Saturday, December 5, 2015

There's No "Cash In A Flash" - Don't Be Desperate!



In the search for capital and financing, desperation and a lack of a realistic time frame, some sustenance funds and a healthy perspective are absolutely poisonous!

Perhaps the worst mistake that entrepreneurs, project leaders, innovators and executives make is when they approach financial sources or established management consultancies with desperate demands for "cash immediately," accompanied by such desperate pleadings as "we need this money yesterday!" or "we'll lose this opportunity if we don't receive funds within x period of time!"

Sources of capital as well as management consultancies (at least the responsible ones) are not in business to bail out companies and clients. They are in business to help solve business problems within an appropriate time frame, and to help clients achieve realistic and reasonable objectives. The more desperate that you appear, the less likely it is that you will attract either quality consulting or an infusion of capital.

Don't forget that providers of capital and consultancies are in business to make profits and to generate fee income. They do not generally want to salvage other people's wrecks, if the situation requires lightning speed, desperate need, cash-in-a-flash, and there is insufficient capital available to conduct a due diligence review and to properly process a request for a capitalist intervention.

If a capital source or a consultancy is overly responsive to your desperate entreaties for money in a hurry, they are likely not seriously interested; setting you up for a "fee gouge"; or just simply incompetent. Any firm which does not require some serious due diligence before it will entertain your request is engaging in a questionable practice.

If you are searching for capital, be prepared to endure for a reasonable due diligence period, be prepared to pay some fees for professional engagement and/or due diligence, and never speak of desperation or pressure. Imposing your desperation or pressure on a capital source or a consultancy will generally cause them to turn you away.

Ironically, and lamentably, getting capitalized (especially when being represented by a qualified management consultancy as your advocate and negotiator) requires that you have some of your own capital to sustain your business and to pay fees, and that you have adequate time to allow for the capitalization process.


Thank you, as always, for reading me.


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Friday, December 4, 2015

EXIM Bank Is Back In Business


EXIM Bank Is Back In Business.



The following is excerpted from a press release issued by the Export-Import Bank Of The United States (“EXIM”). This is indeed excellent news for private-sector businesses which currently export or which are desirous of exporting through programs such as Global Edge International Consulting Associates, Inc.'s Virtual Export Division Program. The reauthorization of EXIM is indeed a victory for small businesses and for the U.S. economy-at-large:


Media Contact: Lawton King (202-565-3200)
For Immediate Release: Friday, December 4, 2015
EXIM Bank Reauthorization Letter to Customers and Stakeholders
Washington, D.C. – Below is the letter Fred Hochberg, the chairman and president of the Export-Import Bank of the U.S. (EXIM Bank), sent to EXIM Bank customers and stakeholders today to announce the Bank’s reauthorization.

December 4, 2015

To Customers and Stakeholders of the Export-Import Bank of the United States:
I’m pleased to report that after overwhelmingly bipartisan votes in both the Senate and the House of Representatives, President Obama signed EXIM Bank’s reauthorization into law today.
Beginning today, EXIM will be able to restart the work needed to meet its mission of supporting American jobs and equipping American businesses with the tools necessary to compete for global sales. Importantly, the Bank secured a long-term reauthorization that will be in effect until September 30, 2019.
Exporters and their supply chains are critical to the country’s economic health. Export focused businesses bring a host of benefits to their communities and local economies, including generally paying higher wages to their employees than non-export businesses.
All of us at EXIM are ready to receive applications for new transactions. Given the expected volume, the efforts required to get our processes back up and running, and the need to apply our comprehensive due diligence requirements to every transaction, we are asking customers and other EXIM stakeholders to be patient while we resume authorized activities. We expect online application systems and exim.gov to be fully operational no later than Tuesday, December 8, and customers can always reach us at 1-800-565-EXIM.
In addition, while we are accepting and processing applications for all levels of financing, please keep in mind that all transactions totaling more than $10 million dollars require approval by EXIM’s Board of Directors. Those transactions will need to await Senate confirmation of members sufficient to reconstitute a quorum.
The EXIM team is as dedicated as ever to America’s exporters, empowering them to tackle new markets, and providing a level playing field in a fiercely competitive global economy. We look forward to serving you, taxpayers and the American people for years to come.
Best,
Fred P. Hochberg
Chairman and President of the Export-Import Bank of the United States
ABOUT EXIM BANK:
EXIM Bank is an independent federal agency that supports and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees and export credit insurance, to promote the sale of U.S. goods and services abroad. Almost ninety percent of its transactions directly serve American small businesses.
In fiscal year 2015, EXIM Bank approved $12.5 billion in total authorizations. These authorizations supported an estimated $17.7 billion in U.S. export sales, as well as approximately 109,000 American jobs in communities across the country.
###
To find out more about how your company can tap into the ever-expanding global economy, please visit our website at http://GlobalEdgeInternational.com . Our blog, with its featured articles, can be viewed at http://GlobalEdgeInternational.blogspot.com .


