If you Google “how to be an Entrepreneur” you get a lot of mindless clichés like “follow your passion” or “think big.” That’s not what you are going to get here.
Again, for me, being an “entrepreneur” doesn’t mean starting the next “Faceook.” Or even starting any business at all. It means finding the challenges you have in your life, and determining creative ways to overcome those challenges. However, in this post I focus mostly on the issues that come up when you first start your company. These rules also apply if you are taking an entrepreneurial stance within a much larger company (which all employees should do).
For me, I’ve started several businesses. As I’ve described in the rest of this blog, some have succeeded, many have failed. I’m invested in about 13 private companies. I’ve advised probably another 50 private companies. Along the way I’ve compiled a list of rules that have helped me deal with every aspect of being an entrepreneur in business and some in life.
[Btw, Claudia thinks I shouldn’t put this post up. This is going to be a chapter in a book I am self-publishing in a week or so: “How to be the Luckiest Man Alive”. But I’m trying to price the book for free on Kindle so why not? Plus, once I write something, I can’t help myself. I have to put it up.]
Here’s the real rules:
A) It’s not fun. I’m not going to explain why it’s not fun. These are rules. Not theories. I don’t need to prove them. But there’s a strong chance you can hate yourself throughout the process of being an entrepreneur. Keep sharp objects and pills away during your worst moments. And you will have them. If you are an entrepreneur and agree with me, please note this in the comments below.
B) Try not to hire people. You’ll have to hire people to expand your business. But it’s a good discipline to really question if you need each and every hire.
C) Get a customer. This seems obvious. But it’s not. Get a customer before you start your business, if you can. (see, “the Easiest Way to Succeed as an Entrepreneur”)
CA) Follow me on Twitter.
D) If you are offering a service, call it a product. Oracle did it. They claimed they had a database. But if you “bought” their database they would send in a team of consultants to help you “install” the database to fit your needs. In other words, for the first several years of their existence, they claimed to have a product but they really were a consulting company. Don’t forget this story. Products are valued higher than services.
E) It’s OK to fail. Start over. Hopefully before you run out of money. Hopefully before you take in investor money. Or, don’t worry about it. Come up with new ideas. Start over.
F) Be profitable. Try to be profitable immediately. This seems obvious but it isn’t. Try not to raise money. That money is expensive.
G) When raising money: if it’s not easy then your idea is probably incapable of raising money. If its easy, then take as much as possible. If its TOO easy, then sell your company (unless you are Twitter, etc).
H) The same goes for selling your company. If it’s not easy, then you need to build more. Then sell. To sell your company, start getting in front of your acquirers a year in advance. Send them monthly updates describing your progress. Then, when they need a company like yours, your company is the first one that comes to mind.
I) Competition is good. It turns you into a killer. It helps you judge progress. It shows that other people value the space you are in. Your competitors are also your potential acquirors.
J) Don’t use a PR firm. Except maybe as a secretary. You are the PR for your company. You are your companys brand. You personally.
K) Communicate with everyone. Employees. Customers. Investors. All the time. Every day.
L) Do everything for your customers. This is very important. Get them girlfriends or boyfriends. Speak at their charities. Visit their parents for Thanksgiving. Help them find other firms to meet their needs. Even introduce them to your competitors if you think a competitor can help them or if you think you are about to be fired. Always think first, “What’s going to make my customer happy?”
M) Your customer is not a company. There’s a human there. What will make my human customer happy? Make him laugh. You want your customer to be happy.
N) Show up. Go to breakfast/lunch/dinner with customers. Treat.
O) History. Know the history of your customers in every way. Company history, personal history, marketing history, investing history, etc.
P) Micro-manage software development. Nobody knows your product better than you do. If you aren’t a technical person, learn how to be very specific in your product specification so that your programmers can’t say: “well you didn’t say that!”
Q) Hire local. You need to be able to see and talk to your programmers. Don’t outsource to India. I love India. But I won’t hire programmers from there while I’m living in the US.
R) Sleep. Don’t buy into the 20 hours a day entrepreneur myth. You need to sleep 8 hours a day to have a focused mind.
S) Exercise. Same as above. If you are unhealthy, your product will be unhealthy.
T) Emotionally Fit. DON’T have dating problems and software development problems at the same time. VCs will smell this all over you.
U) Pray. You need to. Be grateful where you are. And pray for success. You deserve it. Pray for the success of your customers. Heck, pray for the success of your competitors. The better they do, it means the market is getting bigger. And if one of them breaks out, they can buy you.
V) Buy your employees gifts. Massages. Tickets. Whatever. I always imagined that at the end of each day my young, lesbian employees (for some reason, most employees at my first company were lesbian) would be calling their parents and their mom and dad would ask them: “Hi honey! How was your day today?” And I wanted them to be able to say: “It was the best!” Invite customers to masseuse day.
W) Treat your employees like they are your children. They need boundaries. They need to be told “no!” sometimes. And sometimes you need to hit them in the face (ha ha, just kidding). But within boundaries, let them play.
X) Don’t be greedy pricing your product. If your product is good and you price it cheap, people will buy. Then you can price upgrades, future products, and future services more expensive. Which goes along with the next rule.
Y) Distribution is everything. Branding is everything. Get your name out there, whatever it takes. The best distribution is of course word of mouth, which is why your initial pricing doesn’t matter.
YA) Follow me on Twitter.
Z) Don’t kill yourself. It’s not worth it. Your employees need you. Your children or future children need you. It seems odd to include this in a post about entrepreneurship but we’re also taking about keeping it real. Most books or “rules” for entrepreneurs talk about things like “think big”, “go after your dreams”. But often dreams turn into nightmares. I’ll repeat it again. Don’t kill yourself. Call me if things get too stressful. Or more importantly, make sure you take proper medication
AA) Give employees structure. Let each employee know how his or her path to success can be achieved. All of them will either leave you or replace you eventually. That’s OK. Give them the guidelines how that might happen. Tell them how they can get rich by working for you.
BB) Fire employees immediately. If an employee gets “the disease” he needs to be fired. If they ask for more money all the time. If they bad mouth you to other employees. If you even think they are talking behind your back, fire them. The disease has no cure. And it’s very contagious. Show no mercy. Show the employee the door. There are no second chances because the disease is incurable.
CC) Make friends with your landlord. If you ever have to sell your company, believe it or not, you are going to need his signature (because there’s going to be a new lease owner)
DD) Only move offices if you are so packed in that employees are sharing desks and there’s no room for people to walk.
EE) Have killer parties. But use your personal money. Not company money. Invite employees, customers, and investors. It’s not the worst thing in the world to also invite off duty prostitutes or models.
FF) If an employee comes to you crying, close the door or take him or her out of the building. Sit with him until it stops. Listen to what he has to say. If someone is crying then there’s been a major communication breakdown somewhere in the company. Listen to what it is and fix it. Don’t get angry at the culprit’s. Just fix the problem.
GG) At Christmas, donate money to every customer’s favorite charity. But not for investors or employees.
HH) Have lunch with your competitors. Listen and try not to talk. One competitor (Bill Markel from Interactive once told me a story about how the CEO of Toys R Us returned his call. He was telling me this because I never returned Bill’s calls. Ok, Bill, lesson noted.
II) Ask advice a lot. Ask your customers advice on how you can be introduced into other parts of their company. Then they will help you. Because of the next rule…
JJ) Hire your customers. Or not. But always leave open the possibility. Let it always dangle in the air between you and them. They can get rich with you. Maybe. Possibly. If they play along. So play.
KK) On any demo or delivery, do one extra surprise thing that was not expected. Always add bells and whistles that the customer didn’t pay for.
LL) Understand the demographic changes that are changing the world. Where are marketing dollars flowing and can you be in the middle. What services do aging baby boomers need? Is the world running out of clean water? Are newspapers going to survive? Etc. Etc. Read every day to understand what is going on.
LLa) Don’t go to a lot of parties or “meetups” with other entrepreneurs. Work instead while they are partying.
