7 Statistics That Everyone Should Be Aware Of

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Photo Credit: Peter E.Lee (Creative Commons)

97% of the mind is the unconscious mind where all decisions are made. Most of the time you are on auto pilot.

93% of communication is non verbal. Tone of Voice (38%). Body language and physiology (55%). Only 7% is made up of words. Pay much more attention to not what you say but how you say and deliver it.

2 million bits/second of information is what we are exposed to but we only take in and are conciously aware of 7 (+/-2) chunks of information. Information is deleted, distorted and generalised based on your attitude, values, beliefs, memories, strategies and behaviour.

For example, notice the colour of the wall, notice your feet against the ground, notice where you are sitting, notice a sound. Most of these information were deleted, distorted and generalised so that we don’t get overloaded with useless information.

The downside is that we miss large chunks of information at any given time which can actually be useful and beneficial to us.

80/20 rule is where 20% of your carpets at home is likey to get 80% of wear, 20% of your clothes will be worn 80% of the time, 20% of your your customers account for 80% of your business profits. 80% of consequences flow from 20% of causes, 80% of results come from 20% of effort.

The principles applies to your life, your social world and to the place where you work. Understanding 80/20 rule gives better insight into what is really happening around you. Our daily lives can be greatly improved by identifying what is of more value.

Every 18 months in a relationship you need some new life form that both partners can see growth in to maintain an active relationship, for example a new Business, Pet, Child, Plant etc

30 minutes is the time it takes to remove long standing negative emotions such as Anger, Sadness, Fear (anxiety, stress), Guilt, Embarrassement and Hurt.

An instant is how long it takes for you to decide to change something

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50 Freelance Work Ideas

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Photo Credit: JustinJenson (Creative Commons)

A mentor recently said if you only have 1 choice then you’re fucked, 2 choices then you’re stuck but if you have 3 choices or more then you have options. 

In relation to a career, there are unlimited ways in which one can get by as a freelancer or contractor. You can even combine various roles to fill a single day. It could even lead you to discover your Career Passion.

Stop waiting to be chosen. Create your own roles, products and services. Find or lead a tribe. Build a community. Connect People. Set your own rules, change the status quo. All the resources you need are online, through your existing networks/contacts or at amazon.com
It doesn’t have to be perfect. Start somewhere.

1. Freelance.com.au
2. Article writing with Problogger
3. Food articles
4. Making birthday cakes
5. Business Consultant
6. Journalist
7. Personal Trainer
8. Relationship Coach
9. Executive Coach
10. Trainer/Speaker
11. Neighbouring services e.g. lawn mowning
12. Wedding photographer
13. Wedding videographer
14. Makeup Artist
15. Personal Chef
16. Personal Assistant
17. Sports Coach
18. Part time and Contractor roles on Seek
19. Finance broker
20. Marketing Affiliator
21. Promoter
22. Event organiser
23. Pet handler
24. Babysitter
25. Technical writer
26. Wedding singer
27. Stand up comedian
28. Fisherman
29. Landscaper
30. Handyman
31. Author
32. Nutritionist
33. Tutor
34. Painter
35. Guest Blogger
36. Web designer
37. iphone App developer
38. iphone App designer/inventor
39. Tailor
40. Interior designer
50. Airtasker

 

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Simplethings Press

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I love all things simple, yet I am also intrigued by the complexity and challenges that comes before it. The more difficult something is to overcome, the more enjoyable the outcome once it is accomplished.
Sarah’s career and business story reminds me of that. From initial career challenges to a more simplified way of living. Her business is even called Simplethings Press. Check it out!

"When Friday afternoon rolls around, you forget how bad
 Monday morning was"

Where were you in your career before setting up your business, what were you going through at that time?

I have a BA in Communications – nothing I regret, but not exactly the most vocational of choices. The end result was that I didn’t know what I wanted to ‘do’ in terms of a career, and after some travelling and trying to figure it out, I stumbled into a marketing/communications role.

That lead to another marketing role, and eventually, yet another. By this point I had figured out that I in fact did not like marketing and more to the point, hated working in an office.

It just was not for me. I found it hard to not really care about or enjoy the work I was doing every day. I felt like a big fraud! Mostly, I realised that I wanted to do something creative, on my own terms, and outside of the confines of an office.

