Showing posts with label Entrepreneur. Show all posts
Showing posts with label Entrepreneur. Show all posts

Tuesday, September 6, 2011

Long Reflecting - Felipe Cubillos


Long Reflecting - Felipe Cubillos.

I want to share with you these reflections of Felipe Cubillos, I believe that words are enough.







“What I learned in the race around the world” (regatta)



Hello everyone,

We are now less than 24 hours to finish the Race Round the World and when you open your computers we might have an advantage close to 150 miles and many of you will think that we already won this stage, end to end. We´d love to be that way, but experience teaches us to wait! Races are won and lost at the goal.

And here is a short summary of what I learned or reaffirmed throughout this time. I do it in first person because I don´t want to involve my friend in everything you´ll read below.

1.- About kids. Definitely not yours, just love them and try to educate by example and if you can transfer them to seek their own dreams, not yours. And do not expect thank you for everything you do; the appreciation will come many years later, maybe when you´ve become a grandfather / mother (then they will know just what it is to be a father / mother). But if in the meantime, they even say to you that they are proud to be your son / daughter, richly feel rewarded for that. And if one of them should leave before you, at least you´ll have the consolation that you said to them many times that you really love them.

2.- About parents, always thank them to brought you into this wonderful word and that they gave you the only chance to live, just that, Live!

3.- About the sea, wind and nature. Admire and protect it, is unique and we have no other. To the sea and wind, never try to beat no less challenge. They have everything to win. If you want to be a sailor, get used to living in permanent crisis.

4.- About limits. They do not exist or are far beyond what you think. How much further? That´s the question, you have to take yourself to the limits and there you´ll find it out.

5.- About talent. It is useless if not accompanied by determination, planning, discipline and perseverance. Talent is ephemeral, determination… Eternal!

6.- About love. Be thankful to Universe if you always wake up every single morning with a kiss and a smile. And do as bees and butterflies, they do not look for the prettiest flower in the garden, but one that has the highest content.

7.- About society. Helps those who are equally or more capable than you, but have not had your same opportunities. They are the most forgotten by the society, because it always helps those who ask and shout, but the ones that I mean, do not seek help, they just need a change. I still dream with a more just and more human society.

8.- About leadership. I miss in today´s world to those leaders that did what they should do and what should be said, without waiting immediate results in the polls. I refer to those that mark a path, not those who follow the masses.

9.- About wealth. Once you have funded your cash flow, try to buy more time than money, more freedom than slavery.

10.- About the anguish and bitterness. When you think something is not possible and the problems overwhelm you, that you cannot go further, take the time to expected to see the stars and waking dawn, there will always discover the sun rises, ALWAYS!

11.- About triumph. If you want to succeed you must be willing to fail a thousand times and willing to lose everything you´ve got. And do not be afraid to lose everything, because if you´ve earned rightly, you´ll recover it abundantly.

12.- About present. Live intensely, is the only moment that really matters. Those who cling to the past died, and those who live dreaming the future, yet unborn.

13.- About success and failure. Acknowledge them as two impostors, but especially learn from failure, own and those of others, there´s too much knowledge not generally used.

14.- About friends. Choose those who are with you when you´re in ground, because when you get the glory, you´ll be overrun.

15.- About team. Encourage them through the tough time and never allow one for failing to leave you, that´s the most important.

16.- About your Country. Love the land that gave you birth, work to make your country a better place for everyone, show and be proud of your flag, whenever it is (doesn´t matter if we are good or bad for soccer).

17.- About effort. Never surrender, don´t believe the story that when something is costing a lot is because it should not work, is simply that the Universe is testing you on whether or not you are worthy of success.

18.- About fear. Not fear, it´s a great teammate, but you don´t immobilize and not fear to play the fool or ridiculous; history teaches us that great discoveries are tremendous lessons and product of those moments.

19.- About God and Heaven. I think if we act in doing good, can be on the waiting list if heaven exists and if not, we will have our own Heaven on this Earth. And I did not found him only in the South Sea, in the clouds, storms, the waves, at the end or the beginning of the race. Was always with us, inside, deeply inside us.

20.- And when in doubt of what to do, ask yourself what is your Cape Horn, arm yourself with a small backpack to carry only enough to survive and begin to walk. And be sure to look at the sky, there discover the albatross that will teach you to fly off with effort and released. And you´ll realize you don´t need to fly in a flock.

21.- Never, never give up to your dreams! Pursue them passionately and if not succeed, no matter, that road that you made have been worth living and I hope your pursue the dream is the impossible dream.

