Basic Budget Priorities: The 3 P's

One of the most often neglected, overlooked, or under- emphasized needs for most organizations is creating, and effectively using a properly designed and formulated budget. I have created many hundreds of budgets, and assisted/ guided/ counseled in the preparation of hundreds of others. One of the greatest frustration to someone like me, with a substantial background in financial services, as well as leadership training and consulting, is the attitude that many involved in leadership positions seem to possess about budgets. I have seen some who just believe it is a somewhat meaningless exercise, and others who even believe it is a waste of time. Others still, who often seem to believe that they are properly preparing budgets, seem to simply look at previous budgets, and, in essence add a percentage from year to year! Whether this is being utilized for a not - for - profit organization, any business entity, in personal financial planning, or, for example, as it pertains to realtors, in terms of operating their businesses, marketing themselves, and their client's houses, a keen understanding and/ or grasp of budget essentials, is helpful and needed. Those who feel strongly about the need for budgeting effectively and thoroughly believe in the three P's for creating a budget: Predicting; Prioritizing; and Preserving.

1. Properly prepared budgets predict the needs of any organization, or entity. They look at revenue and revenue trends, and give realistic estimates instead of pie in the sky, or overly optimistic predictions. On the expense side, they thoroughly examine the operations and needs of the organizations, in every and all areas where there are possible expenditures. Will present levels of staffing be sufficient, are they too high, or is greater staffing needed? What are the costs/ benefits involved? What factor or factors might impact revenues? What is organization doing (or not doping) to attract and maintain members, as well as sponsors and donors? What is the overall business plan, vision, goals, and mission of the organization, and how might certain actions impact that? Is there an anticipation for any large expenditures? Does the organization maintain reserves in the areas of maintenance, etc., to address these potential expenses in a proactive, prepared manner?

2. What are the priorities of the organization/ entity on a short- term, intermediate term and long term basis? Are monies being spend in a prioritized basis, and is the money on programming, communications, and other areas being done on a priority basis, where the most essential, relevant, pertinent, and pressing matters being given priority treatment?

3. What is the organization doing to safeguard its monies, and other resources? Have alternative approaches been continuously examined and re- examined to assure the group is getting the most bang for its buck. Have operational efficiencies been employed fully? When was the last time the budget was prepared on a zero- based budget basis, where every expense item, program, etc., is reviewed independently, to see if it optimally meets the needs of the organization? Are reserves monitored, and fiscally prudent policies in areas such as investments, accepting and using donations, etc., the rule, rather than the exception?

The strongest organizations realize that while there may be times that an organization may get away with less emphasis on budgeting and budget policies/ philosophies, in the long run, the groups that take this process seriously, on a continuous basis, remain strong, throughout both good times and leaner times. Individuals, and those handling funds, or expenses, in the course of their businesses, should merely apply these organization rules, to their own scenarios!

Understanding Human Nature - They Key to Effective Communication

How often have you personally wondered, or overheard someone else pondering the key components of successful, effective and meaningful communication? While perfecting communication skills undoubtedly encompasses numerous aspects and acquired traits/ knowledge, unless it begins with a clearcut focus on enhancing one's abilities and skills in terms of understanding human nature, there can be no way to effectively communicate. One of the most famous and successful life insurance salespersons of all times, Ben Feldman, insisted that success in any type of interpersonal sales required only about one percent technical knowledge, while requiring ninety nine percent understanding human nature. How can anyone effectively communicate his message if he lacks the ability to appreciate and understand the perspective, needs, nuances and preferences of others? The reality is that best salespersons, leaders, managers, etc., invariably are those that realize that the probability of getting one's message across necessitates effectively communicating, and that requires proactively seeking out learning as much as possible about human nature.Whether you are a Real Estate professional, Investment/ Financial Adviser, or Negotiations professional, it is essential to realize that it is often dangerous to over - generalize, rather than follow a one - size - fits - all mindset/ approach.

1. What does understanding human nature actually mean? In the vast majority of situations, it requires proactivity, rather than passive behavior, because one must use many of his senses, including his sight, hearing, etc., and pay attention to how others behave and act, and why. For example, the most successful salesperson is generally the one that finds his potential buyer's "hot button" and focuses on how the service and/ or product will improve something for the buyer. Understanding human nature means that the discussion must encompass needs, and unless one is willing and able to understand the various nuances, preferences, and even quirks, his ability to effectively communicate is limited and even diminished.

2. It is important to understand that others are generally far more interested, and therefore potentially motivated to action, when the discussion is about them, and their needs. Great communicators invariably discuss issues and ideas in terms of how they impact and serve others, and not merely in terms of services offered. Most people need to know how something impacts and effects them, and why, rather than merely being told about services provided. In order to do so, the priority must be placed on getting a better idea and understanding of human nature.

Great communicators invariably are those that prioritize participatory discussions, because once you get others to participate, you learn far more about them. A two way discussion is true communication, while merely making a statement without participation is talking at, rather than the necessary speaking to, one's potential audience. Remember and understand that we each have two ears, but only one mouth, and therefore, we should listen far more often, than we speak!
 

How We Interpret Economic Data & News?

Economic data and financial news might be the most analyzed and, at the same time, the least truly understood information in the news today. For example, is the fact that China's economy continues to grow good or bad news, and why? One analyst might report that China's continued growth is indicative that there is still growing worldwide demand, which should be good for the world's economies. At the same time, other analysts will see this growth as occurring as a result of the Chinese government pumping large infusions of monies into their economy, and at the same time, artificially keeping the value of the Chinese currency "cheaper" than it would be if it were permitted to be freely traded on world markets. Still another economic analyst states that this growth is causing runaway inflation and an overheated economy, that the analyst then refers to as "The flip side of the American economic problems." Every issue seems to have multiple interpretations, and the US Federal Reserve, appears to be quite sensitive to the potential ramifications of any actions they might take. However, aren't there also ramifications of doing nothing? How we gather and interpret Unemployment, joblessness rates, inflation, COLA (especially as it relates to indexing Social Security benefits), etc! Here, in Nassau County, Long Island, NY, where there is a supposed real estate tax cap, there is often a significant difference between that cap figure, and how much individual real estate taxes go up!

The economic analysts breathtakingly await the various weekly "reports," including the jobs reports (which should actually be referred to as the 1) Those submitting new preliminary unemployment applications; and 2) The official unemployment rate. Then, they argue about the numbers, which are invariably either better or worse than "expectations." Whose expectations, and why do we continue to refer to them if the actual numbers are almost either better or worse than anticipated? The official unemployment or joblessness rate is another curious number because it only includes those that are still actively searching for employment- that is, are presently collecting unemployment benefits. Therefore, this does not refer our count the under-employed, the consultants whose income have dwindled, commissioned salespersons incomes, or small business owners (who are ineligible for unemployment benefits). Many believe that the approximately 5.8% official rate becomes closer to over 10%, when these situations are also included.

