http://www.youtube.com/watch?v=q4j8NlHUYLs
http://www.youtube.com/watch?v=yGfJv34nhdw
http://www.youtube.com/watch?v=BTXjIaBsVuA
http://www.youtube.com/watch?v=-vHsy6nGAKU
http://www.youtube.com/watch?v=-alHic4L0fA

The basics of CASH FLOW.


There are those who emailed me asking about the basics of cash flow. I m really sorry that I assumed everybody already understands it. Anyway, by demand … here it goes…

May isang bata… joke lang.

The basic is. What pattern do you see if you will get a P100.00 bill and monitor where and how it is transferred from 1 possessor to the other. How does it flow? The pattern for a typical pinoy is.

You earn from your work, you spend it on food, gadgets, clothing and other basic needs. Before you reach the next payday, paubos na yung pera mo. But that’s ok pay day is just a few days ahead and it doesn’t matter if I run out of money, I am expecting money again any time soon.
This cycle goes on and on and you make some side lines or create other ways to earn but it seems that money was never enough. (I am tempted to explain further pero usapan… basics lang).
So you can’t leave the job that you have because a week without work would affect the cash flow you have to support your family and needs. As much as you wanted to accept another job, the gap would make you pay less for a couple of days which makes you a slave to your boss.
At least, you have a job to support your needs.
So to illustrate…Cash is flowing inside your pocket.
Years have gone by doing your monotonous routine
Question… what if you get fired? Or you were forced to retire because there are new and younger people ready to take your place. What would you do?

As an OFW, Makati executive, top sales man, engineer, attorney, teacher… What if it all ends? The sweet cash that enters your pocket every 15th and 30th suddenly comes to a halt.

There are two things you can buy with your money… An asset and a liability. To describe each... An asset brings money inside your pocket; a liability takes money out of your pocket. Another way to see it is that an asset if you buy one, will bring the money you spent for it back to you 2 or 3 folds. A liability, when you buy it will not give your money back at all.

Sa ilocano… idjay ti kwa… djak maawatan… (joke lang po, seryoso na kayo eh…)
Sa mafdaling salita… kapag asset, maibabalik ang pera , pag liability, good bye sap era…

Ang problema kay JUAN DE LA CRUZ, habang may trabah ipon ng ipon at bili ng bili ng liability!

I have seen OFWs get back to the country with gold chains at kung pwede lang limang shades ang isuot ng sabaysabay g@g@win nya eh… dvd, component, jackets, clothes, inuman, pulutan, party, pabango… hindi na makalakad sa dami ng bitbit…

At syempre mga empleyado natin dito sa bansa ns lingo lingo bago cell phone at mags ng kotse.. hindi na nga magkasya damit sa aparador, tapos pag umaga sasabihin…. Wala na akong maisuot.

Guys think… what you bought… will it bring money back to you? I know what you have in mind… you have to enjoy what you worked hard for. That’s right, but think of something that will last… think of your future.

I have seen the worst of people who were abogado de kampanilya, executive secretaries of top rank business men, people who worked for big companies, earned a fortune and got a big retirement pay by the millions… Now…. Wala na.

Why? Because of their cash flow… went in… went out.

I need not to mention basketball players, actors, singers… Check what is their career path… next after acting , singing and playing… POLITICS. Kasi, yung million na kinita nila, puro liability ang binili.

Going back… all the liability they bought, ibinenta ng mura! Im wearing a gold chain now I got from a sea man… he got it for P35,000 he sold it for 8,000 to me.
Hindi po asset ang alahas! Bakit? Totoo na tumataas ang value nya pero pag gutom ka na, kahit pa luge ibebenta mo! ( wala bang aaray?) Cell phones… dvd players etc. pati bahay at kotse… that’s the cash flow of most OFWs…

The question is … “WHAT IF THE INCOME STOPS?”

Sa pinoy,ganito: anak… magaral ka maigi, at pag tanda naming… ikaw na bahala sa amin ha…. Hindi po ba maling mali…
You have to establish something today that will take care of your future.