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Monday, November 30, 2015

IMF's Acceptance Of The Chinese Renminbi (Yuan): Implications




IMF's Acceptance Of The Chinese Renminbi (Yuan): Implications

The following material was derived from an article which appeared in The New York Times, today, November 30, 2015, and which was subsequently posted in Yahoo News. The implications, both short-term and in the longer-term are far-reaching and may produce increased pressure against the U.S. Dollar in the global Marketplace. It stands to benefit China in terms of international trade and capital markets, while having a potentially negative effect on the U.S. Currency's valuation and the U.S.' ability to compete in the global marketplace. Links to each of the two articles follow below:



In its simplest form, the renminbi, will now be join the USD and other long-standing preferred reserve currencies as a new preferred reserve currency and as a member of the market basket of currencies that comprise SDRs (Special Drawing Rights), which are the surrogate currency which the central banks of the world use to settle interbank debts through the IMF (International Monetary Fund). Possible implications are listed below for your review and evaluation:

=+ A percentage of the world's banks will now hold renminbi instead of dollars in their reserve portfolio. This will place a downward pressure on the USD just based upon the law of supply and demand;

=+ An increasing number of international transactions will now be denominated in renminbi in lieu of USD;

=+ There will be a strengthening of the renminbi and a weakening of the USD;

=+ China's position as an exporter (driven largely by its pricing advantages) will be somewhat more challenged, while the U.S.' potential as an exporter will be strengthened due to a “cheaper” currency;

=+ There may be an influx of USD back into the U.S. Which may be perceived by the Fed as being inflationary, which will put pressure on the Fed to increase domestic interest rates;

=+ The U.S securities markets will be adversely affected;

=+ The Chinese securities markets will be favorably impacted;

=+ U.S. Banks may risk slight credit downgrades;

=+ Chinese banks will experience increased credit stability.

In sum, the longer-term effect of this move by the IMF will cause some additional economic hardship for the U.S.


Douglas Castle

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Sunday, November 29, 2015

8 Technologies Will Dominate The Near-Term Future


EIGHT TECHNOLOGIES WILL SHAPE THE NEAR-TERM FUTURE



According to an IBM-led study of C-Suite executives, these are the technological foci (focuses) which will shape the near-term (3-5 years) future. While C-Suite executives tend to be fadists more than Global Futurists, the power of the effect of their self-fulfilling prophesy must be given its due. It might be a good exercise to at least understand the aspects and implications of each of these innovative areas before we judge the C-Suite denizens too harshly.

Cloud Computing And Related Services:



Cloud computing, also known as on-demand computing, is a kind of internet-based computing, where shared resources and information are provided to computers and other devices on-demand. It is a model for enabling ubiquitous, on-demand access to a shared pool of configurable computing resources.

Cloud computing and storage solutions provide users and enterprises with various capabilities to store and process their data in third-party data centers. It relies on sharing of resources to achieve coherence and economies of scale, similar to a utility (like the electricity grid) over a network. At the foundation of cloud computing is the broader concept of converged infrastructure and shared services.

Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal management effort.

Cloud computing, or in simpler shorthand just "the cloud", also focuses on maximizing the effectiveness of the shared resources. Cloud resources are usually not only shared by multiple users but are also dynamically reallocated per demand. This can work for allocating resources to users. For example, a cloud computer facility that serves European users during European business hours with a specific application (e.g., email) may reallocate the same resources to serve North American users during North America's business hours with a different application (e.g., a web server). This approach helps maximize the use of computing power while reducing the overall cost of resources by using less power, air conditioning, rack space, etc. to maintain the system. With cloud computing, multiple users can access a single server to retrieve and update their data without purchasing licenses for different applications.