22.- If you´re fortunate to one day compete with rivals the size we had to face in this regatta, honor them, admire them, but deliver all you have to beat them fair and square, they deserve it.

23.- If on the day of my death are given the choice to be reborn, I choose to be an Albatross to fly the South Sea and look at the intrepid sailors risking their lives and leave everything in search of their dreams, seeking their impossible dream.

24.- And never take too seriously a sailor who is finishing a race around the world. Only he will know to sail a little more, nothing more!

Felipe Cubillos

Wednesday, February 25, 2009

For Innovators, There Is Brainpower in Numbers

Despitethe enduring myth of the lone genius, innovation does not take place in isolation. Truly productive invention requires the meeting of minds from myriad perspectives, even if the innovators themselves don’t always realize it.
Keith Sawyer, a researcher at Washington University in St. Louis, calls this “group genius,” and in his book of the same name he introduces a scientific method called interaction analysis to the study of creativity. Through studying verbal cues, body language and incremental adjustments during team innovation efforts, Mr. Sawyer shows that what we experience as a flash of insight has actually percolated in social interaction for quite some time.
“Innovation today isn’t a sudden break with the past, a brilliant insight that one lone outsider pushes through to save the company,” he says. “Just the opposite: innovation today is a continuous process of small and constant change, and it’s built into the culture of successful companies.”
It’s a perspective shared broadly in corporate America. Ed Catmull, president of Pixar Animation Studios and Disney Animation Studios, describes what he calls “collective creativity” in a cover article in the September issue of Harvard Business Review. “Creativity involves a large number of people from different disciplines working together to solve a great many problems,” he writes. “Creativity must be present at every level of every artistic and technical part of the organization.”
So, we all should brainstorm our way through the day, right? Wrong. That classic tool introduced by Alex Osborn in 1948 has been proved in a number of studies over the last 20 years to be far less effective than generally believed. “He had it right in terms of group process,” says Drew Boyd, a businessman based in Cincinnati who blogs and speaks often about innovation. “But he had it wrong in terms of the method.”
Brainstorming, Mr. Boyd says, is the most overused and underperforming tool in business today. Traditionally, brainstorming revolves around the false premise that to get good ideas, a group must generate a large list from which to cherry-pick. But researchers have shown repeatedly that individuals working alone generate more ideas than groups acting in concert. Among the problems are these: Throwing in an idea for public consideration generates fear of failure, and workers looking to advance their own interests often keep their best ideas to themselves until a more opportune time.
Instead of identifying a problem and then seeking solutions, Mr. Boyd suggests turning the process around: break down successful products and processes into separate components, then study those parts to find other potential uses. This process of “systematic inventive thinking,” which evolved from the work of the Russian engineer and scientist Genrich Altschuller, creates “pre-inventive” ideas that then can be expanded into innovations.
Kapro Tools, working with an Israeli company called Systematic Inventive Thinking, used the method to create a new type of bubble level calibrated to help build gentle slopes to improve drainage. Previously, construction workers approximated the slope they wanted by placing a nail or other object under the edge of a standard level.
“Innovation is a team sport,” Mr. Boyd says. “There’s a dynamic that happens between people that produces results I just don’t see with an individual.”
Even Albert Einstein, society’s most common mental picture of genius, needed group input to hone his insights. According to “Einstein’s Mistakes” by Hans Ohanian, the great physicist’s derivation of the famous equation E=mc2 contained several errors; it wasn’t until 1911 that another scientist, Max von Laue, developed a full and correct proof.
“The best innovations occur when you have networks of people with diverse backgrounds gathering around a problem,” says Robert Fishkin, president and chief executive of Reframeit Inc., a Web 2.0 company that creates virtual space in a Web browser where users can share comments and highlights on any site. “We need to get better at collaborating in noncompetitive ways across company and organizational lines.”
THAT’S exactly what innovators at a dozen health care systems throughout the country had in mind nearly four years ago when they formed the Innovation Learning Network, says its director, Chris McCarthy. The problem, he says, is that there are so few health care innovators within each organization that introducing technologies and processes can be painstakingly slow. “We thought if we could get all these experienced folks together to push each other’s thinking continually, we’d all be better off,” he says.
What started as a grant-financed, one-year trial is now a member-financed permanent network, he says. The members bring in new technologies and experiment with them in a faux clinical setting in San Leandro, Calif.,. One of the first large-scale initiatives to arise from the network is KP MedRite, an effort at Kaiser Permanente’s 32 hospitals to ensure that nurses are not interrupted while dispensing medications. Other member health care systems have already begun to introduce the program at their sites.
By using the group’s knowledge and experience, Kaiser Permanente accomplished in less than a year what would have required roughly two years to do without the network, Mr. McCarthy says. “It was a huge jump-start for us,” he says. “The group effort allows us to move much more quickly and become successful much faster.”


