My Turn to Face Reality Part Three (aka "I Thought I Had A Business Education")

I know that I am not "religious" about my blogging but it would really be helpful for you, the reader, to locate and read the first two parts of this series My Turn to Face Reality.  I am working on being better at blogging though, so please stay tuned!

After reading The Entrepreneur Equation: Evaluating the Realities, Risks, and Rewards of Having Your Own Business by Carol Roth this spring, I had to question what I was doing based on the results I was getting.  I decided to work on my Entrepreneurial Resume.  Not because I'm going to post it at Monster.com and CareerBuilder.com or scour Craigslist.org jobs ads for the "Entrepreneur" job title.  In my opinion (and I could be wrong), that is something I create myself.  I wanted to identify IF I had indeed developed the skillset of a successful entrepreneur.  According to my bank account, I had not.  Over the years, I confess that I have been duped into thinking that if I sign up (giving them my money in the process) with the right mentor and work my ass off doing what they are doing that I would be successful in any business area.  This is not true.  I have tried that many times for many years.  I failed.

What DO I know about designing and starting a successful business?  I declared that I am a self-educated businessman.  The last formal school I graduated from was US Naval Nuclear Power School that used to be in Orlando, Florida.  They didn't teach me much about business. My next step was to identify all the business books that I have actually read and when.  I was not afforded the luxury of a formal business education and have not positoned myself to do so since my college-aged years.  I did come across a book called The 100 Best Business Books of All Time: What They Say, Why They Matter, and How They Can Help You by Jack Covert and Todd Sattersten.  With all the arrogance I could muster, I thought that SURELY I had read 100 business books.  I counted the books on my bookshelves.  I didn't come up with 100.  As I was outlining my "business education," I did read the majority of the Portable MBA series that was written in the early 1990's...and that was it.  Except for a few books that I have read since 2004, I really had no idea what I was doing.  It sucks to admit that, but knowing where square one is becomes the beginning of the new journey.

I decided to start my own list of 100 best business books of all time. I discovered The Personal MBA: Master the Art of Business by Josh Kaufman.  This is where my business education will begin...at least the "book" part.  Since then, I have discovered about 30 additional books on about 20 different business topics and even a few new business ideas that I might be able to develop into new businesses. 

It's amazing what you can find when you start looking...

Spinning Economic Numbers aka Sifting Through The BS

It's August 16, 2011 and one of my favorite economic indicators is being released today. The figure is called capacity utilization and is the percentage of industry that is being utilized vs. sitting idle waiting on workers, capital, orders, repair, etc. If you ask me, it is a great indicator of where the economy is truly headed. It is also one of the more esoteric indicators, so I have to look for it. I also have an uncanny nose for bullshit. Let me explain.

I was thankfully forced to read a book called 1984 by George Orwell in high school in 1983. This was an era before cell phones, personal computers, GPS or any of the other niceties that we enjoy/tolerate today. I thought it impossible that there would be an illuminated box that would sit on a table and spy on my every move, reporting to the central government nicknamed "Big Brother." The news agencies were all state run (in the book) and the people saw the news that the government wanted them to see, which usualy had something to do with the geo-political sentiments for that time. At least that is the way it was in the book, right? Team that up with my service in the US Atlantic Submarine Fleet in the late 80's and I have an almost immediate distrust for what people call "the news."

When I was a broker (by NASD license alone), I read the Investor's Business Daily and watched CNBC for economic news. These were two places that the news was almost all eceonomic. In many cases, if you didn't have a background in economics (or at least know a little something about it), the news from these sources would not make any sense to you.

I now rely on CNBC.com and in all fairness to one of my favorite channels, I haven't had the luxury of watching CNBC in a few years now. I would hope that their televised reporting has less to do with politics and more to do with economics.

As I am looking for my favorite indicator, here is what I see on the CNBC.com homepage and why it stands out to me:

"US Housing Starts Fall Less Than Expected in July"- In a perfect world, this is not-so-good economic news. Here they are trying to make it sound completely peachy. The news is not-so-good.

"Is Texas Job Boom Gov. Perry's Doing- Or Just Luck"- As a trader, broker, investor or someone else involved int he economic machinery of today, why do I care about this obvious political jab from a formerly conservative news source?

"Stocks Fall Amid Global Economic Fears"- What about domestic economic fears? We have high unemployment, no growth and stifling government intervention in small business. By the way, less than 1.4% growth in GDP for two straight quarters is, for all practical purposes, no growth. Also, it is an economic fact, not an opinion, that small business creates the jobs, not government. We don't have any fears here? Try again!

Today, I had to sift through some BS and eventually go to another site to get the number I wanted. The answer is 77.5%, up from 76.7%. This is better economic news, all things considered. It does indicate that a surge in industrial production took place in July. It is better news, but not the indication that we are heading for an optimal 3.5% growth in GDP anytime soon.

Watch the "news" with care. There's a LOT of bullshit out there.