If I was going to work at a computer, it would be at my kitchen table, not in a cubicle! Overall, it took me about 3 years of various office jobs to finally realise I needed to leave and do something else.

What did you do to get yourself out of the career rut you were in to where you are today? 

The more time went by, the more I knew I was in the wrong job. Additionally, my husband and I wanted to eventually start a family, and I knew I wanted to be self-employed and able to work from home.

So on the side, I started using my design skills to design wedding stationery. I also developed an interest in letterpress printing (I can’t remember where or how I first discovered it – I just know that I fell in love with the look and feel of it, and wanted to learn how to do it myself.)

That led me down a whole new path. For years I did stationery design on the side, coming home from my day job and working on it until late at night.

At times I felt like the transition to doing it full-time would never happen… the steady paycheck was too hard to give up, and the fear of leaping in and quitting my day job loomed too large. I really just needed a push, and the push turned out to be falling pregnant with my daughter.

That was when the stars sort of aligned. I knew I would never go back to an office job after she was born, and the day I started maternity leave I knew would be my last day ever again working for someone else in an office. That was also the day Simplethings Press went full-time, I dived in head-first and I am pleased to say, have never looked back. It is the best decision I ever made. The business has grown steadily, we are getting busier all the time, and I really love what I do for a living.

What have been your achievements since making the move and what motivated you to where you are now?

I am proud of having been able to juggle self-employment and growing a business with caring for my daughter at home. It is a big juggling act and I couldn’t do it without the help of my husband (he is amazing), but it is very rewarding and for me, truly the best of both worlds.

I get to work on something I enjoy every day, and at the same time I get to spend a lot of time with my daughter. The downside is I work a lot at weird hours (when she is asleep) and I get zero free time, but every mother out there will say the same thing! It is a lot of work, but it is all worth it. My life now is exactly the way I always wanted it to be.

What word of advice would you give to those who are stuck in a career they dislike? 

It’s really hard to just quit a job and take a leap into the unknown. Fear is a very motivating factor when convincing you to stay put ‘just a little bit longer!

When Friday afternoon rolls around, you forget how bad Monday morning was.

Everyone is different – some people are okay with not really liking/loving what they do for a job – the paycheck is enough. And there is absolutely nothing wrong with that!

But for me, I had to find a job I enjoyed as it was making me miserable to continue to do something I didn’t like. So my advice would be – figure out how serious you are about wanting to get out.

Then, figure out a plan of what you can do to get there. Make a list, and start crossing things off, one at a time.

One of the biggest things I learned is that moaning about how much I disliked my job did not actually count as doing something about it! The only thing that will get you there is making a plan, and then doing it.

 

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New Reference Points

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The following is a copy of my recent speech. This is a 7 minute speech. Some of the strategies tested during the speech include:

  • Tap, Tease, Transition from Craig Valentine. This is where you ask the audience a question (tap), they answer the question but you don’t disclose the answer as yet to capture their curiosity (tease). You then cleverly (transition) to tell a story to make your point and have the audience’s full attention.
  • For each point, tell a story. One story for each point/message conveyed
  • Body language. Using body language to convey the messages.
  • The magic number 3. People remember 3 points more so than 4 or 5. Or 3 ideas placed side by side, 3 examples, 3 metaphors. 3 is the magic number.
  • Allude or refer to an earlier point to make the message even stronger.

(see comments in red below on where the strategies was utilised and outcome):

Let me ask you a question what is the number #1 reason why people don’t succeed in something?
(#comment : Tap)

(Audience answers) All your answers are great, and if you listen to them they all have one thing in common. They’re all wrong (laughing). (#comment : Tease) They’re not wrong. They’re just not the number #1 reason in my opinion that gets in the way.
(#comment: Here I had the audience’s full attention, everyone had full eye contact and very curious in wanting to know the answer. For some reason the audience reminded me of Meerkats – Alert, curious and upright)

Photo Credit; Chris Palmer (Creative Commons)

 

 

 

 

 

 

 

 

 

 

You see, I’ve never been much of a runner (#comment : Transition into the story. This is much more effective than saying ‘Let me tell you a story’ because by now the audience wants to come on the journey with you since you have their full attention)

Over the last month I’ve been training for the Sydney Urbanathlon which is to occur next week. It is an 11km run with 10 obstacles around the city.

