TIPS&TESTIMONIALS IN BUILDING YOUR CAREER WHILE IN SCHOOL!
PLANTING MONEY: How to Be an Investor & Where to Plant Your Money How to make your Personal Mission & Vision Statements Leader in-the-making: 5 Traits a Good Leader
Setting goals in life like a soccer game The CASH FLOW QUADRANT: How Do You Plan to Earn?
WORK ETHICS: The Do’s and Don’ts at the Office
The 10 Commandents of doing your Job Interview SUCCESS TESTIMONIES:
Manny V. Pangilinan Ronald Pineda Ilian Diaz ..and more! Learn from the experts of the trade.
What would happen if an airplane does not have a
detailed flight plan? Or how about soldiers going in a mission without a planned strategy? Perhaps, both situations will continue to execute themselves but eventually lead to one thing – failure. These real life examples highlight the importance of having a plan, one that will provide a structure to a person’s life starting from where he is now to where he wants to be tomorrow. Usually, people refer to the latter part of their lives as this: career. In fact, this term is so important that people spend years, even decades, in trying to build it. However, not all careers end up successful, which is why people must plan it carefully in line with his self: his values, passions and ambition. Thus, a career plan which encompasses different aspects of a person’s life is necessary for achieving success, not to mention, happiness. And the first step to jumpstart your career plan is assessing yourself. SELF-ASSESMENT: KEY TO A LIFELONG CAREER
It is very important that we know ourselves. A person can only be satisfied with his life, job and career if he truly knows his place in society and what he want to achieve. The difficulty with today’s world is that a larger emphasis is weighed upon one’s earning capacity rather than satisfaction or happiness. A CEO may be able to buy the newest BMW in the market, but is he truly happy? See, salaries and paychecks can never quantify the amount of success a person has achieved, for success must be viewed not only on social perspective but personal as well. When you choose a certain career path, you ask yourself: Do I love what I do and do I see myself in this job for a long time? If the answer is no, then jump to the next options until you find one that answers yes. People might want some things right now, yet their priorities can change in an instant. A career must be something more permanent and sustainable, growing upward rather than the contrary. Self assessment is then essential in providing a person an opportunity to map out his potential roadblocks and to avoid detours, therefore paving way to a smoother and clearer career path of success. Career magazine aims to aid the reader in discerning and assessing his capabilities, providing a guide on how to capitalize his strengths as well as his weaknesses. Targeted towards young adults who are lost as to which paths they are to bound to take, Career serves as a handy instruction manual with tips and information that will help them get started. We, Career, would like to help you readers by laying out options and paths towards self knowledge, fulfillment and above all, career development. We are here merely to guide, and not dictate; to provide but not impose. Wishing you all the best! Sincerely,
Career Contributors Team firstname.lastname@example.org Add us:
About JobStreet.com Philippines This online job portal was founded in 1997 at Malaysia. In a span of a few years, it has expanded to other Asian countries like Singapore, Philippines, Japan, Thailand and across the globe. At present, it is Southeasht Asiaâ€™s largest employment company on the internet serving over 60,000 corporate customers and 7 million jobseekers. Some of JobStreet.comâ€™s major customers are Dell, Intel, Motorola, Royal Dutch Shell and Flextonics International. Fresh graduates, corporate workers and basically anyone interested in looking up a job can register at JobStreet and avail freely of its services. Companies also benefit by recruiting potential employees through here. What are you waiting for? Update your resume and register now! Your dream job might just be one click away.
WHERE DO I START? Choosing A Destination: The Mission-Vision Statement
ion s i V l a n o s Your Per
Creating a Personal Mission and Vision statement is like choosing a vacation destination, depending on your interest and preference. Of course, you have to consider looking up a map and deciding which route to take, the mode of transportation and how long it will be to get there. But always remember that this is your journey and vacation, not anyone else’s, so you must choose a destination that you like and will make you happy.
In knowing what you want, you can express it in writing a Personal Vision Statement. As the name of the statement suggests it is when and how you see yourself. This vision of you should be set a few years into the future. People can go for 10 to 15 years or sometimes go for longer periods of time. Always remember that this vision of you will answer the question, “How do you see yourself 10 to 15 years into the future?”.
tion 1 Founda
Build on what you have. Self-knowledge and selfassessment will be the foundation for your vision of yourself. This is because it teaches you what weaknesses to improve on, what strengths to capitalize on, and what interests or hobbies to pursue. Also, try asking yourself: “What will make you happy?” The answer to this question will be the strongest block of your foundation.
