After debating with myself on whether to use the BS word in the title or not, I finally decided not to censor myself on my own blog and went ahead with it. Censoring the BS word on a BS topic is actually some BS in itself; and using BS instead of bullshit is also bullshit … so what gives.

Anyways, the point of discussion is that, recently, it has come to my attention that one of our “highly decorated” acquaintances might have misled a number of scholarship organisers with her “powerful” essays and personal statements. We (me and my wife) happened to figure this out over a dinner meeting when we heard of some extraordinary high-flying crap (unreasonably lofty ideals, fake “personal life experiences”, etc.) from this person. A few things just jumped out at us as pretty obvious discrepancies (when you have been through a similar experience, you can very easily tell when the other person is exaggerating/lying - sort of) and a few other odd things we figured out after pondering over the entire story all over again.

I was thinking over it for a while and then realized that she is just playing the scholarship system to her advantage. Almost every scholarship/award that I have seen in seven years of graduate school asked for an essay or a personal experience statement, or some document of that sort. Many of the scholarships/organizers specifically state (verbally or otherwise) that, generally, very similar academic profiles of graduate students, scholarship decisions will ultimately boil down to a contest between personal statements. “Powerful” personal statements will have a better chance of getting the scholarship.

Now, I haven’t really understood this obsession with “powerful” personal statements and essays .. and with preferences for people with “powerful life experiences”. Sounds very “Miss America” like. This obsession for larger-than-life idiocy encourages words over deeds, lofty ideas over achievable targets, and bullshit over plain old simple truth.

Why should something dramatic happen in your life to make you eligible for a scholarship? Why is it necessary to relate your success to obscure words that your mom/dad (or a dead relative) said 20 years ago? Why is it necessary to “boast” about your far-fetched “noble” intentions in future (which are not really “noble” the moment you start boasting about them)?

Interestingly enough, almost none of the scholarships will actually take the pains to verify any of your “personal” events. So whatever you throw at them will be accepted - and even glorified. So where is the motivation to be honest and straightforward about who you are, why you want the scholarship, and what you want to do with the money you will get from the award?

As educational expenses rise, we will probably see more such bullshit floating around in future.

I wonder what else we will do for money.

Is it too much to ask for a very little tiny bit of personal honor? Or is that some kind of bullshit too?

Do you ever sit down and think about how your life is progressing and where you’re headed?  Laying out a roadmap for yourself can be a valuable experience.

As the post title alludes to, if you haven’t defined your goals, how will you measure your progress towards them?  Having a plan not only makes your efforts more measurable it can give the things you do more meaning and help filter out time wasters.

You may have noticed I was silent on this site over the weekend, I was using the time for some strategic planning in my own life.  My planning process is iterative in nature.  I come up with some goals and plans to meet those goals.  Then I sleep on it and re-evaluate those the next day.  Looking at it with a fresh perspective, I may change around the milestones and tasks a bit.  Needless to say, my planning isn’t complete but it was nice to get a start on it.

Typically I would have provided a list of articles I enjoyed for the week but due to my planning I didn’t publish those.  Instead, I’ll point out a few articles everyday this week, here’s the first few.

– The Digerati Life lists 8 simple ways you can save a lot of money, try $1000.

– The Mighty Bargain Hunter and All Financial Matters take a look at whether it’s worth your time to wait for free stuff.

– Summer is here and My Dollar Plan offers some tips for saving money on weddings.

– Million Dollar Journey gives us a strategy for asking for discounts.

– Brip Blap loves working so much that he’s started the carnival of careers.

– CNN covers how people aren’t canceling their vacation plans this summer, just changing them to be cheaper, reminds me of my series on saving money on vacations.

– eHow article on how to earn extra money seems appropriate for tough economic times:

• Get a part-time job
• Turn a hobby into money
• Get paid for focus groups
• Sell your stuff on eBay

I also took a look at ways to make extra money during a recession.

Thanks to Money & Values and Canadian Dream for hosting the last two personal finance carnivals and including the articles Best Credit Cards for New College Graduates and Three Ways Your Boss Can Save You Money on Gas.

