Plans to move Newcrest out looms

Provincial assembly and landowners at helm

Ian D. Hetri

Sir Julius Chan

Sir Julius Chan. Photo by Raksy Heron

A planned radical stance backed by Governor of New Ireland Province, Sir Julius Chan and members of his provincial assembly, the chiefs and the local landowners to move Newcrest out of New Ireland Province is imminent.

“We are sick of the deceit, arrogance and incompetence you Newcrest have demonstrated since you took over Lihir” Sir Julius said.

Sir Julius said that his provincial government and the local land owners are taking necessary steps with relevant authorities to move Newcrest out of New Ireland Province.

Sir Julius stated the reason behind the move as being Newcrest not keeping its word to fund the Tax Credit Scheme (TCS) to implement developmental projects In New Ireland Province.

“In 2011 Newcrest told us they would provide K157 million over five years for the TCS.

Then earlier this year they told us there would be severe cuts in the TCS. We have waited for 18 years for the TCS to come onstream” Sir Julius said.

It is understood that Newcrest is not meeting its commitment to the province and the Governor and people of New Ireland are not happy.

Newcrest is believed to have asserted that The Bottom has Fallen out of the Price of Gold referring to the fall in prices of minerals in world market over the last few months.

Newcrest bought Lihir Gold in August 2010 at $US1200 per ounce. The price global gold price rose to $1400 per ounce in 2011 with Newcrest seeing a profit of $908 million. Then in 2012, the global gold price rose to $US1800 per ounce with the company making a profit of $A1.117 billion.

Between 2011 and 2013, Newcrest has seen a massive windfall. World gold price has since plummeted to $US1250 per ounce. Just $US250 above the purchase price in 2010 when Newcrest bought Lihir Gold.

Sir Julius also asserted that Newcrest is laying of hundreds of people to cut its workforce, particularly the expensive which are the expatriates.

“Newcrest does not need them anyway,, and this is a good opportunity to shed them” Sir Julius said.

Sir Julius also asserted that Newcrest has no money to keep to obligation to New Ireland. 

 

“They appear to have sufficient money to pay their executives not only large salaries but also outrageous bonuses, even in bad years. In 201o the top three executives in the company which Sir Julius named as Stephan Creese, Collin Moorhead and Deborah Sterling received $A75, 000 bonuses each in 2011. Then in 2012, even gold prices began to drop, they each got $A100, 000. And just two months ago, after Newcrest said the bottom has fallen out of the gold price, they each received the bonus of A$125, 000.

It is not only w are sceptical. The Australian Shareholders Association has said that it thinks this constitutes questionable practise” Sir Julius said. Sir Julius added that the industry can’t afford to pay 10% royalty.

“Our royalty rates are lowest in the world. African counties have raised their royalty rates to between 4% and 12% in the last few years. Even now, with gold trending down, Kenya just doubles the royalties to 5%. In the rest of the world, gold, copper, oil and gas range as high as 20%. We can do 5%. Newcrest can do it. They are here for the long term or we do not want them” Sir Julius concluded.

Connecting PNG businesses and individuals to opportunitiesIBBM

IBBM's Johnson Pundari 

Papua New Guinea‘s landowner companies have been around for a while, but the current resource boom, particularly the US15 billion (K37.5) PNG LNG project has significantly increased  their opportunities. Under the current public private partnership agenda driven by the incumbent government, many private sector organizations are partnering with the public sector organizations to ensure efficient delivery of basic goods and service to the mass and to boost the growth of private and the economy.

The IBBM Enterprise Centre established by the PNG LNG Project in partnership with the Institute of Banking and Business Management (IBBM) in 2009 is a driving force behind private sector growth in PNG.

TIM talked to IBBM’s manager Johnson Pundari about taking private sector growth, particularly, the Small Medium Enterprises (SMEs).

What are the core objectives of IBBM?

