Today's soapies, or soap opera's (as they're officially known), may seem to be thick on the ground and thin on plot lines, but do have any idea how they actually came to be, and why they're referred to as soapies?
To chart their beginnings, one would have to look back as far as the 1930's. Back then, radio was considered as one of the primary marketing channels, and advertisers would use it to push their products. A number of cleaning material companies, looking for a way to tap into the lives of their target market (women, who were mainly stay-at-home wives back then), decided to air serials with fictional characters. Each serial 'episode' would follow on from the previous one, and was intended to be a companion to the women of the day while they were doing their household chores. These serials' plot lines were fantastical, with a different, outrageous drama happening almost every day to the characters. Making the day-to-day happenings of the characters so far-fetched was intended to placate the listener (the woman), and make her feel as if her relatively monotonous life was not such a bad one to have. Wouldn't you rather clean the house and do the laundry, knowing that you'll please your husband, than have him lose interest and sleep around with your sister/brother/mother/neighbour/boss/dog-walker?
As time progressed, these serials gained in popularity and became an identification point for the women of the day. In due course, they moved over onto television, and haven't looked back. Today, there are hundreds of soapies broadcast around the world, and many have evolved into prime-time television. The underlying formula remains unchanged, though: Have fictional characters, not too unlike your target market (so that they can identify with them), who lead impossibly dramatic and unsettled lives. Build them into a plot line which continually builds on what has gone before, and keep the series going in perpetuity. A cash cow if there ever was one.
But still you ask: Why 'soapies'? Well, back in the 30's, the advertisers bank-rolling the production of the series were all cleaning companies, who produced laundry soaps, bath soaps, cleaning soaps, etc. Eventually, the series took on the identity of the adverts being played, and they became known as the 'soap operas', which was then colloquialised into the word 'soapies'. Just another example of marketing having the most profound effects on the way we live today...
Thursday, February 26, 2009
Finance Coach - Vol. 8
Here's a copy of the message sent out to my Facebook group - Finance Coach (by Gareth Cotten)...
Finance tip: Shopping
Avoid big carts. When doing your grocery shopping, avoid using the bigger carts available. It has been shown that shoppers buy more (potentially more than they need) when using a big cart - psychologically, they may feel more compelled to fill the space available to justify using such a big cart. Rather use a smaller cart, or even better, a hand-basket or two. That way, you will only buy what you need (you should be shopping off of a list if you've been following Finance Coach!), and will save a small fortune on unnecessary goods.
Business tip: Market to watch
Baby-boomers. If you are looking at starting a new business, or wanting to expand into a profitable market, consider developing a product or service aimed at baby-boomers. These are roughly defined as people born in the 10-15 years after WWII (ie. 1945-60). Many businesses that have become huge successes have targeted this market, as it represented a sudden burst of consumers, over and above the average birth rate. Some companies have marketed to this group over their entire lifespan, but the best thing about targeting them now is that they are at or near the peaks of their careers, and thus have enormous spending power and a relatively high degree of disposable income. This has created a vast new range of offerings, from senior care facilities, to plastic surgery services for the middle-aged, to holiday packages and resorts aimed at older couples, etc. Is there something you could offer that could target this highly profitable group?
From my side, while I love sending out these messages, and sharing what I have learnt, I would really like to get some feedback from you, the reader. Tell me what you think: Did a particular edition speak to you? Inspire you to action? Have you made regular use of one of the tips provided? I'm happy to admit that it can be daunting to write out into the big wide world, but it makes it so much more worthwhile when you know you're having an effect. So, drop me a message, post something on the Group wall, and invite people to join - we're hitting a little bit of a plateau in terms of member numbers, and I want to blow past it, so keep those invites going!
Finance tip: Shopping
Avoid big carts. When doing your grocery shopping, avoid using the bigger carts available. It has been shown that shoppers buy more (potentially more than they need) when using a big cart - psychologically, they may feel more compelled to fill the space available to justify using such a big cart. Rather use a smaller cart, or even better, a hand-basket or two. That way, you will only buy what you need (you should be shopping off of a list if you've been following Finance Coach!), and will save a small fortune on unnecessary goods.