MM) But, going along with the above rule, don’t listen to the doom and gloomers that are hogging the TV screen trying to tell you the world is over. They just want you to be scared so they can scoop up all the money.
NN) You have no more free time. In your free time you are thinking of new ideas for customers, new ideas for services to offer, new products.
OO) You have no more free time, part 2. In your free time, think of ideas for potential customers. Then send them emails: “I have 10 ideas for you. Would really like to show them to you. I think you will be blown away. Here’s five of them right now.”
OOa) Depressions, recessions, don’t matter. There’s $15 trillion in the economy. You’re allowed a piece of it:
PP) Talk. Tell everyone you ever knew what your company does. Your friends will help you find clients.
QQ) Always take someone with you to a meeting. You’re bad at following up. Because you have no free time. So, if you have another employee. Let them follow up. Plus, they will like to spend time with the boss. You’re going to be a mentor.
RR) If you are consumer focused: your advertisers are your customers. But always be thinking of new services for your consumers. Each new service has to make their life better. People’s lives are better if: they become healthier, richer, or have more sex. “Health” can be broadly defined.
SS) If your customers are advertisers: find sponsorship opportunities for them that drive customers straight into their arms. These are the most lucrative ad deals (see rule above). Ad inventory is a horrible business model. Sponsorships are better. Then you are talking to your customer.
TT) No friction. The harder it is for a consumer to sign up, the less consumers you will have. No confirmation emails, sign up forms, etc. The easier the better.
TTA) No fiction, part 2. If you are making a website, have as much content as you can on the front page. You don’t want people to have to click to a second or third page if you can avoid it. Stuff that first page with content. You aren’t Google. (And, 10 Unusual Things You Didn’t Know About Google)
UU) No friction, part 3. Say “yes” to any opportunity that gets you in a room with a big decision maker. Doesn’t matter if it costs you money.
VV) Sell your company two years before you sell it. Get in the offices of the potential buyers of your company and start updating them on your progress every month. Ask their advice on a regular basis in the guise of just an “industry catch-up”
WW) If you sell your company for stock, sell the stock as soon as you can. If you are selling your company for stock it means:
a. The market is such that lots of companies are being sold for stock.
b. AND, companies are using stock to buy other companies because they value their stock less than they value cash.
c. WHICH MEANS, that when everyone’s lockup period ends, EVERYONE will be selling stock across the country. So sell yours first.
XX) Ideas are worthless. If you have an idea worth pursuing, then just make it. You can build any website for cheap. Hire a programmer and make a demo. Get at least one person to sign up and use your service. If you want to make Facebook pages for plumbers, find one plumber who will give you $10 to make his Facebook page. Just do it.
YY) Don’t use a PR firm, part II. Set up a blog. Tell your personal stories (see “33 tips to being a better writer” ). Let the customer know you are human, approachable, and have a real vision as to why they need to use you. Become the voice for your industry, the advocate for your products. If you make skin care products, tell your customers every day how they can be even more beautiful than they currently are and have more sex than they are currently getting. Blog your way to PR success. Be honest and bloody.
ZZ) Don’t save the world. If your product sounds too good to be true, then you are a liar.
ZZa) Your company is always for sale.
AAA) Frame the first check. I’m staring at mine right now.
BBB) No free time, part 3. Pick a random customer. Find five ideas for them that have nothing to do with your business. Call them and say, “I’ve been thinking about you. Have you tried this?”
CCC) No resale deals. Nobody cares about reselling your service. Those are always bad deals.
DDD) Your lawyer or accountant is not going to introduce you to any of their other clients. Those meetings are always a waste of time.
EEE) Celebrate every success. Your employees need it. They need a massage also. Get a professional masseuse in every Friday afternoon. Nobody leaves a job where there is a masseuse.
FFF) Sell your first company. Don’t take any chances. You don’t need to be Mark Zuckerberg. Sell your first company as quick as you can. You now have money in the bank and a notch on your belt. Make a billion on your next company.
GGG) Pay your employees before you pay yourself.
HHH) Give equity to get the first customer. If you have no product yet and no money, then give equity to a good partner in exchange for them being a paying customer. Note: don’t blindly give equity. If you develop a product that someone asked for, don’t give them equity. Sell it to them. But if you want to get a big distribution partner whose funds can keep you going forever, then give equity to nail the deal.
III) Don’t worry about anyone stealing your ideas. Ideas are worthless anyway. It’s OK to steal something that’s worthless.
IIIA) Follow me on twitter.
Questions from Readers
Question: You say no free time but you also say keep emotionally fit, physically fit, etc. How do I do this if I’m constantly thinking of ideas for old and potential customers?
Answer: It’s not easy or everyone would be rich.
Question: if I get really stressed about clients paying, how do I get sleep at night?
Answer: medication
Question: how do I cold-call clients?
Answer: email them. Email 40 of them. It’s OK if only 1 answers. Email 40 a day but make sure you have something of value to offer.
Question: how can I find cheap programmers or designers?
Answer: if you don’t know any and you want to be cheap: use scriptlance.com, elance.com, or craigslist. But don’t hire them if they are from another country. You need to communicate with them even if it costs more money.
Question: should I hire programmers?
Answer: first…freelance. Then hire.
Question: what if I build my product but I’m not getting customers?
Answer: develop a service loosely based on your product and offer that to customers. But I hope you didn’t make a product without talking to customers to begin with?
Question: I have the best idea in the world, but for it to work it requires a lot of people to already be using it. Like Twitter.
Answer: if you’re not baked into the Silicon Valley ecosystem, then find distribution and offer equity if you have to. Zuckerberg had Harvard. MySpace had the fans of all the local bands they set up with MySpace pages. I (in my own small way) had Thestreet.com when I set up Stockpickr.com. I also had 10 paying clients when i did my first successful business fulltime.
Question: I just lost my biggest customer and now I have to fire people. I’ve never done this before. How do I do it?
Answer: one on meetings. Be Kind. State the facts. Say you have to let people go and that everyone is hurting but you want to keep in touch because they are a great employee. It was an honor to work with them and when business comes back you hope you can convince them come back. Then ask them if they have any questions. Your reputation and the reputation of your company are on the line here. You want to be a good guy. But you want them out of your office within 15 minutes. It’s a termination, not a negotiation. This is one reason why it’s good to start with freelancers.
Question: I have a great idea. How do I attract VCs?
Answer: build the product. Get a customer. Get money from customer. Get more customers. Build more services in the product. Get VC. Chances are by this point, the VCs are calling you.
Question: I want to build a business day trading.
Answer: bad idea
Question: I want to start a business but don’t know what my passion is:
Answer: skip to the post: “How to be the luckiest person alive”. Do the Daily Practice. Within six months your life will be completely different.
Question: I want to leave my job but I’m scared.
Answer: same as above question. The Daily Practice turns you into a healthy Idea Machine. Plus luck will flow in from every direction.
Final rule: Things change. Every day. The title of this post, for instance, says “100 Rules”. But I gave about 70 rules (including the Q&A). Things change midway through. Be ready for it every day. In fact, every day figure out what you can change just slightly to shake things up and improve your product and company.
Throughout the rest of this blog I have examples, ideas, rules, etc. In fact, it adds up to a lot more than 100 rules. Many of the rules above are repeated in other posts ahead but use this post as a cheat sheet. If you can think of more rules for me, add them to the comments. I’ll try and put them in the upcoming book.
http://www.businessinsider.com/the-100-rules-for-being-an-entrepreneur-2011-4
4/22/11
44 Ways to Reinvigorate Your Entrepreneurial Drive
Every entrepreneur enters the game rip-roaring and ready to go. Once the idea settles in that there is a lot of work involved — probably more than had been anticipated — some become burned out or feel they have lost that drive or spirit that once pushed them to succeed. It may be common, but it doesn’t mean that it’s time to hang up your hat and choose a new field. It means it is time to take action and get that drive back. Here are 44 ways that you can reinvigorate your entrepreneurial drive:
1. Read “Atlas Shrugged.”
2. Watch videos from TED.
3. Get a mentor.
4. Think about all the people your business helps — your family, your employees, your vendors, their families, etc.
5. Speak at an industry conference.
6. Go to another industry’s conference.
7. Tour a fellow entrepreneur’s business.
8. Share your dreams with a friend and let the conversation flow.
9. Take a vacation — the break will recharge the old batteries.
10. Be grateful for what you have already accomplished.
11. Take a marketing course.
12. Get a tattoo with your own company’s name or logo.
13. Teach an entrepreneurial class.
14. Meditate.
15. Recognize you are a rare breed. Really. Many people dream of being an entrepreneur, but only a select few actually pull it off.