2 Clarity of Thought As we all know, the future is always uncertain. Not knowing what you want will only make it more ambiguous. Of course, deciding your future requires serious thought and reflection, something you should undertake as early as possible. One technique is Drawing a picture. Try putting down everything that is important to you and makes you happy: people, achievements, status, and anything else. All these things comprise of your life’s meaning, which is what we all seek at the end of each day. From here you can deduce that clearer vision of yourself years from today. You don’t have to get too fancy with words. You can put the condiments after the meat has been placed but the number one priority in creating a vision statement is clarity. It doesn’t matter if you write down simple phrases exactly as how you first thought of them, the diction could be improved on afterwards.
3 Creativity Aside from being clear about what you want, you have to be creative. As the cliché goes, “Reach for the stars!” Always aim high when you envision yourself. Remember that your personal vision will be your guide as to how you shape your life. Therefore create the best shape for yourself as much as possible. No one would want a crooked direction or path, nor an underrated life. Since you will be spending so much effort in shaping your life, why not stretch a little more and try reaching the stars? Even if you miss them, at least you got to touch the sky! There is always the brighter side of things if you know how to look. And always envision yourself in the best scenario at any point in your life; things could always be worse but it isn’t, and that’s something to inspire you to keep on going. Keep striving and give your best in all your undertakings. No mark is ever high enough not to be hit!
4 Length You need not worry about the space you take up in writing your personal vision statement. Take your time and take your space. Remember that this statement will contain your future so it is best that you do it carefully and with much thought. Vision Statements are usually longer than the mission statements and therefore comparison between the two is not necessary. What is important is that both statements complement each other.
6 Updates As they say, the road to self-knowledge is neverending. This means that each day is an opportunity to learn more about yourself. When you update your self-knowledge, you should also update your personal vision statement. The more you learn about yourself, the more you realize how your preferences have changed through time. Try updating your personal vision statement every quarter of the year to check if what you want is still aligned with what you have written a few months back. This means that you just donâ€™t keep away your vision statement after writing it down! It must serve as a constant reminder of what, who and where you want be in the future.
sion is M l a n o s r e P r u Yo
5 Power For every brand there is a tagline. Their taglines usually sum up what the brand promises or represents, which goes the same for your personal vision statement. If possible, create a phrase that summarizes the content of your vision. It can either prompt or re-state how you see yourself in the future. The tagline will create a spark at the beginning of your statement and electrify whoever reads its. You can also place it at the end of your vision statement to end it with a bang.
ALWAYS REMEMBER! Your life will be guided by the vision you have for yourself. The decisions you make and the endeavours you pursue will be guided by the vision you have for yourself in the future. Therefore every action you make should not stray you away from your vision, but rather lead you closer to it!
Know why you want it. The reason behind your vision can be expressed through your personal mission statement. This is because a mission statement is where you can find the purpose of existence of an individual. Like your vision statement, you have to determine your own mission and align it with the former. There are no exact formulas but several guidelines in writing them will be helpful. It is only you who can determine your own purpose in life.
1 Foundation This is your mission statement. Therefore, your foundation will be based on your self-knowledge. Use your strengths, weaknesses, hobbies, interests, attitudes and other things you know about yourself. These will help you determine a purpose you want your life to follow, and only you can determine that choice.
2 Simplicity It is best to keep things clear and simple. Make it straight to the point and be precise with your choice of words. The best mission statements are those of only 3 to 5 sentences in length.
Always stay positive. Have pure and honest intentions so as not to complicate things. You can start on this by stating what you donâ€™t want to become, or try stating realities and intentions that you want to stay away from. From there, you can generate ideas on positive intentions and ultimately state a positive purpose you want your life to live by.
4 Continuity After you determine your purpose in life, follow it up with a response as to how you will achieve this purpose. Your personal mission statement will have more effect in your life if you try to make one that will guide you in your day to day actions. Create a purpose that you can live by or strive to live by each day of your life. These will guide your actions and eventually guide you closer to your vision.
Like your personal vision statement, your mission statement has to be updated as well. So long as you keep learning and discovering things about yourself, your preferences will always change. If the vision statement is updated every quarter, then the mission statement should be edited along with it. Following the mission statement is more crucial because it is on a day to day basis. Nonetheless, it can be overcome with enough patience and determination.
Your mission should always be aligned with your vision. Also, you are the only one capable of determining what purpose you want your life to have. It will always be up to you if you want to become a person for others or a person against others. Start with self-knowledge and follow through with self-improvement. Knowing why you want it will be an effective reminder to get you what you want.
