Wealth Formula That Can Never Fail

One question that keeps coming up in my interaction with some of my readers during the out-going year is, “What can I be doing to earn steady income and stop depending on people?”

Each time someone puts this question to me, it gets me thinking. I turn the question around and ask, “Is there a wealth creation formula, one that can never fail? If there is, what is the formula? And how complex is it? Can just about anyone who is determined do it?”

After months of deep reflection and extensive research, I believe I know the answer to those questions. Yes there is, indeed, a wealth creation formula, one that can never fail!

Before I tell you what the formula is, let me quickly explain the word formula because it holds the key to your having a clear understanding of what I’m trying to share with you here.

Formula, according to one online dictionary, is a set form of words, as for stating or declaring something definitely or authoritatively, for indicating procedure to be followed, or for prescribed use of something.

In other words, it’s a fixed or conventional method for doing something; a rule or principle, a recipe or prescription.

With that definition, you get the idea that a wealth creation formula is a set of principles or recipes. So now what is the formula? It’s a four-part process which, when combined, makes it possible for you to create wealth.

Here are the four parts:

1. Make GOD the foundation

2. Find a way to start earning legitimate income at a regular frequency and discipline yourself never to spend it all;

3. Learn the art of how to get paid over and over for your service and

4. Focus absolutely on steps 1, 2 and 3 by finding a way to do it better and better repeatedly.

That’s the formula. Now, let’s break it down. The first part is straight-forward, isn’t it? What it means is that you’re to make a decision to fall in line with what GOD says. That implies that you must know what GOD said and can align yourself with it.

The best way to achieve this is to become a serious student of the Word of GOD and, as you get to know what the Word says and be committed to doing them, you are laying a solid foundation for wealth creation.

For example, if your GOD is the same One that I’m serving, then you will be a committed hearer and doer of what GOD has said which are recorded in the Bible. A devoted and excited doer of the Word is a sure candidate for enduring wealth.

That person just cannot fail to have all round success. This is how the Word confirms that assertion: “Do not let this Book of the Law depart from your mouth; meditate on it day and night, so that you may be careful to do everything written in it. Then you will be prosperous and successful.” Joshua 1:8.

That should make your heart sing for joy if you’re a hearer and doer of the Word. Why? Because you’ve just heard Him say it [hearer] and if you now go ahead and do what the Word says, you have become a doer.

Then you will qualify for what the Word promised. And my GOD will never deny Himself. He will do whatever He has said in His Word. Nothing is too hard for Him.

Part two of the formula says to find a way to start earning legitimate income at a regular frequency and never spending all your earnings.

Usually, this does not mean earnings from a dream job or a top flight career. We are here talking about someone who is probably jobless and has no clues about where the next meal will come from or someone whose total income in a month is “nothing to write home about.”

The temptation for people who find themselves in this situation is to either get so discouraged and despondent that they give up on life.

I have to admit that this is a very challenging condition. But if you can just brace yourself up and do what I’m about to recommend, you will not only find your feet, you will also escape from the shackles of poverty.

The thing to do, to overcome this challenge is simply to get up and find a valuable service that you can render for somebody for which you will be paid. And, whatever that thing is, make sure it’s legitimate.

Then when that effort starts to generate some income, go a step further and discipline yourself not to spend all your earnings no matter how meagre it may be.

This is a very crucial aspect of the wealth creation formula. Most people don’t get past this stage. They either get stuck with the menial job they are doing that is giving them steady income or they look at the money they are earning with disdain, instead of thanking GOD for it.

But if you understand how this formula works, you will have a different mind-set. First, you will realize that this is a temporary stage in your life. It’s not a place you want to stay too long at.

All you want to do here is to have some money coming in which can provide you with some food to eat [not necessarily a regular satisfactory meal] as well as have some left to invest on self development.

For your investment in self development, be careful in making your choice. Here is a secret I want you to learn. Acquiring a specialized skill which you can master very well and use your knowledge to serve others is the best way to go.

For example, you know for a fact that there are some things that people and companies will always pay other people to do for them. Choose one of those things that you like, learn how to do it and then work at being the person who renders the service better than anyone else.

If you can discipline yourself to do this, you are halfway out of the poverty zone. Before I go to the third part of this formula, let me emphasize another thing. Earlier on, I hinted you about the danger of not being grateful for the meager income you’re earning from doing menial jobs at the second stage of the formula.

Well, you really ought to be careful about it. If you allow lack of gratitude to creep into your heart, it will so consume you to the point of not letting you have the desire to engage in self development. If you allow that to happen to you, you will be in deep trouble. So watch out!

Okay, now you have crossed that first dangerous hurdle where many get knocked down. In the third part of the formula, your goal is to hone in your skill in order to be getting paid over and over for your service.

What exactly does this mean? Remember that you now have a skill? And that you have mastered that skill to the point where you can position yourself as the one that can do it better than anyone else? Now is the time for you to set up a business based on that specialized skill.

Being the number one in your area of specialty does not automatically translate to your business spinning off profit once you opened shop. This is another trap that often trips people that are just starting in business.

When most people start their business, they expect it to take off with a bang. And they can’t wait to start banking their profits. But it hardly ever happen that way. And when it doesn’t, most people lose interest in the business and wander off to other things.

To get this part of the formula right, you have to learn to exercise patience. And I can tell you this from experience that this stage of the process leading to your financial freedom could be even more challenging than when you had to do menial jobs to generate cash flow.

A combination of all the lessons you learnt in parts one and two of this formula are what you will rely on to help you overcome the winter season you will encounter in the part three of the formula.

There will be a new demand on you to learn other skills, especially skills like how to run a successful business, how to market your products and services, how to manage human and material resources and how to attract customers and make them happy for life.

