Category Archives: Insurance Definition
The Strategy Is the Brand
The Strategy Is the Brand
About 95% of what executives in competing companies do is pretty much the same all around. This is good management. If you are CEO’ing a wireless communication services provider, you strive to put up an advanced technological infrastructure with a promising future, cool end-user phones, other devices and accessories, a great service system and competitive prices. Well, this is precisely where your competitors put their efforts as well. The 5% (give or take) that you do differently constitutes your strategy. The CEO of Southwest Airlines, the revolutionary domestic American airline, most of the time does exactly what her colleagues do. But her firm offers Ticketless travel, and serves meals in the airport during waits, and not on the plane.
Doing well what you are supposed to be doing – is a prerequisite for competing. It is definitely not a strategy. Being better – is a deserving effort, yet it is not a strategy either, especially not in the long run. How, then, are you supposed to compete? Well, you could offer your clients more than what your competition offers, for a higher price, for the same price, for a lower price, or – offer them less value for a lower price. All of these options can give you an edge, but usually not for long.
You could also offer something different than what your competition does. You can cater to a need not formerly satisfied by your category. Nokia, for example, did just that when it decided to treat cellphones as fashion accessories and later as entertainment devices. Even this approach could not be considered as an insurance policy. There are no insurance policies in the world of business. But, if it is difficult or impossible to imitate, or it is something not likely to be imitated by your competition – then you might just have created for yourself a mini-monopoly of your own. Well, this is surely an accomplishment that should not be underestimated in a competitive market.
So, what really is a strategy? By definition, a strategy is the way by which you are planning to obtain your goals. In a competitive environment, your goal is that the consumer will prefer you to your competition. That is why the strategy is, in fact, the way by which you plan to achieve an advantage over your rivals – in the eyes of your consumers. Almost always, preference can be achieved only by differentiation, by either doing something other than what your competitors are doing or by doing things in a markedly dissimilar manner.
There are three types of differentiations and only one of them constitutes a strategy (or strategic differentiation). The transient differentiation is often achieved by promotional activities, such as a big sale. The circumstantial differentiation consists of things like a historical monopoly, or some kind of personal connection between the consumer and someone in the firm, or a convenient store location etc’. However, the differentiation we want to focus on is the strategic differentiation, such that provides a long lasting, circumstance-crossing advantage.
Is differentiation absolutely necessary? In any case where the consumer must choose between options – the answer is definitely yes. Why? Because the consumer chooses between alternatives on the basis of the differences as he or she perceives. Zoom-in on that sentence for a second. Do not fall into the most common trap of all: the consumer makes choices according to his perception of differences between alternatives, and not on the basis of what he values most in a product of that kind.
Competitive strategy is always a simultaneous answer to two questions.
The first one is: in which consumer group do you identify a potential for buying your product? By ‘group’ I do not mean necessarily shared socio-economic and demographic characteristics or even a similarity in personality or life style. What I mean is that they have in common some factor, enabling you to make them an offer, which will be more attractive to them than the options they already have, or at least a refreshingly new one. The second question is: what could you offer them that would help you realize that potential?
The goal is not to reach a consensus, nor is it to be OK by everyone. Experience has taught us that the key is to make a specific group of consumers, even a small one, think that you are irreplaceable. They will act as your success engine, even amongst consumers who are not as definite in their attitudes. BMW fans do not believe that Mercedes is a bad car; it’s just that it is not a BMW. For them, Mercedes is simply incomparable to BMW. That’s how Apple fans feel about IBM.
What has all this to do with branding? A brand is the consumer’s anticipation for a unique and defined experience, or for a certain unique benefit obtainable solely through consuming/owning a specific product/service manufactured/offered by a specific company. Thus, the anticipation from a trip to Paris would be to experience a romantic vacation. The anticipation from Ikea would be “state of the art design at a reasonable price”. It is fair to say that a brand is really a brand only when there exists, among its consumers, such anticipation. If this anticipation is both exclusive and attractive, you might say that it is a strong brand. A familiar name or logo – do not suffice to make for a strong brand.