This article was extracted form the NY Times.

Sunday, February 15, 2009

Google Adwords 3: Making money with google

I have spent a lot of money developing products, services and ideas that nobody wanted to buy.

A huge waste of resources, specially if we consider in how many other “bad” ideas the people continue and will continue developing and spending their money.

If you understand how to use google AdWords, never ever you will need to invest a huge amount of money, just a few dollars… in the worst cases just a couple of hundreds if you still insist in an idea that does not work.

If you have a product idea and the product developing costs around U$2.500 and you are sure that these product is a good idea and it solve a complex problem.

So now write a little electronic manual (it does not have to be extended) about whom to solve that problem. Create an opt-in web page (this is optative register) where people can get your manual free, just they have to share their contact information. Then just buy a few key words, write some ads, send people to that information webpage and look how many people register to get that report.

Now, if nobody registers in that page… sincerely it is a great sign to abandon the project or reformulate it completely, before to spent more money. But when people register, you can communicate with them and ask for what they are looking for. This can give you a great feedback!

This process will help you to validate if the problem that you are trying to solve is relevant to the consumers, or in the worst case it will allow you to see which problems are most important to them.

Another application for AdWords. Market Investigation.

Just buy a few key words, write two ads (one for every key word). After one week or a month you will have 5.000 clicks that they would have cost you no more than U$750.

Now you will have information about your consumers: what they really made in relation of your proposals.

Just better and cheaper than a market investigation made by a company “specialized” in that area.

Saturday, February 7, 2009

Invention & Innovation in Crisis Time



We do not try that the thingsthey change if always we dothe same”. The crisis is the best oneblessing that can happen to him to peopleand countries because the crisis brings progresses.The creativity is born from the anguishas the day is born at night dark.It is in the crisis that is born the inventiveness,discoveries and high strategy.Who surpasses the crisis is surpassed to ifsame without being “surpassed”. Who it attributes to the crisis their failures and shortages do violence to their own talent and respect more to the problems than to the solutions. The true crisis is the crisis of incompetence. The problem of the people and the countries are the laziness to find the exits and solutions.Without crisis there are no challenges, without challenges the life is a routine, a slow agony. Without crisis there are no merits. It is in the crisis where the best thing of each arises, because without crisis all wind is caress.To speak of crisis is to promote it, and to be silent in the crisis is to raise the conformism. Instead of this we work hard.We in one go end the unique threatening crisis that is the tragedy of not wanting to fight to surpass it.


Albert Einstein

Wednesday, February 4, 2009

More With Google AdWords

The business mission of Google Inc. was to construct a mechanism or search algorithm which present information to who is seeking for it, but exactly what you are looking for as fast as possible.

They develop an algorithm capable to calculate who visit web sites and why, with that information they refine their own search engine.

So… when google start to sell ads over the pay per click mode, they where so interested that the ads where relevant for the advertisers and they run over the same idea that the search engine.

It works this way: Google award you if you are relevant y allow people looking for information vote in you. If your ad is “clicked”, so you are relevant. If not, you aren´t. That simple it is.

When higher is you Click Through Rate (CTR), these mean when more people look at your ad and they click it you will pay less for the clicks. But if your ads are with low relevance, google will make you pay a lot for that click. This creates a “Darwinian” effect, award to the professionals and let amateurs out of business.

So, what is good for google clients is good for google and also for you.

A Trivial change can diminish your cost by key Word in 90%.
Why the auction price is not the real price that you pay and the huge difference that this makes for you?

What to do when your key words appear as inactive?
The price that you establish for the key word auction (bid price) almost never is the price that you really pay. Always you pay less than it.

You really are paying one cent more compared to the immediately position (down of yours), not the maximum price that you are allow to pay.

But there are another “secret” more important that is a key to get lower and lower prices, doesn´t matter how many “players” are in the game.

Your Click Through Rate is much more important than the price that you allow to pay for every click.

If 100 people search, your ad will be shown 100 times and if only 1 person click in your ad, your CTR is 1%. Simple.

Suppose you have 1% CTR and you will pay just U$1,00 for the second position. Now suppose that your CTR is 2% now. If you make the right things, you must only pay U$0,51 for every click in the second position, living you a free 3rd position.

