Banking + Capital Raise and My Role

My Banking Story Pt 1..... and the future of finance in my professional career.                                                                       By Banker Burgess

Capital Raise and the principal of integrity to generate profits or income. The lost concept of funding raise and providing honest results for solid returns for group investment without being a REIT style product. A Syndication can be an alternative way for accredited investor to place small portion of capital to generate yield plus have a built-in protection against total lost by leveraging real estate holding.

A key problem with most capital sourcing is the true direction and ROI for the investor. The one thing we notice is over-promising High Returns which is difficult to predict should be defined in real terms and time frame of performance.

Plan B (Appraised Value of CRE) to protect the investor if the tenant stops payment due to income drop. The real estate will hold an intrinsic market value to protect original capital and provide an exit for cash on cash return.

 

community bank is a depository institution that is typically locally owned and operated. Community banks tend to focus on the needs of the businesses and families where the bank holds branches and offices. Lending decisions are made by people who understand the local needs of families, businesses and farmers. Employees often reside within the communities they serve.

In the United States, community banks are defined as independent banks and savings institutions holding companies with aggregate assets less than $1 billion.[1] From 1985 to 2004 they comprised 94% of all banks in the United States, but the proportion of expanding total national deposits that the Community Banks held declined from about 25.89% of all U.S. deposits in 1985 to 13.55% of the U.S. deposits in 2003

The Breakdown        
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and customers with capital surpluses.
Due to their influence within a financial system and an economy, banks are generally highly regulated in most countries. Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the Basel Accords.

The law implies rights and obligations into this relationship as follows:

  1. The bank account balance is the financial position between the bank and the customer: when the account is in credit, the bank owes the balance to the customer; when the account is overdrawn, the customer owes the balance to the bank.
  2. The bank agrees to pay the customer’s checks up to the amount standing to the credit of the customer’s account, plus any agreed overdraft limit.
  3. The bank may not pay from the customer’s account without a mandate from the customer, e.g. a check drawn by the customer.
  4. The bank agrees to promptly collect the checks deposited to the customer’s account as the customer’s agent, and to credit the proceeds to the customer’s account.
  5. The bank has a right to combine the customer’s accounts, since each account is just an aspect of the same credit relationship.
  6. The bank has a lien on checks deposited to the customer’s account, to the extent that the customer is indebted to the bank.
  7. The bank must not disclose details of transactions through the customer’s account—unless the customer consents, there is a public duty to disclose, the bank’s interests require it, or the law demands it.
  8. The bank must not close a customer’s account without reasonable notice, since checks are outstanding in the ordinary course of business for several days.
My initial inside bank position was a Community bank: locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners. 

The Moving Parts - Risk and capital

Banks face a number of risks in order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how much capital a bank is required to hold. Some of the main risks faced by banks include:

  • Credit risk: risk of loss arising from a borrower who does not make payments as promised.
  • Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).
  • Market risk: risk that the value of a portfolio, either an investment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors.
  • Operational risk: risk arising from execution of a company’s business functions.
  • Reputational risk: a type of risk related to the trustworthiness of business.
  • Macroeconomic risk: risks related to the aggregate economy the bank is operating in.

The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital. The categorization of assets and capital is highly standardized so that it can be risk weighted (see risk-weighted asset).

Now, tying it all together in this blog…. my role for this community bank was capital. The most important item to keep the wheels moving while it repairs itself from the 2008 crisis – CAPITAL.

 



					

TIPS ON PUMPING GAS

Buying Gas The Smart Way.</p>
<p>TIPS ON PUMPING GAS<br />
I don't know what you guys are paying for gasoline.... but here in California we are paying up to $3.75 to $4.10 per gallon. My line of work is in petroleum for about 31 years now, so here are some tricks to get more of your money's worth for every gallon:<br />
Here at the Kinder Morgan Pipeline where I work in San Jose , CA we deliver about 4 million gallons in a 24-hour period thru the pipeline.. One day is diesel the next day is jet fuel, and gasoline, regular and premium grades. We have 34-storage tanks here with a total capacity of 16,800,000 gallons.<br />
Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening....your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role.<br />
A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.<br />
When you're filling up do not squeeze the trigger of the nozzle to a fast mode If you look you will see that the trigger has three (3) stages: low, middle, and high. You should be pumping on low mode, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less worth for your money.<br />
One of the most important tips is to fill up when your gas tank is HALF FULL. The reason for this is the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.<br />
Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up; most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom.<br />
To have an impact, we need to reach literally millions of gas buyers. It's really simple to do.<br />
I'm sending this note to about thirty people. If each of you send it to at least ten more (30 x 10 = 300)...and those 300 send it to at least ten more (300 x 10 = 3,000) and so on, by the time the message reaches the sixth generation of people, we will have reached over THREE MILLION consumers !!!!!!! If those three million get excited and pass this on to ten friends each, then 30 million people will have been contacted!<br />
If It goes one level further, you guessed it..... THREE HUNDRED MILLION PEOPLE!!!<br />
Again, all you have to do is send this to 10 people. How long would it take?

Buying Gas The Smart Way.

TIPS ON PUMPING GAS From an associate in the Industry.

