What Does Money Trigger for You?

According to a journal article in Science, one's innate impulse does not encourage one to share, when thinking about money. Carey investiages this claim in "Just Thinking About Money Can Turn the Mind Stingy," in The Wall Street Journal. In an experiment involving 52 undergraduates, individuals who were primed to think about money worked on a difficult problem longer and were less likely ask for help or offer help. These "money thinking" students also placed themselves physically father from other people in a room (16 inches further apart). The researchers in this experiment suggest that the effect of money on people's interactions can be seen in everyday life, as those with finiancial resources often hire people instead of asking acquaintances for help. George Lowenstein, a professor of economics and psychology at Carnegie Mellon University in Pittsburgh, "'this study shows its pernicious side, how the pursuit of money can be isolating.'"

Build a stronger business by emphasizing beneficial aspects of your business other than money.

Just Because It's Popular Doesn't Make it Right to Bribe

According to a study first reported in Transparency International and later referenced in Winik's article, "World's Top Bribe-Payers", in Parade Magazine, the following nations’ businessmen were the most likely to offer bribes when conducting international business:

1. India
2. China
3. Russia
4. Turkey
5. Taiwan
6. Malaysia
7. South Africa
8. Brazil
9. Saudi Arabia
10. South Korea

The Swiss and the Swedes were the least likely to offer bribes.

Build a stronger business through ethical behavior.

Travel Savings Tips for Entrepreneurs

Airlines

• Prices will stay low on common destinations, due to carrier competition.
• Search sites that connect you to many other sites, such as farechase.com, kayak.com, mobissimo.com and Sidestep.com.
• You can save money buy buying a ticket directly from the airline's site.
  
• Bring anything you will want for the flight to prevent yourself from paying for things you already have.
• Keep you luggage within the airline's guidelines to avoid paying extra fees.
• Look into online agents. Sites such as Expedia, Orbitz, and Travelocity may charge a small fee; however, they commit to helping you if something goes wrong with your travel plans.
• Earn points through various programs to use towards awards at a later time.

Car Rental

• Orbitz provides a fast car booking experience.
• Understand what your personal insurance covers on a rental car. Consider paying with a Visa card, as all cars rented with this card will be covered.
• Do a thorough examination of the car before taking it off the lot for dents. Photograph the car when you return it. This will provide proof of the condition the car was returned in.
• Avoid pre-paying for gas through the rental office. This will cost you more than filling the car yourself, unless you return the car on "empty."
• Enjoy renting an exciting car, such as the vehicles in Hertz's "Fun Collection."

Cruises

• Pay the full bill as early as possible. If you wait, you may incur extra charges, such as a fuel-related surcharge (up to $10 a day).
• Check with a travel agent about repositioned ships. These have had to change their itineraries, usually due to weather, and therefore reduce their prices.
• Make sure your trip is covered with cancellation insurance.
• Hipper ships and low nightly rates can often be found at EasyCruise.

Hotels

• Calling a hotel at the last minute, or looking into Hotwire.com or Priceline.com may allow you to access prices below the initial published rates.
  
• Some hotel rooms, such as the Conrad London and select W Hotels, are coming equipped with am IPod docking station.

Rail

• Amtrak offers a free companion fare for a parent and a child who is college-hunting. Visit collegevisit.com/amtrak/.

Miscellaneous

• Carry the $3 Tide to Go stain remover pen to help stains disappear on the spot.
• Join a travel club with will gain you access to free upgrades, spa visits, and luxury trips.
• Research Rainforestalliance.org to learn about environmentally friendly trips.
• Trackitback.com offers a services where by affixing a sticker (from the company) to your items, the company with cover the cost of having your items returned you to.

Build a stronger business by using tips that make you and your budget go further.

Let Go of Aggravations is a Way to Increase the Quality of Your Life and Business

You can easily improve your life by limiting the amount of useless purchases and aggravations you allow into your life. The following items are just a few that clutter up your life, with suggestions on how to limit them:

• Calls from telemarketers - Gain back your time by registering with the National Do Not Call Registry at donotcall.gov (888-382-1222).
• Antibacterial soap - Scientists have proven that antibacterial soap is no more effective than regular soap. A good, 20-30 second, lather with any soap is effective.
• ATM fees - Search out places that do not charge you an ATM fee. For instance, Citibank does not charge its customers to use other back's ATMs, Wawa does not add a surcharge, and many grocery stores and drugstores do not change you to take out cash when you are using your debit card for a purchase.