Business tip: Market to watch
Baby-boomers. If you are looking at starting a new business, or wanting to expand into a profitable market, consider developing a product or service aimed at baby-boomers. These are roughly defined as people born in the 10-15 years after WWII (ie. 1945-60). Many businesses that have become huge successes have targeted this market, as it represented a sudden burst of consumers, over and above the average birth rate. Some companies have marketed to this group over their entire lifespan, but the best thing about targeting them now is that they are at or near the peaks of their careers, and thus have enormous spending power and a relatively high degree of disposable income. This has created a vast new range of offerings, from senior care facilities, to plastic surgery services for the middle-aged, to holiday packages and resorts aimed at older couples, etc. Is there something you could offer that could target this highly profitable group?
From my side, while I love sending out these messages, and sharing what I have learnt, I would really like to get some feedback from you, the reader. Tell me what you think: Did a particular edition speak to you? Inspire you to action? Have you made regular use of one of the tips provided? I'm happy to admit that it can be daunting to write out into the big wide world, but it makes it so much more worthwhile when you know you're having an effect. So, drop me a message, post something on the Group wall, and invite people to join - we're hitting a little bit of a plateau in terms of member numbers, and I want to blow past it, so keep those invites going!
Monday, February 23, 2009
Finance Coach - Vol. 7
Hi everyone,
Here's your Monday edition...
Finance tip: Planning
Calculate what you'll need in retirement. Ideally, this should be done with a financial planner, but you can get a pretty good idea by doing it yourself. Here's a simplistic breakdown: Estimate what you'd like to live off of monthly once retired (and decide roughly what your retirement age will be). Are you wanting to live more thriftily once retired, or spoil yourself? Will it be based on a percentage of your forecasted final salary? Remember to take inflation into account for what goods/services will cost in the future, and don't forget that you will likely have higher medical costs. Once you've done this, calculate what lump sum would provide you with your desired level of income. This number is then your goal to save towards, so get cracking!
Business tip: Staff
Recruitment. While most businesses are cutting back on their staff bills during the financial crunch, remember the saying of "When there's blood on the streets, buy." This could well be the time to "buy" staff. Many companies, focusing on the short-term, are letting premium employees go to save costs. Take a long hard look at your finances, and see if there's not a way to take on one or two extra staff. There are now thousands of top-drawer candidates out there, with a wealth of experience and insight, desperate for work. You might be able to bring an absolute super-star into your team, ready to make the most of an opportunity to grow your business, and get him/her at a bargain price!
Tuesday, February 17, 2009
You gotta pay to work...
I read a column in the Sunday Times the other day, where the columnist was horrified at the practice of a certain shopping centre, and how they were allegedly 'extorting' the car guards that worked there. Basically, the shopping centre charges the car guards a flat rate of R40 a day to work at the centre - if they don't pay this, they get booted off of the property immediately. (For those not from SA, we have a seemingly unique situation where people - generally unemployed - hang around wherever there is public parking, and 'charge' you for ensuring that your car stays safe. Some see it as extortion, while others see it as a valid way to create employment - that's a debate for another day.) The shopping centre's reasoning behind this was something along the lines of 'it keeps the guards from disappearing, and subsidises their uniforms'. While their argument and reasoning does have some merit, I feel that R40 a day is quite excessive - especially when, according to the guards, they only earn about R80 a day on average. Now, the reason for me re-telling this story is not to whine about a huge shopping centre taking advantage of seemingly underpriveleged people, but rather to enlighten you about some other occupations that require you to 'pay to work'...
The first occupation is that of a taxi-driver. In South Africa, minibus taxi's are the target of much public scorn and anger (although they do provide a very necessary service), but the general model applies around the world. Basically, the way that taxi's are operated is that the taxi owner (who will often own multiple vehicles) recruits a driver to drive his taxi. This driver is then solely responsible for bringing in income. The owner will set a certain amount of money as the required 'pay-in' for the day. The driver then has to bring in that amount of money at the end of the day, and return the taxi with a full tank of petrol. Whatever is left over is then the driver's to keep. As you can probably see, the owner is the one who really makes the money in this situation. While this is a smart entrepreneurial move on the owner's part, perhaps you can now understand why the taxi drivers drive like absolute idiots much of the time - they have to get between their pickups and drop-offs as quickly as (in)humanly possible, in order to maximise their daily takings. In SA, the 'pay-in' is generally set quite high - think R400-500 a day or more. When you consider that most individual trips only bring in a few Rand at a time, and the driver still has to pay for petrol as well, you can see why they are always in such a rush. In essence, the driver has to pay to work, and only when he's bringing in more than his 'pay-in', will he actually make any money.
