Early to Rise Saturday
August 21, 2004
By Michael Masterson

Today . . . 

*** 6 signs that a small business (maybe yours?) is
headed for trouble
*** What NOT to put on your to-do list
*** A redefinition of the term "weapons of mass
destruction"
*** This Week's Most Compelling "Speak Out" Topic
*** This Week in Early to Rise
*** This Week's Pop Quiz
*** Answers to This Week's Pop Quiz

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***6 Signs That a Small Business (Maybe Yours?) Is
Headed for Trouble 

Watch out if a small business exhibits these six
signs of potential trouble, warns the National
Federation of Independent Business:

1. Checking and savings balances have dipped below
normal averages. 

2. The sales "pipeline" is slowing and sales staff is 
reporting fewer productive sales calls than in the
past. 

3. "Bread-and-butter" articles of inventory have
remained unsold for longer-than-expected periods.

4. Payments to suppliers are continually delayed or
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5. Upper management retracts set plans for all types
of growth and development requiring additional
funding. 

6. Banks and other loan providers ask for additional
information on financial statements and loan
requests. 

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*** What NOT to Put on Your To-Do List

John Sarver pleaded guilty in April to robbing six
Kansas banks in 2002 and 2003. The last robbery took
place just before Christmas, and he was arrested
January 2nd.

When police searched Sarver's home, they found a
to-do list, including a reminder to "rob bank."

Despite his admirable habit of setting goals and
writing them down, Sarver drew a prison sentence of
10 years and five months, plus two years under
supervision after he gets out. He was also ordered to 
make restitution in the amount of $13,834.

(Source: Associated Press)


*** A Redefinition of the Term "Weapons of Mass
Destruction"

Some surprising facts from Laura Lee's book "100 Most 
Dangerous Things in Everyday Life and What You Can Do 
About Them":

* Each year, 12,779 people in the U.S. are injured by 
washing machines.

* More people are killed annually by teddy bears
(choking hazard) than by grizzly bears.

* Each year, thousands of couch potatoes are admitted 
to emergency rooms for television-related injuries.

* There are more germs on your desk than there are on 
your toilet. 

* More than 133,000 people each year are injured by
doors. 

* More than 400,000 Americans suffer injuries every
year while relaxing or sleeping in bed.

The point of her book, Lee says, is "not to increase
the general paranoia but to diminish it. If you can
look such deadly items as kitchen knives, bedding,
vegetables, and teddy bears in the face each day
without fear, you should be able to stare down the
much more statistically unlikely threats that now
haunt our collective consciousness."

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*** This Week's Most Compelling "Speak Out" Topic

In the General Discussion forum of "Speak Out,"
there's a good thread that demonstrates how a hobby
or profession can be changed into a new business.
Check out "I would like some opinions, please"
(http://speakoutforum.com/forum/viewtopic.php?t=256).


Do you have a comment or question on this -- or any
other topic that would be of interest to your fellow
ETR readers? Post it on "Speak Out" by clicking on:
http://speakoutforum.com/forum/


*** This Week in Early to Rise


8-16-04 In Business, to Whom Do You Owe Your
Loyalty?

If you want people to be loyal to you -- to support
your goals and stay with you when you falter -- you
need to give them a good reason to be loyal. The best 
reason I know is to give your loyalty in return.


8-17-04 Are You Exercising Your Risk Threshold . . .
or Getting Financially Flabby? 

How did Frank McKinney go from being a 21-year-old
kid buying, renovating, and selling foreclosures and
fixer-uppers in the poor parts of town to becoming
the most renowned creator of oceanfront homes in the
world? And what can you learn from his success?
That's the subject of Justin Ford's essay today.


8-18-04 The Myth of the Power of Teamwork  

In Message #1001, I took issue with an idea that has
gotten a lot of ink in recent years. The advice goes
something like this: "You and your employees are a
team. On a team, everyone is equally important. The
secret to making a team work (i.e., making your
business work) is to treat everyone in the business
equally, for everyone's contribution is essential."
As I explained then, I don't think that works most of 
the time for most businesses. Today, Bruce Midgett
has more to say on the same subject.


8-19-04 Do You Trust Your Employees? Why … or Why
Not?

The world today is filled with bad ideas -- stupid,
silly, or downright destructive notions that impede
progress. And some of them come from the world of
academia.


8-20-04 


*** This Week's Pop Quiz

How much do you remember about some of the things you 
learned this week in ETR? The answers to this week's
Pop Quiz are at the end of today's message.

Part I:

1. In my experience, the best way to get your
employees to be loyal to you is to (a) pay them more
than they're worth, (b) ignore it when they make
mistakes or goof off, or (c) give them your loyalty
in return. (Message #1193)

2. In Message #1194, Justin Ford told us a little bit 
about how Frank McKinney went from being a
21-year-old kid buying, renovating, and selling
foreclosures and fixer-uppers in the poor parts of
town to becoming the most renowned creator of
oceanfront homes in the world. One of the guiding
principles that Frank has used over the years is that 
to be successful in life -- no matter what you choose 
to do -- you have to "gently yet often exercise your
risk threshold like a muscle." This is NOT the same
thing as being reckless. Why? 

