Another aspect of Time Utilization and Money as it relates to business success is that of how one spends leisure time. Financial education is a must for bustling entrepreneurs and can be likened to riding a bike.
Let us say for example you are interested to learn how to ride a bike. First step naturally would be to read about literature on how to ride a bike. After getting the basics down, you try to get on a real bike to test the theory behind it. After a few applications and a few bumps here and there you decide to ask help from a cousin of yours who knows how to expertly ride a bike and with a few practice sessions, you become better at it. The same is true in business-- Reading about the literature, finding a mentor and applying the principles are crucial to the learning process, but if one spends most of his/her time in entertainment instead of gathering and learning business concepts and trying them out, the odds against success increases.
Financial education needs a separate time allotment and chances are, if you are employed and starting a business on the side then it would be wise to use spare time efficiently by learning all you can about business. This can be a difficult choice to make especially in a world that is full of entertainment options. There is a theory that if you decide to take on difficult options NOW, the process tends to become easier whereas, having an easy life now would most certainly yield a difficult one LATER on. Or in other words, that which is easy becomes difficult LATER ON and that which is difficult becomes easy LATER ON. It's your choice.
Another aspect of Time in relation to Money is the choosing of worthwhile advisers. When we mention about financial education, it would be wise to choose authors that are credible and have real life business or investing experience. It would be futile to grab every book that talks about business. Not everyone who writes about business knows what is actually going on in real life scenarios. It would save you much more time if you could go to sources that can give good, actual and worthwhile advice and find mentors who are actually succeeding in the field of business. It would be a great waste of time if you follow advice from people or authors that do not have real life experience because in essence, you become a guinea pig of sorts.
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It has always been my observation that by listening to a person's habitual words, one can determine the emotional stature of a person towards business, success, risk tolerance and mindset. Words can be very powerful that it can make or break a person's life circumstance. Defining words and knowing their true meaning can be very life changing at the same time.
Another aspect that I have observed that is also a powerful indicator to success is the personal use of time. In our previous articles, we have stated that of the two assets TIME is a more valuable asset than MONEY. In our local culture for instance, there seems to be an abundant resource of TIME SLIPPING BY. Partly downplayed by Economics, the Filipino has a tendency of thinking in terms of "A DAY"- as the basic unit of time. For example, we like to think in terms of a "day's work" since our pay in the Philippines is on a PER DAY basis.
The Western culture on the other hand mentally quantifies time more specifically than most of us.
While the concept of "a day's work" is still ever present, the quantify time on a PER HOUR basis. Changing one word from the phrase has made all the difference. From PER DAY to PER HOUR.
This is not to say that the Western practice is better. There is also a downside also this since, they are perceived as work horses and live in a very structured world. The Pinoy culture on the other hand has a lot more leeway and 'siestas' in between. But in terms of EARNING POTENTIAL, you would know one who earns or gets paid on A PER HOUR basis is way better than those paid on A PER DAY BASIS. If you get what I mean.
The point of this article is that the strong points in evaluating the income potential of a business is by thinking in terms of the smallest units of time. For example if I have a restaurant that is earning a net income of Php 20,000.00, then that would simply say that in my 20 days of operations in a month, the business is earning Php 1000/day, and if I operate for 8 hours in a day, it would mean that the business is earning Php 125/day. If an entrepreneur would use this from marketing point of view, he would use this data to identify "slow hours" and create promotions and programs that would increase the hourly net bottomline. Click Here to Read More...
Another aspect that I have observed that is also a powerful indicator to success is the personal use of time. In our previous articles, we have stated that of the two assets TIME is a more valuable asset than MONEY. In our local culture for instance, there seems to be an abundant resource of TIME SLIPPING BY. Partly downplayed by Economics, the Filipino has a tendency of thinking in terms of "A DAY"- as the basic unit of time. For example, we like to think in terms of a "day's work" since our pay in the Philippines is on a PER DAY basis.
The Western culture on the other hand mentally quantifies time more specifically than most of us.
While the concept of "a day's work" is still ever present, the quantify time on a PER HOUR basis. Changing one word from the phrase has made all the difference. From PER DAY to PER HOUR.
This is not to say that the Western practice is better. There is also a downside also this since, they are perceived as work horses and live in a very structured world. The Pinoy culture on the other hand has a lot more leeway and 'siestas' in between. But in terms of EARNING POTENTIAL, you would know one who earns or gets paid on A PER HOUR basis is way better than those paid on A PER DAY BASIS. If you get what I mean.
The point of this article is that the strong points in evaluating the income potential of a business is by thinking in terms of the smallest units of time. For example if I have a restaurant that is earning a net income of Php 20,000.00, then that would simply say that in my 20 days of operations in a month, the business is earning Php 1000/day, and if I operate for 8 hours in a day, it would mean that the business is earning Php 125/day. If an entrepreneur would use this from marketing point of view, he would use this data to identify "slow hours" and create promotions and programs that would increase the hourly net bottomline. Click Here to Read More...
A couple of weeks ago, I happened to catch a glimpse of a poster advertising that Chinkee Tan was in town. His seminar and book entitled "Till Debt do you part" was catchy and since the tickets were ridiculously cheap (300 pesos) because it was subsidized by the Victory Church, I decided to attend and see what good advice he had to offer.
The seminar venue was quite filled and the speaker started round 1 with a good mixture of jokes, power point slides and a large dose of actual experience. Essentially he was teaching the audience to be personally responsible for their income and take an active part in managing both income and expenses and not leave retirement to chance.
You might be wondering what this has to do with business. It has everything to do with business. In the same way that we personally manage our income and expenses and invest our savings in several vehicles, be it bonds, equities in stock or time deposits etc. The income of a business also needs to be managed carefully, securing the future of your business or company for that matter.
Many authors like Kiyosaki, smartly teach that business income can be made to BUY ASSETS like real estate or precious metals. But this needs to be done with consultation with good advisers. Financial planning for your company's income will be a hedge against uncertain economic times ahead. Be it a carenderia, a siomai stand or a small lending, plan the income portfolio of business instead of taking fat salaries that end up in the belly of unproductive consumerism. Click Here to Read More...
The seminar venue was quite filled and the speaker started round 1 with a good mixture of jokes, power point slides and a large dose of actual experience. Essentially he was teaching the audience to be personally responsible for their income and take an active part in managing both income and expenses and not leave retirement to chance.
You might be wondering what this has to do with business. It has everything to do with business. In the same way that we personally manage our income and expenses and invest our savings in several vehicles, be it bonds, equities in stock or time deposits etc. The income of a business also needs to be managed carefully, securing the future of your business or company for that matter.
Many authors like Kiyosaki, smartly teach that business income can be made to BUY ASSETS like real estate or precious metals. But this needs to be done with consultation with good advisers. Financial planning for your company's income will be a hedge against uncertain economic times ahead. Be it a carenderia, a siomai stand or a small lending, plan the income portfolio of business instead of taking fat salaries that end up in the belly of unproductive consumerism. Click Here to Read More...
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