Your ability to learn these things and excel in them will determine how successful your business will be. But if you persevere and put everything you learn into practice, not discountenancing integrity and ethical behaviour in your business, you will get to a place where that profit you thought would not show up or was too late in coming will be the order of the day.

When you get to that place, all you will ever need to do will be to be applying everything you learnt in steps 1, 2 and 3. But this time, you will be doing it better, smarter and faster. And as you keep doing that, you will be growing bigger and bigger.

That is my formula for creating wealth that can never fail.

How to Create Your Own Product 2 – Setup and Marketing Approaches

MODULE 1

CHAPTER 12

How to Create Your Own Product 2

– Setup and Marketing Approaches

1.0 Introduction

2.0 Objectives

3.0 Main Content

3.1 Definition of Business Model

3.1.1. Types of Business Model

3.1.2 Email Marketing (Freemium Mixed Model)

3.2 Experts and Friends Appraisals

3.3 Payment Processor

3.4 Traffic, Traffic, Traffic

3.5 Launching Your Product

3.6 Two Important Decisions

3.7.0 Selling on Your Own Personal Website

3.7.1 Benefits

3.7.1.1 Be Your Own Boss

3.7.1.2 Cashing in on Your Virtual Authority

3.7.1.3 Ever-flowing Streams of Residual Income

3.7.1.4 More Opportunities

3.7.1.5 Top Secret Reason Why You Should Create Your Own Product

3.7.1.6 Expert-In-The-Making

3.8 Challenges

3.9 Selling Your Products on Third Party Websites

3.10 You Are In For the Long Haul

3.11 Rinse and Repeat

4.0 Conclusion

5.0 Summary

6.0 Assignment

1.0 Introduction

I covered most parts of this process in the preceding chapter. I purposely did that so I can have enough time and space to discussed other critical factors that may affect the profitability of your digital product (s).

The area so far covered include:

  • The Process
  • The Act and the Art, etc.

The following areas are to be covered here in details:

  • Your Business Model
  • Your Long-term Strategy
  • Friends and Expert Appraisals
  • Payment Processor
  • Product Launch
  • Traffic, Traffic, Traffic
  • Two Important Decisions
  • Among Others.

2.0 Objectives

At the end of this ecourse, you will be able to:

  • Know the different methods you can use to market your information product in online marketplace
  • Choose the best method to market your information product for higher profits
  • Choose the best method to market your information product for better control

3.0 Main Content

3.1 Definition of Business Model

Business model is the approach you are using to run your own business, in this case selling your own information product.

There are many definitions of the phrase 'business model'.

It is only one of them that I am going to use here because, it is not too academic for our practical use.

That one is the definition provided by Investopedia which states inter alia:

'A business model is the way in which a company generates revenue and makes a profit from company operations'.

3.1.1 Types of Business Model

In this case I want you to decide ab initio on which of the following models you are going to use to do your business:

  • Information Marketing (Mixed Soft / Hard Selling)
  • Email Marketing (Freemium Mixed Model)
  • Blogging (Mixed Soft / Hard Selling)
  • Guest Blogging (Mixed Soft Selling)
  • Forum Marketing (Soft Selling)
  • Niche Site Model
  • Review Site Model
  • There are many more models that could be listed …

You need to get used to one model and stick to it for a while, when you have become conversant with it then you add another one and so on and so forth.

For this reason I will only review only one model here.

3.1.2 Email Marketing (Freemium Mixed Model)

This is the best, simplest and possibly the fastest model to set up your online business and run it into 6 or even 7 figure in the shortest possible time, initially using free and later even paid resources to scale it up for higher profitability.

Running your business on this model involves 5 simple steps namely:

  1. Traffic
  2. One-page website
  3. Autoresponder
  4. Thank You Page
  5. Broadcasting (to email or phone sms)

You can find details of these steps here.

3.2 Experts and Friends Appraisals

Whichever model you choose to run your business on, do not forget to test-run it by yourself as well as using some experts and your friends, before opening it up to the public.

The experts are people with impeccable experiences in your chosen field who are willing to mentor you for success. They will later become your business associates (Joint Ventures) or provide some revered testimonials that will positively impact on your profitability.

On the other hand, you are going to sell to ordinary people like your friends and relations, thus their own side of views can give you some insights that will make your product to be readily absorbed in the market.

So give a sample copy of your own newly created product to them and request for their assessment and testimonials.

3.3 Payment Processor

The next thing to consider is how you intend to collect your money from the sales you make for your information product.

Today in most parts of the world, you can use online payment processor to sale any kind of product on the internet. This was not the case ten years ago when I first began this business.

Just Google for payment processor and you will have enough to choose from, ranging from PayPal, Shopify, WooCommerce, 2CheckOut, Stripe, AuthourizeNet, Amazon Payment, to Google Wallet.

The setting up process is getting easier by the day. Also the instructions on how to integrate them to your website are available on each site. Go there.

3.4 Traffic, Traffic, Traffic

Even when you plan to use other marketers to sell your products as affiliates, you will still need to do marketing by yourself to some extent. This is advisable so that you can get some proves to convince your affiliates on the marketability of your product.

For most beginners with little or no budget, using social media is the preferred way to go. This should be combined with other methods of free or inexpensive traffic like EzineArticles.

I will write more on this in another chapter of this ecourse.

3.5 Launching Your Product

The most important thing to do before your product launch is: planning.

Make a detailed plans of how you are going to swing the market momentum to your side to ensure the profitability from your product sales.

Such plan may include but not limited to:

a) Plan your launch date to start as early as possible, ie early planning

b) Get the Big Wigs of the Industry involved – possible make them joint venture partners, give certain percent of your profit.