The inflation rate, or the manner in which the Cost of Living rate are calculated is another controversial situation. When gas at the fuel pump, and home heating oil have risen dramatically, and airfares are significantly higher, and tolls and train fares have jumped, and food per ounce is significantly more money, am I the only one that wonders how the official inflation rate is stated as being very, very low? The price of eggs, the price per ounce of many foods (for example, many companies merely make smaller sizes, so they can claim prices are steady, and many other factors, tells anyone with common sense, that there is a significant difference between these official figures, and reality. When Donald Trump claims his father gave him a small loan of only $1,000,000, do you realize that inflation - adjusted, it comes to well over $8 million? Terms like seasonally adjusted, commonly used, essentials, non essentials, etc., further confuse the issue. Suffice it to say that I doubt there are too many people who believe that inflation number. Of course, for we conspiracy theorists, we might find it curious that the same government who has a vested interested in keeping the official numbers low (political, Social Security Indexing, government union contracts, etc), are also the ones that calculate this index.

One month we show improvement in housing starts or housing sold. Another month a drop. However, is this an increase or drop from what levels, and how long does a homeowner have to wait to have his home sold today versus a few years ago, and at what price point?

The point of this discussion is simply that we should all be cautious and beware when we see these financial and economic indexes and numbers. While they no doubt, may have some limited value, I question whether that value makes up for all the 'spin," confusion, and misinformation that we receive whenever any of this data is released.

Happiness Comes From Helping Others

The Founder of the renowned civic organization, Grand Street Boys, the late Judge Jonah Goldstein was fond of saying, "Happiness is the one thing in life that multiplies by division. The more you give to others, the more you have for yourself." Goldstein used this expression repeatedly at meetings in the 1940's. If everyone followed this, wouldn't the world be a better place? Dictionary.com offers two definitions for happiness: "1. the quality or state of being happy 2. good fortune; pleasure; contentment; joy." At the same time, Dictionary.com offers three definitions of happy: "1.pleased or delighted 2. pleasing 3. bringing good luck; fortunate." Obviously, Judge Goldstein felt strongly that for one to be truly happy, he must repeatedly bring joy to others as well as himself, thus providing one with a sense of joy, pleasure, delight and contentment.

So many people today seem to follow the "What's in it for me?" philosophy. It seems that too many people today often only "do the right thing" if they believe it will somehow materially benefit them. However, when one realizes that many of the wealthiest individuals in the world are also amongst the most miserable, it takes far more than merely the accumulation of material things, or self- satisfaction, to bring about true happiness. How many truly happy people can you honestly say that you know?

Have you ever truly considered what makes you happy? Does your profession/ job give you a sense of happiness or self - fulfillment? Only when there is a consistent synergy between your personal happiness and what you do for a living, will you provide the best quality service, etc! Whether you work for others as a wage - earner, or you provide services such as a Real Estate professional or Financial Adviser, unless you prioritize your client/ customer, rather than merely making a living, how can you possibly enjoy what you do, and be able to take pride? Many only look at the short - term, and attempt to take a shortcut towards their personal integrity, but, in reality, only when there is a direct relationship between your efforts/ endeavors, and your commitment to absolute integrity, will you ever truly be happy, and in the longer - term, meaningfully successful.
 
Besides being a well known judge in New York, Jonah Goldstein was famous for founding a civic and philanthropic group known as Grand Street Boys. Almost all the members of Grand Street Boys were professionals- - most of which were attorneys. The legal profession has often been much maligned, yet it is one of the first professions or occupations with an organized methodology of "giving back" to the most needy, via the "pro bono" process. Attorneys are regularly expected to, and do, perform a certain amount of "pro bono," or free legal work, for those unable to afford the cost of legal representation. Judge Goldstein encouraged widespread discussion and fabulous debating during the Grand Street Boys meetings, and in an interactive manner, encouraged members to "give back" to society, in any number of manners.

Why are so many "troubled" individuals so very unhappy? Some people have attributed this unhappiness to a variety of items, including financial reversals, financial pressures, "personal problems," or the often-stated, "He's just not a very happy person." Yet, all evidence points to the fact that those individuals that appear to be "happiest" are often those that "give back" more to society and to mankind. "Giving back" does not have to be financial, but it can be. However, merely donating money generally does not create the level of happiness that non- financial volunteerism does. Think about the people you have met who are the happiest - - - aren't they invariably the ones who volunteer more, are more charitable, and/ or more philanthropic? Should this not be a valuable lesson to all of us, and to society, especially in these difficult economic times, when many worthwhile charities so much need assistance?

Judge Goldstein was certainly a sage. He was an incredibly successful man professionally, yet he got more pleasure, fulfillment and happiness from "giving back" than from anything else. Wouldn't our world, especially in these troubling and trying times, be far better off if more of us emulated him?

The Importance of Setting Goals

One of the major reasons that individuals often do not achieve to their potential is that they fail to effectively set goals. Setting a goal gives one the opportunity to have "something to shoot for," and to focus on. There can be no true achievements if we do not set goals.

Whether this relates to a specific group, or any individual, it is important to recognize that goal - setting is an essential component to making a meaningful difference. How can anyone expect to get desirable results, if he does not focus on, and pursue a course of action, based on achieving a goal? The best salespeople always focus with this mindset, as to true statesmen, and the highest quality service providers, including professionals we might not ordinarily think of, in this regard, including providing the best service and performance as either a real estate or financial professional.
 
When any organization starts a project, it needs to set goals, in order to measure if the project was a success. In order to set goals, one should do the following (think about these, also, in terms of how they might relate to a variety of individuals, on a personal level) :

(1) Think about what is the purpose or aim of the project.

(2) Think of an Action Plan to complete the project (See any of my articles on action plans).

(3) Determine a financial budget.

(4) Forecast a manpower - usage budget.

(5) Create a realistic timeline.

(6) Be realistic, but "aim high."

(7) Figure out what assets or characteristics you and others have that will be helpful in accomplishing the necessary action to achieve your goal.

(8) Create a "wish list."

(9) Draw a line down the middle of the page. On the left side, list anything that might be helpful in achieving your aim. On the right side, list the obstacles that you can conceive of.

(10) Next to the obstacles, create an action plan to overcome those obstacles and challenges.
Many people speak of goals as if the mere creation of goals will cause you to achieve them. In my over thirty years of consultative sales and marketing experience, I have discovered that the creation of goals is merely the first step in accomplishing anything. Goals give you a parameter, to then create and work an action plan. Just as the mere creation of goals does not automatically cause success, the creation of an action plan likewise does not guarantee success.

In order to have success, one must first set the goals, then determine the best course of action, and then, most importantly "work the action plan." Nothing will get done unless all these steps are effectively done in sequence.

There are always individuals who look for a simple way to do something, bypassing effective and comprehensive planning, or stalling and setting no goals. Weak individuals become weak "leaders," and weak leadership is no leadership at all. When someone doesn't follow through on a personal matter, it hurts only that individual. When someone gets involved in an organization, and assumes a leadership position, lack of proper planning, organization and goal setting, is potentially disastrous. Goal setting is extremely important, but for one to achieve one's goals, action is necessary!

Price Is Always Important, But Not The Only Thing/ Consideration!