Mobile Solutions:



Definition

Mobile solutions refer to the online services that are made available to users while they are on the go. Mobile solutions technology has not only traversed geographical boundaries but has also accessed various domains. Providers of the technology continue to provide services in many different countries through by making use of the many developments in mobile technology. Today, this technology continues to give services in tune to today’s urban mobility needs.

Components

The first component is wireless data networks. This refers to an electronic communications process that allows the orderly transmitting and receiving of data through the use of a wireless network of computers. The next component is wireless data modems. These are devices that allow computers to connect to a wireless local area network (WLAN) without wires or cabling for transmitting and receiving data.  Devices need this in order to connect to networks. The third component is mobile computers. These are devices that are wireless ready. These can be easily connected to wireless modems and run wireless enabled applications. These include laptops and notebook computers, handheld computers, palm-sized computers and many more. Next is wireless middleware. Middleware is defined as software that connects different parts of an application or a series of applications. The last component is wireless-enabled applications. These refer to programs and other software that can be readily used once connected to a network.

Functionality and General Uses

There are many mobile solutions providers all over the world. Each provider strives to set itself apart from the other providers by boosting its competitive advantage through differentiation, lower costs and the formation of alliances with leading companies.

Mobile solutions providers have an array of services. Some providers focus purely on payment solutions. Some providers offer an electronic wallet feature that allows businesses to make or accept payments, accept international and local credit card payments and industry specific payments using only their mobile phone. There are also providers that offer online hotel reservations with a deposit, ticketing solutions for events and events organizers, mobile banking and other electronic payment services.

Some providers offer mobile solutions for personal use. Some make use of services such as information alerts and notifications, travel updates, news alerts, sports updates and horoscopes. Other mobile solutions providers have brought the chat services to a whole new level through personal chat, dating and personal consultations. Some providers generate great profit by providing entertainment to their clients through quizzes and games, jokes and cartoons, videos with the use of mobile phones with 3G.

Some providers focus on mobile solutions for providing corporate or business use through file storage, file sharing and mobile e-mailing system. Some companies involved in direct selling also make use of short message service or SMS to allow their customers to check availability of stocks, updates on products, check distribution address and other details for their business. The most common use of mobile solutions technology today is for direct marketing. Companies are able to utilize mobile solutions for their promos and contests and brand advertisements. They are able to advertise their products and services through SMS. Because of the popularity of SMS all over the globe, most companies make use of this as their medium in their promotions.



The Internet Of Things (IoT):



The Internet of Things (IoT) is an environment in which objects, animals or people are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. IoT has evolved from the convergence of wireless technologies, micro-electromechanical systems (MEMS) and the Internet. The concept may also be referred to as the Internet of Everything.

The Internet of Things (IoT) is the network of physical objects or "things" embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data. The Internet of Things allows objects to be sensed and controlled remotely across existing network infrastructure, creating opportunities for more direct integration between the physical world and computer-based systems, and resulting in improved efficiency, accuracy and economic benefit. Each thing is uniquely identifiable through its embedded computing system but is able to interoperate within the existing Internet infrastructure. Experts estimate that the IoT will consist of almost 50 billion objects by 2020.

British entrepreneur Kevin Ashton first coined the term in 1999 while working at the Auto-ID Labs (originally called Auto-ID centers - referring to a global network of RFID connected objects). Typically, IoT is expected to offer advanced connectivity of devices, systems, and services that goes beyond machine-to-machine communications (M2M) and covers a variety of protocols, domains, and applications. The interconnection of these embedded devices (including smart objects), is expected to usher in automation in nearly all fields, while also enabling advanced applications like a Smart Grid, and expanding to the areas such as smart cities.

