Wednesday, March 16, 2011

March 16, 2011 - Quick note on our model

We will spend the first 10-15 minutes going over a few areas that need attention. I feel some of you are already building in debt or partners to get your business going -- for this class, we do not want any partners in our business nor do we carry any debt. Lawyers and accountants take huge fees to set up entities and leverage debt - but for some reason they are always absent from the bankruptcy proceedings when you can't pay your bills on the carry.

My belief: if you do not have any money today to pay for something what makes you think you will have any money tomorrow. Also, you are either getting into a partnership or getting out of a partnership -- stay away from them in hard line business, they are bad (please note: the professions use partners all the time (if you can't make it in hard line business, then look to the professions to pay the rent - dentistry I hear is an excellent profession that pays well and you have lots of time off) -- this is a class on developing hard line business). Keep away from promoters (they typically want to be a "partner" with you) please do not build them into your model - i.e., it amazes me that people who have made "zero" money in business want to advise business people (the actual creators of wealth) on how to invest and make money (if these promoters are so good at making all this money (they typically want a percentage of what you have) then why are they not out “doing it”? Keep your focus on operating on your own money, not somebody else's money. Remember our discussion on how to play your cards.

Therefore, all of the models (or businesses) we build must not take on any debt/partners/promoters -I will go over this in class.

This means we will start off very small and modest.

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