Especially in challenging economic times, people seriously consider how much things cost and what the price is. When I was the Chief Operating Officer of a natural products manufacturer years ago, I remember that our price point was a serious consideration, in order to best position our products optimally in relation to others. However, while pricing and costs are important factors, when it comes to conferences and conventions, a far more important factor is almost always perceived value.
In my three decades of hotel negotiations, event planning, and conference and convention planning and operations, I have witnessed repeatedly, situations where organizations over-emphasized only the price that participants would pay. In doing so, they often neglected creating a program and agenda that would attract attendees. Sometimes even more importantly, these organizations did not sufficiently emphasize the attendee's conference experience, and when that attendee went "back home," rather than being the organization's best ambassador, he reported a less than stellar experience. When selecting the best real estate professional or financial advisers, to serve you, understand that performance, skill, understanding, and negotiations, as well as other factors, are generally, far more essential than merely looking at something like the commission paid. What's the net impact, etc?
 
The almost laughable, if it were not so incredibly short-sighted, part of this is that the amount of "cost savings" that these organizers implemented, had little impact on attracting significantly more attendance. However, at the same time, this reduction created financial risk for the organization and an inability to provide a superior attendee experience.

Organizers must recognize that a small price decrease in the fee for attending a conference often has little real impact on attendance. If it works at all, it only works in local events, where there are few expenses incurred by attendees besides the registration fee. However, many conferences require travel and hotel costs, and those costs often "dwarf" the registration fees.

In addition, if an organization is going to lower its registration fee, by how much will they reduce it? How much is a significant enough reduction to encourage additional attendance? What will be the overall impact on what conference organizers can do, when revenues are reduced?

I have heard numerous conference and convention organizers state that the reduced revenues will be offset by increased attendance. However, what these organizers often under-estimate is the true cost to the conference per attendee. If it takes more attendees to generate the same revenue, and registration fees are reduced by, for example ten percent, how much will attendance have to go up to offset the drop in revenue combined by the true cost per attendee? In many cases, a ten percent registration fee reduction will require close to a twenty percent increase in attendance and registrations.

Unfortunately, like many things done by many organizations, their conferences are often run by well-meaning individuals, who are, nevertheless, less than professional conference and convention coordinators. Organizations must analyze both the short term and longer term ramifications of addressing solely the registration fee issue, without, at the same time, analyzing the perceived value aspect. It is essential that organizers fully understand all aspects involved, including, especially, understanding their niche or target market.

Remember that there are 2 component parts of value: actual value, and perceived value. BOTH are important considerations!
 

What Really Happened To The US Economy?

For most of the twentieth century, the American economy was considered the "rock" that all economic indexes and guides were based on. The worldwide pricing of most of the world's commodities, such as gold, silver, oil, corn, etc., have been priced based on the U.S. dollar. Of course, in recent times, when the U.S. dollar weakens against many other currencies, commodities such as oil have, at least partially, responded to this weakening, by seeing their prices and their "future" prices go up by an additional amount, to at least somewhat offset this weakening. Of course, many also believe that items such as: supply and demand; possible manipulation; profit - taking; etc., are also significant factors.

Various economists have many different opinions as to what and who were responsible for this weakening in the American economy, and of the U.S. dollar. Those using historical perspective always point out that when in the middle of the twentieth century, the U.S. dollar transitioned from a Silver Certificate to a Federal Reserve Note, that it weakened the perceived value internationally, of the dollar. Others point to the trillions of dollars of accumulated United States government debt, that today has made the interest service on the national debt the second largest component of the U.S. budget, behind only the military budget. In addition, most companies today are multi - national, and thus, the American economy, is often intricately tied to the world economic conditions.

In the 2000 election, with then President Clinton leaving a surplus budget in his final year, Vice President and presidential candidate Al Gore kept suggesting that Social Security payments be placed in a "lock box" instead of how they are presently handled, as just another "kitty" of government funds. This idea was never adopted, and we are constantly reminded that Social Security is running out of money. Isn't it ironic that while President Reagan in the 1980's was famous for, and is remembered for his tax cutting and his tax reduction and government spending reductions, that the Social Security "tax" raised dramatically, and is now about three times greater of a non-tax "tax" than it was when Reagan made his pledge. Of course, Social Security is a tax, and it is a rather regressive one at that, because even those below the level for paying taxes, still must contribute to Social Security, and that higher income individuals only pay on a specific amount of their earnings (which has been consistently raised to considerably over one hundred thousand dollars in earnings). Therefore, shouldn't Social Security be considered an entitlement (because it was financed by taxes, etc), than a benefit, and shouldn't balancing other factors in the budget, be unrelated to this program?

A study of the way our Federal Reserve has manipulated interest rates has caused many to question how responsible that institution might be towards the overall economic mess. Of course, the entire banking fiasco that began in about 2005, and still continues (to some degree), has seen huge amounts of "recovery" funds thrown in to rescue institutions that were "too large to fail," yet selectively certain institutions such as Lehman Brothers was permitted to basically do exactly that - fail. When did inflation become a good thing, and lower unemployment become something less than optimal? NO wonder the economy is so confusing to most of us!

The more one reads about the economy, the more one finds identifiable villains. There is no easy answer, no matter how much either one political party or the other claims there is. No one can be sure that if the recovery funds were not spent the situation would have been even worse, perhaps devastating. That is pure speculation. However, the reality is, that until the politicians begin to study playing partisan politics, and make job creation, energy independence/ policy, and the economy the top priority, we will see a continuation of trying times. It is time for the American electorate to demand responsible government, now. Yet, observation of the political campaign rhetoric currently being employed, it is difficult to feel confident about any of the suggestions or approached!

Selling, & Sales, Are NOT The Same!

Carefully observe, and beware of anyone that responds that he is in sales, when asked what he does for a living! It is important to understand that there is a significant difference between selling and merely being in sales. While many individuals are in positions of sales, they are not all actually selling in a professional and impactful manner. If you are involved in any form of sales (and remember that nearly everything we do is selling, either a product, a service, or ourselves), you should ask yourself some pressing questions: 1. Are you prepared?; 2. Are you a closer?; 3. Is your technique professional? One of the best salespersons I have ever met had a cartoon pasted on the back of his office door, that he referred to constantly. It showed a man badly in need of a shave and looking disheveled, and the caption was, "Selling is like shaving. If you don't do it every day, you're a bum!" If you are considering, for example, the best real estate professional, or financial adviser, to address and serve your needs, you will learn a lot about an individual, merely by asking this question, and observing their response. Remember that your best interest are generally served by an individual who is proactively involved in the process, as a true professional!

1. Professional sales means committing to preparation, thus enhancing and potentiating one's techniques and seamless efforts. When this is done, it often does not even appear to be selling, but becomes second nature, seems effortless, and is automatic. Mere selling means trying to make a sale, often appears desperate or pushy, and often looks merely robotic, somewhat forced and generally artificial and scripted.

2. Are you a closer? This means do you consistently ask the other person for a commitment, some action or commitment? Being a closer often means that you close your presentation merely by saying something like, "Doesn't it make sense?," and waiting for a response and "writing up an order." Are you able to transform a high percentage of your presentations to sales (or commitments, etc.)? Is your closing percentage better than average, and are you able to close the deal while others often are unwilling to persevere?

3. How is your sales technique? Is it technically sound? Do you seem confident without appearing either smug or overly pushy? Do you look forward to handling and responding to objections and/ or concerns expressed by those you present to? Does your presentation move forward like a quality story does, with a beginning, middle and end, that begins by making others interested, motivating them to listen and care more, and then transform that to taking the action you desire? In other words, is your presentation both impactful and meaningful enough that others "see the light"?

