More Rich Dad. Poor Dad.
Why and How Should You Work,
Invest, or Own a Business?
Buying/creating assets to increase your passive
income to support your desired lifestyle.
Arranging your work schedule to match desired
Increasing your ability to create income at will.
Doing something that genuinely interests you, and
allows you to reject jobs and opportunities that don’t.
Dealing with people you only want to deal with.
Feeling/being free of any pressure, other than self-
Not caring about what others think of you.
Who Gets Paid First?
Who Gets Paid Most?
Investors – The Bank – Business Owner(s)
– The Asset – Employees
Paid Last Business Owner(s) Paid Most
Paid First The Asset Paid Least
Dealing with Your Money
“Many people are good when it comes to making their money,
but are foolish when spending it.” – Rich Dad
5. Exit: Get back original investment
4. Protect: Guard against taxes, crooks, & lawsuits Financial
3. Leverage: How much other people’s time, $, ideas
2. Manage: How to analyze, budget, and forecast
1. Earn/create: How to make money professional education
Leverage is the ability:
To do more and more
With less and less
Of your own, personal resources.
The goal is to become a Powerful Invalid.
T P O
M P O
I P O
E P Your
W Good Biz or
All you need is a good idea
and the commitment to see
it through. Everything else
can be begged, borrowed, You
Real Estate Leverage
Joe Cash Mike Leverage
Value Appreciation Value
$105K Profit $105K
$100K Down $100K
All Cash Free and
$5K Profit = 5% ROI $5K Profit = 50% ROI
$100K Investment $10K Investment
Modified from Robert G. Allen
Media: Finding Your Niche
Who Is Your Perfect Customer?
Perfect Customers are:
with Big Mouths
who Love You to Death!
And, “You only deal with those Perfect
Customers who want to deal with you.”
So, “Leave a trail where those Perfect
Customers can find you.”
Customer-First Business Model
Pre-Defined Select Decide Make
Customers Media Message Product/Brand
What’s my Which ponds have What bait are Start fishing.
favorite fish? my favorite fish? my fish eating?
What’s my Find Big, Addicted Find a Competitive
Niche? fish--high probability Advantage.
Am I passionate? prospects.
Do I have Database
Media-First Business Model
“Let’s Find the Fish.”
Pre-Defined My Decide Make
Media = Prospects Message Product/Brand
Pick ponds with my Perfect, Affluent, bait are
What Start fishing.
my fish eating?
Addicted fish? Find a Competitive
This is my Niche. Advantage.
I am passionate. Build
I have expertise.
Business Definition: A special, narrow area of demand
for a product or service.
You can create specifically tailored products.
You get fast awareness among niche members.
It’s easier and cheaper to prospect customers.
All you need is 10,000 names in your database/
Then you’ll make $500/day by selling just 25 units/day with a
$20 profit margin.
25 units/day divided by 10,000 names equals just a .25%
$500/day times 300 days equals $150,000/year.
Evaluating Possible Niche(s)
Does the niche address one or more of my passions,
talents, values, and/or my destiny?
Can I easily and affordably contact my niche?
Can the niche afford the product or service?
Does the niche already buy the product or service?
Do I have experience and credentials with the niche?
Does the niche have serious problems to be solved?
Is there excessive competition in the niche?
Do I have a competitive advantage that’s important
to the niche?
Is the niche large enough to make my desired profit?
Finding Your Niche(s)
Standard Rates and Data Service (SRDS)
List of mailing lists, publications, radio, and TV
MediaFinders.com; Oxbridge Communications; Gibbie Press
Mailing list brokers
Compile your own list
Sweepstakes and giveaways to capture names
Electronic copy of the Yellow Pages
Organization and association memberships
Niche radio and cable TV stations/programs
Internet forums, chat rooms, and blogs
Joint venture partners
Your current and past customer lists, warranty cards,
sales/service records, inquiries, etc.
Creating a Powerful
A Guerrilla/Small Business
Understands the business environment in which
the business operates.
Pinpoints the specific target markets/niches the
company will serve.
Analyzes a firm’s competitive advantages and
builds a marketing strategy around them.
Creates a marketing mix that meets customer
needs and wants.
The Marketing Mix
The Target Market -- Needs, Wants, Expectations
The Positioning -- The Story
Brand Image & Competitive Advantage
“The 4 P’s”
Product ---- Price ---- Place ---- Promotion
Grow Your Brand
Your Brand is Your “Body of Work.”