I don’t know what you guys are paying for gasoline…. but here in California we are paying up to $3.75 to $4.10 per gallon. My line of work is in petroleum for about 31 years now, so here are some tricks to get more of your money’s worth for every gallon:
Here at the Kinder Morgan Pipeline where I work in San Jose , CA we deliver about 4 million gallons in a 24-hour period thru the pipeline.. One day is diesel the next day is jet fuel, and gasoline, regular and premium grades. We have 34-storage tanks here with a total capacity of 16,800,000 gallons.
Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening….your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role.
A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.
When you’re filling up do not squeeze the trigger of the nozzle to a fast mode If you look you will see that the trigger has three (3) stages: low, middle, and high. You should be pumping on low mode, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you’re getting less worth for your money.
One of the most important tips is to fill up when your gas tank is HALF FULL. The reason for this is the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.
Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up; most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom.
To have an impact, we need to reach literally millions of gas buyers. It’s really simple to do, forward or share this information.
Facebook – LinkedIN – Twitter
Click below to send it out….

My View of Six Sigma + Educational Tools

Image

Best Year Ever 2013 – Add professional certificate to my goal setting agenda. Black Belt See below!!!

As a new member of a community bank, working on a special project to raise investment capital for the last item on a FDIC Checklist. I wanted to expand my process knowledge and achieve the Six Sigma Black Belt certification. My reasons are to enhance long-term business service and provide budget minded operations, outside support without heavy internal expenses of staffing a separate department to handle, review and manage efficiency.

Six Sigma DMAIC at Work – A Case Study…

DMAIC (duh-may-ick) is an abbreviation for a method used in Six Sigma. It stands for the 5 distinct phases it goes through: Define (the problem), Measure (aspects of the problem), Analyze (the information flow), Improve and Control (the process). Let’s use a case study example and analyze each phase…

A US-based employer which sells computers and other software and peripherals contracted two outsource companies: Alpha Company and Beta Company to do the selling. For almost two years these two outsourced companies have been in a tight competition when in comes to several metrics. The first four quarters it has always been the Alpha Company who out performed Beta Company. Beta Company though have been out performed made some adjustments and proved indeed that they can surpass the performance of Alpha Company.

Alpha Company has always owned the Close Rate metric, which means they sell more boxes than the Beta Company. Beta Company on the other hand, owned the MPC metric. This means that every unit sold is of higher revenue and margin. This gives the employer better profit. On a business standpoint, selling less units but of higher revenue and margin is better than selling more units of low revenue and sometimes no margin at all.

In one of the quarterly business reviews, the employer expressed its intention to just maintain one outsourced contract by the end of the fiscal year. With this position, the Director of Alpha Company instructed its Operation and BPI Heads to device a plan that will improve the company’s MPC. A general meeting was scheduled; trained and skilled people were called upon for a specific project. The goal of the project is to improve revenue and margin related metrics while at the same time maintain close rate performance.

The performance of the company is measured in several ways. Since the program has a sales orientation, the king of all metrics is Close Rate. This computed by dividing the total number of sales over the total number of received calls. Target for this metric is 35.00%. Some other metrics that are also important on a sales program are:

  • TMU (Total Margin per Unit) computed by dividing the total margin of units sold over total number of sold units. Target for this is $126.00
  • TRU (Total Revenue per Unit) computed by dividing the total revenue of units sold over total number of sold units. Target for this is $997.00
  • MPC (Margin per Call) computed by dividing the total number of margin per call over total number of received calls. Target for this is $21.00
  • SRU (Service Revenue per Unit) computed by dividing the total number of service revenue sold over total number of sold units. Target for this is $107.00
  • SPRU (Software and Peripherals Revenue per Unit) computed by dividing the total number of software and peripherals revenue sold over total number of sold units. Target for this is $65.00

People who are tasked to do the project have been identified. Their roles and responsibilities were clearly and completely stated. Using the DMAIC model of Six Sigma a assignment called MPC Project was created. Some details of the project are narrated below.

DEFINE PHASE

Problem statement: From FW27-FW35, Alpha Company is trending lower than Beta Company on MPC.

Problem Scope:

  • To identify drivers of low MPC performance
  • To reduce the MPC performance gap/delta between Alpha Company and Beta company

MEASURE PHASE

  • MPC trending shows that Beta Company performs better than Alpha company from FW27 – FW35 (10 consecutive weeks)
  • Average delta of Beta Company over Alpha Company is $9.33

ANALYZE PHASE

Major root causes for MPC non-performance:

  • Low TMU scores
    • Agents are not shifting-the-mix for every sales call (priority is to close more boxes than adding value to the boxes sold)
    • Low SRU and SPRU scores due to failure to position or offer services
  • Proactive discounting.
    • Inconsistencies on Close Rate performance
    • Agents have difficulties/challenges in overcoming customer’s objections when positioning a solution package, service, or any up-sell item
    • Absence of a structured callback process
  • High variation on MPC performance between top performers, mid, and bottom performers
    • Performance is not being tracked real-time
    • Bottom performers receive the most number of calls
    • Challenges on conducting trainings due to heavy call volume