This consumer anticipation is evoked and upheld by the marketer’s consistent execution of a business concept providing the consumer with a unique benefit or with a unique/novel way to deliver a benefit. This concept is the brand strategy, its promise and its commitment to its target consumers. The “third place”, the neighborhood place you frequent in between work and home offered by Starbucks – is a brand strategy. But, wait a minute! It is also the differentiation – the competitive strategy itself! These ARE the 5% that executives do differently in order to gain an advantage. This is why the brand IS the strategy. Or more accurately, the brand strategy is the translation of the competitive strategy into a language of promises made to the consumer.
The brand’s role in the realm of marketing has changed dramatically during the past decade. Today, brand building no longer constitutes a mere manipulation of the consumer’s perceptions and desires, but it is a creation of a system that on the one-hand makes promises and arouses anticipations, while on the other-hand it delivers and realizes the promises that it makes.
Free eBook Publishing Guide – Part 1 – Why publish an eBook?
Free eBook Publishing Guide – Part 1 – Why publish an eBook?
eBook defined
Despite being around now for over twenty years, no-one has yet come up with a stable definition for the word ‘eBook’. However, one can discern some typical features:
• The item is distributed as a single file (so CD encyclopaedias are not considered to be eBooks) and can be opened as a data file in an application, rather than being launched as an executable (.exe) file
• The item is both complete & completed – i.e. neither a chapter / episode / serial nor an unfinished work in progress
• The item is familiar to readers, as obeying most or all of the standard conventions of a book (e.g. contains a table of contents, preface, index, etc. and is between 25,000 and 400,000 words in length)
The advantages of an eBook
Aside from the financial advantages for the author (which I will cover below) there are a number of intrinsic benefits to eBooks when compared to the traditional printed book:
• Readers can search the text to quickly find key information, particularly when reading for a second time
• Readers can adjust the font face and size to make the book easier to read (ever more vital for an ageing population!)
• Blind or partially-sighted readers can make further use of text-to-speech conversion software (“screen readers”)
• eBooks can be read in low light or total darkness by using the back-lighting features of PC or mobile devices
• Distribution costs are extremely low and eBook authors and publishers can respond quickly to any erratum or addendum, with more frequent, incremental editions
• eBooks are environmentally friendly. Many hundreds can be stored on a single device and paper use (through printing) is minimised or avoided altogether
• eBooks without DRM protection can be instantly copied and backed up easily
The Advantages for the Author
When writing a traditional printed book, the odds are stacked against the author making a decent living from their work! eBooks, by contrast, deliver a real return on investment for the author:
• You cannot get rejected! A traditional book may get rejected 50 or 60 times by different publishers and agents before finally being accepted – or indeed may never find a home! Many authors paper their walls with rejection letters. You won’t have to!
• You don’t have to wait! For the traditional book, it can take up to two years for the publisher to get your book to market (managing as she does a huge and inefficient supply chain of printers, shippers, wholesalers, distributors, marketers and booksellers). An eBook may take no more than 10 weeks!
• You can make a lot more money! To illustrate this, imagine a traditionally published book with a list price of £20. The Distributor and buying public share a 50% trade discount between them (£10 in this case) and the Publisher takes £9; leaving the author with a 10% royalty on the discounted “net” price (£1). For a trade paperback, this might be less (perhaps 70 pence). For an equivalent £20 eBook, you could earn 14 times as much on each copy (£14)! More on this later in the guide.
• You get your money sooner and with less surprises! On a traditional book, an author would generally get their cut up to 120 days after the actual sale, with 20% of their cash witheld as insurance against unsold books. With eBooks it varies from immediate receipt to 90 days, with no portion witheld.
• The practical advantages; eBooks can be changed or updated easily, without the need for new print runs and thrown-away old editions. They need never go out of print and can cross genres or use unusual formulas without aggravating an interfering editor! Finally, you retain complete rights to the title and agreements will be non-exclusive (so you can sell through other publishers).
Conclusions
I hope I have convinced you that the eBook option is very much worth investigation, particularly for the new author. You can avoid publisher rejection letters, get to market 12 times faster and make 14 times the income per book than you would in the traditional publishing model.
In chapter 2 of my free eBook Publishing Guide (“features of the eBook Market”), I explore the Book market itself and the different emerging publishing models therein.
