Approach to Planning

While working ‘on’ my business as opposed to ‘in’ my business I focused on taking a close look at how I have helped my very best customers, people who are the ideal customers. I’ve realized that as I help these great customers, I follow a distinct process that is unique to my business. I’ve mapped my process out, identified all of the steps and stages, and packaged it by calling it The Return-On-Life Process.

We developed this program working with our clients over the years to help them understand their current situation and create a powerful vision for their future. Then we look at the roadblocks standing in their way, develop strategies to overcome them, and review all of the tools to help them achieve their vision.

Clients often tell others that they have been working with an advisor who specializes in helping business owners like themselves. I get referred to as ‘the real deal’ and as somebody that ‘gets it’. These clients promise their friends and associates that they will learn something new and interesting that they can put to use right away.

Most small business owners have already achieved much success, but they may still lack confidence in the future. Because of that uncertainty, they may be unwilling to define and write down their goals for fear that they will not achieve them. They may also feel that they have to do everything themselves, and so do not share their vision with those who care about them and can help them achieve these goals.

Some small business owners see their business and life as a short term and tactical project, and do not see past the next deal. We call this The Next Deal Trap and it is why we created The Return on Life Process. They may consider their ability to make deals to be their primary method for generating revenue, therefore they do not create new capabilities, intellectual and business equity, or long term value. As a result there is no recurring income and they feel that simply working harder is the best viable alternative. Doing more of the same is their only choice.

By not developing a comprehensive strategy for handling their financial issues, small business owners can face many repercussions. They may be vulnerable to outside forces and circumstances beyond their control such as the economy or unexpected illness. They may be forced to renege on commitments to others, and may have to lay people off, have supplier payment problems and not be able to fulfill family expectations. This may cause their reputation and standing in the community to be harmed, and their personal relationships to suffer. These issues may all accumulate to form feelings of frustration, anxiety and resentment and ultimately a loss of vision of why they own their business.

Members of our program realize the greatest return possible from their investment on life. They increase profits by focusing on areas of passion and ability. They sleep well from knowing exactly ‘why’ they do ‘what’ they do, and are happy spending their time on things and people they care about. They are contented knowing that their money is synchronized with their goals, and they take pride in the impact they are making. They become ‘certified entrepreneur’.

The Return on Life Process has been especially created for successful entrepreneurs in the manufacturing, construction, contracting, property development, and larger wholesaling sectors. Members of the program must take a conservative, practical approach to their business, lifestyle and financial wellbeing. They must be focused, have the capacity for strategic thinking, and value other people’s expertise. If you care about the future of your business and the success of your family, and are constantly striving to create greater value in your business and life, The Return on Life Process is right for you.

Approach to Investing

There are many different styles and strategies when it comes to portfolio design. Although I reserve the right to change my mind on individual selections at any time, these core values should remain constant.

1- When we discover a new opportunity I do my own personal research before any investing occurs. We use ‘facts’ – not ‘feelings’ and not ‘hot tips’.

2- Protection of capital is as important as the growth of capital. Use only quality investments and provide a ‘margin of safety’ when buying them.

3- Focus on net return, not gross return. Be constantly aware of taxation levels and categories.

4- Use cost effective products. My fee-based system only allows for indexes (called exchange-traded funds) and commission-free stock trades.

5- Practice true diversity, not perceived diversity. No two holdings in a portfolio should be the same.

6- Don’t buy investments that are locked in. Portfolios should be liquid.

7- Separate risk from volatility. Risk is the real threat that you will lose your money, and volatility is just expected temporary market corrections.

8- Don’t fight sectors or overall markets. As a rule of hand 40% of the movement of any individual company is due to the general market, and 30% is due to the sector that it belongs to. Only the remaining 30% is attributed to the performance of stock itself.

9- Don’t be a slave to any predetermined buy/sell points. No two opportunities or market conditions are the same and you must remain flexible.

10- Stay invested. There are only four things a market can do in any given year – up a lot, up a little, down a little, and down a lot. The great majority of time periods are spent within the first three options.