In other words, you is twice more relevant and for that, you will pay only the half. Contrary, if I would like to have your position I will have to pay one cent more than your double, that is U$1,01 for every click!

The rules of the game are simple, and their impact is enormous.
When you get high CTR rates, your costs will go down, down, your ad will stabilize in the same position in the page and the amount of visits in your site will grow.

The difference could be amazing.

Monday, January 26, 2009

CD DVD Recycling

Each year, billions of compact discs (CDs, CDr’s and DVDs) are produced, while millions of them are reaching our landfills and incinerators. Why are they not getting recycled? Because most people don’t know what to do with them! Please play your part in helping to save our environment by starting to recycle your old and unwanted discs today. It’s simple to set up your own compact disc recycling program in your home or office.


A Compact Disc is made from a 1.2 mm thick disc of almost pure polycarbonate plastic and weighs approximately 16 grams. The physical components are defined as--moving from the centre outwards--centre hole, first transition area, clamping area, second transition area, information area, rim. These are also identified as spindle hole, clamping ring, stacking ring, mirror band, data area, rim.


A thin layer of aluminium or, more rarely, gold is applied to the surface to make it reflective, and is protected by a film of lacquer. The lacquer is normally spin coated directly on top of the reflective layer. On top of that surface, the label print is applied. Common printing methods for CDs are screen-printing and offset printing.


The Policarbonate of the CD/DVD discs are an optical degree Policarbonate (arround 2.000 U$/Ton), so recycling this kind of polymer could be a great business. Also the recuperation of the aluminium, gold and silver could be interesting for this recycling industry.


The YouTube video show a simple process which can be made at home (taking the cautions of using strong acids). The video do not share the "magic liquid" but I made at home several tests and that liquid is Nitric Acid concentrated (HNO3).





Diagram of CD layers.

A. A polycarbonate disc layer has the data encoded by using bumps.

B. A reflective layer reflects the laser back.

C. A lacquer layer is used to prevent oxidation.

D. Artwork is screen printed on the top of the disc.

E. A laser beam reads the polycarbonate disc, is reflected back, and read by the player.




Wednesday, January 21, 2009

e-volve !


I thought people would simply use the service to buy and sell things, but what they really enjoyed was meeting other people. (Pierre Omidyar, Founder, eBay).



Searching … Searching… reads the message at the bottom of my screen. It seems emblematic of the state of the world. Everywhere I turn, I find people who want to know what the internet really means for their future and what they must do to succeed.


Internet is a revolutionary technology that cannot be ignored or avoided. New economic and organizational forces stemming from the rise of the Internet affect more than just those people and companies whose work centers around the World Wide Web. These forces have an impact on workplaces of all kinds, reaching non-computer users as well as avid techies. The Internet has the potential to transform every economic and social institution, from business to education to health care to government.



“ A must-read for all who care about the future”


People and organizations at every stage of internet sophistication face the same burning question: How should they change in order to succeed in a digital world?


Renowned thinker and business trailblazer Rosabeth Moss Kanter says answers will be found not in cyberspace but on the ground, where real people connect, collaborate, and form thriving human communities. In this eye-opening book, Kanter explores what she calls “e-culture” – a new wat of living and working that will transform every aspect of today´s organizations.


Kanter argues that networks of relationships, not just new technologies, permit speed and seamlessness, encourage creativity and collaboration, and release energy and brainpower – the “soul” of e-business. And every organization – from dotcoms to dotcom-enablers (technology and service providers) to wannadots (traditional companies struggling to embrace the Web) – must lead to build and foster them.


Based on a landmark project with a rare on-site access, over 300 interviews, and 785 company global survey, Evolve! Provides a hands on blueprint for adopting the core principles of e-cultrue: treat strategy as improvisational theater; nurture networks of partners; reconstruct organizations as online and offline “communities”; and attract and retain top talent.


With colorful and memorable stories, Kanter illuminates vast differences between older, more conservative companies and aggressive, born-digital dotcoms. She takes us deep inside evolving organizations – including IBM, eBay, Reuters, Sun Microsystems, Razorfish, Abuzz, barnesandnoble.com, Williams-Sonoma, and pioneering public schools – to provide best practices from e-culture pacesetters and cautionary lessons from internet laggards. Defining the skills leaders need to master change, she reveals how dotcoms and dotcomenablers can grow fast while crafting a great culture, and how wannadots can benefit by becoming Web-enabled.


For anyone who wants to realize the potential and avoid the pitfalls od the Internet Age, this pathbreaking book identifies and analyzes the emergence of e-culture – and provide a lively, rool-up-your-sleeves guide to profiting from tomorrow.