"Things," in the IoT sense, can refer to a wide variety of devices such as heart monitoring implants, biochip transponders on farm animals, electric clams in coastal waters, automobiles with built-in sensors, or field operation devices that assist firefighters in search and rescue operations. These devices collect useful data with the help of various existing technologies and then autonomously flow the data between other devices. Current market examples include smart thermostat systems and washer/dryers that use Wi-Fi for remote monitoring.

Besides the plethora of new application areas for Internet connected automation to expand into, IoT is also expected to generate large amounts of data from diverse locations that is aggregated very quickly, thereby increasing the need to better index, store and process such data.



Cognitive Computing:



Cognitive computing is the simulation of human thought processes in a computerized model.
Cognitive computing involves self-learning systems that use data mining, pattern recognition and natural language processing to mimic the way the human brain works. The goal of cognitive computing is to create automated IT systems that are capable of solving problems without requiring human assistance.

Cognitive computing systems use machine learning algorithms. Such systems continually acquire knowledge from the data fed into them by mining data for information. The systems refine the way they look for patterns and as well as the way they process data so they become capable of anticipating new problems and modeling possible solutions.

Cognitive computing is used in numerous artificial intelligence (AI) applications, including expert systems, natural language programming, neural networks, robotics and virtual reality. The term cognitive computing is closely associated with IBM’s cognitive computer system, Watson.

Cognitive computing (CC) makes a new class of problems computable. It addresses complex situations that are characterized by ambiguity and uncertainty; in other words it handles human kinds of problems. In these dynamic, information-rich, and shifting situations, data tends to change frequently, and it is often conflicting. The goals of users evolve as they learn more and redefine their objectives. To respond to the fluid nature of users’ understanding of their problems, the cognitive computing system offers a synthesis not just of information sources but of influences, contexts, and insights. To do this, systems often need to weigh conflicting evidence and suggest an answer that is “best” rather than “right”.

Cognitive computing systems make context computable. They identify and extract context features such as hour, location, task, history or profile to present an information set that is appropriate for an individual or for a dependent application engaged in a specific process at a specific time and place. They provide machine-aided serendipity by wading through massive collections of diverse information to find patterns and then apply those patterns to respond to the needs of the moment.

Cognitive computing systems redefine the nature of the relationship between people and their increasingly pervasive digital environment. They may play the role of assistant or coach for the user, and they may act virtually autonomously in many problem-solving situations. The boundaries of the processes and domains these systems will affect are still elastic and emergent. Their output may be prescriptive, suggestive, instructive, or simply entertaining.



Advanced Manufacturing Technologies:



Advanced manufacturing technology is defined as computer-controlled or micro-electronics-based equipment used in the design, manufacture or handling of a product.
Typical applications include computer-aided design (CAD), computer- aided engineering (CAE), flexible machining centres, robots, automated guided vehicles, and automated storage and retrieval systems. These may be linked by communications systems (factory local area networks) into integrated flexible manufacturing systems (FMS) and ultimately into an overall automated factory or computer-integrated manufacturing system (CIM).



New Energy Sources And Systems:



There are the variations on the fossil fuel formulations and then there are the “alternative” energy sources which either minimize or negate any carbon footprint and are ecologically more desirable.

The variations on the fossil fuel formulations include more extensive offshore drilling and fracking, which is the process of drilling down into the earth before a high-pressure water mixture is directed at the rock to release the gas inside. Water, sand and chemicals are injected into the rock at high pressure which allows the gas to flow out to the head of the well. Both drilling and fracking have their share of pro-environmental opponents, perhaps with valid reason.

Everyday, the world produces carbon dioxide that is released to the earth’s atmosphere and which will still be there in one hundred years time.

This increased content of Carbon Dioxide increases the warmth of our planet and is believed by many to be the main cause of the so-called “Global Warming Effect”. One answer to global warming is to replace and retrofit current technologies with alternatives that have comparable or better performance, but do not emit carbon dioxide. This is generally referred to as alternate energy.

By 2050, one-third of the world's energy will need to come from solar, wind, and other renewable resources. Who says this? British Petroleum and Royal Dutch Shell, two of the world's largest oil companies, do. Climate change, population growth, and fossil fuel depletion mean that renewables will need to play a bigger role in the future than they do today.

