January 10, 2007

Find a Way to Get Along with Each and Every Customer... Five Warning Signs of a Financial Crisis, Part 2... The Fundamentals of Being a Risk Taker... Get What You Need with "Team Buying"... and More.

** Five Warning Signs of a Financial Crisis, Part 2
By Adrian Newman, Founder of e-Wealth Daily

On Monday, I told you about the first three of five warning signs that you may be on the verge of a financial crisis. Today, I reveal warning signs four and five, and how to solve these potential disasters.

Warning Sign #4: You Have No Resources in Case of an Emergency

How about this scenario: You're driving home from work and all of a sudden, your car stalls and won't restart. You get a tow to a mechanic, who looks at your car and estimates it will cost $500 to fix the problem. You break into a cold sweat because you have no money to pay for it. Now, you're riding the bus to work, or worse, you have to quit your job to find another one closer to your home. This happens all the time! The lesson:
You have to have some money stashed away in case of an emergency!

Solution: While paying off your credit card is the most important money-saving activity you should be doing, you should also be paying yourself at the same time. Take $10 a week off your paycheck and save it in case of an emergency. If you and your spouse each do this -- and you're lucky and don't have an emergency over the course of a year -- then you'll have over $1,000 saved in your emergency fund. Keep it topped up to between $1,000 and $1,500. This will be a good cushion for any unexpected medical expense or car or house repair. And buying a new stereo because it sounds better than your old one does not constitute an emergency!

Warning Sign #5: You are Constantly Worrying About Money

It's true that money can't buy happiness. However, not having money can cause stress! Do you constantly fret over money?

Do you toss and turn at night, wondering how you're going to find enough money to make your next rent or house payment? Do you fear it's a creditor calling you every time the phone rings? If this describes you, then for the sake of your sanity and health, you have to fix your money problem!

Solution: Call your creditors and tell them your situation. You would be surprised at how many companies will work with you to help you pay your bills. Plus, it will ease the tension when the phone rings. However, the best solution is to start reducing your debt right now! The time is right now to start making money for yourself!

If you want to find success and create wealth for yourself, you have to be able to adapt to different situations. You also have to learn to adapt to different types of people as well. Your ability to communicate effectively is essential when dealing with customers and, frankly, anyone you meet.

Every customer, every friend or acquaintance you will ever meet is going to be different. You must learn to adjust your responses to each individual accordingly in order to fulfill their needs and to attract them to you. Here are some personality types you should recognize and how to handle each with both charisma and ease:

Demanding/Assertive: These people don't deal with social graces. They are short on patience, often temperamental, and not easy to assuage. In order to win them over, raise your level of assertiveness to just one level below theirs, in order to give them the edge. Be direct in your statements and remain businesslike. When they soften up, by all means, converse, but don't initiate small talk with them unless they are willing to reciprocate. This type of person is only impressed by your aptitude and ability. Use your experience to resolve their concerns and try to use conversation to build trust. Don't be confrontational, but do be direct and courteous.

Angry: Whatever you do, don't fall into the trap of retaliation.
Listen to the person and let him/her blow off steam. Tell them that you understand their concerns. Empathize. Relate. Even tell them that you are sorry for what they are experiencing, even if it has nothing to do with you. Propose an action plan to help them get back on their feet. Ask them how you can help them correct the problem. These people will be impressed with your selflessness and your ability to deliver on what you promise. They will never forget that you helped them in their time of need and that you overlooked their negative reaction.
Don't get caught up in all the emotion. Be a bystander and speak objectively about a solution.

Passive: Believe it or not, this personality type isn't the easiest to deal with. Why? Because they are the ones you can never seem to get any form of commitment from. They find excuses for not acting and they need constant prodding and poking to get them to move. They may not complain, but they don't support your efforts or offer any kind of activity to help you, either. You can deal with this type of person by giving him/her specific questions or directives. This will help to define their needs and allow you to offer them some type of support. They need prompting. They need direction. They need to feed off your emotion in order to open up. Be sincere with them, but don't take passive responses. Tell them what your objectives are and why you need specifics from them.

Talkative: We've all run across this personality type. People who seem to chatter incessantly but never seem to get to the heart of the matter. They seem to have no particular agenda. They take up your time. They are often sociable, but ineffective. Well, you are halfway there with these people because they will help you build a rapport; it's up to you to find the issue and the solution. Here's how to deal with them: Ask only closed questions — ones that require a direct response. Do not provide long responses in return; it just gives them another reason to get talking. Control the conversation by using short pauses in between your sentences so they cannot jump in, and learn how to politely interrupt them when they are speaking. If you can be courteous but direct, you will win the heart of this type of individual.