  1. Make it easy for many people to learn about your product – Social Media
  2. Make Your Product Mobile-Friendly – today the mobile web holds the market sway, it will be foolhardy to ignore it
  3. Make it an Event
  4. Create a Suspense towards the launch date to heighten desire and expectation. This has been proven to increase sales on the launch date.
  5. Take beta pre-dated orders at a reduced price
  6. Use a Press Release
  7. Focus on your Avatar / Persona and not your product
  8. Create Your Universal Selling Point (USP)

There are other details on product launches here.

3.6 Two Important Decisions

There are 2 important decisions that you have to make after your new product is ready for sell. These are:

  1. To sale it on your own personal website or
  2. To sale it on a Third Party Website

3.7.0 Selling on Your Own Personal Website

If you are selling on 3rd party websites, most of the steps discussed above will be a walkover for you, as the company will do them on your behalf.

However there are some benefits that you will also miss for doing so.

3.7.1. Benefits

Such benefits include those listed below among others.

3.7.1.1 Be Your Own Boss

Selling on your own website controlled (managed, hosted) by yourself is the best way to become your own boss. You set your prices, you set your targets, you set your commissions, you set your own time of work, and you set and plan for the level of profits that you want to make.

Have you seen any other business that is sweeter than this?

You are really your own boss in the truest sense of the word! You are in full control and it is you that determines all of your monetization methods.

Building your information product is actually the easiest way to achieve everything that you want in life as well as helping others to realize their destinies and their dreams.

But you will miss all these and subsequent ones if you are selling on third party sites.

3.7.1.2 Cashing in on Your Virtual Authority

As a product owner you gradually build up your Goodwill over time. Of course I suppose that you and everyone else know the importance of a Goodwill. If you want to know more, ask the corporate giants and they will tell you that their Goodwill is worth Billions of Dollars.

And that is worth relying on over time as a product owner. To develop a high-value Goodwill, you need to develop a good product and not a scrap, as well as use your blog, vlog and social media skilfully.

3.7.1.3 Ever-flowing Streams of Residual Income

Residual income is type of income that you don't regularly and actively work for it to provide a continuous cashflow. You only set up and forget, and the money keep flow ceaselessly to your bank account.

This is different from employment income that you have to work for it on a daily basis.

For your own information product, the initial work may be intensive, but subsequently, you only update it once in a while to keep up with trends in your industry.

The work is decrementally negligible while the product is incrementally profitable.

This means if you have 2 or more products, you can quickly attain a special status: unemployable.

3.7.1.4 More Opportunities

At this level of success you will be open to opportunities to joint venture with the captains of the Industry. And do not be surprise if you thenceforth experience not just success, but astronomical success: unlimited income.

Deals website like Groupon, Bloggers and other marketers with large Lists when properly targeted will open up a whole new world of internet marketing for you full of unlimited pleasant surprises.

3.7.1.5 Top Secret Reason Why You Should Create Your Own Information Product

– Affiliate Program. This is one main reason why you should own some information products online. When many people are selling your products for you, you will surely experience income explosion in your own business.

I have already noted elsewhere that affiliates bring to your business their own expertise as well as their large lists of free and targeted traffic. These are great assets that will have great impact on your business.

Setting up an affiliate program is getting easier by the day. Software like iDevAffiliate and Post Affiliate Pro are almost turning the process of selling your own products through affiliates to an all comers' affairs.

3.7.1.6 Expert-In-The-Making

Everyone see you as an expert when you write a book. Even if you are just beginning, it is only you and your spouse that know that secret – that you are only a beginner.

If your info product is professionally written (even by a Ghostwriter or Ghostworker as they are often referred to) it opens up several windows of opportunities for you. These include but not limited to Conference Speaking, Guest Blogging, Joint Venturing, etc.

Purse for a while and think on these avenues, it is only expert that are invited to participate at such meetings. But even one product owned by you can open up those opportunities for you. As a newbie when they begin to come, do not be afraid to accept those invitations and confidently perform your work.

The basic truth is that even with this ecourse alone, you know more that 95% of your audience, you are already an expert (at least in the making).

3.8 Challenges

But there are some challenge along the way such as:

– having to deal with Customer Service and

– the Learning Curve involved, etc.

It is for these very reasons that some people prefer using third party websites.

3.9 Selling Your Products on Third Party Websites

There are so many third party websites that are waiting and ready to sell your own product for you. They include but not limited to ClickBank, Send Owl, JVZoo, Payspree, Commission Junction, DPD, Post Affiliate Pro, iDevAffiliate, and others.

You can also sell at Amazon by creating your product in their special format known as Kindle Book to be downloadable and readable in their special device known as the Amazon Kindle Device.

The main advantage all of them have are:

  • the setup speed (some are free, others one-time payment)
  • their wide array of experienced affiliate marketers,
  • payment processor
  • professional customer service and
  • free promo

But they will take the control of most aspect of your business from you. They can also de-list you at will and without any specified reason (s).

I want to state here that for obvious reason, it is better to learn and use both systems to maximize your profits over time.

3.10 You Are In For the Long Haul

When you have a product in the market, you are in this business for the long-term benefits.

What you do now will surely hunt you in the future for good or bad. So be a man of your own word, deliver on your promises and when not possible give cogent reason (s) as soon as possible and make refunds where applicable.

That is: – Transparency.

Over time this will result in positive reputation and a good public image for your business. These are the souls of Internet business.

Notice that most people that you deal with in this business do not know you in person. They only act on trust, please do everything possible on your side to preserve that trust.

Once beaten, twice ashamed, I think that's a valid saying here.

As you might have suspected this is not a get-rich-quick kind of business. So if you were looking for such type of business, please dumb this one and look elsewhere.

However if you can pull yourself through the learning curve, I can assure you that there is no other business that can pay you returns on your investment that is as high as this one.

You will be unemployable!

3.11 Rinse and Repeat

The process of creating a digital product is as simple as that. Well, as you become more experienced, you can go on to add the fancies and jingles, but for someone who wants to make money as soon as possible, this is all that you will need to set up a successful business.