Teka , teka… eh ano ang dapat gawin para hindi mangyari yan?

You must create a source of income that will continually make money flow inside your pocket. Start a business! While you are working as an executive or an ofw, or a professional… START A BUSINESS and MASTER that business till you get out of that company. Para pag tumigil ang income mo sa kanila… may susuporta pa din sa iyo hanggang pag tanda mo!

Now don’t tell me to invest my money on pensions and plans… NO WAY! Narinig nyo na siguro yung …. Naku ayaw ko na magbanggit…. Yung mga nagbayad at hindi nakapag claim… sila pa dinimanda at nag pyansa!!! WAG MO I ASA ANG PAGTANDA MO SA IBA! GUMAWA KA NG SARILI MONG BALON NG PERA!
KAHIT MALIIT PA YAN, SRILI MO AT HINDI KA AASA SA IBANG TAO…

Imagine yourself when you reach an older age… ( aruy ko,,, baka yung iba sa inyo about that age… tabi tabi po…Ako pos a mga nag tatanong… im 37 years old. Nabutan ko pa si Michael Jackson at hinele po ako ng nanay ko sa mga kanta ng hagibis… ). You have money that the company gave you as your retirement pay… what will you do?

You can consume the money till your old… eh kung hindi umabot? Masamang damo ka pala… at hindi ka kaagad kinuha ni lord. Eh pang age 65 lang yung naipon mo na budget.
Or maybe, you can start a business and use the money for capital… Kapatid… 9 out of 10 businesses fail… yung isang mag susucceed, g@g@yahin pa ng kapit bahay mo imbis na mag franchise say o… think! At age 50 , you are struggling trying to make a business work! What if it fails?!



Eh ano nga ba ang sagot?

The answer is, stop buying liabilities and instead buy assets now. I don’t care if it is a banana Q store, balot, ice candy or a sari sari store… start now! Because your experience here will teach you what to do in the future. Its so hard to struggle in business when your 60 yrs old.

You have to create a source of income separated from the source of income from your work. That when the time comes that you have to stop working, you will have your own source of money! Create assets, start a business that will be there to support you and your family. I AM NOT TELLING YOU TO QUIT YOUR JOB! Im telling you to start a business while you’re working and stop spending your money on liabilities and start putting them on assets!

Ang pera pag pinambili mo ng LIABILITY… hindi na babalik… ang ASSET… BABALIK.

Teka… masama ba bumili ng mga mag@g@ndang gamit? Hindi! Siguraduhin mo lang na ang pambili mo nun ay galling sa asset mo. The business has to be prioritized! Mawalan ka man ng trabaho, may negosyo kang palalaguin.

If before, nabubuhay ka naman ng iisa sapatos mo, wag mo baguhin yun… dati, nag jejeep ka lang… wag ka muna mag FX…

Create assets and lessen liabilities. Invest and learn now… mag negosyo!

Eh anong negosyo? Any, as long as you think it is work and doable! I am still looking for partners for my HOME MASSAGE SERVICE! SPA MAGIC! And my business CAR MAGIC is still franchising… (joke lang … baka sabihin nyo nag propromote lang ako eh…But I AM PROUD TO SAY THAT ALL MY BUSINESSES ARE ORIGINAL AND ALL ARE GRAND ASSETS!

I started all my businesses with a very small capital. If I used that money to buy a gadget, new shoes or any liability… baka wala lahat ng negosyo ko at wala na akong makain ngayon.

Again, I hope that this BASIC CASH FLOW article helps…. I wish all of us become financially free!

Why should I go into business?

a question was asked of me before... what if my business fails? My answer was simple.. i said... it has to!
Failure is a prerequisite of success. Many today are stuck like glue to their jobs and offices. Yes, they earn, big!
But till when? What if that fails? What if you get fired? Or injured? This is not being negative, its reality. Maybe...
Then, you can start a business!!! Besides, the company will give you retirement pay!
Then... i will ask you... what if YOUR business Fail? At that age.