What else can you eliminate to free up your time and energy? Make these decisions to build a stronger business.

Can Love Be a Science?

Is true love a science? Plenty of online dating sites say it is. Chemistry.com, which features a questionnaire developed by a biological anthropologist, is supposedly designed to predict a couple's compatibility based on traits of temperament and on brain chemistry. ScientificMatch.com, goes several steps further: they aim to use genetic testing to create that now-not-so-magical romantic chemistry (cheek swabbing kit, DNA processing, and a criminal and bankruptcy background check are all included in the $1,995.95 lifetime membership).

Both sites are an extension of the idea eHarmony.com originally developed, which suggests that certain areas of compatibility – like values and important experiences – are solid predictors of relationships success. "In the long haul, you want to be able to manage conflicts, celebrate positives and get through the day-to-day relationship. Our system is there to take care of that so you can now focus on who you find really attractive, that you feel really passionate about, says Gian Gonzaga, eHarmony's senior director of research and development.

Online dating is a $976 million annual industry in the U.S., according to estimates from the research firm Marketdata Enterprises. Sites like Chemistry.com and eHarmony are building brand identity when they target people who are looking for relationships instead of just dating. In turn, they are able to charge more per subscriber.

Creating a positive business relationship with your customers and partners also involves managing conflicts, celebrating wins, and making progress through day-to-day issues.

Build a stronger business by being aware of how you structure and maintain your business relationships and being open to constructive feedback.

A New Way to Pay

If you're ten years old, you can't use your own credit card to buy dog food at the local store. But now you can buy digital dog food for a online pet in much the same manner - using Kwedit. As reported in The New York Times, a new payment option has just become available to anyone, no matter how young they are. In the new system, a "Kwedit Promise" is used to buy items in games by FooPets and Puzzle Pirates. The items can be paid off later using a regular credit or debit card; with cash sent in a provided mailer; or by printing a barcode, taking it to your local 7-Eleven, and paying cash there.

FooPets, which has over a million active members and signs up 20,000 to 25,000 new members each day, lets users adopt lifelike digitally animated pets and then buy virtual goods for them - everything from a bag of puppy chow for $3 to a bungalow for $333 - using Kwedit. "Buy now, pay later" is always a seductive marketing tool. Users are encouraged to pay the actual funds they owe by the fact that they accrue a Kwedit score, similar to a regular credit score, and more Kwedit is extended to each user based on his or her history of repayment. But since the marginal cost of virtual goods is negligible, there's no serious risk of major financial loss if the promise is not repaid.

Like FooPets and similar systems - considered "nurturing games" that encourage responsibility and other adult lessons - Kwedit is a way to introduce young people to important ideas in a relatively safe environment.

You can build a stronger business by applying the "nurturing games" concept to your customer service.

Investing in Your People

As reported by Barry Meier in The New York Times, a set of internal marketing documents disclosed in the Fall of 2009 shows that the company Medtronic, a producer of medical devices, definitely had its own best interests in mind. The document showed revenue projections calculating how much the company could get back by paying for training fellowships for doctors. The answer? Up to 200%.

Although the direct-fund training program has since come under ethical scrutiny, it shows that, in terms of your bottom line, you can build a stronger business by investing in your people.

The New Style of Business Training

Before the recession, companies often sent their star managers to executive training programs held at business schools around the country. With budgets in the hundreds of millions, top professors, and a generous schedule, these programs usually focused on general leadership development, rather than company-specific problems.

Now, however, companies are searching for cheaper alternatives with a more immediate impact. "Companies are asking for external experts to come in and do something very specific," says Josh Brand, a former senior director of executive education at Babson College and co-founder of Freemont Learning, Inc., an executive development firm. In a time of economic uncertainty, the focus has shifted to moving the company - not just the individual - forward.