16. Become a mentor.
17. Exercise regularly.
18. Regularly reward yourself for any and all progress.
19. Ask friends what good they think your business is doing for others.
20. Ask customers what you can do better, and what you already do great.
21. Have a party for all your customers. The “entrance fee” is simple: They must fill out a card on why your business is making a difference.
22. Think about having a “real job,” that will get your entrepreneurial drive going into overdrive.
23. Hire an intern to shadow you, and at the end of a few months report on their observations.
24. Repaint your office.
25. Introduce fun at the office — arm everyone with a Nerf gun!
26. Start a company-wide profit share. That will give everyone the entrepreneurial drive.
27. Volunteer your time and your staff’s time to help a needy cause.
28. Become your own “undercover boss.”
29. Keep a journal and record something you like about entrepreneurship every day.
30. Listen to “Eye of The Tiger” and exercise in a 1970s workout suit…doing windmills.
31. Read Fast Company magazine.
32. Take an accounting class.
33. Listen to an audio version of “Think and Grow Rich.”
34. Watch a video of Henry Ford’s biography.
35. Just know that you are the reason our economy will recover. It is not government, it is not even big business, it is you, the entrepreneur, who makes the economy grow.
36. List all the things you love about your work, and do it at the beginning and end of the day.
37. Have a daily company huddle — a five minute, standing, get charged up meeting.
38. Take a tour of Zappos.
39. Go to Berkshire Hathaway’s annual meeting and listen to Warren Buffett.
40. Read “The Toilet Paper Entrepreneur” (I know… that is self serving… but I promise it will reinvigorate your entrepreneurial drive!).
41. Surf the Harvard Business Review website.
42. Read the story of Gary Erikson’s Clif Bar company (called “Raising The Bar”).
43. Create a mastermind group.
44. Go work for someone else for a day.
This is just a partial list. I could go on and on listing things to reinvigorate your entrepreneurial drive. Do a different one every week or month if you need to, but keep doing them. It took a lot of courage, dedication, and dreaming to get where you are today. Oh, and don’t do #44, that one really stinks!
http://www.bnet.com/blog/smb/44-ways-to-reinvigorate-your-entrepreneurial-drive/4393
1. Read “Atlas Shrugged.”
2. Watch videos from TED.
3. Get a mentor.
4. Think about all the people your business helps — your family, your employees, your vendors, their families, etc.
5. Speak at an industry conference.
6. Go to another industry’s conference.
7. Tour a fellow entrepreneur’s business.
8. Share your dreams with a friend and let the conversation flow.
9. Take a vacation — the break will recharge the old batteries.
10. Be grateful for what you have already accomplished.
11. Take a marketing course.
12. Get a tattoo with your own company’s name or logo.
13. Teach an entrepreneurial class.
14. Meditate.
15. Recognize you are a rare breed. Really. Many people dream of being an entrepreneur, but only a select few actually pull it off.
16. Become a mentor.
17. Exercise regularly.
18. Regularly reward yourself for any and all progress.
19. Ask friends what good they think your business is doing for others.
20. Ask customers what you can do better, and what you already do great.
21. Have a party for all your customers. The “entrance fee” is simple: They must fill out a card on why your business is making a difference.
22. Think about having a “real job,” that will get your entrepreneurial drive going into overdrive.
23. Hire an intern to shadow you, and at the end of a few months report on their observations.
24. Repaint your office.
25. Introduce fun at the office — arm everyone with a Nerf gun!
26. Start a company-wide profit share. That will give everyone the entrepreneurial drive.
27. Volunteer your time and your staff’s time to help a needy cause.
28. Become your own “undercover boss.”
29. Keep a journal and record something you like about entrepreneurship every day.
30. Listen to “Eye of The Tiger” and exercise in a 1970s workout suit…doing windmills.
31. Read Fast Company magazine.
32. Take an accounting class.
33. Listen to an audio version of “Think and Grow Rich.”
34. Watch a video of Henry Ford’s biography.
35. Just know that you are the reason our economy will recover. It is not government, it is not even big business, it is you, the entrepreneur, who makes the economy grow.
36. List all the things you love about your work, and do it at the beginning and end of the day.
37. Have a daily company huddle — a five minute, standing, get charged up meeting.
38. Take a tour of Zappos.
39. Go to Berkshire Hathaway’s annual meeting and listen to Warren Buffett.
40. Read “The Toilet Paper Entrepreneur” (I know… that is self serving… but I promise it will reinvigorate your entrepreneurial drive!).
41. Surf the Harvard Business Review website.
42. Read the story of Gary Erikson’s Clif Bar company (called “Raising The Bar”).
43. Create a mastermind group.
44. Go work for someone else for a day.
This is just a partial list. I could go on and on listing things to reinvigorate your entrepreneurial drive. Do a different one every week or month if you need to, but keep doing them. It took a lot of courage, dedication, and dreaming to get where you are today. Oh, and don’t do #44, that one really stinks!
http://www.bnet.com/blog/smb/44-ways-to-reinvigorate-your-entrepreneurial-drive/4393
4/20/11
Today’s To-Do List: Fire Someone
Want to improve your business? Forget projects and initiatives and renewed focus. Firing your worst employee will accomplish a lot more in a lot less time.
And as a long-term bonus, you’ll realize the way you currently evaluate your employees is largely a waste of effort.
Try it. Pretend you have to fire someone today. Assume you have no choice.
How would you decide whom to let go? Easy methods are seniority (last in, first out), or pay grade (lowest on the totem pole is closest to the axe), or function (sales is an essential function; maintenance less so, at least in the short term.) But the easy way is usually the worst way. For example, your best employee may also be your newest. Can you really afford to let her go?
Another easy way is using performance review data. When I worked at a 250-employee manufacturing facility and layoffs loomed, our HR manager suggested using employee evaluations as a quasi-objective, Equal Employment Opportunity-defensible tool.
Each of the eight managers — including me — pushed back hard. How did we feel? Sure, evaluations are fine for providing employee feedback, but there was no way we could use them to decide whom to let go.
We were right for feeling that way: At least a few of the employees we could least afford to lose had received the worst recent evaluations. Of course we were also wrong for feeling that way, since we had all willingly used an evaluation system that failed to measure real, meaningful performance.
How will you decide who should go? Don’t base your decision on “interpersonal skills” or “teamwork skills” or “attention to detail” or other boilerplate employee evaluation categories that sound great but don’t measure tangible skills and achievements.
Choose the person who least contributes to business success. Use numbers, actions, and accomplishments. Focus on bottom line contributions. A high-maintenance prima donna salesperson may fall short in a number of “standard” evaluation categories, but if he is responsible for a major chunk of revenue you can’t afford to lose him.
So let’s introduce a little scope creep: Do two things today.
First, rank your employees by what they truly contribute to operations and profits. Use that exercise to help you create evaluations that measure what truly matters to your business: Results.
Then, if your lowest-ranked employee is dead weight, don’t wait: Terminate. He or she deserves it.
So does your business.
http://www.bnet.com/blog/small-biz-advice/today-8217s-to-do-list-fire-someone/101
And as a long-term bonus, you’ll realize the way you currently evaluate your employees is largely a waste of effort.