As the profits roll in, you can then think of other ways to upgrade your product for greater profits. You can also expand to create products in others niches with the sound reputation you built from your initial market niche.

Never be discouraged if you don't make much money with your first info product. You only need to make sure that it is as solid as gold in terms of quality.

Down the road you will discover that it was the launchpad to your newfound success, a major milestone that shot you to limelight.

4.0 Conclusion

With a good product to sell, you need a little knowledge of market research, SEO and copywriting to launch out profitably. Some of them have been covered while others will soon be covered in other parts of this ecourse.

5.0 Summary

This is the concluding part of what you need to do to set up the information product you created and sell profitably.

Two powerful software (websites shown as images) were also introduced to simplify the process for you.

Next, you will need to create and set up a salespage and that is what we will discuss in the immediate chapter of this ecourse

6.0 Assignment

By now you might have started this business using Affiliate Product. This is important so that you can be making money along the way while working on your new product.

Please go over the last two chapters again and start experimenting on those ideas in your mind.

Yes, you can!

Innovations, Entrepreneurship and Profit: How They Are Tied Together

What is Entrepreneurship? When we think of entrepreneurship, what immediately comes to mind are businessmen, and small scale enterprise or businesses. Actually, the definition of entrepreneurship varies depending on the perspective used. It may be a field in business or it may be an activity in which people engage in. Describing the processes involved within it defines what entrepreneurship is. Understanding and seeking innovations, like improving an existing product line, is one of the processes in entrepreneurship. But is not merely innovating, this process should be taken a step further for it to be considered as part of entrepreneurship.

The step further would be to transform the innovation into economic goods, something that will generate income. In entrepreneurship, an individual or a group of individuals identify a business opportunity by finding a prospective or valuable item, product or activity that can be utilized for business and generate sustainable profit. When the market value generated by the business opportunity or innovation is greater than the value of the value of the combination of resources used to create the opportunity or innovation, then there is profit. Profit occurs when the value of the resources used to create a product is increased through innovation.

The definition of entrepreneurship lies in a single but most important concept: discovery. Without discovery and innovation, there will be a stagnation in the market economy as there will be no improvement. Entrepreneurship paves way for economic growth, as it supports economic growth through its discoveries and innovation. Through entrepreneurship, new and better things, processes and systems are created, recreated and uncovered. The creation or discovery does not need to be isolated to new product lines or existing product lines. It can also be applied to methods of production, market, resources or an organization or even an industry. Entrepreneurship can provide solutions for economic stability as it continuously seeks improvement and development of our resources to give them a greater value.

Let’s take the following situations as example of understanding what entrepreneurship is. Check out the following situations:

· A stay at home mom who knows how to cook delicious Indian cuisine starts to sell them to the teachers and staff of the nearby school.

· A downsized employee found another use for old vehicles, designs and fixes them, and made a playground for her pet day care center.

· A scientist discovers a new element but does not attempt to identify practical uses for it.

All of the situations except for that of the scientist show entrepreneurship. Remember that entrepreneurship is discovering or improving new product lines, market, processes, resources or organization. The stay at home mom found a new market in her neighborhood, the nearby school, and she took advantage of it to generate income. The downsized employee developed a new use for old vehicles. The situation with the scientist cannot be considered as entrepreneurship. There was no attempt to generate a market value for the new element as the scientist did not attempt to identify its practical uses. If he created a product with the use of the new element, then that could be identified as entrepreneurship.

Building Your Business – Are Politics and Peacemaking Mutually Exclusive?

It is easy to assume that all politics and peacemaking can be mutually exclusive. The truth is that there are many situations that in order to keep the peace, politics may be involved or even get in the way. Where there is a dispute of uncommon interests, whether it is to gain control, power or leadership that is politics. God teaches us on how “we should be” if we are to be His children. As human beings created by God we are asked to be images of the Father. In doing so, we bring peace to ourselves and to others.

In many organizations, there are internal conflicts, and even key leaders begin to make their case and use politics in what they hope may either bring the peace or put an end to what they believe is disrupting their peace. Vice Presidents will threaten other departments by flexing their control should those departments not do as they are told. When we discuss politics, we discuss the policies and processes that are brought up for debate. These same policies dictate the path towards peacemaking as a societal whole. But it is also important to remember that it also brings about additional conflict within the groups and hence another opportunity for peacemaking. Take a look at what took place in Ireland in 1997.

“In August of 1997, less than a month after the second cease-fire took hold in Northern Ireland, thousands of Presbyterian pastors and lay leaders gathered in Belfast to make a, historic public recommitment to peacemaking between Protestants and Roman Catholics.

Michael Cassidy, a South African evangelical influential in producing open elections and the end to apartheid in South Africa, challenged them to a new level of personal responsibility for bringing about reconciliation and tolerance. At his invitation, nearly two-thirds of the 3,000 in the audience stood up to signal their pledge to peacemaking. Earlier this year, the Anglican Church of Ireland took similar steps when its general synod voted to condemn the presence of sectarian views within their denomination and to conduct an inquiry to determine how severe the problem is” (Morgan, 1997).

Without politics they would not have taken the additional steps to really determine what the problem was and rededicate themselves towards peace. But there are other examples where politics and peacemaking are not mutually exclusive. Take the military for example. Our leaders wage war on other countries that have different political views than ours. We are sent to war using force. And only as the victor can we then define what we believe peace to be. Whose war were we fighting? Whose definition of peace were we attaining? Ours, the people, another nations?

Achieving "Plan B" Through Individualpreneurship – The Notion Of An Individual As An Enterprise

What is entrepreneurship?

Entrepreneurship is a competency (set of knowledge, skills, and activities) required to start, develop, and assume risk for an enterprise. An entrepreneur is an individual who organizes, operates, and assumes risk for an enterprise with the intention of transforming innovative ideas in products and/or services for a profit.

