- WEALTHY: An unpopular investment that could boost a sagging portfolio (Andrew Gordon)
- HEALTHY: Another reason (besides tight-fitting pants) to get rid of belly fat (James B. LaValle)
- WISE: Andrew Carnegie on teamwork
ALSO IN THIS ISSUE:
- Giants from all the major industries share this business strategy (Michael Masterson)
- Mud-wrestling ladies and a key to making sales (Suzanne Richardson)
- It’s Fun to Know… about the text-messaging debate
- Add “apercu” to your vocabulary
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Preferred Shares Aren’t Just for the Pros
One of the more unpopular asset classes right now is a stock/bond hybrid called preferred shares. While they’re called shares, they have more in common with bonds. Preferred shares have a par value, coupon, and maturity date, just like bonds. And the nice thing about them is that common shareholders don’t get a penny in dividends or distributions until preferred shareholders are paid off.
They’re unpopular at the moment because Wall Street is worried about bankruptcies. Investors are driving down the price and driving up the yields of these preferred stocks to justify the perceived additional risk. So you can get amazing yields on preferred stocks – 6 percent and above. Much better than just half a year ago.
Most go for $25 per share, but now you can buy them at a discount. Like common shares, they’re traded on the major exchanges and their price goes up or down depending on demand. Institutions buy most of the preferred shares, but there’s nothing to prevent individuals from owning them too. They’re currently the best bargain on Wall Street. And they provide steady income.
But a word of caution… If you buy preferred shares, please stay away from the crazy financial sector. No investment is safe in that sector right now.
[Ed. Note: The economy seems dicey, but don't worry. You can make money just by making smart decisions about where and how to invest. Find a company with good fundamentals, and you'll be sleeping soundly for years. Investment expert Andrew Gordon can help you pick the winners. Learn how here.]
“Teamwork is the fuel that allows common people to attain uncommon results.”
Andrew Carnegie
Why Two-Headed Businesses Grow Faster
The popular image of the successful entrepreneur is that of a hardworking risk taker who acts on his own.
The reality is different. Successful entrepreneurs work hard, but they are not risk takers and they seldom act alone.
If you want to triple or perhaps even quadruple your chances of success, partner up with someone who will work with you toward your goal.
Many of the most successful businesspeople of the Industrial Revolution had partners. John D. Rockefeller’s oil empire, for example, was built by his partner, Henry Flagler. And the improved steam engine responsible for fueling the Revolution was designed and manufactured by the team of James Watt and Matthew Boulton.
The same is true of the computer revolution. Hewlett-Packard, the first IT company to report revenues over $100 billion, was co-founded in 1939 by two Stanford graduates. Larry Page and Sergey Brin started Google together. David Filo and Jerry Yang co-founded Yahoo. Bill Gates co-founded Microsoft with Paul Allen… and Apple Computer was co-founded by Steve Wozniak and Steve Jobs.
Warren Buffett, the world’s most successful investor, attributes a great deal of his success to his partner – who makes most of the investment decisions – Charlie Munger.
Moving down a few steps on the success ladder, many multimillionaire business owners I know made their fortunes by working with partners. Of the 12 top investment advisory publishers that came to the industry’s most recent symposium, nine of them were headed by partners.
In my own career, partnerships have been the way to go. Except for one case, every significant business success I’ve enjoyed has been the result of a partnership.
Why Partnerships Work
Partnerships work because two heads are better than one. My head, for example, is good at spotting opportunities and marketing, but not so good at mulling over key decisions or paying attention to details. My partners tend to make up for my deficiencies. And I, theirs.
That’s how partnerships are supposed to work: a division of labor, starting at the top. After all, no one can claim to be a perfect businessperson. We all have shortcomings and foibles. Without a partner to spur you on or rein you in, you would miss valuable opportunities or make costly mistakes.
Besides allowing for an efficient division of labor, partnering provides you with someone to vent to, someone to confide in, and someone with whom you can enjoy your success.