IMPROVE PHASE

MPC Action Registry

  • Real-time performance management (FW37)
    • Change priority skilling based on weekly/daily performance of agents; top performers to get the calls first
    • Owned by the Operations team
  • Increasing SRU (FW37)
    • Intensified road shows
      • Owned by Sales Coaches and Operations team
      • Road shows and presentation done at the team level
      • Focus is to drive awareness of agents regarding the current state: running statistics / enterprise competition; providing solutions to properly shift-the-mix / close the sale
  • Increasing SPRU (FW38)
    • Creation of effective positioning spiels
      • Owned by Sales Coaches and Training Team
      • Provide effective positioning scripts with ready rebuttal spiels
    • Close loop monitoring process on Policies, Procedures, and Customer Handling
      • Owned by the Quality Team
      • Focus is to audit Customer Handling behaviors and to establish a CMPD (Consequence Management Process Development) on Customer Handling non-compliance
  • Improve sales skills (FW39)
    • Effective sales management and leadership workshop for Team Leaders and Coaches
      • Owned by the Training Team
      • Team Leaders and Sales Coaches underwent training on negotiation skills and objection handling
    • Monthly Full Cycle Performance Management (FCPM)
      • Owned by Operations Team
      • Changed quarterly FCPM to monthly review
      • Focus is on Bottom Quartile and Mid-rank agents. On the later part top performers were included and FCPM became progressive (monthly review fro top; bi-weekly for mid; weekly review for bottom performers)
  • Outlier Management (FW39)
    • Outlier Management on several metrics such as CR , TMU, and MPC
      • Owned by Sales Coaches
      • Focus is on mid-rank agents
  • System Mix Reporting and Up-sell Mix Reporting
    • Bi-weekly reporting which started FW40
    • Reports contain enterprise and team trending on system mix and up-sells which provided deep dive analysis on gaps on financial metrics impacting MPC, TMU, SRU, and SPRU
    • Provided recommendations to address the gaps and served as basis for contests/hypes
  • BPI (Business Process Implementations) audits on Black Friday and Cyber Monday deals
    • Focus on behaviors affecting financials
    • Provided recommendations to address opportunities
  • Other recommendations adapted by Operations
    • Scorecard improvement (computed for realistic goals)
    • Screensaver on agents PCs – reflects goals, updates, and recognizes top performers
    • Assigning stretch goals to financial metrics
    • CMPD on Customer Handling

CONTROL PHASE

  • Control Point: Applying Consequence Management to Team Leaders to reinforce audit and coaching compliance every week
  • Alpha Company was able to surpass Beta Company’s MPC performance from FW37 and FW45
  • FW37 was the start of the real-time Performance Management; Road shows; FCPM
  • FW39 was the start of Leadership Workshop on Effective Sales Management training, System Mix and Up-Sell Mix Reporting, and Outlier Management
  • FW41 Contest on MPC was launched

Since Margin per Call was the base metric of measuring margins and revenue per unit, significant increase was also observed on TMU, TRU, SRU and SPRU. Full Cycle Performance Management is still observed, priority is on bottom performers. Mentoring sessions are also conducted by top performers to their buddy bottom performer. Additional incentives are given to top performers. Agents are now confident in doing the system-mix and the up-sell mix.

As of this writing the program is still operating and delivering better scores and higher revenue for the employer.

Stock Investor – Private Placement Level

Stock Investor – Private Placement Level

For regulatory reasons, in order to view listings and place indicative bids on securities through Private Placement Memorandum, you must be an Accredited Investor or Qualified Institutional Buyer (“QIB”) (please see below for descriptions of each).  However, you do not have to be an Accredited Investor or QIB to list your assets for sale or explore other features on our platform (i.e. add private companies to your Watchlist, add people to your network of Trusted Connections, view news and publicly available data, etc.).

Accredited Investor

The term “accredited investor” is defined in Rule 501 of Regulation D of the U.S. Securities Act of 1933. The term “qualified institutional buyer” is also defined terms under the U.S. federal securities laws.

Individuals

In order to be deemed to be an Accredited Investor as an individual, you must be able to certify that:

  • You are a natural person (individual) whose own net worth, taken together with the net worth of your spouse, exceeds $1,000,000. Net worth for this purpose means total assets (excluding residence but including personal property and other assets) in excess of total liabilities. (In calculating net worth, the related amount of indebtedness secured by the primary residence up to its fair market value may also be excluded. Indebtedness secured by the residence in excess of the value of the home should be considered a liability and deducted from net worth.); or
  • You are a natural person (individual) who had an individual income in excess of $200,000 in each of the two previous years, or joint income with your spouse in excess of $300,000 in each of those years, and who reasonably expects to reach the same income level in the current year; plus
  • In addition to certifying to either or both of the two points above, you must also be able to certify that you have such knowledge and experience in financial and business matters that you are capable of evaluating the merits and risks of investing in illiquid securities.

Entities

In order for an entity to be deemed an Accredited Investor, an authorized representative of the entity must be able to certify that the entity is one of the following:

  • a bank, or any savings and loan association or other institution acting in its individual or fiduciary capacity;
  • a registered broker or dealer;
  • an insurance company;
  • an investment company or a business development company under the Investment Company Act of 1940;
  • a Small Business Investment Company licensed by the U.S. Small Business Administration;
  • any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;
  • an employee benefit plan whose investment decision is being made by a plan fiduciary, which is either a bank, savings and loan association, insurance company or registered investment adviser, or an employee benefit plan whose total assets are in excess of $5,000,000 or a self-directed employee benefit plan whose investment decisions are made solely by persons that are accredited investors;
  • a private business development company under the Investment Advisers Act of 1940;
  • either (i) an organization described in section 501(c)(3) of the Internal Revenue Code, (ii) a corporation, (iii) a Massachusetts or similar business trust, or (iv) a partnership, in each case not formed for the specific purpose of acquiring the securities offered and in each case with total assets in excess of $5,000,000;
  • an entity as to which all the equity owners are accredited investors; or
  • a trust, not formed for the specific purpose of acquiring any specific securities offered, with total assets in excess of $5,000,000 and whose purchase is directed by a sophisticated person.

