of your budget as a living document—you have the power to revise it at any time and doing so can keep you on top of finances. You’re in control of your financial future when you take time to become aware of it.

Integrate your budget into your long-term goals. There will come a time when you’re not just getting by and you’ll want to think about what you want out of things on a long-term basis. If you’re planning on getting a promotion next year, don’t spend that money as if you have it already; instead, plan to use the extra money when you get it to pay off something like credit card debt, which usually has a higher interest rate than school loans and isn’t tax-deductible. Are you getting married soon or getting your own apartment? Once you get on your feet, you can plan on starting a separate fund and putting money towards things you want.

Keep your chin up. Remember that everyone is going through a hard time after college. You may not get the job of your dreams or be living where you want to. School loans may be overwhelming and the economy can be shaky. You may give in to a silly purchase or wind up losing money. You don’t always have to stick to your budget—but stick to the process of budgeting and take control of your finances. That’s your best defense against the crazy “real world”…and the best way to ensure you’ll make it out there.

- Kristen Fischer

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Staying Aware Of Finances Is Vital For Recent College Graduates Entering The Workforce