I have been in the business for more than 10 years and i do remember times that the business would experience
Down falls. And that should make people who plan to enter into business years from now. Those who think that when
They grow old they’ll just barge into any enterprise and succeed more scared! What if it fails? I pity older people at age 50
And up applying for a job. Shouldn’t they be relaxing and enjoying their life by then? Staying at home, watching TV from their lazy boy?

I use to be afraid of people who would copy my business, but going thru all the failure i realize that they also have to go thru what i have been thru. Experience is the most important thing in business. And that’s the reason why mileage is a factor.

That’s the reason why people franchise. i am not amazed with franchises that just grows overnight. You just can’t make a delicious sandwich then franchise it the next day. With franchising, it’s the system and experience you pay! The goal of the franchise is to keep the franchisee from failing and losing the business. And that happens by experience.

Yes you may copy businesses, but think… you will do trial and error as you build your business system. That my amigo will cost you, perhaps even more than a franchise fee.

When I was on my 3rd year with car magic building my business system, I was experimenting with franchise. I got a guy who wanted to do business and taught him the basics of the CAR MAGIC operation. From there, I asked him to try and duplicate the business. He was successful till….. He did not include the preliminary inspection of a vehicle with his system. With my system, we do not assume that the client knows his car perfectly. There was a small crack at the windshield of the clients BENZ. My partner didn’t mind it and didn’t even mention it to the owner. They started the work and just covered the crack with paper to prevent the part to be painted. After the repair, the client complained about the crack claiming that it wasn’t there before. Maybe he knew it but just wanted a free replacement. My partner ended up paying P48, 000.00 for the windshield. Guess what happened next? He quitted. Why? Because he failed!

He should have taken that experience and applied it to his system and learn. As a franchisee, you do not have to experience that anymore because we will teach you those precautions. That’s the reason why you franchise!

Why business? Because it is a source of income that if well managed, will be there even if you are long gone. In business no one tells you what time to sleep, wake up, what time to eat, when you can attend to your child’s activity. With business… you are the boss.

Lecture of Mr. butch Salvador Nov. 2006
Recorded / transferred /edited
Jc makalinao


Budgeting


I believe this is one thing that a typical pinoy knows but always fail to apply. Especially now that Christmas is about to come where bonuses, 13 month pay etc. is awarded to most employees.
Paano nga ba? It is actually so simple yet it would take a big amount of discipline to do it. Lets make it step by step para mas madali natin maintindihan. Now, lets not just know it but practice it.
STEP 1: know how much your monthly income is.
I would assume here that everybody goes with a monthly budget. However, this budgeting system may be adjusted to whatever length of time you wish to.
How much do you have is the question. This would be the first step because we couldn’t really spend more than what we earn. Get all your resources together and find out how much do you really earn and capable of spending every month. This would come from your income, whether from a side line, business, salary, padala, supporta, galling sa tatay, nanay, bf, gf etc… basta yung regular na natatanggap mo bwan bwan. This will be your Monthly income. Ang total nito ang iyong magiging total monthly regular income.

STEP 2: List all your necessary expenses.
Here we have to only list down “necessary” expenditures like bills, food, rent, maintenance… yung mga gastusin na hindi mo na pwedeng hindi bayaran. Wag tayo mandaya at ilagay ang shopping ditto at e justify that we really need it. After listing this, get the total amount and name it monthly necessary expenditures.


So now we have :

MONTHLY INCOME
MONTHLY NECESSARY EXPENDITURE

Now, you must not have expenditure more than tour income. Hindi po pupwede na mas malaki ang gastos sa kinikita o natatanggap.
And incase that it is more than the income , then you are in trouble! You must adjust and reduce whatever expenditure you have to make it fit your income. Kung nag air con ka, aba eh di mag electric fan muna… o kung nag FX ka, eh di jeep muna…at kung may gatas ang kape mo…. Black coffee muna. O baka naman pwedeng hot water muna… WHY? Eh hindi kasya eh!!! Wag mo pilitin kung hindi kaya.