More Words for Motivation



"The truth is, whether you know it or not, your thoughts are responsible for whatever place or situation you are in right now."

"Any self-improvement program or journey of personal development starts with your thoughts. Master your thoughts first. Then you can master your environment and circumstances."

"Dreamers chart their own course and destiny. Dreamers are always striving to be the person they were meant to be and are not afraid to be different."

"I am here to tell you that there is another way. It’s not for everyone. It’s not the only way. It’s not the easier way. Actually, it is more likely to be the harder way. But I guarantee you it is the best way. It is simply this – follow your dreams."

"We cannot exhaust the creative power of our minds."

"If your mind can accept that something is achievable, it will find a way to attain that thing."

"Your potential as a human being…is unlimited. You have within you the ability to become and to achieve anything you want."

"Your vision is limited only by you. The problem is that you don’t know what you should be. It’s not your fault, really: your education has messed you up. It has taken your boundless potential and shrunk it and shaped it into a narrow title."

"If something is widely accepted and everyone is doing it, it is probably better for you as a dreamer not to do it."

"It is your responsibility to get the correct knowledge so you can have the correct road map of life. Ignorance is no defense. Ignorance will kill you."

"The truth is that while you are not totally responsible for what does and doesn’t happen to you, you are responsible for how you respond to what happens to you."

"There is a big difference between wishing and being a dreamer. Dreamers design their ideal life and work to achieve it everyday. They don’t believe in chance or luck. Wishers wait on a genii to grant their three wishes all their lives. The problem is, if the genii were to ever show up they still wouldn’t know what to wish for!"

"It may seem hard to take full responsibility for your life, but ultimately you will find it is the single most empowering decision you will ever make."

"There is a reason why a lot of people don’t believe in positive thinking and that kind of thing. It is simply that they do not want to face the fact that their lives are totally in their own hands and they are afraid of the immense potential and results if they do so."

"The amount of effort it takes to fail is the same amount of effort it takes to succeed as far as the mind is concerned. It is your responsibility to provide it with the right seeds of thought."

Wednesday, January 14, 2009

The 18.5 Master Principles for Success

THE RISK IS THE BASIS FOR SUCCESS!


The status of failure is up to you.


The workday starts the night before.








1.- Belive you can: mental posture for success.

2.- Create the Environment.

3.- Have the right associations: Stay away from poison people.

4.- Explore yourself to what´s new: Learn Every day.

5.- Be ready for the day: Be ready every day.

6.- Become valuable.

7.- Have the answers your prospects and constumers needs.

8.- Recognize opportunity: Opportunities are elusive.

9.- Take advance of opportunity: Opportunities are elusive.

10.- Take responsabilities: of actions and decisions.

11.- Take Action: JUST DO IT!

12.- Make Mistakes: The best teacher is FAILURE.

13.- Willing to risk: THIS IS THE MOST CRUCIAL FACTOR.

14.- Keep your eyes on the prize.

15.- Balance yourself: Physical, Emotional, Spiritual and Health.

16.- Invest: DO NOT SPEND.

17.- Stick at it until you win.

18.- Develop and mantain positive attitude.

18.5.- IGNORE IDIOTS.

Tuesday, January 13, 2009

Most difficult for the companies it is to last in the time


Two dangers watch to the company:



1. - To lack identity and Enchantment


2. - To stagnate.




First danger:


The identity corresponds to associate a business, products and services to certain codes or enterprise values. This identity defines the philosophy of the business, the logic of the business, the style, the codes and their coherence. This means to distinguish who purchase my product. Beyond any thing this means to commit itself to make feel emotions to certain group of people. We do not forget that we are human beings! We are mammals that when we are born we often took chest until the year from life! Our nature is animal: We own feelings. Against this: What feelings cause their business? Want that the people feel accepted, who the people feel unique, whom the people feel included? This does not mean that you must study psychology or something thus, only thinks about same you, what pleases to them, how it likes they treat that it, etc. Thinks that its business gives something and that has to do with which somebody values, if it valued it to nobody, its business would not exist?


The identity of a business corresponds to how it is perceived. All the human beings we own perception; the perception is an impression of the things that surround to us. According to our experiences, motivations and tastes all we felt and we appreciated of certain way. In order to achieve the success of his company you must aim to give in the taste the group of people who buy their products and/or services.


At the moment, to enchant and to seduce the people are, more and more, a channeled business more. Each person has clearer tastes, preferences and yearnings. While its business more is oriented to enchant satisfying a certain taste, more identity and success will have.