Here is an excerpt from an interesting article I read a few days ago:

Says Anthea Butler, an expert in Pentecostalism at the University of Rochester in New York: “The pastor’s not gonna say, ‘Go down to Wachovia and get a loan,’ but I have heard, ‘Even if you have a poor credit rating, God can still bless you ? if you put some faith out there [that is, make a big donation to the church], you’ll get that house or that car or that apartment.’ ” Adds J. Lee Grady, editor of the magazine Charisma: “It definitely goes on, that a preacher might say, ‘If you give this offering, God will give you a house.’ And if they did get the house, people did think that it was an answer to prayer, when in fact it was really bad banking policy.” If so, the situation offers a look at how a native-born faith built partially on American economic optimism entered into a toxic symbiosis with a pathological market.  …

“Narratives of how ‘God blessed me with my first house despite my credit’ were common. Sermons declaring ‘It’s your season to overflow’ supplanted messages of economic sobriety,” and “little attention was paid to … the dangers of using one’s home equity as an ATM to subsidize cars, clothes and vacations.”

Read the rest of it here.

In addition to Wall Street, it looks like the faith business also needs a little more scrutiny. Apart from that, I am always surprised at how gullible people can be when it comes to being sold out divine rhetoric.

If we keep up with this even God will need a bailout someday!

Finally, God helps those who help themselves, for everybody else there is Mastercard everybody else needs to clearly understand the meaning of the words “deliquency” and “foreclosure”.

Well, it’s been a while since I’ve had the time to post a weekly recap, but I’m bringing it back today. Given the market conditions over the past few weeks, my job has become incredibly difficult, and the last thing I want to do when I get home is to read about, or talk about finance. But, I had some time at a remote location earlier this week which meant sitting in a hotel room by myself with only a few channels on TV, so I had some time to get caught up on everything and see what everyone is talking about these days.

And since tomorrow is going to be the biggest day for college football in many years, the last thing I’ll be thinking about tomorrow is finance or the economy. I need my Spartans to pull off something special and beat Penn State. Then, in a bittersweet turn of events, to clinch a Rose Bowl spot we need our sworn enemies, the Wolverines to upset Ohio State. I’m a bit torn, because I’d like to see the Buckeyes tear Michigan apart, but considering we haven’t been to the rose bowl since 1987, obviously that would be quite special. Of course, odds aren’t in your favor anyway when you need to beat one of the top teams in the nation, and you need one of the worst teams to upset another great team. But, it makes for an exciting Saturday!

Common Job Interview Questions -With unemployment on the rise, you might find yourself looking for a job in the near future. If it’s been a while since you’ve interviewed for a job, it can take a little time and practice to brush up your interview skills. Here are some common interview questions and how you should approach them.

Matt Furey: 101 Ways To Magnetize Money -Would you like your money to act like a magnet and pull in more money? That’s the first thing I visualized when I read the title of this post and book with the same name. Lazy Man reviews Matt Furey’s book to see whether or not it will help you make more money.

What is ROWE and How Does it Affect the Workplace? -What is ROWE? I had no idea, so I had to read this one. It was interesting to see that this business management strategy is used by Best Buy, and I hate that store more than anything. Maybe it’s because I know more about the products I’m buying than the people that work there and understand I don’t need $500 worth of Monster Cables to go with any audio/video product.

E-Trade Online Savings Account Opening Process -Have you thought about opening a savings account with an online bank, but was unsure about doing something like that online? Well, nickel gives a step-by-step outline of what this process is like with E-Trade, complete with pictures. This should give you a better idea of what to expect when opening your account.

Quick and Easy Ways to Start a Savings Plan Today -When times are tough and money is tight, saving money might seem impossible, but it’s during times like these that you need to have savings, and need to be disciplined. Frugal Dad has some great tips to help you get started with a savings plan today, and it won’t hurt that much.

Last Minute Gift Ideas and Shopping Tips For Holiday Procrastinators -I’m a big advocate of shopping early, mainly because I hate dealing with idiots on the road and at the mall. Unfortunately, I haven’t started any shopping yet! The clock is ticking, and the stores will only continue to get busier in the coming weeks. There are some good ideas on this list I can probably take advantage of to save me a headache or two.

Are You Ready to Lose Your Job? -Most people aren’t really “ready” to lose their job, but being mentally and physically prepared can make a job loss that much easier. If you know how a job loss will affect you, what benefits you’ll lose, what you’ll gain, and what your prospects are, you’ll be in a better position to get back on your feet.

100 Money Saving Tips for the Holiday Gifting Bonanza -Do you want to save money this holiday season? If so, this is probably the only post you’ll need. Jim has 100 great ways to save money, not only during the holidays, but at any time. It is quite a list!

