January 10, 2008

The $2,500 T-Bone... The Essentials of Bootstrapping: Part 2...
Leave Battles to the Giants... Getting a Second Opinion Can
Mean the World... and More.

** The $2,500 T-Bone
By Adrian Newman, co-founder of the WLI

A co-worker of mine just got back from a luxurious vacation with her husband in St. Lucia. Everything was first-class, from the gorgeous private suite to the private butler service they enjoyed.

In fact, they were having so much fun, that they decided to extend their vacation an extra couple of days. That's when the problem happened.

The story goes that, on the last night of the vacation, they reserved to have a private romantic dinner on the beach. They got to select their menu and chose to have t-bone steaks for dinner. Now, apparently it's a little difficult to get steak in St. Lucia, so this order had to be arranged well in advance. Suffice to say, they were ensured by the resort staff that their romantic meal would in fact include two succulent t-bone steaks.

The big night arrived and they sat down at their table on the beach, enjoying drinks, appetizers and of course the beautiful scenery and tropical weather. It was perfect. Then the main course arrived. Two perfectly cooked sirloin steaks. Not t-bone. Sirloin.

They were then informed that, unfortunately, the last two t-bone steaks were served to another couple who had the previous seating.

Infuriated, management was requested. After a moment of voicing displeasure and after seeing the resort manager the next morning, the resort apologized and fixed the situation.

The compensation? Two free nights on their next stay at any of the resorts in many locations worldwide. The value: about $2,500.

Not bad for the wrong cut of meat, wouldn't you say? Now, at first I thought, "Why complain, Sirloin, t-bone, New York, what's the difference?"

But that's exactly what they wanted... exactly what they ordered... and exactly what they were promised. They were within their rights to complain and it worked out favorably for them.

And really, why should they settle? Besides, I don't know anyone else who received $2,500 for a botched steak order!

** The Essentials of Bootstrapping: Part 2
By Doug D'Anna, the "Hundred-Million-Dollar Man"

I'm going to continue with my series on the essentials of bootstrapping a business today by taking a look at a few more ways that you can cut costs and make your business work without any outside assistance.

Let's get started by discussing how you can get equipment for your business on the cheap. Think about the equipment that is essential to your business and find out if you can lease any of it, as opposed to buying items. Leasing generally means you'll be making smaller payments and, if eventually you make more money, you can buy the item.

Make use of what you have. You will more than likely need a computer. Along with a personal computer (PC), you can purchase a printer and use it to create your own business cards and print them off on your own. You can do flyers as well. The way they're making printers these days, you won't even be skimping on quality if you choose a low-cost model.

Having a do-it-yourself mentality is a concept that every bootstrapper needs to become very familiar with. The more you can do on your own, the less money you're going to pay out to other people to do things for you. It's that simple.

If you have skills, then use them. If you have a flare for design, then put together your own web sites and business stationary. PCs (which are a necessity these days) come with all the bells and whistles, so you can put together all your business' professional materials on your own, which can save you a lot of money.

Having a computer also means that you have access to bookkeeping software and other programs of this nature, which can also save you money in terms of not paying a professional to do the work for you. Learn to do your own taxes, keep your own books, and any other task of this nature.

Utilize the skills and experience that you have acquired over time and do as much for your business as you can on your own.

You can even create a business around the things that you can do independently. You can save a lot of money if you can do the majority of the work on your own.

The Internet is a great source of information, so use it well. Use it to research such topics as starting your own web site, designing a business card, or creating an effective newspaper advertisement. You can learn a lot if you are dedicated enough to take the time to research the information on your own.

** Leave Battles to the Giants
By John Hurd, Chief Wealth Researcher

Some big businesses are making drastic moves to take customers away from their competition. Sure, this is nothing new in business at all, but there is something you can learn from these tactics.

In the latest "battle of giants," mega-corporation McDonald's is going head to head against Starbucks in a showdown over gourmet coffee.

It's no secret that Starbucks has been ruling the coffee game for some time now. The company pioneered mass-market specialty coffee and it's hard to take a few steps along any major street without running into one of their stores.

The same goes for McDonald's, only they're mostly known for burgers. But, that could soon change.

McDonald's is adding coffee bars to locations around the U.S. to see if it can compete against Starbucks. With billions of dollars at its disposal and teams of researchers, McDonald's may be able to pose a threat.

You might be thinking, "So what?" Well, competition is something you must always consider. However, going head to head in a major face off is something best left to the big guys.

For example, if you're starting a small business, you're bound to have some sort of competition. However, challenging your competition to a price war isn't going to get you anywhere. Battles like this are a race to the bottom.

Instead, set your sights on innovating or coming up with something completely new. It is the innovators that have the most success potential. Sure, the followers may capture a little glory, but with someone else hot on their tails, they simply won't last.

Whether you're starting a business or simply tackling new ways to bring in more income, take a look at what competition you may face. Rather than taking them on head o,n come up with a plan that sets you apart from the rest.

Let me start by saying that when it comes to cars, I'm no Mr. Goodwrench. In fact, I could tell you about as much about how those four wheels get me from point A to point B as I could about quantum physics. What I'm trying to say is that when it comes to automotive mechanics, I leave it up to the experts. However, sometimes I wish I knew more.

Case in point:

A couple of weeks ago a friend of mine pointed out a problem he saw with my vehicle. He said it wasn't anything major, and if I took it into the shop, it would cost me anywhere from $60 to $80 to fix. Taking his word for it, I brought it to the dealership and let them take a look at it. Later that afternoon, my phone rang and it was the mechanic who had examined my car on the other end. What he said absolutely shocked me.

"That will be $874, Mr. Newman. Should I get started?"

I sat there in silence; absolutely shocked at the number I had just heard. Certainly if there were over $800 worth of work needed on my vehicle, I would've known about it long before then. After all, I'm sure even an individual who isn't exactly what you might call "car savvy" would notice an $800 problem with a vehicle.

"No," I said. "Why don't you hold off on that? I'll be into pick it up before the day is through."

Confident that this mechanic was trying to take me for a ride, I decided I'd have to get a second opinion. A friend of mine has a cousin who is a mechanic, and he suggested I have him take a look at my car. Agreeing, I dropped my car off there the following weekend to have it evaluated. When my friend's cousin called me, he said, "Michael, I searched high and low and I can't see anything wrong with your car that needs immediate attention. We'll take another look when spring rolls around"

As you can imagine, I was quite relieved.

When you're conducting business or making a purchase, especially when dealing with things you aren't an expert in, it's important to use common sense to ensure you don't get ripped off. Don't rely on one person's word or "expertise," because they might just be out looking for a quick buck.