Having money will not automatically make you happy.
Money should serve as a means to an end.
Money can expand possibilities.
At a certain point, your investments can be your job.
Deciding What Wealth Means To You
As you put the Catholic Action Principles to work in your career, you will become financially successful. You will have money. As always, it is important to stop and think about money. How much do you need? What is a realistic budget? How much can you save? What are your investments? When will you be able to retire? Where is the balance point between earning a living now and enjoying your life now? Financially, how can you help your parish and help other worthy charities?
Bottom Line. You want to be in control of your finances and not the other way around.
Being consumed by money, your life would be a treadmill. You would be compelled to work and work and work to earn more and more and more. Treadmills head nowhere.
Do your friends own homes and vacation homes? Do they have stock portfolios? Do they own investment real estate? Do they have retirement accounts? Do they have money saved for their children's college educations?
Most people associate with people in a similar economic bracket.
Do the same.
You should spend your time with people to whom hard work and investing aren't alien concepts. If your typical friend's idea of good living is to work hard enough work to not get fired and then to get home open a six pack and watch four hours of television, they probably will not be able to relate to your goal of becoming financially independent.
Money may bring you power but it will not automatically bring you happiness.
Money does not bring everybody security. For some it just adds to their insecurities.
First, they worried and worried about not having money.
Then, they worked as if possessed and made money.
Now, they can't stop, and are worried that they might lose the money that they've made. Some people use making money as an excuse to mask other problems. They may be very successful financially but they actually avoid living a full life, using work as their excuse.
A sensible person views money not as an end in itself but as a means to an end. In your planning, a sensible goal might be to have enough money so that pressure for more money becomes a secondary concern. Money should allow you the time and provide you with the resources to develop your potential and to spend quality time with your family.
Ultimately, you want to be in a financial position to help others. Money can give you the opportunity to accomplish worthy goals. You will have time to volunteer your services. Many non-profit organizations need the enthusiasm and business skills of successful entrepreneurs. Having accomplished your financial goals at an early age, you can live a comfortable life and still have a life that makes a social difference.
Consider joining our evangelical work. We need you. The Catholic Church needs you.
Money can also give you the opportunity to relax and develop your talents and interests. For example, let's say that you always wanted to learn to play the guitar. Now you can do it. And, you can buy the best guitar. And, you can hire the best teacher. And, you can have a lot of time to practice. And, you can spend time in Nashville and Austin. And, when you get good enough, you can make a record. And, ... who knows? Having money provides with you many pleasant options.
If you had enough of the right investments, you might not have to work at all. A knowledgeable investor, who monitors his or her investments carefully, should be able to achieve an annual return of at least 10% per year. This is especially true if most of your investments are related to your area of business expertise.
Let's say that you made your fortune owning several bookstores. You know a lot about books and bookstores. Wouldn't it be smart for you to invest based on your knowledge of books and bookstores? You could become an expert on the stocks of companies like Amazon.com or Barnes and Noble or Borders. Invest in what you know and your investment returns should be 10% or more.
Back to our example. With a 10% rate of return, a $800,000 investment would pay $80,000 to the investor each year.
John Franklin, 34, is a smart, hard-working computer analyst for a large company. John is at his desk five days a week plus he must put in overtime on Saturday in order to make a $80,000 per year income.
Alicia Evans, 36, was a smart hard working entrepreneur. Last year, she sold her five area floral shops for $800,000. Now, Alicia enjoys her own garden. She doesn't work. She doesn't have to work. She makes $80,000 a year from her investments.
Can you do what Alicia has done? If you try, maybe you can. If your sit on your hands, you definitely will not.
Take your pick.
John and Alicia were both smart and hard working but each took a different career path. Probably, John will be at his desk working hard for at least the next thirty years. Probably, Alicia will never have to work again.
The point is not that it is easy to make $300,000 or $500,000 or $800,000 from developing your own small business. The point is to keep your options in perspective. If you are very successful, these net worth numbers may be a realistic goal to be reached after a few decades of work and investment and re-investment. In other words, through entrepreneurship, your lot in life may not be a lifetime of toil.
Romano's Homestyle Pizza, Continued Source Five - He talks with his mentors
Kevin has learned that an excellent approach to learning about a business is to talk to successful people in that business.
Talk to successful people in your field and you will hear confidence. These people have their successes as a frame of reference to discuss your success.
You can expect to hear pessimism if you talk with failed people in your industry. Their failures will frame their advice to you.
This is important. Talk to the winners. Avoid the slackers and losers.