At first I struggled in my training with running up to only 5km.

During my training I reasoned that it was because:

  • I had reached my limit or
  • That my head was hurting or
  • My legs started to get sore and my back was heavy.

 (#comment : Magic number 3. 3 points above)

Sound familiar?

I was looking for a way to stop running. And guess what, what you focus on is what you get.

I mean who needs to run anyway when you can walk to your destination? When you can cycle? Or when you can kick your legs up as passenger and have someone drive you to your destination? (#comment : Magic number 3)

The only reason why I couldn’t run the 11k distance in my training was because I was running the wrong strategy.

You see between April 2011 and January this year Pat farmer who is a remarkable Australian ran 80km each day (that’s 2 marathons) none stop, no days off for 10 months straight from the north pole to the south pole. That’s every single day including weekends.

In unfamiliar terrain, through cold weather and amongst polar bears. The only time he kicked his legs up was to sleep, eat or to get foot massage. (#comment : Magic number 3)

I mean what excuses do I have left to run 11km in familiar terrain, good Sydney weather and a warm place to sleep at night. None whatsoever! None! No excuses.

The #1 reason why people fail at something is because we stop tweaking our strategy. We stop creating new reference points. (#comment : Here I answered the first question above, but mentioned ‘New reference points’ which the audience is still curious about) 

When I decided to tweak my strategy, simply by making small adjustments to preparation, focus and mindset, in just 3 additional runs I was able to double my running distance from 5km to 11km to meet the required training distance.  I still think the distance is quite poor by the way.
It is only when until you see positive changes and progress you will then really appreciate that prior to that it’s all just an excuse nothing more, nothing less.

What are reference points?

I mentioned earlier that people stop creating new reference points. (#comment: Alluding to an ealier point) 

Who here has heard of or played the Super Mario game? You know how to finish the game Mario must rescue the princess?

To get there Mario must go through a series of levels as checkpoints.

These checkpoints are like reference points, only until you overcome one level at a time can you finish the game.

I remember playing some of the hardest levels in Super Mario Bros with my mates where I got to the last stage and it was extremely hard to get through.

I must have tried the same way over 35 times because I was convinced that it was the right approach. The swearing was getting louder and louder each time.

I started to swing my control pad around, to give Mario that extra boost. Only to fail miserably.

Look I wasn’t the best at computer games, but I realized that trying the same thing over and over and expecting a different outcome was borderline insanity. In fact it was insane.

I eventually tweaked my approach until I was finally able to finish off the game and rescue the princess. I spend months playing that game.Two months later Super Mario Bros. 2 came out – let’s just say I had mixed emotions.

Reference points are important because we can continue off from the last checkpoint like in Super Mario Bros. Often you don’t have to start from the beginning.You know that once you have accomplished something, it’s done no one can tell you otherwise. If you have created milestones nobody can take that away from you.

How to create new reference points?

To create new reference points and often you venture into territories you haven’t been before, a new place, a new interest, new friends, something fearful, new locations, new career or relationships. New strategy. In unfamiliar terrain and territory. (#comment: Alluding to an ealier point)

The #1 reason why people don’t succeed in something is because they stop tweaking their strategy. They run through old ways, old checkpoints and reference points, running through the same level the same way and expecting a different outcome.

My question to you is what new reference points have you created this year and are you proud of them?

(#Comment: I had fun presenting this speech. After using the abovementioned strategies I was able to maintain the audiences curiosity and attention from beginning to end. Further improvements needed in pausing)

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How to Identify Undervalued Listed Companies

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Photo Credit: Herzogbr (Creative Commons)

 

 

 

 

 

 

 

 

 

 


Having assessed hundreds of businesses and companies over the last 9 years, I’ve noticed that undervalued companies have several characteristics in common and are often overlooked.
If you are an investor than finding an undervalued company is every investor’s desire.  If you are a business owner than being valued as an ‘undervalued’ company is every business owner’s dream.