Try it. Pretend you have to fire someone today. Assume you have no choice.
How would you decide whom to let go? Easy methods are seniority (last in, first out), or pay grade (lowest on the totem pole is closest to the axe), or function (sales is an essential function; maintenance less so, at least in the short term.) But the easy way is usually the worst way. For example, your best employee may also be your newest. Can you really afford to let her go?
Another easy way is using performance review data. When I worked at a 250-employee manufacturing facility and layoffs loomed, our HR manager suggested using employee evaluations as a quasi-objective, Equal Employment Opportunity-defensible tool.
Each of the eight managers — including me — pushed back hard. How did we feel? Sure, evaluations are fine for providing employee feedback, but there was no way we could use them to decide whom to let go.
We were right for feeling that way: At least a few of the employees we could least afford to lose had received the worst recent evaluations. Of course we were also wrong for feeling that way, since we had all willingly used an evaluation system that failed to measure real, meaningful performance.
How will you decide who should go? Don’t base your decision on “interpersonal skills” or “teamwork skills” or “attention to detail” or other boilerplate employee evaluation categories that sound great but don’t measure tangible skills and achievements.
Choose the person who least contributes to business success. Use numbers, actions, and accomplishments. Focus on bottom line contributions. A high-maintenance prima donna salesperson may fall short in a number of “standard” evaluation categories, but if he is responsible for a major chunk of revenue you can’t afford to lose him.
So let’s introduce a little scope creep: Do two things today.
First, rank your employees by what they truly contribute to operations and profits. Use that exercise to help you create evaluations that measure what truly matters to your business: Results.
Then, if your lowest-ranked employee is dead weight, don’t wait: Terminate. He or she deserves it.
So does your business.
http://www.bnet.com/blog/small-biz-advice/today-8217s-to-do-list-fire-someone/101
4/18/11
Wealth Is What You Save, Not What You Spend
Want to be a millionaire? Don't overspend and use debt wisely.
We all may not be millionaires but there are plenty of financial and life-planning secrets we can learn from the well-heeled.
Most people know that wealth in the U.S. is in the hands of a small percentage of the total population. And, today, most of those folks with a net worth of $1 million or more have earned it themselves.
They're mostly entrepreneurs who create everything from high-speed networks to garbage haulers. They dig ditches and build houses and grow corn and make jewelry. They deal stamps or coins or artwork and control pests and cut lawns. They also cure people and give them new teeth. Others will defend their neighbors or even feed them.
And they're not big spenders. In fact, most of those with big bucks live well under their means -- think about Warren Buffett still living in that modest Omaha home -- and they put their money instead toward investments that help them stockpile more wealth.
"Wealth is what you accumulate, not what you spend," according to Thomas Stanley and William Danko, the authors of the seminal tome on America's wealthy "The Millionaire Next Door," first published in 1996.
"It is seldom luck or inheritance or advanced degrees or even intelligence that enables people to amass fortunes," the authors wrote. "Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self discipline."
Wealth is defined in many ways, though it's generally determined as the value of everything you own minus debts. But there's a difference between marketable assets -- things you own that could be liquidated rather quickly, like stocks, bonds, real estate -- and possessions like cars, clothing and household items that you use regularly and aren't likely to sell.
Income alone does not make one rich. It helps, of course, to build wealth, but the financially independent look to their salaries as a means to an end, which is that pile of cash.
"The wealthy don't spend their wealth on discretionary purchases," said Pam Danziger, founder of Unity Marketing, a consumer market-research firm specializing in luxury goods and experiences. "They get rich by maximizing the value of their investments."
That doesn't mean they don't pay big bucks for pretty shoes or outfits, but that most choose those items carefully and shop for value and quality. "They truly evaluate the purchase as an investment, not an expense," Danziger said.
What they do though is diversify those investments, which gives them more flexibility to ride out difficult times. "The wealthiest clients have very, very diversified portfolios that go way beyond just stocks and bonds into hedge funds, currencies, commodities and emerging markets," said Leslie Lassiter, managing director of the JPMorgan Private Wealth Management.
"There are many, many mutual funds out there that will allow you to get exposure to those types of asset classes," Lassiter said.
Among the biggest differences between those flush with cash and those wishing they were is in how they pay for things. Millionaires tend to use cash for most of their purchases, including cars, homes and boats.
For the average wage earner, of course, that's not always an option but it still holds this lesson: Don't look to debt to fund your lifestyle.
Most wealthy people use debt for investment purposes and are careful not to over-leverage themselves. "A prudent use of debt is an appropriate thing for anyone," Lassiter said.
They also plan very well and spend a lot of time at it. Many are compulsive savers and investors who often say the journey to riches was far more fun than the reaching the goal.
And they're patient, willing to invest in the long term and wait it out. "They stick with their investments and are more likely to have a financial plan," said Sanjiv Mirchandani, president of National Financial, a subsidiary of Fidelity Investments.
Many take the long-term approach to investing because they're working at being financial independent. When they retire, for example, many will know exactly how much they need to live on, to give away and to leave as a legacy.
"The best ones really understand how much liquidity they need to cover their expenses and make sure they have that much cash on hand," Lassiter said. "That's something the average person should do as well."
At the same time, she said most are very careful about leveraging debt. "The wealthy tend to balance between the two," she said.
Recommendations for accumulating wealth:
Live below your means: People with high incomes who spend all that money are not rich; they're just stupid.
Plan: That means plan for today, tomorrow and 30 years after retirement. Take time doing it too and spend time monitoring it every day. Use budgets and stick to them.
Diversify: As Lassiter said, look for mutual funds that allow you exposure to asset classes that aren't related to each other.
Reduce use of credit and turn to cash: It's easier, of course, for a prosperous person to pay for a house in cash than it might be for most folks, but credit-card debt for luxury purchases or extravagant vacations will never pave a road to riches.
Have access to cash: While the rich keep much of their wealth invested, they can get cash when they need it. "Have some kind of line of credit available, like a HELOC (home-equity line of credit) that you never use," Lassiter said. "It's a safety valve." She suggests a year's worth of cash to cover expenses; Danziger thinks three years worth is a better bet.
Spread cash around: When the wealthy pulled money out of the equities markets two and three years ago, they opened a bevy of bank accounts, all guaranteed up to $250,000 of deposits by the Federal Deposit Insurance Corp.
Bring your children into the mix, and remember the importance of estate planning: The affluent can go to great lengths to teach their children about money and how to manage it -- something every family should do. Though talking about money with children consistently ranks as one of the most dreaded conversations, it's important that your heirs know where all the bank accounts and safe-deposit boxes are -- even that their names are on them, too -- who the attorney is, where the will and trusts are filed.
We all may not be millionaires but there are plenty of financial and life-planning secrets we can learn from the well-heeled.
Most people know that wealth in the U.S. is in the hands of a small percentage of the total population. And, today, most of those folks with a net worth of $1 million or more have earned it themselves.
They're mostly entrepreneurs who create everything from high-speed networks to garbage haulers. They dig ditches and build houses and grow corn and make jewelry. They deal stamps or coins or artwork and control pests and cut lawns. They also cure people and give them new teeth. Others will defend their neighbors or even feed them.
And they're not big spenders. In fact, most of those with big bucks live well under their means -- think about Warren Buffett still living in that modest Omaha home -- and they put their money instead toward investments that help them stockpile more wealth.
"Wealth is what you accumulate, not what you spend," according to Thomas Stanley and William Danko, the authors of the seminal tome on America's wealthy "The Millionaire Next Door," first published in 1996.
"It is seldom luck or inheritance or advanced degrees or even intelligence that enables people to amass fortunes," the authors wrote. "Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self discipline."
Wealth is defined in many ways, though it's generally determined as the value of everything you own minus debts. But there's a difference between marketable assets -- things you own that could be liquidated rather quickly, like stocks, bonds, real estate -- and possessions like cars, clothing and household items that you use regularly and aren't likely to sell.