Condominium and Fee Simple Ownership of Real Estate
Condominium and Fee Simple Ownership of Real Estate
Real Estate Ownership
Generally, apartment-style buildings are called condos, two-story row houses are known as town homes, and free-standing homes on small lots are referred to as garden homes. Unfortunately, this description creates some confusion about real estate ownership. Apartment, town home, and garden home describe the design or construction of certain homes. The word “condominium” does not refer to a the layout or style of a building. Condominium is a form of ownership of real estate. The form of ownership of real estate cannot be recognized by observing the building design.
Condominium Regime
The legal definition of condominium is: the absolute ownership of a unit based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners. Each unit owner of a condominium has individual title to the space inside his unit. The space is sometimes described as beginning with “the paint on the walls.” In addition, each unit owner has an undivided interest in the physical components of the condominium buildings and land.
A popular type of condominium development is the multi-story apartment. In this case, there is no land under each unit. In these developments, the condo association usually handles maintenance of the building exterior and common grounds, while the unit owners maintain the interiors of their units. A condominium association is selected to make decisions about expenditures for repairs, and to handle administrative work related to the common areas. Fees are collected from the unit owners to pay for common maintenance. The association normally holds an insurance policy covering the jointly-owned areas, while individual owners carry insurance for the interior components of their units.
Condo projects may resemble duplexes, town homes, garden homes, or residences on regular lots. In general, the creation of a condo regime allows the developer to get more density approved than would be allowed if he had done single-ownership lots. This is often the reason why the condo regime is chosen instead of a development with single ownership lots. A condominium may be built as two units of a duplex. In this case, the two owners may jointly make decisions concerning maintenance of any common areas. By setting up the units of a duplex as two condos, the owner is able to sell them to two different owners.
Each condominium has rules that are specific to the development, so no assumptions should be made about their requirements. It is important to read the condominium documents carefully before purchasing a condo. The documents specify the maintenance that is covered by the common budget. In one project, the association may handle exterior components, decks, pools, sidewalks and driveways. In another, the individual owners may be responsible for more maintenance of their units, including foundations, roofs, and exterior walls.
If you have questions about the division of labor between the common budget and the individual owners of a condominium, you can present your question to the condo board itself. The board can give you an interpretation of the rules and clarify how the issue has been handled in the past. Another possibility is to ask a real estate attorney to review the documents for you. Realtors, other unit owners, or maintenance workers are not appropriate or reliable sources for the interpretation of condo documents.
The Texas real estate contract for condominiums contains a provision requiring that the buyer be given a copy of the condo documents, with a period of time to review them. During the document-review period, the buyer may terminate the contract without penalty. In addition, a resale certificate is must be provided by the association president or manager. This document provides information on the current budgets, insurance coverage, special assessments, lawsuits and other matters that affect the association.
Fee Simple Ownership
In contrast to the condominium regime, you may own real estate by fee simple. “Fee”, which comes from the word, “fiefdom”, refers to legal rights in land, and “simple” means unconstrained. Fee simple is the most common type of ownership. It is the absolute legal title to real property, including both buildings and land.
In fee simple, there are several different possibilities with regard to your obligations of ownership:
(a) Your property may not be in a subdivision at all. In this case, your deed will not include any subdivision restrictions that control your use of the property. Be aware that there could be some deed restrictions put in place by previous owners. In addition to deed restrictions, you may be governed by city or county ordinances or zoning laws that limit your use of the property.
(b) Your property may be in a subdivision with very few restrictions, no common areas, no architectural control committee, and no mandatory dues. Usually these are older subdivisions.
(c) Your property may be in a subdivision of homes on large lots, or in a town home or garden-home community in which there is a legally created homeowners association. In this case, every homeowner is required to be a member of the association. The association may charge mandatory dues and enforce subdivision rules. A certain level of maintenance may be required of each property owner. For example, you may need association approval of exterior paint colors, fences, or additions to your home.
Like the condominium form of ownership, fee simple ownership does not prescribe how maintenance is handled or how developments are governed. For example, the owners of a town house, with fee simple ownership, may be required to fully maintain their units. Or, the owners’ association may cover painting, roofing and yard work for the owners. In subdivisions where there are single family homes on large lots, it is more common for the homeowners association to manage the common grounds, pools and parks, while the individual lot owners fully maintain their own properties.
