Friday, November 25, 2011

Leverage 2.0 - How will you leverage ?

How will you use the power of leverage ?

LEVERAGE 1.0 : I have $1 and I know how to earn $2 from it.  But earning $2 is not interesting to me.  So I found a way to borrow $30 to do it.



My debt ratio is 30:1

Supposedly after it is done, I earn $60, pay back the $30 and $5 interests/fees.  I could have earned $25 instead of $2.  This is the power of leverage, amplify my earnings.

But when things go south, I haven't earned the $60 yet but I have already owed someone $35.  I just needed more time and I CAN get more time by just paying more interest/fee.  This time its another $8.  So I will need to pay back $43 but if I could earn the $60, I still have a profit of $17.  Not as good as $25 but still better than $2.

Just in case my $60 still hasn't come in yet, I could extend my time again by paying another $10 interest/fee.  By then my potential profit is $7, much worse than $25 or $17, but still better than $2.

However eventually the interests add up so much that I don't get any profit even if I get my $60.  So it is NOT exciting again.
time            loan    interest  potential earning
1st round : $30 +    $5         $25
2nd round : $35 +   $8         $17
3rd round : $43 +  $10          $7
4th round : $53 +  $15         -$8
5th round : $68
What happened above is considered a 'traditional' scenario.  I thought I could earn $2 from $1 but I was wrong.   I use leverage to amplify my earnings, however after 5 rounds of trying I still fail and I ended up amplifying my lost!  So I have to pay $68 tuition fee to learn a lesson, both on my business skill and also on the power of double edge leverage.

LEVERAGE 2.0 : What could also happen is that when I first get my $30.  I put $15 aside.  So it would look as if I have $15 and I have borrow $30, although my $15 is actually from the $30.  So my debt ratio is only $30 : $15 or 2:1.

When I realize I couldn't get my earning in the first round, I could borrow another $60 because my debt ratio is low.  Then I pay the earlier loan and interest ( $60 - $35 ) so I still have an extra of $25 to do more business.

I can continue borrow more and more to cover my previous loan and yet I have more money to do more businesses.

time            loan   ratio  interest  buyStock  potential earning
1st round  :  $30   2:1    $5          $15              $10
2nd round :  $60   4:1    $9          $25              $26
3rd round :  $120  8:1   $17         $51              $60
4th round :  $240 16:1  $33          $103           $130

As soon as I hit my debt ratio limit, I can set aside some money as if it is my capital/earning like how I did the first time.  Says I add another $15 to make my capital to $30.  Borrowing $240 is only a debt ratio of 8:1.  This can continue indefinitely.

With this method,

  • it appears as if I pay off my loan on time, every time. = good paymaster
  • I gets lower interest because of my good records and higher loan amount
  • I always have some extra money even before my real earning comes in = strong cash flow
  • my potential earning actually increase every time as I keep turning = good strategy
  • as long as I eventually realize one earning , I offset ALL my previous risks and I still make a REAL profit.

Don't get me wrong.  Although many people did the above illegally with the wrong methods.  But there are actually perfectly legal and legitimate ways.  As a matter of fact, almost ALL big businesses or even governments are doing exactly above.

As you may have observed, the risk is much higher now.  By the 4th round, I owe $273 instead of just $68 comparing to the earlier traditional method.  But with all the great benefits mentioned above (better strategy, stronger cash flow etc), this increased risk could still be justifiable.

Things still haven't really gone wrong yet with above creative strategy assuming it was done legally.

Things go wrong when

  • I didn't really know how to earn $2 from $1 = it was a bluff and people found out
  • I didn't really try hard at all to realize any earning 
  • I didn't use the extra cash flow to grow the business
  • I use the extra cash flow for new house, cars etc. = corruption
So the 'finance system' has opened a whole new world to us but at the end it is 'ourselves' who collapse it.  Don't blame the system, blame the greed and ignorance within ourselves who are playing with the power of leverage for the wrong reasons.