Income alone does not make one rich. It helps, of course, to build wealth, but the financially independent look to their salaries as a means to an end, which is that pile of cash.
"The wealthy don't spend their wealth on discretionary purchases," said Pam Danziger, founder of Unity Marketing, a consumer market-research firm specializing in luxury goods and experiences. "They get rich by maximizing the value of their investments."
That doesn't mean they don't pay big bucks for pretty shoes or outfits, but that most choose those items carefully and shop for value and quality. "They truly evaluate the purchase as an investment, not an expense," Danziger said.
What they do though is diversify those investments, which gives them more flexibility to ride out difficult times. "The wealthiest clients have very, very diversified portfolios that go way beyond just stocks and bonds into hedge funds, currencies, commodities and emerging markets," said Leslie Lassiter, managing director of the JPMorgan Private Wealth Management.
"There are many, many mutual funds out there that will allow you to get exposure to those types of asset classes," Lassiter said.
Among the biggest differences between those flush with cash and those wishing they were is in how they pay for things. Millionaires tend to use cash for most of their purchases, including cars, homes and boats.
For the average wage earner, of course, that's not always an option but it still holds this lesson: Don't look to debt to fund your lifestyle.
Most wealthy people use debt for investment purposes and are careful not to over-leverage themselves. "A prudent use of debt is an appropriate thing for anyone," Lassiter said.
They also plan very well and spend a lot of time at it. Many are compulsive savers and investors who often say the journey to riches was far more fun than the reaching the goal.
And they're patient, willing to invest in the long term and wait it out. "They stick with their investments and are more likely to have a financial plan," said Sanjiv Mirchandani, president of National Financial, a subsidiary of Fidelity Investments.
Many take the long-term approach to investing because they're working at being financial independent. When they retire, for example, many will know exactly how much they need to live on, to give away and to leave as a legacy.
"The best ones really understand how much liquidity they need to cover their expenses and make sure they have that much cash on hand," Lassiter said. "That's something the average person should do as well."
At the same time, she said most are very careful about leveraging debt. "The wealthy tend to balance between the two," she said.
Recommendations for accumulating wealth:
Live below your means: People with high incomes who spend all that money are not rich; they're just stupid.
Plan: That means plan for today, tomorrow and 30 years after retirement. Take time doing it too and spend time monitoring it every day. Use budgets and stick to them.
Diversify: As Lassiter said, look for mutual funds that allow you exposure to asset classes that aren't related to each other.
Reduce use of credit and turn to cash: It's easier, of course, for a prosperous person to pay for a house in cash than it might be for most folks, but credit-card debt for luxury purchases or extravagant vacations will never pave a road to riches.
Have access to cash: While the rich keep much of their wealth invested, they can get cash when they need it. "Have some kind of line of credit available, like a HELOC (home-equity line of credit) that you never use," Lassiter said. "It's a safety valve." She suggests a year's worth of cash to cover expenses; Danziger thinks three years worth is a better bet.
Spread cash around: When the wealthy pulled money out of the equities markets two and three years ago, they opened a bevy of bank accounts, all guaranteed up to $250,000 of deposits by the Federal Deposit Insurance Corp.
Bring your children into the mix, and remember the importance of estate planning: The affluent can go to great lengths to teach their children about money and how to manage it -- something every family should do. Though talking about money with children consistently ranks as one of the most dreaded conversations, it's important that your heirs know where all the bank accounts and safe-deposit boxes are -- even that their names are on them, too -- who the attorney is, where the will and trusts are filed.
4/13/11
Cisco Kills Flip Camera
Flip Camera, your fifteen minutes are up. Just a couple of years ago, it was the VW Bug of Camcorders. I got one. It was so cute, I wanted to hug it. Then Cisco bought Flip's maker, Pure Digital, for $590 million. Sadly for Flip, that 2009 deal is now sooo five minutes ago. Cisco announced this week it will no longer make Flip cameras and is pulling back on its consumer product strategy.
As an aside; the umi Telepresence product line, formerly marketed for the home market at outrageous prices, will now be shifted towards the enterprise market (which has no qualms about paying through the nose for tech goodies).
We'll never know, of course, what would have happened if Pure Digital had stayed pure. Perhaps the Flip would have survived with new features and innovations each product cycle to keep it a few steps ahead of the smartphone.
With Cisco as its distracted parent company, Flip simply flopped. Fewer people are interested in them, when they can point and shoot a quick video on their iPhone or Android and upload it to Facebook or YouTube seamlessly. I admit my Flip rarely leaves the back of my sock drawer these days. I just use my iPhone, instead.
In this brave new world of a bajillion apps, I believe the days of single function gadgets are all but over.
What's our takeaway from all this?
For Cisco: it's a $590 million "oops" and an admission that they need to stick with what they know—the enterprise market.
For the smaller, independent company: it's a cautionary tale. You may want to think twice about who you sell your baby too, if you truly want to see it grow up someday. No one will ever love the product you created more than you!
For the consumer: Cisco, who?
As an aside; the umi Telepresence product line, formerly marketed for the home market at outrageous prices, will now be shifted towards the enterprise market (which has no qualms about paying through the nose for tech goodies).
We'll never know, of course, what would have happened if Pure Digital had stayed pure. Perhaps the Flip would have survived with new features and innovations each product cycle to keep it a few steps ahead of the smartphone.
With Cisco as its distracted parent company, Flip simply flopped. Fewer people are interested in them, when they can point and shoot a quick video on their iPhone or Android and upload it to Facebook or YouTube seamlessly. I admit my Flip rarely leaves the back of my sock drawer these days. I just use my iPhone, instead.
In this brave new world of a bajillion apps, I believe the days of single function gadgets are all but over.
What's our takeaway from all this?
For Cisco: it's a $590 million "oops" and an admission that they need to stick with what they know—the enterprise market.
For the smaller, independent company: it's a cautionary tale. You may want to think twice about who you sell your baby too, if you truly want to see it grow up someday. No one will ever love the product you created more than you!
For the consumer: Cisco, who?
How To Calculate The Weekday For Any Date On The Julian Or Gregorian Calendar
The following formula is used to calculate the weekday for any date on the calendar:
Century + Year + Month + Day = Weekday
Each of the words century, year, month, and day represents a number that is used to offset all of the other numbers in the formula. The sum of the offsets yields a number that represents the weekday.
In order to develop the proper offsets, let us begin with the simplest scenario, the first day of the first month of the first year of this century. January 1, 1900 fell on a Monday.
Since this century is the 1900's, let us make the century offset 0 when Century = 19. In this way, we can ignore the century offset for all dates in this century, and so only need deal with Year + Month + Day.
To continue making January 1, 1900 as simple as possible, let us make the offset 0 when Year is 00 and make the offset 0 when Month is January. Thus:
Since the offset for the century, the year, and the month all equal 0 for January 1900, we can forget about them for the present. We therefore only need to deal with the conversion of the day of the month to the weekday.
http://5dspace-time.org/Calendar/Algorithm.html
Century + Year + Month + Day = Weekday
Each of the words century, year, month, and day represents a number that is used to offset all of the other numbers in the formula. The sum of the offsets yields a number that represents the weekday.
In order to develop the proper offsets, let us begin with the simplest scenario, the first day of the first month of the first year of this century. January 1, 1900 fell on a Monday.
Since this century is the 1900's, let us make the century offset 0 when Century = 19. In this way, we can ignore the century offset for all dates in this century, and so only need deal with Year + Month + Day.
To continue making January 1, 1900 as simple as possible, let us make the offset 0 when Year is 00 and make the offset 0 when Month is January. Thus:
| Century (19) | + Year (00) | + Month (1) | + Day (1) | = Weekday | |
| Offsets: | 0 | + 0 | + 0 | + 1 | = Monday |
Since the offset for the century, the year, and the month all equal 0 for January 1900, we can forget about them for the present. We therefore only need to deal with the conversion of the day of the month to the weekday.
