Wealth is a subject I like to debate. Art is one very interesting one as well. I am not interested in how the artist has painted a painting, I am more interested in the wealth related part of that painting. The "collector value" so to speak.
For example: Create 4 equally looking paintings (or have a good artist do 4 equally looking paintings). Then sell one of those paintings as expensive as possible.
Example:
4 equally looking paintings is created by an artist (paid by you). You get all 4 paintings. One of the paintings is sold by you at an auction. You recieve $100,000 for this one painting. The other 3 paintings is kept by you. These 3 paintings are valued at $100,000, each, after the auction sale of one of the paintings. That means you hold paintings worth a total of $300,000 ($100,000 X 3 equally looking paintings).
Wealth created out of necesity.
måndag 28 april 2008
lördag 12 april 2008
Time Management
Time management is the ultimate way of doing more with less time. It is also the ultimate way of making things happen instead of postponing things. Because when you have a clear deadline everyday where you are forced to do a certain thing in a certain time frame (or wait to the next day) you will do it more effectively. You will find ways of doing it. Otherwise you will lose.
And this working time frame each day is there for a reason. The reason is to tell you that when this time frame is over, the working day is over. And if you haven't reached the effectiveness and productivity in that time frame you will have lost one day of your life to bad time management. If you are working for someone else you have in most cases 8 hours of work. Then you go home and you don't work more hours that day. No for your employer anyhow.
When you are an entrepreneur you don't have those clear distinctions between work and play time. You have to set those time frames yourself. Otherwise you will certainly burn out. Sooner or later.
I work 3 hours and 20 minutes each day (Saturdays and Sundays included).
My schedule looks like this:
-2 hours 30 minutes - checking mail and writing mail.
-10 minutes - reading online businss news.
-1 hour - reading a book of my choosing.
-10 minutes - talking on the telephone (business only). This requires dicipline. I gotta tell you. I usually give delegations by telephone only. Updates is done by my COO or anyone else by email only.
-30 minutes - Reading/writing forum threads to keep up with other peoples ideas. Inspiration purpose.
In order to succeed with this kind of time management you need to use your creativity and your focus on getting things done in much, much less time. And you need to have a clear disticntion between work and play time. It is like when you start a company. You don't use your personal bank account as your companies account. You open up a separate account for the business. The same goes with your time.
And this working time frame each day is there for a reason. The reason is to tell you that when this time frame is over, the working day is over. And if you haven't reached the effectiveness and productivity in that time frame you will have lost one day of your life to bad time management. If you are working for someone else you have in most cases 8 hours of work. Then you go home and you don't work more hours that day. No for your employer anyhow.
When you are an entrepreneur you don't have those clear distinctions between work and play time. You have to set those time frames yourself. Otherwise you will certainly burn out. Sooner or later.
I work 3 hours and 20 minutes each day (Saturdays and Sundays included).
My schedule looks like this:
-2 hours 30 minutes - checking mail and writing mail.
-10 minutes - reading online businss news.
-1 hour - reading a book of my choosing.
-10 minutes - talking on the telephone (business only). This requires dicipline. I gotta tell you. I usually give delegations by telephone only. Updates is done by my COO or anyone else by email only.
-30 minutes - Reading/writing forum threads to keep up with other peoples ideas. Inspiration purpose.
In order to succeed with this kind of time management you need to use your creativity and your focus on getting things done in much, much less time. And you need to have a clear disticntion between work and play time. It is like when you start a company. You don't use your personal bank account as your companies account. You open up a separate account for the business. The same goes with your time.
söndag 6 april 2008
Start-ups and banks
Many start-up companies are stuck when it comes to bank financing. Why is this? Simple, they have no cashflow history. They have no earnings history.
So the simplest way to get a loan from a bank if you have a start-up company is by getting long-term contracts signed and clear.
This works like this:
You have produced a new beer product. You walk around to local pubs and they find your idea very interesting and sign themselfs up for 2-3 year lease or purchase agreements. Why agreements? Simple, with agreements you now have a history (all though a future history of revenue). The bank will like this. With these agreements you have a proven revenue stream 2-3 year into the future. You also have your customers creditworthiness working to your advantage (a start-up company is per automatic not creditworthy).
The next step you need to understand in order to get a bank to give you money to deliver your product/service is how much you will earn on the agreements. Banks will lend only a certain percentage (75% in Sweden) on the annual earnings divided by the cap rate you are given.
So if you make $100,000 annually in earnings (after fixed expenses and before taxes) the bank would give you $75,000 in Sweden divided by a cap rate. In this case we say the bank will give you a fixed 10% cap rate on $75,000. This would give you $750,000 that you could use to finance your company and get things moving (assuming an interest loan).
Sounds overly simplified and unrealistic, but test it before you dismiss it, will you. I think you owe it yourself. The worst thing that could happen to you is getting a "no" from every bank in the world. How horrible can that be? There is always hard money lenders (private lenders) if the traditional banks should say no (which would be very strange by the way).
So the simplest way to get a loan from a bank if you have a start-up company is by getting long-term contracts signed and clear.
This works like this:
You have produced a new beer product. You walk around to local pubs and they find your idea very interesting and sign themselfs up for 2-3 year lease or purchase agreements. Why agreements? Simple, with agreements you now have a history (all though a future history of revenue). The bank will like this. With these agreements you have a proven revenue stream 2-3 year into the future. You also have your customers creditworthiness working to your advantage (a start-up company is per automatic not creditworthy).
The next step you need to understand in order to get a bank to give you money to deliver your product/service is how much you will earn on the agreements. Banks will lend only a certain percentage (75% in Sweden) on the annual earnings divided by the cap rate you are given.
So if you make $100,000 annually in earnings (after fixed expenses and before taxes) the bank would give you $75,000 in Sweden divided by a cap rate. In this case we say the bank will give you a fixed 10% cap rate on $75,000. This would give you $750,000 that you could use to finance your company and get things moving (assuming an interest loan).
Sounds overly simplified and unrealistic, but test it before you dismiss it, will you. I think you owe it yourself. The worst thing that could happen to you is getting a "no" from every bank in the world. How horrible can that be? There is always hard money lenders (private lenders) if the traditional banks should say no (which would be very strange by the way).
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