Hindi po kulang ang pera nyo! Kulang kayo sa disiplina! Money was never the answer! If you think it is, then you are no different with people who makes welga welga on the streets! Asking for additional pay! Budgeting at disiplina ang kailangan natin!

Pilipinos always borrow money to catch up with their expenditures. Did you know that 70% of what we buy isn’t really necessary? Bibili ka ng plastic container na maganda kulay , tapos iisipin mo… san ko kaya pwede gamitin ito? Mali di ba?

So, reduce and make it fit to your income and LESS! Kung maigsi ang kumot… mamaluktot.

STEP 3:

Yung iba titigil na dito, kasi ala na eh,,, ubos na budget… wag po lets continue with the 3rd step. Meaning, dapat adjust natin an gating gastusin. Youll see, in doing so, youll realize that you may transfer other unnecessary expenses to necessary or useful expenditure.

So the third step is yun nay un… ADJUST YOUR EXPENSES.
Here you will see na madami ka palang nawawalang pera na hindi mo alam saan mo ginastos. Can you relate? Do you often hear you say “bakit naubos yung Pxxx pera ko dito? Ano ba yung binili ko?”again… NECESSARY LANG HA! Then adjust.

So, we have a list of necessary expenditures, total monthly income that must be over the expenditure and we have adjusted our expenses.

STEP 4 is dapat may sumobra… or there has to be an excess.
Ganito yun…you must adjust the expenditure that there must be an excess amount. Now, I am sure. This is possible. Let me illustrate: sa P10,000.00 / month na income…

INCOME: P10,000.00
EXPENDITURE:
Electric bill: 1,500.00
Water bill: 500.00
Cellphone: 600.00
Palengke: 3,000.00
Grocery: 2,000.00
Rent: 1,500.00
Mineral water: 300.00
Etc… : 600.00 PWEDE! Pero kaya pa I adjust…

Bawasan ang cell phone: (kaya naman eh…)

RULE: KUNG HINDI KAYA …. WAG! Hindi naman kayo mamamatay kung dalawa lang pantaloon mo eh… o ipa repair mo pag nasira eh… o kung 3210 cellfone mo eh… did u know that I saw mr. gullermo luz at makati… a year ago… naka 5110.
KABAYAN… hindi na baling mukha kang walang per. Ok lang yun.

TEKA, lets sum up and review…
May INCOME, GASTUSIN na dapat naka pasok at tama lang sa natatanggap at DAPAT MAY % na hindi dapat galawin para sa savings or investment.




STEP 5: INVEST;
Inegosyo mo yung sosobra (actually , the capital isn’t necessary . You can start a business even without capital). If you do not have excess and no capital… I advice, MAKI NEGOSYO! Tamad lang ang ayaw gumawa nito. THERE ARE LOTS OF BUSINESSES THAT NEEDS MARKETING! Go to a village that is being developed. Talk to the architect, ask their requirements… tapos lumapit ka sa isang HARDWARE at hingan mo ng COMMISSION. O… ano puhunan dun? O kaya sa mga ka groupo, ka opisina, kapitbahay na may negosyo… DUDES , ANG DAMI NYAN! Car magic pa lang , market it and il give you 10% of gross charge.

I hope your getting the picture. ..


STEP 6: what to do with your extra income… O TEKA… HINDI SHOPPING. STILL live within the old budget. Thets the problem we pinoys have, pag may sumobra… gagastusin. NO! NO! NO!

You were able to live before with that amount, still live with it. Set aside your extra income and if you find whatever business you went into doing good… then use the money and invest it on that business since you have already seen a market for that business na “NAKI BUSINESS KA”.