Day Offset
As the 1st day of this month falls on a Monday, let us assign Monday a value of 1. The 2nd day of the month has a value of 2, and as the day after Monday is Tuesday, we assign Tuesday the value of 2. In like manner, the first seven days of the month have the following values:
Day Offsets
| Weekday | Numeric Value |
| Monday | 1 |
| Tuesday | 2 |
| Wednesday | 3 |
| Thursday | 4 |
| Friday | 5 |
| Saturday | 6 |
| Sunday | 7 |
January 7 falls on day 7, and 7 corresponds to Sunday. On what day does January 8 fall? On any calendar you will notice that the 8th of any month falls on the same day as the 1st of the month, which falls on the same day as the 15th, the 22nd, and the 29th of the month. Therefore, if we subtract one week (7 days) from the January 8, we have January 1, which we know is a Monday. January 8 is therefore a Monday.
This process of subtracting weeks from the 8th, 15th, 22nd, 29th etc. to achieve a number equal to or less than 7 is called modulo ("mod," for short). The word modulo is usually represented in computer languages as %. To find a number such as 20 % 7, divide 20 by 7, and keep only the remainder. 20 / 7 = 2 remainder 6. 20 % 7 = 6. The 20th falls on the same weekday as the 6th.
(Please note that multiplication, which is usually indicated by an x in mathematics, as in 3 x 2 = 6, is usually indicated by an * in computer languages, as in 3 * 2 = 6. Multiplication will be indicated by an * here.)
January 28 falls on 28 % 7 = 0. Which day of the week corresponds to 0? Sunday. We assigned Sunday a value of 7, but 7 % 7 = 0, and so we will modify the weekday values as follows:
Day Offsets
| Weekday | Numeric Value |
| Sunday | 0 |
| Monday | 1 |
| Tuesday | 2 |
| Wednesday | 3 |
| Thursday | 4 |
| Friday | 5 |
| Saturday | 6 |
We can now calculate the weekday for any date in January. Let us now calculate the month offsets.
Month Offset
January is the first month, and so we assigned January an offset of 0. January has 31 days. January 31 falls on 31 % 7 = 3 = Wednesday. Whenever January 1 falls on a Monday, February 1 falls on a Thursday, 3 days later. The February offset equals 0 (January offset) plus 31%7 = 3 (number of days in January). 0 + 3 = 3. Thus, for example, February 2 would fall on 3 (February offset) + 2 (Day offset) = 5 (Friday).
February has 28 days (in a non leap year). 28 % 7 = 0. February 28 falls on 3 (February offset) + 0 (28 % 7) = 3 = Wednesday. Whenever February 1 falls on a Thursday, March 1 also falls on a Thursday, in a non leap year. The March offset equals 3 (February offset) plus 28%7 = 0 (number of days in February). 3 + 0 = 3. Thus, for example, March 12 would fall on 3 (March offset) + 12 (Day offset) = 15 % 7 = 1 (Monday).
Month Offsets
| Month | Offset | Days | Days % 7 | Add to next month's offset |
| January | 0 | 31 | 3 | +3 |
| February | 3 (0+3) | 28 | 0 | +0 |
| March | 3 (3+0) | 31 | 3 | +3 |
| April | 6 (3+3) | 30 | 2 | +2 |
| May | 1 (6+2=8,%7) | 31 | 3 | +3 |
| June | 4 (1+3) | 30 | 2 | +2 |
| July | 6 (4+2) | 31 | 3 | +3 |
| August | 2 (6+3=9, %7) | 31 | 3 | +3 |
| September | 5 (2+3) | 30 | 2 | +2 |
| October | 0 (5+2=7, %7) | 31 | 3 | +3 |
| November | 3 (0+3) | 30 | 2 | +2 |
| December | 5 (3+2) | 31 | 3 | +3 |
The month offsets, which can easily be remembered to enable quick calculation of the weekday, are as follows:
Month Offsets
| Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| Offset | 0 | 3 | 3 | 6 | 1 | 4 | 6 | 2 | 5 | 0 | 3 | 5 |
Year Offset
The month offset for December is 5. December has 31 days. 31%7=3. 5 (December offset) + 3 (number of days in December) = 8. 8%7=1. January, the month after December, has an offset of 1. Thus, if January 1 of one year falls on a Monday, and if it is not a leap year, then January 1 of the following year will fall on 365 % 7 = 1 (new year offset) + 0 (January offset) + 1 (Day offset) = 2 (Tuesday).
Each year begins 1 day later in the week than the previous year, if the previous year is a non-leap year. The year 00, as in 1900, was previously assigned a year offset of 0. The year 1 would therefore have a year offset of 1. The year 2 would have a year offset of 2. The year 3 would have a year offset of 3. The year 4 begins with a year offset of 4. However, in a leap year February has 29 days. We accommodate this by adding 1 to the year offset in leap years. When calculating the weekday for a date in January or February of a leap year, we must subtract 1 from the year offset, as the leap day has not arrived yet. As every 4th year is a leap year, the year offset can be quickly calculated as Year + Year/4. (Remember that a year that ends in 00 is not a leap year in the Gregorian calendar unless it is also a multiple of 400.)
Year Offsets
| Years | Offset |
| 6, 17, 23, 28, 34, 45, 51, 56, 62, 73, 79, 84, 90 | 0 |
| 1, 7, 12, 18, 29, 35, 40, 46, 57, 63, 68, 74, 85, 91, 96 | 1 |
| 2, 13, 19, 24, 30, 41, 47, 52, 58, 69, 75, 80, 86, 97 | 2 |
| 3, 8, 14, 25, 31, 36, 42, 53, 59, 64, 70, 81, 87, 92, 98 | 3 |
| 9, 15, 20, 26, 37, 43, 48, 54, 65, 71, 76, 82, 93, 99 | 4 |
| 4, 10, 21, 27, 32, 38, 49, 55, 60, 66, 77, 83, 88, 94 | 5 |
| 5, 11, 16, 22, 33, 39, 44, 50, 61, 67, 72, 78, 89, 95 | 6 |
Now, for some examples:
January 1, 1999:
| Century offset: | 0 for 1900's |
| Year offset: | 99 + 99/4 = 99 + 24 = 123. 123%7 = 4 |
| Month offset: | 0 for January |
| Day offset: | 1 |
| Weekday: | 0 + 4 + 0 + 1 = 5 = Friday |
January 1, 1999 fell on a Friday.
February 14, 1920
| Century offset: | 0 |
| Year offset: | 20 + 20/4 -1 (this is a leap year, and leap day has not arrived yet) |
| 20 + 5 - 1 = 24. 24%7 = 3. | |
| Month offset: | 3 |
| Day offset: | 14. 14%7 = 0 |
| Weekday: | 0 + 3 + 3 + 0 = 6 = Saturday |
February 14, 1920 fell on a Saturday.
Century Offset (for the Gregorian Calendar)
Each century has 100 years. 100 years has a total year offset of 100 + 100/4 = 125. 125%7 = 6. This calculation assumes 25 leap years in a century which, on the Gregorian calendar, is only true for centuries that are multiples of 400; i.e., 400, 800, 1200, 1600, 2000, etc.
Thus, since 1900 has a century offset of 0, 2000 has a century offset of 6, and so begins one day earlier.
Because the other 3 centuries out of every 4 do not have 25 leap years (the year 00 is not a leap year), they each have a total relative year offset of 124%7 = 5.
1900 has a century offset of 0 (by our definition).
2000 has a century offset of 0 + 6 = 6 (0 + 125%7).
2100 has a century offset of 0 + 6 + 5 = 11 % 7 = 4 (0 + 6 + 124%7).
2200 has a century offset of 0 + 6 + 5 + 5 = 16 % 7 = 2 (0 + 6 + 5 + 124%7).
The cycle is thus 0, 6, 4, 2, and it repeats every 400 years.