3. The best way to manage an important project is
with a team approach, every member of the team making 
an equal contribution. True or False? (Message
#1195)

4. Even if you trust your employees individually,
unless you take precautions, some of them WILL steal
from you. What preventive steps should you take?
(Message #1196)

5. Starting Monday, what big change are you going to
see in ETR? (Message #1197)

Part II: Quick Tips/It's Good to Know

6. In Message #1193, Graham McGregor talked about the 
"Wow!" factor -- small details that a business pays
attention to that make their customers want to come
back again and again (and convince their friends to
go there too). One example that Graham gave has to do 
with the Disney theme parks. What is it? 

7. A growing number of wine producers are starting to 
bottle their wine with screw caps instead of corks,
because (a) screw caps are cheaper, (b) the world's
supply of natural cork has practically been depleted, 
or (c) using a screw cap eliminates the possibility
that the wine will be damaged by oxidation or by TCA, 
a chemical contaminant that's nurtured by cork.
(Message #1194)

8. When it comes to health insurance, the plan your
employer offers is always your best deal. True or
False? (Message #1195)

9. The first Olympic games can be traced back to 776
B.C., and they have been held continuously ever
since. True or False? (Message #1196)

10. In Jolly Old England, toastmasters would often
raise a glass with these words: "Gentlemen, no
daylights nor heeltaps." What does that mean?
(Message #1197)

Part III: Word to the Wise

11. Something that is "anachronistic" is (a)
irritating, (b) out of its chronological place, or
(c) extremely stable. (Message #1193)

12. A "tenable" idea is (a) based on sound reasoning
or evidence, (b) unbalanced, or (c) insignificant.
(Message #1194)

13. "Defenestration" is (a) an excuse, (b) a
rebuttal, or (c) the act of throwing a person or
thing out of a window. (Message #1195)

14. If I describe you as being "sedentary," I mean
that you are (a) miserly, (b) physically inactive, or 
(c) rebellious. (Message #1196)

15. You might see a "meniscus" in a wineglass. True
or False? (Message #1197)


*** Answers to This Week's Pop Quiz

1. c - To me, loyalty is the foundation of all good,
long-term business relationships. Work hard, don't
steal, and support my goals. In return, I'll pay you
fairly, take care of you when you get in trouble, and 
keep you employed even when you've passed your
prime.

2. McKinney is willing to take a chance ("exercise
his risk threshold"), but not unless he has first
done his homework. He knows his niche in the
real-estate market cold . . . he's plugged into land
deals before they hit the market . . . he knows when
he has found an excellent value . . . he's keenly
aware of the costs of his projects… and he has
never lost money on a real-estate deal in his life!

3. False - Somebody needs to be in charge, and the
division of labor has to be based on each
individual's talent and experience.

4. Make a list of all the ways your employees could
steal from you. Think about the transportation of
cash especially: how it comes in, who handles it,
etc. Consider also your bookkeeping. Make sure that
all invoices are tracked, all dispersals checked, and 
all accounts balanced. Try to imagine how you could
be taken advantage of in your operations,
fulfillment, and customer service departments too.
Find out where you are vulnerable. Make a commitment
to install safeguards.

5. Starting Monday, ETR will have a new, improved
format. We will continue to give you advice to make
you healthier, wealthier, and wiser . . . but now you 
will learn something new and interesting and useful
in all three of these key areas every day.
 
6. One of the first things you notice if you go to
Disneyland or Disney World is the incredible
cleanliness of the place. There is no rubbish on the
ground, and everything looks spotless. People go home 
and tell their friends how different it is from other 
amusement parks they've visited -- and make them want 
to go there too. 

7. c 

8. False - Don't assume that those one-size-fits-all
plans are right for you. Employee plans used to be
comprehensive and inexpensive. But no longer. Shop
around. You may find an individual plan that is less
expensive and/or more appropriate for your needs. 

9. False - The Olympic games began in 776 B.C., but
came to a halt in A.D. 393, when Emperor Theodosius
decreed that all such "pagan cults" be banned. The
first modern Olympics were held in 1896 in Athens,
the same city that's hosting this year's summer
games.

10. Brewer's Dictionary of Phrase and Fable tells us
that old English toasting traditions called for
glasses to be filled to the brim ("bumper") and every 
drop had to be drunk. A glass had "daylight" if it
wasn't quite filled during the pouring -- and if the
drinker left anything in the bottom of the glass, it
was called a "heeltap." 

11. b
12. a
13. c
14. b

15. True - A "meniscus" is the crescent shape that
forms on the upper surface of a liquid against the
wall of its container.

Michael Masterson
Copyright ETR, LLC, 2004

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