Pundari: The IBBM Enterprise Centre was established by the PNG LNG Project in partnership with the Institute of Banking and Business Management (IBBM) in 2009. Its main function was to help build the capacities of SMEs from the Project Impact Areas so that they can be able to participate in spin-off business opportunities from the LNG Project. IBBM works with the top 180 corporate organizations in PNG. Besides the Central Bank, the commercial banks have been the major clients and have their presence in our governing board. PNG LNG Project has a five year contract with IBBM Enterprise Centre. Other clients are Interoil, Nasfund, OTML, Coffey, PNG EPSP and other 150 SMEs. 

How do you conduct your capacity building programs?

One of the major functions of the centre is conducting of Business Assessment of SMEs. Eight global best practise criteria are used to assess performance and capabilities of companies and a star rating is awarded accordingly. This process identifies the strengths and weaknesses (GAP Analysis) of the assessed companies and business improvement is done to address the weaknesses. This is followed by recommendations of necessary capacity building programs to help close the GAPs. The Centre has assessed over 300 companies to date. It has then helped these companies in addressing the identified GAPs.

The assessment criteria are:

Governance and Organization

Business Management

Finance Management

Human Resource

Inventory Control

Quality

Safety Health and Environment

Reputation and Image

Most SMEs do not grow and mature into sustainable businesses due to lack of simple businesses process and procedures. Businesses are done on an ad hoc basis without adhering to proper businesses practices thus sustainability is an issue. Growth and development of SMEs in PNG will still be vague without proper capacity building programs.

Do you see PNG SMEs having the ability to sustain their businesses?

Pundari: Yes. They have the ability to prosper given enough support in terms of strengthening management and operations systems and processes. Most SMEs need initial guidance through capacity building programs so that they can be guided through sound business conducts and ethics. They need to focus on building strong practices around the eight key areas mentioned above.

PNG needs desperate investment infrastructures. What kind of roles should private sector play in this aspect? What role should the government play?

Pundari:  An ecosystem needs to be identified in the SME space. The different challenges of SMEs need to be identified. These include capacity, finance, management, operations, legislative framework etc…and identify organizations, either government or private or donor agencies that can effectively address each of these challenges. The government should provide an enabling environment through proper coordination of resources and legislations to enhance the growth of SMEs in the country.

Interview conducted by Ian D. Hetri

Central Bank offers CBB - Tap facility to boost government securities retail market

Central Bank

The Central Bank Bill (CBB-Tap) is a tool introduced by Bank of Papua New Guinea (Central Bank) for managing liquidity, the amount of money circulating in the economy.

According to the manager of Money Market Operations Unit of the Central Bank, Ms Winnie Linken, the CBB-Tap facility aims to provide greater chances for ordinary people to invest thus boosting the retail market in PNG.

This was revealed in the recently concluded investment seminar, conducted by Port Moresby Stock Exchange (POMSox) in collaboration with Kina Securities and the Central Bank.

“The objective of CBB-Tap is to provide small investors in the retail market an alternative investment product and assist in developing a savings culture for Papua New Guineans.

In doing so, the facility could help in liquidity management, contributing towards transmitting the central Bank’s policy rate to market rates. This would assist in meeting the Bank’s price stability objective” Ms Linken said.

Very few Papua New Guineans know about Government Securities such as treasury bills and inscribe stocks are and the few that do are either employers of organizations dealing with government securities or experienced investors or companies. Ms Linken discussed in length what treasury bills and inscribed stocks are and the procedures involved in investing in those assets.

Treasury bills are a discounted paper or security issued by the government. By issuing the Treasury Bills, the government borrows cash from investors and repays with interest later with revenue generated from taxes and other sources. Investment in Treasury Bills is open to general public as well as organizations.  Treasury Bills is traded at a yield.

Inscribed stock is a medium to long term debt instrument or Kina denominated bond with maturities of up to 17 years. It is a loan to the Government that earns interest semi-annually and is repayable on the maturity date. Inscribed Stock is traded at a price.