How will you use the power of leverage ?

Friday, November 18, 2011

Google Apps highlights – 11/18/2011

Cross-posted from the Official Google Blog

This is part of a regular series of Google Apps updates that we post every couple of weeks. Look for the label “Google Apps highlights" and subscribe to the series. - Ed.


The last few weeks have brought a fresh new look in Gmail, more mobile access options and simpler meeting scheduling tools. Millions of organizations using Google Apps can now use Google+ on their business and university accounts, and we launched a couple Apps-related Google+ Pages ourselves.

Gmail’s new look
Back in July we previewed Gmail’s new look, and a couple weeks ago we started letting people switch to the new design with one click. The refreshed interface makes it easier to follow conversations and spot the sender with profile pictures for each message. The new look also supports dynamic screen densities, so Gmail displays properly whether you’re viewing on a large desktop monitor or a smaller mobile screen. We also added a selection of beautiful HD themes to the existing gallery. Finally, we made it easier to perform advanced email searches using a panel of powerful search options that reveals with a single click.



Gmail app for iOS devices
This month we introduced the Gmail app for the iPhone, iPad and iPod touch, complete with mobile alerts for new mail, a responsive touch screen interface and Gmail mainstays like fast search, conversation view and address auto-complete.




Suggested meeting times in Google Calendar
We’ve heard how frustrating it can be to spend 15 minutes finding a good time for people to convene for a 30 minute meeting, so we made it easier to find a good meeting time in Google Calendar. The suggested times feature automatically reviews the availability of meeting invitees, and proposes event times that work for the whole group.




Google+ for organizations using Google Apps
Businesses, schools and organizations with Google Apps can now use Google+. Employees and students can create profiles, +1 things they like on the web, share interesting content with their circles and have live multi-person video chats with classmates, colleagues and friends. Organizations can also create their Google+ Pages—an organization’s identity on Google+ for customers, students or fans. We’re using Google+ Pages ourselves, so take a look at the Gmail and Google Enterprise pages, and circle us if you’d like to stay in the loop.

24x7 telephone support and improved mobile device management
This week, we introduced a couple other new benefits for Google Apps customers. Organizations of all sizes around the world can now call our support hotline at any time for all core service issue. Also new this week, we improved our mobile device management capabilities with an interface for administrators to view and deny mobile devices connecting to Google Apps, granular mobile policy controls, and the ability to visualize mobile usage trends across the organization.




Who’s gone Google?
Organizations large and small continue to amass around Google Apps. We’re thrilled to welcome a whole host of new customers including the Trinity Mirror Group (Britain’s largest newspaper publisher), startups such as JobFlo and UserTesting, organizations including the U.S. Holocaust Memorial Museum, and colleges like the University of Michigan and UT Austin. Welcome to all!

Monday, November 7, 2011

Get closer to your customers with Google+

(Cross-posted on the Inside AdWords blog.)

Editorial note: Many of you have already verified your Place page via Google Places for business. We encourage you to continue maintaining the information in your Google Places account to help ensure that potential customers can find accurate information about your business on Google Maps and local search. You may also want to supplement your Google Places account with a Google+ Page for your business, which provides you with additional ways to engage and directly interact with customers using Google+. Currently, however, Google Places accounts and Google+ Pages must be managed separately. 

Since the initial launch of Google+ just a few months ago, we’ve welcomed over 40 million people and introduced more than 100 new features. For all these people, one important part is still missing - your business.

We want to help you make the same kinds of lasting connections with your customers online the way you can in real life. That’s why we are introducing Google+ Your Business, a collection of tools and products to help you get closer to your customers. At the heart of this is Google+ Pages, your business’s identity on Google+.



