Archive for the ‘Business’ Category
The Entrepreneur’s Credo – Thomas Paine
This is an inspiring reminder of what we should do, and how we should act, by Thomas Paine. (Thanks David Allen for the excerpt)…
I do not choose to be a common man,
It is my right to be uncommon…if I can,
I seek opportunity…not security.
I do not wish to be a kept citizen,
Humbled and dulled by having the state look after me.I want to take the calculated risk;
To dream and to build,
To fail and to succeed.
I refuse to barter incentive for a dole;
I prefer the challenges of life
To the guaranteed existence;
The thrill of fulfillment
To the state of calm Utopia.I will not trade freedom for beneficence
Nor my dignity for a handout.
I will never cower before any master
Nor bend to any threat.It is my heritage to stand erect,
Proud and unafraid;
To think and act for myself,
To enjoy the benefit of my creations
And to face the world boldly and say:
This, with God’s help, I have done.All this is what it meant
To be an Entrepreneur.
Excerpt from Common Sense, written in 1776, by Thomas Paine
Why does college cost so much (And is it worth it)?
Why does college cost so much?
There are several factors influencing the cost of college. Many of these interlocking factors seem to be catalysts for other price increases. The whole price issue with colleges is such a mess because there are just so many factors. As such, nobody knows who to blame, which makes it a tough issue to fight.
A few factors that contribute to cost include:
- Text Books – Considering the fact that many text books are just regurgitations of existing writings, mixed up in a different form, there is absolutely no reason the book should be worth $200. Take, for example, a calculus book. Nothing has changed, in regards to the information, yet the publisher forces us into a new edition by rearranging a couple chapters and swapping out a few math problems. Overall, no new value is added, but the company comes out pretty good.
- Labor costs – Professors and staff are sometimes overpaid for the value they provide. This is especially true when you add in benefits packages, tenure, and so on. It is true that some employees are paid less than they are worth, but these are usually the exception. Auxiliary staff consume large amounts of resources as well.
- Freely available student loans and grants – The readily available student loans create an upward push on the education market. Since the loans are neither tied to actual performance or to the student’s value (in terms of career wages after school), vastly more loans are issued than should be issued.
Is college worth the cost?
As a guy who went to a few colleges myself, I’ve had some time and experience to think about the true value of college. There are parts of college that are very valuable if it makes sense in your career path. Then again, there are many, many, parts that are less than useful. They simply consume precious resources that you will repay after graduation.
Outside of the fact that most employers demand a degree, there is little need for college in most circumstances. A high level tech school, or an intense on the job training program would do a much better job preparing an individual for life than a college degree would do.
There are hundreds of thousands of waitresses and parking lot attendants who worked hard through college and are now paying off a lot of debt. They would have been much better off skipping college and forgoing the debt.
Entrepreneur Peter Thiel, who made his fortune building PayPal and Facebook, is so eager to wake people up to alternatives to college that he’s paying students $100,000 each if they drop out of college and do something else, like start a business.
Even in my field (programming), there should theoretically be little need for college completion. Mark Zuckerberg, of Facebook, echoed this sentiment when he would recruit people away from college. Why program in a classroom, when you can do the real thing right now?
Mark was right. In reality, the best programmers got that way outside of the classroom. Computer Science classes can be beneficial, but if you want to find the true superstar programmers, you need to look outside the classroom. Look to the open source coders, the hackers, and the innovative individuals that code not because they were told to do so, but because they need to invent, create, and build. Here, you will find your best “workforce,” whether they have been to college or not.
So, is college worth it? That is a question for you to decide. I lean towards “no,” but given society’s aversion to individuals who buck the system, it may be necessary at times. Check out the video and also let me know what you think about the matter below.
Big Brother wants you[r guitar]
In a disturbing, but increasing trend, Federal agents raided the manufacturing offices of Gibson Guitars, seized pallets of hardwoods, and gave little explanation. There “investigation” seems to be related to recent laws that ban the import or transport of illegally obtained hardwoods from certain countries.
In the governments new policy of “guilty until proven innocent,” they now seize your property and fine you if you cannot prove the hardwoods came from a legal source.
In part of the article, they say the following:
It’s not enough to know that the body of your old guitar is made of spruce and maple: What’s the bridge made of? If it’s ebony, do you have the paperwork to show when and where that wood was harvested and when and where it was made into a bridge? Is the nut holding the strings at the guitar’s headstock bone, or could it be ivory? “Even if you have no knowledge—despite Herculean efforts to obtain it—that some piece of your guitar, no matter how small, was obtained illegally, you lose your guitar forever,” Prof. Thomas has written. “Oh, and you’ll be fined $250 for that false (or missing) information in your Lacey Act Import Declaration.”
This is not the only area where the Obama run regime has decided to implement its shoot first, ask questions later approach. Gold has been treated in a similar manner as of July 15, 2011. Individuals who unknowingly hire illegals, have been fined and their businesses have been crippled (Thanks Bush ).
What ever happened to “innocent until proven guilty?” And since when are the ordinary law abiding citizens supposed to assume they are dealing with a criminal until they can get documentation to prove otherwise. If the government has a law against something, it is their job to enforce it, not the ordinary citizen’s job.
Making such regulations leads to a breakdown of trust and a breakdown of community in America. The “trust no one but your government” mentality is destroying our great country from the inside.
Lawmakers need to think about the laws they pass and resolve to assume innocence unless proven otherwise. Law abiding citizens should not have to live in fear of their government, all people should be respected and treated as an upstanding member of society unless proven otherwise.
The Mexican and the Tourist
I love this story. I just heard it today and it really impressed me…
An American tourist was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked.