Each company is able to encounter again its freedom to maneuver and to accede to the longed for position of leader. Instead of to follow the traditional norms: it analyzes clients, it thinks that they are young and It creates new rules please that them and it makes them happy!


The new norms must directly be proportional to the identity of their clients. When creating or re-inventing the company first that you must think it is in those people who buy their products.


Perhaps you never made east analysis previously, but the people whom they buy what you sell, independently that have planned you it thus, are your market. These people found something attractive or useful in your business and behind that it have, doubtlessly, a concept.


The enchantment the enterprise philosophy, the sensation is come off that is desired to give, which is desired to cause. Clearly what it is desired to make feel defines in the measurement that I meet conform my market. This is transformed in the following phrase: What evaluates the company is what they evaluate its clients and vice versa.


You beyond selling your product, sell a taste, an emotion, a sensation, a projection, a yearning, a fulfilled dream. Its business must enchant to a group of people of equal yearnings and preferences at the time of buying a product or service.


Second danger: To stagnate.



Most sensible it is to assume than a business evolves continuously. An incessant movement in its business exists that entails a permanent evolution and therefore a continuous growth. A company is similar to a son, the son is born and begins to grow immediately, is a natural process and irremediable, it does not have reverse gear. The unique thing that is to do is to let grow it.


The parents must like mission orient it, to guide it, perhaps but one of the most important things that a father learns with the son is that this one learns and grows every day, against this most honest it is to adapt to this idea and to help it in his normal process like being human. Perhaps many parents would want to remain in the stage " more adorable" that it is when they are born, that is where has major control exceeds they, the mother them load takes and them for all sides, but this is only a time: you are not owner of your son, your son is owner of itself. Taken to the enterprise plane: you are not owner of your company, this one belongs to a group of people whom it buys, market which you perhaps chose but you go that is to say if it will continue being the same or no, you only must guide his business, to orient it according to which the consumer requires. The concepts keys are indifference and observation. The word indifference is a little deceptive, means indifference and coldness, nevertheless, How I can cause that something works if I let myself take only by the passions? Indifference is a way to arrive at the objectivity; If you are not objective, can throw to lose any company. One is due to know clearly that its business is to the service of the people, the people command, they decide what they want and you must start your business to the service of the people.

Sunday, January 11, 2009

Inventory Stock Control




The level of basic inventory of your business would have to provide an assortment with products and sufficiently great being to cover the normal sales with the company. If these beginning, you will not have present sales or figures necessary to anticipate the necessary product stock, therefore you must project the annual sales based in your plan of businesses.


When you consider the basic stock, you must have in mind the factor of time of retardation that exists between the order and that the products arrive at your warehouse. For example, if the time of delivery of your supplier is of 4 weeks and the product in particular is sold at the rate of 10 weekly units, then you must realize an order before the inventory level lowers of 40 units. If you do not rearrange and you realize that order at the time of which you need stock products, you will be waiting for 4 weeks without the product.


The levels of insufficient inventory mean losses in sales and increase of costs by the required time to remake the order. Operating without raw materials or parts that are vitally important for your productive process it also means operational costs. Your employees will begin to make money to only be seated, because there is no sufficient work to do; when the inventory returns to raise or arrives the order, they will be making more money to work in extra time by reasons for the loss of production by inventory problems. In some situations, you could even get to pay more by those products in cases of inventory emergency.


A form to protect you of being out of stock is creating a safety margin to emit an order. In order to be certainly safety margin it is the adapted one, it tries to think about all the external factors that they can contribute to the delays, like the suppliers that tend to delay themselves or products that are sent from other countries. Once you already have been working by a time, you will have better feeling in the times of delivery and will be able easily to consider your levels of security inventory.



Avoiding the Excess of Inventory.


To avoid the excess of inventory is especially important for the companies with highly cyclical products, such as the clothes, accessories for the home, vacations or gifts. These products have a small time of life and low rotation at the moment at which they are not in fashion. The entrepreneurs who sell equipment without cyclical or seasonal problems, like equipment of plumbing, articles of office or car parts, have the more freedom because it is not so easy that their products are obsolete.


It does not matter of which type is your business, but always the excess of inventory is something that is to avoid. This hill extra money, due to the loans of money to buy an excess of inventory or not to destine those resources for other effects, additionally can have an increase in the taxes due to the inventory without even selling or an increase in the insurance. In fact, a consultant of merchandize esteem that the cost of maintaining products in inventory increases between 20 to a 30% with respect to the original cost of the investment. Buying an excess of inventory also reduces your liquidity, something that we must avoid.