Google+ Pages: Have real conversations with the right people

To get your business on Google+, you first need to create a Google+ Page. On your page, you can post updates and news about your business, engage in conversations with your customers, send tailored messages to specific groups of people, and see how many +1’s you have across the web. Here are a few features of Google+ Pages that we think will help you build relationships:


Google+ Pages are at the heart of Google+ for Business

Hangouts

Sometimes you might want to chat with your customers face-to-face. For example, if you run a bookstore, you may want to invite an author to talk about her latest novel, or if you market a cosmetics line, beauty specialists might want to hold how-to sessions for makeup tips. Hangouts make this easy, by letting you have high-quality video chats with nine customers, with a single click. You can use Hangouts to get product feedback, help solve problems or simply get to know people better, all in real time.

Hangouts let you meet your customers, face to face

Circles

Circles allow you to group followers of your Page into smaller audiences. You can then share specific messages with specific groups. For example, you could create a Circle containing people who are your most loyal customers and offer them a special discount.

+1 button and Google+ badge: Inspire current customers to recommend new ones

Google+ Pages also help you deliver your great content to users in a way that’s easy to share with their friends. We introduced the +1 button as a way for your customers to recommend your business across the web - on Google search, in your ads, on sites across the web and on mobile devices. Now, your customers can +1 your Page, recommending your actual brand -- not just an individual ad or a site -- directly to their friends.

To help your customers find your page and start sharing, we have two buttons you can add to your site by visiting our Google+ badge configuration tool:

The Google+ icon is a small icon that directly links to your Page.



In the coming days, we’re introducing the Google+ badge, which lets people add your page to their circles, without leaving your site, to start getting updates from your business via Google+.



Make your +1’s count, improving the performance of your ads


Coming soon, we will also make it possible to link your Page to your AdWords campaigns for your site, so that all your +1s -- from your Page, your website, ads and search results -- will get tallied together and appear as a single total.
Your +1’s will be shown with your brand wherever it appears, including search, ads, Google+ and your website

Consumers will be able to see all the recommendations your business has received, whether they are looking at an ad, a search result or your page, meaning your +1’s will reach not only the 40 million users of Google+, but all the people who come to Google every day. In the coming days. you'll be able to link your page to your AdWords campaigns by following the instructions in the AdWords Help Center.

Or, if you're using AdWords Express from your Google Places account, you can link your ads to your Google+ Page by simply selecting the option to direct viewers of your ad to your Google+ Page, and entering the Google+ Page URL in the appropriate field.



You can link your Google+ Page to your AdWords account with Social Extensions. Social Extensions are available in the ad extensions tab in your AdWords account.

Bringing Google+ to the rest of Google

Our ultimate vision for Google+ is to transform the overall Google experience-- weaving identity and sharing into all of our products. Beginning today, we’re rolling out a new experimental feature, Direct Connect -- an easy way for your customers to find your Google+ Page on Google search. For eligible pages, when someone searches for your business with the ‘+’ sign before it Direct Connect will send them directly to your page. For example, try searching for ‘+YouTube’ on Google. Users will also be prompted to automatically add Pages they find through Direct Connect to their circles. Direct Connect will not work for everyone.
Direct Connect suggestions start populating as you type on Google.com

Just the beginning

We wanted to help you get your business on Google+ as soon as possible, so we’re opening the field trial for Google+ Pages to everyone today. Creating a Google+ Page only takes a few minutes. To get started, you’ll need a personal Google+ profile. If you don’t have a Google account, it’s very quick and easy to join. And if you are looking for inspiration, check out some of the companies that are already starting to set up their Pages:
Partner LogosBurberryHMMacysPepsiABC NewsAmazonAssassins_CreedATTBreaking_NewsOrangeDC_ComicsDellNBC_NewsGol_Linhas_aerasKiaLOrealMarvelNYTimesPiagetShadyTmobileToyotaUniqloVirgin

To learn more about how Google+ works for your business, check out the Google+ Your Business site. We’re just getting started and have many more features in the coming weeks and months. To keep up to date on the latest news and tips, add the Google+ Your Business page to your circles. If you have ideas on how we can improve Google+ for your business, we’d love to hear them.

Posted by Dennis Troper, Product Management Director, Google+ Pages