A Slight Edge Moment

The first time I ever heard of The Slight Edge Theory, it was during my first listening of The Psychology of Selling by Brian Tracy about 11 years ago. As an example, it states that the winning racehorse wins approximately 10-100 times more money than an average racehorse, but wins the races sometimes only by a few inches. In The Psychology of Selling, Brian goes one step further and states that the same thing about us as businesspeople, that the salesperson that gets the sale and the salesperson that does not get the sale differ only by about 1%-4%, but the difference in commissions (or revenues) is enormous at the end of the year. I have also heard The Slight Edge Theory mentioned by the late Jim Rohn, as well as the fantastic book "The Slight Edge" by Jeff Olson.

This morning I had a brush with The Slight Edge. I accidentally woke up a little bit earlier. The clock on my coffee maker accidentally got set an hour ahead so coffee was ready when I accidentally got up. While I was rebooting my computer and preparing it for the rigors I put it through everyday, I checked my email on my Blackberry and noticed that the usual stack of emails I have to sift through in the morning weren't there yet. Part of my morning ritual is to retweet Seth Godin's blog (when I feel it is applicable). This morning it was the first tweet for me to review, saving me from what is sometimes a time consuming process.

It's not something that I've never noticed before. It's not like I've never heard the expression "the early bird gets the worm." It's just neat to sometimes experience a universal truth all over again...a kind of reaffirming sense of discovering something new, but something I've always known. Let's see what else I can re-discover today!

Focus on What I CAN Control

Ok, I admit it. I have gotten distracted. I have allowed the pundits on TV and the ________'s in Washington seduce me into getting involved in politics instead of focusing on business and what's REALLY important in my life...maybe not REALLY important, but what I can REALLY directly control.

Right now, I see that there is a battle taking place between government and business in which government is limiting business and the prosperity of this country, if not financially bankrupting my country. I had never noticed this before, but I also have read Atlas Shrugged now, at least to the point that the warning in the book and the drama on the TV became the same (in my eyes). I don't see "liberals" or "progressives," I see "socialists" and "communists." When I hear "tax the top 1%," or "the wealthy must pay their 'fair share,'" I hear "wealth redistribution" a la "The Communist Manifesto." I also see this as morally incorrect and an infringement on the freedom to succeed in business and in life, even though I am currently far from being in the top 1%.

When I first discovered Klout.com, I was influential about entrepreneurship, a subject that is near and dear to my heart. After a couple of political tweets, I find out that I'm influential about "prison" (Klout.com is based in Nancy Pelosi's district, lol). I've never been to prison however a few people with my name have, as I discover after "Googling" myself. After getting involved with the current political debate (and recently there have been many), I found myself taking a breather from my business life and getting angry about things I cannot directly control.

Here's the deal from my perspective. I give something power by the amount of thought and attention I give to it. If I give a government that has a history of spending beyond it's means more attention than it deserves, I give it power and I take away power from what I can do to contribute to the business world and the world of entrepreneurship. Where the two cross in my world is my love for the foriegn exchange markets and the government policies that are in the background. I need to remember that I cannot directly change government policy as I also cannot directly control how the FOREX market trades.

I CAN control my attitude and keep it a winning attitude. I CAN control how I invest my money and making it increase in value. I CAN control my business education and make sure I'm learning something new everyday about business. I CAN control my FOCUS and stay focused on what's REALLY important.

By staying focused on entrepreneurship and business, I make the best contribution to the world I can make...one more happier, wealthier and more-educated individual.

Why I'm Doing Better Than I Was Three Years Ago

This is a note to all the politicians and the people that think that government will help you out.

First, the question that is a campaign tool for many politicians is "Are you better off now than you were four years ago?" I am a fiscally conservative single heterosexual man who is doing better than he was four years ago. I even had to spend a weekend or two at a local homeless shelter here in downtown Atlanta as early as August 2007 and April 2008. So now, it's July 2011. How did I accomplish this miracle of improving my life in the midst of a financial crisis that is actually still going on?

The government didn't have a thing to do with it. I didn't get a stimulus check and I had business losses that gave my Federal tax benefits. I did not and do not see how the government did anything towards my personal progress except giving me the freedom to do it.

Perhaps, one of my best friends said it best: "You pulled yourself up by your bootstraps and pulled your head out of your ass."

1) I stopped drinking alcohol
2) I stopped smoking cigarettes
3) I took responsibillity for the results of my life
4) I invested in my mind and my continuing education
5) I read positive things, listened to positive things and started exercising
6) I started using Quicken software to better control my expenditures
7) I stopped wasting money on pipe dreams and "businesses" that I didn't have time to execute on.

Philosophically speaking, I came across "The Art of Exceptional Living" by Jim Rohn and "The Psychology of Winning" by Denis Waitley. I listened to them. I took notes. I red Atlas Shrugged because Jim challenged me to. I started pushing the limits of who I was into a new definition of Who I can be. I quit investing in a business that was doomed from the get-go and investing into more productive areas. I started paying off my debts and investing in me.