Looking at some of the partnerships cited above, it’s easy to see how they divvied up the responsibilities:
James Watt was an inspired inventor, and he improved upon the steam engine design, while Matthew Boulton was a shrewd businessman. Watt couldn’t handle the business end – he had tried and failed – and Boulton needed Watt’s invention.
In the famous partnership of Flagler and Rockefeller, Rockefeller had the name and the venture… but he needed Flagler’s capital and shrewd business sense. It was Henry Flagler’s idea to offer rebates, which gave Standard Oil an advantage over all competing oil refineries.
Looking at my own situations, you would see that in some cases I am providing capital and marketing advice while my partner is running the business. In other cases, my partner and I oversee business operations that are run by other people entirely.
Just to give you a quick idea:
• With “Quincy S.,” I have an interest in a commercial real estate development company. He tends to be the worrywart and cost-cutter. I’m the one who makes the properties attractive and takes care of renting them out.
• With “Carl T.,” I have an interest in an advertising agency. When the business was young, I provided capital and mentoring. Now he runs the business and I do nothing but have lunch with him once a month and collect a substantial check.
• With “Brandon T.,” I have an interest in a health publishing company. I provide marketing and editorial advice. He runs the business.
• With “Audrey M.,” “Eddie N.,” and “Owen G.,” I have a career-training company. I provide advice on strategic planning. Eddie keeps his eyes on the bottom line. Owen focuses on the marketing. And Audrey runs it.
• With “Cal C.,” I have an interest in a large publishing business. He focuses on the quality of the published ideas. I focus on the quality of the marketing efforts.
• With “Tina T.,” I have an interest in a commercial art dealership. I buy the art. She sells it.
I couldn’t possibly be involved in all these businesses if I didn’t have partners. One business is more than enough for one person. But with partnerships, you can have an interest in many more than that. I’m not exactly sure why. It has something to do with how the partnership decisions – early on – lead to lots of other decisions that make the business almost automatic.
There is no question in my mind that partnership relationships are good for business. But it’s also clear to me that some people can’t be good partners. A good partner must be…
• Fair-minded: You must want the partnership to be good for your partner. You can’t be the sort of person who believes that “you-win-I-win-more” is better than “you-win-I-win.” You must have your partner’s best interests at heart.
• Flexible: People who argue about the details don’t make good partners. You can’t go tit for tat with your partner. You must believe that, in the long run, the two of you will be able to work things out.
• Loyal: Good partners don’t betray each other in any way. They don’t steal from each other. They don’t badmouth each other. They don’t make side deals with other people who might undermine the partnership.
Think about your current business goals. Pick one that you are not making great progress toward. Now ask yourself, “Who is helping me achieve that goal?”
If the answer is “nobody,” you have a great opportunity open to you. By hooking up with the right partner, you’ll have a chance to finally get your idea into action, do the sometimes difficult things that need to be done, make the progress that your goal requires, and one day – maybe sooner than you might believe – be able to sit back and say, “Hey, I did it!”
So… who are your partners? Who are your coaches? Who is urging you to get up earlier, work harder, and think smarter? Who is giving you good ideas? Who is praising your successes and warning you about pitfalls?
Don’t be afraid of partnerships. Pick a partner you trust and make sure you agree on how any problems you run into should be fairly worked out. Ask a few “What if…?” questions before you sign the contract. Then get started and enjoy working with each other.
[Ed. Note: Having a partner can triple or even quadruple your chances of success. If you don't have one yet, now's the time to start looking. You can begin your search at ETR's 2008 Info Marketing Bootcamp. Not only will our 12 expert presenters offer you specific strategies you can use to make $1.2 million in 2009... you'll also meet more than 200 men and women who could be potential partners for your business ventures. Learn all about Bootcamp - and how you can sign up - right here.]
The Easy Way to Internet Profits for Lazy Entrepreneurs
If you can push a button, you can make money online. Yes, there’s more to it than that, but not too much. Just 3 simple steps. This new online business opportunity is for truly lazy entrepreneurs who still want to make a very nice online income.