Don't think that simply holding a position in sales mean you are involved in selling! While being in sales merely describes your position, selling involves a proactive, strategically arrived at, position!

Have Business Ethics Become Just Another Oxymoron?

We often read and hear references to business ethics. Undergraduate and post graduate courses dedicate large amounts of time and resources to the topic. However, if one were to ask the average consumer if he believed that most businesses were conducted in an ethical manner, we would predominately receive negative responses. Simply stated, ethics can be defined as doing the right thing, the moral thing, and treating others with honor and respect. Related to business, this concept would include several items, and when we evaluate how most businesses conducted business, we would often avoid referring to these practices as moral. Many professional organizations and/ or groups, publish and emphasize a Code of Ethics, including real estate, fundraising (the Association of Fundraising Professionals' Code), medicine, dentistry, law, etc., yet an objective analysis of actual behaviors often differs with the supposed code!

1. One of the necessities of being ethical is telling the truth. However, when we look at how businesses, services and products are often promoted, the truth is stretched rather thin. One example, of course is the mobile communications or cell phone industry. Each carrier runs ads trying to convince us how superior they are. However, since there are no legal requirements even for using terminology such as "4G," and each carrier handles their lines differently, there is often quite a bit of variation. For example, going strictly by its ads, one would believe that Verizon cellular service is nearly perfect. Its advertisements makes claims about the clarity of its calls, how few calls are dropped, its speed, etc. While that is the case in some areas, several of my friends on Verizon service experience dropped calls, etc., in various areas, while having excellent service in others. ATT Mobility claims its system is fastest, and in some areas it is. I use the system and have had wonderful experience, yet, I know others who have been extremely disappointed. Sprint customers have similar experiences, and I have had wonderful experience with Sprint's Air Card, which works well nearly everywhere I've used it. However, as good as it is, it is certainly not as quick as wired or WI-FI service. Every other service has its proponents, as well as its attackers. The issue is not which service is the best, but rather how the services promote themselves. While effective advertising is self - promotional by definition, misleading ads are certainly not terribly ethical.

2. Have you ever gone into a store and purchased something, and the store quickly asks you if you'd like to purchase an Extended Warranty. While there is nothing wrong with offering this, nor with the stores making additional revenues doing so, have you ever been given a clear cut explanation of what is and is not covered, and the limitations. Remember, we are discussing ethics here! Do they even tell you the terms of the Warranty the manufacturer may offer, and for what length of time?

3. Investment Advisers are another area of ethical concern. Is the individual an unbiased adviser, or is he simply a salesman disguising himself as an adviser? Both duties and functions are acceptable, but which is ethical?

4. In Real Estate, does the average buyer truly understand the difference between being represented by a Buyers Agent, a Brokers Agent, and a Sellers Agent? In New York State, for example, by law, prospective buyers must be given an Agency Agreement that explains each of these. Yet, if the average buyer truly understood the differences, one would think the vast majority would prefer using a Buyers Agent, whose loyalty is directly to the buyer. Is this an ethical dilemma? How clearly does the average real estate professional review the pros and cons of these options, from the client's or customer's perspective? While the law states that one must avoid any sort of material mis- statements, as well as inform of any negative circumstances that might be adverse factor, the reality often becomes a rather conflicted, less than crystal clear event. How can one expect a real estate agent to fulfill his allegiance to his seller, while maintaining this absolute commitment to ethics? Obviously - it is somewhat challenging!

There are so many situations in business where there is the opportunity for a business, product, or representative to opt to either prioritize ethical behavior, or to merely do what might be expedient and in the store (or business, product, or reps) best interest, rather than the customer (or buyer). Therefore, one must wonder if business ethics is another one of those oxymorons, such as military intelligence, moral politician, etc.

Investments Using Real Estate, For Individuals

There is almost no one that does not realize that there are investment possibilities using real estate. Some people will tell you that they invest in real estate because they own a home, and they expect it to increase in value over time. While historically real estate has, in fact, increased in value over time, there have been periods where that has not been the case. When it comes to our homes, we should only look at them secondarily as possible "hedges" against inflation, over the long haul, but primarily we should consider where we live to be our residences, and the places of habitation, where we live. For example, people who have purchased homes three to five years ago, have seen the market value of their houses fall. While most of us believe that will be "corrected" over time, it is important to stress that we should not look at our personal residences as short- term investments. Others have shied away from real estate investing because they felt they could not afford the amount necessary, while others have often improperly bought investments with the intention of "flipping" them in a relatively short period. There are numerous ways, in fact, that one can invest in real estate.

One of the most obvious methods of investment is to purchase a property or properties, and then rent them. Those considering this option must realize that there are risks involved, as well as positive possibilities. The positive possibilities include certain scenarios. One such scenario is buying a house or condominium at a very reasonable price, and being able to rent it out. In some situations, it is possible to generate a positive cash flow, meaning collecting more rent than the amount expended. One should remember however that there is also something known as the opportunity cost of money, which compares what might have been made if the money used, for example, for a down payment, were able to be invested elsewhere for a greater return. Another consideration should be the very real possibility that a tenant may either be slow in paying rent, or "skip out" completely, that the property go vacant for any period of time thus not bringing any money in while the owner still must pay the carrying charges, etc. In addition, one should figure in the wear and tear, insurance, utility costs, etc. Of course, the owner also gets certain tax advantages including such things as depreciation, cost deductions, and possible profits, as well as the possibility of the property appreciating in value over time. So, as you can see, like in most things, there are pros and cons in that scenario.

People using the above scenario should also make the decision whether they will be actively or passively owning this property. I advise speaking to a knowledgeable tax professional so that you fully understand the requirements of each.

Another way to invest in real estate is through a Real Estate Investment Trust (REIT) or as a partner in a Real Estate Limited Partnership. In both these cases, professionals manage the properties, and you are an investor. In most situations, your liability is limited to your initial investment. I recommend doing thorough due diligence on the general partner and/ or manager, as well as discussing all tax ramifications with a knowledgeable tax professional. Potential investors should always be vigilant and remember that there is no such thing as a "sure thing."

Many people have done very well investing in real estate, while others have suffered financial losses. Real estate, like many other things, can often be a value portion of an overall investment strategy, when used in the right set of circumstances for the right person. Real estate is often not nearly as liquid as other forms of investment, so that should also be kept in mind. Wise investors allocate their portfolios in a diverse manner, and for the right persons, real estate investing, should be one componet.

Better Understanding Mortgages

When someone purchases a home, one of the most confusing and frightening aspects of the experience is getting a mortgage. There are so many different types, and so much confusing terminology.

There are 2 types of mortgages that most home buyers acquire: fixed rate; and variable rate. Historically, variable rate mortgages begin with a lower rate, and that rate is adjusted periodically, pegged to some economic index, such as Treasury bonds, etc., while fixed rate mortgages maintain the same rate throughout the term of the mortgage. However, in periods of very low interest rates, such as have existed for the past several years, there is very little rate difference between fixed and variable mortgages, and there may even be times that fixed rates are lower.

