Sunday, June 22, 2008

Why Small Businesses Fail and How to Avoid the Pitfalls


By: Lynn Green

It is a well known fact that most small businesses fail within the first year and many fail within the first 6 months of opening. I just read a book called The E Myth Revisted by Michael E. Gerber. I would recommend it to every new business. In fact, it should be required reading for every business. It outlines the reasons most small businesses fail and gives a plan which, if followed, will significantly decrease the probability of the businesses faltering.

The crux of Michael Gerber's argument is that small businesses literally need to think through every operation and ultimately set themselves up the way franchises do. He used McDonalds as his primary example. If a person does not really have a business mind, yet purchases a McDonalds franchise, the new owner should still succeed because McDonalds trains all new owners and they have nothing to plan. It's a "turn key" business so all they need to do is follow the business manual and the business will literally run itself.

What Michael Gerber said is that every small business needs to sit down and write out such an in depth plan, that if the originator of the business were to die today or tomorrow, someone could pick up the Operations Manual, read it, follow it to the letter, and succeed.

I'll end with this. I enjoy eating healthy meals and being in the company of people who are health conscious. So imagine my happiness when, approximately a year ago, a black-owned restaurant opened up in a small neighboring town called Mt. Rainier. That particular strip of Mt. Rainier has several black owned businesses and I often go down there simply to support them.The small, black owned restaurant took off quickly. The black and white community supported them and the house was always packed. But there were some issues:

a. It could easily take an hour and a half or more from the time you ordered to the time you got your meal. Why was this? It was partly because they made everything from scratch, fresh. When you got your meal, it was beyond delicious. However, they should have found a way to have the ingredients at least chopped up and ready to cut down on wait time. I'm positive there are things they could have done.

b. They were a "cash only" business. No credit cards or debit cards but people worked around that.

c. They went from being open 5 days per week to only opening on Fridays and Sundays. That was terribly disappointing and frustrating. They were over extended and apparently unwilling to hire and train new cooks. They were doing on the side catering which took time. And then they offered a few classes, some to teach people how to cook healthy meals and another health class. But the restaurant still was only open 2 days per week.

d. They started to experiment with and change recipes, yet not change the name of the meal being ordered. So, if I ordered lentil soup today, it would taste a particular way, but if I ordered it tomorrow, it would have a totally different taste. They did that often, in spite of complaints. Customers even advised them to simply add on other names, while keeping the variations. So, for example, there could be the base line lentil soup...and a person could elect to order lentil soup with "x" added to it.

e. They would take popular items off the menu for no known reason. They certainly did not adhere to the "if it ain't broke, don't fix it" rule.

f. Next, they started putting signs up on the door saying that they would only open one day a week, on Sundays and that families, etc. who wanted to eat there should call and make reservations.

It was at the point that I personally threw in the towel and gave up. Their vegetarian and vegan food was beyond delicious. The cooks were exceptionally clean. The place was spotless. The atmosphere there was heavenly. I loved it. But somebody did not know what they were doing. After several months, I was curious about them and called. Their phone was disconnected. I drove down there.

There was a huge sign on the door from town administrators saying that they had not updated their Use and Occupancy Permit and that they would need to renew before continuing to do business there (the permit costs about $135).

The place now looks like death valley. All the beautiful furniture and equipment is still there. The floors are as immaculately clean as they always have been. Yet, no one has been there in months and no one knows where they are. The rent in that place is at least $3,500 per month, maybe more. And I imagine they took out loans to buy all that expensive equipment in the kitchen. With no business coming in, they are lost.

What a sad, sad situation because they could have made it. The community loved them and supported them. Had they stayed open until 9:00 at night, they would have had customers to occupy the space. They simply did not know how to run a business.

I still hang on to their menu in hopes that a miracle will happen and that they will reemerge.I can't help but wonder how many other black businesses out there were "meant" to make it but did not because the owners simply had no clue as to how to run a business. Read The E Myth Revisited. Great book. Very inspirational. I highly recommend it, especially to small businesses that are in the process of failing.

Friday, October 12, 2007

First Suggestion: Forex Trading

Sorry, that I have not posted here yesterday. I’ve been busy. I’m a bit busy today as well, so this will be a short intro post.

Ok. It’s time to deal with one of the concrete ways black folks can make money.

Foreign currency trading.

The Foreign Currency market (Forex for short) is the largest market in financial assets, period. Any other market: Oil, commodities, and, in particular stocks, pales before the Forex market.