I’m still shaking my head at how shockingly simple and easy this is. And this business has been purposely kept “low-key” to keep others from discovering and using it. Not anymore, because one of the Internet’s elite has just spilled the beans…
Click here to get all the inside details…
Copywriting 101: Know Who Your Audience Is!
When I was younger, I loved watching Who’s the Boss. One episode still stands out for me. Though the details may have become muddled with time, here’s the gist of it: Housekeeper Tony takes a class on advertising from ad exec Angela. His assignment? To come up with a commercial selling laundry detergent.
The end product involves Amazonian women wrestling in mud. All the guys in Tony’s class love it. But Angela gives it a failing grade. Why? Because Tony had forgotten who his target audience was: women. And women would be either uninterested in Tony’s commercial… or, worse, offended by it.
Seems like a no-brainer, right? You’ve got to know who your target audience is before you write a word of sales copy.
Of course, big-name brand advertisers forget this rule all the time. But that doesn’t mean it’s okay – or that you can afford to ignore it.
When you sit down to write a sales letter or commercial, always begin with your prospective customer. The best idea… the best execution… and all the money in the world won’t matter if your ad doesn’t connect with your target audience.
[Ed. Note: Even so-called "experts" in advertising forget the rules. But you can get a refresher course from two master copywriters at ETR's 2008 Information Marketing Bootcamp. John Forde and Charlie Byrne will be revealing some of their juiciest secrets to writing money-making sales letters. Reserve your spot - and learn how you can make between $100,000 and $1.2 million from our panel of expert speakers - right here.]
The Belly-Blasting Power of Antioxidants
You have probably heard that obesity raises your risk for heart disease and diabetes, as well as other diseases. And recent studies have found that fat around the waist or belly is particularly harmful.
This “visceral” fat produces inflammatory compounds such as TNF-alpha and Interleukin-6 (IL-6), which can damage insulin receptors and lead to insulin resistance. And insulin resistance is at the root of most chronic diseases, including diabetes, high blood pressure, and heart disease.
Fortunately, there are some simple ways to get rid of that “spare tire” around your middle.
A low-carb diet high in vegetables, healthy fats, and quality proteins has been proven to decrease belly fat and the resulting inflammation. Eating this way drastically limits your intake of foods that elevate insulin (sugary foods and breads, for example).
Recent research indicates that the antioxidants in vegetables, fruits, and other foods are another important component of this diet.
University of New Mexico scientists found that two potent antioxidants – curcumin and resveratrol, respectively found in the spice turmeric and in red wine, - inhibited the cell compound (NF Kappa B) that promotes the production of TNF-alpha and IL-6. They concluded that curcumin and resveratrol can reduce inflammatory signaling that comes from being overweight. Additionally, these antioxidants may help repair damage to cells, keep insulin receptors working, and help you avoid insulin-resistance-induced disease.
Eating a wide variety of vegetables, fruit in moderation, and cooking with various herbs and spices as part of a low-carb diet is a sure way to enhance your health with anti-inflammatory antioxidants. Oh, and go ahead and enjoy a glass of red wine while you’re preparing that healthy dinner!
[Ed. Note: It truly is possible to improve your health just by making a few simple changes to your diet and lifestyle. James B. LaValle, RPh, ND, CCN - founder of the LaValle Metabolic Institute and a nationally recognized expert on natural therapies - can give you easy-to-understand directions for living the healthy life you've always wanted. Learn how to feel better and live longer right here.]
It’s Fun to Know: Which End of the Text-Messaging Debate Are You on?
You may think that text messaging, which has its own grammar and spelling rules, is keeping young people from learning good language skills – and here at ETR, we would agree with you. But not according to British linguist David Crystal. Among other hard-to-believe claims in his book Txting: the Gr8 Db8, texting makes them better, not worse, communicators. You have to have a good understanding of language in order to manipulate it, he says. Tell that to the teachers trying to grade term papers filled with “creative” spelling.
(Source: Techdirt.com)
== Highly Recommended ==
Goals Mentor Discovers New “Disease”
What’s been keeping you from accomplishing your goals all these years?