Do’s and Don’ts at the Office
Wikipedia describes work ethics as a set of values based on hard work and diligence. It is a belief on the moral benefit of work and its ability to shape one’s character. This discipline also includes how one feels about his career and how he carries out his responsibilities and commitments. In short, work ethics comprise of one’s outlook, attitude and behavior towards one’s job and colleagues. One’s work ethics basically say a lot about one’s personal character, not to mention, his upbringing and morality. Workers who exhibit good work ethics are the ones who succeed in their respective careers.
Do’s Tip #1: Accept Challenges Stretch yourself a little bit more! Whenever your boss gives you a task, do everything you can to accomplish it. Exhaust all possible ways in order to achieve your goal. Do not give up easily. Not all tasks will be easy to accomplish, especially in the workplace. Some do not have concrete answers that you can google on the internet or in the library. But still do your best by trying to incorporate various methods and sources –researching, modeling, making use of case studies and journals, etc. Your effort will surely pay off. Just make sure that you are able to defend whatever it is that you will be submitting to your boss (in a reasonable and well-grounded way, of course).
Tip #2: Be open-minded
Surely, no man is an island. Being the newest person in the office can surely be daunting but do not let your fear take over you. Be friendly with your colleagues since it is inevitable that you will be working together eventually on the same projects. You might even be surprised to find your bestfriend in the office. The workplace is not merely a place for work, but also an avenue to build new lifelong friendships and networks. Be open to the culture in the office. Different companies have different ways of engaging its employees. Just treat whatever experiences you may have during your stay in the office with an open heart and mind. Remember, there is always a first time for everybody!
Key officers are able to see that these people are more responsible, reliable, efficient and capable than those with poor work ethics; thus, they are selected for better positions earlier than their colleagues. Here is a short list of what and what not to do in the office. Hopefully this list would be of help to you as you journey along your career path of choice. Here is a short list of what and what not to do in the office. Hopefully this list would be of help to you as you journey along your career path of choice. I hope that this article will give you an idea of good work ethics you can apply when you start working. Just keep these few tips in mind and I am sure that you are on your way to the road of success. Good luck!
Don’ts Tip #1: Letting your cellular phone ring endlessly
Thank God the Silent button was invented. Nothing is more annoying than having to hear a high pitched ballad of Blue Moon or a Kanye West song every few minutes or so while you are glued busy in front of your computer. What is more annoying is that the owner does not seem to notice that his ringtone is disrupting the peace and quiet in your office. Talk about sensitivity. It is considered a good work ethic to put your cellular phone into silent mode whenever you are in a common workplace. If not, you may opt for a more discreet ringtone. Perhaps, stay away from the Lady Gaga tones for a while.
Tip #2: Borrowing without permission
A familiar story behind sibling wars. Always remember to ask permission first from your colleagues before getting anything from their desk. Maybe getting a paperclip from your colleague’s desk is acceptable, but it is always better to be respectful of another’s belongings by simply letting them know– even if it is only a paperclip. Asking for permission will surely prevent future conflicts.
Do’s Tip #3: Be humble
Being a show-off will get you nowhere but the bottom of the social pyramid. Always remember to be humble of your achievements and abilities. No one likes to be around an arrogant person. And I’m sure even the best listeners won’t be too happy listening to your heroic exploits all day long. Stay humble, be sensitive, and you’ll be everybody’s darling before you know it.
Don’ts Tip #3: Your office is NOT YOUR PERSONAL HOME
“A home away from home.” There’s nothing wrong with being comfortable at the office, but keep in mind that you are not on vacation. Lazing around the office is considered a bad work ethic because you are being paid by the company to do actual work . Get enough sleep at home to resist napping in the office. Also, be as discreet as possible when yawning in public for your boss might take it for boredom and lack of passion for work. Keeping your back straight on your chair will help you maintain your concentration and even keep you away from back problems. Slouching or lying haphazardly in your chair during work hours is a big NO. Just keep in mind that your workplace is not your bedroom and you will carry on just fine.
HQ U TIP ICK S!