You may have read about the rate of a mortgage with points, or without. A point is an amount that one pays to lower the rate during the rest of the term of the mortgage. It is a "trade off" of paying more upfront to pay less on a monthly basis. One point equals 1% of the amount of the mortgage, so paying 1 point on a $300,000 mortgage would mean paying $3,000 up front to receive a lower monthly rate. In order to see if paying the "points" is beneficial, one must calculate the amount of savings per month, how much it would save over the term of the mortgage, and the opportunity value of the dollar amounts of the points. It is also important to understand that it might be necessary to pay "points" in order to bring the monthly carrying charge down, in order to qualify for the percentage qualifications that lending institutions use as a factor in determining qualification for the mortgage.

Mortgages also come in a variety of lengths. Most common fixed rate mortgages are: 15 year; 20 year; 25 year; 30 year; and 40 year. The shorter the term, usually the lower the rate paid, but since there is also a shorter repayment period, the monthly carrying charge may be significantly higher. Obviously, the shorter the term, the lower the total amount of payments. Not all individuals will be eligible for some of the shorter terms, because the higher monthly carrying charge would require a higher income for approval. If someone wants to pay off a mortgage in a shorter period of time, most mortgages today have no prepayment penalty (Years ago, many more did). Adding a small amount to one's monthly payment voluntarily will reduce the term (number of years needed to repay) of the mortgage significantly. Following this approach, also has the advantage that the "required" monthly payment is lower than in the shorter term mortgages.

If one wishes to qualify for a mortgage, it is very important to make sure that one has a fairly pristine credit report, and a relatively high credit scores. In today's economic climate, most lending institutions will normally exclude anyone whose credit score (e.g. FICO) is not around 700, or higher. It is also not uncommon for different rates to be offered, dependent upon one's credit score, and thus, the higher the score, the lower the rate (the best rate generally requires/ necessitates a 750 or higher score),  Before applying for a mortgage, one should request a free copy of their credit report, and if there are any inaccuracies, fix them. If there are any potential problems, it is essential to "fix" your credit before going for a mortgage. Lending institutions today are far more careful and cautious than they have been in the past.

Discuss the entire process, in advance, with your personal, real estate professional, as well as a quality mortgage adviser/ professional!

Communication Is Key to Customer Service

Businesses and organizations spend incredible amounts of time, energy and dollars to attract potential customers and supporters, yet often neglect training their front line people sufficiently to have the skills and the abilities to deal effectively with people in often very trying circumstances. In business, we refer to these individuals generally as Customer Service Representatives, while in organizations they are generally paid staff and volunteer leadership. In over thirty years of training people in professional interpersonal business relations, I have come to realize that the best way to effectively deal with upset people is to listen to them, and let them know that someone is listening and someone cares. How about service industries, such as real estate and investments, where there is generally a one - on - one relationship, between adviser/ representative/ agent, and his client or customer? Don't you want your real estate professional, and financial adviser, to clearly communicate with you, articulate his ideas, and how they will serve your best interests?
 
Then, if the representative knows the answer, he should calmly and thoroughly explain it so that the other person understands as well. If, on the other hand, the representative is uncertain of the information, the best thing to do is to calmly state that he is uncertain, but will get the information, and get back to the person within a specified period of time. It is then urgent that the customer representative indeed get back to the concerned party, and provide them with the information. It is always better to be open and honest, even if the answer is not what the other person may want to hear, than to fabricate an answer or avoid an answer. In addition, cliches and empty rhetoric must be avoided at all costs! Below I am going to provide a couple of examples that indicate what all too often is done, as well as try to explain what should have been done instead.

1. Several years ago, I was on a Yugoslavian Air (JAT) flight that was scheduled to fly from Athens to New York, with a short stopover in Zagreb. When the plane landed in Zagreb, we were told to deplane while the plane was to be serviced, and we would be informed when to re-board. About an hour later, we were informed that the plane needed a part, and that they were waiting for it to arrive shortly. In this extremely hot crowded terminal, no additional information was provided for hours. We continued to be told, "Soon." Finally, after about three hours (remember our original stopover was supposed to be less than an hour), I went up to a Customer Service counter, and the representative starting giving me the same rhetoric. I interrupted and said we both know that's not true, and finally said, "No more rhetoric and party lines. What's the story?"

Only then did the representative admit that the part and the mechanic both had to be flown in and their flight was not scheduled for hours, and that she did not know how long the repair would take. At that point, I suggested that passengers deserved some sort of consideration, if only a meal voucher, and that they deserved to know the truth. Miraculously, within about fifteen minutes, they came around and distributed meal vouchers (although you don't really want to eat the food at Zagreb airport), and made an announcement explaining the facts, and that they would make hourly announcements. A great start, but then when an hour passed without any further announcement, I reminded the nice customer service people that they needed to make the announcement. The lesson to be learned is that proper and competent customer service would have been to communicate openly and fully from the start, not make any promises that they could not keep, and always keep the promises made.

2. A few years ago, a power outage in my area (that lasted nearly a week) was a customer service fiasco. There was very limited communication of any sort, and most of what was communicated has either been contradictory or inaccurate. After all that time, we were never given a straight answer by the Long Island Power Authority, as to what to expect and when! Is that effective customer service?
Most people get somewhat upset when something goes wrong, but almost all handle it far better when they are provided accurate and caring customer service, than when the service is spotty at best. This is an essential lesson for all businesses, and all organizations to learn from!

3. When you select your real estate professional, wouldn't you prefer one that fully communicated with you, before, during, and at all relevant stages of the transaction and process? 

Without a clear focus on communicating fully and effectively, how can there be any quality customer service? Let's strive to put customer's first, in  fact, rather than merely rhetorically!  

All Consultants Are NOT Created Equal!

Every year, thousands of corporations and organizations enlist the services of either an individual consultant, team of consultants, or a consulting firm, to address items that their leadership envisions need addressing professionally, by an impartial eye. Unfortunately, however, nearly anyone can represent himself as some sort of consultant, either in a specific area, or in a variety of areas, and while some of these individuals are excellent, and provide a fabulous, valuable service, others use consulting as a rouse to sell some sort of product or service. Major areas that consultants are called in regarding include, but are not limited to: business, financial, fiscal, and budgetary items; strategic planning; event planning, negotiations, coordination and organization; Board training and evaluation; business planning; etc. However, often, we do not think of certain types of individuals as consultants, although, in fact, quality ones are, because they make suggestions, etc., in order to best serve the interests of their clients. Isn't that what the real estate professional, or financial adviser, you would like to work with, should be doing, etc?
 
1. Your preliminary discussion with any honorable consultant should be a getting- to- know- you type of meeting, and should be free of charge to the organization. Observe whether the consultant listens and asks pensive and examining questions, more than he speaks and tries to sell himself. Do not be overly impressed by fancy brochures and literature, or even elaborate presentations. You should be looking for a consultant that does not try to use a one- size- fits- all approach, but customizes his service directly to your needs and your organization's idiosyncrasies. Don't be overly impressed by fancy rhetoric or techno- jargon, because it often has little true value.

