Building Wealth - Cutting Costs

Writing a business plan can be a daunting task the first time you do it. So many would be great entrepreneurs have a great idea and need funding for it, some even self fund or boot strap their business and they all have big plans. They will tell you how big their company will be some day or why you should invest your money but most do not have a formal business plan.

Just this last week I was presented with a new idea that I really thought was excellent and the entrepreneur was clearly working hard and committed to getting the product to market. She was excited, smart and full of enthusiasm and of course wanted me to invest in her idea.

Now here is the reality the venture could be huge or a huge flop and that risk is always present so the risk is not why I turned her down. Nope it was the lack of a business plan that did it. She even had great packaging and was lined up to do trade shows and meet some perspective buyers from major retail chains. The risk is still there so I must make a risk assessment as an investor.

How I make a risk assessment

This is pretty simple I know the results if the product totally flops that is a 100% loss right? Yet what a business plan will tell me is what I can expect to see in gross sales and return of investment at various levels of success. How can an entrepreneur expect investment if they can’t even tell me the return I will get and in how long if things go right, mostly right or moderately successful. I need the numbers for all those out comes to weigh the risk reward, without that I can’t even get started.

I also may not understand the market, the supply chain, the competition and the total market cap and opportunity in a new niche.   I need it spelled out and I need to understand the marketing that the company will use to communicate its message to the world. Additionally if I am to put my money or even just partner with assistance/consulting with a company need to know their vision.  More importantly I need to know they understand their own vision. All of these things are addressed with a proper business plan. Even if you don’t want investors you need a business plan to be sure you have your own vision right, your own risk/reward ratio strait and to help you make the right decisions.

How do you do it? Easy turn to one of my heroes in business, Donald Trump for some free assistance. Trump University offers a free How to Write a Business Plan course you can sign up for and lean a ton from. I also recommend the excellent free business templates available from Score. They have templates for business plans, financial work sheets and other needs.

As I have said many times on this blog one of the best ways to build wealth is with the proper use of real estate as part of your investing portfolio. The problem for most people is simply where do you start? I mean there are countless techniques like buying foreclosures, land lording, flipping properties, buying foreclosures and foreclosures or buying and managing multi tenant properties.

I have always also believed that in the day and age of the internet it is collective intelligence that helps people skip making countless mistakes in favor of learning from the mistakes and experience of others. Today by sharing information people are able to do more and learn more faster then ever before So, when I was asked to have a look at a new real estate website, Investors Lounge Online, and their brand new real estate investment forum I was happy to do so and let my readers know about it.

I found the site to be beautifully designed with excellent resources including a great articles section, advice on financing, great FAQs, advice on auctions and a ton more.  The site even offers some great real estate tools.   I think however, it is the forum with the most long term potential.  Right now it is brand new and it could really use some folks to join and get it started off with a bang.  The forum is feature rich and again the design is just excellent.  They even have translation functions into 10 languages, talk about bringing collective intelligence across the globe.  With outstanding information and resources and a forum that is sure to become an outstanding resource of its own Investors Lounge makes my list of recommended sites.

One of my people who knows me as the true author of this blog absoultely hates the “Mandigo Theme” I have on this blog as of right now.

[If you don’t see a blue swirl like mark in the header that means I changed it since this post.]

I honestly have been using it for one main reason and that is a feature it has that I have yet to find another theme that had it built in. That feature is the ability to not display some of the pages in the navigation of the blog.

What I mean is like this, say I want a nice page that says “Thank You for Subscribing to my Blog” after an email opt in. Right now if I use the “Pages Feature” in Word Press and publish it then it shows up in my page navigation. Now I really don’t want a link that says “Thank You for Subscribing to my Blog” across the top of my blog do I? It wouldn’t make sense to a visitor if they clicked on it.

Also perhaps in a given post I want to promote a product and have a sales page for it. May be I just want to create that page in Word Press rather then with software and then upload it. May be it is a “landing page” to be used with PPC or for any one of many reasons I just want a page that is not displayed in the navigation of my site for every visitor. With Word Press I just can’t do it.

So when I found Mandigo despite not really liking the look of it (compared to some other themes) I compromised and used it because it has a tab called “Theme Options” where you can hide or show pages.