Debt Reduction 101 - Beginner?s Guide To Debt Reduction -Are you trying to get out of debt but don’t know where to start? Don’t worry, we have NCN to the rescue. Here is a great beginner’s worksheet to help you start your quest to becoming debt free.

Transfer A Brokerage Account: How Much Does It Cost? -There are a lot of different brokerage options, and finding the best account with low fees is great, but it can come at a cost. Transferring out of an account often costs money. So, finding out what it will actually cost and help you determine whether or not it’s worth the move.

Five Things You Don?t Want to Hear From Your Financial Planner -This is a guest post by Jeff Rose, a CFP over on Moolanomy’s site. But here are 5 things you probably don’t want to hear your financial advisor tell you. Sadly, I’ve had to tell people all of these things quite a bit in the past few months. Of course, most people already know they need to do these things, but they just never admit it, or take action to fix it.

S&P 500 Down Nearly 50% in 2008 -I had to include at least one really depressing post. The S&P is down almost 50% this year. It sucks, I know. Be thankful you don’t have to work with clients who come to you for answers on a daily basis.

Friday Finance Findings for November 21st

Do you cram your holiday shopping on Christmas Eve? If you’re a holiday procrastinator, maybe these simple, convenient, last minute gift ideas and shopping tips will take some of the pressure away.

I, Procrastinator

“Procrastinator” should have been my middle name. I’ve always thought that anything worth doing is worth doing well — tomorrow. Or maybe the day after. I blame my dad, to be honest. As soon as I was old enough to use the pointy scissors, it became an annual tradition for my dad to drag me out after dinner on Christmas Eve to do his Christmas shopping for my mother. This usually took a few hours and involved a fair amount of money, as there was no real plan. Then after she went to bed for the night, Dad would boost all of the packages through my bedroom window, and I’d spend a couple of hours wrapping everything and getting it all under the tree. He paid me $0.25 per package, which I then spent on New Kids on the Block trading cards .

Similarly, now that I’m all grown up, I find myself putting off holiday shopping and spending too much at the last minute because I’m desperate for a gift. I recognize that this is not a good habit and vow each year to mend my ways, but I’ve found that the rate of recidivism when it comes to procrastination is quite high. Oh sure, I do the easy stuff early in the season: the spousal unit always needs new socks and underwear, Mom looks forward to the annual box of See’s candy, etc., etc. The tougher things, thoughtful gifts, are the ones I put off buying.

I’ve come to realize that procrastinating is silly — good gifts don’t need to take a whole lot of effort (or money). For instance, my friend loves snowman ornaments. She also likes to be pampered but doesn’t like to spend money on herself. But instead of searching for and spending too much on the perfect snowman decor, I head over to the salon we both use and pick up a gift certificate for a mid-winter pedicure. She loves getting her scaly winter feet prettied up, even if they spend all of their time in winter boots or fuzzy slippers. See? Easy, no more expensive than the ornament, and interpreted by the recipient as thoughtful. Trifecta!

Last Minute Gift Ideas For Those Who’ve Run Out Of Ideas

Not sure what to get? Here are a few more shopping tips as well as holiday gift ideas that may be convenient, simple enough and good for last minute scrambles, but I believe they’ll make even the biggest procrastinators look pretty good (yes, this list is “gift card heavy”):

• Keep a few basics on hand. There happens to be a fairly large Amish population in my area, and they make and sell beautiful hand woven baskets of all shapes and sizes. I’ve always got a few of these baskets stashed in a closet, and can quickly pick up nuts, cheeses, jams (sometimes also Amish made), candies, wine, etc. Load the goodies into a basket, wrap the basket in cellophane, tie a pretty seasonal ribbon around the top and, ta-da! Insta-gift.
• AAA Membership: Got a friend that drives a clunker? How about a loved one that just has a long daily commute? An annual membership to AAA might save them some enormous headaches, not to mention a lot of money, in the event of a breakdown.
• Wine Club: Does your mom enjoy a glass of wine with dinner? Sign her up for a wine club. Wine.com offers clubs starting at 3-months and $89. Just select reds or whites and you’re on your way. Or perhaps this will do: a wine basket from what else but Winebasket.com, with 5% off your order above any additional discounts you get from items on sale!
• Gift Cards/Certificates: I’m a little tired of hearing people say that you’re “cheating” when you pick up gift cards for those on your list. I disagree with the notion that these aren’t thoughtful gifts — some of the best things I’ve received were made possible through such cards! Actually, I’m always thrilled when someone who knows I’m a reader gives me a Barnes & Noble gift card. And, like the friend I mentioned above, these cards are a good way to treat someone to something that they like but might not otherwise buy for themselves.