An enterprise is an undertaking for a prize or cause. It is a group of activities intended to produce income organized for:

  • Profit as a business of any size and type: unincorporated or incorporated; one or many entities, of which one is designated as the “holding entity” in a multi-entity structure; and such that one enterprise can incubate another
  • A not-for-profit association, such as a public charity or a private foundation
  • A government agency

When an enterprise is referred to as an entity, the reference is specifically to the holding entity, unless otherwise specified. The term “not-for-profit” is generic; the term “non-profit” means an entity that has been approved by a taxing authority as being exempt from income tax. “Not-for-profit” does not mean “not-for-revenue.”

As a discipline, a business delivers products and/or services to a customer for a profit. As an entity, a business can be:

  • Sole proprietorship (individual)
  • Partnership (pass-through to individuals): general, limited, or limited liability
  • Limited liability company (pass-through to one or more individuals as a partnership or as an equivalent to a “subchapter S” corporation)
  • Corporation: general with directors appointed by shareholder investors, and officers appointed by directors (“subchapter C”), pass-through to one or more shareholder investor individuals who may also be directors and officers (“subchapter S”), professional (pass-through to one or more individuals), or foreign

An upwardly mobile enterprise is a small-to-large enterprise focused on large market dominance (share being either industry-wide or in niches) with local-to-global aspiration in both traditional and non-traditional industries. It has growth potential from highly innovative people, processes, and products and/or services, and/or duplication of a business system. It is financed by founders and/or third-party investors (closely or widely-held) seeking capital appreciation, and potentially cash flow from dividends and/or interest, with medium to high risk. An upwardly mobile enterprise may be founded by one or more entrepreneurs, who either become part of a larger management team as new investors come on board, leave to form another venture as serial entrepreneurs, or retire.

Upwardly mobile enterprises are the heart of Wall Street.

A lifestyle business enterprise owner operates an enterprise in a local community, and may also be the founding entrepreneur:

  • Either as an active owner-manager, making a living from its activities for their own lifestyle
  • Or as a passive owner-manager, with an active management team in place

Lifestyle business enterprises are the heart of Main Street.

A lifestyle business enterprise owner can be a sole proprietor, partner, member (and usually also a manager) of a limited liability company, or a shareholder investor in a corporation (and usually also a director and an officer).

An employee is an individual who provides services in exchange for compensation under an explicit or implicit contract for hire, whereby the employer (hirer) has the right to control what work is performed and how. An independent contractor is self-employed; the hirer has the right to control only the result of the work, and not how it is performed.

What is individualpreneurship?

Individualpreneurship is a mindset for thinking about oneself as an enterprise, actively developing and managing multiple sources of income, and without being highly dependent upon any if possible.

Sources of an individualpreneur’s income include:

  • Employment
  • Entrepreneurship/business ownership
  • Investing

The individualprise represents the aggregation of all sources of an individual’s income. Gross income results from wages from employment, and from both revenues (commissions, dividends, fees, interest, rents, royalties, and sales) and from capital gains from both entrepreneurship/business ownership and investing activities. Net income (profit) results from gross income less the cost of revenue and the expenses required to generate it. The cash flow generated from net income generates wealth, which can be used for investing activities and supporting a personal lifestyle.

The broadest definition of wages includes all remuneration or compensation paid for services rendered by an employee, whether in cash or in other media including bonuses, commissions, and gratuities, based on piece, task, or time.

The need to develop and manage multiple sources of income arises from increasing uncertainty about economic, regulatory, and social trends.

For many individuals, the primary source of income is remuneration from employment, and the largest asset is their home. Employment is an active form of income – in effect employees exchange time for money. However, the best forms of income are those that are residual and passive.

Residual income results from an initial transaction at some time in the past for which an ongoing cash flow is received; passive income results from transactions where the individualpreneur is not actively involved.

Examples of residual income include enrolling members in systems where downstream commissions can be earned; selling items, such as subscriptions that are automatically renewable, or consumables where the ordering is processed by third-parties; and affiliate programs based upon referrals.

The rise and fall of employment opportunities

Prior to the industrial revolution, families were in effect enterprises. Augmenting farm work with other trades and crafts, families flourished in cottage industries working from home, effectively as a group of individualpreneurs. Merchants brought raw materials to homes and would take finished products to markets. Entrepreneurs would “put out” work to families, who were in effect their subcontractors.

As the industrial revolution progressed, work was transferred form homes to factories when the required machinery became too large or expensive. Initially, the “put in” system was used whereby workers in a factory were treated as subcontractors, and eventually became employees. Labor movements were founded to fight for workers’ rights, from which today’s employment and labor laws have evolved.

As the economy shifted from family to commercial and industrial enterprises, employment opportunities grew. Workers could expect long-term employment opportunities as manufacturing demand increased. Through improvements in manufacturing techniques, such as production lines and automation, the scale of units produced increased dramatically. Through improvements in energy, transportation, and telecommunications technologies, reach extended into new geographic markets for acquisition of materials and supplies, and delivery of end-products.

However, recent globalization trends have changed the cost structure of certain activities through outsourcing to providers who offer economy of scale, or to lower cost production markets. As a consequence of information and process control technologies, work has shifted from manufacturing to knowledge-based services. Technology can play a major role by creating jobs in new areas and eliminating them in others.

Enterprises have been impacted dramatically by these trends. For example, “big box” and online stores have had an impact on retailers on “Main Street” – but the savvy ones offer specialty products coupled with exceptional service. Even the local coffee shop is impacted by the price of green beans in global markets. Many manufacturers have downsized through strategic sourcing of components to scale providers, and in the construction industry, general contractors take advantage of prefabricated assemblies. As industries shift from manufacturing to knowledge-based, a major differentiator is marketing capability. Marketing capability requires understanding customer needs and wants, and responding with products and/or services designed for niche or mass markets, regardless of where the components are made.