Qualified Institutional Buyer

A qualified institutional buyer (“QIB”) is any of the following: (i) an insurance company, investment company, business development company, Small Business Investment Company, employee plan maintained by a State, employee benefit plan, trust fund composed of employee plans maintained by the State or employee benefit plans, business development company, 501(c)(3) not-for-profit organization, corporation, partnership, Massachusetts or similar business trust or investment adviser, each owning and investing on a discretionary basis at least $100 million of securities of unaffiliated issuers; (ii) a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934: (x) owning and investing on a discretionary basis at least $10 million of securities of unaffiliated issuers; provided that the securities constituting the whole or a part of an unsold allotment to or subscription by a dealer as a participant in a public offering shall not be deemed to be owned by such dealer or (y) acting in a riskless principal transaction on behalf of a QIB; (iv) investment company that is part of a family of investment companies that own in the aggregate at least $100 million of securities of unaffiliated issuers; (v) an entity in which all of the equity owners are QIBs; and (v) domestic or foreign bank or savings and loan association or other institution owning and investing on a discretionary basis at least $100 million in securities of unaffiliated issuers and that has an audited net worth of at least $25 million. For a complete definition of QIB, please see Rule 144A of the Securities Act of 1933.

The above information is provided for your information only.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.

Ten Steps of Book Design – Randy Ingermanson

The Importance of Design by Randy Ingermanson (Professor of Writing)

Good fiction doesn’t just happen, it is designed. You can do the design work before or after you write your novel. I’ve done it both ways and I strongly believe that doing it first is quicker and leads to a better result. Design is hard work, so it’s important to find a guiding principle early on. This article will give you a powerful metaphor to guide your design.

Our fundamental question is this: How do you design a novel?

For a number of years, I was a software architect designing large software projects. I write novels the same way I write software, using the “snowflake metaphor”. OK, what’s the snowflake metaphor? Before you go further, take a look at this cool web site.

The Snowflake FractalAt the top of the page, you’ll see a cute pattern known as a snowflake fractal. Don’t tell anyone, but this is an important mathematical object that’s been widely studied. For our purposes, it’s just a cool sketch of a snowflake. If you scroll down that same web page a little, you’ll see a box with a large triangle in it and arrows underneath. If you press the right-arrow button repeatedly, you’ll see the steps used to create the snowflake. It doesn’t look much like a snowflake at first, but after a few steps, it starts looking more and more like one, until it’s done.
 The first few steps look like this:
Snowflake Iteration 1Snowflake Iteration 2Snowflake Iteration 3Snowflake Iteration 4

I claim that that’s how you design a novel – you start small, then build stuff up until it looks like a story. Part of this is creative work, and I can’t teach you how to do that. Not here, anyway. But part of the work is just managing your creativity — getting it organized into a well-structured novel. That’s what I’d like to teach you here.

If you’re like most people, you spend a long time thinking about your novel before you ever start writing. You may do some research. You daydream about how the story’s going to work. You brainstorm. You start hearing the voices of different characters. You think about what the book’s about — the Deep Theme. This is an essential part of every book which I call “composting”. It’s an informal process and every writer does it differently. I’m going to assume that you know how to compost your story ideas and that you have already got a novel well-composted in your mind and that you’re ready to sit down and start writing that novel.

The Ten Steps of Design

But before you start writing, you need to get organized. You need to put all those wonderful ideas down on paper in a form you can use. Why? Because your memory is fallible, and your creativity has probably left a lot of holes in your story — holes you need to fill in before you start writing your novel. You need a design document. And you need to produce it using a process that doesn’t kill your desire to actually write the story. Here is my ten-step process for writing a design document. I use this process for writing my novels, and I hope it will help you.

Step 1) Take an hour and write a one-sentence summary of your novel. Something like this: “A rogue physicist travels back in time to kill the apostle Paul.” (This is the summary for my first novel, Transgression.) The sentence will serve you forever as a ten-second selling tool. This is the big picture, the analog of that big starting triangle in the snowflake picture.

When you later write your book proposal, this sentence should appear very early in the proposal. It’s the hook that will sell your book to your editor, to your committee, to the sales force, to bookstore owners, and ultimately to readers. So make the best one you can!

Some hints on what makes a good sentence:

  • Shorter is better. Try for fewer than 15 words.
  • No character names, please! Better to say “a handicapped trapeze artist” than “Jane Doe”.
  • Tie together the big picture and the personal picture. Which character has the most to lose in this story? Now tell me what he or she wants to win.
  • Read the one-line blurbs on the New York Times Bestseller list to learn how to do this. Writing a one-sentence description is an art form.

Step 2) Take another hour and expand that sentence to a full paragraph describing the story setup, major disasters, and ending of the novel. This is the analog of the second stage of the snowflake. I like to structure a story as “three disasters plus an ending”. Each of the disasters takes a quarter of the book to develop and the ending takes the final quarter. I don’t know if this is the ideal structure, it’s just my personal taste.

If you believe in the Three-Act structure, then the first disaster corresponds to the end of Act 1. The second disaster is the mid-point of Act 2. The third disaster is the end of Act 2, and forces Act 3 which wraps things up. It is OK to have the first disaster be caused by external circumstances, but I think that the second and third disasters should be caused by the protagonist’s attempts to “fix things”. Things just get worse and worse.

You can also use this paragraph in your proposal. Ideally, your paragraph will have about five sentences. One sentence to give me the backdrop and story setup. Then one sentence each for your three disasters. Then one more sentence to tell the ending. If this sounds suspiciously like back-cover copy, it’s because . . . that’s what it is and that’s where it’s going to appear someday.

Step 3) The above gives you a high-level view of your novel. Now you need something similar for the storylines of each of your characters. Characters are the most important part of any novel, and the time you invest in designing them up front will pay off ten-fold when you start writing. For each of your major characters, take an hour and write a one-page summary sheet that tells:

  • The character’s name
  • A one-sentence summary of the character’s storyline
  • The character’s motivation (what does he/she want abstractly?)
  • The character’s goal (what does he/she want concretely?)
  • The character’s conflict (what prevents him/her from reaching this goal?)
  • The character’s epiphany (what will he/she learn, how will he/she change?
  • A one-paragraph summary of the character’s storyline

An important point: You may find that you need to go back and revise your one-sentence summary and/or your one-paragraph summary. Go ahead! This is good–it means your characters are teaching you things about your story. It’s always okay at any stage of the design process to go back and revise earlier stages. In fact, it’s not just okay–it’s inevitable. And it’s good. Any revisions you make now are revisions you won’t need to make later on to a clunky 400 page manuscript.