The market is open on a 24 hour basis from Sunday afternoon to Friday afternoon New York time. What is traded are words: US Dollars against Euros against Yen etc. None of these different currencies are backed by anything or are physical things. Nonetheless, they are used to exercise power.

Getting into the Forex trade is easy, not that risky, and requires almost no capital these days. Moreover the leverage is astounding.

While in the stock market one may work with a margin of 50% (that is the broker loans you 50% of the purchase price of the shares you want to buy), in the Forex market you only have to put up 1% or 2% of the amount of the currency you are trading. That means that with $100.—one can control $10,000.--. Of course I would not recommend to anyone to use this kind of leverage.

The other thing that is of a great advantage is that there are no brokers or brokers fees involved. Market makers solely make their profit of the spread. That is the difference between the purchase price of a particular currency and its sale price. The spread is usually negligible.

Given the great amount of leverage involved, your capital can get lost as quickly as you can make it. This is why you should not begin with more than $100.—and at the most with $1,000.--. The most crucial thing here is money management. That is, finding the right leverage to work with. 20% should be ok for a beginner.

More later…

Wednesday, October 10, 2007

The Essence Of Money

"mon•ey (mŭn'ē)
n., pl. -eys or -ies.

1. A medium that can be exchanged for goods and services and is used as a measure of their values on the market, including among its forms a commodity such as gold, an officially issued coin or note, or a deposit in a checking account or other readily liquefiable account.

2. The official currency, coins, and negotiable paper notes issued by a government.
3. Assets and property considered in terms of monetary value; wealth."


A medium that can be exchanged for goods and services.

Let that sink in.

If I have money I can get you deliver to me goods and services. Cars, food, houses, maid services, plummer services. I can get someone to clean my toilet, deliver pizza, provide me with sex, whatever.

That means I can get people to do things for me and give me things. That’s power, ain’t it?

"Power : possession of control, authority, or influence over others"

If the ability to pass out money confers power, then every unit of money is an expression of a unit of the conferee’s power.

Power is a social relationship. It is a social relationship that confers control onto someone over someone else.

So let’s call money by it’s real name: Each unit of money (one Dollar, one Euro, one Yen, one Yuan) then is, logically, a unit of an Expression of Power. Less confusion. Let’s stick with this term for now.

So how do the folks who possess these units of Expression of Power obtain them? Do they dig them up somewhere?

Nope.

They are created out of nothing physical and they are not physical. They are just words. The authority to create these words here in the United States has been conferred to the Federal Reserve. To create them out of nothing. The Federal Reserve is the central bank (the “Boss” bank) of all the banks in this country. It is owned by the big banks such as Chase, and the Bank of America. Anytime these banks need some of the Power words they get them from the Boss Bank. The Fed.

Now imagine that each one of you could create unlimited amounts of units of Expression of Power. At will. Out of nothing. You could pass them out and get whatever you wish in return. That’s about as close as to the power of a god that you can get to. A wet dream, ain't it?

So what is this power based on? Well, take out a dollar bill (if you have one) and look at it. Right up there to the upper left of slave master number one, George Washington, it says “This Note Is Legal Tender for All Debts, Public and Private”. Note the term “legal”. Legal means by law. Law is a rule of compulsion. The ability to compel is power, and that legal compulsion is based upon armed force.

That means that I can obtain a car from you. You might want payment in gold, oil, or paper mulch in exchange. And I might agree, but if I decide to give you banknotes instead, and you don’t accept them, because I tendered these notes to you and because they are legal tender for all debts, public and private, I still will have extinguished my debt to you and be able to keep the car.

Thus, the value of money, of these units of Expression of Power are based upon compulsion, and the ability to compel is based on the force of law, which in turn is based on the organized force of arms. That is, military power.

Again: The value of any particular brand of money is ultimately based on military power.

So what does this all have to do with the how and where of us black folk acquiring money?

Well, stay tuned.

Tuesday, October 9, 2007

Move On Out

Ok. Before we get into the meat of things, let’s talk about some basic truths.

First, it is vital to understand that we are involved in a war. If you believe that the white supremacists packed up their bags, relinquished power, and got out of Dodge in the late 1960s because MLK lead a movement of Negro supplication, I got a bridge in Brooklyn to sell you.

King was assassinated when he moved from Negro supplication to the advocacy of black power, of naked force in resistance.