Your reputation: Word of Mouth
Your people and partners.
Don’t Fool Yourself
Market research is the vehicle for gathering
the information that serves as the foundation
for the business/marketing plan.
Never assume that a market exists for your
company’s product or service.
Market research does not have to be time
consuming, complex, or expensive to be
What to Research –
Nationally and Locally
Your Industry: Sales/profit trends, life cycle stage,
market share shifts, outlook, threats, etc.
Economic Conditions: Disposable income, spending
patterns, inflation, etc.
Technological Trends: New products, production
techniques, customer services, marketing, etc.
Legal/Regulatory Issues/Trends: Employment,
environment, safety, taxes, etc.
Competition: Strengths, weaknesses, barriers to
entry, indirect competitors, etc.
Quick and Easy Market Research
Look: Evaluate things around you. Evaluate new
locations by observing vehicle and foot traffic.
Visit competitors stores and websites to check
prices, layout, customer mix, etc. Monitor ads.
Ask: Conduct informal surveys to determine
customers’ likes, dislikes, wants, and don’t
wants. Take a small group to lunch to discuss
your plans. Use telephone interviews.
Test: Test everything, all the time.Compare
results of different ads, media, and deals. Offer
different products and prices to see which pulls
Quick and Easy Market Research
Read: Local chambers of commerce, trade assoc.’s,
and various gov’t. agencies provide dozens of free
publications. The media often provides info on their
audience and their buying habits and patterns.
Get Help: Local service clubs and government
funded agencies like SCORE and the SBA can help.
Make it a class project for college students. Use the
local library reference desk and online databases.
Watch Out: Recognize the weaknesses and biases
of your informal research. Only use your research as
a general guide. Confirm your findings with the
opinions and ideas of successful entrepreneurs in
the field and other reliable sources.
Customer Service and
Bad Customer Service
67% of customers who stop patronizing a business
do so because an indifferent employee treated them
96% of dissatisfied customers never complain about
rude or discourteous service, but...
91% will not buy from that business again.
100% will tell their “horror stories” to at
least nine other people.
13% of those unhappy customers will tell their
stories to at least 20 other people.
Focus on the Customer
Companies that are successful at retaining
their customers constantly ask themselves
(and their customers) four questions:
1. What are we doing right?
2. How can we do that even better?
3. What have we done wrong?
4. What should we do in the future?
Stew Leonard’s Video
Involves developing and maintaining long-
term relationships with customers so that they
will keep coming back to make repeat
Small companies have an advantage over
their larger rivals at relationship marketing.
Requires a company to make customer
service an all-encompassing part of its
Customers are part of all major issues the
Think “Lifetime Value” (LTV).
Think “80/20 Rule.”
Outrageous customer service
Selling-up and cross-selling
Online and offline communities
How to Become an Effective
Enhance your products and
Identify your best customers,
services by giving customers
never passing up the
information about them and how
opportunity to get their names.
to use them.
See customer complaints
Collect information on these for what they are – a
customers, linking their chance to improve
identities to their transactions. your service and
Successful complaints and then
Relationship fix them!
Calculate the long-term value Make sure your company’s
of customers so you know product and service quality
which ones are most desirable will astonish your customers.
(and most profitable).
Know what your customers’
buying cycle is and time your
Source: Adapted from Susan Greco, “The Road to One-
marketing efforts to coincide
to-One Marketing,” Inc., October 1995, pp. 56-66. with it – “just-in-time marketing.”
Example Relationship Objectives
Ambassadors 10U/Week +10 Referrals/Wk
(Reg Purchases) 50U/Week
(First Purchase) 25U/Week
(In Database) 10,000
Decide Your Business Emphasis
Pick Any Three Squares
Similar to Unique from Absolute
Competition Competition Best Overall
Contrasting Marketing Models
Awareness/Image Shopping & A Sale Undefined
Promotion Market share
Direct Response Private
Response • Sale Target Market
• Inquiry Database
Promotion • Lifetime Value
• Subscribe • Custom Programs
Customer Information Collected
for the Database
Sources of Information Types of Information
Inquiries, newsletter Name
subscribers, and requests Address
for samples/freebies from Telephone/fax
ads and website Email address
Online and offline surveys Credit card
Warranty cards Purchase history
Coupon redemptions Source of sale, contact,
Rebate applicants initial awareness
Sweepstakes entrants Income