When we look around the world today, there are many wonders, the best are and will are made by nature. Others are man made, and the book Dreams of Iron and Steel by Deborah Cadbury, Perennial, NY, 2004. celebrates 7 industrial wonders which we today we call infrastructure. The 7 are The Great Eastern (ship), The Bell Rock Lighthouse (to save lives in the shipping industry in Scotland), the Brooklyn Bridge, the London sewer system, the Transcontinental railroad, the Panama Canal, and the Hoover Dam. The interesting thing about all of them is although there has been updates, except for the ship all still exist and are used extensively.

Each of the wonders have many characteristics which include for very good reasons a solution was needed but how and at what cost? and who should pay for the costs? In the end, government guarantees were needed, because although people could see the reasons why something needed to be done – it was beyond their abilities to do. Each of the wonders has its dreamer who brought dreams to reality, and the journey was a long one with many trials and tribulations. With every dreamer, there are many possible solutions, how the one that can leads to the solution is a great story. Another aspect is for each wonder, new methods had to be developed, adapted, devised, brought forward to ensure the completion. The solving of the puzzle took the efforts of many people.

Linking to dividend paying stocks, dreaming of the solution and bringing forth of the solution is not where you will often find dividend paying companies. As the solutions are solved and need for ongoing operations. that is where the role of dividend companies operate. In the case of the railroads, after consolidation of the lines to reduce the competition, but not too much, is the preferred space. Dreamers are needed to solve the puzzles that we are faced with, it is good to know about them and watch them, but unless they have a monopoly like position, cheer on the sidelines and takeover when they are done.

There are more questions than answers, till the next time – to raising questions

The end of the year is fast approaching and with it millions of people are buying Christmas gifts. In years gone by, Christmas was a time for gift giving because the Wise Men brought gifts to the baby Jesus. Now days Christmas is a paid holiday and the tradition of giving gifts remains. However you celebrate the holiday, hopefully the giving of the gifts is as much importance as the receiving. From an economic point of view, western countries would not exist without retail shopping. The retail shoppers of the world drive the economy. This is both a good and bad thing however the bad generally shows up next year in the credit card bills and if they are not paid it is called consumer debt. As an investor, there is opportunity. Whether you buy gifts or not, it is time to check out the retail stores to see how people are spending armed with the knowledge many stores make their profits during the last quarter. If you see fewer shoppers, perhaps staying away from the retail store providers is a good thing. Two companies that will benefit whatever sales are MasterCard and Visa and they charge higher interest rates.

Linking to dividend producing stocks, both VISA and MasterCard are classic stocks a dividend buyer is looking for. They both have high barrier to entry, the competition is cash, but does the average mythical consumer have enough cash or do they need the help of the credit card? Both companies pay dividends, they both have strong market share, both have stocks that have risen in price, they both have high rates of return and as the western economies in general pick up from the 2008 fall out, the stocks should continue to rise as more people unlock their credit cards.

There are more questions than answers, till the next time – to raising questions

If you like baseball, then the book Odd Man Out written by Matt McCarthy, Viking, NY, 2009 will appeal to you. The book is about life in the minor leagues, in this case, the Anaheim Angels farm teams. The structure of baseball is the very best players play in the Major Leagues and compete for the World Series Trophy. Below the major leagues are minor leagues or players that have potential with some seasoning to move up to the major leagues. Players are drafted from high school to college and get paid to play baseball, if they can survive the toll of the minors, they can survive anything.  Baseball is often called a game of statistics and over the years (since the publication of Moneyball) there has been a change in which statistic is the most important in trying to predict a future major league player. The book is about the human element which remains the most important variable – mental attitude and heart which are harder to quantify.

Understanding the steps to a successful ask is helpful in making decisions. The understanding of the steps is a book written by Laura Fredricks called The Ask, published by Jossey-Bass, San Francisco, 2010.

Step 6  Asking for yourself is not asking for a favour – it is asking for what you believe you deserve. Asking for a job, asking for a raise, asking to be on a project, asking for a business venture all have the same principles – you need to do your homework of the organization, its people and culture; predetermine the types of questions you will be asked to turn negatives into a positives; listen to the other person and to ensure you ask for what you want including discussing follow up.

