| Teaching Notes & Study Guide | ||
| Key Ideas.
Key Idea #1 . Reinvesting retained earnings and wise use of credit will increase profits. Arlyta and Jim are like millions of small business owners in this country -- conservative on one hand, but full of dreams on the other. Their dreams do not include exotic cars, expensive clothes and houses. Instead, Arlyta and Jim want to replenish the diminishing supply of certain species of birds. They take little out of their business because they want to use those pre-tax dollars to build more cages, buy more land, and hire more people to hand feed baby birds. You think back: According to Terri Dial from Wells Fargo Bank, what are the differences between a loan and a line of credit? Answer:
A loan is a specific amount, plus
interest, which is paid back to the bank usually in monthly installments. A
line of credit is a specific amount of money which can be used as you need it
and paid back as you can. Interest is figured on the amount of money used and
the length of time in use. However, once repaid, the money can be borrowed
again. The amount of money a bank is willing to loan you as a line of credit
will probably be less than they will loan you as a traditional
loan. Key Idea #2 . Don't depend on your old products for future profits. As a school teacher and part-time business owner, Arlyta earned money breeding horses. As this business became more competitive and less profitable, she replaced horses with birds. In the bird business, she discovered emus, which she believes will be the new "meat" of the 21st century. She was one of the first farms to breed emus commercially, and the industry has grown to the point where we soon will see emu meat in grocery stores. Her emu business made so much money this year that she bought a farm in Oregon with the profits. However, Jim's invention of the metal nest box is the key to their future. Because raising animals is very labor intensive and also very physical, Arlyta wants the metal nest boxes and cages to replace the live animal business as she and Jim get older. Today they are the largest manufacturer of metal nest boxes in the world so it looks like they're on their way. What do you think? What keeps a business owner from developing new products? Answer: Lack of
vision, arrogance, fear of change, unwilling to learn about new ideas, lack of
interest in growth. Key Idea #3 . Happiness is in the work itself. Don't start a business to make money, start a business so you can spend your time doing what you want to do. Arlyta and Jim love animals and derive great pleasure from raising birds for their individual customers and for countries trying to replenish their forests with endangered species. What do you think? How can you discover what you love to do? Answer: Think about your hobbies, things you enjoyed doing as a child, and the people you admire. Interview people in different fields, take courses in different subjects, go to the library and read about different careers, and/or take some tests to determine your aptitudes. Business and life are seamless to most of us. Forget trying to live a balanced life as defined by people who have a job. Small business owners live full lives and by choice we work most all of the time. Nothing great was ever accomplished with an 8-5 schedule. Charlie Woo is on his cell phone during his one hour commute from home to office. Most social activities to Linda Benjamin turn into an opportunity to acquire a new client Joseph Johnson is 96 years old and still drives himself to his office everyday as does 86 year old Ebby Halliday. Both are way past rich. They go to work because they love what they do. Find what you love. Do it with vigor. Do it for 50 years or more and you'll not only accumulate wealth, you'll find the fountain of youth. |
||