“These are low risk investments but you also need to do your own research and consider other options before investing your money with Bank of PNG who are the legitimate dealers of government securities” Ms Linken concluded. 

POMSox offers education for first time investors

The Port Moresby Stock Exchange 

Many Papua New Guineans are realizing the vital importance of sound investment in their long term financial future. Port Moresby stock exchange (POMSox), in its endeavor to promote awareness on investing with paper assets recently concluded a one day seminar at Crown Plaza hotel in Port Moresby with estimated participants of over 100.

POMSox company secretary and listing manager Vincent Ivosa said investors need information to make sound investment decisions and that is what the First Time Investor Seminar provides.

“Investors need this information and we are trying our best to get this information out to them through initiatives like this” Ivosa said.

First Time Investor Seminar conducted by POMSox in collaboration with Kina Securities and Bank of PNG provides basic education on investing in stocks and government securities like treasury bills and inscribes stock.

In his presentation, Mr. Ivosa gave an overview of POMSox and its roles and functions.

“POMSox like other stock exchanges around the world has been developed to meet two basic and complementary needs; a company’s needs for funds and an individual or company’s desire to invest savings efficiently.

The fundamental purpose of POMSox is to provide an internationally competitive market for fair trading of PNG and international financial securities which are quoted in the Exchanges official trading list.

The market provides the means by which investors and the users of capital can be brought together for mutual benefit. These securities can be bought and sold on the market at competitive prices, which reflect current levels of supply and demand” Mr. Ivosa said.

Presenters from POMSox, Kina Securities and Bank of PNG covered stock market investment strategies as well as in government securities such as Treasury Bills and Inscribed Stocks.

SOCIAL MEDIA to boast financial services in PNG: 3 Important Business Lesson

Source: www. google images.com

"Unique opportunities exist for social media to improve performance within consumer financial services in areas such as insurance, credit accounts, loans and personal investment"

We stand on a precise, stepping into a new era, a time of enormous changes and uncertainty characterized by emergence of a truly borderless, interconnected global economy. Dr. Robert Rosen founder of Healthy Companies International described 21^st century economy as being the world’s youngest economy, fueled by the spread of free markets and democracy around the world.

Ours is a unique place in history.  One that had a brief taste of the Industrial Revolution. Then  to the wake of an intercourse with the powerful grips of the 21^st century Electronic Information Revolution and Global Economic Interdependence.   A dynamic and ongoing process, globalization, involves   the integration of markets enabling individuals and corporations to reach the world farther, faster, deeper and cheaper. We live in a networked, interconnected world with computer device embedded in telephones, cars, televisions and household appliances. The internet and electronic commerce are dramatically changing how we do business.  

As in all other business sectors, unique opportunities exist for social media to improve performance within consumer financial services in areas such as insurance, credit accounts, loans and personal investment.

Financial products are tangible and often complex; consumers find it difficult to make comparisons across offerings, even within the same category, and often seek out an advice (either professional or knowledgeable acquaintances). In the wake of technological revolution, social media provides a way for consumers to learn from peers and ask questions in a safe environment.

Social technologies cans also provide organizations to have valuable insights into consumer behavior and attitudes that they can use to refine products and branding. Consumers are increasingly willing to interact with financial service providers who have online presence on the especially on popular social sites like Facebook, Twitter, Google+, LinkedIn, YouTube, Pinterest, Delicious and other less popular ones. 

Getting customer insights from social media. 

Social media can be great tool for financial institutions anticipate future customer needs. Demand for many financial products is tightly bound to significant life events such as buying a home, switching job or customary obligations. Social media can provide a window into these events, allowing sales representatives and advisors to engage customers early in their financial journey and keep track of life events to identify cross-selling opportunities.

Potential benefits of social technology as well as key challenges are discussed.

     Enterprise collaboration

There is an even larger opportunity for social technologies to create value for financial companies through enterprise collaboration-using social technologies for internal communications and knowledge sharing.  

