Financial Samurai

“I generated $100,000 from home in my underwear!” reads the headline. Immediately, you go ahead and click to see how, hopefully for free. But if not, maybe there’s some type of infoproduct you can buy for $99.

Revenue is sexy no doubt. Large headline numbers are used to suck you in. They trigger a “Me too wow!” emotion, and most of us fall for it. For growth companies, top line revenue is important to show the investor the company is heading in the right direction. However, for the consumer, revenue is a gimmick if you don’t highlight the net profit.

One of the greatest tricks in selling is to make something look so easy that any knucklehead can do it. Offer a 30 day money back guarantee, with processing fee of course, and a product that takes 100 days to complete to see results! By the time the consumer figures out what you’re selling is difficult to achieve or a piece of crap, you’ll have already taken their money and bought a nice trip to Maui thank you very much!

If your job is to sell the dream of making money online and following your glorious digital nomad lifestyle blogger, do us all a favor and be more transparent.

REVENUE DOESN’T COME CLOSE TO EQUALING PROFITS Read more…

Housekeepers on cruise ships make around $40 a day working 12-hour days on average. They get zero days off for the duration of their contract of 6, 8 or 10 months. That’s right, zero days off, 12 hour days, and no visits from family or friends. You think your 10-hour a day job is hard?  Please, reconsider and think again.

What’s even more impressive than working for only $40 a day is the service staff’s positive attitude. For 12 days and 12 nights, never was I greeted in a less-than-happy manner. Whether I was asking for directions to the theater or requesting the New York Times in the morning, the service staff were always eager to serve.

The entire service staff was from either Indonesia or the Philippines. Hence, $40 a day might be equivalent to $200 a day back in America or Europe based on purchasing power parity.  Furthermore, after working for 300 days straight with not one weekend off, one could theoretically accumulate $12,000 US dollars + a bonus, equaling roughly $50-60,000 dollars of buying power back home.  Not bad at all!

The service staff I spoke to said that they send roughly 80% of their pay back to their families. Their expenses are little because they all get free room (two to a room) and board. A couple of them had the option of doing 6 month contracts, but insisted on 10 month contracts as they wanted to work more and make more. They wanted to take full advantage of their opportunity.

I asked whether it was easy or hard to get a job on the cruise ship, and they said, “not hard.” You just have to apply, and go through the training. “Always be positive”, they told me. Sounds pretty straightforward to me.

DON’T BE AFRAID Read more…

When you incorporate a business, it’s like you have created a person out of thin air. That business is considered a separate legal entity from the shareholders who own the business. In the case of a small business, it’s usually one or two business partners. In the eyes of the government, a business is separated from the owners who run that business. This is different from a sole proprietorship, where you and the business are one and the same. There is no legal separation in a sole proprietorship.

It is not only legally separate, but also taxed separate. At the end of the year, you must also file taxes for personally, but also your business. When you incorporate your business, you’ll get what’s called an Employer Identification Number (EIN) number. This EIN number is similar to your Social Security number. It is what identifies you company with the IRS. So if any customer asks for a 1099 form, you would given them your EIN number, instead of your Social Security.

This separate legal entity is great. If it did not exist, any issues related to your company would be directly the owner’s responsibility. But all is not perfect, since someone uneducated about owning a business might mix their personal, and business transactions. This is a big no no! Intermingling the two can lead to legal, and tax disasters. This is what is known as “piercing the corporate veil”.

PIERCING THE CORPORATE VEIL WITHOUT EVEN KNOWING IT Read more…

A Brazen Breed of Gin

I’m pleased to highlight a new series of articles focused on understanding the thoughts of successful entrepreneurs.   For our inaugural series, entitled, “The Samurai Mask,” I speak with the CEO and Founder of BULLDOG Gin, Mr. Anshuman Vohra, 31.  “Shu” was once a JP Morgan Banker who gave up his lucrative career to start BULLDOG Gin three years ago.  I was very inspired after watching his story about overcoming rejection on Donny Deutsche’s “The Big Idea” and I’m pleased he’s here with us today.  This is his story about finding entrepreneurial success, and going against the odds.

INTRODUCTION

FS: Shu, thanks for taking the time to speak.  First of all, tell us about Bulldog Gin, and why it is such a hot product?

Shu: It’s good to speak to you and it’s an honor to be the inaugural interviewee for your new series.  BULLDOG Gin is a quadruple distilled, ultra premium gin with dragon eye and other distinctive botanicals.  This is not your old folks gin, but a younger, brazen breed of  gin that you can imagine Steve McQueen and James Bond drinking. Read more…