When you are with an excess of inventory, the natural reaction will be probably to reduce the price and to sell it quickly. Obvious this solves the problem of products stock, but also it reduces your return of the investment. All financial projections assume that you will receive the complete price by all those goods. If you reduce the prices in 15 to 25% not only these reducing your inventory, if that also you are losing money that you had considered in your plan of businesses.


Other beginning entrepreneurs can react to the excess of inventory being cautious in the next order of purchase. Nevertheless this increases your risks of having a lack of inventory and of entering to the circle of costs by errors. In order to avoid accumulation an excess of inventory, it establishes these a realistic margin and it only buys what safe that you can sell.



Thursday, January 8, 2009

The business way to innovate.


At the moment, it is much spoken on the creative factor, innovation in the companies and the necessary participation of creative disciplines as the design and the publicity. Most probable it is that this is no longer news for you.


At the moment, companies aside from producing must review how to produce. We are in the era of the qualities. No longer it is the news nor newness, to produce, to sell, to buy, but, how I produce, how selvage, how I buy. What is the new form, the new way to accede to the things. The quality is associated to a characteristic, to a way. Each person has a particular way to live the life, a different perception, to the way of purchase and sale she is related closely to why I buy certain thing or no.


The important thing is to determine the following thing: That something is of certain way has to do whereupon somebody imagined that it could thus be. This sounds very logical. But the truth is that, at present, often it is ignored this idea. The creativity lays the way to us to solve problems imagining new solutions. With this, I believe that it is very important to emphasize that there is no a stereotype of creative person, that is to say, it does not have anything to do the external appearance. There are people who are very formal in their daily life, but which they are considered very "creative" by the activities that they develop or their particular way to see the things. Although there are certain degrees of creativity in the people this characteristic is as a small internal flame who all we have. This small inner fire is developed and it becomes strong according to the amount of experiences that we have, mixes our feelings, our imagination and ours to think. As our brain has more experiences more capacity we must to redefine certain elements associated to our life and our businesses. In this way, the creativity becomes a style that processes our experiences of certain way. To be creative consists of redefining, adapting and to transform continuous to determine improvements.


In this way our brain is enabled to generate new ideas, to contribute new utilities, to solve problems, to enrich previous ideas and to contribute to the progress.


It would be advisable to begin to clarify what is understood by innovation. Generally it considers "innovation" consists of putting a new idea in march. Basically to innovate is to implement a new idea, to take it to the practitioner. The innovation becomes this when an idea is laid down and it is placed in the daily thing.


Innovation is synonymous of change. The opposite of the innovation is the routine.


The difference between innovating and to be creative is the possibility of turning visions, dreams, ideas, utopias, myths and fantasies in fact. The creative being remains in the plane of the ideas; however, the innovator turns in fact his changes, his new dreams and ideals.


What wishes a company? to be developed, to take the opportunities, to anticipate, to innovate diminishing the risks, of defining itself, in other words, to prevail. The company has a permanent movement. On the other hand, the world of the companies is totally diverse, some are more complex than others following their type of market and a product range; nevertheless, the company in generic form, always has the same yearnings: to have identity, to innovate, to be diversified and to be different themselves.


No longer is to sell products, is to satisfy the demands, to forget the logic the product to dedicate itself to those of the people.



An economy professor once said: " The clients are wining". The client is a gain. A person who buys her products and their services is the best utility than you can hoard.


In fact, to produce is not what causes the boredom of the people who complain the lack of variety in products, the problem is TO REPRODUCE, to exhaust this resource to the maximum: The problem is to imitate, to copy, to insist, for example, in a rectangular refrigerator. The idea to always produce must go accompanied to generate something different.


If the companies want to sell they must surprise the people. Not purchase in the same way that is breathed, is not an automatic function. TO BUY IS TO CHOOSE, TO SELL IS TO CAPTIVATE!


The act to always consume has been watched like a superficial and rational act what corresponds to a real prejudice. When you buy something you look for something identifies that it, therefore the industralist or the one that sells must of knowing how to enchant and to be relaxing, and nothing else it attracts that the different thing. The time of the stereotypes corresponds to the past century? nowadays the different thing is valued to the double.


From this point of view, as you produce? What characterizes their production? If You do not produce, you do not have a factory and only sells products: What thing Has reproduced? It is a good imitator? It has served to him to copy? I invite to look for it new ways to arrive at its client. It remembers that all we can get to innovate in our companies, analyzing from the distribution way to new associated services its products.