The other occupation that comes to mind straight away is that of a stripper. In many, if not most, strip clubs, the dancers have to pay a set fee to work at that particular club. This fee can be a daily, weekly, or monthly one, but it has to be paid before the stripper can even set foot onto the stage or the floor. The general model is then that the stripper gets to keep what she (or he) makes from private lap- and pole-dances. This is why, for those of you that have been into a strip club, you get the feeling that the dancers are quite pushy for you to have a private dance - they are essentially in a sales role, and don't make anything if they don't sell any dances. The club owners would then have an income stream from the dancers, and also make margins on food/drinks and merchandising.
Now, before you make up your mind that all these people are being exploited, just remember that many of them make very good money doing what they do. Hence there will always be car-guards, taxi drivers and strippers!
Finance Coach - Vol. 6
Here's a copy of the message sent from my Facebook group - Finance Coach (by Gareth Cotten)...
Finance tip: Shopping
Cars and other big-ticket items. For those of you fortunate enough to be looking at buying a new car (or similar big purchase) in the foreseeable future, there is a definite strategy to ensuring you increase your chances of getting it at the best price possible. The best trick in the book is to go out, having done your homework before, in the last few days of the month, with your chequebook in hand. At this time of the month, sales staff are pushing to meet their targets, and are more likely to drop their prices to secure a sale. To get the absolute best deals, do this, but at the end of the dealer's financial year - they want to get stock off of their floor to make their books look better (which gets them better terms with their banker for the coming year). And most importantly, when negotiating with them, make it clear that you are prepared to walk away from the deal - you'll be amazed at how much of a jolt that gives them...
Business tip: Customer service
Get out on the floor. If you, or members of your management team, have been receiving reports of a drop in customer service standards, or drops in sales, get back onto the floor, and in your customers' faces. The companies with the best customer service records, and brand loyalty, have an ongoing process of sending managers and senior execs back out into the front-lines of the business. This will improve feedback from customers, and help them to see and understand issues brought up by both customers and front-line staff. It could result in an epiphany for streamlining your systems and/or operations, but at the very least will put your senior staff back into the loop, and help them to keep a finger on the pulse of the business.
Finance tip: Shopping
Cars and other big-ticket items. For those of you fortunate enough to be looking at buying a new car (or similar big purchase) in the foreseeable future, there is a definite strategy to ensuring you increase your chances of getting it at the best price possible. The best trick in the book is to go out, having done your homework before, in the last few days of the month, with your chequebook in hand. At this time of the month, sales staff are pushing to meet their targets, and are more likely to drop their prices to secure a sale. To get the absolute best deals, do this, but at the end of the dealer's financial year - they want to get stock off of their floor to make their books look better (which gets them better terms with their banker for the coming year). And most importantly, when negotiating with them, make it clear that you are prepared to walk away from the deal - you'll be amazed at how much of a jolt that gives them...
Business tip: Customer service
Get out on the floor. If you, or members of your management team, have been receiving reports of a drop in customer service standards, or drops in sales, get back onto the floor, and in your customers' faces. The companies with the best customer service records, and brand loyalty, have an ongoing process of sending managers and senior execs back out into the front-lines of the business. This will improve feedback from customers, and help them to see and understand issues brought up by both customers and front-line staff. It could result in an epiphany for streamlining your systems and/or operations, but at the very least will put your senior staff back into the loop, and help them to keep a finger on the pulse of the business.
Saturday, February 14, 2009
Why I'm 9-5ing...
Firstly, I must apologise wholeheartedly for not posting for the last two weeks. If you're trying to build an audience (as I am), it's a cardinal sin to not have new material regularly, but this post will hopefully explain the situation...
Since 2003, I have worked for myself. Before then I was studying full-time, but I then started my first company at age 19. It was at first a great little sideline, and then developed into quite a successful business, which took up most of my time once I'd finished university. Since 2005, when I graduated with my Bachelor's degree, I have pretty much lived the archetypal small business entrepreneur's life: Wake up when I want to; work like crazy during busy periods; take time off during slow ones; dabble in a few other projects as I see fit; spend time shooting the breeze with other like-minded peers; basically run my own life and my own show. Until recently, I felt that that was a very fulfilling, successful life.
Like most entrepreneurs do at some point, though, I started getting a little restless earlier this year. For a guy my age, I was making good money, had few expenses, made time for myself whenever I wanted it - but I felt I needed a new challenge. I wanted to try getting into the corporate world, where I could expose myself to bigger businesses, apply the knowledge that I've built up, and basically learn as much as I could. I did have my reservations, though: early mornings, working on someone else's clock, less time for my own businesses, restricted holidays, etc. Nothing worthwhile is ever easy, though, so I thought I'd give it a go. I went to a couple of interviews, and was offered one or two positions, but none of them really grabbed me. That was until the end of January...
