|
The Coach Approach,
November 2006
Week One
The theme this month is statistics, providing a different perspective
on the world. Now before you run away I think you will find the
statistics in these newsletters of interest. I have been busy
researching several topics these past few months, Entrepreneurship
in a global perspective and ageing/retirement in a global perspective.
Just how do Canadians and Americans compare to other countries?
A February 2005 article in Canadian Business Online, Kim Shiffman
reported on a GrantThornton International study that surveyed
6300 owners of medium sized business in 24 countries and found
that stress levels had rocketed by more than a third in only
one year.
The Taiwanese saw the biggest jump in stress; a staggering 69%.
They were followed by Hong Kong and Turkey 54%, India and the
Philippines 53%, and Russia and Japan 51%.
Interesting numbers, but why are these business owners stressed?
According to the Grant Thornton International study, entrepreneurs
in India, South Africa and Russia are stressed because of their
fast expanding economies and their difficulty keeping up with
demand.
Those in Taiwan, Japan, Hong Kong and Singapore feel the strain
of increased competition and concern about the economy.
The relatively small percentage of entrepreneurs in the US,
Australia, New Zealand and Canada who reported that their stress
levels are rising say its because of an increase in customer
expectations and pressure on cashflow and profits.
My observation, there’s always something to be stressed
about, too much business, not enough business, competition, business
processes and profitability.
My invitation to you – understand stress is a normal part
of business and life. Don’t let stress become an obstacle
to your success. Take care of your stress on a regular basis
before it gets out of hand. Regular exercise, proper diet, a
good night’s sleep, and preventative therapies such as
massage are a few of the ways to deal with your stress.
I invite you to use stress as a catalyst
to change!
* * * * *
Week Two
I have been busy the last two years researching and writing
for my newest book, Ready-Set-Retire: The Changing Face of
Retirement. Here is a rather lengthy but worthwhile excerpt
from the book:
The Future of Retirement: What the World Wants study,
the world’s largest survey on attitudes to ageing, longevity
and retirement conducted amongst 21,329 individuals and 6,018
private sector employers in 20 countries and territories across
five continents. The Future of Retirement What the World Wants
was commissioned by HSBC.
Go to www.hsbc.com/hsbc/retirement_future/research-summary to
download the full report.
Brazil
In Brazil, family, friends, good health and strong religious faith are viewed
as the greatest sources of satisfaction and happiness in later life. Brazilians
generally view retirement as a time for rest and relaxation. Older Brazilians
will most likely want to work, but will seek a comfortable mix of work and
leisure. The majority of Brazilians support enforced additional private savings
as the best approach to avoid a retirement funding shortfall.
Canada
Canadians are extremely optimistic about their later years, and are most likely
to associate retirement with freedom, happiness and satisfaction. Family,
friends, good health and not having to worry about money are all viewed as
extremely important in achieving a happy old age. Canadians support enforced
additional private savings as the best approach to avoid a retirement funding
shortfall.
China
In rapidly modernizing and fast-paced urban China, views of retirement vary
between a time for rest and relaxation and an opportunity for a whole new
chapter in life. The Chinese would either like to go back and forth between
periods of work and leisure or work part-time in their later years. China
is one of the rare countries which does not support enforced additional private
savings as the best approach to avoid a retirement funding shortfall.
Egypt
Egyptians view their later years as a time for slowing down and spiritual reconciliation.
Egyptians are the most concerned, of all countries surveyed, that they are
going to be bored and lonely in their later years. Egyptians support enforced
additional private savings as the best approach to avoid a retirement funding
shortfall.
France
The French view their later years as a whole new chapter of life where they
can fulfill their dreams and aspirations, as well as a time of worry and
concern. Friends and family, health, and staying young at heart are very
important to achieving a happy old age in France. The majority of French
people support enforced additional private savings as the best approach to
avoid a retirement funding shortfall.
Germany
Germans view later life as a time of satisfaction, purpose, and continued health
and vigor. Most view their elders in a positive light. Seeking mental stimulation
and social connections from work, they are avid and methodical savers and
planners, and would agree that they are responsible for their own retirement
costs. In fact, Germans are the most prepared when it comes to retirement.
The vast majority of Germans support enforced additional private savings
as the best approach to avoid a retirement funding shortfall.