Alternative energy refers to energy sources that have no undesired consequences such for example fossil fuels or nuclear energy. Alternative energy sources are renewable and are thought to be "free" energy sources. They all have lower carbon emissions, compared to conventional energy sources. These include Biomass Energy, Wind Energy, Solar Energy, Geothermal Energy, Hydroelectric Energy sources. Combined with the use of recycling, the use of clean alternative energies such as the home use of solar power systems will help ensure Humankind's survival into the 21st century and beyond.



Bioengineering:



Bioengineering is the application of the life sciences, physical sciences, mathematics and engineering principles to define and solve problems in biology, medicine, health care and other fields.
Bioengineering is a relatively new discipline that combines many aspects of traditional engineering fields such as chemical, electrical and mechanical engineering. Examples of bioengineering include:
  • artificial hips, knees and other joints
  • ultrasound, MRI and other medical imaging techniques
  • using engineered organisms for chemical and pharmaceutical manufacturing
This vast field of integrating or developing mechanical, electrical or design skills to either perform work on, or to become integrated with physiology, also subsumes aspects of stem cell research, the Human Genome Project, cloning and biometrics. These are all terms worth being familiar with, as they will become more and more prominent in the practice of medicine and life sciences in general, and due to the high likelihood of an increasing number of very large companies (conglomerates) who will be investing increasing sums into the research and development of biomedical engineering.



Man-Machine Hybrids [Does Anyone Remember “Robocop”?]:



Yes, indeed... remotely man-operated drones may be considered a crude example of man-machine hybrids (more likely they are man-machine partnerships), but Futurist and scientist Ray Kurzweil has a fascinating view of what true-man-machine hybrids are and will be, and what their potential might be.

Human brains will be boosted with artificial intelligence at some point after the year 2030, one of the foremost thinkers on Artificial Intelligence has said.
The brain will connect to online Artificial Intelligence to become a “hybrid of biological and non-biological thinking”, Ray Kurzweil, director of engineering at Google, suggested.

Tiny “nanobots” made from DNA strands would connect our brains to the internet, allowing us to augment our own intelligence with artificial intelligence, he said.

Professor Stephen Hawking, noted physicist, mathematician, cosmologist and Futurist has expressed fear that Artificial Intelligence might eventually be the undoing of our species and lead to our ultimate demise as a species.

This subject has considerable overlap with biomechanical and biomedical engineering, except that in these last two fields of endeavor, the physical body is integrated with robotic or artificial parts or enhancements, without a change in the basic operation of the Human mind. In Kurzweil's view of the future, the mind will be an amalgam of native Human (organic) thought and neurological capabilities with computer intelligence, storage, pattern recognition and enhanced learning and retention capabilities.



The take-away from all of the foregoing information is not necessarily that each of the areas identified will be one of the “Next Big Things” within the coming three to five-year period; but it is a safe bet to assume (and we all know what happens when we count too much on assumptions) that each of the identified areas will be where C-Suite executives, in their capacities as decision makers, will be investing money and time. Carrying this a step further, The Global Futurist and Global Edge International Consulting Associates, Inc. would see that these anticipated expenditures of money, time and focus are actually leading indicators of the growth and dominance in business and society of these technologies. Being a bit conservative, one might think that these technologies will come to market dominance during the next five to seven-year period, allowing for this “lead indicator effect”.


As always, thank you for reading me.



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NOTE: THE INFORMATION CONTAINED IN THIS ARTICLE SHOULD NOT BE CONSTRUED BY THE READER AS BEING LEGAL, FINANCIAL, TAX, ACCOUNTING, ECONOMIC OR INVESTMENT ADVICE. NO OFFERING OF SECURITIES OR OTHER INVESTMENT INTERESTS OF ANY TYPE IN ANY ENTITY IS MADE HEREBY, NOR IS A SOLICITATION FOR THE PURCHASE OF SECURITIES OR OTHER INVESTMENT INTERESTS OF ANY TYPE IN ANY ENTITY MADE HEREBY. THIS ARTICLE IS INTENDED FOR GENERAL INFORMATIONAL PURPOSES ONLY AND REPRESENTS THE VIEW OF THE AUTHOR ONLY.