  On the plus side, they are easy and convenient gift choices; the downside, however, is that your gift recipient will know how much you’ve spent on them. Or worse, the cards or certificates may go unused, if forgotten. But if you do decide to go this route, then just make sure that what you purchase doesn’t have an expiration date or fees for non-use.

  Some great places that offer general gift cards or certificates?

  • Try GiftCertificates.com, which provide e-gift cards that are redeemable online.
  • You can also pick up cards from the big e-tailers such as Buy.com and Amazon.com.

  I’ve listed more sources for these items below.

• News and Magazine Subscriptions: Every year, my dad renews my husband’s “Sports Illustrated” subscription, and my husband renews my dad’s Wall Street Journal subscription. Everyone drinks some eggnog and goes home happy.
• Entertainment Subscriptions and Gift Cards: One of the easier gifts to give out are those relating to some form of entertainment or another. I’m sure you know more than a few couch potatoes, game enthusiasts and music aficionados who’ll appreciate a subscription, gift card or access to Blockbuster, Gamefly or eMusic respectively! And if you’ve got a frugal aunt (like, who doesn’t? ), maybe the 2009 Entertainment Book will thrill them with its countless discounts for almost everything under the sun.
• Fancy Food for Cheaper? Well, we all have to eat right? You don’t have to be a gourmand to enjoy the gift of a pleasant meal from your choice restaurant. And one of the most affordable gift ideas I’ve come across, which I’m thinking of picking up for several people on my list is a gift certificate to Restaurant.com. In the past, I’ve been presented with a Home Bistro gift certificate, but I’ll be honest and say that I wasn’t too impressed by the meals I’ve received from them. But who knows? That was a few years ago, so maybe things have gotten better since then.
• Gift Cards for the Work at Home Type: Those who want to beef up their home offices or who enjoy gadgets and electronics may love a gift card from Sony’s e-store.
• Beauty and Wellness: A gift that pampers and beautifies will be very apropos for any lady who’d love to look and feel better. Maybe a nice scent or some bath, body and face products from FragranceX or SkinStore.com will tickle her fancy! And since fragrances and beauty products are personal, a gift card is a practical choice.

Once again this year, I vow not to procrastinate when it comes to holiday shopping. But even if I do, I hope not to rack my brain over what presents to give, given how much easier today’s retailers and e-tailers are making it for us to get our shopping done.

At any rate, I’ve started my list already using some of the ideas above, and plan to finish my shopping by December 1. If all goes well, I’ll be able to spend the days leading up to the holidays enjoying my friends and family (and all the holiday food and drinks!), and not panicking about what I’m going to get for whom.

 
SVB’s POV: Thanks to Emiley Thacker for sharing her thoughts with us in this article. As far as I know, there are no Amish communities around where I live .

This is a post from The Digerati Life.

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We may think that we need a lot of things.  We may think we need cable TV, our morning coffee and bagel, a couple of pints at the pub each Friday, or a really big house with a mortgage that the lender had to “make work for our income.”

These aren’t really needs when we get down to it, of course.  They’re wants.

The stuff we really need — after breathing — are (a) food (and clean water) in our stomachs, (b) clothes on our backs, and (c) cover over our heads.  To this you might add basic medical care, education, and a few other very important things.

Most people (especially if you’re reading this now, and especially me) can stand to cut out a lot of non-essential items if it’s needed.  This is extreme downsizing and simplification.  It isn’t fun, but it can be done.  Moreover, what’s spent on the essentials can be trimmed way down to boot as well, by doing the little money-saving things again.  Even the essentials can be simplified and scaled back!

Here are a few ways to get by on spending less for food:

• Consider generic brands over name brands.  Generic or store brands are usually (but not always) cheaper than the name brand, and for some products they’re comparable or even better than the name brands.  I prefer store brand diet soda in some cases because I like the taste of one sweetener over another.
• Use coupons for items you buy anyway.  You can get them a number of places, like your weekend newspaper, from magazines, online at the websites for the products, or online at places like CoolSavings or MyPoints.
• Substitute less expensive foods.  How about oatmeal instead of cereal?  How about eggs instead of meat?  How about rice and beans?
• Buy food that requires more preparation or reconstitution.  As in dried beans over canned beans, dehydrated milk over milk in a carton, raw oatmeal over instant oatmeal, or big bags of rice over instant rice.  The other advantage of reconstituting food is that it may keep longer than the “fresh” food.
• Buy food with less packaging.  Packaging means extra cost, and the food tastes the same if it can be resealed and consumed in time.  Binder clips work fine to keep “family-size” snack bags shut.  Reusable storage containers are great for all kinds of food storage.
• Buy in bulk if the price is right and if you know you’ll use what you buy.  We buy rice 50 pounds at a time, and use it.  I buy the big Costco-size box of oatmeal, and eat it.  It usually saves money to buy in quantity.
• Spend more at the grocery store and less at the restaurant.  The cost savings is clear here.  Eat in with friends as opposed to eating out with friends.
• Learn a few easy, cheap recipes.  I know how to cook rice well enough so that I can prepare a cheap, filling lunch (and dinner sometimes) merely by putting a few ounces of beans over the top with some Worcestershire sauce.  Heck, adding rice to a can of soup works, too.
• Be diligent about consuming leftovers.  Odds are you’ll only be eating the same stuff a few days in a row at most.  (Except at Thanksgiving: It’s turkey leftovers for at least a week!)

Cut your clothing bills, too:

• Make your clothes last.  Making things last can be a money-saver.  My wife is an excellent sewer and has given some of my clothes an extra life.  Simple Debt Free Living has a decent introduction and link collection for clothing repair.  But even before that, be kind to your clothes in the washer and don’t overdry them. 
• Check out yard sales.  We’ve found great deals on baby clothes at yard sales, as in maybe a dime apiece for a bagful.  My wife and I have found clothes for us, too.
• Check out thrift shops.  Sometimes the donated clothing has hardly been worn.  The bigger ones usually have a good selection of sizes.  Sometimes they run sales to make room for things.
• Check out consignment shops.  These are perceived as a little higher-brow than thrift stores but the premise is the same:  buy used and save.
• Check out the clearance racks in department stores.  Some department stores perpetually mark things up just to mark them down, but there are still good deals to be had at places like Macy’s or Kohl’s.  Since my wife has a Macy’s store charge card she gets special coupons that get her some really good deals.  Wal-Mart’s hard to beat, too.
• Check out eBay.  There’s always eBay!  They’ve been getting much more buyer-friendly these days.  Buyers cannot receive negative feedback anymore, and eBay is also waging war against inflated shipping charges (which is in their interest, but that’s another story).

Cutting costs on shelter can be a touchy subject but please remember, it boils down to a roof over your head:

• If you’re renting, think very carefully before buying a house.  Owning a house is a worthwhile goal but it can be very expensive.  During the real estate bubble times of the past few years it was more expensive to own a house than it was to rent.  Or, if it was affordable to own a house, in some areas, it would become too expensive later (adjustable rate mortgages).  The start-up costs can be a bit of a shock.  Plus, you’re a lot less mobile in a home than in a rented apartment.
• Reduce operating costs of your living space.  Keep the temperature warmer in the summer and cooler in the winter.  Use compact fluorescent lightbulbs where you can.  Seal cracks where heat (or cool air) can escape.  Don’t use the clothes dryer for one pair of socks.  And so forth.
• Reduce financing costs of your living space.  Pay the mortgage (or rent) on time.  Consider paying the mortgage down a little faster.  Consider refinancing an adjustable-rate mortgage to a fixed-rate mortgage to remove interest rate risk and take advantage of a depreciating currency.  Work to get rid of private mortgage insurance as soon as possible.
• Test the waters for signs of trouble.  Is the checkbook balance going down month by month?  Why?  Is it due to increasing costs associated with your living space?  Is is possible to move into a cheaper living space if the costs of your current living space are getting out of control?  (A good friend realized this.  His family had built a larger house and had been renting their original, smaller house.  The costs of the larger house were too much, so they are working to sell off that one and move back in to their original house.  Hey, it happens, but they recognized what the problem was and are fixing it.)
• Can someone share your living space?  Can you take on a boarder or a roommate?  An unmarried woman at work has a house and has taken on a roommate to subsidize her housing cost.  Alan Corey did this to great benefit; he took the smallest room in the house so that he could rent out the larger ones for more money.
• No affordable options in your area?  Since moving is costly, it’s usually easier to cut other expenses before contemplating a move, especially one out of town to a less expensive area.  But if nothing else seems to work, this is an option.  It may mean leaving friends and family, and finding another job, but the housing cost issue can go away if the price difference is large enough.
• What if the worst happens and you lose your living space?  There are some options.  They’re not great options, obviously, but better than nothing.  Living after foreclosure or eviction might mean moving in with someone who will take you (and your family if they’re involved).  It can mean finding a church or other group that will take you as a “shut-in.”  It could mean taking whatever job you can and renting by the week (Barbara Ehrenreich, author of Nickel and Dimed found this to be a tough life ).  Even more simply, it could mean pitching a tent or sleeping in your car.  This kind of living isn’t something I’d wish on anyone, but unfortunately more people will be thrust into this kind of situation.  And in any case, it doesn’t have to be forever.