I had spotted an ad in the newspaper for a Financial Manager position at a fast-growing tourism concern. I am involved in the tourism and leisure industry through my limo company, and have the Accounting and Finance knowledge which was required, so I went for an interview. What really piqued my attention was how the interviewers (the MD and the FD) were talking about how varied the role was (from finance to HR to strategy), as well as opportunity to work flexible hours and locations (they want to move away from the 'in the office 9-5' model). They also didn't have a problem with me continuing to run my businesses on the side, as long as it didn't influence my quality of work. The package was a pretty decent market-related one, and I felt that this might just work out. As the story goes, they offered me the position on the day of my first interview, and I accepted.
I started two weeks ago (hence no posts since then - taking some time to adjust to early wake-ups!), and am really starting to feel like this is going to work out nicely. The office is a great environment - friendly yet professional - and I'm starting to get a decent feel for the role (check them out at www.noxrentals.co.za). Once my training is completed in the next few weeks, I'll be able to do some work from home, and adjust my hours as I see fit (which is great!). Importantly, I've realised that they definitely weren't lying about the variety of the role - no two days are the same, and I can foresee plenty of interaction and involvement at the executive, strategic level. What I really wanted to write about, though, is how the extra salary is going to be extremely useful...
Before I took this job, I used to make pretty decent money for a guy my age, working at his own pace. My limo company (www.chariotgroup.co.za) is now very established, and has grown very nicely over the years, and I also have income coming in from a part-time accounting contract with a nightclub. Now, however, I am bringing in a good salary on top of that. Most people would be very happy with just the salary, and it would allow them to live very comfortably as well as save for their future. As my expenses are very low (I still live at home, and am quite careful with my spending) I have always been able to live comfortably up until now, and still save up for new business investments, as well as my future. Now however, I can kick my saving and investing into hyper-drive! Here's my plan...
Where most people in my position would immediately go out and upgrade their cars, pay for expensive holidays, buy a bigger place etc., I am going to continue to live as frugally as I did before. I might treat myself here and there, but nothing crazy. My main goal now is as follows: By my 30th birthday (I've only recently turned 25), I want a million bucks in a liquid investment. This can then be used for anything, but at the moment my plan would be to buy an annuity of sorts, which will pay out monthly for the rest of my life. Obviously it's subject to a number of factors, but as a general guide, a million bucks would be able to get me close to ten grand a month for pretty much forever. Once I'm thirty, I'd then be able to use that monthly income for whatever I feel like. It could boost the income that I'm earning then, or it could be used to fund a new business, or expand an existing one, or I could decide to not work at all and live off it (albeit frugally). The point is that it would be completely passive income, and it would come into my account every month, pretty much no matter what. The beauty of it is that I will still be plenty young enough to enjoy the extra spending money or free time, whichever way I choose to go.
I've calculated that, with a conservative return of roughy 10% a year, I need to put away 12500 bucks a month to reach my goal. For now, I'm gonna go for it. The worst that could happen is that I change my mind a year or two from now, and I have a nice nest-egg to play with. This twelve and a half grand won't change my living standards too much either. I can still go out for beers with the boys, buy myself lunch when I feel like it, fly up to visit my girlfriend once a month, and do all the little things that make life worth living. In fact, I should still be able to upgrade my car if I feel like it (although I probably won't for a while - I just love her too much)! Some might say that I've fallen with my ass in the butter, but to them I say that I've worked for absolutely everything I have, and never take anything for granted. It might seem easy now, but I put in the leg- and grunt-work when I needed to, whether it was in building my businesses or getting my qualifications. And let me also remind you that I now have to balance a demanding full-time job with running a successful business - so I don't expect it to always be smooth sailing...
I will let you all know how the 'plan' unfolds, so watch this space, but I can tell you right now that it's gonna be interesting. I'm pretty damn excited, so here goes nothing!
Since 2003, I have worked for myself. Before then I was studying full-time, but I then started my first company at age 19. It was at first a great little sideline, and then developed into quite a successful business, which took up most of my time once I'd finished university. Since 2005, when I graduated with my Bachelor's degree, I have pretty much lived the archetypal small business entrepreneur's life: Wake up when I want to; work like crazy during busy periods; take time off during slow ones; dabble in a few other projects as I see fit; spend time shooting the breeze with other like-minded peers; basically run my own life and my own show. Until recently, I felt that that was a very fulfilling, successful life.