As a result, executive-education consultancies are scrambling to create customized programs that provide managers with the skills to weather the downturn and come out on top. "When you have trained leaders in bad economic times, it makes a world of difference," says Tim Bray, vice president and chief learning officer for Quintiles Transnational Corporation. And it's the consulting firms, rather than business schools, that are able to offer the flexibility and support companies are looking for. In addition, web-based courses, traditionally offered to middle management, are now being used for top-level executives as well. The Center for Creative Leadership in Greensboro, NC, has even started offering ready-to-use courses that, while less specific than an on-site visit, cost a fraction of the price.

This trend is a good one; you can build a better business by offering your management team focused training and education to achieve specific outcomes.

10 Steps. 3 Areas. Emerge from Recession with Success.

Want to emerge from the recession with your organization ready for success? Then The Forum Corporation says they have the answer for you -- 10 steps spanning financials, people, and climate.

“By looking at past recessions we’ve identified 10 steps that can make the difference between success and failure in managing through our current downturn, and they all come back to leadership,” said Ed Boswell, CEO of The Forum Corp. “Following these steps will be particularly valuable in organizations that are undergoing cost-cutting and layoffs, which challenge managers to do more with less.”

The 10 steps recommended are as follows:

Financials

1. Move quickly to reduce costs and control spending by narrowing focus. Winners in a downturn focus on a few critical priorities where they can develop a clear lead, and they walk away from bad business. Losers chase unprofitable sales in an attempt to hold their top line.
2. Refrain from across-the-board cutbacks, being sure to preserve areas that customers value most. Businesses that uniformly cut costs often find that they end up damaging their ability to sell and deliver their products and services. How do you find out what customers value most? Ask them.
3. Consider alternatives to layoffs. Downsizing tends to bolster the bottom line and stock price in the short term, but often creates long-term negative repercussions. Alternative strategies include cutting management bonuses, freezing salaries and reducing compensation options. It’s critical to clearly communicate the rationale and impact to employees.
4. Invest in opportunity. A bad economy can present bargains, both in new assets and in new talent. Good areas to invest in are R&D, marketing and customer-perceived quality. By contrast, investing in working capital, manufacturing and administration doesn’t pay off as well.
   
   People
5. Retain and develop top talent. High-impact workers are often more susceptible to being poached by a competitor in a downturn. Organizations that provide development experiences and rotational assignments have better employee retention rates.
6. Make sure everyone’s on the same page. When alignment on key goals is absent, performance suffers, according to studies on strategy execution. Top leaders frame an agenda and meet with key stakeholders to gain support and build commitment to overarching goals and values. Ineffective leaders let inter-office politics fester and hidden agendas dominate.
7. Encourage questions and new ideas by making it safe for employees to raise them. Leaders who admit they don’t have all the answers and ask for input empower their people to contribute their best ideas.
   
   Climate
8. Manage the heat. Leaders are often tempted in difficult times to relieve the organization’s stress by making unilateral, tough decisions. That’s often a mistake. Leadership by dictate often doesn’t take because it lacks a broad base of support, and it often eliminates constructive conflicts that challenge the status quo and fuel good decision-making.
9. Communicate authentically. Strong leaders acknowledge the challenges they struggle with and, by doing so, build trust among followers. Rather than being a sign of weakness, it’s a sign of strength.
10. Create a positive vision and attitude that acknowledges reality. Businesses at the top of their markets often fall while “sleeper” companies sometimes jump to the top in a tough economy. When leaders exercise discipline and focus by mobilizing employees to respond to customers’ interests and values, they increase the chance that, when the downturn ends, they’ll come out on top.

Engage your managers to discuss and adopt these steps in your organization and you'll build a stronger business even in the toughest of economies.

Online Learning Pros and Cons

The Internet has made the online learning experience much like that in a real classroom. In the fall of 2006, 3.5 million students were taking online courses, up 10% from the previous year, according to Sloan Consortium, a nonprofit group that studies trends in online learning. Today, more than two-thirds of all higher education institutions offer online classes.

Professors and students have more flexibility learning online; however, there are disadvantages. Online professors are working just as hard as full time professors who meet with their students in person, but are being paid less. Many professors who do online learning are part timers, typically getting paid $1,000 to $1,500 to teach a course while a full time professor gets about ten times more than that, according to Professor Ruth at George Mason University. Spencer Anderson, an adjunct professor at North Lake College, says he was supposed to teach two traditional courses with about 12 students each but many students chose to take the online course, so he ended up teaching 40 students online and was only paid for one course, which has effected his income.