Hong Kong
In Hong Kong, later life is viewed as the ‘golden years’, a time
for rest, relaxation and the enjoyment of accumulated wealth. Hong Kong respondents
feel what is most important is being healthy enough and wealthy enough to do
whatever they please during a pleasant and lengthy retirement. People in Hong
Kong support enforced additional private savings as the best approach to avoid
a retirement funding shortfall.
India
Indians view later life as a time for rest and relaxation where they are cared
for by their families. Staying healthy, having a loving family and friends
and not having to worry about money are all extremely important to achieving
a happy old age for Indians. Indians support enforced additional private
savings as the best approach to avoid a retirement funding shortfall.
Indonesia
Indonesians view later life as a time for spiritual fulfillment and family
companionship and support. When asked what brings happiness in later life,
religion and faith top their list but health and their family are also extremely
important to them. Though few plan to stop working completely in retirement,
and view work as a source of continued mental stimulation, Indonesians are
not very likely to oppose mandatory retirement. Indonesians prefer enforced
additional private savings as the best approach to avoid a retirement funding
shortfall
Japan
The Japanese have mixed feelings about retirement and their elders. They associate
retirement with freedom, but also potentially with loneliness and boredom.
For many, later life is viewed as a solitary affair, with few planning to
spend more time with family or friends, but instead looking to travel or
take up a hobby. The vast majority of Japanese would like to balance work
and leisure during retirement as a continued source of income and fulfillment.
Japan is one of the rare countries which does not support enforced additional
private savings as the best approach to avoid a retirement funding shortfall.
Malaysia
Malaysians view retirement as a time for relaxation where they can spend time
with family and friends, and travel. Family and friends, and staying healthy
are the greatest sources of happiness for Malaysians. If they are to work
at all during retirement, they prefer either to work part-time or to go back
and forth between periods of work and leisure. Some of the biggest concerns
for Malaysians in their later years are centered on health and security.
Malaysians support enforced additional private savings as the best approach
to avoid a retirement funding shortfall.
Mexico
Mexicans associate retirement with satisfaction, happiness, freedom and a time
for rest and relaxation. Health, not having to worry about money and a having
strong religious faith are what Mexicans deem most important in achieving
a happy old age. Most Mexicans would like to have a balance of work and leisure
during their retirement, for both the physical activity and the income. Mexicans
support enforced additional private savings as the best approach to avoid
a retirement funding shortfall.
Poland
Poles view their later years as a time for slowing down, relaxing, and spending
time with family. They are the most likely of all countries to think retirement
is a time for rest and relaxation and the most likely to say they want to
slow down. Poles think loving family and friends are key to happiness in
later life, and look forward to spending more time with friends, children,
grandchildren, and spouses. Polish people prefer enforced additional private
savings as the best approach to avoid a retirement funding shortfall.
Russia
Russians look to continued satisfaction from work in later life, but often
view retirement with some concern. Few think of this stage of life as a time
of happiness, excitement, or adventures, and many would say it is the “beginning
of the end.” In part, this may reflect their concerns about health
and money. Russians prefer enforced additional private savings as the best
approach to avoid a retirement funding shortfall.
Saudi Arabia
Saudis view later life as a time for spirituality, close relationships, and
the search for continued meaning and purpose. They are the most likely of
all surveyed countries to think that having dreams and ambitions is extremely
important to achieving a happy old age, but they often fear that old age
is a time of loss of purpose. They are the most likely to associate retirement
with boredom and to think their elders spend too much time living in the
past, and they frequently think their elders have little purpose in life.
The majority of Saudi Arabians support enforced additional private savings
as the best approach to avoid a retirement funding shortfall.
Singapore
In Singapore, retirement is viewed as a time for rest, relaxation, material
comfort, and family. Loving family and friends are extremely important to
a happy old age in Singapore. When asked where they want to live later in
life, their ideal place is close to their families and friends, and close
to amenities. Singapore is one of the few countries where enforced additional
private savings is not seen as the best approach to avoid a retirement funding
shortfall.
Sweden
Many people in Sweden believe that retirement is an opportunity for a whole
new chapter in life. Continued work and productivity are sources of satisfaction
in later life, but Swedes won’t be working for the money, but instead
look for social and mental stimulation. Sweden is one of the few countries
where enforced additional private savings is not seen as the best approach
to avoid a retirement funding shortfall.
Turkey
Turks view retirement as a period of rest and relaxation. They are among the
least likely to think that having ambitions and dreams is extremely important
to achieve a happy old age, and instead seek to stay fit and spend time with
family and friends. They are more likely to view their elders as a burden
on society and think they have little purpose. In fact, many admit that caring
for ageing relatives is a serious concern for them in later life.