Step 7 The anticipated responses you may receive should not prevent you from asking if you feel the time is right, provide the Ask is done with sensitivity and understanding. The person may say no, but they may also say yes. It is important to expect a yes, because you have done your homework; anticipated many of the responses to no and have turned them into positives; you have listened, paid attention to both your body language and their body language, you are in a position to hear yes.

Step 8  The Ask is 25% of your time, the follow-up is 75%.  You have done the ask and next step is the follow up. Many people consult with others before a final decision is made – set up a time and date to follow up. Send a note thanking the person, call them, send information requested, have different people in the organization contact them, keep them updated on anything new with the organization and stay positive. Follow up is ensuring you over communicate rather than under communicate.

Step 9  No now does not mean no later. Everyone has a reason to say no, with the homework you have done and continue to do, for the person does have an interest, taking the time to cultivate the relationship may mean a no can become a yes.

Step 10  A yes now will lead to yes later if you execute a solid stewardship plan for each person.  Once someone has said yes, you ensure you over communicate with them, to continue to bring them into the organization (perhaps at the advisory or Board level) and bring in future dollars.

Linking to dividend paying stocks, much of the process of asking for money or anything else involves communication. When the dividend results are announced, communication is important, to determine whether to hold or move to other alternatives. Communication is important in asking for money as well as giving continued support. As holders of dividend stocks as long as the dividend is being paid and the dividend is sustainable, it is easy to continue to reinvest in the company and make good returns.

There are more questions than answers, till the next time – to raising questions

In all areas of life, money is a constant – we need a set amount for housing, food and shelter, the absolute number depends on the individual. After those have been successfully looked after, we all will be asked for gifts, donations, investments in a variety of other segments. Some of the segments will be related to family, some will be related to what as an individual you are interested in and some of will be related to what we see as things the government does not fund. Perhaps the government should fund, but similar to insurance, sometimes it is just outside of the regulations. Bringing into the regulations is a job itself. In all the areas above and in business itself someone or some organization is asking us for money. Understanding the steps to a successful ask is helpful in making decisions. The understanding of the steps is a book written by Laura Fredricks called The Ask, published by Jossey-Bass, San Francisco, 2010.

In the book, the author outlines 10 Steps in 10 Chapters how to successfully complete asking for money. In the case of Ms. Fredricks, she has worked for many non profits including successfully raising money for post secondary institutions and museums. Whether the figure is low or high, the principles will remain the same.

Step One – Know your views on money and the importance of money, before you ask for money.  There are many reasons given in the book what people believe will be the reasons for not asking are. There are equally valid reasons what the results are if you ask for money – think about where the money is going and what the results are.

Step Two – The Ask without a well-thought out plan will result in no money. The dollars that are asked for, the greater the need by the other side for accountability, thus how is their money would be used or the plan is needed. If you were in Scouts – the motto was Be Prepared or do your homework in advance. Part of the homework is the script.

Step Three – A person of great wealth does not always give great wealth.  When you see people in the top 1%, you know although many have the ability to write a large cheque, the same people receive many hundreds more requests and have more gatekeepers before they will consider writing any sized cheque. Before asking for more money the formula of Education + Involvement + Cultivation  + Inclination + Assets = the Right Time to Ask. All of the parts of the formula must be followed and the greater the expected ask, the more the pre-work must be done.

Step Four – When You Ask for money you are not taking something away; you are giving someone the opportunity to feel good. When you have done the homework in Step 3, then it time to determine who should ask and in what setting. Before asking, the asker must have give money. The ideal person is a person that knows the person very well, has made a considerable gift of both time and money to the organization and is willing to follow up with the Ask, long after the Ask has been made. Whenever possible two people should attend to follow both the said and unsaid things.

Step 5 – Top-level gifts require that someone in a Leadership position do the Ask or be present for the Ask if they were part of the cultivation process. All gifts are important, the longer someone has donated to the organization, the greater the possibility that they could increase their donation. Doing a special project often helps with the need to ask. In order to receive a donation at the highest level those in leadership of the organization at the Board level should do the ask. Before the ask all the levels in Step 3 must be done or your homework has to be completed.