THIS ARTICLE IS COPYRIGHT 2015 BY DOUGLAS E. CASTLE, WITH ALL RIGHTS RESERVED. ANY REPRODUCTION, TRANSMITTAL OR DISTRIBUTION OF THIS ARTICLE, EITHER IN WHOLE OR PART, IS UNAUTHORIZED AND MAY BE UNLAWFUL, UNLESS FULL ATTRIBUTION IS GIVEN TO THE AUTHOR AND ALL LINKS IN THE ARTICLE REMAIN INCLUDED AND “LIVE.” 


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Wednesday, November 11, 2015

Sorry Has Become a Four-Letter Word


SORRY” Has Become A Four-Letter Word



An profound and prolific apology after a colossal foul-up or political disaster has become an actual perfunctory insult to the offended or wronged parties. It sounds insincere, feels weak and needy, invites other questions (and other concessions) and makes you look foolish. In brief, it can kill or negotiations and actually sabotage your customer relationships. No one says this better than author and success coach, Oren Klaff of “Pitch Anything”. The idea is to just work right past the error or gaffe and move forward, selling more strongly than ever. The text that follows comes from a recent email sent to me by Oren [I've left all of the grammatical and syntax errors intact, for which I make no apologies]:

“Funny things pop out of my mouth from time to time. No preparation. No planning. It just happens.
For example, a few weeks ago during a presentation to a group of financial analysts I said, “Guys, I can’t sugar coat this for you ... I’m not #@%! WILLY WONKA.”
Although, I thought that was HILARIOUS at the time ... no one laughed. There was just some uncomfortable coughing and a few chairs shuffled.
My first reaction was to apologize, so my mind starting forming the words, “ ... uhh, sorry about that ..."
But my training kicked in, and I told myself: Keep moving forward, don’t explain yourself, do not act ‘needy’ or seek validation.
Ok, sure, I know that apologizing is necessary when we’ve clearly hurt someone else, violated a rule, or done something we know to be wrong. And saying sorry is a necessary step in some situations to repair the social fabric that keeps us connected to other people.
But in business, a gushing apology can be exactly the wrong move.
For example, WE ALL want to keep our clients happy, so it can be tempting to say “sorry” for things that get off track —
- but It’s important to recognize that apologizing unnecessarily can actually undercut your professionalism by displaying neediness and diminishing others’ confidence in you.
It reminds me of the other day when a CEO called and asked if he could see me. He had a serious problem, so we booked a meeting.
That’s how every week starts for me. Like an episode of SUITS, at 9am Monday, some kind of trouble walks through the door and I have 24 hours to save the client’s company or The Senior Partners Will Be Very Mad.
This client shuffled his way into my waiting room, downcast and dejected.
His shoulders slumped. He was in big trouble. When a guy looks like that, it’s either a woman problem or a money problem and given my track record, people usually don’t want my advice on women.
He told me what had happened at his company. His servers had crashed during a live event. Customers lost money.
“I have to go on the road and give my largest customers a personal apology,” he said, “or I’m going to lose a lot of business.”
“Tell me what you plan to say,” I said. ”Let me hear your pitch.”
And then came the El Niño of Bad Ideas:
He was going to apologize for a flaw that made the servers crash;
He was going to give discounts; and refunds.
And he planned to use the history of his relationship with the client, like Sal Tessio in The Godfather.
Sal Tessio: Can you get me off the hook, Tom? For old times' sake?
Tom Hagen: [shakes his head] Can't do it, Sally.
[Tom watches sadly as Sal is led to a waiting car]
Obviously, Sal was killed in that scene; as my client would get killed if he pleaded for forgiveness.
So, when he was done pouring his heart out, I poured him a cup of something strong and let him sip it slowly, preparing him for what I would say next:
There will be No Discounts. No Refunds. No Sob Story. “In fact,” I said, “you’re going to visit the customers, give them ONE quick and sincere ‘sorry’ and then upsell them to a higher level of service.”
His eyes opened wide.
I told him, when you highlight and dwell your own mistakes you trigger the Recency Effect — the tendency to blow things that have just happened out of proportion.
In the business world, apologies, explanations, not to mention sappy pleas for mercy do nothing but stir up emotions and anger. My client needed to focus on the future.
First, I told this this CEO to read my book, PITCH ANYTHING. On page 157 I show that offering discounts and acting needy will actually harm a business relationship more than it helps.
Look, even your toughest clients will agree, the past is a done deal. It’s gone. Dust. They will accept that now is the time to turn over the Etch-a-Sketch and give it shake, wipe the slate clean.
Why You Should Only Give a Single Brief Word of Sorry After a High-Profile Mistake
No matter how sincere, your mea culpas can come off sounding empty. Only by taking the right action can you repair your broken reputation.
Consider for a moment, what do Charlie Sheen, Anthony Weiner and Tiger Woods all have in common?
They all apologized right after a major personal crisis.
I believe, in the US, this type of apology has become so cliché, it's lost all its credibility, because  In short, we don't buy post-crises apologies anymore.
Here’s my four-point plan for cleaning up after a any mistake:
1. Write a one-paragraph Big Idea nods to the mistake, but talks about the future. Then memorize it. Here’s an example:
Today’s servers are the most complex devices man has ever invented. They move terabytes of data in microseconds, and we humans have come to rely on them. Or perhaps the word is OVERRELY, for they are machines and they can fail. In fact, these failures are a right-of-passage for any fast growing company, letting them know, it’s time to upgrade, improve and invest in more infrastructure than ever before ...
2. No one expects you to be perfect. Accurately describe what new systems or procedures you're installing as soon as possible and sell the client that new level of service.
3. Pitch the client like you would a new account. Don’t count on their goodwill, just their desire to buy great service at a fair price from a good company. Give a CLEAR description your new improved level of service. If you need best pitch your industry has ever seen, jump over to Pitch Mastery, I’ll make sure you get it done.
4. Get professional help. If you find yourself in a “situation” where you’ve really messed up and first three steps above aren't enough to tamp-down the crisis, enlist the support of a credible third-party professional who knows how to build a script to handle this kind of situation. The president has a script writer, so do Fortune 500 CEO’s and franchise athletes ... you’re no less important and you should have one too.
Whatever you do, best not expect a gushing apology to work. We live in a jaded, cynical society that has had its fill of sketchy executives, politicians, celebrities and athletes. So truly, a modern crisis means never having to say you're sorry. It means MORE than that: fixing your act, communicating the fixes as they're done and then quickly reestablishing your reputation.
Don’t wait to learn how to handle yourself until you’re in a tight situation. If you haven’t already, buy PITCH ANYTHING now. And do sign up for a free trial of Pitch Mastery.
Forward this email to anyone you think might benefit from it, so they can get on our mailing list.
I have to run, another client just walked in the door, he’s wearing thick glasses and has a large computer. I’m not sure what the problem is here, but I'll bet it's hard to pronounce.
See you next week when I cover the right way to start of any presentation (things I learned the hard way).
-Oren
oren@pitchanything.com"