on Job Interviews
Thou shall update your resume
Your resume will be the major basis that your prospective employer will have in order to gauge as to whether or not you are capable for the job at hand. By: Marianne Tan Thus, it is crucial to always update your resume so Thou shall Practice thyself as to make sure that your prospective boss knows Take the time to practice your responses to your abilities and interests. Also, it does not hurt to questions which you feel may be asked duralter your resume depending on the job description. ing the interview proper. Practicing before Doing so will help make your resume stand out from the interview itself will help you soothe your the rest of the applicants. Besides, your resume denerves and thus may result to a more relaxed termines if youâ€™ll get this job interview in the first interview. This will help your prospective place. employer see the real you without pretenTake note: Your resume should follow the sions and a shaky voice. standard format and should be neat, presentable and formal. Quick tip: You may also opt to practice with a friend. You may ask him to give Thou shall evaluate thyself his feedback regarding your responses and Taking the time to evaluate yourself and being mannerisms. All of which may be of great aware of your strengths and weaknesses play a very help to you. important role in the whole job hunting process. This is because the job interviews that you will be Thou shall dress the part having will primarily consist of the HR personnel Always be in corporate attire when attending asking you to describe yourself, your abilities, your job interviews. Being in formal corporate skill set and your interests. Being able to answer attire will show your employer that you have these questions truthfully and with confidence will put much thought and effort into this interhelp you land your dream job in no time. view. Make sure also that you look presentable. Check if your hair is orderly and wear Quick tip: While you are in the process of make-up if you must. Remember, first imevaluating yourself, also try to recall some of your pressions last! personal experiences wherein your strengths/ abilities were highlighted or your weaknesses/ Thou shall be early, and vulnerabilities were put to the test.
Thou shall do background check
You should do some background research on your company of choice for a number of reasons. First, it is important to see before sending in your application as to whether or not you have a similar vision/ mission statement with that of the company. Working in a company that has a different set of principles as you do will not be as fulfilling as you want your job to be. Second, the interviewer will most probably ask a question or two regarding their company and its activities. Being able to answer these questions correctly will show your employer that you are very interested in this given opportunity. This may prove to be of help in getting you closer to your dream job.
Try to arrive at least fifteen minutes before your interview. This will give you enough time to settle down, organize your thoughts and rehearse your spiels. Also, being early will show your employer that you are willing to put in your time and effort into this job. Remember: First impressions are important! They may be all youâ€™ve got. Thus, it is crucial to be on time during your interview. Donâ€™t risk being late or you just might lose your chance at your dream job over it.
Thou shall be engaging
Thou shall pay attention
Thou shall ask questions
During the interview, try to be as calm as possible so as to let your real self show to the interviewer. Always remember to maintain eye contact with the interviewer which is a good form of communication. Always respond to his statements may it be through verbal or body language. This will make your interviewer feel that you understand whatever he is saying and that there is a connection between the two of you. Smiling wouldnâ€™t hurt either. Aside from trying to be engaging during your interview, it is also very important to really listen to the interviewer. Do not just smile and nod your way through the interview because chances are, the interviewer will sneak in questions that will test as to whether or not you were paying attention to what he was saying all throughout. Also, pay attention as to what you say to the interviewer. Defend whatever that comes out of your mouth with eloquence and wit. Do not hesitate to ask questions regarding the job at hand and the company itself. Just be a little careful though when asking questions. Be curious enough to let them know that you are interested in them but do not be so enthusiastic and desperate that you ask senseless questions or seem like a kid babbling uncontrollably. Caution: Avoid asking questions regarding the compensation and job benefits. You may air your concerns regarding these issues when you finally get the job.
Thou shall follow up
It is proper to send a thank you note to your interviewer a few days after your interview. A simple thank you note expressing your gratitude for their time and reiterating your interest on their company will do. I hope that these tips will help you in landing your dream job! Good luck to all of you, jobseekers! Do not give up easily. Just believe in yourself and learn how to persevere. All the best!
Leader in-the-making I am quite sure most people want to be a leader rather than being the follower; however, not everyone is capable of being a leader. It takes something more to be a leader than just the position. Let me first define what a leader means and what leadership is. There are a couple of definitions presented over the internet which can help us grasp and better understand what it means to be a leader. According to Princeton University database for English, they first define leadership as the “activity of leading”. It is important for us to remember that leading is something you do. It is not just a position you hold, but an activity. Your position may require you to lead, but it is possible to hold a leadership position without actually leading. Secondly, they define leadership as the “ability to lead”. This reminds us that not everyone can become a leader. You must acquire some special set of skills to become a leader. Leadership then requires you to do something as well as possess the right skills to actually lead.
Kouzes and Posner’s
According to Wikipedia, leadership is described as a “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.” Wikipedia’s definition touches on the social influence perspective. It tells us the importance of influencing others. Telling people what to do is not enough; your social influence determines your capability to actually lead. Having a plan is not enough unless you have people willing to help you out in the execution of that plan. Finally, Princeton defines a leader as “a person who rules or guides or inspires others”. You can either lead from a place of power (i.e., the boss who can fire an employee anytime) or you can lead from a place of inspiration (i.e., where people do what you ask because they believe in you and your mission). Often, people are puzzled whether leaders are made or born; but a true leader ignores such issues and concentrates on improving his leadership qualities necessary for his success and the success of his followers.