Another important point: It doesn’t have to be perfect. The purpose of each step in the design process is to advance you to the next step. Keep your forward momentum! You can always come back later and fix it when you understand the story better. You will do this too, unless you’re a lot smarter than I am.

Step 4) By this stage, you should have a good idea of the large-scale structure of your novel, and you have only spent a day or two. Well, truthfully, you may have spent as much as a week, but it doesn’t matter. If the story is broken, you know it now, rather than after investing 500 hours in a rambling first draft. So now just keep growing the story. Take several hours and expand each sentence of your summary paragraph into a full paragraph. All but the last paragraph should end in a disaster. The final paragraph should tell how the book ends.

This is a lot of fun, and at the end of the exercise, you have a pretty decent one-page skeleton of your novel. It’s okay if you can’t get it all onto one single-spaced page. What matters is that you are growing the ideas that will go into your story. You are expanding the conflict. You should now have a synopsis suitable for a proposal, although there is a better alternative for proposals . . .

Step 5) Take a day or two and write up a one-page description of each major character and a half-page description of the other important characters. These “character synopses” should tell the story from the point of view of each character. As always, feel free to cycle back to the earlier steps and make revisions as you learn cool stuff about your characters. I usually enjoy this step the most and lately, I have been putting the resulting “character synopses” into my proposals instead of a plot-based synopsis. Editors love character synopses, because editors love character-based fiction.

Step 6) By now, you have a solid story and several story-threads, one for each character. Now take a week and expand the one-page plot synopsis of the novel to a four-page synopsis. Basically, you will again be expanding each paragraph from step (4) into a full page. This is a lot of fun, because you are figuring out the high-level logic of the story and making strategic decisions. Here, you will definitely want to cycle back and fix things in the earlier steps as you gain insight into the story and new ideas whack you in the face.

Step 7) Take another week and expand your character descriptions into full-fledged character charts detailing everything there is to know about each character. The standard stuff such as birthdate, description, history, motivation, goal, etc. Most importantly, how will this character change by the end of the novel? This is an expansion of your work in step (3), and it will teach you a lot about your characters. You will probably go back and revise steps (1-6) as your characters become “real” to you and begin making petulant demands on the story. This is good — great fiction is character-driven. Take as much time as you need to do this, because you’re just saving time downstream. When you have finished this process, (and it may take a full month of solid effort to get here), you have most of what you need to write a proposal. If you are a published novelist, then you can write a proposal now and sell your novel before you write it. If you’re not yet published, then you’ll need to write your entire novel first before you can sell it. No, that’s not fair, but life isn’t fair and the world of fiction writing is especially unfair.

Step 8) You may or may not take a hiatus here, waiting for the book to sell. At some point, you’ve got to actually write the novel. Before you do that, there are a couple of things you can do to make that traumatic first draft easier. The first thing to do is to take that four-page synopsis and make a list of all the scenes that you’ll need to turn the story into a novel. And the easiest way to make that list is . . . with a spreadsheet.

For some reason, this is scary to a lot of writers. Oh the horror. Deal with it. You learned to use a word-processor. Spreadsheets are easier. You need to make a list of scenes, and spreadsheets were invented for making lists. If you need some tutoring, buy a book. There are a thousand out there, and one of them will work for you. It should take you less than a day to learn the itty bit you need. It’ll be the most valuable day you ever spent. Do it.

Make a spreadsheet detailing the scenes that emerge from your four-page plot outline. Make just one line for each scene. In one column, list the POV character. In another (wide) column, tell what happens. If you want to get fancy, add more columns that tell you how many pages you expect to write for the scene. A spreadsheet is ideal, because you can see the whole storyline at a glance, and it’s easy to move scenes around to reorder things.

My spreadsheets usually wind up being over 100 lines long, one line for each scene of the novel. As I develop the story, I make new versions of my story spreadsheet. This is incredibly valuable for analyzing a story. It can take a week to make a good spreadsheet. When you are done, you can add a new column for chapter numbers and assign a chapter to each scene.

Step 9) (Optional. I don’t do this step anymore.) Switch back to your word processor and begin writing a narrative description of the story. Take each line of the spreadsheet and expand it to a multi-paragraph description of the scene. Put in any cool lines of dialogue you think of, and sketch out the essential conflict of that scene. If there’s no conflict, you’ll know it here and you should either add conflict or scrub the scene.

I used to write either one or two pages per chapter, and I started each chapter on a new page. Then I just printed it all out and put it in a loose-leaf notebook, so I could easily swap chapters around later or revise chapters without messing up the others. This process usually took me a week and the end result was a massive 50-page printed document that I would revise in red ink as I wrote the first draft. All my good ideas when I woke up in the morning got hand-written in the margins of this document. This, by the way, is a rather painless way of writing that dreaded detailed synopsis that all writers seem to hate. But it’s actually fun to develop, if you have done steps (1) through (8) first. When I did this step, I never showed this synopsis to anyone, least of all to an editor — it was for me alone. I liked to think of it as the prototype first draft. Imagine writing a first draft in a week! Yes, you can do it and it’s well worth the time. But I’ll be honest, I don’t feel like I need this step anymore, so I don’t do it now.