Large number of banking and insurance company employees is interaction workers whose jobs involve independent judgment and direct interaction with other employees. They are employed in complex organizations with network of branches, multinational operations, and multiple lines of business, and have much to gain through improved communications and collaboration.

2 Customer information and fraud detection  

Most social technology implementation in the sector so far has been in the marketing and customer service, usually using well established social platforms to reach consumers. According to Digicel statistics, the site is set to become more entrenched in our daily lives.  The number of registered PNG Facebook users online currently hovers around 65,000.

Others such as Twitter, LinkedIn, and YouTube are also common in PNG, though not that popular.

Some of the most sophisticate financial institutions globally have begun to explore social media as a source of consumer data and information that were previously not available-such as age, education attainment, and current or past employers –can be used to build a more accurate risk profile to calculate credit scores and prices insurance premiums. Although only a few international firms are using social technologies for this purpose, it has significant potential and will likely be an aspect of many firms’ social technology strategies in the future and PNG is not immune to global ICT revolution.

The largest opportunities for consumer-facing financial institutions are in the customer insights and sales and marketing.

Social technology can enhance fraud detection well as decrease incentives for fraud by tracking connections in social media.

3      Other areas where potential benefits exist

www,googleimage.com

Product development teams can monitor digital communities where customers share

opinions and views on products and services, and they can use this information to shape the

direction of product development.

Operations and distributions represent a significant share of total cost for consumer

banking and insurance companies. Social technologies can help improve collaboration (and

raise productivity) across large, geographical dispersed operational networks.    

Sales and marketing constitutes a significant cost for financial institutions. Institutions

spend hundreds of kina to acquire each new customer. Social technologies have greater

potential to make this spending more productive, particularly for customer acquisition, and

to reach a large number of customers and potential customers in less intrusive and more

effective way.   

Key challenges

There are challenges for financial institutions associated with the rise of the social economy. Regulations and privacy, not being a center of discussion today, may become issues to be talked about. These are ongoing issues in the global financial fronts. Issues requiring management, and social technologies can have disruptive effects including the emergence of new players that provide their service on social platforms.

Social media complicate compliance; companies must document how they comply with regulations that govern what they can say about their products or how they solicit customers, whether the customer comes to sales office or visit a company social media page. Often regulations inhibit use of social media; in insurance for example, only licensed agents are allowed to approach customers. Also publication of insurance and banking services content is strictly regulated and often requires lengthy disclosures about investment risks. Players in this market   will need to invest in technology solutions

and processes that enable them to use social technologies whilst complying with relevant regulations.

Finally, many financial service companies may face organizational barriers that could inhibit productive use of social technologies.    Given their size and complex structures, large banking and insurance players may find it challenging to shift quickly to new operational models that would let them capture the productivity benefits that social media make possible.

Social technology is here to stay. It is where people congregate, share information and, increasingly, consider and execute purchases. Social technologies have proven their value in improving organizational performance. Financial services have enormous opportunity to reap the benefits of social technologies, but will need to invest in the talent and capabilities to do so. It will be money well spent.

MONEY IS NOT THE ROOT OF EVIL; THE LOVE OF IT IS……..??

By Richard Mandui 

Vendors in a busy market in Port Moresby 

Many of us treat money as something that has got a life of its own; something that is living and breathing. That is the illusion most of us have that distorts our handling of money. However, we should be treating money as a material possession. Many misinterprets and accept the distorted perception and on money in contrary to the actual teaching in the bible regarding money;

Most people say “Money is the root of evil”. The bible says  “for the love of money is the root of all kinds of evil…….” (1 Timothy 6:10. Holy Bible – New International Version.)

The middle class and the poor people tend to lean more towards the illusion that money has a life of its own and have reverence for it. Thus we work for money. The rich on the other hand; tend to think otherwise; they treat it as a material possession and make money work for them.

