Murray Priestley

Why does everyone make it so bloody complicated when the solution to this global crisis is sooo simple?

Look at how simple it can be….

It is August. In a small town on the South Coast of France the holiday season is in full swing, but it is raining so there is not too much business happening.

Everyone is heavily in debt.

Luckily, a rich Russian tourist arrives in the foyer of the small local hotel. He asks for a room and puts a €100 note on the reception counter, takes a key and goes to inspect the room located up the stairs on the third floor.

The hotel owner takes the banknote in a hurry and rushes to his meat supplier to whom he owes €100.

The butcher takes the money and races to his supplier to pay his debt.

The wholesaler rushes to the farmer to pay €100 for pigs he purchased some time ago.

The farmer triumphantly gives the €100 note to a local real estate agent who gave him his services on credit.

The real estate agent goes quickly to the hotel, as he was owing the hotel for his presentation room use to sell to clients.

At that moment, the rich Russian is coming down to reception. He informs the hotel owner that the proposed room is unsatisfactory. He takes back his €100 and departs.

There was no profit or income. But everyone no longer has any debt and the small townspeople look optimistically towards their future.

COULD THIS BE THE SOLUTION TO THE GFC ?

Murray Priestley, CEO of the Lifestyle Education Group.   http://www.lifestyletrader.com.au/

Ever wanted to ditch your job and go try something new to make a buck?

Many people try trading (stocks, forex, opions & commodities) – which is a very valid way of making a very good living as evidenced below.

Here’s what the worlds top funds managers earnt in arguably the toughest year for the markets, 2008.

1     James Simons     Renaissance Technologies Corp.     $2.5 billion
2     John Paulson     Paulson & Co.     $2 billion
3     John Arnold     Centaurus Energy     $1.5 billion
4     George Soros     Soros Fund Management     $1.1 billion
5     Raymond Dalio     Bridgewater Associates     $780 million
6     Bruce Kovner     Caxton Associates     $640 million
7     David Shaw     D.E. Shaw & Co.     $275 million
8     Stanley Druckenmiller     Duquesne Capital Management     $260 million
9 (tie)     David Harding     Winton Capital Management     $250 million
9 (tie)     Alan Howard     Brevan Howard Asset Management     $250 million
9 (tie)     John Taylor Jr.     FX Concepts     $250 million

More info

This is a great video that explains in a visual way, what this crises is really about.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Enjoy,

Murray

The main idea of being in business, whether on-or-off-line, is to make a healthy profit that not only covers your overheads, but it also lines your bank account. And, the only way to achieve this is by putting your tactical business combat gear on, strapping your standard issue communication device to your back, and being prepared to crawl on your hands and knees through the marketing mine field to find business strategies and tactics that work for you rather than against you.

Here are some strategic manoeuvres to get you past the first of those marketing mines:

1.    Increase Your Business Marketing – Have you heard of the old adage that states, “If it isn’t broke, then don’t fix it?” If you haven’t, then you have now, and if you have, then take heed. This adage is not relative to business. Many business owners who have heard this adage and believe that it applies to them become complacent or they are fearful of change and testing new ideas and technology, and this can be their greatest business mistake. By thinking innovatively and constantly looking for new and exciting ways to improve your business, you are effectively looking at new marketing techniques that will improve sales and also increase your turnover. When considering new marketing techniques, look for methods that speak directly to your customers and that generate a higher conversion rate than you have previously witnessed. Always strive to better yourself so that your business continues to grow rather than stagnate.

2.    Define a Single Product as Your Most Profitable – Identify which of your main products has the charm and charisma that new and, possibly, existing customers are most likely to be interested in, and make sure this caters to the target audience that you are hoping to attract. This product needs to represent excellent value, be consumer-centric, and be available in a safe, risk-free environment so that your consumers are instantly attracted to this product and are willing to purchase it without additional persuasion.

Furthermore, when focusing on first-time customers, look for a main product that your business sells, which has a proven track record to use as your draw-card. A product of this calibre will then enable you to offer a new customer a positive shopping experience that allows them to justify their purchase and one that they find personally rewarding so that they will be back time and time again.

3.    Leave a Lasting Impression – In business, it is vital that you create a positive impression for your customer from the moment you meet them because if they feel uncomfortable in any way, then they will not buy from you.

Therefore, review your advertising, brochures, signage, web site, and business cards. Also, look at your business presentation, such as uniforms, how your reception area is presented, and staff phone mannerisms to ensure that these are professional. If these aspects do not speak volumes in a positive way to your potential customer, then you will lose sales.