Step 10) At this point, just sit down and start pounding out the real first draft of the novel. You will be astounded at how fast the story flies out of your fingers at this stage. I have seen writers triple their fiction writing speed overnight, while producing better quality first drafts than they usually produce on a third draft.

You might think that all the creativity is chewed out of the story by this time. Well, no, not unless you overdid your analysis when you wrote your Snowflake. This is supposed to be the fun part, because there are many small-scale logic problems to work out here. How does Hero get out of that tree surrounded by alligators and rescue Heroine who’s in the burning rowboat? This is the time to figure it out! But it’s fun because you already know that the large-scale structure of the novel works. So you only have to solve a limited set of problems, and so you can write relatively fast.

This stage is incredibly fun and exciting. I have heard many fiction writers complain about how hard the first draft is. Invariably, that’s because they have no clue what’s coming next. Good grief! Life is too short to write like that! There is no reason to spend 500 hours writing a wandering first draft of your novel when you can write a solid one in 150. Counting the 100 hours it takes to do the design documents, you come out way ahead in time.

About midway through a first draft, I usually take a breather and fix all the broken parts of my design documents. Yes, the design documents are not perfect. That’s okay. The design documents are not fixed in concrete, they are a living set of documents that grows as you develop your novel. If you are doing your job right, at the end of the first draft you will laugh at what an amateurish piece of junk your original design documents were. And you’ll be thrilled at how deep your story has become.

Over the years, I’ve taught the Snowflake method to hundreds of writers at conferences. I’ve also had this article posted here on my web site for a long time, and the page has now been viewed over 2,400,000 times. I’ve heard from many, many writers. Some people love the Snowflake; some don’t. My attitude is that if it works for you, then use it. If only parts of it work for you, then use only those parts. I write my own novels using the Snowflake method. Make no mistake — it’s a fair bit of work. For a long time, I did it the hard way, using Microsoft Word to write the text and Microsoft Excel to manage the list of scenes. Unfortunately, neither of those tools knows about the structure of fiction. Finally, I realized that it would be a whole lot easier to work through the method if the tools were designed specially for fiction.

 

New Life to Live, Be Fearless

A New Life to Live

Here are some suggestions for living your life as if you only had six months left:

1) Stop caring so much what other people think. You know what Eleanor Roosevelt says: “You wouldn’t worry what others think about you when you realize how seldom they actually do.”
2) Be Fearless. But Kind!
3) Finish the book you’re writing, or the project, or the whatever it is. At least start it! Start it! Go. Now!
4) Tell everyone you love how much you love them. Every day. A hundred times a day maybe. Kiss more.
5)  Never feel guilt again.
6) Stop beating yourself up. There’s no time for it. The clock is ticking.
Say this out loud: I am taking this bull by the horns. Game on!
This is not a suggestion that you live without consequence, but rather with intention, with love, and with passion. Do what makes you thrive, what inspires you, what makes you come alive!
If we had only six months left:
  • We wouldn’t give a flying hoot what anyone thought anymore.
  • We would be totally self-expressed.
  • We would do what felt good and right in our bodies. We would sleep an extra hour and play hookie from work. We would be present.
  • Curse more. (If you feel like it.)
  • Don’t take sh*t anymore!
This exercise can easily slip into cliche. Avoid that trap. Stop what you are doing right now. Think truthfully about the answer/s.
Maybe you wouldn’t do a damn thing differently. If this is the case, can we please go out for a glass of wine tomorrow night? You know where to find me. I want to surround myself with people who are living this way. Alive and on purpose.
In the comment section below share who you would be, what you would do, how you would live. But, more importantly, go out and live. Enjoy every flippin’ moment, and laugh more (especially at yourself).
Start now….

Circle of Influence

We have heard that old saying, “You are judged by the company you keep.” That saying is important in our business life and our personal life. Who you associate with will say as much about you, your ethics, your integrity, your honesty, your core values, your beliefs, your passion and your future intentions as your actual personal behavior does. And as a business owner or business leader, you are being observed every minute of every day. Colleagues, clients, vendors, suppliers, et al are all scrutinizing, watching, listening to those people you influence. Therefore, this is a serious matter for consideration when you decide who will be in your circle of influence. Your Strategic Thinking Business Coach challenges you to stop and look around you. Who do you see? Who is there? Who is in your circle of influence?

Who Is In Your Circle of Influence What Does That Say About You
We have heard that old saying, “You are judged by the company you keep.” And that saying is important in our business life and our personal life. It is a fact that we allow ourselves to be influenced by our peers. And for that reason, parents will pay attention to who their kids have as friends; employers will do background checks on job candidates; private schools will do in-depth parental interviews prior to admission of their child; private clubs will often restrict membership to individuals nominated by current members; and why police will ask who is in a victim’s circle of influence when they investigate a crime.

The major point of all the above is this: who you associate with will say as much about you, your ethics, your integrity, your honesty, your core values, your beliefs, your passion and your future intentions as your actual personal behavior does. And as a business owner or business leader, you are being observed every minute of every day. Colleagues, clients, vendors, suppliers, et al are all scrutinizing, watching, listening to those people you influence. Therefore, this is a serious matter for consideration when you decide who will be in your circle of influence.

We know that it is difficult and sometimes very painful to break off and end relationships. This is especially true when those relationships are long-standing ones with friends, colleagues, employees, and others who have greatly influenced our life. And we need to remember that effective leaders, winners and high achievers gain their positions of stature by a very deliberate and well thought out process of selecting who they associate with in their business and personal lives.