Linking to dividend paying stocks, all profitable companies are approached by non-profit institutions for money. How the company gives its money, what benefits it sees from the giving is important to know. Profitable companies use part of their goodwill to outreach to non profits for the good of the community. The non profits know and use the information to gain money, they both use and need each other. As a shareholder often your interests align with the same non profits and support the dividend paying company to continue their donation pattern.

There are more questions than answers, till the next time – to raising questions

The title refers to a very good book about what it takes to be an entrepreneur and build a great business. The authors of the book are Anthony Tjian, Richard Harrington and Tsun-Yan Hsieh and the book is called Heart, Smarts, Guts and Luck published by Harvard Business Review Press, Boston, Mass, 2012. The authors tried to figure out the basic components of what it means to be an entrepreneur.

In summary of the book – there are many other parts of the book – questions to ask yourself and others about which of the categories you are generally in and how to understand the other categories. We all have characteristics of the four categories – Heart, Smarts, Gut and Luck and hopefully while we all want luck to happen we do not rely on it as the number one attribute.

The book includes some time tested and true practices:

1) The 3 Golden Rules –  a) people should always be your top priority; b) focus on the business model and how you plan on making money; c) always start with the niche market – competition should be easier.

2) Be the Best at Something – there are 4 broad categories which one are you?Best Quality; Best Bang for the Buck; Luxury and Aspiration and Must-Have

3) Think Big, Start Small and be able to Scale Up Fast

4) Repeat Customers and Revenues Make Life Easier – Recurring revenue + Fixed cost leverage = Superior Cash Flow

5) Get the Right Customer  – There is no average customer. Aim to be approximately correct about your top sub segments rather than preciously incorrect about the average.

6) Simple Rules and Questions for Gaining and Retaining the Best People – 4 rules to help are: help employee create a meaningful role; give feedback; offer the context of professional development; and say thank you.

7) Accountability Makes or Breaks Your Culture – are the incentives you offer to increase sales and revenue the same as your culture that you say you want? remember everyone sees what is happening in the company, they may not know why, but they see.

8) Embrace Failure – at some point a project or drive for market share will not work, learn what went wrong, when you needed to ask for help; what you skills are best at and what they are not so good at. Then and only then failure leads to opportunity.

The book offers self assessment tools or check out their website www.HSGL.com for a host of great reference materials.

Linking to dividend paying stocks, the tools will help you evaluate management of the your companies as well as yourself, thus making you a better investor.

There are more questions than answers, till the next time – to raising questions.

The title refers to a very good book about what it takes to be an entrepreneur and build a great business. The authors of the book are Anthony Tjian, Richard Harrington and Tsun-Yan Hsieh and the book is called Heart, Smarts, Guts and Luck published by Harvard Business Review Press, Boston, Mass, 2012. The authors tried to figure out the basic components of what it means to be an entrepreneur.

The letter in the title refers to luck. Luck matters, it is necessary and the harder you work, the more luck you will have. The reason for this saying is luck is often brought about by the interaction with other people. You are working on something, you talk to other people, you watch internet videos or you are at a conference and listen to other people. Something you heard, makes a connection to your what you are working on. The connection allows you to see forward to a solution. If you had not been working, you would have missed it. In order to be open to luck you needed the right attitude and the right relationships. To have the right attitude you need a mixture of humility, intellectual curiosity and optimism.

Being people we go through a range of emotions daily, we are not always curious or optimistic, there are pressures on us from a variety of sources. Business goes through cycles, sometimes everything we touch is great, sometimes no so great. To staying open to ideas from all sources is a challenge, most of us tend to limit what we read and who we associate with, it is a normal thing. The challenge is to be open to ideas.

Linking to dividend paying stocks, when a company is profitable and has been paying dividends for a number of years, its senior people should have a wide number of relationships into the community and business. Most dividend paying companies have a venture capital fund to invest in new ideas, many senior executives serve on boards or committees to broaden their networks, one method is check their social network site. Who are they connected to? If the people at the company are very isolated, unless the company has a monopoly and high barrier entry you might want to find other alternatives.

There are more questions than answers, till the next time – to raising questions

The title refers to a very good book about what it takes to be an entrepreneur and build a great business. The authors of the book are Anthony Tjian, Richard Harrington and Tsun-Yan Hsieh and the book is called Heart, Smarts, Guts and Luck published by Harvard Business Review Press, Boston, Mass, 2012. The authors tried to figure out the basic components of what it means to be an entrepreneur.