I guess by now nobody cares if I am around … so this would be just to motivate myself to write a little more.

Looks like the site was down for a couple of months after some screwup with Wordpress/Hostmonster/Upgrade/That-Kind-of-Crap; so it took quite some efforts to get it back on track. Now, it looks all messed up so it will be a while before it looks pretty again.

Hoping to see some old friends again.

Although many small businesses begin with only one or two members of staff - the founders - most growing businesses quickly recognise the need to create a larger team. Not only can this spread the workload but a well-selected team can bring in more energy, creativity, drive and knowledge than the founder alone might possess. A small, closely-knit, highly motivated team can be an unstoppable driving force.

The authors of The Beermat Entrepreneur call the members of this core team 'cornerstones'. They suggest that the ideal mix is one entrepreneur providing strong leadership, surrounded by four 'cornerstones' - one for sale, one for finance, one for product development and one for project delivery and customer service. In real terms, most small businesses cannot afford such a big team, and don't really need it to begin with. However, even bringing one other person in to the business can make a huge difference to its success during the first year or so.

In many cases, the original team will be composed of the founder, or founders, and one or two relatives or friends who have been roped in along the way. This works well if everyone is committed to the success of the business and prepared to work hard. As we've seen the early days of a business are defined by long hours and a painfully demanding workload - there is no room for the half-hearted or unenthusiastic. Not only will they not pull their weight, but they will sap everyone else's enthusiasm too.

I've heard it said 'never work with friends or relatives' and it's true that in some cases this leads to disaster. However, a team who like each other - and have a friendship beyond the business - can also be extremely efficient and powerful.

Jude, Business adviser

Remember that just because you enjoy spending time with someone socially it doesn't mean you will like working with them. Ask yourself what they would be like to work with. Are they hardworking? Enthusiastic? What do they have to offer your business? Try to find people whose skills compliment yours, who can bring something to the business that fills 'gaps'. For instance, if you are fantastic on the finances but weak on marketing, you need to find someone who can bring something extra to the marketing side of the business.

A recent London Business School survey of CEOs found that they considered the major factor that had contributed to the success of their businesses was 'selecting the right people with good attitudes who are loyal to the company and who want to excel in their careers'.

Defining Roles

Whether you decide to go into business with others as equals or you employ them as part of your original team, it is very important to define roles carefully. Everyone needs to know what is expected of them and where the boundaries of their 'area' lie. In businesses with two or more equal partners a lack of clarity about roles can be a major source of conflict, taking up valuable time that might be better spent focused on other aspects of the business. If you have a management team, you need to give them space to fulfil their roles and feel that their contribution is valued. This doesn't mean handing over control, final decisions will still rest with you (or if they don't you need to be clear about exactly who is the boss - only one person should take this position or squabbling and infighting can result).

Consider the following key roles and divide them between your core team. You should all be clear on who is going to take each role.

Business leader - who takes the final decisions? In other words, the boss.

Sales person - who sells to your customers? Identifies customers and carries out your customer research?

Finance person - who manages the money and the associated administrative work?

Supply management - who locates suppliers, negotiates with them and maintains adequate supply levels.

Core business - who does the core tasks of your business, by which we mean the things that your business is actually about? This might mean making a product, providing a service or something else.

Marketing and PR person - who promotes your business to potential customers and raises the profile of your business?

Some of these roles overlap, so good communication is also of key importance to your business.

Importance of Role Clarification

People do either one of two things in a business - they either add value or they add cost. There are no grey areas.

One of the most important ways to ensure that your core team members are all adding value is to help them clarify their roles.

There are a number of different aspects to role clarification:

Prescribed role - This is what the business uses to set down the individual's overall goals and objectives. It is usually called a 'job description' or something similar and it sets out the person's responsibilities, authority, and key tasks, as well as their position in the business hierarchy.