Now I have found a much better solution! It is called Page Links Manager, and it is a simple to install plug in that ads a tab to the “Manage” Tab in word press. This plugin takes blogging with word press to a new level creating what ammounts to a real website content management system. With it all you do is deselect the pages you don’t want to display and they don’t show up in the navigation. I put a simple sample page on this blog to show you what I mean, you can see that page here, Page Link Manager Example.

Here is a screen shot of the control panel as you can see it is very easy to use. There are also some folders in the download zip that are for MACOS, just ignore those and upload only the simple .php file and activate and after that it could not be any easier. Great plug in and very big Kudos to the author.

I have blogged a lot on gold, silver and other metals thus far because I firmly believe that they represent a great hedge against inflation, a good long term investment and because I feel they offer a lot of protection from the coming recession. So when this article from Forbes hit my RSS Reader this morning I was quick to have a look at it. The article is title, Gold’s Allure Growing, and I recommend you give it at least a quick read.

While I found the article interesting and quite accurate I do feel they sort of glossed over a key reason for gold going up recently and a reason that gold will continue to go up for quite a while. Here was the only mention of this factor in the article,

“Demand for the metal is also strong in Asia, for jewelery and as a store of value.”

That was the only mention of this factor in the entire article and I find this very much missing the boat. Why? Well, because with China and India what we have is more then 2 Billion (with a big B) people who are rapidly growing their middle class and both societies have a tremendous appetite for gold jewelry. I recently read a report on of the foremost expert on gold and mining operations who stated that we currently have “at least a 10% shortfall on the production vs. demand for gold most of which is attributed to the rising demand in India and China for gold jewelry.”

In other words those 2 billion people are buying gold faster then it can be extracted from the ground. The big issue with that is it has never happened before. The demand for gold has always been based on how rare it is and that has always created a demand yet until now anyone could always buy as much as they could afford. Today we have unmeetable demand and the demand is growing faster then the production and again this is the first time in modern history that such a condition has existed in the gold market.

I highly advise any investor (small or large) to have a serious heart to heart conversation with your financial advisers about putting at least 10-20% of your holdings into gold, gold funds, etc. The increased demand and declining dollar together make gold a real winning opportunity at least in my opinion right now.

If you own a retail outlet a great way to get a truly honest assessment of your service is to use a mystery shopping company to evaluate you with no bias or confusion.  I recently was asked to check out a web site that provides this type of service called BestMark and I must say I was impressed.   Rather then just sending some mystery shoppers to your store they provide professional consultants that have in-depth experience guiding programs from inception to ongoing execution to analysis to solution implementation.  That all adds up to put BestMark on my list of recommended sites for owners of retail outlets.

What I really like about using a service like this is the completely honest feed back that it provides and how that data can be used to improve your service.  While you are your location you view it via “rose colored glasses” and you have no real idea how the service is when you aren’t there (when the cats away…) and these services put you directly in touch with the reality on the ground.

I talk a lot on this blog about things like saving, investing and making money. I encourage people of every walk of life to spurn consumer debt and build wealth so they can live good even when times are bad. I want to shift gears a bit today though and talk a bit about how to protect your hard earned wealth.

I just got done reading a new book called Asset Protection 101 from Donald Trump’s Trump university and I have to say I learned a lot of new ways to protect the wealth I and my family have worked so hard for. In fact basically I just learned how to be a millionaire in reality and at the same time appear penniless on paper.

Of course I got wealthy in the first place by being a bit of a tight wad and knowing how to spot a good deal. So check out this deal from Trump University, buy a copy of Asset Protection 101 today and you also will get the following bonuses

• 3 J.J. Childers E-Books-valued at $19.95 each, these 3 e-books provide you with even more information about protecting your wealth, saving on taxes, and enjoying a stress-free retirement.
• 5 Special Reports-over 100 pages of extra material to help you build your wealth structure (worth $150!).
• The Top 50 Most Overlooked Tax Deductions-this gift alone could save you thousands of dollars when April comes around again!
• J.J.’s Asset Protection Worksheet-the master’s tool to show you where you may be vulnerable to lawsuits and how you can minimize your tax burden.
• Asset Video - addressing specific asset protection issues, which you can view on your computer
• 20% off the registration fee for Trump University’s Wealth Preservation: Asset Protection Retreat featuring instructor J.J. Childers.

There is also an awesome 1 hour free teleseminar. Now for a 20 dollar book those are some great bonuses. I don’t normally tell my readers to go spend money but in this case it will be a Andrew Jackson that is well used. For more information visit the Trump University Site for the special offer on Asset Protection 101.