STEP 7: ADD TO YOUR LIABILITIES
HE HE … eto ang masarap. If you start generating extra income from your investment. You may now get a percentage of that income and add it to your budget.
This means… you may already buy that new jeans you’ve always wanted… or that shades that adds pogi points… well… maybe, as long as it fits to that percent. But most importantly, you are elevating. If before burger mc do ka lang… aba, ngayon… quarter pounder na… (tagalan mo pag nguya ah… feel it).


Now if this formula works… ditto lang ako sa marikina… pwede delivery… Aysus, hindi pala… repeat the same procedure again and again and again….

If you want to be financially free, then start now! Discipline yourself and your family. Explain this to them . It is so hard to change PINOY values when it comes to money. Especially if it has been handed down from generations to generations… but it has to change. And it has to change now! Do not save for something you want to buy, instead, save for an investment. And you’ll see how this would change your life.

Life is more important than money… but you need money to support life. Don’t love money and work for it for the rest of your life… instead, plan your financial future. Create a money source that will be there even as you grow old. Don’t rely on others investment, plans, projects… but study a system that you can run and pass on to your children…


You want a business that works? This is only a tip.
1. Buy a 2nd hand cell phone unit. Sell it with a little profit. Cell phones are the fastest in the market today. How do I know? Anywhere you go (esp greenhills). Madaming stalls, employees save up for it, almst everybody has or wants one. These are the clues to find out what business are hot today.
2. Study the techniques and system in cell phone buy and sell: You should personally do it yourself at first.maliit muna ang profit to sell fast.
3. Check the flow of selling: how fast can you sell a single unit, what brands , models are saleable. How much would you earn from a single deal…
4. Use your profit to invest on another cell unit: repeat the same procedure and feel the flow. Check how many can you personally sell.
5. Teach and multiply yourself: get trustworthy people whom you can share the business to. Your capital and share the profit to the person.


THINK; if per unit you earn 500.00 and you can sell 2 units in a week. You earn 1,000 additional income. And if you will get an agent that you will share 50% of your profit , you get an additional 500.00……. what if you have 5 agents????

Happy entrepreneuring!!! Salamt po….

network...

Every time we hear the word NETWORKING, I know there are lots of those who become allergic. Eh pano ba naman, halos lahat na ata ng networking dito sa pilipinas eh nasalihan mo na and you end up using the products na nabili mo ng 70% off. At pakiramdam mo, naka discount ka! May libreng bag ka pa dyan … uy (to the tune of paru parong bukid) my lip stick at make up uy… ang di mo alam eh mga reject nila yun na hindi na ma benta. Actually po, it is a brilliant idea to sell products and services this way. Kaya nga po mga millionaryo na sila eh…

If you want your business to grow… NETWORK it! I want everybody to slowly analyze what is being done here. If you capture it and be able to do the system in your business, I am sure it will grow. This is designed for either product or service business.

To start, May I ask you… do you know magoos pizza? Eh domino? Why? How? Are they as big as pizza hut or shakeys? I do not even see a restaurant of either the two pizza brand… why do you know it? Kasi po, naka network sila. Small stores but plenty.

For example Im selling ballot. Every night I go out to shout “ balooooot” , but I earn 300.00 daily!. I work, sleep late, make sure my eggs wont crack and above all… I cannot watch angel locsin at majica ( gandang babae nun oh). Here I hope you see the businessman side of the person. The guy who works for money and does everything.

What if … I get 10 people, give them the business (w/c I believe they would be more than glad to accept it). Tell them that I will just get a fraction of their income and they can keep the whole amount and earnings.

Meaning, they sell my balut, sila ang hindi makaka panood kay angel locsin… kumikita sila at siguro nagiisip sila bakit mo sila binigyan ng negosyo at kaunti lang ang share mo. Pero… may network ka naman. At P50.00 times 10 (kung sampu ang network mo) kikita ka ng P500.00 while you watch tv at home.