The bottom line is that I started accepting responsibility for my life. It's the only way to create change in your life.

My challenge to you is "Are you taking more responsibility for yourself than you wre four years ago?"

Economics vs. Politics

The "mainstream media" keeps telling me that the economy is in the crapper, but I've never been without a job for longer than around 45 days (except when I lived in south Florida in the summer one year in 2003). When I lose a job, I get another one. It's just the way I am. The last time I filed for unemployment, it took me 45 days to get my one and only check because it took me 10 days to find another job.

The politicians are all telling me that the economy is in the crapper, too. Personally, I don't have a lot to complain about. I'm not necesarily making more or less money, but I am thoroughly enjoying the ride! I did quit two very expensive habits, smoking and drinking. I seem to see things a lot clearer now.

So, what's really going on here? Some time ago, someone convinced (duped)the American public into thinking that Politics trumps Economics, and hence politicians control the economy. This is one of the biggest hoaxes that has ever been perpetrated on the American people. Maybe because as a formerly-homeless veteran, I can see through government lies about what they do to help you (us), the people. When I went to the VA in the summer of 2003, told them I was homeless and Honorably Discharged, produced copies of my DD-214's, they took a picture of me and then handed me my VA card. I asked about what resources were available to me, a homeless veteran. The answer was "Nothing." As it turns out, a LOT of homeless men are veterans. When the government puts better measures into place to help veterans adjust from military life to civilian life, I'll believe that the government can do anything to help me.

Here's another clue. The current attorney general of the United States recently made implications that the best weapon we have against terrorism is our civilian court system. This is nothing less of delusional. I have no idea how he can make such a statement. It's just not even worthy of attention it's so delusional.

Another clue: Al Gore. As you can see from the link, it is never mentioned that he minored in physics, meteorology (very physics-based) or ever worked as a scientist anywhere, yet, the effects of "global warming" are everywhere...until you ask a REAL scientist. It did cause a politician-forced shift in consumer products from an inexpensive industry to a more expensive industry, such as the ban on incandescent light bulbs set to go into effect in 2012. Here's a hint for you: The climate is changing and has every year since the Earth was born. Just ask a paleometeorologist.

This brings me to the next failure of the current political structure to convince me that we were sliding off a cliff economically. This whole debt ceiling thing is kind of a hoax. All the players involved know that the debt ceiling has to be raised. Why? They've already spent the money.

Why? THEY'VE ALREADY SPENT THE MONEY. This is the equivalent of going to the store with $30 in your checking account and spending $50. I don't know what happens to your bank account, but mine would get overdrawn and my bank would charge me a pretty decent fee.

They, the politicians (looters) have a spending problem. I fixed my spending problem. Why can't Washington fix theirs?

I believe that this 2012 election season is one where the American people choose not only a President, but an economic system. The steps are in place to further shift the American economy closer to socialism and further away from capitalism. The only excuse for the shortcomings of the socialist American system is to blame the previous President, not the fact that it mathematically does not work. Just ask Greece...

By the way, taxing the rich IS wealth re-distribution!

My Identity Crisis Continues...

If you've ever read that I blog for my own benefit and not yours, this is one of those posts.

So who the hell am I and why should you read this (another great question posed by Carol Roth)? She didn't ask me personally, but I'm going to try to answer this question for my own benefit.

In addition to buying the wrong plan in life, I had the wrong friends i.e. a group of attorneys and businesspeople in my hometown who frequently confused the activities "networking" and "alcoholism." It was the late 1990's and everyone was making money and times were good. I was waiting tables at the time (and still do, but hey, the bills are getting paid).

What was the first thing I did when I got out of the Navy, i.e. entered the "real" world? I started my own business and failed miserably. Upon recent investigation, I never had a business, but donated my money to someone else's "get-rich-quick" scheme. They didn't. They went bankrupt.

What did I do then? I got a job as a salesman in a retail jewelry business which doesn't exist anymore. I got my first taste of sales and I was pretty good at it. I made a litle bit of money and got my first taste of corporate politics that ultimately got me fired. That was over 20 years ago and I still detest politics, whether it is on TV or in my face.

Why did I go into sales when my background was in a highly technical field (nuclear power plant operation)? Because I wanted to become successful in business and someone convinced me that you HAVE to have a college degree to succeed in business or in life, for that matter. It was the early 1990's and the internet revolution hadn't quite made it to where I was living yet. Education was a lot more expensive than it is today. I am CERTAINLY not advocating dropping out of college for the sheer hell of it, but I am saying that there are other sources of education (i.e. Amazon.com). This has been a fallacy that I have to counter every day of my life. Of all the erroneous beliefs that have held me back in life, this has to be the most damaging.

Why didn't I go back to college? I was trying to make it in sales early in my sales career and I was surrounded by other sales people that didn't have degrees. Guess what "advice" I got? "You don't need to go back to college, just make taht next sale."

What am I doing about it?

At last something to work on with some merit...