While this is a useful starting point, it does not take account of personal differences and changes in circumstances such as growth of the business or the need to cover weak performances by others.

Personalised role - the prescribed role is only part of the picture. These are factors internal to the individual which will affect the way he or she performs in the role.

This includes their abilities, skills and strengths, as well as their expectations of the role, their assumptions (about the role, the business, the sector. etc.), their values and ambitions.

Perceived role - the perceptions and expectations of others in the business will have an impact on the individual. For example, they will have their own views on what the priorities of the role should be as well as the boundaries: 'I don't think Sales Managers should...'; 'I expect you to...' These can limit or restrict the way a person performs, but if expectations are high and positive they can raise the person's game, enabling them to perform to their full potential within their current role.

From the Business Team at Learning Curve; offering a range of unique development programmes for small businesses.

About the Author

Director of Studies at Learning Curve Home Study, one of the UK's leading distance learning providers. Learning Curve offers home study courses in a range of subjects, including Business development courses.

Nowadays, the marketplace is rife with risk, so you may wonder whether it’s a good idea to launch a business during a downturn, especially with layoff numbers mounting daily. When is it ever the right time to start a business?

Starting a business during an economic crisis sounds absolutely crazy but let’s put aside our concerns of risk for the moment, and think about some of the advantages. If you are afraid of losing your job due to the economic meltdown, starting a new business may be the perfect antidote. No more bosses, no more pink slips, and no more backstabbing by your fellow workers !

Why Start A Business Today?

There are more than 27 million businesses in the U.S. with less than 500 employees, of which 20 million have no employees, according to the Small Business Administration as mentioned in this page.

With millions of businesses having less than 500 employees, a good chunk of the American population depend on these small businesses for their livelihood. That’s why the SBA (Small Business Administration) is offering funds to help those who have a good plan for starting a business now. They may be worth checking out; they may have some solutions for the budding entrepreneur.

Opening a business is an exhilarating and frightening experience. But think of the rewards; when everybody is hunkering down, you will be very well positioned to take advantage of the inevitable recovery. These ‘no-employee’ businesses are usually family affairs where everybody has a share of the pie, but a sizable portion is owned by independent professionals who work alone. Again, if you were contemplating opening your own business, now may be a good time to do it, especially if you’ve got the resources. Could you be rewarded for bucking the crowd (and the trends)?

Some Advantages To Starting A Business During A Downturn

Let’s consider some of the advantages of starting a business during slow economic conditions:

1. Space is cheaper. Finding an office, a warehouse or even store space is much easier and much cheaper. If I were a commercial real estate owner, I’d rather rent out my space for less than have no tenants at all.
2. Great deals available. Businesses going under have to get what they can for their furniture and electronics. Auctions may offer ridiculously low prices for items that you’ll need.
3. Cheaper employees. A well trained professional will gladly accept a cut in salary rather than face unemployment. Same with clerical workers.
4. Cheaper services. There are all kinds of service providers who have to lower their prices due to the lack of demand. Think of advertising specialists who can prepare your marketing campaign for much less than normal.
5. Less competition. While your competition is waiting out the storm, why not make yourself available, ready to offer people what they need? Even now, though they may be a little harder to find, there are always people in need of a service or product who are willing to pay (albeit possibly for less). Go and find them, don’t wait for them to find you.

Are You Ready For Entrepreneurship?

Everyone can become an entrepreneur, but not everyone can be successful at it. It’s great to envision such possibilities, but before I reel you in on this idea, let it be known that opening a business is not for everyone. The reality is this: not everybody may be qualified or prepared to start and run a business — and just like with the stock market, if you make big mistakes and are not sure about what you’re doing on your own, you can get hurt….badly. And in a downturn, financial wipeout scenarios are all the more common, and dramatic. So if you’re doing this, you MUST have a good plan, you MUST have done your homework, and in many cases, you’ll NEED access to cash.

Depending on the type of business you’re interested in launching, you could potentially face an enormous amount of risk. Plus, in today’s tight credit era, banks are reluctant to loan money, even to the well-qualified clients. So if you’re serious about your business idea, where can you turn? Well, you can approach people you know; start with your network. Or you could use some of your savings (gasp) or show your solid business plan to some of your wealthy friends (if you’ve got any). Some people I know have started their businesses with credit cards, but going down this path is not the most prudent way to go. In today’s era, it may very well be that you’ll have to bootstrap yourself using your own savings or you’ll need to consider the type of business that won’t require money upfront, such as a service-oriented venture.