Gregorian Century Offsets
| Century | Offset |
| 300, 700, 1100, 1500,1900, etc. | 0 |
| 400, 800, 1200, 1600, 2000, etc. | 6 |
| 100, 500, 900, 1300, 1700, etc. | 4 |
| 200, 600, 1000, 1400, 1800, etc. | 2 |
A shortcut to calculate the century offset for the Gregorian calendar is ((39 - Century) % 4) * 2. For example, the century offset for the 1200's would be ((39 - 12) % 4) * 2 = (27 % 4) * 2 = 3 * 2 = 6. The reason that 39 was selected here is that this calendar is valid only until the 3900s, and therefore 39 was selected as the next highest multiple of 4 (40) minus 1.
The quickest way to determine the century offset for any given century is to find the next highest multiple of 4, subtract 1, subtract the desired century, and multiply the result by 2. For example, to find the century offset for the 1900s, the next highest multiple of 4 beyond 19 is 20. ((20 - 1) - 19) * 2 = 0, and 0 is the century offset for the 1900s. To find the century offset for the 2000s, the next highest multiple of 4 beyond 20 is 24. ((24 - 1) - 20) * 2 = 6. To find the century offset for the 7400s, the next highest multiple of 4 beyond 74 is 76. ((76 - 1) - 74) * 2 = 2.
We now have all of the information required to calculate any date on the Gregorian calendar. We can do it quickly in our head or on a piece of paper if we can remember the 12 month offsets.
Examples of dates on the Gregorian calendar
July 4, 1776:
| Century offset: | ((20-1)-17)*2 = 4 |
| Year offset: | 76 + 76/4 = 76 + 19 = 95. 95%7 = 4 |
| Month offset: | 6 for July |
| Day offset: | 4 |
| Weekday: | 4 + 4 + 6 + 4 = 18. 18 % 7 = 4 = Thursday |
July 4, 1776 fell on a Thursday (on the Gregorian calendar).
February 14, 2020:
| Century offset: | (((24-1)-20)*2 = 6 |
| Year offset: | 20 + 20/4 = 20 + 5 = 25. 25%7 = 4 |
| (Subtract 1 because Jan/Feb of a leap year) 4 - 1 = 3 | |
| Month offset: | 3 for February |
| Day offset: | 14. 14 % 7 = 0 |
| Weekday: | 6 + 3 + 3 + 0 = 12. 12 % 7 = 5 = Friday |
February 14, 2020 will fall on a Friday (on the Gregorian calendar).
Century Offset (for the Julian Calendar)
To calculate dates on the Julian calendar is very similar to calculating dates for the Gregorian calendar. There are two differences. One is that the year 00 is always a leap year. Therefore, the years 1700, 1800, and 1900 are leap years.
The other difference is that each century has a total of 100 years and 100/4 = 25 leap years. The relative century offset for the Julian calendar is always +6, as 125%7 = 6.
For the Julian calendar, each century begins 1 day earlier then the previous century, with no exception every 4th century as for the Gregorian calendar.
For the Julian calendar, the 1900s have a century offset of 6. The 1800s had an offset of 0. The 1700s had an offset of 1. And so on.
From this trend two facts can be noted. One is that as the century increases, the century offset decreases. The other is that as the 1800s have an offset of 0, and as 18%7 = 4, 3 must be added to the century to make 4+3 = 7 and 7%7 = 0.
Therefore, a quick method of calculating the century offset for the Julian calendar is to add 3 to the century and take the mod 7 (these two steps align the number with 0), and then subtract the result from 7 (to make the offset decrease as the century increases); i.e., 7 - (Century + 3) % 7.
Thus, the 1900s have a century offset of 7- (19+3) % 7 = 7 - 1 = 6. The 1800s have a century offset of 7 - (18+3) % 7 = 7 - 0 = 7, and 7%7 = 0. The 1000s have a century of 7 - (10+3) % 7 = 7 - 6 = 1.
The cycle is thus 6, 5, 4, 3, 2, 1, 0, and it repeats every 700 years.
Julian Century Offsets
| Century | Offset |
| 500, 1200, 1900, etc. | 6 |
| 600, 1300, 2000, etc. | 5 |
| 00, 700, 1400, etc. | 4 |
| 100, 800, 1500, etc. | 3 |
| 200, 900, 1600, etc. | 2 |
| 300, 1000, 1700, etc. | 1 |
| 400, 1100, 1800, etc. | 0 |
We now have all of the information required to calculate any date on the Julian calendar. We can do it quickly in our head or on a piece of paper if we can remember the 12 month offsets.
Examples of dates on the Julian calendar
July 4, 1776:
| Century offset: | 7 - (17 + 3) % 7 = 1 |
| Year offset: | 76 + 76/4 = 76 + 19 = 95. 95%7 = 4 |
| Month offset: | 6 for July |
| Day offset: | 4 |
| Weekday: | 1 + 4 + 6 + 4 = 15. 15 % 7 = 1 = Monday |
July 4, 1776 fell on a Monday (on the Julian calendar).
February 14, 2020:
| Century offset: | 7 - (20 + 3) % 7 = 5 |
| Year offset: | 20 + 20/4 = 20 + 5 = 25. 25%7 = 4 |
| (Subtract 1 because Jan/Feb of a leap year) 4 - 1 = 3 | |
| Month offset: | 3 for February |
| Day offset: | 14. 14 % 7 = 0 |
| Weekday: | 5 + 3 + 3 + 0 = 11. 11 % 7 = 4 = Thursday |
February 14, 2020 will fall on a Thursday (on the Julian calendar.)
Conclusion
The algorithm for calculating the dates on the calendar is surprisingly simple. It is so simple that with minimum practice, and memorizing the 12 month offsets, it can be done in the head or on paper.
The algorithm is also very simple for a computer to calculate, as is demonstrated by this calendar program.
http://5dspace-time.org/Calendar/Algorithm.html
4/6/11
What Should Your Net Worth Be? Why “The Millionaire Next Door” Equation Falls Short – And What A Better Thumbnail Calculation Might Look Like
Recently, I was reminded of the first book I ever reviewed on The Simple Dollar, The Millionaire Next Door. I really liked the book, even though there was one big flaw in it: a rather large age bias. The book was written for people over forty, from top to bottom.
This was most obvious when the book offered up a formula for calculating what your net worth should be:
Target Net Worth = Age X Annual Pre-Tax Income / 10
So, let’s say I’m a 23 year old, fresh out of college. I am carrying $25,000 in student loan debt and my only asset is my car, but I get a job paying $30,000 a year. According to this formula, this is my net worth:
Target Net Worth = 23 X $30,000 / 10 = $69,000
I don’t know very many fresh college graduates with a net worth that high – most are saddled with a lot of student loan debt and simply haven’t been in the workplace long enough to build any assets.
What can we do to change that? The big question is really how old should a person be when their net worth switches over to positive? For the average college graduate, that’s going to be at least a few years after graduation, no matter what. So let’s try this instead:
Target Net Worth = (Age – 27) X Annual Pre-Tax Income / 10
That gets a more realistic number for young people – our straw man above would have a target net worth of -$12,000, which is pretty realistic – and even if a person chooses graduate school, the number isn’t too far off.
The problem pops up later on in life. At age 40, with an annual salary of $40,000, a person would have the following target net worth:
Target Net Worth = (40 – 27) X $40,000 / 10 = $52,000
A person who has been earning $30K to $40K over fifteen years or so should definitely have a higher net worth than that. The culprit, I think, is that number on the bottom – 10. It assumes that a person’s net worth should only grow 10% in a given year. What will actually happen is once the net worth starts going positive and growing well, it will grow by more than 10% each year. My net worth, for example, will probably grow somewhere around 30% this year.
So let’s say we think a financially healthy person, once they’ve paid down some of their debts, should see their net worth grow by significantly more than 10%. Let’s try making that number on the bottom 5 instead of 10.