2. When a consultant is used for event services, he should guarantee his services will do several things for your event. Firstly, he should take away the hassles and headaches. Secondly, he should be able to negotiate in all related areas and foresee your needs. He should be someone who does his homework before he begins to negotiate, in order to find out what is needed and what the priorities and objectives of the event are. He should gather historical information, in order to gather am historical perspective and better understand the group's heritage and needs. He should never impose his will, but also stand up for what he believes should be done, and be able and willing to explain why. His negotiations should save considerably more money than the total of his fee and reimbursable expenses. He should fully explain his fee up front, and explain what he will do, how he will work intimately with the group's organizing committee, and make relevant suggestions.

3. Beware of any consultant who makes too big a deal about making governance changes, in order to address systemic problems and challenges facing the organization. While in a mostly healthy organization, certain governance models might work better for a specific group, governance should only become a priority during a healthy or relatively healthy stage, and not when there are other challenges. These governance recommendations are usually followed, in gradations and steps to follow, by meetings that you are charged for consultant's time, training sessions (also at a charge), and often with a beautifully prepared governance manual, that often is less valuable to the stability and well being of the organization than the paper it is printed on, etc.

4. Real estate professionals should offer quality suggestions and/ or approaches, to best serve their home owner or buying client! This includes areas such as: pricing; staging; marketing; strategy; etc.
 
Always ask a prospective consultant about his fees, thoughts, methods, approaches, and what he feels he might be able to do for you, before you agree to his contract. Many organizations have cost themselves dearly by not carefully considering all of the ramifications. While many consultants are great and provide a wonderful service, like in everything else, there are always some "bad apples."

The Basics of Effective Telemarketing

Why are some telemarketers so much more effective than others? What do they do differently, and how do they do it? Some people who telemarket are extensively trained, while others receive very little training. Even those who are trained may or may not be effective, depending on how well trained they are, and whether they follow some basic telemarketing techniques. Certain individuals also possess a more "telemarketing friendly" personality. Factors such as friendliness, tone of voice, clarity, listening skills, patience, and the ability to persevere are essential skills for the effective telemarketer. Effectiveness requires the "never give up" mindset, and an understanding that every "no" brings you closer to a "yes." Telemarketing is truly a numbers game, and each caller develops a closing ratio, which is how many calls he needs to make to close a sale. Many of us have a certain degree of fear towards, and this creates a persistent tendency to resist getting involved in telemarketing. Nearly every individual would probably benefit, if he were more comfortable with this process and activity.
 
Have you ever gotten a telemarketing call when you thought that telemarketer was good, professional and skilled, while the usual telemarketer shows little or none of that skill and ability? Having developed telemarketing programs for several companies and several products and/ or services, I have developed a keen sense of what is and what is not effective. The following are some of the basics of telemarketing that should be followed if one wants to optimize results:

(1) Extensively train telemarketers. Provide the telemarketer with all tools necessary to do his job! Telemarketers need to be constantly encouraged.

(2) Provide telemarketers with well designed, well worded, well thought out scripts. Develop a way, however, that it doesn't sound like a script being read or memorized.

(3) Prepare a telemarketer to answer any and all objections.

(4) Teach/ learn the telemarketer how to effectively use the "Five Steps" approach to answering objections that I have written about in previous articles, published at Ezine Articles (http://ezinearticles.com)


(5) Anticipate the objections and questions most likely to get. Provide scripts for each objection.

(6) Teach/ learn a telemarketer how to use "May I make a suggestion?"

(7) Play act and role play prior to the first call being made. Repeat this role playing on a regular basis. Don't let any calls be made until a telemarketing professional listens to the new telemarketer, and is satisfied.

(8) Provide a mirror to put in front of each phone station, to demonstrate the importance of smiling.
(9) Make sure the telemarketer knows whatever technical knowledge is necessary to be familiar and comfortable explain the product/ service.

(10) Teach/ learn how to close a sale.

(11) Teach/ learn the concept of "ZTL" (zip the lip).

Telemarketing does not have to be difficult or unpleasant if a telemarketer is properly prepared and trained. A skilled telemarketer often finds telemarketing fun and exciting. Since telemarketers are generally paid based on their results, it is in their best interest to be the best they can be. For a company using telemarketing, there is little point if the telemarketers do not optimize results.

Therefore, it is a "win-win" situation for telemarketers to be as skilled and professional as possible. Following these simple guidelines is an effective and productive first step.

Can I Sell My Home?

As a New York State licensed real estate salesperson, a Certified Buyer Representative, a MorgagePro, a Real Estate Cyberspace Specialist, and an Ecobroker, I am asked all the time, "Can I sell my house?" The first thing I ask is precisely what are they asking. Is it whether their house will sell, or can it be sold at a specific price?  Generally, I answer that any house can be sold, if it is priced correctly, and one will generally receive his best offer in the first few weeks after a house is listed on the market.

In all economies, houses sell. Obviously, there is quite a bit of price fluctuation, and there are areas where the real estate market is stronger, and others where the housing market is weaker. The key, however, to marketing and eventually selling one's home, is properly pricing it from the very beginning. Too many homeowners list their homes with whichever real estate agent suggests listing the home at the highest price, yet that is probably the worst strategy in most cases. If a homeowner truly wants to sell his home, the price asked for the home should be based on a tightly and properly prepared, in-depth, professionally formulated Comparative Market Analysis, known commonly as a C.M.A.

A Comparative Market Analysis evaluates homes in very comparable areas, nearby, in the same condition, with similar attributes. It should look at homes on the market presently, houses that have sold recently (in a weaker market, only prices of houses sold in the last approximately six months should be considered), and houses that the listing expired, which means did not sell during the listing period. Homeowners should understand that today most buyers begin their search on the internet, and the majority of them do a search by area and price range. Therefore, pricing a house at $799,999 will often appear in many more searches than, for example, pricing it at $800,000. In the current real estate market, in many areas, homes are selling for quite a bit more than they did six months or a year ago, so it becomes even more important, to thoroughly discuss this issue, and be on the same page, regarding pricing, marketing, etc., from the onset.
 
When pricing one's home, and doing accurate comparables, the clever agent will recommend pricing at or below the median price in the group of homes on the market in similar condition, etc. The key to selling one's home is most often statistical, which means the more "looks" at the house, the better the chance of it selling. In general, if a house is getting few looks, the listing price is too high for current market conditions. If the house is getting looks but no quality offers, either there is some "sticking point" that is causing resistance, or the house "does not show well."

About two year ago, in a far weaker market than exists today, I had a quality, pre - approved client that I was helping as a buyers' agent. This couple had specific needs, and had more than twenty percent to put down, excellent credit rating, and was motivated. The house they were interested was a lovely house, but had certain limitations. The sellers listing price was $879,000 although nothing on the block ever sold for more than $828,000, and the one house that sold for that price, was a new "build," and was sold in a stronger housing market. Realistically, this house should have been sold for somewhere in the low $800,000 range. After several offers, my client offered his final offer of $820,000, and the buyer would not come anywhere close to that price. That house remained on the market, unsold, for a considerable period of time, until finally, the price was reduced. How much did the seller lose, in terms of time, opportunity costs, maintenance and upkeep, and hassle, because of that delay? Whether it was an unrealistic homeowner or a weak or poorly informed real estate agent, the seller certainly did himself no favor, and greed should never guide this process!