Despite all the challenges, you may still find this to be your calling. If so, get creative. People still have to eat, buy clothes, and have fun. You can negotiate lower prices from your providers — they are anxious to sell their surplus. Drum up business by visiting churches (why not, the pastor may become your best salesman), schools, hospitals, clubs, and make them an offer they can’t resist. Note however, that this may not be the best way to promote your business .

Most of all, plan your business very carefully by analyzing the trends in your neck of the woods. Creating a niche has never been easier. But certainly, look before you leap and read our tips for small businesses. This article is about contrarian thinking, and contrarians are often vastly rewarded for their guts (no guts, no glory), patience and shrewdness. Whenever we contemplate a particular endeavor, we need to weigh risks vs rewards — the only sane way to really make a financial decision.

This is a post from The Digerati Life.

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Frugality is quickly becoming a buzzword in America with people’s retirement dreams taking a bit of a detour into a ravine — and right before the holidays, too.  How very inconsiderate.

Here are a few tips and tricks for descroogifying what might be more modest holidays:

• Check out the library and paw through some December family-oriented magazines. Ones like Redbook, Family Circle, and Ladies Home Journal regularly have articles with lists of frugal tips, especially around the holidays.  These magazines also have the advantage that the tips don’t get terribly outdated the way some other magazines might.
• Hit thrift stores for little kids’ toys. (And for big people’s toys, too.)  When giving a gift, consider whether “new” can be extended to include “new to them.”  Antibacterial soap and water for plastics, or a gentle wash for cloth, can do wonders.
• Resist the temptation to buy inflatable holiday lawn ornaments. I’ve long thought that big huge inflatable snow globes and the like are tacky, and if you don’t have them, consider yourself all the richer.  (As will I.)
• Put up a website with pictures instead of sending out Christmas cards. If you already have your own web space, most hosting providers will allow you to password-protect a directory.  Then you can e-mail the link, and the username/password, to your friends and family.  Well, you can e-mail it to most of your friends and family, but your 97-year-old great uncle might still appreciate the snail mail.  If you don’t have a website or if this is too much trouble, then DropShots.com lets you upload up to 500 pictures and 20 two-minute videos for free, without ads, and lets you decide who you want to see them.
• Try your hand at cinnamon-applesauce ornaments. My wife tried some of the recipes over at HandMadeCountry.com and found the second recipe to work pretty well.  You might be the only one in your circle of friends who does this, and they’re inexpensive (especially if you get the cinnamon at Costco).
• Speaking of cinnamon, it’s really good for you, and it adds flavor to a number of ordinary drinks.  Sprinkle a little bit of cinnamon on top of the coffee before brewing.  Or, warm some apple cider on the stove with a cinnamon stick.
• Attend a school holiday chorus/band concert. The music is better than you might think.  If the rehearsals are anything like when I was in high school, there’s probably at least 30 hours of solid preparation that goes into these concerts from the beginning of the year to December.  There’s at least a little bit of magic that happens during that time.  And you can’t beat the price.
• If you’re going to give money as a gift, you might be able to get by with giving a little less for the same “wow” factor if you give shiny Presidential dollar coins instead of regular bills. (One for each President issued so far only sets you back eight bucks right now!)  Or, if you’re a really big spender, a full assortment of state quarters is only $12.50!
• If you’re after one of those “hot, must-have” toys that you’ll fight tooth and nail for, stop. Take a deep breath, and step away from the shopping cart.  You might even consider not going on eBay, because there will be opportunities for you to pay way more than retail for it.  (I did this with Wii Fit but I felt I had a better excuse.)  Instead offer it to your kids after Christmas when there will probably be plenty of them around.  Maybe wrap a picture of it with a note.
• Through all of this, remember that the greatest gift of all is freely given for anyone who asks for it.

(Photo credit: shutter.chick)

In my mind, Ben Stein will always best be remembered as the teacher from the classic 80’s movie “Ferris Bueller’s Day Off”.

But beyond his acting career, Ben Stein is a lawyer, economist and former presidential speech writer. He’s a smart guy and a good writer. I don’t always agree with his conclusions, but I think he nails it in his latest piece.

In his latest writing — an article in the New York Times — he asks, “Where Are the Grown-Ups When You Need Them?”

This is a great article which tells it like it is. Click here to read it.

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