Thousands – perhaps millions – of people are afflicted with a “disease” that’s preventing them from finding the success and happiness they deserve.
You could be one of those people.
Find out whether you’re one of the “infected” – and discover the cure… right here.
Word to the Wise: Apercu
“Apercu” (a-pur-SOO) – from the French for “perceive” – is an immediate judgment, understanding, or insight.
Example (as used by Virginia Heffernan in The New York Times): “[Kanye West's] UniverseCity blog is chocked with impulsive apercus, including a furious explanation of his (late and booed) appearance at the Bonnaroo music festival… . ‘This is the most offended I’ve ever been,’ he wrote, ‘this is the maddest I will ever be. I’m typing so’ – he used an intensifier – ‘hard I might break my’ – intensifier again – ‘Mac book Air!!!!!!!!’”
[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]
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Hi Michael,
I enjoyed your article, “Why Two-Headed Businesses Grow Faster,” and agree with you regarding this premise. I have some questions and a comment in regard to it.
Are you referring more to a strategic alliance, rather than a formal “partnership” in these cases? What legal structure do you recommend?
Using the word “partner” leads one to believe that “partnerships” are the structure of the businesses, but I believe that a man of your experience would never open himself open to the possible liabilities and tax ramifications of a true “partnership.”
My comment would be to think of a partnership or strategic alliance like a marriage. Can you see yourself “married” to this person within your business relationship? What provisions must be put in place to protect all the parties involved if the “marriage” fails?
From a personal experience, I highly recommend putting a buy/sell agreement (backed by life insurance on the principals if possible), into place when the entity is initially structured. Had I of known that many years ago with my first business, I would not have had to pay an exorbitant amount of money in attorneys fees and buy out costs to the greedy widow when my partner suddenly died. Expensive lesson learned and tremendous experience gained.
Sincerely,
Lisa C. Decker, CDFA
http://www.DivorceMoneyMatters.com
Hello, Michael,
I agree with you, I feel I need a partner. I have been looking for him or her more than a year, but without any succsess. People, whom I know, are not interested in any business. Do you think it is reasonable to look for a partner through the Internet?
Thanks in advance for your answer
Gala
Hello Michael,
I’m having the same problem as Gala – where are we to find these ‘partners’. I’m a member of quite a few forums, but there appears to be more ‘talk’ going on than anyone really putting in the work (unless you want to be spammed forever).
Can you please read this before you trash it?
Look, I’m up front with this,and I don’t like asking. I need help in the most, fastest,easy way as possible. You don’t want to help people you don’t know. I’m the same way. I just don’t have a good way to meet you,and ask for your help. SO here it is. I’m 61,and live on gov.hand outs. I get $800. per month. Not enough to pay all my bills each month. I’m so called disabled. In the last 3 years I used all my savings, and hurt my credit.My savings went to medical bills,and my credit went out the window. I don’t have a credit card any more. I never thought I would be in this shape. My car is no good. No way to pay for repairs. OK ! Enough of all that. If you can’t help me, well that is that. I want to ask if you will help me? All I need is away to make money on line. I just read your peace on 3 simple steps. That read makes me believe,there is away to change the way I’m living. CAN you help me get the Magic Button. Or is there any other way To help me? The three steps could give me away to make money for a longer time. I’m sorry, I hate to ask for your help. It’s just to important. Let me know one way or the other. I’m not very good with the net. I just got this computer given to me . Never thought I could use one. Still don’t know much. If you can find it in your heart to help me, I promise I’ll pay you back,even more if needed. I will repay you anything you ask. I might be so-called disabled. But I’m not dead yet! I have way to much time on my hands,with nothing to do. I worked day in and day out before I got sick. I worked and owned a body shop for over 20 years. Loved it !! But now I find myself giving up. I really don’t want to. I jest hate the way I must live. Anyway, I thank you for your time. Hope I can find a magic button.
William White, whiteman816@yahoo.com, you can call me if you like- 816-987-0173 10/19/08