In PNG we love money but we are too lazy to honestly work for it. The people back in the districts have come up with their own way of making money through the “handout mentality”. The public servants serving in government have come up with the other method called the “10% cut” for getting the job done. Our politicians have also come up with theirs and it is called “finder’s fee,” for all those overseas loans they get for developing PNG with which; they get their percentage from and the state repay.

Money makes the world go around as the saying goes. In Port Moresby city, that saying has a familiar ring to it and can be seen practiced in broad daylight day in day out. Bus drivers, taxi drivers, betel nut vendors and service providers have their own way of making money.

For instance bus fare in NCD is seventy (70) toea a ride anywhere within city limits. Because of the love of money; bus drivers and crew without the authority of the Land Transport Board have come up with their own routes and fares. Today there is a direct freeway route on Bus 4; from Gordons (instead of travelling through its allocated route from Gordons – Courts – SNS Central Waigani – Boroko – Badili, Koki – Downtown – Kone – Hanubada and return)  through to downtown via Konedobu for a K1.00 fee. In the afternoon that fee is raised to K2.00 on the return journey. In addition after 2pm in the afternoon; the Bus 16 route from Gordons to Bomana (instead of travelling its allocated route which is from Bomana – Gordons – Courts – SNS Central Waigani – Four Mile – Tabari – Taurama Foodland – Three Mile – Manu Autoport and return)  see fare change from seventy (70) toea to K2.00.

From my research, I have found out that bus owners (this also applies to taxi owners) have a certain daily income quota they have set for the driver and the crew to make in a day (For taxi owners this applies to the driver only). For bus owners it may be K300.00 – K350.00 per day and for taxi owners it may be less. The task of fulfilling that outcome is left to the driver and crew of the bus to meet. Any monies collected after the required daily income is an incentive for the driver and crew.

Therefore, for buses to follow their allocated routes, the driver and the crew may not make their bonuses; so they devise their own route (mainly shortcuts) whereas they can meet their daily target and claim the bonuses. Most cases, those routes are illegal and fees charged excessive but the travelling publics don’t seem to care and the authorities turn a blind eye to it. Hence, the love of money controls the show.

In a day a PMV Bus 4 plying the illegal Gordons to Downtown direct service may raise the following monies;

Morning direct service:                                 4 x runs x 25 passengers x K1.00                                =             K100.00

Afternoon direct service:                               4 x runs x 25 passengers X K2.00                                =             K200.00

                                                                TOTAL:                =             K300.00

From this simple calculation, one can see why this route is profitable to the bus driver and crew. Hence they don’t care about the consequences of their actions. All they can see is the amount of kina they will have in their pockets after they have met the owner’s target. The owner also knowingly turns a blind eye to the illegal activity of his bus operator. He is always happy so long as he meets his daily targeted cash flow. Remember this calculation is only for a day. Try calculating this simple equation (by increasing number of runs) for seven days and you shall grasp the power of the love of money at work.

Apart from that classic example, there are lots more of such activities happening all around us today. Public Servants nowadays are on fortnightly salaries as per their job descriptions; paid for by your taxes to do their required jobs. However, if that job requires dealing with money then it is very common practice now that, you have to grease their hand first before your claim will be processed.  

Politicians on the other hand take overseas trips stating that they are going abroad to secure funding for development and impact projects for the people of this country. On their return they hold grand press conferences and make big statements boasting of how much millions and billions of dollars they have brought in. Fine for the grand show but the hidden agenda is the fact that, they still make money from a percentage of what they have secured from what is known as a “finder’s fee”. Supposing the “finder’s fee” is 20 percent. If a politician secures a loan of K6 billion kina then he is entitled for K1.2 billion.

The love of money syndrome does not stop only in businesses or government; sadly it has spread its roots down to the family unit in households throughout the country. Gone are the days when children will do things for free. Today a child will ask what he/she will receive in return for doing a favor first; before the deed is done.