Another part of the harsh reality you must face, as you advance up through the ranks of success and leadership is that many of your former friends and colleagues may not be making the upward journey with you. Some of them will fall and fade away for a variety of reasons. A major risk to advancement and growth is sticking with the masses that get stuck in a time warp and stop growing and maturing. By hanging around with these people you will be infected and may actually stall or destroy your own growth. So you must decide that you will either maintain stagnant and no growth relationships or you will move on to more challenging and fulfilling relationships. In fact you must make this choice since you cannot have it both ways.

Your Strategic Thinking Business Coach challenges you to stop and look around you. Who do you see? Who is there? Who is in your circle of influence? Are they losers, whiners, blamers, lawbreakers, cheaters, low achievers, liars, etc? Or are they winners, trusted friends or colleagues, high achievers, honest & law-abiding people, etc.? Now is a great time to review your circle of influence and ask yourself if the people you see there are: helping or hindering you and your efforts; are building up or demolishing the image you desire; positively or negatively impacting the achievement of your business and personal visions; and providing positive support or bringing a negative attitude to you.

Furthermore, Your Strategic Thinking Business Coach reminds you that it is your life and it is your right to choose who will be in your circle of influence. Ask yourself if you are making wise choices about your circle of influence. And be brutally honest with yourself when you answer that question. Your choices and your answers are critical to your future. Know that the people that you have in your circle of influence will speak more loudly about you than any words you can say.

Your Strategic Thinking Business Coach encourages you to fully realize the benefits of building a strong circle of influence for you and your business.

6 Obstacles – Silva Method

Silva’s Method to Manifesting.

The 6 obstacles that sabotage your manifesting efforts–and how The Silva Method helps you overcomes them.

You haven’t been holistically educated in the science of manifesting.

There are plenty of books, teachers and programs out there that teach you to awaken your inner potential and live your ideal life.

But most of them are incomplete, and don’t give you the big picture. Some talk about meditation, but completely ignore the importance of emotion-infused visualization. Some talk about manifesting, but they don’t train you to work on your belief system (we call this your inner identity). And some are so tediously time consuming, they require hours upon hours of struggle and practice every day. That’s a big no-no if you’re a busy career person or home maker.

The Silva Method’s solution:

From deep, immersive meditation exercises to effective visualization techniques to the 3-step Desire-Belief-Expectancy process, we’ve created a complete process for every aspect of manifesting and Reality Architecture. Best of all it’s practical: it only takes 5 minutes a day.

Your belief system has been sabotaged.

Since the day you were born, your parents, teachers, mentors and the media have conditioned you with a certain set of beliefs that silently influence your reality TODAY. Some of these beliefs are good, but some, like believing money is the root of all evil, or that hard work is the only path to success, are damaging.

When you’re unconscious of these beliefs, they can wreak havoc in your life. They can hold you back in your career, sabotage your relationships, mess with your self-confidence and self-image, and even damage your health. And yes, they can hold you back from ever awakening your inner Reality Architect.

The Silva Method’s solution:

Jose Silva found that it’s possible to weed out and remove negative beliefs through positive programming exercises.

These exercises use specific words, tone of voice and instructions to penetrate deep into your belief system, and eliminate the negative beliefs from within. Once these negative beliefs are replaced with positive ones,manifesting becomes that much easier.

You’ve been ignoring your subconscious mind.

You surely know that your thoughts create reality. But did you know that it’s not just your conscious, but also your subconscious thoughts that control your life?

Even people who are passionate about personal growth often make this mistake, and they end up focusing too much on logical reasoning and conscious commitments to themselves.

When you fail to program your subconscious mind, all those hidden negative beliefs and paradigms embedded in your subconscious will silently sabotage your reality—often without you even realizing it.

The Silva Method’s solution:

By guiding you into the Alpha and Theta levels of mind, The Silva Method creates a direct line to the subconscious and superconscious. And just like a hypnotist who can help you quit smoking, this connection allows you to immediately change the way their mind thinks and functions. The key here is learning to speak to the language of the subconscious through symbolism—and the result is a deeper understanding of your true self, and better control over thoughts and actions.

 You don’t have an optimized daily routine.

When you need to clean your body, you shower. But what do you do throughout the day when you need to clean your mind? When you feel unfocused in the morning, do you take the time to set your intentions? Do you meditate when you’re stressed out in the afternoon? Do you visualize just before bedtime?

We are trained to believe that stress, frustration and worry are normal human tendencies, but they’re not. True Reality Architects rarely experience these emotions, because like athletes they’ve developed a set of daily habits that train their minds to retain positive stamina all day, every day.

The Silva Method’s solution:

The common perception of personal growth and meditation is that it takes hours of focused effort every day to see even the slightest results. But through our research, we’ve found it’s possible to experience profound results in just 5 minutes a day. The solution? A set of quick yet powerful mind empowerment techniques and “zap” meditations for staying focused, energized and positive throughout the day. They take less than 5 minutes to do, which means you can easily weave them into your daily schedule and practice them even during your lunch break.

 You don’t have a strong support network.

It’s been said that the 5 people closest to you are the sum of your future success. The question is, are your friends, family and co-workers helping or holding you back? When you seek their advice, are they telling you the right things, or are they programming your subconscious with negative beliefs?

Even thought they have the best intentions, the people around you could be unknowingly hindering your progress.

The Silva Method’s solution:

Jose Silva was a firm believer in the power of collective intent: that many people focusing on a desired outcome amplifies its probability. That’s why he turned The Silva Method into a thriving global community that convenes at seminars and events throughout the year. Using the internet, over 100,000 Silva students interact daily on blogs and Facebook pages. This means you’re always able to connect with instructors and members for support and friendship, no matter where you are in the world.

 You’re moving too slow.

Every now and then, you’ll get an epiphany or a breakthrough that takes your life to the next level. Sometimes it’s an amazing business idea. Sometimes it’s realizing a personal limitation that you need to fix.