The society and the culture, are all the answers there. History says about the existence of good objects conceived by social causes. The teflon, for example created for a coating in the space technology, found application in kitchen articles, like covering for frying pans and pots that it prevented that the food stuck at it. The technology that facilitated the development of Internet, was created like answer to the necessity to design a network of computers able to resist bombings. Other many products must their origins to the needs during the Second War, like the Zippo lighter. The man is to the service of the man and all the answers to satisfy it are in him.


Analyze yourself, what things enjoy, what things value, which are their fun. Many of the replaced ones are in the honesty and the good sense of our self. What things can give to their clients so that these are happier? Think it.


Tuesday, January 6, 2009

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Systems required by all the businesses for the optimal efficiency.


The following section includes a list of the typical systems that the successful businesses must have. In some cases the required system can be defined of way different from the way in which it appears in the list, but anyway is necessary for the operations of the business. For example “development systems of the product” could be “procedure to provide services” in an organization dedicated to the services. Although the specific details can differ, the basic elements are the same. Both require that the business develops the product (or service) that in last instance will be offered to the consumers.


In the case of franchise exemptions or the organizations of market in network, many of those systems are provided of automatic way. By the cost of the franchise or membership of the organization of trade in network, they will provide a manual of operations that describes the systems provided for its business. That causes that the type of “pre-elaborated” businesses is so attractive for much people.


If you wish to create your own business, reviews the list of systems. Although already it is carrying out many of these functions, is possible that it has not defined them as separated systems. While it can more formalize his operations, more efficient it will become his business.



Daily operations in the office system:


  • To answer the telephone and the system of line of long gratuitous distance.
  • To receive and open the mail.
  • To buy and to maintain articles and equipment of office.
  • To send faxes and electronic mails.
  • To take care of the needs of shipment and the reception of packages.
  • To create endorsements and to file the information.

Development of products systems:


  • Product development and its legal protection.
  • Development of the packing and additional material (for example catalogs)
  • Development of the process and method of manufacture.
  • Development of the process of obtaining of manufacture costs.

Manufacture and inventory system:


  • To select to the suppliers.
  • To determine the guarantees offered by the product or service.
  • To fix the price of the product or service.
  • To create the process of new orders for inventory production.
  • Reception and storage of the product like inventory.
  • I collate of physical inventory and registry of accounting.

Processing orders system:


  • Rise and registry of the orders by mail, fax, telephone or Internet.
  • Attention and equipment of the orders.
  • Shipment of the orders.

Invoicing and accounts to receive system:


  • Invoicing to the clients by the orders.
  • Reception of the payments by the orders and accreditation to the clients by the payment (or in cash, check, credit card)
  • Beginning of the process of collection for the pending accounts to receive.

Clients service system:


  • Procedure of return for reception in inventory and reimbursement to clients.
  • Answer to the complaints of the client.
  • Defective product Replacement or fulfillment of another service of guarantee.

Accounts to pay system:


  • Procedures of purchase and required approvals.
  • Process of payment by provisions and inventory.
  • “Small Box”, or money for smaller payments.

Marketing research system:


  • Creation of a general plan of marketing research.
  • Design and production of promotional materials.
  • Development of prototypes.
  • Creation of a publicity plan.
  • Creation of a plan of public relations.
  • Creation of a plan of direct mail.
  • Development and maintenance of a data base.
  • Development and maintenance of a site in Internet.
  • Analysis and pursuit of statistics of sales.

Human resources system:


  • Procedures of hiring and agreements with the employees.
  • Qualification of the employees.
  • Process of list and plans of benefits.

General accounting system:


  • Administration of the process of accounting with daily, weekly, monthly, quarterly and annual information.
  • Administration of cash that assures that the bottoms will be available for the case in that it is necessary to borrow in the future.
  • Elaboration of the budget and prognosis.
  • Consignment of taxes on list and retention of payments.

General corporative systems:


  • Rough draft Negotiation, creation and contract execution.
  • Development and protection of the intellectual property.
  • Administration of the needs and cover of insurances.
  • Consignment and payment of federal, state taxes and of other jurisdictions.
  • Administration and storage of registries.
  • Handling of relations with investors and shareholders.
  • Obtaining of the legal security.
  • Planning and administration of the growth.

Management systems of physical space:


  • Conservation and electrical and telephone design of systems.
  • Planning of permissions.
  • Granting of licenses.
  • To guarantee the physical security.

It is possible that it wishes to register his operations in a manual of policies and procedures. This manual can become a invaluable reference for its equipment. When creating the manual, will find forms to cause that their operations are more efficient and to improve its yield. You also will have taken a step to be an owner of a successful business more.