UK
To the British, retirement years represent an opportunity for a whole new chapter
of life, freedom to do what they want, happiness, and satisfaction. Being
self-reliant and free of money worries is very important to people in the
UK, and they strongly feel that they neither should, nor will depend on their
children or families in old age. They also don’t trust the government
to support them, but instead take personal responsibility for planning and
preparing for their retirement. As a result of this, there are higher levels
of preparedness for retirement in the UK. However, people in the UK still
see enforced additional private savings as the best approach to avoid a retirement
funding shortfall.
US
In the United States, retirement is viewed as a time of freedom, happiness,
satisfaction, and opportunities. Americans have a very positive image of
both their later years and their elders, who they think deserve respect,
are interesting, and are full of wisdom. Americans are also strongly opposed
to any legal restrictions that would limit their freedom to work for as long
as they want. They appreciate the value that older workers add to the workforce.
People in the US see enforced additional private savings as the best approach
to avoid a retirement funding shortfall.
* * * * *
Week Three: Entrepreneurship – how
is it changing?
I love this definition of entrepreneurship by Bob Reiss, successful
entrepreneur and author of Low Risk, High Reward: Starting
and Growing Your Business with Minimal Risk.
"Entrepreneurship is the recognition and pursuit of opportunity
without regard to the resources you currently control, with confidence
that you can succeed, with the flexibility to change course as
necessary, and with the will to rebound from setbacks."
A report from the Center for Women’s Business Research:
Women-Owned Businesses Continue to Outpace Growth Rates for
All Other Firms. (09-12-2006)
Washington, DC – Women-owned firms continue to grow at twice the rate
of all firms, according to the biennial update by the Center for Women’s
Business Research.
As of 2006, the Center estimates there are 7.7 million majority
women-owned firms (firms at least 51% owned by a woman or women).
Between 1997 and 2006 the number of majority women-owned firms
increased from 5.4 to 7.7 million, an increase of 42%, almost
double that of all firms (23%).
The number of women-owned firms has grown at around twice the
rate of all firms for more than two decades,” said Marjorie
Alfus, chair of the Center for Women’s Business Research. “Women
business owners are significant players in the nation’s
economy and their momentum shows no sign of slowing down.”
The new projections also show that there are 10.4 million businesses
50% or more owned by a woman or women that employ 13 million
employees and generate nearly $2 trillion ($1.9) in revenues.
In 2006, majority women-owned firms are expected to generate
more than $1 trillion ($1.1) in revenues and employ 7.2 million
workers. Nearly three-quarters (74%) of all women-owned firms
are majority women-owned.
The Center for Women’s Business Research is the premier
source of knowledge about women business owners and their enterprises
worldwide. (http://womensbusinessresearch.org)
Canadian Facts and Stats
From the Women Enterprise Centre – Submission to Prime Ministers Task
Force on Women’s Entrepreneurs Feb. 28, 2003
• 31% of firms and half of self-employed businesses are
women owned or led
• Women generated 40% of new start up business
• The number of women entrepreneurs isgrowing at 2 times the rate of men
• Women owned or women led businesses provide 1.7 millions jobs (1.5 million
Canada’s top 100 companies)
• Number of women incorporated business doubled in past ten years
And finally, how satisfied are these women entrepreneurs?
In her book, Female Enterprise in the New Economy,
Karen Hughes presents the following research:
Satisfaction with Intrinsic Work Features, Alberta Study
| |
Solo
Self-employed
|
Employers
|
All respondents
|
| Independence |
93.8
|
86.2
|
90.2
|
| Opportunity for creativity |
96.9
|
92.9
|
95.0
|
| Authority to make decisions |
96.9
|
89.7
|
93.4
|
| Nature of day-today work |
84.4
|
86.2
|
85.2
|
| Work and family balance |
68.8
|
51.7
|
60.7
|
| Time for self |
38.7
|
17.2
|
28.3
|
| Personal fulfillment |
90.6
|
96.6
|
93.4
|
| |
|
|
|
| Total |
32
|
29
|
61
|
The changing world of business!
* * * * *
Week Four
This week we will look at statistics on ageing again with this
excerpt from my new book, Ready-Set-Retire, the Changing
Face of Retirements.