Target Net Worth = (Age – 27) X Annual Pre-Tax Income / 5
For our straw man, at age 23 with an income of $30,000, his target net worth would be
Target Net Worth = (23 – 27) X $30,000 / 5 = -$24,000
This is probably a pretty good estimate, considering he graduates with $25,000 in student loan debt and owning only his beat-up car. The new equation is far more realistic for people in their twenties and thirties than the old one. What about the 40 year old with an income of $40,000?
Old Target Net Worth = 40 X $40,000 / 10 = $160,000
New Target Net Worth = (40 – 27) X $40,000 / 5 = $104,000
Even at age 40, the new equation points at a lower target net worth. But what about a 60 year old with an income of $60,000?
Old Target Net Worth = 60 X $60,000 / 10 = $360,000
New Target Net Worth = (60 – 27) X $60,000 / 5 = $396,000
Late in life, the modified equation actually points at a higher net worth than before. I think this is a much more realistic model because of the power of compounding – compounding is going to be much more powerful for you later in life as you’ve been building up your retirement and such.
So, instead of using the equation found in The Millionaire Next Door to figure your net worth, try this one instead:
Target Net Worth = (Age – 27) X Annual Pre-Tax Income / 5
It creates a much more realistic view of a person’s financial state throughout their life than the original, particularly for younger people. No single thumbnail formula like this is perfect – I’m just seeking one that matches better than the one in the book.
I recommend using this number as a target throughout your life, much as The Millionaire Next Door suggests: make it a goal to try to double the target or better, but know that if you’re matching the number, you’re doing all right.
http://www.thesimpledollar.com/2007/09/16/what-should-your-net-worth-be-why-the-millionaire-next-door-equation-falls-short-and-what-a-better-thumbnail-calculation-might-look-like/
This was most obvious when the book offered up a formula for calculating what your net worth should be:
Target Net Worth = Age X Annual Pre-Tax Income / 10
So, let’s say I’m a 23 year old, fresh out of college. I am carrying $25,000 in student loan debt and my only asset is my car, but I get a job paying $30,000 a year. According to this formula, this is my net worth:
Target Net Worth = 23 X $30,000 / 10 = $69,000
I don’t know very many fresh college graduates with a net worth that high – most are saddled with a lot of student loan debt and simply haven’t been in the workplace long enough to build any assets.
What can we do to change that? The big question is really how old should a person be when their net worth switches over to positive? For the average college graduate, that’s going to be at least a few years after graduation, no matter what. So let’s try this instead:
Target Net Worth = (Age – 27) X Annual Pre-Tax Income / 10
That gets a more realistic number for young people – our straw man above would have a target net worth of -$12,000, which is pretty realistic – and even if a person chooses graduate school, the number isn’t too far off.
The problem pops up later on in life. At age 40, with an annual salary of $40,000, a person would have the following target net worth:
Target Net Worth = (40 – 27) X $40,000 / 10 = $52,000
A person who has been earning $30K to $40K over fifteen years or so should definitely have a higher net worth than that. The culprit, I think, is that number on the bottom – 10. It assumes that a person’s net worth should only grow 10% in a given year. What will actually happen is once the net worth starts going positive and growing well, it will grow by more than 10% each year. My net worth, for example, will probably grow somewhere around 30% this year.
So let’s say we think a financially healthy person, once they’ve paid down some of their debts, should see their net worth grow by significantly more than 10%. Let’s try making that number on the bottom 5 instead of 10.
Target Net Worth = (Age – 27) X Annual Pre-Tax Income / 5
For our straw man, at age 23 with an income of $30,000, his target net worth would be
Target Net Worth = (23 – 27) X $30,000 / 5 = -$24,000
This is probably a pretty good estimate, considering he graduates with $25,000 in student loan debt and owning only his beat-up car. The new equation is far more realistic for people in their twenties and thirties than the old one. What about the 40 year old with an income of $40,000?
Old Target Net Worth = 40 X $40,000 / 10 = $160,000
New Target Net Worth = (40 – 27) X $40,000 / 5 = $104,000
Even at age 40, the new equation points at a lower target net worth. But what about a 60 year old with an income of $60,000?
Old Target Net Worth = 60 X $60,000 / 10 = $360,000
New Target Net Worth = (60 – 27) X $60,000 / 5 = $396,000
Late in life, the modified equation actually points at a higher net worth than before. I think this is a much more realistic model because of the power of compounding – compounding is going to be much more powerful for you later in life as you’ve been building up your retirement and such.
So, instead of using the equation found in The Millionaire Next Door to figure your net worth, try this one instead:
Target Net Worth = (Age – 27) X Annual Pre-Tax Income / 5
It creates a much more realistic view of a person’s financial state throughout their life than the original, particularly for younger people. No single thumbnail formula like this is perfect – I’m just seeking one that matches better than the one in the book.
I recommend using this number as a target throughout your life, much as The Millionaire Next Door suggests: make it a goal to try to double the target or better, but know that if you’re matching the number, you’re doing all right.
http://www.thesimpledollar.com/2007/09/16/what-should-your-net-worth-be-why-the-millionaire-next-door-equation-falls-short-and-what-a-better-thumbnail-calculation-might-look-like/
4/4/11
SQL - Function - Month Name
if exists (select * from dbo.sysobjects where id = object_id(N'[dbo].[Fn_MonthName]') and xtype in (N'FN', N'IF', N'TF'))
drop function [dbo].[Fn_MonthName]
go
Create function Fn_MonthName (@MonthCode varchar(2))
Returns Varchar (15)
As
/*------------------------------------------------------------------------------------------------------------------------------------------
** SQLVersion : SQL 2000
** Function : Fn_FinMonth
** Author : Kartik M Kumar
** DateTime : 29 January 2011 21:27
** Version : 1.1
** Purpose : To get the Month Name from the respective calander month
** ToCheck :
** Changes :
------------------------------------------------------------------------------------------------------------------------------------------*/
/*
-- Start of Debugging Stuff
Declare @MonthCode varchar(2)
Set @MonthCode = '03' -- Pass the Month Number as Input
-- End of Debugging Stuff
*/
Begin
Declare @MonthName varchar(15)
DECLARE @IMonthCd as int
set @IMonthCd = cast(@MonthCode as Int)
Select @MonthName = case @IMonthCd
when 1 then 'January'
when 2 then 'Feburary'
when 3 then 'March'
when 4 then 'April'
when 5 then 'May'
when 6 then 'June'
when 7 then 'July'
when 8 then 'August'
when 9 then 'September'
when 10 then 'October'
when 11 then 'November'
when 12 then 'December'
end
Return Isnull(@MonthName, 'InvalidMonth')
end
go
http://www.sqlservercentral.com/scripts/Month+Name/72408/
drop function [dbo].[Fn_MonthName]
go
Create function Fn_MonthName (@MonthCode varchar(2))
Returns Varchar (15)
As
/*------------------------------------------------------------------------------------------------------------------------------------------
** SQLVersion : SQL 2000
** Function : Fn_FinMonth
** Author : Kartik M Kumar
** DateTime : 29 January 2011 21:27
** Version : 1.1
** Purpose : To get the Month Name from the respective calander month
** ToCheck :
** Changes :
------------------------------------------------------------------------------------------------------------------------------------------*/
/*
-- Start of Debugging Stuff
Declare @MonthCode varchar(2)
Set @MonthCode = '03' -- Pass the Month Number as Input
-- End of Debugging Stuff
*/
Begin
Declare @MonthName varchar(15)
DECLARE @IMonthCd as int
set @IMonthCd = cast(@MonthCode as Int)
Select @MonthName = case @IMonthCd
when 1 then 'January'
when 2 then 'Feburary'
when 3 then 'March'
when 4 then 'April'
when 5 then 'May'
when 6 then 'June'
when 7 then 'July'
when 8 then 'August'
when 9 then 'September'
when 10 then 'October'
when 11 then 'November'
when 12 then 'December'
end
Return Isnull(@MonthName, 'InvalidMonth')
end
go
http://www.sqlservercentral.com/scripts/Month+Name/72408/
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