The consequence is that job markets are dramatically changing, and that old assumptions for employment have become invalid. The notion of working for one employer for forty plus years is no longer possible because technology is changing the structure of industries and the nature of employment. Downsizing has become common, and it is a challenge for the education system to keep up with changing trends in the knowledge, skills, and technical requirements for jobs in emerging enterprises and industries.

The increase in consumer debt coupled with unstable employment opportunities has created stress for many individuals and their families, especially for those who are unemployed, face foreclosure on their homes, or even bankruptcy.

What is “Plan B?”

The term “Plan B” is used to describe an alternative course of action in case the preferred or primary “Plan A” fails. For many individuals, Plan A is a combination of a good education leading to a well-paying job. This form of Plan A stresses individual achievement through successes in education and employment – failures are usually downplayed. However, changing trends in employment put pressure on most individuals’ Plan A, who may face downsizing or even their employer going out of business.

For others, Plan A is a combination of entrepreneurship and business ownership. This form of Plan A can result in failure. However, ultimate success in entrepreneurship and business ownership is often achieved by learning from mistakes and failures over time, and by building teams. Plan A for entrepreneurs and business owners may change from time to time as their ventures change. Eventually, many entrepreneurs and business owners finally get it right as lessons from past failures lead to successes. Many entrepreneurs and business owners become investors in other enterprises with a sense of “wanting to put back,” and often with a higher tolerance for risk than those who have, in effect, earned income in exchange for time.

The uncertainty of the economy, regulation, and social trends as evidenced by downsizing, high consumer debt, government debt and unbalanced budgets, and high unemployment has created the need for all individuals to have a strong “Plan B.”

An effective Plan B begins with the notion of an individual behaving as an enterprise in their own right – the individualprise. Whereas Plan A may provide a primary source of income, developing a Plan B means understanding opportunities for earning multiple sources of income and allocating time efficiently by prioritizing on the best. Executing a Plan B may allow an individual to keep their primary form of employment, but work on other income producing activities, such as part-time employment, home-based businesses, or investing in real estate and/or securities.

The income statement of the individualprise is the tax return – after all, if the an individual has multiple strong streams of income, taxes are likely to be an important consideration.

The basis structure of the Individual Tax Return (IRS Form 1040) applicable to both Plan A and B activities includes:

  • Wages
  • Interest (Schedule B)
  • Dividends (Schedule B)
  • Business income from sole proprietorships (Schedule C)
  • Capital gains (Schedule D)
  • Supplemental income from rental real estate, royalties, partnerships, and subchapter S corporations (Schedule E)

The tax return offers clues as to opportunities for alternative sources of income; however, it is useful to separate the type of income from the forms of business, such as sole proprietorships, partnerships, limited liability companies, and corporations.

Types of income include:

  • Wages – all forms of compensation for full or part-time employment
  • Interest on investments
  • Dividends on investments
  • Capital gains on investments
  • Net income from active revenue generation such as commissions, fees, rents, royalties, and sales less expenses
  • Net income from passive revenue generation activities – primarily real estate rents and royalties less expenses

Types of business forms include:

  • Sole proprietorship and single member limited liability company – an individual that sells products and/or renders services, including as an independent contractor to hirers
  • Partnership or limited liability company – where an individual is a partner or member in an enterprise that shares profits, losses, and capital with others – the individual may be a general partner or member-manager, or a limited partner or member; a single member limited liability company is considered to be a disregarded entity
  • Subchapter S corporation – where an individual is a shareholder investor in a corporation that passes its profits and losses through to its shareholders – the individual also may be a director and/or an officer, and as such earns wages as an employee in addition to receiving dividends
  • Subchapter C corporation – where an individual is a shareholder investor in a corporation that is taxed separately from its shareholders, but may pay tax on the dividends received (thus is subject to double taxation) – the individual may also be an employee, and as such earns wages in addition to receiving dividends

Only individuals and corporations are legal entities, and as such, corporations have separate rights and privileges from their shareholder investors. Individuals are natural persons. However, a juristic person is a group of natural persons behaving as if they are a single group, such as in a partnership, a limited liability company, or an association. A company is a group of individuals that make up an enterprise regardless of business or legal form.

Entrepreneurs may start enterprises in any business form, but lenders and investors may require a specific form, and may place personal guarantees in individuals for contingent liabilities. Venture capital and investment firms may place specific requirements on business forms and management structure, such as being a Delaware subchapter C corporation. Thus a founding entrepreneur could become a shareholder investor in an enterprise that they are no longer in control of if an investor group brings in its own management team. Delaware is the preferred choice for incorporation for many investors because of its well established corporate laws.

Although self-employed individuals are treated as business owners through sole proprietorships, single member limited liability companies, and single shareholder corporations, they are unable to leverage their time unless they can delegate to trustworthy employees, or earn residual and/or passive income.

Individuals who are sole proprietors, partners, and members in limited liability companies are subject to self-employment taxes, and shareholder investors who are officers in subchapter S corporations are subject to employment taxes.

Achieving “Plan B”

There are many ways to develop and achieve a Plan B that has multiple income streams, and it is possible that one component may become the new Plan A eventually. Some opportunities result from converting a hobby into an income producing activity, whereas others result from leveraging professional qualifications and experience.

Examples of income producing activities include:

  • Part-time employment
  • Establishing a home-based business on a part-time basis, that has the potential to become full-time
  • Earning fees and commissions from referrals through affiliate marketing relationships
  • Earning royalties and fees through writing and speaking engagements
  • Investing in real estate for rental income and capital gains
  • Investing in securities for interest and dividend income and capital gains

Businesses that require separate physical premises, inventories, and employees should be avoided as a Plan B because of the high overhead of carrying costs, insurance, payroll, risk of theft, and governance. Whereas the notion of owning a restaurant can be a dream to many, all too often such an enterprise becomes nothing but a nightmare.