**The Fundamentals of Being a Risk Taker
By Michael Newman, the "Money Finder"

If you are considering starting your own business, then you have to be comfortable with taking risks first. I don't care how solid your business plan is or how revolutionary your product is going to be — starting a business is risky and the sooner you accept this, the better off you will be.

If you aren't comfortable with taking risks, then you might not be suited to start up your own business. Risks are a normal part of entrepreneurship, plain and simple. You are taking a risk by leaving your cushy job to venture out on your own. With a job, you have a steady paycheck, benefits, a retirement plan, and so on — with a start-up business, you will have to rely entirely on yourself to obtain these things.

By going out on your own, you risk not being able to get financing, you risk not being able to compete, and most of all, you risk losing your dream. However, though I might be making it sound grim, the fact is that starting your own business, although risky, is also a great way to make money and gain personal freedom.

The key is to prepare yourself for the risks that you are going to have to take. You need to find out if you are cut out for the life of an entrepreneur before you jump in headfirst into a new business.

Think about the following questions when looking at every aspect of your life, from eating dinner to playing games. If you answer them honestly, you might find out if you are a risk taker or not.

Questions like these will give you a good idea of whether or not you are comfortable with risks. Often — and I am guilty of this, too — until you ask yourself certain questions, you really can't know what type of person you are.

Some people might consider themselves to be risk takers, but they have been at the same job for 30 years, lived in the same town their entire lives, and attended the same college that their best friends did.

Playing the lottery once a week does not mean that you are suited for entrepreneurship.

If you find that you're not a risk taker, but you have a great business idea, then start to warm up slowly to the idea of starting your own venture. So, take small risks and see how they make you feel.

Try a type of food that you would have never tried before or pick up a book that you would have never read before. If you are feeling stagnant in your career, then take a few courses that might prepare you for new job options.

These are all small steps that you can take, which will get you used to taking big leaps.

The best advice I can give is to tell you to calculate your risks as much as you can before taking them. When you are writing out a business plan include all the obstacles that you might encounter. Don't be afraid to put those things in your plan -- just remember to write out how you plan on tackling those types of obstacles if you encounter them.

If you have an idea of the potential risks you will inevitably Face, then you can reduce them through preparation and planning. Plan for not having tremendous sales in the first year and put money aside for your family in case every penny has to go back into the business.

Have a disaster plan in place just in case something happens that you cannot foresee or control. Also make sure that you have insurance in order to protect you and your business.

If you have a great business idea, you shouldn't let the fact that you are not a risk taker stand in your way. If it's not part of your nature to take risks, then start to change this about yourself by taking small steps. Nobody can force you to be a risk taker — this is one of those tasks that you have to handle on your own.

Good luck, you can do it!

** Get What You Need with "Team Buying"
By "Miracle" Max McCarri

I'm always looking for new ways to make money, and in my constant search I often come across some incredible ways that could help you better save the money you already have.

Let me share with you an exciting buying strategy I read about today. It's a strategy that you can use for the items you need and would like to save money for.

With expenses that seem to grow higher each day, getting the items you need for your home or office can become quite challenging. And when it comes to getting large items that can cost hundreds of dollars or more it's rare to find the kind of deals you need in order to keep enough spending money in your pocket to purchase them with.

That's why several shoppers in China have begun using a strategy known as "team buying."

Here's how it works:

You may already be familiar with stores that offer a discount on the purchase of multiple items. Offers such as "buy one get one free" are not uncommon and you've probably seen them on television and in local malls.

Stores may offer this kind of discount when you purchase more than one lower-cost item such as clothing and shoes. But when you need larger items that people generally don't buy more than one of, then it's rare to find a good deal.

By connecting using social networking web sites, shoppers make a plan to arrive at the same store simultaneously to request group discounts on their purchases.

Know that these groups have been successfully getting discounts on items such as cameras, televisions, microwaves, and even cars.

When faced with the potential of a large sale from numerous buyers, a store manager is more likely to accept offering the discount than passing up on making the sale.

Here's how it can work for you:

Before you make a large purchase, first talk with your friends and family, and find out who may also be ready to make a similar purchase. And then see if your combined purchases could be made at the same store.

Arrange to show up together -- the more people in your group, the better — and then discuss the possibility of a group discount with the salesperson or manager for all of the items your group intends to purchase.

If he/she does agree, be sure to remember the salesperson's name because any connection that helps you save money is a connection worth keeping.

Also, remember to make sure that your discount doesn't interfere with warrantee or maintenance programs. These are typically important features and shouldn't be compromised by group pricing.

You can never underestimate the power of establishing new connections, even if it means you save a few dollars — or a few hundred dollars. And if team buying works for you, then know that someone you helped save a little cash could open up moneymaking doors for you later on, which you never knew existed.