World Population Ageing 1950-2050, Population Division,
DESA, United Nations
Ageing index – Broad age groups (percentage)
60+
| Country |
2000 |
2025 |
2050 |
| Canada |
16.7 |
27.9 |
30.5 |
| China |
10.1 |
19.5 |
29.9 |
| Japan |
23.2 |
35.1 |
42.3 |
| United Arab Emirates |
5.1 |
23.6 |
26.7 |
| United Kindom of Great Britain&Northern Ireland |
20.6 |
29.04 |
34.0 |
| United States of America |
16.1 |
24.8 |
26.9 |
www.un.org/esa/population/publications/worldageing19502050/countriesorareas.htm
|
The increase in the percentage of populations over 60 years of age increases
dramatically in the next fifty years. What does this mean to you and I?
In Ready-Set-Retire, Chapter One is entitled How Old
is Old Today and takes a look at how our perception of ageing
needs to change as the world’s population ages. Yes, I
have heard all the gloom and doom reports about the collapse
of our pension and health care systems but you must remember
I am an optimist. As an optimist I believe just like the predictions
of the end of the world in 2000, the fear factor in these predictions
may be over exaggerated.
Here’s a story from Chapter One that takes a different
view on ageing:
“My 80-year old uncle still has a boyish glint in his
eye. Why? He sees himself as forever young and doesn’t
think he has to act old, staid and stodgy. Instead, he enjoys
life and is full of fun and playfulness. On the other hand, my
cousin is 30 but appears to be considerably older. He worries
a lot, is very serious and quite concerned about the “horrible
state of the world.” He has a constant frown and furrow
in his brow and is ageing before his time.”
"How old would you be if you didn’t know how
old you are?"
Satchel Paige
* * * * *
Week Five: Entrepreneurship
The failure rates of new business are not a pretty
picture. Although these stats are often incongruent and always
changing the generally accepted numbers are:
50% of new businesses fail in their first year
50% of the survivors fail in the next five years
Scarey stats for those contemplating starting a business.
Here are a few common new business mistakes and
what you can do about them:
1. Overly optimistic
Assume sales will occur; don't include provisions for problems; sales estimates
are too high. Are emotionally high from starting a business, which affects
judgment. Assume people will flock to buy their product (most will just
look; few will buy even if needed).
Solution: Enjoy their high and optimism,
but (quietly) demand conservatism
and responsibility.
2. Not enough cash reserve
It takes twice as much money as one thinks to start a business right: equipment,
mistakes, training, brochures, learning curves, inventory, payment delays,
computers, learning how to sell properly, research and development expenses,
breakage, upgrading the product or service, etc.
Solution: Find non-cash ways to pay
for services or equipment: barter, deferred payments, smaller
budget, go slower, pilot test first.
3. Excessive overhead and spending
Buying into the "shoulds" – “should” have an
office, cars, computers, slick brochure, secretary, staff, etc. Excusing
expenses: "We'll be able to use this over 10 years; it will pay for
itself in sixvmonths, etc."
Solution: Implement a stingy budget
and stick with it. A tight budget forces
creativity, innovation and resourcefulness, which are all required for business
success anyway. Let the budget dictate spending.
4 Overly trusting and delegating
Giving away too much responsibility and authority to people who aren't up
to it.
Dumping goals and problems on people who aren't nearly entrepreneurial enough
to handle them.
Solution: Strongly encourage your client
to do many tasks that are "beneath" him or her and
help your client redesign these tasks to be simpler, automated
or fully delegate-able.
5. Inadequate financial controls
Financials are not done or are late.
Books are messy.
Budget is overspent.
Theft occurs in the business.
Solution: Hire a bookkeeper and CPA
to set up and manage all of the controls and flows of financial
information.
6. Getting into the wrong business
Getting into what "sounds" great, but which your client has inadequate
skills or experience. Greed, making a killing, fantasy, using the business
as a means to an end versus enjoying it fully.
Solution: Pick a values-based business,
easing into it versus going for broke; expect little of it,
and enjoy it a lot; discern and maximize opportunities after
being in the business rather than trying to figure out the
best way to go at the beginning
7. Putting self at risk by starting
a company right now
Starting a business because you got laid off and need money, fast
Getting caught up in the addictive and medicating rush that entrepreneurs
often have.
Solution: Keep the day job and ease
into the company
These apply no matter what part of the world
you are operating in.
" Always bear in mind that your own
resolution to succeed is more important than any other one
thing."
— Abraham Lincoln
|