Understand your ownership rights and obligations
Before buying into a condominium regime or purchasing a fee simple property, you should have a clear understanding of the type of ownership you will have in your property. If you are buying a condominium, it would be wise to read the condo documents carefully and understand how maintenance is divided between the individual owners and the condominium association.
If your ownership is fee simple, with individual ownership of the land, you should review the deed restrictions (if there are any) and understand the restrictions and obligations that apply to your property. In the fee simple form of ownership, there may be mandatory dues to pay for common area maintenance, or, in some cases, the dues may be used for partial maintenance of the individual properties.
If you have a question about your type of ownership or about your obligations as a homeowner, it would be wise to review the title documents with a real estate attorney before proceeding with your purchase. Ask plenty of questions! A clear understanding of your type of ownership, and of your obligations as a homeowner will result in a more satisfying real estate purchase.
Real Estate Ownership – Condominium or Fee Simple
Real Estate Ownership – Condominium or Fee Simple
Generally, apartment-style buildings are called condos, two-story row houses are known as town homes, and free-standing homes on small lots are referred to as garden homes. Unfortunately, this description creates some confusion about real estate ownership. Apartment, town home, and garden home describe the design or construction of certain homes. The word “condominium” does not refer to a the layout or style of a building. Condominium is a form of ownership of real estate. The form of ownership of real estate cannot be recognized by observing the building design.
Condominium Regime
The legal definition of condominium is: the absolute ownership of a unit based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners. Each unit owner of a condominium has individual title to the space inside his unit. The space is sometimes described as beginning with “the paint on the walls.” In addition, each unit owner has an undivided interest in the physical components of the condominium buildings and land.
A popular type of condominium development is the multi-story apartment. In this case, there is no land under each unit. In these developments, the condo association usually handles maintenance of the building exterior and common grounds, while the unit owners maintain the interiors of their units. A condominium association is selected to make decisions about expenditures for repairs, and to handle administrative work related to the common areas. Fees are collected from the unit owners to pay for common maintenance. The association normally holds an insurance policy covering the jointly-owned areas, while individual owners carry insurance for the interior components of their units.
Condo projects may resemble duplexes, town homes, garden homes, or residences on regular lots. In general, the creation of a condo regime allows the developer to get more density approved than would be allowed if he had done single-ownership lots. This is often the reason why the condo regime is chosen instead of a development with single ownership lots. A condominium may be built as two units of a duplex. In this case, the two owners may jointly make decisions concerning maintenance of any common areas. By setting up the units of a duplex as two condos, the owner is able to sell them to two different owners.
Each condominium has rules that are specific to the development, so no assumptions should be made about their requirements. It is important to read the condominium documents carefully before purchasing a condo. The documents specify the maintenance that is covered by the common budget. In one project, the association may handle exterior components, decks, pools, sidewalks and driveways. In another, the individual owners may be responsible for more maintenance of their units, including foundations, roofs, and exterior walls.
If you have questions about the division of labor between the common budget and the individual owners of a condominium, you can present your question to the condo board itself. The board can give you an interpretation of the rules and clarify how the issue has been handled in the past. Another possibility is to ask a real estate attorney to review the documents for you. Realtors, other unit owners, or maintenance workers are not appropriate or reliable sources for the interpretation of condo documents.
The Texas real estate contract for condominiums contains a provision requiring that the buyer be given a copy of the condo documents, with a period of time to review them. During the document-review period, the buyer may terminate the contract without penalty. In addition, a resale certificate is must be provided by the association president or manager. This document provides information on the current budgets, insurance coverage, special assessments, lawsuits and other matters that affect the association.
Fee Simple Ownership
In contrast to the condominium regime, you may own real estate by fee simple. “Fee”, which comes from the word, “fiefdom”, refers to legal rights in land, and “simple” means unconstrained. Fee simple is the most common type of ownership. It is the absolute legal title to real property, including both buildings and land.
In fee simple, there are several different possibilities with regard to your obligations of ownership:
(a) Your property may not be in a subdivision at all. In this case, your deed will not include any subdivision restrictions that control your use of the property. Be aware that there could be some deed restrictions put in place by previous owners. In addition to deed restrictions, you may be governed by city or county ordinances or zoning laws that limit your use of the property.