"These are revolutionary times. All over the globe men are revolting against old systems of exploitation and oppression and out of the wombs of a frail world new systems of justice and equality are being born. The shirtless and barefoot people of the land are rising up as never before. 'The people who sat in darkness have seen a great light.' We in the West must support these revolutions." Beyond Vietnam: A Time to Break Silence, By Rev. Martin Luther King, 4 April 1967


Wars are only about military conflict as an after thought. Read Sun Tzu. The application of violence in war is always a last resort measure. The Japanese attacked the United States in 1941 because the United States was conducting economic warfare against the Japan Empire and sooner or later would have strangled the Japanese into submission.

The same with black folk.

There is a reason we are economically behind most everybody.

Which is…

You have to understand that white people in general and the white folks who run this system do not want to see us collectively succeed economically.

Let’s repeat that: They do not want to see us as a people collectively succeed economically.

You need proof? Well, open your eyes and look around you.

Since we are engaged in an economic war which has been thrust upon us, we need to function like economic soldiers. Disciplined, with clear plans and objectives. And since we are engaged in a war with the most awesome organized economic force in the history of humankind, we have to do what all disorganized weaker forces must do: Approach this economic war like an economic guerilla.

A guerilla carries only what fits on his/her back. A guerilla is above all flexible. A guerilla starts off with no weapons and needs to manufacture none. Why? Because a guerilla forces his/her enemy to be the source of his/her supplies.

Guerilla Economics.

Another thing. Warfare is about serious business. Particularly economic warfare. You can not win if you do not have a winning team. That means, if you have a spouse, partner, lover, whatever who are not as disciplined as you are and have to be and have no inclination to become such, who are spendthrifts and financial black holes, if you want to be a survivor or even successful in this arena of economic warfare, you have to ditch them. Now.

Remember, everything we do henceforth is for our children, grand-children, and great-grand children. They are supposed to reap the benefits of our efforts.

Lastly, if you came here 'cause you think I've got all the answers, I've got another bridge to sell you. I think I have some answers. However, we're going to have to figure this entire thing out together.

Ok. Let that sink in for now.

I got some homework for you to do.

I want each one of you who is a registered member to let us know what you think money is.

Make it two sentences or less. Certainly no more. Focus.

Use the comments section.

Do it by tomorrow evening.

Monday, October 8, 2007

Let's Focus...

I'm sure all that background info on energy is very useful, but this is what we need to know:

How can we get into the energy game as an individual black person who needs to generate a pretty much immediate benefit, has less than $1,000.-- in upfront investment ($100.-- would even be better), and enable that person to make a comfortable living.

Guerrilla economics.

Rack y'alls brains on that one.

In the meantime, I'm gonna get some sleep and start on my contribution tomorrow.

See you all later on Tuesday.

Do you know what time it is?

The time is NOW.

Sunday, October 7, 2007

Welcome

Welcome to the Assault On Black Powerlessness.

This site is about walking the walk of our talk over at the Assault On Black Folk's Sanity.

Liberation means we got to use every resource that is available to us. The primary one being our brains.

Don't believe for a minute that economic advancement is the be all and end all. Everything that you have worked for, and everything that you will work for henceforth can be taken from us at a minute's notice. It ain't gonna take but five minutes either.

Nonetheless, we got to do it. We have to move forward and do as Booker T. Washington, the Hon. Marcus Garvey, and so many others told us to do.

Do for self.

Remember that every advance you make in life is anathema, a set back, to white supremacists.

Never sleep.

To those of you who think that there is no such thing as the System of Racism/White Supremacy: that's ok, too. We want to see African people thrive whatever they believe. As long as they don't believe in selling us down the river.

The economic strategies to be developed here are akin to guerrilla war tactics.

They have to be flexible, implementable by individuals or small teams, require little or no start-up capital, be able to sustain a comfortable life-style, and enable each of us to pull another African up behind us.

Remember, as long as even one of us is mistreated and denied opportunity, all of us are mistreated and denied opportunity. For if we let it happed to one of us, where will it stop? What makes you, and you, and you, and me, immune to this system of mistreatment?

I hope all of you will not only come to learn, but that you will come to teach. Help develop ideas and strategies.

My personal initial focus will be on the trading and creation of money.

I have no idea what Craig Nulan will talk about. He is, as am I, and as more folks come on line as contributors, others, free to develop whatever ideas they have.

As on the Assault On Black Folk's Sanity, I expect that there will be a lot of creative tension and dissension.

There will be no comment moderation here. This is the real world. The real world is not censored.

As to commenting. We'll use the Halscan commenting system for a while.

If it turns out to be unwieldy, we'll switch back to Blogger.

See you all on Monday or Tuesday with my first post.