Inside the small boat were several large yellowfin tuna. The tourist complimented the Mexican on the quality of his fish and asked how long it took to catch them.
The Mexican replied, “Only a little while.”
The tourist then asked, “Why didn’t you stay out longer and catch more fish?”
The Mexican said, “With this I have more than enough to support my family’s needs.”
The tourist then asked, “But what do you do with the rest of your time?”
The Mexican fisherman said, “I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life.”
The tourist scoffed, ” I can help you. You should spend more time fishing; and with the proceeds, buy a bigger boat: With the proceeds from the bigger boat you could buy several boats. Eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor; eventually opening your own cannery. You would control the product, processing and distribution. You could leave this small coastal fishing village and move to Mexico City, then Los Angeles and eventually New York where you could run your ever-expanding enterprise.”
The Mexican fisherman asked, “But, how long will this all take?”
The tourist replied, “15 to 20 years.”
“But what then?” asked the Mexican.
The tourist laughed and said, “That’s the best part. When the time is right you would sell your company stock to the public and become very rich, you would make millions.”
“Millions?…Then what?”
The American said, “Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos.”
Credit Crisis Explained
Declaration of Financial Independence
- We will spend less than we earn. Saving a little out of every dollar we bring home is the foundation of independence. Without it, we can’t build equity in our home, we can’t invest for the future, and we can’t be ready for challenging times. We promise to pay ourselves first, always.
- We will use our home as a savings account. Besides shelter and comfort for our family, the role of a house in our financial life is to build equity. We will have a healthy down payment when we buy. We’ll choose the mortgage that lets us pay down the principal fastest. And then we’ll leave that equity safe where it is instead of spending it on things that don’t last.
- We will take care of our money. It’s not enough to have money in a bank. We will put it where it will grow. We’ll keep track of it. And we’ll check every account we have every year to protect ourselves against fraud or escheatment.
- We will defend our credit worthiness. Good credit is going to be precious in the years to come. We will pay our bills on time. We’ll borrow only when we need to and in amounts we can comfortably pay back. And then we’ll do just that.
- We will ignore unsolicited credit card marketing. We decide when we need a credit card, not some marketer. And mostly, we probably don’t need another one at all. We won’t even open those solicitations. We’ll shred them.
- We will know the cost of borrowing. The interest lenders charge us is real money, too. When we buy a mortgage or finance a purchase, we’ll figure out what that interest is really going to cost in dollars, add it to the purchase price, and ask ourselves if it’s still worth it.
- We will invest for the long term. Futures are built out of patience and prudence, not luck. We will not put off being a saver because we think there’s a lottery win in our future, in Vegas or on Wall Street.
- We will take care of the things we have. We work hard for our money, and it’s disrespectful to waste it – or the planet – by treating our possessions as disposable.
- We will remember what matters. We are not the things we own. If we have to spend and spend on bigger, more impressive things to keep up with our friends, then they are not our friends at all.
- We will be heard. Our representatives in government and the corporations we deal with need to know that we are paying attention. If we’re silent, we’re accepting the status quo, and the business practices that got our country into this situation will continue. We are not going to accept that.
Advice on Starting a Business – S Corp or a LLC
I came across a great article explaining the differences between an S-Corporation and an LLC. Most entrepreneurs will tell you that one of their difficult decisions they faced when starting their first business was how it was to be organized.
The United States Government has made a web of confusing laws regarding companies that can seem impossible to wade through. Hopefully, this site will help you in your journey toward a new business opportunity.
The Price of Rice is Crazy
You may not have realized this, but corn, gold, and oil are not the only high priced commodities in the world markets. Rice, a staple of many families worldwide, has become so expensive that families are rationing what they have.
You see stories such as this one, describing the dismal situation around the world.
While the issue itself is serious, I did hear a rather humorous song on the Chris Baker show the other day. The Price of Rice is Crazy.
My List of Accomplishments… And you should be proud of me!
I think that sometimes I know exactly how Wally feels in this Dilbert Cartoon! If you ever had one thing lead to another with an upgrade, you will know exactly what I mean.
I guess you could say this is kind of like “Feature Creep,” only one might call this “Upgrade Creep.” What started as a simple software install, soon progresses to a mother board altering 13 ring circus.
Free Wi-Fi Router and Free WiFi Hotspot Access!
Fon, an internet hotspot company, is giving away free wireless routers to new customers. This is perhaps one of the best deals I have ever seen on the internet.
Fon has an interesting business plan that I wish I had thought of. They eliminated much of the infrastructure cost by getting home users and businesses to provide their internet connection as a Wi-Fi hotspot.
In return for the use of part of the person’s internet connection, Fon gives the user unlimited free access to all other access points around the world. On their website, they provide a map containing wireless hotspots all around the world. It appears that Fon is big in Europe, but just starting to develop in America.
Fon charges $3 a day for other non-Fon users to utilize any and all Fon hotspots for a day. Fon offers businesses an opportunity in this area as well. Fon will give half of the profits generated from a business’s hotspot to the business if they subcribe for the free business grade service.
If you are worried about security, rest assured that the router has two “channels,” one for your own local network, and the other channel for general plone users.
For those interested in receiving the free wireless router, the company is currently celebrating their first birthday by giving away free wireless routers (normally cost about $30). They charge no shipping and no tax. I just ordered mine today. You can order yours by going to http://www.fon.com/1yearold/.
If you would like to find out more information about the deal, you can also visit Jonathan Zittrain’s blog entry on Fon. He explains his setup of his new router and expresses some concerns and opinions about Fon.