Like most entrepreneurs do at some point, though, I started getting a little restless earlier this year. For a guy my age, I was making good money, had few expenses, made time for myself whenever I wanted it - but I felt I needed a new challenge. I wanted to try getting into the corporate world, where I could expose myself to bigger businesses, apply the knowledge that I've built up, and basically learn as much as I could. I did have my reservations, though: early mornings, working on someone else's clock, less time for my own businesses, restricted holidays, etc. Nothing worthwhile is ever easy, though, so I thought I'd give it a go. I went to a couple of interviews, and was offered one or two positions, but none of them really grabbed me. That was until the end of January...
I had spotted an ad in the newspaper for a Financial Manager position at a fast-growing tourism concern. I am involved in the tourism and leisure industry through my limo company, and have the Accounting and Finance knowledge which was required, so I went for an interview. What really piqued my attention was how the interviewers (the MD and the FD) were talking about how varied the role was (from finance to HR to strategy), as well as opportunity to work flexible hours and locations (they want to move away from the 'in the office 9-5' model). They also didn't have a problem with me continuing to run my businesses on the side, as long as it didn't influence my quality of work. The package was a pretty decent market-related one, and I felt that this might just work out. As the story goes, they offered me the position on the day of my first interview, and I accepted.
I started two weeks ago (hence no posts since then - taking some time to adjust to early wake-ups!), and am really starting to feel like this is going to work out nicely. The office is a great environment - friendly yet professional - and I'm starting to get a decent feel for the role (check them out at www.noxrentals.co.za). Once my training is completed in the next few weeks, I'll be able to do some work from home, and adjust my hours as I see fit (which is great!). Importantly, I've realised that they definitely weren't lying about the variety of the role - no two days are the same, and I can foresee plenty of interaction and involvement at the executive, strategic level. What I really wanted to write about, though, is how the extra salary is going to be extremely useful...
Before I took this job, I used to make pretty decent money for a guy my age, working at his own pace. My limo company (www.chariotgroup.co.za) is now very established, and has grown very nicely over the years, and I also have income coming in from a part-time accounting contract with a nightclub. Now, however, I am bringing in a good salary on top of that. Most people would be very happy with just the salary, and it would allow them to live very comfortably as well as save for their future. As my expenses are very low (I still live at home, and am quite careful with my spending) I have always been able to live comfortably up until now, and still save up for new business investments, as well as my future. Now however, I can kick my saving and investing into hyper-drive! Here's my plan...
Where most people in my position would immediately go out and upgrade their cars, pay for expensive holidays, buy a bigger place etc., I am going to continue to live as frugally as I did before. I might treat myself here and there, but nothing crazy. My main goal now is as follows: By my 30th birthday (I've only recently turned 25), I want a million bucks in a liquid investment. This can then be used for anything, but at the moment my plan would be to buy an annuity of sorts, which will pay out monthly for the rest of my life. Obviously it's subject to a number of factors, but as a general guide, a million bucks would be able to get me close to ten grand a month for pretty much forever. Once I'm thirty, I'd then be able to use that monthly income for whatever I feel like. It could boost the income that I'm earning then, or it could be used to fund a new business, or expand an existing one, or I could decide to not work at all and live off it (albeit frugally). The point is that it would be completely passive income, and it would come into my account every month, pretty much no matter what. The beauty of it is that I will still be plenty young enough to enjoy the extra spending money or free time, whichever way I choose to go.
I've calculated that, with a conservative return of roughy 10% a year, I need to put away 12500 bucks a month to reach my goal. For now, I'm gonna go for it. The worst that could happen is that I change my mind a year or two from now, and I have a nice nest-egg to play with. This twelve and a half grand won't change my living standards too much either. I can still go out for beers with the boys, buy myself lunch when I feel like it, fly up to visit my girlfriend once a month, and do all the little things that make life worth living. In fact, I should still be able to upgrade my car if I feel like it (although I probably won't for a while - I just love her too much)! Some might say that I've fallen with my ass in the butter, but to them I say that I've worked for absolutely everything I have, and never take anything for granted. It might seem easy now, but I put in the leg- and grunt-work when I needed to, whether it was in building my businesses or getting my qualifications. And let me also remind you that I now have to balance a demanding full-time job with running a successful business - so I don't expect it to always be smooth sailing...
I will let you all know how the 'plan' unfolds, so watch this space, but I can tell you right now that it's gonna be interesting. I'm pretty damn excited, so here goes nothing!
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