Home Wealth Project
Extensive Research On How To Build Wealth From The Comfort Of Your Own Home.
Extensive Research On How To Build Wealth From The Comfort Of Your Own Home.
Jan 7th
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Dec 19th
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Jan 21st
The perception of risk is skewed when bad outcomes are vivid, personal and immediate.
Given the choice between working on the important and the urgent, the urgent almost always wins.
Given the choice between avoiding the rare but grisly outcome or doing the hard work to avoid the equally nasty, more subtle but more common outcome, we usually go for the grisly.
We do this sort of miscalculation all the time at work. We avoid the hard work on the long-term project in order to panic and rush about to avoid the possible vivid, immediate and personal risk on the short-term project, even if it’s far less important.
(Think about this the next time you’re in the security line at the airport).
This is one reason why the media is so complicit in many of the issues of the day… they take concepts that were previously abstract and relentlessly make them vivid, personal and immediate. It amplifies the risks around us and easily sells us on a cycle of dissatisfaction.
If you want to create action on the important, figure out how to make it vivid, personal and immediate.
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View full post on Seth’s Blog
Dec 9th
It’s a risky proposition to make the move from corporate America to small business ownership. Not everyone has the courage to actually do it. Lots of people look into becoming franchise owners as a way to mitigate their risk. As you’ll soon see, there’s plenty of risk to go around.
Lots of people who are interested in exploring opportunities in franchise ownership do so because they think that it’s a lot less risky to invest in a franchise business as opposed to an independent business.
In some cases, it may be a lot less risky to become the owner of a franchise business, but lots of things have to really line up correctly for that to be the case. Things like:
When I started in my current role in franchising (2001), rather aggressive franchise success rates were being thrown around. They were so aggressive that our industry’s main association had to jump in to temper things a bit, in May 2005.
Matthew Shay (who at that time was the International Franchise Association’s President) wrote this letter to the International Franchise Association’s membership:
Dear Friends:
It has come to our attention that some IFA-member companies may be providing information about franchising that is long out of date and no longer presents an accurate picture of the sector.
Of particular concern is information claiming that the success rate of franchised establishments is much greater than that of independent small businesses.
Many years ago, the U.S. Department of Commerce conducted studies about franchising which presented such statistics. That information is no longer valid. The agency stopped conducting such studies in 1987.
We strongly urge you to remove any information from your Web site and published materials that make such a claim. The use of such data, in the absence of current research, could mislead prospective franchisees who are attempting to conduct responsible investigations.
If you’d like to learn more about franchise failure rates, read this post at OPEN Forum By American Express.
As I stated earlier, I feel that starting a franchise business as opposed to starting an independent business can be a lower-risk proposition if everything really lines up. But I was only talking about your risk. What about the franchisor’s risk?
Believe it or not, it’s a pretty risky proposition to invent and then set up a brand new franchise concept. In addition to the financial investment needed to do it right (well over $100,000), there’s an operations manual to write (and perfect), the right technology (software and computer systems) to be purchased and customized, all the legal requirements to be met, and the new concept has to be marketed. Last, but not least, it then has to be sold, one franchise at a time.
Now, I don’t expect you to feel sorry for franchisors; they can create some pretty terrific wealth for themselves. What I am trying to tell you is that franchisors are taking a major risk every time they award someone a franchise.
Think about it: The potential royalty stream from one franchisee over the life of the franchise contract (typically 10 years) can be $200,000 (on the low end) to over $1 million. (Franchisors don’t really make a lot of profit on the upfront franchise fees; they make it from the ongoing royalties.)
For instance, what if a franchisor awards a franchise to someone who turns out to be a horrible franchisee? A horrible franchisee may be one that fights the franchise system on every turn, pays franchise royalty payments late (if at all) and just doesn’t represent the brand very well.
As a franchisor, you may want this franchisee out of your system. To terminate this franchisee’s agreement, you’ll probably have to spend a bundle on legal costs, plus you’ll be taking time away from more important tasks, like finding new franchise owners and taking care of your current ones. That can’t be very enjoyable.
As you can see, there’s another side of risk in the franchise equation. I’ll bet you didn’t know that.
Can you see how important it is for there to be a great match between the would-be franchise owner and the franchisor?
Can you see how a great match can reduce risk, on both sides?
