The Rules of Business By Fast Company's Editors & Writers

55 Essential Ideas to Help Smart People (and Organizations) Perform at Their Best
By Fast Company's Editors & Writers
Doubleday (A Division of Random House, Inc.)
$19.95; hardcover; 246 pages; (2005).



This slim volume is filled with business ideas that you probably already know – but it never hurts to be reminded of them. Most rules are accompanied by a short explanation and quotes from business leaders.

Take #1 Rule, for instance: The first rule of business is the same as the first rule of life: Adapt or die.

Nothing surprising here – but just think how often most people strive to resist change. When we find something that works, we want to do it again and again – often oblivious to the fact that our original way of solving a problem or dealing with an issue is no longer effective.

Rule #2 reads: Innovation is difficult and often painful. But there is no alternative. (See Rule 1.)

"The minute you get good at something, you get comfortable. And that leads to stagnation. People on my team have learned to embrace change."
- Tamar Elkeles, Vice Preside of Learning,
Qualcomm

The book lists rules to follow in over 20 different areas of business, including: communication, customer service, technology, marketing, leadership, risk, speed, and the future.

My favorite? Rule #55: If you haven't had one spectacular failure in your life, you haven't tried hard enough. My favorite quote:

"If you think you're too small to have an impact, try going to bed with a mosquito in the room."
Dame Anita Roddick, founder,
The Body Shop


If you enjoy pithy reminders of everyday business principles, this book's for you.

The world is flat: A Brief History of the Twenty-first Century

Wake up now or we'll fall FLAT on our butt, or even worst FLAT on our face!

Title: The world is flat: A Brief History of the Twenty-first Century

Author: Thomas L. Friedman
Publication Year: 2006 (expanded and updated edition).

I agree with lot of basic argument can't say I love the book, because it's a little s-t-r-e-t-c-h-e-d ...seems to drag on. But author gives a lot of examples, but if someone actually follow the current events your mind will start to wonder off. I think 300 pages is all the book need. Book did hit all the key buzzword. I have found this link from University of Maryland with definition of the buzzword, this book was selected as 2006 first year book program.

Friedman is obviously a very accomplished writer, but in this instance I think less is more. Friedman explores the idea that the world is flattening by the leveling of the playing fields connecting all areas of the world in a way never imagined mid-90's.

The three versions of globalization starting from the exploration of Christopher Columbus. From 1492 to about 1800, it was Globalization 1.0.

The second era, Globalization 2.0, lasted from 1800 to 2000. The key agent of change, and the dynamic force driving global integration was multinational companies, driven by first the falling transportation costs, and then by the falling telecommunication costs.

Globalized 3.0 took off around 2000 and shrank the world from small to tiny, and flattening the playing field at the same time. With the movement of information improved so drastically that it empowered the individuals to participate in the globalization.

Author have inserted some of his view about Arab world into the book at the very end. Things get complicated when you fix in Muslims ... I think Muslims make more than 30% of Indian, and a little less in south Asia.

perhaps he is trying to be controversial which sometimes helps to sell books. now can we get on with globalization?

Reference:
I found this book review from mymoneyblog.com

http://www.mymoneyblog.com/archives/2007/03/the-world-is-flat-book-review-and-commentary.html

don't take my java away!

I been using Starbucks Card Duetto Visa program to infused some extra caffeine into my body. now it'll end by end of March, 2010.

"the credit card partnership between Starbucks and Chase Bank USA, N.A. has ended. As a result, in April 2010 your Starbucks Card Duetto credit card account will be replaced with the new Chase Freedom credit card."

Not sure which party decided to end this relationship. I guess I'll found other ways to fill this gap. In the mean time Starbucks sent me coupon book for 6 free drinks (1 each month). Will come in handy when I am out and above.

Reference:
Seattle Times
Starbucks Gossip

scam or not, that is the question. Market America

some background from their web site, Market America was founded in 1992. They are based out of Greensboro North Carolina. Market America is a product brokerage company that specializes in Internet marketing and more specifically, one to one marketing. Essentially their distributors earn commissions by getting their customers to shop through their websites. They have over 180,000 distributors worldwide in the US, Australia, Canada, Hong Kong and Taiwan. The more than 3 million preferred customers have generated over $3 billion in revenue since they started 17 years ago.

Basically, a distributor is able to sell products wholesale and also make commissions when their customers shop on their Web portals. This is called the Mall Without Walls. Corporate sees this industry booming as more people tend to shop online these days. When distributors sign up, they are given a Unfranchise business. I believe they call it this because you appear to be getting the benefits of a franchise without it being a franchise. Okay, so now that we have pointed out the products and services that MarketAmerica provides we found that there is no Market America pryamid scheme, and certainly no Market America scam.

I had a difficult time learning about Market America’s compensation plan. Their official website discloses that is a Binomial Market System with a Management Performance Compensation Plan.This sounds confusing to me, but from what I understand distributors get paid when they sell product, when they recruit new distributors, and when customers use their web portal to purchase products online. I prefer that the company list exactly how they pay their distributors. I tend to think that if they don’t list it, it’s probably not very good.