5 Leadership Traits
According to this theory, increasing your skill in portraying these five qualities will make people want to follow you more. The less time you spend on influencing others, the more time you have to spend refining where you want to go and how to get to the destination.
People want to follow an honest leader. Who doesn’t? When you assume a leadership position, you need to accept that your credibility to people is flawed. It is your duty to make them believe that you are an honest individual and leader. Sometimes, you really have to go out of your way to display honesty. One instance would be owning up to a mistake. Much of a leader’s job is to try new things and improve on the ideas that do not work. However, many leaders want to avoid failure to the extent that they do not admit their own shortcomings. But people value a leader who is honest even when it means admitting to a mistake. People will trust someone who displays honesty and even let themselves be influenced by such a person. Honesty and trust are two of the major values embedded between the relationship of a leader and his followers.
The whole point of leadership is to figure out where to go from where you are now. It is always a matter of going forward and being a step ahead. When people do not consider their leaders as forward-looking, that leader is usually suffering from one of two possibilities: the leader does not have a forwardlooking vision or the leader is unwilling or scared to share the vision with others. People need to know that a leader has a strong vision for the future and a strong plan for going forward. Also, the leader must communicate carefully this vision to his team so that the people are headed towards that same goal.
For a leader to demonstrate competency, it is not enough to just avoid displaying incompetency. Some will assume you are competent because of your position but most will have to see for themselves. When people under your leadership look at some action you have taken and think, “that just goes to show why he is the one in charge”, you are demonstrating competency. It is not enough for a leader to be competent, they must demonstrate competency in a way that people notice. This must be balanced because there will also be a danger of drawing too much attention to yourself in a way that makes the leader seem arrogant. We would not want that in a leader, do we?
Being able to inspire people is not an easy task. People want to be inspired. Being inspiring is usually just a matter of proper communication combined with passion. In short, it means telling the people how you can change the world. Learning to be inspiring is not easy, especially for individuals lacking in charisma. It can be learned. Look for ways to passionately express your vision. One example of inspiration was when Steve Jobs recruited the CEO of Pepsi by telling him, “Do you want to sell sugar water for the rest of your life or do you want to change the world?” Being inspiring means showing people the bigger picture and helping them go beyond the narrow focus and understand how they fit into the big picture. A technique to develop your ability to inspire is by telling stories. Stories that communicate on an emotional level help communicate deeper than words and leave an impact much stronger than anything you can achieve by simply stating facts. Try it and see the difference!
Unlike the other traits that can be developed easier, intelligence is something more difficult to attain. Increasing intelligence is a longer process which needs time and dedication, not to mention, practice. Developing intelligence is a lifestyle choice. You need to commit to continual learning both by books and in practice. One of the greatest signs of intelligent people is humility. They know for a fact that, the greater your education, the greater your understanding of how little we really understand. You can demonstrate your intelligence by leading people towards understanding and sharing your knowledge. Your intention must be to help others rather than boast of your intelligence. One of the best ways to exhibit intelligence is by asking questions. Learning from the people you lead by asking intelligent and well thought of questions will enhance your intelligence credibility than just about anything.
“It’s not how far you take them, But how you bring them home.”
Goal Setting and Career Planning
A SOCCER GAME The first step in planning your career is to be able to set goals for yourself. Why is this important? Because the goals you set for yourself will always be there to guide you in the decisions you make and in the endeavours you pursue. In fact, goal-setting is like playing soccer, it requires a desire to win and an amount of effort and stamina to get it.
Set the ball where it should be. Setting the goals you want to accomplish in life will give the future more clarity and direction. We all know how vague the future can be, but sometimes it can be all about perception. It is up to you how you really want to see it and no one else’s. When you set your goals in life, it is you making a choice and setting the ball on the ground where you think it should hit the goal. But of course, you need to know what you want first. This is the most crucial step in planning your career and ultimately directing your life. People may think they know what they want but when asked about it, they reply in vague or confused statements. People may say “I want to be rich” or “I want to be successful”, but what does rich and successful mean exactly? How rich do they want to be? What is the purpose behind achieving such a status in life? The most important question in challenging or examining these statements would be – “Will it make you happy?” Take a few steps back to see the bigger picture. It is not enough that you know what you want. You also have to know why you want them. Try writing down the reasons alongside every goal. This is because you want to know what fulfils you as a person and what gives meaning to your life. Goals also have to be set in a long-term basis, serving as a guideline throughout the latter part of a person’s life.