Home-based businesses can take many forms such as buying and selling products on the internet or providing professional services on a part-time basis. It is important to note that home-based businesses are subject to licensing and zoning laws and regulations, and may be subject to property, sales, and use taxes, in addition to income tax.

Any form of revenue generating activity requires business development and marketing capability to create awareness and build relationships. The degree of selling experience necessary is a function of the type of business. These activities can be routinized through duplicable, predictable, and measurable processes that can be learned over time.

Some investing activities may require active trading to ensure that capital gains can be properly realized in up markets, and to prevent losses in down markets.

The best form of income is both residual and passive, whereby ongoing cash flow results from activity that occurred in the past, and for which little or no management activities are required in the present.

An effective way to achieve a blend of residual and passive income is through a combination of sources from membership systems and investing activities as follows by:

  • Enrolling customers in membership systems where commissions are earned from ongoing sales of consumables, for which the ordering and distribution is handled by third-parties – this activity generates residual gross income
  • Investing the residual income in an investment portfolio that diversifies risk, and generates cash flow from interest and dividends – this activity generates residual gross income; the income is passive if the portfolio does not require active management through trading
  • Note: investing in real estate may generate residual income from rents; however active management may be required for finding tenants, negotiating leases, collecting rents, paying expenses such as utilities, and performing maintenance and repairs; investing in securities may require some trading to hedge from risk, and to take advantage of capital gains.

A shorter-term objective of Plan B is provide a hedge against Plan A as an alternative. A longer-term objective of Plan B is to gain financial independence – the state of having sufficient wealth to cover expenses required by a certain lifestyle. Wealth is achieved by having sufficient assets and income producing activities to generate a gross income that exceeds all professional, physical, and personal expenses required by that lifestyle. Wealth is a source of capital for future investment. It is usually advisable to eliminate debt in the quest to achieve financial independence.

Enterpriship

A key success factor in developing a Plan B is understanding those enterpriship (entrepreneurship, leadership, and management) competencies that are essential to income generation.

Future Rifle Scope Technology That’s Here Today

The next generation rifle scope targeting technology will make real life shooting resemble a video game and cause a revolutionary re-tooling of the industry. The size of a rifle scope, the optimal location on the gun, the way users position it for targeting in front of their eye, and its visual sensory field of view capabilities are all ready to leap frog ahead at affordable consumer prices.As a technologist, sports shooter, and hunter I look at how the traditional rifle scope and its user interface has not changed in design to incorporate any of today’s readily available technologies. Most shooters I know look at a scope the same way we looked at a camera in the 80’s. Why should the body style change and why add an LCD display? An LCD is certainly not as sharp as looking directly through quality lenses from vendors like Nikon or Canon. In the sun you can hardly see what you are pointing at on a LCD screen. But today, every camera has one, even the most expensive ones used by professional videographers. In this writer’s opinion, one day soon every rifle scope will also.You may ask, “what consumer technologies do we have today that could enhance a rifle scope”? The first technologies that come to mind in automating are LCD displays, SD card storage, and wireless video transmission. Others include micro circuit board camera IR night vision and starlight night vision. These simply integrate technology with the scope’s visual field. The manipulation of the image data for decision making is also possible. I am sure the military has this today, but why not Bass Pro Shop and Walmart at consumer prices?Technology has added a visual monitor to just about everything over the last 20 years. Who would have thought in the 1980’s that the telephone, camera, and even automobiles would have built in LCD screens for user operation interfaces. Everything from a plumber scope that examine the insides of your pipes to microscopes now come with video capture and LCD display monitors as a standard or optional interfaces. This year Google even released HUD eye glasses which project visual information on the glasses lens for viewing.Digital cameras were a destructive technology for the traditional camera industry. Digital storage revolutionized the film industry, changed the fabricated shapes of cameras, and blurred the difference in a video camera and still camera. The same is close to happening for the old fashion rifle scope. Changes to the way a scope is used for targeting could even change the fabricated shapes of guns. Circuit board cameras can provide high definition video, IR night vision, starlight vision, and thermal imaging. Targeting with a traditional scope has a human error opportunity called parallax which takes skill to overcome. This is a targeting problem caused when the eye is not positioned optimally in the scope’s line of sight. Products like Digital Crosshairs NL scope attachment for day/night shooting eliminates this when attached properly to the scope. With this new device the human eye is no longer required to even be positioned behind the scope’s eye piece for targeting, the crosshairs are displayed on a picatinny rail mounted LCD. A newly announced add-on to this product will enable the shooter to also transmit the scope’s field of view up to 600 meters wirelessly to a remote viewer. This brought a lot of excitement when displayed at the Gastonia North Carolina 2013 Sniper’s Conference in October. A frequent comment from SWAT team members was that this device showed the commanders what the shooter was viewing so the final decision to shoot could be made by the command based on live visual information using wireless video transmission, not a verbal description of what the shooter was viewing. Digital Crosshairs NL makes it easily to enhance an existing scope to include an LCD display and IR night vision.Other new technology enabled rifle scopes include the DigieScope DV-Scope which has a built in 2 inch LCD display for targeting and the Pulsar Digisight N750 that features a OLED Screen for viewing and a built in variable power laser IR illuminator. It has a 4.5x magnification and a push button digital zoom which magnifies what you see by 1.5 times.The scope industry like the camera industry will resist changing and a lot of die-hard shooters will insist that their traditional scope is better. Early resistances to destructive technologies that change a norm usually meet resistance. Would a serious shooter even want a scope that resembled a Gameboy? Would a serious photographer consider a digital camera ten years ago? Everything changes and the rifle scope will also. Low cost electronic components from China like IR circuit board cameras, small LCDs, and new polymer battery technologies will make these inovations cheap to implement and provide a quality competitive with the multi thousand dollar high end scopes technology of today.