The next stage is Guts refers to initiating, enduring and evolving. Anyone that has vision of bettering a process is automatically battling the status quo or very slow change. The status quo is where most people are at because you rarely get fired for not changing the status quo or not rocking the boat. If you believe and see a different vision for what can be, structures will have to be changed to implement your vision. In most companies, there is a limited opportunity to do so and you have to find the right people. One of the reasons why companies are started is the Guts category – few would believe in them or it was easier to start a new company.

Guts is divided into 3 categories to initiate; to endure and to evolve. To initiate is to start to take the ultimate leap of faith where little evidence suggests your venture will bear fruit. This is a large step for there is more ideas to be found, than people with the desire to actually do them. Many ideas come with only  … or waiting for the time is ripe … or something along those line. To actually make the step needs confidence, passion and conviction.

The guts to endure refers to the long journey necessary to test your idea and see if it works. If you understand that many ideas will not pan out, then failure is not an option but a reality. Not trying, not going forth is the failure and the market will tell you if it is a success or not.

The guts to evolve is the ability to enact change within themselves. To bring an idea to reality involves different skills than thinking of the idea, the idea maker has to understand that and be able to change themselves. There is a fine line between perseverance and being stubborn. The change involves risk to both the idea person and the company trying to do the change, until it is accepted by the market and than everyone sees how good the idea is. Conversely if the market is not accepting then the idea needs to evolve.

Linking to dividend paying stocks, the success of the these companies is the opposite of guts driven, for staying profitable and paying dividends tends to push the company towards what has worked. For many years, it may have worked and how does the company transform itself to reflect what now exists. One tried and true method is the profitable company has the ability to buy new companies which are involved in more rapid change. How the combining of the companies works is something for the dividend paying shareholder wish to pay attention to. What type of companies are bid for and being bought and what does that say about the company strategy. If you like it, the company can continue to be a hold.

There are more questions than answers, till the next time – to raising questions

The title refers to a very good book about what it takes to be an entrepreneur and build a great business. The authors of the book are Anthony Tjian, Richard Harrington and Tsun-Yan Hsieh and the book is called Heart, Smarts, Guts and Luck published by Harvard Business Review Press, Boston, Mass, 2012. The authors tried to figure out the basic components of what it means to be an entrepreneur.

Smarts is all about pattern recognition. Whether it is book smarts, street smarts, people smarts or creative smarts. Most people fit into one or more categories and all have advantages and disadvantages depending on the stage of the company and what they are trying to do. The smarts refers the ability to organize, simplify and prioritize.

Those with book smarts tend to want to analyze everything, that is a great attribute but if you over analyze, there is no action or you do not see the answer in front of your nose. If you do no analysis, you will not receiving funding to grow, or there needs to be a balance in the analysis.

Street smarts is learning what it is like for your customer. Street smarts relies on observation, experience, being practical to ensure things get done. Often times the common sense solution which those with street smarts see is often not seen by book smarts, because of regulations that were put in for good reasons. Street smarts is often called thinking outside the box or what is it like in the trenches, where many decision makers do not go. (an example is Undercover Boss).

People smarts is dealing with people – both good and not so good, but generally they care about the people. Theses people engage a pattern recognition that decodes and intuits how people will react. There are multiple advantages – how people make decisions; building and maintaining strong relationships; breaking down the cynicism that people have; and managing people for the good of the organization.

Creative smarts includes the ability to grasp patterns that other do not These people are idea generators or innovators. They have the ability to change the game and see what others do not see. The result can be magical customer experiences.

The perfect blend is each type of smarts comes with its own risks and shortcomings. Business smarts is about mixing and matching different types and not just seeing the patterns, they see the big pictures and move to take advantage of it.

Linking to dividend paying stocks, companies that are profitable are often move to conservative method of operations – they like risk when it makes money otherwise they do not want too much. The smarts of the company is what you listen or read about when senior executives express their outlook for the future. Do you agree with the balance or is there one? what innovations are the companies looking at? and could they expand to bring in addition segments of how the company has defined itself?

There are more questions than answers, till the next time – to raising questions