The problem is, without any guidance or intuitive knowledge, these breakthroughs often take too long to surface. Many people spend years wallowing in the same indecision, wasting time and missing out on opportunities in the process.

The Silva Method’s solution:

One of the biggest gaps holding us back from manifesting our ideal life is answers. What’s the next step to take in our careers? How should we attract that soulmate? Reality Architects have a way of speeding up the answers that come to them through deep intuition: they literally wake up in the morning with answers to their questions and challenges. The Silva Method trains you to become naturally inspired and intuitive, so you can make accurate decisions and find the right answers at exhilarating speeds.

5 Ways To Happiness

5 Rules for Happiness

By MindBodyGreen
5 Ways to Happiness
-So the first one is living in the moment.
-The second is that it’s better to be loving than to be right, and if you’re in a relationship, you know how challenging that can be.
-The third one is to be a spectator to your own thoughts, especially when you become emotional, which is almost impossible to do.
-The fourth is to be grateful for at least one thing every day.
-The last is to help others every chance you get.
Think about your daily routine….

Ten Tips – Investing in Commercial Real Estate

As a broker and looking for market niche concepts, I run across articles like this, by Alan Brymer. This breakdown in 10 Simple Categories gives basic concepts to think about, use and apply in different scenarios while developing your business.

Most real estate investors get started buying single-family houses, probably because it’s what we’re the most familiar with. But whether you’re going straight to the big time or are ready to advance from houses to larger (and more profitable) deals, here are 10 time-tested guidelines to follow that will help you have more success. Please feel free to comment on my Twitter or LinkedIn account.

Tip #1: Think Big

If buying a 5-unit apartment requires you to get commercial financing, which is more of a hassle, then why bother? I would recommend buying properties with at least 10 units. Remember that the more units you buy, the cheaper they are per unit. Also, Dave Lindahl has been quoted as saying, “It’s no harder to manage 50 units than it is 10.”

Tip #2: Take Your Time

Commercial deals take longer than single-family houses do. They take longer to purchase, renovate, and get sold. This is not necessarily a bad thing, but something to keep in mind so that you don’t get impatient or rush into a bad decision. Think of commercial deals as big bonuses or your retirement vehicle, not a way to create quick cash to pay the bills.

Tip #3: Don’t Choose Apartments By Default

There’s nothing wrong with investing in residential apartments per se. I’m just pointing out that since most investors are already comfortable with residential property, they tend to look for apartments without considering the other types of commercial property, such as office buildings, industrial, mobile home parks, land, etc. Weigh all of these property types and choose your own niche based on whatever will help you reach your unique goals, regardless of your comfort zone.

Tip #4: Be Prepared to Spend a Lot of Time at First

Fight the temptation to get discouraged if you haven’t done your first deal yet, or if you are spending more time per deal than your previous ones. Houses are so similar that it’s easy to make a cookie-cutter system for buying and selling them. When I begin looking for commercial properties, I was surprised at how long it took me in the beginning to screen deals and make offers. Just remember that there is a learning curve, like with anything else, and that things will go faster over time.

Tip #5: Learn the new formulas

If you’re buying houses, you may use certain formulas, like buying at 75% of After-Repaired Value, minus estimated repairs. Commercial property will have new and different formulas to get used to, such as Net Operating Income and Cap Rates. Learn what is considered good in your area and get familiar with them when making offers.

Tip #6: Relationships Are Even More Important

Relationships with other investors and private lenders are important when buying houses, but they are even more so when buying commercial properties. For one, properties costing a million dollars or more are probably within the financial wherewithal of most of us individually, so you probably have no choice but to get to know and work with partners. Also, many commercial properties are sold without being listing first, so the more people in your network who know what you’re looking for, the more deals you’ll find.

Tip #7: Find Good Financing In Advance

Commercial loans are a different animal than residential loans, and in some ways better. The down payments needed are usually a higher percentage than loans on single-family houses, which means you’ll have to put more down (or get your partner to put more down). However, there is often no personal liability if the deal goes south, and they are more lenient about letting you borrow the down payment money from someone else. Nevertheless, before making offers, ask around and find out who the best lenders are in your area to use when buying commercial properties, as it may make the difference between qualifying for one or not.

Tip #8: Be Prepared to Lose Due Diligence Money

After your offer is accepted, you have a period of time (just like with houses) to do your due diligence. You should get an appraisal, property inspection, and other tests and inspections required by law. The only problem is that these cost a lot more than they do for smaller deals. You might spend $5,000-10,000 on a deal, only to find out you don’t want to buy it after all. While this is always better than buying a bad deal, you should still be prepared for these kinds of expenses.

Tip #9: Partners Are Your Bridge to Wealth

As I said before, buying million-dollar properties is not something most people can qualify for on their own (in fact, getting a loan to buy a house is hard enough!) So make sure that you spend a lot of time finding private lenders or deal partners to help you out. A partner can provide the cash and/or credit needed to purchase a property, and you can compensate them by paying a fixed interest rate or a percentage of the cash flow or proceeds from the sale.

Tip #10: Know Where to Get Tough Questions Answered

Lastly, it’s imperative that you associate with experienced commercial investors who can answer questions that come up while you are evaluating properties. There’s no sense in losing a deal or buying a bad property because you didn’t understand certain environmental regulations or estimating what trash collection really costs. Know who you can ask to get fast answers when you need them, and make them your new best friends.

By following these guidelines I can’t promise instant success. However, you will have the right perspective about investing in commercial property that will help you start right and stick with it for the long haul. Good luck to you in “moving on up” from single-family houses to the big time.