Let's put some numbers into this...
You need to keep your right and left sides balanced in order reach the optimum payout each week; thus you need to generate 1200 points on both the right and left sides of your first level. For the second level you need 2400 points and 3600 points on the third level. Each level will generate $300. However, for your fourth level, you need to generate 5000 points on both sides equaling $600. Therefore you will have three levels earning $300 each and one level earning $600 for a total payout of $1500 per cycle; whereas each week is a new cycle and resetting back to 0. The simplest way to keep your residual income is to balance 50 enrollees on both side totaling 100 people in your business model. Each enrollee needs to make at least 100 points; when translated your total revenue is $12,000 and a weekly payout of $1500.

Market America’s main product line is Isotonix. These are vitamins, which as I’ve discussed in the past, are great products to market because they are consumable and people will need to purchase them again and again. Of course, there are limitless products since you can shop for everything from groceries to appliances through the Web portal. this is another reason why I have never personally joined Market America. There too many products for me to keep track of. I actually have a family member currently involved with Market America, and while she likes the products, she is not making the income in her Market America MLM business that I think she had hoped for.

The company does offer annual meetings and training opportunities as well as a complete web portal available when you sign up as a distributor. From what I could see they do offer a system they consider to be duplicatible. Again, I think this is dependent upon the individual and whether or not they really try to have success in their business.

So what’s next? Are you going to join Market America? Whether you decide to or not, you want to be one of the people that has major success. How are you going to do this? Are you going to be like my family member and try to get other family members to join you? How about talking to people that “get” network marketing? How about using a system? How about branding yourslef so that they want to join YOU in YOUR business, and not just start a Market America Business.

Make a world a better place [microloan / micocredit / microfinance]

I started doing this back in 2005, start with just $50 I have in my PayPal account. Use kiva.org which featured in PBS show Frontline you can read the article here.

kiva is great, people from 3rd world county would post their business plan and the amount they are asking for. There is a screening process done by partners, the borrower usually ask for few hundred dollars, so you and other "investor" would pool the money and loan the money. You can see the money getting repaid (an email alert is sent)! BTW, this is NOT FOR PROFIT so your'll get the $50 back not a penny more ( you could loss money but it hasn't happen to me yet) the low interest that was paid goes toward the kiva and partners that help supporting microloan.

Why doesn't these people go to the bank you ask? Well, if you have gone to your local FDIC insurance bank you'll realize the interest rate is very high... and most of the 3rd world country entrepreneur does not qualify. hence the mico-loan.

If I can help someone's life just a little better cross the world $50 is a small price.




Update:
Q: Is the loss of loan tax deductible?
A: No it's not. Only if you donate to kiva than it's tax-deductible

kiva.org's site answer alot of question and the community is very friendly feel free to post your question there. More video can you found on http://www.youtube.com/user/kivamicrofunds

It ain't over yet, fat lady hasn't even show up!

Happy New Years!

People likes to look back in the past year and reflect. This process of looking back (history?) should be done more often. There were alot of predication on the wire on how long or deep this recession will continue. I figure this is a good time to take a quick peek what were said in 2009.

Business Week April 2009, the article is a little bullish at the time but some it's prediecation is coming up.

the resets will begin to accelerate next spring (2010), rising from about $4 billion resetting in March 2010 to a peak of $14 billion in September 2011. The current level is about $1 billion. About $500 billion of option ARM loans are outstanding, according to the bank. "Things have gotten pushed out," says Chandrajit Bhattacharya, director in U.S. Mortgage Strategy for Credit Suisse. "Right now it looks like the big increase is probably going to be somewhere toward the middle of next year."

What BW didn't know at the time is the 1st time home buyer credit which happen to end in APRIL, hmmm maybe somebody saw the number ahead of time. So I am guessing "the man". is trying to spread-out the possible money problem?

The perfect storm?






















The graph given above gives the expected interest rate resets in the coming months. Can you see the increases in the mortgage rates all the way to July 2012 after which they are seen to be coming down. This increase in interest rates spells doom for the dubious loans given in the form of Alt-As and Option Arm mortgages. Credit Suisse estimates a total of about $1000 billion worth of these to be affected by these interest rate resets. These interest rate resets translate into higher monthly mortgage payments for the loan holders and coupled with the current recessionary trends of job cuts and retrenchment, one can hardly expect all of these obligations to be fulfilled. Increasing job losses and low prices in the real estate markets should see a lot many defaults, a trend that has already begun. As of February job loss rat is 9.7 , for update you can see Bureau of Labor Statistics web site.

The outcome of all these unsecuritized lending sprees and now the interest rate resets is that, the second wave of the housing crisis is predicted to go well into the year 2012, is estimated to peak at higher heights and is forecast to last twice as long as the first wave.


Let's fast forward to February 2010 Credit Susse (reported by SNL)

Most of the resets are expected to occur through 2012. Between 2010 and 2012, the chart indicates that $253.25 billion of option ARMs will adjust, while Alt-A loans totaling $163.71 billion will reset over that time. Altogether, $1.010 trillion worth of ARMs will reset or recast during the three-year period.

Update: February 2010 I found a few great graph from SNL.