Food Industry Requirements Are Dynamic – A Countertop Food Warmer Ideally Fits Many Necessities

In current times, we think of technology being to help us in some way. Like cell phones that provide us instant communication, or a GPS unit that plots our destination. These devices exist to fit our ideal situations. Similarly, in the food industry there many examples of how technology can help our business. For example, a countertop food warmer still provides the capacity we seek, but in a smaller form factor. After all, the food industry requirements are dynamic. In the industry, we are faced with daily challenges that require us to reflect upon what is ideal in a situation. So, what challenges exist? Well for example, size requirements. In the industry, not all of our available space has to be for food containment. Additionally, the location will move based on our clientele. There are always unexpected moments or specific challenges we can face like this. Technology can make it easier though. Therefore, a countertop food warmer does have some advantages.Obviously, the most sought after advantage with a countertop food warmer is its ability to keep food hot and ready. After all, the primary concern of a food service establishment is to keep hot food, hot. That is what their clients expect and what they should deliver. Also, consider the amount of time a countertop food warmer can keep things warm. If you have a similar machine but find that it just does not hold the right temperature, you should find a more reliable one! Food safety is a concern that one should never forget. Secondly, look at the technology the countertop food warmer has. Is it a simple machine? Will it be durable and hold your food at the right temperature? These are important things to consider. Ideally, the technology behind the machine should be suited to what you need.What are some good examples of a high quality countertop food warmer? First, look for a machine that is built by a reputable company. You might be surprised at the number of fly by night manufacturers they are actually are. Second, know that the technology in the machine will keep your food at a constant and safe temperature. Also, look for unique qualities. Does the machine offer a technology that keeps the food presentable, for longer? Then it surely will be better for your business. Is the research and development into the machine extensive? Of course, you should select a countertop food warmer with a durable and solid design. All of these should be key selling points.So why select a countertop food warmer? They typically cost less to purchase, can operate on a standard 120V electrical connection and take up less space. It is actually amazing to see how many food service establishments have a full size holding cabinet and use 30% of its capacity on a daily basis. What a waste! Just remember that bigger is not always better, so evaluate what is the best fit for your application.

3 Reasons Modern Farmers Are Adopting IoT Technology at an Astounding Rate

It seems like everything today is touched in some way by the Internet of Things. It is changing the way goods are produced, the way they are marketed, and the way they are consumed. A great deal of the IoT conversation has revolved around transformation in industries like manufacturing, petrochemical, and medicine, but one industry that has already seen widespread adoption of IoT technology is often overlooked: agriculture.Of course, many of us are very familiar with some of the efforts that have been made to optimize food production. As populations continue to grow, there has been a serious and sustained drive to increase the crop yield from our available arable land. Some of these efforts have not been particularly popular with consumers (i.e. pesticides, GMOs).With the advent of new technology and the Internet of Things, farmers are finding new ways to improve their yields. Fortunately for us, these new ways are decidedly less disturbing than toxic chemicals and genetic manipulation. Using sensors and networked communication, farmers are discovering ways to optimize already-known best practices to increase yield and reduce resource consumption.If it’s surprising that the agricultural industry would be technological innovators, it’s worth considering how agriculture is in many ways an ideal testbed for new technology.There are a few good reasons for this:1. Ease of DeploymentUnlike in other industries, deploying sensors and other connected devices on a farm can be relatively easy and inexpensive. In a heavy industrial environment like a factory or refinery, new technology must replace old technology that is thoroughly embedded in the production infrastructure. There are concerns about downtime and lost revenue, as well as concerns about finding the right products or group of products to integrate into their existing technological ecosystem. On a typical farm, there is no need for downtime, and usually no concern for any existing technology that may be incompatible. Inexpensive sensors placed in various parts of a cultivated field can quickly yield very useful actionable data without disrupting a single process.2. Instant ValueAnother reason that agriculture has provided such a fertile testbed for IoT technology is the speed with value and ROI can be realized. Pre-existing metrics of precision agriculture can be applied more easily, maximizing the already-known benefits of established practices (knowing what types of crops to plant when, knowing when and how much to water, etc.). Farmers have also had success safely and naturally controlling pests through the intelligent release of pheremones. Of course, there is the obvious and very tangible benefit of decreased resource consumption and increased yield. A modest investment can yield measurable results within a single season.3. Continual valueIn agricultural IoT deployments, the same practices that provide instant value will continue to provide value for as long as they are employed. Conservation of water and waste reduction provide repeated value, as well as the increased yield brought on by precision farming. There are also opportunities to improve the equipment that farmers use every day. A connected combine or tractor can record useful information about its operation and maintenance. It can also allow for certain processes to be optimized and automated.There are some real concerns about our ability to feed our ever-growing population in the future. While controversial technologies like genetically-modified-organisms have helped to increase food production, these techniques are not exactly popular with the general public, several of whom have voiced concerns about the long-term impact of a genetically-modified diet.The good news is that similar increases in food production are possible without the need to modify the food; we simply have to modify the processes used to produce it. And it’s not just about food production. Plants are also used for biofuels and as raw materials in manufacturing. By increasing yield and reducing resource consumption, growers are also having a positive impact on numerous other industries.For instance, a Colorado-based company called Algae Lab Systems is helping algae farmers improve their output by introducing sensors to measure environmental factors like temperature, pH, and dissolved oxygen in their photobioreactors and algae ponds. Algae growers are now able to continuously monitor their crops from any location, also allowing for larger and geographically dispersed operations.A case study detailing Algae Lab Systems provides some insight into how they are transforming the algae farming industry, and aquaculture in general.Read It Now