The Other Side of Risk in Franchising
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View full post on Small Business News, Tips, Advice – Small Business Trends
Sep 12th
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Amazon.com: Competitive Intelligence Advantage: How to Minimize Risk, Avoid Surprises, and Grow Your Business in a Changing World… |
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Aug 27th
| The rupee edged slightly lower on Friday weighed by late losses in… in global markets ahead of a key speech by Federal Reserve chairman Ben Bernanke. |
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Aug 12th
People seem to be in one of two categories:
You can be in either category, the world needs and rewards both. But pick a brand and a job and a posture that matches your category, or you’ll fail, and be miserable until you do.
Hint: there is no category of: “does risky exploration, never fails.”
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View full post on Seth’s Blog
Jul 17th
Business at a certain level is about bringing clarity to complexity. You hear about organizations struggling to provide clarity all the time. Ford, for example, found an executive, Alan Mullaly, who could best manage its manufacturing and development complexity. Who better to run a company that produce vehicles made of thousands of parts than one who had managed Boeing, a company that built planes containing millions of parts?
A similar search is the foundation for The Checklist Manifesto: How to Get Things Right by Atul Gawande. Gawande, a surgeon and associate professor at Harvard Medical School, sought the best method to minimize physician care error. I had heard Gawande’s interview on Harvard Business Review podcast in which he explained his journey and associated study, and I wanted to read more.
With More Understanding Comes Less Understanding
Gawande’s book is about the need to better manage required steps in patient safety in a surgery setting. The end result was a search for the best checklist that could cover all the bases. The search took the author to various locations and even various industries. With an casual style, The Checklist Manifesto brings the reader to a doctor’s level. But like many true innovators, Gawande incorporates other views to explain perspective from within his profession. The result for the reader is a well-written book that conveys the challenges without using excessive jargon or watering down information.
For example, he explains how people fail due to ignorance, “because science has given partial understanding of the world and how it works,” and ineptitude (we know, but fail to apply the knowledge). Gawande uses the example of our knowledge about heart attacks:
“Even as recently as 1950 we had little idea on how to prevent or treat them….Today, by contrast we have at least a dozen effective ways to reduce your likelihood of having a heart attack…”
Gawande next explains the challenge in getting the right knowledge applied:
“…just making the right treatment choice among the many options for a heart attack patient can be difficult, even for expert clinicians.”
Then he mentions recent medical studies on caring for stroke victims to reinforce the challenge physicians face:
“Studies have found that at least 30 percent of the patients with stroke receive incomplete or inappropriate care from their doctors as do 45 percent of patients with asthma and 60 percent of patients with pneumonia. Getting the steps right is proving brutally hard, even if you know them.”
The ability to prevent the errors that can result from the complexity of choice is at the heart of his journey - “Knowledge has both saved us and burdened us.”
The middle chapters showcase Gawande’s journey in developing a checklist solution, starting with his work with the World Health Organization. Gawande looked at professions that involved multiple tasks, skill requirements and dire consequences if proper steps are not followed. His journey offers great “a-ha” reminders of how the world works, and is simply fun to follow.
The journey leads Gawande to Daniel Goodman, a Boeing aviation checklist expert who develops lists to avert human error during flight. Goodman explains the idea behind good checklists:
“Good checklists are precise. They are efficient, to the point, and easy to use in the most difficult situations. They do not try to spell everything – A checklist cannot fly a plane. Instead they provide reminders of only the most critical and important steps – The ones that even highly skilled professionals could miss.”
The brief explanation of a READ-DO and a DO-CONFIRM checklist are enlightening and excellent.
Why This Manifesto Works So Well
The Checklist Manifesto is a solid book for a few reasons:
Who Will Enjoy The Checklist Manifesto?
If you are a business owner addressing complexity, this book will win you over. There are no charts or research notes, but the manifesto for better upfront decision-making is very clear thanks to the story that this book weaves.
With The Checklist Manifesto, you and your team will be inspired to make a checklist and, like Larry The Cable Guy says, “Git ‘er done!”
Manage Risk and Improve Your Business With “The Checklist Manifesto”
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View full post on Small Business Trends
Jun 8th
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Companies that allow employees to use social networks face a range of risks, including malware, lack of control, and brand hijacking, according to a… |
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View full post on Home Wealth Project Riot!