Finding leading and undervalued companies is one of my passions. Warning: It can be addictive. You’ve been warned :)

Using a combination of methods:

  • William O’neil’s CANSLIM
  • Roger Montgomery’s Intrinsic Valuations and Warren Buffett’s Fundamental Analysis
  • Noise and Media

1)      CANSLIM is a list of characteristics all of which the company must possess for it to be a leading progressive company 

Current Big and Accelerating Quarterly Earnings and Sales per Share
Annual Earnings Increases: Look for Big Growth
Newer Companies, New Products, New Management, New Highs
Supply and Demand: Big Volume Demand at Key Points
Leader or Laggard
Institutional Sponsorship
Market Direction 

2)      Intrinsic Valuations, is to determine the ‘real’ valuation of a business. Fundamental Analysis is the process of assessing the financial performance of the business as well as the key business operations, products, it’s place in the market and competition

3)      If the company is widely publicised it’s often too late, the masses and the general public are always the last to know, and by that stage the company is less likely to be undervalued. The more noise you hear about the company the more crowded the market place the more overvalued (not undervalued) the company.

Example

A look at Jumbo Interactive (JIN) on the ASX. Jumbo is an online lottery business that has created the ozlotteries.com website. Their systems are widely used by Australians.

1)      CANSLIM 

‘Current Big and Accelerating Quarterly Earnings and Sales per Share.’
The last 3 years has shown positive and significant increases in earnings and sales.

‘Annual Earnings Increases: Look for Big Growth’
Large growth prospects as Jumbo taps into the US Market, following the green light for online lotteries by US legislation. Currently 0% internet penetration in the USA.

‘Newer Companies, New Products, New Management, New Highs.’
The online lottery is new business.
 

‘Supply and Demand: Big Volume Demand at Key Points.’
Key announcements supported by spike in volume representing market interest and new substantial shareholders.

‘Leader or Laggard’
In comparison to the ASX200 (see the blue line which is the top 200 listed companies by market capitalisation), Jumbo is a leader.

‘Institutional Sponsorship’
Jumbo’s key shareholders include Vesteon Pty Ltd, JP Morgan Australia Limited, HSBC Custody Nominees Australia Limited and Telstra Super Fund Pty Ltd

‘Market Direction’
Even the most undervalued companies in bad market conditions will struggle to advance. The current market conditions are quite flat with slight advantage to the bulls. The ASX200 has risen over 3% this year. 

2)      Intrinsic Valuations, is to determine the ‘real’ valuation of a business

Often the price of a company may not be its intrinsic value; this is because market evaluations are determined by a combination of Institutional investors, large and small organisations, mums and dads. The company prices are determined by a wide range of factors by professionals and amateurs alike. 

To determine if the company is undervalued a calculation is required: 

Using the method mentioned in Roger Montgomery’s ’Valuable’ book which references Warren Buffets way of evaluation. Refer to ‘Valuable’ for a full explanation.

Inputs: Shareholders equity, Shares Outstanding, Return on Equity, Dividend Payout ratio, Required Return.

Equity per Share = Shareholders Equity / Shares Outstanding
Payout Multiplier = (Return on Equity x 100) / Required Return
Retained Multiplier = ((Return on Equity x 100) / Required Return) ^1.8
EPSP = Equity per Share x Payout Multiplier  
EPSR = Equity er Share x Retained Multiplier

Intrinsic value = (Payout ratio x EPSP) + ((1-Payout ratio) x EPSR) 

Using a moderate/conservative Formula:
JIN’s intrinsic value on 2011 figures is $2.92 per share
Current JIN’s share price of $1.66 is undervalued. 

Some key questions to consider are:
Does the company have a superior product?
What is its niche?
Who are its competitors? Does it have any?
Does it have a strong management team with a track record? What proportion of shares do they hold?
What are its future growth prospects?
What is the performance history, in terms of profit, sales and earnings?
Would you buy the product? 

3)      Have you heard of online lotteries before through the media or friends? If not, you’re probably onto something.
There are over 2000 listed companies and businesses on the ASX, but only a fraction stand out from the crowd. Although undervalued stocks always exist there are no guarantees that the market will honour the valuated price. The market is unpredictable. It is all about the likelihood and stacking the odds that a company is likely to succeed amongst the competition. The influx of new and undervalued companies will never end, as long as there is innovation and new ways of doing business, the next ‘Facebook’ is already underway.

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