Houses sell in all markets. Yes, it is more difficult to qualify and get a mortgage, at times, and banks are, often, more conservatively appraising houses values in terms of how much mortgage to offer. Yet, if one has a decent financial record, has twenty percent to put down, and is realistic, houses are selling, and are a good deal, in what is considered a buyer's market. Today, in a buyer's market, it's still about getting a meeting of the mind, and following a plan to get the best price, in the shortest period of time, with the least amount of hassle! With mortgage rates near historic lows, the lower interest rates can dramatically reduce a new homeowners monthly housing costs.

However, real estate professionals must understand that they don't make money unless homes sell, and both buyers and sellers become truly motivated and realistic, the housing market will not be as robust as a few years ago. However, for those willing to accept "today's rules," they can do extremely well. And, that is what happens, whether it is a buyers, sellers, or neutral market!

5 Common Mistakes Made By Home Sellers (Homeowners)

One of the most difficult things for many people is coming to terms with selling their home. Many have gotten emotionally attached over the years, and rather than looking at the home from a standpoint of how a potential buyer might view their home, they look at many aspects unrealistically. This often causes them to begin the entire process from a perspective that hurts themselves, and between this emotional attachment, greed and unrealistic desires, many homeowners put their homes on the market for more than they should, and thus inhibit the number of individuals who might offer to actually buy the house. That being said, the next five items often adversely impact the ability to optimally sell ones home, and are usually things that can, and should be easily addressed. As a Licensed Salesperson in New York State, I always advise my clients to pay attention to these easily addressed areas.

1. Avoid large displays of personal items and possessions. These include, but are not limited to: overwhelming amounts of family pictures, trophies, etc; excessive religious decor; lots of lawn decorations/ ornaments; or children's toys strewn about. Homeowners should either store these out of sight, or even temporarily take out a storage unit. They should also place excessive furniture and furnishings in this unit, so the house does not look cluttered, and excessive furniture also often makes rooms look far smaller than they actually are.

2. If your house is an unusual color or shade, many potential home buyers might be turned off. It is far better to have a neutral, but attractive color to put your house in the best perspective.

3. Clear out your garage, at least sufficiently to put your car in their during home showings, as well as when pictures are taken. Remember that a seller wants to make the buyer feel as comfortable as possible, and first impressions are most important. At the same time, unclutter the driveway and front lawn area, for precisely the same reason.

4. The first impression a potential buyer gets when he sees the house is most important. Address any potential distractions, or eyesores. These include peeling paint, broken shutters, dirty appearance, awnings or shingles that need repair,broken sidewalks or driveways, unpainted railings, rusty areas, etc. Take a look from the front of your house from every angle, and address any areas that may be turn- offs. In some instances, a homeowner would be well - served by utilizing the services of a respected, capable, and reputable home stager!

5. Don't neglect lawns, gardens, etc. Make sure the lawn is trimmed, mowed and seeded for maximum positive impact. If the weather permits, make sure there are some colorful and attractive plants, and make sure all areas are weeded, clean, and welcoming.

These are all relatively easy areas to address. Homeowners often cost themselves time, opportunities, and substantial dollars because they overlook these items. I recommend that a home seller discuss these types of things with his real estate professional, and heed the advice given.

Why A Buyer Should Use The Services of a Realtor?

While anyone interested in purchasing a home has the alternative of either doing it alone, or using the services of a licensed real estate agent, I heartily recommend use of an agent. Of course, some might say that my point of view is someone biased because I am a licensed real estate salesperson in New York State, I truly believe that a buyer's interests are better served using an agent.

However, each individual should find and locate an agent that he feels comfortable with, and listens to your wants and needs, and places your interests first. In New York, an individual has the option of using an agent either as a Buyers Agent or a Sellers Agent. The difference is that while both have legal and fiduciary responsibilities, and are legally bound to the truth, a sellers agent's allegiance is to the seller (or homeowner) while a buyer's agent represents the buyer's interests. For that reason and others, a buyer is a Buyer's Agent's client, while being a Seller's Agent's customer. In New York State, each buyer is to receive a Disclosure Form upon the first serious real estate discussion, and this form explains the different forms of agency. I believe that it is in the best interests of most buyers to be represented by a Buyer's Agent.

In today's internet savvy society, buyers are able to "look" online at publicly listed houses, and thus they can actually see much of the same information that the professional can. However, in most cases, the degree of detail is different, and professional, serious and qualify agents preview a large number of houses as they are listed on the market, and thus have a more three dimensional and realistic understanding of the house listed. Many houses appear better online than they do in person, and for some, one does not get the full perspective of a house from its listing. In addition, real estate professionals can answer questions for you about the area, including about transportation, school districts, shopping, etc. In addition, just as homeowners often depend upon a real estate professional to guide them towards offering or listing their house at a particular price, a buyer should lean on his real estate professional, to help guide him, regarding pricing, negotiating, value, etc.

A qualified real estate professional often makes a major difference for a buyer, especially when "hired" as a Buyer's Agent, in understanding and performing the necessary negotiating skills, understanding real estate "mentality," and once a "deal" is done, can usually offer excellent recommendations regarding real estate lawyers and home inspectors, etc. The professional can also often cut through some of the frustrating "red tape" that often "pops up" during the transaction.
Buyers should understand that the price of the house already includes the commission to any and all agents involved, and that it is paid out of the proceeds of the sale. That means that the Seller receives a net amount after the commission is deducted from the sale price.

A qualified professional can offer a buyer peace of mind, "hand holding," professionalism, and expertise. I highly recommend that buyers take advantage of those qualifications, with the warning that a buyer should feel personally comfortable with whichever agent he selects.

It's Your Choice - Settling For Good Enough, or Seeking Excellence, and Being GREAT?

It often appears that the vast majority of individuals set their goals and aspirations lower than their aptitude, probably for several reasons. Rather than pursuing greatness or doing things better and more impactfully than others, many merely pursue getting by and doing the least amount possible, settling for doing things in a marginal, mediocre manner. They try to make few waves and take few risks, and therefore choose to avoid even attempting to be better than the masses. It is always one's individual decision (generally dictated by a combination of one's attitude and comfort zone) to either select to merely get by (good enough), or opt to be one of the few who really want to be GREAT.

This also relates to the individuals you select to work for you, advise you, or represent you in a variety of scenarios. For example, although you may opt for numerous Real Estate professionals, who will get the job done for you, your results, in terms of ease of the process, negotiating/ price, marketing, etc., often differs, depending upon whether that individual is satisfied with merely providing good - enough, or rather desiring truly great results. This relates to many service - related industries, not only real estate, but also including financial services, customer service, counseling, etc.
 
1. Superior performances are nearly always goal - based. When one begins this way, he generates meaningful momentum, that generally will propel him forward to become better and more effective. When one knows what he wishes to accomplish or achieve, he understands what he feels is most important or significant, and thus he pursues and creates priorties, that he follows and direct his actions.

2. There is generally a choice to be made between avoidance and actual responsibility. While one needs a positive can - do attitude, he must avoid the risks of rose - colored glasses, and proceed in a rational, reasonable, realistic and relevant manner.

3. Regardless of the choices you make, or the path you pursue, you will always do better and perform more meaningfully, when you truly enjoy what you are doing on a consistent basis. We each will generally enhance our effectiveness when we focus on quality and stress being empathetic (seeing things from the perspective, and through the eyes of others).