In reflection, Kevin makes a list of everyone he knows in the food services business. Tops on that list would be a meeting with Uncle Giro who owns, "Uncle Giro's" a large and popular sit-down restaurant. Uncle Giro is his sister's husband's uncle. This may be a stretch but "nothing ventured, nothing gained." It is a point of introduction.
Kevin asks the help of a reluctant Susan, his sister. Susan voices her concern, "Kevin, why would you want to bother him? Uncle Giro runs a big restaurant, not a little neighborhood pizza shop. I'm really worried that you'll embarrass us. You don't know anything about restaurants."
"Yes, Susan, that's right and I'll never know anything unless I can study and research."
The opposition that Kevin is facing is very typical of the resistance faced by entrepreneurs. Kevin's ideas sound crazy and will continue to sound crazy until he proves otherwise and success may take some time to arrive. Entrepreneurs need self-confidence and patience.
Kevin goes to Uncle Giro's restaurant and sees a big picture of Pope John Paul II on the wall. To Kevin, this is another good sign. Feeling that he's helping a family member, Uncle Giro welcomes Kevin with a big smile and handshake,
"So Kevin, tell me about this pizza shop you want to open."
"Well, I'm going to look at both new and used equipment. For my decor, I am going to try to stay simple. I'm going to have red and white checked fabric cafe curtains on the outside windows. The tables will be plywood on a black pedestal, covered with a red and white checked plastic tablecloth. On the tables will be salt, black pepper, red pepper and grated cheese shakers. Also, I'll have a small white vase with silk flowers on the table. The chairs will be inexpensive but very serviceable, plastic-covered, white metal with cushioned seats. On the white walls, I'll have an Italian flag and prints with Italian scenes. I think that I can handle the decor and I have friends that I can enlist to help me build the counters, so all told, I should be able to have a nice shop for short money."
"Good, good, good." Uncle Giro replies nodding, "Sounds like you're going to have a nice little shop. Maybe, I'll get you a nice picture of Pope Benedict for your wall. Now, I'm not kidding. Don't ever be embarrassed by your religion. It's who we are. Twenty years my pope has been up there and no complaints. People respect a person of faith. Don't forget that either. Hey, if they don't like it, they can get their lasagna and cannoli someplace else and good luck to them. I'll be anxious to see your shop. Now, other than looking these papers over, how can I help you?"
"Well, let me be direct." Kevin gets to the heart of the matter, "Uncle Giro's does a tremendous business now. But, can you tell me in a nutshell how you built this business up?"
This is an excellent question. It is common sense but common sense isn't all that common that business need customers. Kevin knows that you can have a great location. You can have a wonderful menu. You can have great food. But, if you don't have customers, you don't have a business. Kevin needs to give customers a reason to visit his shop, try his product, come back and tell others.
A successful veteran of the business, Uncle Giro's reveals his ideas,
"Kevin, here's my secret. I know my customers. I run mostly a family business. I serve good food, not great, good. And, I serve large portions and charge a fair price. You don't find anybody leaving here hungry, lots of doggie bags. But, listen to me and this is most important. I never take my customer for granted. I owe them. They don't owe me. I am really grateful for their business. I walk around. I ask them if everything is all right. I try to know as many of them by name as possible. Remember this; you owe them. They don't owe you. You don't forget this lesson and you'll make money, the same as me.
You can't hide behind the counter or like a lot of chefs in the kitchen. You don't want any obstacles between you and your customers. Get out front and meet your customers and be certain that they will have a good dining experience. You want them to come back and bring their friends."
"In other words, Uncle Giro, you're saying that the customers made Uncle Giro's and not Uncle Giro?" Kevin summarizes Uncle Giro's advice.
"Of course that's what I'm saying." Uncle Giro answers waving his hand in a broad expanse, "What's the difference between me and another restaurant? I have the repeat customers. Some of them come in two nights a week for the specials."
"I noticed in your windows that you run a lot of specials," Kevin continues his interview.
Uncle Giro emphasizes,
"Sure, that's another reason they keep coming back. Right now on Monday nights, I offer a free carafe of Chianti, costs me less than $2 a carafe. Tuesday, I have a free soft drink and a spumoni for dessert with each entry, costs me $1 per meal. Wednesday, you get all the pasta you can eat. Thursday, the kids' menu is half price. Friday and Saturday nights, I have violin and mandolin players taking requests around the room. Sunday night, I have a beautiful all-you-can eat Italian buffet with 40 items for $18.95. They're lined up around the block on Sunday. I had to hire a cop to handle the parking. And, Sunday used to be an off night."
"Could I do the same thing?" wonders Kevin.