Guys, it is a simple networking strategy that can be done whether you are selling ballot, toys, taho, electrician, massage, automotive, cpu repair etc…

One more example. If I am a cpu technician , I will be so much limited to a number of services per day (kasi nagiisa ako eh). Aside from that, I will be the one working . The only reward is, you get the whole income. But, if you network and get people who can service for you (dapat I train mo ha… at syempre turuan mo ng manners. Kasi, they will represent you and your business), you will not be limited to just a few clients. Kahit saan pa pwede ka… eh dati pag paranaque area, dun ka lang kasi malayo ang novaliches… with a network, you earn less from each service pero madami ka naman na seservicean!



With this system, you provide people with jobs and opportunities. You help the economy boom and lessen poverty. So, if you have a business network it! Lalaki pa negosyo mo! Imagine, you will have branches, fruits and leaves …teka hindi na ata kasama yung leaves. But I hope that you are getting my point.

Again, I hope this helps entrepreneurs and business people.

WHY SMALL BUSINESSES STAY SMALL.

I did mention on my last article about, getting some one to do things for you. Yes! I did say that! To add… If you want to be rich, be lazy! It is the only way for you to delegate things. How many of you still works out your own BIR and BUSINESS PERMIT? Cmon…Most of the times, this is only an escape goat for you to say that you are doing something a justification for you not to do things you should really be doing.

Pero teka, im saving money pag ako ang naglakad nito! I agree! How much? 300? 500? O kahit 1,000.00 . Think, you spent the whole day at DTI or The Munisipyo doing that para maka tipid, eh kung ginawa mo ang dapat mong trinabaho… You might have earned more than that.
I remember before when my CPU broke down… na virus ata eh… ( pag na virus kayo, just return the cpu setting 1 day before sa system restore… tanggal and virus nyo) AYAN TIP YAN HA… LIBRE . NO NEED TO GET ANTI VIRUS OR MAG PA SERVICE.

You want to know what I did. I REPAIRED IT MY SELF! Ang galling ko noh… HINDI! It took me 1 whole day to reformat my CPU as a result; I wasn’t able to do what I was supposing to. Yeah, I saved 500.00 to 1,000 but if I did follow up clients or re organized my staff or gave them an encouraging talk… maybe I earned more than what I thought I saved.

In business, you shouldn’t be selfish in getting ALL the profit. Delegate and get people!
If not, it will be a see saw effect. YOU market this week…. You service or sell next week. Then the third week… no clients. WHY? Eh walang nag market last week eh, kasi busy ka sa pagseservice at pagbebenta! Eh di ganun din.

What if… you get someone to market or to do the service or vise versa ( depende ano ag forte mo.) If you are good in marketing, then get a service guy. Nagbabayad at nababawasan ka nga, consistent naman ang cliente. Mas malaki yun!

THEN…… duplicate it, again and again and again…

If you are in a business and you do all the work, you will never grow. You do the books, repairs, errands, marketing, selling, demo etc… ay naku… TIDE IS MIRAKOL…
Lets say with this, you earn P100,000.00 / month from 100 clients. But if you have people that will get a portion of your profit pero mas madami naman kayo mag@g@wa. Baka hindi lang yun ang kitain mo with less effort.

Your business will remain small if you do things yourself. Think big, plan big! Duplicate yourself in some aspects and delegate specific jobs in your business.

Teka, were not yet finish. Another reason is because when they earn money, they spend it on their selves first. Instead of expanding and investing for the business…. People immediately congratulate their selves and buy them a monument of their success. Do I have to expound on that? Wag na mag@g@lit sakin mga HAPON eh.. wala na bili brand new car pag natutunan ng Pilipino to eh. At syempre, dapat mag upgrade kaagad ng cell fone…O imbatihin agad ang mga lolo at lola nyo for a party for them to see your success.
Pinoy… hindi na tayo natuto… It doesn’t matter if you look poor… just don’t be poor.

Invest in man power! Get good people! You’ll pay them more but will produce more for you!

Naway maka tulong po ang naibahagi kong ito sa inyong mga negosyo. Salamat Po.
Butch salvador