(b) Your property may be in a subdivision with very few restrictions, no common areas, no architectural control committee, and no mandatory dues. Usually these are older subdivisions.
(c) Your property may be in a subdivision of homes on large lots, or in a town home or garden-home community in which there is a legally created homeowners association. In this case, every homeowner is required to be a member of the association. The association may charge mandatory dues and enforce subdivision rules. A certain level of maintenance may be required of each property owner. For example, you may need association approval of exterior paint colors, fences, or additions to your home.
Like the condominium form of ownership, fee simple ownership does not prescribe how maintenance is handled or how developments are governed. For example, the owners of a town house, with fee simple ownership, may be required to fully maintain their units. Or, the owners’ association may cover painting, roofing and yard work for the owners. In subdivisions where there are single family homes on large lots, it is more common for the homeowners association to manage the common grounds, pools and parks, while the individual lot owners fully maintain their own properties.
Understand your ownership rights and obligations
Before buying into a condominium regime or purchasing a fee simple property, you should have a clear understanding of the type of ownership you will have in your property. If you are buying a condominium, it would be wise to read the condo documents carefully and understand how maintenance is divided between the individual owners and the condominium association.
If your ownership is fee simple, with individual ownership of the land, you should review the deed restrictions (if there are any) and understand the restrictions and obligations that apply to your property. In the fee simple form of ownership, there may be mandatory dues to pay for common area maintenance, or, in some cases, the dues may be used for partial maintenance of the individual properties.
If you have a question about your type of ownership or about your obligations as a homeowner, it would be wise to review the title documents with a real estate attorney before proceeding with your purchase. Ask plenty of questions! A clear understanding of your type of ownership, and of your obligations as a homeowner will result in a more satisfying real estate purchase.
Four Reasons to Set Group Goals Collaboratively
Four Reasons to Set Group Goals Collaboratively
One of the tasks that come with being a leader is setting goals. Goals for ourselves, to be sure, but often we need set goals for our groups/teams or the larger organization. While we may instinctively know that we should include people in the creation of goals they will be working to achieve, too often the press of time and the lure of expediency leaves leaders setting the goals, and simply sharing them with those charged with achieving them.
The Four Reasons
There are four significant reasons why we need to get others involved in creating of the group’s goals. Any one of these are reason enough to create a conversation about the goals rather than creating a PowerPoint presentation with the goals already formulated.
• To gain Agreement. There are actually two agreements you want to gain.
1. Agreement on what the goal actually is.
2. Agreement that the goal is worthwhile and beneficial.
Once you have these agreements you will increase the clarity of the goal for everyone. Goal clarity in itself has a very positive impact on ultimate goal achievement. With agreement you will increase focus on the goal as well. Take the time to create both of these agreements and you have a stronger chance of achieving the next item . . .
• To create Engagement. Notice I said engagement not buy-in. I know we all talk about wanting people to “buy-in” to our ideas and plans. And, given the choice between having people who are “bought-in” vs. people who didn’t care or disagree, I choose the former. But engagement is more than “buy-in.” When people are engaged in an idea they are committed to it. They feel ownership for it. They have thrown more than their hat into the ring, they have thrown their heart in too. Once people are engaged in the goal you can capture what comes next . . .
• To set Collective Consciousness. Have you ever noticed that after you buy a new car, you see “your” car everywhere? The reason this occurs isn’t because thousands of people followed your lead to buy the same car you did. It happens because of your Reticular Activating System. Our Reticular Activating System works as a filter helps us notice things we are focusing on or are interested in. Once people are fully engaged in a goal their subconscious mind goes to work and the Reticular Activating System helps. People will begin to see things that will be resources, methods or clues to achieving the goal. Sparks will fly between people on the team and progress may be achieved faster than could be logically expected.
• To manifest Synergy. We have people work together because we know that together we can achieve more than we can separately. This is the definition of synergy. If you prepare your goals in a vacuum and present them to the group the chance for you to achieve team synergies is virtually nil. The whole point of a group working towards a goal together is to gain synergy. If you want it, you have to let people help create the specific goals they will be directly involved in achieving.