About the author

Richard Mandui is a business reporter and freelance feature write with Pacific Business Review. Richard covers major breaking news attractive industries and do features/commentaries. 

Disclaimer: All view expressed here do not represent The Intelligence Magazine. It is the personal view of the author based on his findings. 

Understanding network marketing business system

“Never before has it been so easy to become rich,” Robert Kiyosaki author of Rich Dad Poor Dad said. There is so much truth in that. The 21^stcentury economy is one that brings greater challenges as well as opportunities. One such opportunity is the network work marketing. Network marketing is a business system that involves thousands or even millions of independent distributors who sell a company’s product or service. One of the famous networks marketing business system in PNG is the Proma Systems. The company has come to be recognized as household name, distributing cosmetics and performance products. There are others like Qnet and Anion.

How does the network work marketing system work?

Different network marketing companies have different ways of conducting business. I have joined Qnet and Proma in my early years of business and investment ventures. Though I never did create more wealth using the system, I benefited a lot from the education I received from my mentors. I began my own research into the network marketing industry. I finally began meeting the leaders of some of the businesses. The ones I met were some of the most intelligent, kind, ethical, moral and professional people I have met in all my years of business. I met people I respected and related to. I had found the heart of the industry. What I learnt is worth sharing so here is the hub that takes care of that.

Those that we signed up together with decided to keep it simple by growing their wealth using network marketing. I after getting educating myself, went out to build my own business and my Finance business Leverage Finance uses affiliating marketing techniques I learnt from the network marketing companies to build the membership.

In case you may be asking why I left network marketing yet recommended it here as a vehicle for wealth creation.

For those new to network marketing, outline here are general steps you can follow

1.      Enquire about the network marketing company you want to join. Do thorough background research. Ask: Are people really making money from this system.

2.      Sign up by buying a product from the network marketing company. In my case, I bought $400 Swish gentleman watch from Switzerland.

3.      You are given your membership number or ID Code. This is the code you use earn referral commission when you sign up new members under you.

4.      Meet your up liner or the person who signed you up under him. Note that it is vital for you to continuously attend the training sessions provided by your mentor to master your business and leadership skills.

5.      Starting selling or recruiting new members for commissions.

“If you don’t understand how the business makes money, don’t invest in it” Warren Buffet.

Many friends ask me “what is the best network marketing company I can join?”. When you a network marketing business system, you actually buying a business. That doesn't guarantee you any success what so ever. Don’t be fooled as there are just as many scam business systems disguised in the cover of networking marketing as there as good ones. That’s why you have to consider the investment Guru’s advice. Only buy the business you know how they make money.

Network marketing success

Great networkers identify the things that work for them and do that consistently. Not so great networkers tend to be a little hit and miss with their systems. They business may be facing a quit patch, so they start to network-attending functions, sending press release etc…As a result they become busier and busier without achieving result.

Network marketing has more to do with your planning and execution of your plans and duplication plays a major role in the success of network marketing systems.

Great networkers

1.      Give without expectations

2.      Do things for others-not to get something in return

3.      Have abundance mentality-

4.      Believe in making a bigger pie for everyone by giving away referrals

5.      Have wealthy and positive mindset

6.      Willing to face blunt rejections

7.      Confident and persistent and passionate about their life goals

Characteristics of great networkers

Obviously if you one to do well in this business system, duplication is key as I said earlier. These are the key traits you need to develop to do well not only in network marketing but also in your other business

Why network marketing?

Rich people look for, or build, networks while everyone else just looks for work. And network is just about the most important word in business. I believe the industry should be given an objective look by people concerned about doing business in the future as well as concerned about their own personal financial future.

Statistics show that 9/10 business fail in the first five years. Ever wonder why? One reason is because the teacher that taught you business in school has no real life business experience. He is a paper business man. In network marketing, the people at the top who teach have to be successful in the real world, or they would not be at the top. In the world of traditional business schools, you do not have to be successful in the real world of business to teach business. That is why instructors in the traditional world of business education do not earn as much as some of the instructors in the world of network marketing education.