The biggest growth in online teaching has been at two-year colleges, and public colleges are at the forefront, according to the Sloan Consortium. The University of Phoenix has about 12,500 online faculty members. Online teaching gives teachers the opportunity of having a flexible schedule and supplemental income, while maximizing profits for the universities by decreasing expenses on salaries.

Building a stronger business is about scaling up, and there's a lot to be learned from the virtual education model.

More Choices for Cell Phone Customers

When most people buy a cell phone, they are also locked into the carrier providing service for that phone.

According to The New York Times article, "Locked vs. Unlocked: Opening up Choice", Apple's iPhone has caused much controversy lately as customers who purchase the phone are immediately locked into AT&T's service.

As a result, Apple claims nearly one in every six iPhones sold in the U.S. were bought with the intention of unlocking it.

Despite updating their operating systems, Apple has been unable to stop programmers from unlocking the iPhone, calling into question the legal limitations of such a practice.

Some say unlocking a phone violates the company's warrantee, while others imply that it is illegal. Yet no one knows for sure, as the laws surrounding the issue are unclear.

According to Kyle Matthews, 25-year-old co-founder of ModMyiFone.com, unlocking an iPhone is very simple, requiring less than an hour to complete.

The amount of attention iPhone unlocking is receiving, is a good thing according to legal scholar, Professor Susan Crawford. It will allow Americans to see the choice they have when it comes to cell phone service providers.

When customer demand turns to customer revolt, leaders who want to build a stronger business find ways to adapt and be flexible rather than break.

Shopper Calculations Often Wrong

According to The New York Times article by Alex Mindlin, “A Math Test for Bargain Hunters”, 59% of bargain hunters incorrectly compute sales percentages.

In a study by Florida researchers, shoppers were more likely to buy an item on sale for the second time, than the same item on sale for a higher, but equivalent amount.

A product on sale for 33% of a 25% discount would attract more shoppers than a product with a 50% discount. Although they are both offer half off, shoppers incorrectly added the first sale to be a 58% discount!

Taking advantage of customer perceptions help you build a stronger business.

Pay for Performance a Bad Idea

Harvard economist, Roland G. Fryer, has devised a plan to keeping inner city children motivated to succeed in school. The controversial new program would give fourth and seventh graders from lower income families, $100 to $500 for performing well on ten tests throughout the school year.

In The New York Times article by Joseph Berger, “Some Wonder if Cash for Good Test Scores is the Wrong Kind of Lesson”, advocates of the program say similar incentive programs in countries like Mexico have increased school attendance. Others believe the program will not only help underprivileged children, but children from all economic backgrounds by creating a driven, highly motivated school environment.

Opponents of the program believe that instead of being motivated by a love of learning and an inner desire to succeed and create better opportunities for themselves and their families, children would only be motivated by money.

Other opponents like Suzanne Windland, a Queens resident and mother of three, believe the program is unfair as it only favors lower-income children, which could spur resentment among the other classmates who don’t qualify for the program.

Recycling Can Save Your Life

According to the Men’s Health article, “Energy-saving lightbulbs”, government scientists believes compact fluorescent bulbs, which contain mercury, could one day poison us.

Apart from standard recycling to prevent soil and water contamination, Ikea is also accepting bulbs at their store for free.

Visit http://lamprecycle.org for more information.

Natural Solutions Help Save Money

According to the Men’s Health article, “A Clean Sweep”, ammonia-based cleaning products can cause asthma attacks.

Homemade products can work just as effectively. Coffee grounds mixed with compost mulch can open drains, vegetable oil and lemon juice work as a glass cleaner, and simmering cinnamon leaves and cloves become an air freshener. Who knew?

When you’re building a stronger business, DIY is often an economic route.