In the midst of it all, you must ask yourself: “How would I feel if I achieved this goal? How would I feel shaping my life this way?” The goals you set for yourself and the sense of fulfilment should always come along side each other. Before kicking the ball, take a few steps back and a look around you, why is getting the ball into the net so important to you – is it because of the team? Because you want to make Dad proud? Only you would know the reasons why.
SCORE The next step that should be made after the goals have been set is the commitment to make them reality. A goal will not become reality if there is no commitment to achieving it. Knowing which direction to take is important, but it will be useless if you don’t actually take the step forward and kick. In life, we don’t hit all the goals we set, but definitely, enough determination and practice will let us get some balls inside the goal and that’s when we shout, SCORE! KNOW WHAT YOU WANT AND WHY YOU WANT IT. AND MOST OF ALL, MAKE IT HAPPEN!
HOW D O YOU P LA
THE CASH FLOW QUADRANT By Robert Kiyosaki
N TO EA RN?
What is it?
The Cash Flow Quadrant shows the different ways of how income or money is earned. The left hand side of the quadrant is for the employed or the people who depend on their paycheck and for the self-employed, while the right hand side belongs to the people who earn their cash through their businesses or investments.
The Differences between E/S/I/B Employed A person hired to provide services to a company/ organization on a regular basis in exchange for compensation. Their lifestyle revolves around the need forjobsecurity, thus they avoid risk and see no need for education in tools of finance.
Their lifestyle revolves around the need for selfindependence, thus their income is independent from others. Instead, their income is dependent on how much they are working. Consequently, finding a good work is hard for them since they have a high standard.
Business Owner Their lifestyle revolves around leadership. They recognize their short-comings to perform well in every task, so they sharpen their ability to find and cultivate talented people to work for them. To be successful, they require having ownership or control over a system and the ability to lead their employees.Similar to the self-employed, they are their own boss, but unlike them, the business owner does not need to show up for work. Instead, he can hire a manager to manage his business.
Their lifestyle revolves around management. They are skilled in managing their own and even othersâ€™ money to work for them. As investors, they enjoy huge amounts of tax advantage, thus at least 70% of their earnings come from investments while the rest are from their wages.
CHOOSING A QUADRANT The Attraction to a Quadrant The matter of which quadrant we choose to earn our income in does not depend on what the school taught us. Instead, it depends on our core values, strengths, weaknesses, and interests. Choose Financial Security over Job Security The left hand side of the cash flow quadrant offers job security, while the other side offers financial security. Many of the people who choose job security over financial security struggles financially because the more money they earn, they end up paying more taxes and debt interests. The best way to avoid these taxes is to generate money through your business and investments. Instead of focusing on your income alone, you should focus on your investments as well. You need to watch over how much you keep, how hard that money works for you, and how many generations you get to keep them; this in itself is known as Financial Intelligence.
SUCCESS TESTIMONIES Manny Pangilinan Chairman, PLDT
From an executive assistant to the president of the Philippine investment Management Inc. as an employee, and working to different local and multinational companies to owning an umbrella company, PLDT. “ Success, “ he told them, “can only spring from old-fashioned values, values that are transcendent, and endure well beyond the context and circumstance of our time” First Pacific, which he founded in Hong Kong in 1981 with a crew of only six people working un a 50-square-meter office, now registers combined sales of US $5 billion yearly and employs over 60,000 workers across the Asia –Pacific region. In the corporate world, his name rings among the loudest in a country teeming with entrepreneurial executives. He has built a rocksolid reputation on the success of organizations he conceived, reinvented, or navigated through extreme economic difficulties. Business Lessons Entrepreneurial minds have flat organization (less hierarchy) Innovators and entrepreneurs are better enterprise drivers. Bureaucrats tend to drive enterprises towards double and decline. Entrepreneurs who choose to conduct business in an ethical way will, in the long run, perform better than those who do not.
What will be yours? Julie Gandionco Founder, Julie’s Bakeshop, Inc. From a financially challenged mom who worried about her children, their education and providing for their lives ahead of them “Successful entrepreneurs are often asked what the secret is to their flourishing business and careers. Everyone says hard work. And while they all agree that this is true, it is what comes together with the hard work that makes each one distinct.” Julie’s bakeshop is a success story with humble beginnings. Its first store opened in Wireless, Mandaue City on January 6, 1981. A short 6 months later, the second bakeshop opened near Aznar Coliseum, located in the suburbs of Cebu. By the time it opened its third branch in Cabreros, the entire family was ready to join the business. When asked what the secret is to the success of Julie, she smiles then grins, “Instead of saying no, ask yourself why not? Always be willing to learn. And above all, love your family.” Business Lessons The entrepreneurial mindset is never fazed by failure and difficulties. One is never too old to become an entrepreneur. If it’s your passion but not have the competence to do what is needed, you can learn it, hire one, or partner with one. But you must have the competence to succeed. If the majority is not entirely correct, then being an “entrepreneurial minority” may not be completely wrong.