Some of the more important real life business subjects network marketing programmes teach are:

1. Attitude of success

2. Leadership skills

3. Communication skills

4. People skills

5. Overcoming personal fears, doubts and lack of confidence

6. Overcoming fear of rejection

7. Money management skills

8. Investing skills

9. Accountability skills

10. Time management skills

11. Goal setting

12. Systemization

Summary

Don’t join the system until you fully understand business system or opportunity offered. If you are sure its legitimate, after doing your own background search and not relying on the person who wishes to sign you up….THEN TAKE ACTION. Sign up and start selling and recruiting to make money.

The 5 Golden Rules of Entrepreneurship: Lesson for SMEs

SME awards 

The government can do so much and I commend the effort of Honorable Richard Maru in driving the SME agenda forward. But real change and success is internal. Wealth is created in the mind before it is manifested outside. Success in business and investment is a matter of mind and heart and not just paperwork and more and more funding which off course is the easiest way to kill the creative financial genius of the entrepreneurs.

The fancy policies and complex politics would be wasted, if the aspiring entrepreneurs are not taught the basic principles of wealth creation. Often times, one gets blinded by status and academic qualifications and easily misses the basic facts of business and wealth creation.

Entrepreneurship simply starts with finding a solution to a problem and solving it by means of serving as many people as one can within the constraints of available resources. Entrepreneurship is the art of finding profitable solutions to problems. Every successful entrepreneur or business person has been able to identify a problem and come up with a solution to it before someone else did.

Here are the five rules for success for the aspiring entrepreneurs.

1. Find a Need and Fill It

Human needs and wants are unlimited. Therefore, the opportunities for entrepreneurship and financial success are unlimited as well. The only constraint on the business opportunities available to you are the limits you place on your own imagination.

2. Find a Problem and Solve It

Wherever there is a widespread and unsolved customer problem, there is an opportunity for you to start and build a successful business.

Once upon a time, before photocopies, the only way to type multiple copies of a letter was with carbon paper places between sheets of stationary. But a single mistake would require the typist to go through and erase the mistakes on every single copy. This was enormously clumsy and time consuming.

Then a secretary working for small company in Minneapolis began mixing flour with nail varnish in order to white out the mistake she was making in her typing. Soon, people in other offices began asking for it. The demand became so great that she quit her job and began working full-time manufacturing what she called “Liquid Paper.” A few years later, the Gillette Corporation came along and bought her out for $47 (PGK117.5)

3. Unlimited Opportunities

There are problems everywhere. Your job is to find one of these problems and solve it better than it has been solved in the past. Find a problem that everyone has and see if you can’t come up with a solution for it. Find a way to supply a product or service better, cheaper, faster, or easier. Use your imagination.

4. Focus on the Customer

The key to success in business is to focus on the customer. Become obsessed with your customer. Become fixated on your customer’s wants, needs, and desires. Think of your customer all the time. Think of what your customer is willing to pay for. Think about your customer’s problems. See yourself as if you were working for your customer. Steven Jobs of Apple never did a market research. He only asked one question and that is “If I was the customer for an apple product, how will I wish to be treated?

5. Bootstrap Your Way to Success

Once you have come up with a problem or idea, resolve to invest your time, talent, and energy instead of your money to get started. Most great personal fortunes in the world were started with an idea and with the sale of personal services.

Most great fortunes were started by people with no money, resources, or backing. They were started by individuals who came up with an idea and who then put their whole heart into producing a product or service that someone else would buy.

Ancient script has the oldest wealth creation principle that stood test of time. It says “Service to many leads to greatness”. It’s in the bible. Read it.  

Action Exercise

Look for business opportunities everywhere, develop, an entrepreneurial mind-set, and continually be open and curious about the needs not satisfied and problems not solved.

One idea is all you need to make your first million.