Archive for May, 2009

I Hate MLM’s.

Sunday, May 31st, 2009

Sorry, strong word “hate”. But I refuse to recant it….I HATE MLM’s! It might seem odd to people that a serial entrepreneur like myself would think MLM’s are the scourge. It’s not the people, I even like Rich DeVos (founder of Amway), but every time I meet a newly minted MLM devote…my skin crawls. Here’s a few reasons why.

1) MLM’s usually make money by over charging for a service or product. It’s the only way to pay all those people on your down line.
2) Most MLM participants shouldn’t be there. If you think that a mother of three will have time to sell WHATEVER (travel, soap, grape juice, adult toys) and be successful, I have a bridge to sell you. Most people are not cut out for sales, and a MLM is sales. Don’t say it’s not…it is!!!
3) I have joined MLM’s in the past and regretted the waste of time and money. And I have plenty of people who have garages full of water filters that feel the same way.
4) If you go to a meeting and they are giving away cars, and you are selling beaded necklaces, juice, cheap travel, or online websites….do the math! They are making money by signing your butt up for the deal. Thousands of people making pearl necklaces…anyone ask where they are selling thousands of pearl necklaces???
5) Name 10 people you personally know who have retired in two years from their MLM involvement. You cant… so then name 5…still no eh? Ok name one. And not some friend of a friend either. Name 10 that failed miserably….(if they’ll admit it) Point made.
6) MLM’s will be out in force during this downturn and prey on people’s fear and greed. Fear and greed the oldest sales tactics in the book. If you get the high powered sales job. RUN!
7) There’s always a time pressure tactic. Must do it now, I’ll get a raise if I bring you in this week, you’re in this early, blah blah blah. If there’s a time pressure tactic or its too good to be true! Leave the meeting!!!
8) Think about it, you’re gonna make millions selling WHAT??? Do the math how many beads, juice, vitamins, soap, online websites, adult toys do you think you and your downline can sell, make a margin on, and get profit to you? Hand me the smelling salts.
9) MLM’ers act like they slept with the pods (Invasion of the Body Snatchers reference) They would sign up their grandmother if she could sign the initial check. Don’t worry Grandma, get 3 of your assisted living buddies to do it and you’ll have your money back next week. Plus this product will make you feel 20 again. Really, someone at the meeting has an Aunt who is now 90 and jogging again.
10)Face it, it’s not a real business (except for the owners/creators). In the end you’ll have nothing to sell, nothing to build, nothing to show except for 400 of the 500 business cards you had made.
11) You look like a fool trying to promote your real business and then when they don’t bite on that sale….reloading with the lobotomized speech about your MLM dream.     Best was a respected dermatologist promoting his MLM travel business.    Yeah…I’ll trust him with my skin cancer screenings.

I know…the self serving business broker is just trying to get you into a traditional business that makes money that old fashion way and he can sell. Guilty as charged. I guess I am wrong for thinking business relies on providing something of value that the marketplace can support at a margin that makes you money.

So bring on the emails POD people…..BTW, only complain if you have been in your MLM for 3 years or more…and make money.

I hear crickets…
Andy Cagnetta
ac@tworld.com

Change…new buzz word or as old as time?

Saturday, May 30th, 2009

Probably both! At Transworld we manage change every day in our client’s lives. Effective change in our client’s lives is our business and we get paid to do it.

But are you in your own life an agent of positive change? Do you embrace change, even cherish it? I do.

The definition of change agent “is someone who engages either deliberately or whose behavior results in social Change, cultural change or behavioral change.” I’ll add corporate and organizational change to the list.

President elect Obama ran a successful campaign based on the promise of positive change. Will it be as sweeping, positive, and impactful as promised? Probably not and it will probably will not be his or the new administrations fault, for there are many who resist or actually sabotage change.

Do you resist change, even positive change? In these times, you either embrace change or get run over by it. There is no doubt that you life in our business (and your 401k) has experienced, and will continue, to experience change.

So how will you handle change? Can you and your organization adapt and profit from it?

Buchanan & Boddy performed a study on the perceived effectiveness of change agents. On that basis, they compiled the fifteen most important competencies of change agents.

When reading through the noted skills, I can’t help but think of how these apply to my roles as new Chairperson of my association (IBBA), as CEO of my company, as a board member of a few charities, as an effective intermediary, and finally as a family man. Also, I can’t help but think how applicable these skills are to our world today. (Note that Bucanan & Boddy publish this list in 1992)

Note some of the traits of a good change maker. Sensitivity, goal setting, flexibility, team building, networking, tolerance, patience, communicative, enthusiasm, motivational, planning, visionary, conflict resolver, politically aware, influencer, global thinker.

Sounds like the perfect successful business person, and the kind of skills that will navigate you and or your company through any economic or political change. How do you acquire these skills? Simple, education!

But filling your head with ideas is not enough, you need to learn how and when to apply them. How do you do that, same way you get to Carnegie Hall? Practice, Practice, Practice!

Where can you practice these change agent skills? Everywhere. But you must get involved. And there are many ways to get involved in positive change in your home, community, business, and industry. From things like home projects with family, joining a board or volunteering at a charitable event, strategic planning or simply surveying your own agents/employees in your own business, and lastly rolling up your sleeves and just doing it!!

I dare say have learned more from being a community volunteer, committee member, and board member than any schooling or class time ever taught me. It’s sometimes easier to be a leader of those who want to be led, than to be a leader amongst a group of leaders.

I challenge all of you to join me in being a positive, effective, educated and skilled change maker. We all need to take a role in our family, business, community and industry to assure our future.  Above all you need to change YOUR life and take control of your future.

Buying  or selling a business could be a great first step!

Andy Cagnetta
ac@tworld.com

Should you buy a business now?

Thursday, May 28th, 2009

The answer is a resounding yes!!! If you have cash and have the ability to work a business for a small return, then BUY NOW!!

I know…you think this is self serving. The business broker wants you to buy a business. While that is absolutely true, I am giving my own family members this timely advice to jump into the entrepreneurship pool!

Business valuations are down. Valuation multiples and the income used in the calculations are at historic lows. We will all be looking back at this time and remark “I should have bought ____ in 2009″.

Imagine buying a business now that used to make say $500K that currently makes $100k. If you buy it for 2 or 3 times, you would pick up a great business for very little money!!

There are many more reasons the time is right.

  1. Financing rates are LOW!! That’s if you can get any financing, but things are starting to loosen up out there.
  2. Sellers are financing the deals since there is very few sources of capital for buyers to choose from.
  3. Small businesses will drive the recovery. They always have and always will be the bedrock of our economy.
  4. To be small and nimble is the order of the day.
  5. Competition is gone or at least weakened.
  6. Once again the small guy with capital can win in today’s price sensitive marketplace.
  7. You have time to learn the business while it is slow. Many time the learning curve can take the better part of a year.
  8. With business being slow, you can focus on quality not quantity.

I am happy to answer any questions or concerns. Email me anytime for valuation, buying, selling business advice.

Andy Cagnetta
ac@tworld.com