=> The Takeaway: Don't apologize unless you've truly hurt someone personally, lest you appear weak and incompetent. Take a lesson from the universally disliked (but desperately envied and admired) Donald Trump. Don't get caught in the quicksand of an apology. Don't make it into an issue. Don't spend time falling into the trap of back peddling.

Labels, Tags, Categories, Keywords And Search Terms For This Article:
Charlie Sheen, Tiger Woods, Heidi Fleiss, Gucci, apologies, success, business, negotiating, GEIconsulting, Douglas E. Castle, 


Thank you, as always, for reading me,


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Sunday, November 1, 2015

Equity Crowdfunding Has Landed!


Equity Crowdfunding Has Landed


Now Anyone Can Participate In StartUp IPOs.
Investment Bankers? Prepare To Be Disrupted And Displaced.
Promising New Companies Have A New, Easier, Cheaper Source Of Capital

NOTE: THE INFORMATION CONTAINED IN THIS ARTICLE SHOULD NOT BE CONSTRUED BY THE READER AS BEING LEGAL, FINANCIAL, TAX, ACCOUNTING, ECONOMIC OR INVESTMENT ADVICE. NO OFFERING OF SECURITIES OR OTHER INVESTMENT INTERESTS OF ANY TYPE IN ANY ENTITY IS MADE HEREBY, NOR IS A SOLICITATION FOR THE PURCHASE OF SECURITIES OR OTHER INVESTMENT INTERESTS OF ANY TYPE IN ANY ENTITY MADE HEREBY. THIS ARTICLE IS INTENDED FOR GENERAL INFORMATIONAL PURPOSES ONLY AND REPRESENTS THE VIEW OF THE AUTHOR ONLY.