4. A simple definition of greatness is probably a combination of a positive attitude plus superior aptitude plus attention to details and priorities, considering contingencies and ramifications. When these components remain in sync, we enhance our efforts and performance.

5. Stop merely talking about what needs to be done (or what is wrong and who is to blame)! Rather, take the steps towards timely action. Consistently aim for terrific by trying to do more than others do. Only you can understand your personal priorities, but whatever they are, always and continuously treat what you're doing as your top priority.

Avoid blaming others or outside forces for your personal issues or confrontions and challenges. If you opt for greatness rather than settling for less, then focus on doing and achieving your best, every day in every way!

Selling Is Both An Art & A Science!

When I first started in the investment and financial services field, more than three decades ago, the most productive representative in the company had a poster displayed prominently on the wall to his office that read, "Selling is like shaving. If you don't do it everyday, you're a bum!" The essence of that poster has remained "engraved" in my mind ever since, and that is, that yesterday's conquests are simply old news, and one must successfully do the same thing repeatedly in order to truly be a professional and an expert. When someone selects (hires) the best representative, who will serve their needs and priorities, in either selecting one's real estate professional, or investment/ financial adviser, evaluate the past, but ask the individual how he will synergistically use selling as both an art and a science, and why it is in your best interest!

As I have trained many others in a variety of fields, including selling and marketing, training, management, leadership, negotiations, and many other areas since then, I have always incorporated the themes of everything in life being some sort of sales, and that effective selling is both an art and a science.

Why do I call selling both an art and a science? A science is something rather precise, and proper sales technique is extremely regimented. The best salespeople use the same proven technique each and every time they give a presentation. Of course, after a while, it seems like it is second nature to them, but it is still a very exact, precise, thought-out and proven methodology.

On the other hand, two individuals can follow the same basic "scientific" technique, and achieve vastly different results. That is why I am stating that selling is also an art. The most effective salespeople relate well to others, and understand human nature. Many of the top salesmen of all time have stated that selling is only a small percentage technical, while being predominantly understanding human nature.

The most effective salespeople are friendly, without being phony, and professional without being starchy and stuffy. Effective selling requires a sales person to do his homework to understand the needs of the individual he is selling to, and tailoring his presentation to address the other party's "hot button." The "hot button" is that set of circumstances, wording, and motivation that gets the other individual's attention, and motivates them to action.

Few people are actually born salespeople. While some people are more extroverted than others, and some feel more comfortable in a sales situation, these behaviors can be trained and made part of anyone desiring to become a more effective salesperson.

Motivated individuals learn the techniques, practice them, and make them part of their own persona. I have trained individuals who began as the shyest, least articulate and outgoing individuals, and developed them into professional, talented and successful sales professionals.

Once someone learns all the techniques, and then combines those "sciences" with the "art" of understanding human nature, he can and will be an elite sales professional. That is, as long as he does it every day! Remember - effective selling = optimizing the combination of arts and sciences! And, doing so, as the best original you, and not merely copying others in a carbon copy approach!

Ask Yourself, & Those You Do Business With, How Is Your Judgment?

How do you define judgment, and what factors do you consider most indicative and telling? What have you done to develop your wisdom, ability to analyze and interpret, judge situations, individuals, procedures, techniques and ideas? Do you enjoy being the decision maker, or would you prefer to defer that to others, and simply be a follower? Do you prefer to be a leader, trusting that you are more capable of making the best decisions, or do you doubt your own abilities and judgment? Do you judge situations and understand the possible ramifications and alternatives? Do you prefer to be proactive, or are you merely reactive? Do you plan sufficiently so that you can make decisions based on facts and reasoning, or do you wait, often procrastinating, and putting off making a judgment until you have to? When you do business with others, such as a Real Estate Professional, or Financial Services Representative, do you fully consider that individual's judgment, etc. Understand that judgment is not merely about intellect or rhetoric, but rather how you undergo the process, in order to achieve the best results!
 
1. Judgment can either be good, bad, or somewhere in between. However, when someone simply waits and procrastinates, that is almost always an indication of far less than stellar judgment. Procrastination is generally an indication of either insecurity or fear. It takes courage, self confidence, and personal motivation to make a decision, but it also requires a commitment to training, learning, self improvement, and the desire to be the best that you can be, to actually show judgment.

2. Judgment does not mean that you must be the most intellectually gifted, although no doubt a certain level of intellect generally enhances one's judgment. However, often those with the highest IQ, and the most schooling and education, do not exhibit the greatest judgment. Great judgment also requires certain tangible, as well as certain intangible qualities. The tangible assets include learning, experience, focus, desire and motivation, as well as commitment. The intangible characteristics come from one's viable vision, and how that translates to actual goals, as well as the motivation to persist and persevere, and the courage to make well thought out decisions, when others often defer. Judgment is a combination of numerous characteristics, disciplines, beliefs, ideals, etc. However, for a judgment to be pure and positive, it also requires absolute integrity.

There has never been a truly productive individual who did not develop a methodology to enhance his abilities and judgment. It all begins with both knowing, as well as liking ones self. Judgment comes from someone being comfortable with his abilities, confident in his beliefs, and willing to openly examine any and all alternatives that might make him better.

Everything Is NOT A Fact!

One of the greatest obstacles to achieving whatever we consider to be personal and meaningful success is often our inability, refusal or failure to properly differentiate between empty rhetoric (or exaggeration or manipulation) and actual FACT. While being successful must and should be personal in nature, so as to actually motivate others to drive ourselves further, we must develop the willingness and ability to differentiate the facts from not only fiction, but also merely what others might state to be so! When we drive ourselves to focus in this manner, and develop the skills, abilities and willingness to enhance our potential to understand this concept, we can be better assured that what we are doing directly relates to reality and needs.

1. Begin with an emphasis on consistently being fair! This is a combination of factors, including our inherent fairness to others and their points of view (even when they may disagree with our own), treating others the way we would want them to treat other (also known as The Golden Rule), and being open - minded enough to listen to and explore alternatives. When we proceed in this manner, we are more capable of being focused on what needs to be done (and why). After all, isn't the common thread to everyone's concept of success, to become more functional and worthwhile?

2. How can you know if something is factual if you do not take the time, expend the energy and seek to better understand what it means? This requires a consistent commitment to thorough analyses, combined with a comprehensive assessment of needs and possibilities. We should strive to maintain our positive attitude in a manner where we explore the alternatives in a realistic, but open manner!

3. Our approach must be to convert the rhetoric and statements of others in such a manner that the crux of the issue becomes clear - cut and better understood. We need to thorough evaluate and consider things fairly and thoroughly, but must do so that our focus is on the entire concept, and all the potential ramifications.

4. Perhaps the simplest and most direct approach might be to simply ask ourselves, "Is it true?" Being true does not mean simply being in alignement with our personal priorities, self interests and our own truths, but rather evaluating things objectively in terms of reliability, consistency and whether it aligns with those things that are self - evident because they are time - tested.

Truth (or real facts) and what someone says is a fact are often vastly different! We will enhance ourselves when we commit to only truly factual items, rather than permitting ourselves to be less than objective by blindly accepting what others merely claim!