Microfinance Provides More for Entrepreneurs

The opportunities microfinance has created in developing countries around the world have not gone unnoticed by Citigroup Inc., who has just launched their Citi Microfinance Donor Fund. The goal of the charitable fund, according to Kristin McNamara’s article in The Wall Street Journal, “Citi Fund Backs Entrepreneurs” is to prompt the development of microfinance organizations that are too small to cover the cost of their own operations. The fund allows wealthy philanthropists to provide substantial financial support for poor entrepreneurs in the developing world who are unable to get support from banks. Depending on the success of the Citi Microfinance Donor Fund, Citigroup plans to open a second microfinance fund and other special interest funds. Microfinancing is yet another way to improve the entrepreneur ecosystem and Build a Stronger Business community.

Microfinancing Program Builds Entrepreneur Ecosystem

The opportunities microfinance has created in developing countries around the world have not gone unnoticed by Citigroup Inc., who has just launched their Citi Microfinance Donor Fund.

The goal of the charitable fund, according to Kristin McNamara’s The Wall Street Journal article, Citi Fund Backs Entrepreneurs is to prompt the development of microfinance organizations that are too small to cover the cost of their own operations. The fund allows wealthy philanthropists to provide substantial financial support for poor entrepreneurs in the developing world who are unable to get support from banks.

Citigroup has required a minimum donation of $100,000 to their fund, which they hope will allow them to maintain serious donors. Although microfinance donors cannot receive the same recognition available from other charitable giving, they will receive an income tax deduction and will be able to decide where to direct their donations at a later date.

Depending on the success of the Citi Microfinance Donor Fund, Citigroup plans to open a second microfinance fund and other special interest funds.

Microfinancing is yet another way to improve the entrepreneur ecosystem and build a stronger business community.

Review Your Priorities to Build A Stronger Business

The article “Final Take” from The New York Times What’s Offline section reveals some startling research about people’s spending priorities.

According to research from AllianceBernstein published in Money magazine, some 58 percent of parents “spent more on restaurants and takeout last year than they saved for college.”

Look at your priorities and long term plans this year and see how they compare with your overall strategy for building a stronger business.

Stingy by Nature

According to a journal article in Science, when it comes to money, sharing isn't our natural impulse. Benedict Carey reports on this claim in "Just Thinking About Money Can Turn the Mind Stingy," in The Wall Street Journal. In an experiment involving 52 undergraduates, individuals who were primed to think about money worked on a difficult problem longer and were less likely ask for help or offer help. These "money thinking" students also placed themselves physically father from other people in a room (16 inches farther apart). The researchers in this experiment suggest that the effect of money on people's interactions can be seen in everyday life, as those with financial resources often hire people instead of asking acquaintances for help. George Lowenstein, a professor of economics and psychology at Carnegie Mellon University in Pittsburgh, says "'this study shows its pernicious side, how the pursuit of money can be isolating.'"

Build a stronger business by emphasizing aspects of business other than money.

How to Really Scare Away Business

Skype provides a cheap way for people around the world to make phone calls through the Internet. So a move by the United Arab Emirates to shut down the Internet phone provider was greeted with outrage.

The crackdown was unannounced and prompted by Etisalat, the primary telecom and Internet provider for the Emirates. The company was losing money to Skype and other Internet phone companies. Its rationale for the shutdown was that Skype and other Internet phone companies had no license to sell phone service in the Emirates.

The local press went wild. An editorial in a newspaper considered to be pro-government, Gulf News, complained that the ban would stifle technology that should be embraced. Expatriates railed against the shutdown and complained it hurt foreign businesses and families.

Predictably, Etisalat’s profitability rose after the ban. Its second quarter profits jumped $403 million, 30 percent more than the same period a year earlier. Its third quarter profits were even more spectacular at $427 million, a 41 percent increase.

But the UAE is far from the only country to ban Internet telephony. Bahrain is the only Gulf state that has not made the service illegal.

Harvard law professor John Palfrey, who has studied Internet censorship, says he has received several reports of Internet telephony blockage or censorship in a wide variety of countries from North Africa, China, Southeast Asia and former Soviet republics.

Palfrey says blocking efforts by countries ultimately fail because people will always find ways around a ban. He advocates finding ways to monetize the new technology even at the expense of the “old industry”.

Unfair bans may kill competition, but they also prevent the betterment of business. If you have competition, there is constant pressure to improve your services and technology; the customers win and so do the best businesses. As with any decent service, if it’s good enough people will find a way to use it. If you learn to compete with strong competition, you’ll build a stronger business.