Getting others involved in the creation of the goals is more than just a good idea. It is more than just the right thing to do. It is the most important step you can take to improve the likelihood that a goal that is set, is reached.
So when you have a goal to be achieved with the help of others, keep these four reasons in mind and make the time to create the massive benefits described here.
That time and effort is the best insurance policy you can buy to improve the chance your goals will be achieved.
How Much Should You Borrow?
How Much Should You Borrow?
There’s little doubt that we’re borrowing more and there’s also little doubt that credit is one of the great conveniences of modern life. That said, like Goldilocks you want to borrow the amount that’s just right — and no more.
So what’s the right level of debt?
The loan qualification standards used by mortgage lenders are an important guideline. You can typically get that old standby — the fixed-rate, 30 year mortgage — if no more than 28 percent of your gross monthly income goes for mortgage principal and interest, property taxes and property insurance (PITI). In addition, as much as 36 percent of your gross monthly income can go to regular monthly costs — PITI plus car payments, credit card debt, school costs, etc. In addition, because they have more liberal qualification standards, you can often borrow more with other loan programs such as FHA, VA and adjustable-rate financing.
But no matter what type of mortgage financing you consider, the real question should be not how much can you borrow, but rather how much can you borrow comfortably. In other words, financial sanity counts.
Unfortunately the term “financial sanity” is an expression without a definition. The economics that work for the Webbers plainly may not work for the Johnsons. We each have different incomes as well as different interests, expenses and preferences. Given this background one might ask: What makes financial sense for me?
The answer looks like this: If you’re living from paycheck to paycheck, if monthly costs are a burden, if savings are small or non-existent, if you do not have health insurance then it’s time to re-think debt burdens.
The richest person I ever met, someone who started with nothing and created jobs for more than 50,000 people, once offered this advice: “The key to financial success is saving, and nothing is harder than saving that first ,000. After that, it’s easy.”
In other words, it’s entirely possible to have a substantial salary and to fail the financial sanity test. The waiting rooms in every bankruptcy court are filled with people who once had big incomes and bigger debts. One day the numbers didn’t work and away went the trophy houses and the big cars.
So how do you begin the savings process?
The first step, literally, is to open a savings account. The very nice people who provide checking accounts and credit cards will also be happy to hold your savings.
The second step is to go after every nickel and dime you can find.
The economics of savings resemble gravity: Little pieces brought together in one place produce big results. Here’s an example: Imagine that you usually spend .50 per day on little things — coffee, candy or whatever. Instead, you set the money aside in an account that pays 6 percent interest. The result? After 30 years there’s almost ,000 in your account.
There are any number of strategies to save money, but let me suggest a practical approach. Look at your debts. Pick the one with the lowest balance, say a small credit card that requires monthly payments of . Save and pay it off. Then identify the next remaining debt with the smallest balance. You now have a month extra that can be applied to the second obligation. Save and pay off the second debt. Maybe with the second obligation you can save a month. After the second debt is repaid, you have an additional a month to attack the third debt.
During this process there are other steps to take. Bring lunch to work. Have one car (hard in some areas, but not impossible). Collect change at the end of the day and deposit rolls of coins every month or so. Eat out — but not often. Stay away from credit cards. Avoid late fees and maintain good credit by paying bills in full and on time.
As this process continues you’ll notice several interesting results.
First, borrowing for real estate becomes easy as debts decline and qualification scores rise.
Second, better credit results in reduced interest rates that can save you big money. Save a half percent as a result of good credit on a 0,000 mortgage and you’ll cut costs in the first year of the loan by nearly ,500.
Third, there’s no tax on “savings.”
If you have ,000 in credit card debt and auto costs each month, that money is available only after taxes are paid. To get that ,000 in cash you may have to earn ,300 or ,400, depending on your tax bracket and location. If you pay off your bills and don’t have to pay that ,000 a month, Uncle Sam does not raise your taxes and you gain the equivalent of a huge raise.
When you speak with lenders about your ability to borrow, consider that with good credit you likely can borrow as much as you need if not more. But also consider that as a matter of financial sanity you have a personal obligation to save. If you can buy a home, pay general expenses and still save 5 or 10 percent of your gross monthly income, the odds are overwhelming that borrowing will not be an undue burden now or in the future.