Ronald Pineda President, Folded & Hung From a persevered dentist to a business owner of a well-known local brand.
Iliac Diaz Executive Director, My Shelter Foundation From a movie actor to a social entrepreneur
“Since establishing this business, I have begun to realize that a balance of structure and creativity, logic and intuition should always be achieved in decision making and in relating to my employees.”
For Diaz, however, making money and social responsibility are two sides of the same coin. A business can be both profitable and have a positive impact on people. And this is what Diaz has set out to do with his Pier One Seaman’s Dorm.
He did complete his studies, get his degree and become a dentist, but the creative side of him – the person who’d always had “a passion for passion” even during his student days – was not satisfied. He was already a dentist with a thriving practice, but for Dr. Pineda still wasn’t satisfied. He was longing for something more… That “something more” led him to establish what is now one of the most successful local clothing brand in the market, Folded and Hung.
The two-story house with a floor area of 55 square meters costs only about 150,000 pesos to build. A similar structure made of cement and steel would cost twice the amount. Diaz is hoping that his idea of houses made of recycled natural materials will be the future of housing in the country.
Business Lessons Entrepreneurs find time for things they want to do. Anyone who says they have no time is really saying I do not want to do it. Applying creativity to meet market needs is a trait of entrepreneurs. Passion that has market relevance is a winning formula for success. Failures test the adversity quotient of entrepreneurs. Entrepreneurs have high adversity quotients. It’s not about failing; it’s about the ability to get up fast and not making the same mistake. Entrepreneurship is about the balance between the heart for people, the mind of business and the sprit of creativity and innovation.
Former movie actor Illac Diaz may not have hit it big at the box office. As an entrepreneur, however, the 34-year-old Ateneo de Manila University graduate is improving the lives of thousands of his countrymen and at the same time changing the traditional manner of doing business in the country. Business Lessons A business can be both profitable and have a positive impact on people (social entrepreneurship). These setbacks should not discourage entrepreneurs. Call upon you high adversity quotient. True entrepreneurship builds peoples’ lives. True entrepreneurship also builds a nation.
To BUSINESS OWNERS
Key to Effective Leadership
There are a lot of keys in exercising effective leadership, but an essential one is trust. Likewise, trust can be exercised in different ways, but fundamentally, it is not about taking risks in itself. Instead, it is about your willingness to take risks. TRUST has 5 dimensions: Integrity refers to honesty and truthfulness. It is easier to allow someone to lead you when you know that you put your trust in them. Competence refers to one’s technical and interpersonal knowledge and skills. Before anyone can put their trust on a leader, they need to know that the leader is capable. Consistency refers to one’s reliability, predictability, and good judgment in dealing with situations. When a leader says something, but acts differently, they are being inconsistent. These inconsistencies will confuse others and lessen their trust on leaders. Loyalty refers to one’s willingness to protect and save face for the sake of others. An act of loyalty shows that a leader will not take advantage of others. Openness refers to how much a person is willing to share. When telling the truth, a leader must be able to tell the whole truth.
7 Important Aspects of a Business Deal 1. 2. 3. 4. 5. 6. 7.
Financial Agreement Market Conditions Management Risk Flows Cash Flows Corporate Structuring Tax Laws
The Road To Success To become successful requires a change in your viewpoint. You should not be afraid of losing money as this can become your weakness. When fear gets the best of your thinking, you will tend to be risk averse and stay either employed or self employed which can only guarantee job security. To avoid financial struggle and become successful, you must increase your risk tolerance. One bad investment is not enough to prove that investing as a whole is a wrong choice. As a business owner, two or three of your companies may fail before you can achieve one that will last. That is why you must be prepared to be emotionally neutral to winning or losing. They are a part of it and you cannot always be experiencing wins. In those moments when you are experiencing or about to experience lost, you must know when to quit. Do not be stubborn with things such as projects that need to be dumped.
From Poverty to Riches and Riches to Poverty It was mentioned in Robert Kiyosaki’s book that there was a study conducted on how people born into poverty eventually gained wealth (and vice versa), and among them were three common factors.