"Yes, yes, yes." Uncle Giro taps the table. "You got to give people a reason to come to your shop. You owe them. Don't ever be afraid to give a little back. What can you do? I love my specials. One night you offer a free small pie when they buy a large pie. The next night you offer the second large pie for half price when they buy a first large pie at full price. The next night, you work in the drinks. Then, let's see..., you offer a special on your submarine sandwiches. You get the idea. Promote, promote, promote."
Uncle Giro continues,
"And, you're a young man. You have the long run ahead of you. If I were your age again and opening up, I would be hustling up and down the street, handing out flyers and shaking hands like I was a politician running for office. 'Hi, I'm Giro Mancinni. Please try my restaurant and thank you very much.' Who is doing this to sell pizza? I tell you who: nobody. You do it. You show the people in Newton that you're really interested in getting their business. You do it and I'm telling you it works."
Kevin stands to leave,
"Well, thank you very much for your help, Uncle Giro. I'd like to feel that I can keep touching base with you as I make my final plans."
Uncle Giro pats Kevin on the back,
"Yes, in twenty years, I hope you got yourself "Uncle Kevin's." Why don't you call me in a week when I have gone over these plans of yours? I'm going to have Carlo, my manager, go over them also for you."
Kevin is sincerely grateful, "Thank you. I'd appreciate all the help I can get."
"Well, for Mike and your sister Susan and you, the door to Uncle Giro's is always open." Uncle Giro makes a final point, "Oh yeah, let me mention one more very important thing. Right away, you should join our national restaurant association, the National Association of Pizza Operators."
Kevin is ready, "You're kidding. There is such an association?"
"Absolutely," Uncle Giro educates, "We've got over 4,500 members devoted to all aspects of the pizza industry. We got a big annual convention and trade show every December. The National Association of Pizza Operators is part of the National Restaurant Association. You want ideas? You want to talk to winners in the pizza industry? Then, join right now. You'll get our monthly magazine "Pizza Today" which talks about promotions, every month. Your head will be spinning with new ideas."
"Uncle Giro, this talk has been great. Thanks again and I'll call you in a week." Kevin smiles at his good fortune and says another prayer to Saint Joseph. He knows that he has taken a big step forward having made contact with another mentor, Uncle Giro.
Source Six - Scouting The Competition
As part of his final planning, Kevin scouts the eight pizza restaurants already in Newton. He takes a picture of each restaurant and writes down estimates for store size, parking, signage, decor, cleanliness, etc.
Research and more research. He can't learn enough. Pizza will be the key to Kevin's unlimited future.
Wolfgang Puck made millions from pizza. Why not Kevin?
Each night he buys a small plain cheese pizza and a large pepperoni pizza. He orders on-site so that he has time while waiting for his pizza to sit down and take some notes; types of equipment, types of customers, variety of menu, type of help, attitude of help, type of packaging, etc. He leaves with a sketch and a take-out menu. At home, he takes a picture of the pizzas and weighs them. He makes notes and as honestly as he can, appraises the quality. He starts a folder for each competitor. The next night, he returns to the same shop and orders a cheese steak submarine and an Italian grinder. He adds to his notes. He lists the ingredients and takes pictures of the sandwiches. Also, on the second night, he orders a large cheese pizza by phone and notes the time taken to deliver, the quality of the delivered pizza, the attitude of the delivery person, etc.
He continues his scouting of all the competition. Later, on each of his days off, he will watch one of the shops both at lunch and supper hours and count the customers to gauge the amount of business being done. This information, combined with the information given him by his account executive at Midland about how much inventory each shop orders, gives Kevin a very good estimate of how much business each shop is doing and what he can anticipate his shop doing. This last scouting tip was given him by a friend who works for the IRS. This is one strategy that the IRS uses to build a case against restaurant operators whom they suspect of under reporting sales.
Kevin has found his niche and he feels good. Thank you, Saint Joseph.
Now, they can't stop, and are worried that they might lose the money that they've made. Some people use making money as an excuse to mask other problems. They may be very successful financially but they actually avoid living a full life, using work as their excuse.
"Well, I'm going to look at both new and used equipment. For my decor, I am going to try to stay simple. I'm going to have red and white checked fabric cafe curtains on the outside windows. The tables will be plywood on a black pedestal, covered with a red and white checked plastic tablecloth. On the tables will be salt, black pepper, red pepper and grated cheese shakers. Also, I'll have a small white vase with silk flowers on the table. The chairs will be inexpensive but very serviceable, plastic-covered, white metal with cushioned seats. On the white walls, I'll have an Italian flag and prints with Italian scenes. I think that I can handle the decor and I have friends that I can enlist to help me build the counters, so all told, I should be able to have a nice shop for short money."