THIS ARTICLE IS COPYRIGHT 2015 BY DOUGLAS E. CASTLE, WITH ALL RIGHTS RESERVED. ANY REPRODUCTION, TRANSMITTAL OR DISTRIBUTION OF THIS ARTICLE, EITHER IN WHOLE OR PART, IS UNAUTHORIZED AND MAY BE UNLAWFUL, UNLESS FULL ATTRIBUTION IS GIVEN TO THE AUTHOR AND ALL LINKS IN THE ARTICLE REMAIN INCLUDED AND “LIVE.”

The Securities & Exchange Commission (SEC) has now approved and promulgated (by publication) the Final Rules for Title III Equity Crowdfunding under the JOBS Act legislation. In a few months, any investor, regardless of income and net worth, will be able to participate in a startup company by purchasing shares or debt (bonds, etc.) and earning a return on investment in the form of capital gains, dividends or interest.

This is truly revolutionary in the world of crowdfunding, which has been dominated since its inception by rewards-based and donation-based funding approaches. These offerors, featuring their pavilions on such sites as Kickstarter, Indiegogo and GoFundMe, were not permitted to offer securities to participants. Now, that has all changed.

If a startup or entrepreneurial enterprise wants to raise money by selling its shares, bonds or notes to the public, it may now do so on one of any number of duly-licensed internet-based platforms, often referred to as “portals”. Equity crowdfunding will disrupt the traditional capital markets, and will eliminate much of the expensive and extensive compliance requirements associated with typical private placements (offerings to a limited number of investors pursuant to the terms of a private place confidential offering memorandum), and initial public offerings (sold by prospectus through investment banking and securities brokerage houses).

There are, of course, certain rules and restrictions on the amounts of such offerings, and on certain other aspects of raising money through securities offerings orchestrated through internet-based crowdfunding, which can be done by licensed and registered securities broker-dealers and a new class of less-restrictively regulated entities called “funding portals”. Some of these restrictions are highlighted briefly in an article in Fortune magazine:


Another article which sheds some further light on this dramatic change in the possibilities for startups to raise operating capital through securities crowdfunding can be found in an article in Forbes magazine:


The most comprehensive outline (merely a hint) of the newly adopted rules and restrictions is set forth in a press release put out by the SEC itself:


A quick synopsis of some of the potential changes anticipated to trend through equity crowdfunding via investment bankers and portals follows:

=> There will likely be a decline in the percentage of entrepreneurial companies seeking funding in excess of $25,000.00 - $50,000.00 through the traditional rewards-based crowdfunding platforms, and a dramatic increase in the number of startups listing themselves on portals, especially those nascent enterprises and projects seeking capital of between $100,000.00 and $1,000,000.00;

=> There will be a decline in the percentage of total startups seeking money from venture capitalists, angel investor syndicates and private equity sources. These last three categories of capital sources will still be seeing their share of larger (i.e., in excess of $5,000,000.00) fundraising deal prospects, especially where disruptive technological innovations are valuable proprietary intellectual property are involved; and

=> Some entrepreneurial offerors will be “working,” “gaming” and otherwise testing ceilings on crowdfunding offering amount limitations by experimenting with offering units featuring layers of warrants, aggressive conversion features and other ingenious ways of working within the written legal framework of the regulations, while possibly pushing the intended regulatory envelopes. Some of these crowdfunding experimenters will be seen as pioneers and others as outlaws (naturally);

=> There will be an economic stimulus to the US economy through a variety of channels including an increase in private sector permanent jobs creation in the small business sector;

=> A goodly portion of the fees generated by traditional investment banking firms will be shifting over to the owners of licensed and registered portals. Investment banking will be significantly disrupted, especially in the IPO market, while portals will be inundated with both supply-side and demand-side business and the income which is ordinarily associated with underwriting.

As always, thank you for reading me,


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