From Rich to Poor
From Poor to Rich
Had a short term vision
Maintained a long term vision and plan
Desired instant gratification
Believed in delayed gratification
Abused the power of compounding*
Used the power of compounding in their favor
*compounding pertains to re-investing ones income at the same rate of return to allow constant growth of the principal amount
Other Words of Advice
Find mentors. The people you are with the most indicate your future position in life. Turn disappointments into strength. Before disappointments strike you, you should be prepared to deal with them and make the most out of your experience. During these circumstances, you should have mentors standing by. Don’t mind people who say “You will fail,” “It is impossible,” or “You cannot do that.” The only time that you have failed is when you admit that you failed. No matter how much you are limited; there is always freedom within the limit. Reduce risk. You can either eliminate risk by stepping away from it or you can educate yourself about the risk. When you play a game, the risk of losing is always lessened when you are well educated about the game. Lastly, to quote Robert Kiyosaki’s Rich Dad, the only difference between a rich person and a poor person is what they do in their spare time.
IT’S UP TO YOU!
PLANTING MONEY: How to Be an Investor Investing requires both knowledge and capital. Without both, it is not wise to start investing. It is also wise to become a successful businessman before becoming a successful investor. There are seven classifications of investors which can pertain to how much knowledge and capital an investor has; the seventh being the most adept type. You cannot directly become a sixth or seventh level of investor without becoming the fifth type. The seven level types are discussed as follows.
7 Levels of Investors 1. Those who has nothing to invest. 2. The borrowers are those who exhibit typical consumer-
ist behavior. 3. The savers are those who track their finances; they are risk averse which prevents them from achieving a high return on investments (ROI). 4. There are three types of smart investors: The “I can’t be bothered” leaves their money in a retirement plan or with a financial planner who advises safe diversification The “Cynics” are influenced by their emotions and are prominently ignorant; they buy and sell at the worst times. The “Gamblers,” as their name connotes, are not the cautious type; they tend to jump the game without knowing the rules. 5. The long term investors know that investing is a need so they lay out a long term strategy. They engage in periodic investing, control their spending habits, and minimize their debt and liabilities. 6. The reason why you need to be a fifth level before the sixth is that the sophisticated investors are mature, focused, and diversified. They have gained and learned from a lot of investing experience. Their main focus is to widen their asset base, minimize the burden of tax, and create long term wealth. They do so by personally owning little or by making sure that little to nothing is found in their name, and by using a corporate shell for business transactions. 7. The capitalists make money even without owning money; instead, they make money with other people’s money, talent and time.They are adept at managing risk, and the true capitalist are able to create investments to sell in the market.
Suggested Actions to Take Before Becoming an Investor 1. 2. 3. 4. 5.
Attend financial seminars and classes. Practice engaging in market research in the areas where you are interested in investing. Subscribe to investment-relatednewsletters and study them. Meet with business brokers to gain knowledge on what businesses are up for sale. Attend business opportunity conventions or trade expos to gain knowledge on available franchises or business systems.
Consider Real Estate Investing and Renting Robert Kiyosaki mentioned four reasons why you should consider investing and renting out a real estate. He took into account a depressed market scenario but the following reasons can still apply in our current market: 1. Your Rent can be priced higher than mortgage.If you end up having to mortgage your real estate, chances are the rent that you will charge will be priced higherthan your mortgage payment since fair market rent tends to be more expensive. 2. Your purchase can be financed by loan.For financing your real estate purchase, the bank can let you take out a loan, but not on other forms of investment such stocks. 3. You can gain tax advantage.The profit gains from real estate transactions can be deemed tax free on your next real estate purchase. 4. You can be guaranteed a steady inflow of cash.If rent prices maintain, it ensure a steady inflow of cash.
Key Questions to Consider Before Buying Rental Real Estate
1 What is your investment’sReturn on Investment (ROI)? ROI = (Gain from Investment – Cost of Investment) Cost of Investment Simply, your ROI shows how much profit or cost is realized as a result of your investment.
2 Does the investment fit with your long term investment strategy?
What is your investment’svacancy factor?
Vacancy Factor = Total Potential Gross Rental Income Lost Rental Income Due to Vacancy
3 Simply, your vacancy factor represents the
percentage of gross rental income that you’ll lose due to unit or rental space vacancy)?
4 What is your investment’scapitalization rate? Capitalization Rate = Net Operating Income (or the Net Rentals you realized) Cost of Real Estate (or its current market value) Above is the basic formula for calculating capitalization rate. Simply, your capitalization rate determines the current value of the property based on income.
5 What is the cost of managing the real estate? 6 What is the estimated rate of repairs? 7 What is your investment’s burn rate?
Simply, your burn rate represents how much time it will take before your negative cash flow (or your purchase) reaches a positive cash flow due to rental income.