4.    Converting First-Time Customers into Life-time Customers – The first sale is always the toughest because the consumer is taking a gamble that your business will do the right thing by them and offer them value for money with the least amount of effort on their part. If dealing with you is stressful to them or the customer cannot see the value in purchasing from you, then they will not become a repeat customer, and this makes their acquisition expensive in terms of marketing. However, if the new customer returns continually and also tells others about you, then your customer acquisition cost will decline and your profits will increase.

When we sit and consider the changing face of business marketing since the introduction of Web 2.0 applications, such as YouTube, blogging and social networking, and just how quickly the Internet has evolved into a complex and intricate part of everyday business, we are often left in a cloud of cyber dust, trying to fathom exactly what these tools are and how to use them to better our business.

In fact, if you are not hip-and-happening and understand the latest in technology, the chances are that you are going to be covered by that settling dust and you may never have the opportunity to dig your way out to compete in that ever-growing global economy.

Therefore, in order to help you dust-off and find your footing in what many are referring to as the ‘Attention Economy,’ I am going to explain exactly how we came to this point in business and how we need to adapt, change, and learn to embrace Web 2.0 applications in the future, so that we can enjoy a healthy business growth and increase our market capacity.

Technology growth, business marketing, and Web 2.0 go hand-in-hand and generate the ‘Attention Economy.’

With the upsurge of technology came the development of the humble personal computer and an increase in entertainment options, such as online gaming, movie and song downloads, and online radio stations—all of which saw a decline in mass marketing.

This, in turn, saw businesses opt for direct marketing as a means of generating additional revenue and increasing customer acquisition rates as their reach went from a local or national marketplace to a global, which effectively operated around the clock—7 days a week, 52 days of the year.

Search engines began to grow and became a popular way for those seeking information to obtain it and find exactly what they needed. This then allowed business—large and small—to compete with each other and provide their goods and services on a worldwide front.

The growth of competition saw more niche markets created along with the number of communication channels, and, as the Internet’s content and capacity grew, some individuals and business owners were left behind in the ever-consuming trail of cyber dust.

This then created a need for experts as the business owner had no understanding of new Internet tools and how best to use these to advance their business. Furthermore, the business owner sought information on how to increase their profitability and generate a far greater income in order to acquire the lifestyle they desired.

The need for information then snowballed and the number of information products on the market grew significantly with the information business becoming extremely competitive. Information overload was eminent as the snowball began to melt with irrelevant information from phony information gurus who delivered little or no constructive value to the business owner who craved knowledge.

The proliferation of information, entrepreneur confusion, and a need in business to be successful by acquiring information from competent advisors then created what many refer to as the ‘Attention Economy’ factor, which sees business marketing rules for growth, effectiveness, and personal performance changing.

Web 2.0 has effectively altered the face of business marketing by the introduction of the lack of ‘Attention Age.’

A lack of human attention has been generated due to the ever-increasing surge of new technology, and those businesses that understand the magnitude of Web 2.0’s impact on society and culture will profit handsomely, providing that these businesses learn to focus.

The main areas you need to focus on in order to minimise the cyber dust created are as follows:

1)    Know Your Business – Always seek out advice when you need it, so that you and your business can grow by finding effective solutions to your problems as they appear. As business owners and individuals, we believe that we know ourselves very well and this can sometimes be our biggest mistake. It is impossible for you to master everything on a business and personal front. Therefore, it is important to realise when you need help and ask for it before the cyber dust covers you.

2)    Embrace Information – Engage in activities that stimulate and enhance your knowledge, and when you find interesting information, always keep it just in case you need it later on. Use information to your advantage by being concise about the information that you draw upon, so that you do not spend hours on research.

3)    Become Technology Savvy – There is a plethora of gadgets and tools currently on the market that enable businesses to grow and effectively manage time. However, it is easy to become too engrossed in new technological developments. Therefore, it is important to know what products you need to advance your business and utilise this technology so as to harness its power. Do not allow the plethora of gadgets and tools to become a distraction that erodes your business performance.

About the author

Murray Priestley is a business growth advisor, author, speaker, consultant, and the Managing Partner of Portofino Asset Management.  Visit his blog and signup free to get tested business building strategies and profit-boosting tips by email, along with blog updates, news, and more!  Go now to http://www.murraypriestley.com.  For a no-obligation Hidden Profits Assessment of your business go now to http://www.systemised.com/assessment.