I Just Have to Share This!

Posted on August 18, 2020 by PietMar

It is the journey that counts. It is the long term profits that count. It is the consistency that counts. Nothing else matters!

Whether it is a relationship, a unit trust, a company or a Forex trade, it is the long haul that matters. I always get such an exasperated feeling when the investment world gloats in a 3 month or even 6 months return. It is a waste of time!

Show me your annual returns for 10 years against inflation, against the market. THAT is what counts.

‘Nough said!

Now watch this!

https://www.youtube.com/watch?v=u0XMmp5H7Wo

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The Top 10 Short Term Insurance Companies

Posted on August 18, 2020 by PietMar

How would you rank the top 10 insurance companies?

  • Market capitalization
  • Number of clients
  • Reserve funds
  • Number of employees
  • ?? – Please comment below, I would love to hear your thoughts

My Background

I am a short term insurance broker in Cape Town, South Africa. My business is a business within a business. The reason is simple. I want to offer personal service. There must be a personal relationship between me and the client, because that is what I like. At the same time, this limits my business, should I run a one-man-show. Now I am part of a very big brokerage which gives me access to many insurance companies. It also gives me an infrastructure of claims-handlers and underwriters. It is a win-win for everybody – especially the client.

This is important. Since I regularly see my clients in social settings, I want to look them in the eye knowing I gave them the best deal!

How I Choose the Top Insurance Company

This is how I choose the top insurance company.

  • Policy Wording: the policy wording must not be limiting and have a lot of exclusions. For instance, one of the things I look for, is that your household content should be covered away from your house as if in your house.
    Real Life Example:

    A client is on vacation and buys a laptop. She drives home, puts the laptop on the dining table (unopened!) and goes for a stroll on the beach. Coming back she discovers a burglary and the laptop gone.

    That laptop was paid out under the content section of the policy!

    I read and compare policy wordings.

  • Premium Income:  The company must be big enough in terms of premium income and reserves that I am confident that it can pay claims, even when there is a major disaster. The principle of insurance is that many people contribute small amounts so that there will be enough money to cover a huge loss. There must be enough money to pay for that loss.
  • My Resources: The benefit of how I work, is that I can go to a colleague or one of our claims handlers and ask them: “What is your experience with company Y? How do they settle claims.” You see, I can usually warn a client when a claim is not a claim. Sometimes claims are borderline – I will inform the client even when submitting a claim. But when a claim is a claim, I don’t want a company that starts asking silly questions or who suddenly requires reams of paper to confirm a claim. If it is a valid, clear cut claim it has to be paid promptly.
Real Life Example:

in one specific niche, I have the option of three companies, A, B and C. C has the best policy wording by far. I know the CEO and before I started using them, I had coffee with him. Since I am the only one at the office in this niche, I could not ask references.

After the coffee, I place a client with with insurer C, disclosing the fact that I have no track record, other than the CEO. Then a claim arises. It is no doubt a claim. But the claims manager is too clever by far and starts coming up the most preposterous reasons why it is not a claim.

Fortunately the CEO steps in, the claim is paid and I move the client to another company.

The Non-Essentials

What I do not look at.

Premium: Obviously premium is important. But it is not the main consideration. This is over simplified, but consider this. I am living in my house for 23 years. Whether it is company E, F or G, the risk is exactly the same. I disclose exactly the same claims. Why would the premium vary by a huge amount?

Real Life Example:

One of our clients cancels a policy (with some attitude) because one of the direct insurance companies offers him a R200 saving.

Before the end of two months he is back. He had an accident and discovered the excess is one ridiculous amount.

Is it worthwhile to save R100 on premium to have an excess two or three times higher?
  • The Bells and Whistles: The only add on that I am really interested in, is the assist. What assistance do I get when I am in a car accident? Do they offer home assist when the geyser goes over a weekend, for instance? What is the quality of that assist? I am not interested in cash back, clubs, etc. Short term insurance is there to cover my risks. That is what it should do.
    Real Life Example:

    I test a company by taking my personal insurance to them. One Sunday afternoon we go to a concert in Stellenbosch. It is rainy and the headlights are on as we drive. My wife is involved with the concert and I read while I wait.

    Somebody warns me the headlights are on. I realise the battery is flat.

    After the concert, while I wait for my wife, I phone assist. I wait. Fifteen minutes later I phone again. No progress. After 45 minutes my wife comes back. We are the only car on the parking lot. Fortunately I can flag somebody driving by to help me.

    As my luck would have it, Monday morning when I walk into the office, the person in charge of that assist is visiting us. I tell him my experience. He answers: “But you only pay R5 per month for that service.” The point is, I pay for it, you have to provide it. Fortunately all this happened in a managers office. Two months later there was another company looking after assist.

    If you have it, it must be reliable.

Conclusion

You have insurance to protect you against the bad things that life brings on our way.

When the wind blows the roof off, being member of an exclusive insurance club is irrelevant. What matters is how quickly and efficiently the insurance company will settle your claim and help you.

When I select an insurance company for a client, I try to optimize premiums, cover (benefits) and service.

And that is my top insurer for that client!

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Why You Should Always Use Your Own Insurer

Posted on August 17, 2020 by PietMar

It often happens that somebody is innocent in an accident. Or believe they are, which is not the same thing.

Then they want to put in a third party claim against the guilty party’s insurance. This is a bad idea for two reasons.

CASE 1

I have an appointment with a prospective client. When we discuss his insurance needs, he tells me he had an accident. As a civil engineer on site a sub-contractor reversed into his parked vehicle. He reported the accident to his insurance, but then decided it will affect his no-claim bonus and therefore put in a third party claim against sub-contractor’s insurance.

He was about to settle for R8 500. I advised him not to settle, it was day 28 and the claim must be submitted within 30 days. We could wait with the broker’s appointment until the claim was settled.

He followed my advice and re-opend the claim with his insurance. When the panel-beaters started opening up his car, they discovered more damage. The total claim increased to R45 000. That is a far cry from R8 500. And, as you know, once you settle for full and final settlement, the difference is for your account.

The Story Continues

Insurance Covers You

Insurance Covers You

This story has a sequel. His work took him to Oudtshoorn. He wanted to buy a new car, but the salesman said he cannot trade in his vehicle, since the accident damage was not repaired properly. I contacted the insurance company, an assessor agreed the work was shabby and the car was repaired properly.

I think that was good advice to claim from his own insurance, don’t you think?

CASE 2

This is the next reason you claim  from your own insurance.

The third party phones me and says my client is guilty and he wants to put in a claim against my client. I “advise” him to claim against his own insurance. But it is a no claim bonus, excess and cash back bonus and what have you and he wants to claim directly.

He wants to claim directly. So this is what I tell him:  “Make a note. My best advice is to claim against your own insurance. You are not my client I cannot really advise you, and I do not handle your claim. In fact, our office does not even do it. It goes to the legal department, somewhere. You are not their priority. You do not pay us a premium, so you are not a client. You are a claimant.

“But, since you want to do this, send us a letter of demand and three quotes.”

“But my insurance only requires one quote!”

“I just told you we are not your insurance! If you claim from your insurance, they only require one quote and their legal department will work with our legal department. But now you want to do all that yourself. We need a letter of demand and three quotes.”

As time goes by and he deals with the legal guys, he phones again. “If I knew it was going to be this much trouble …” ? Remember I warned you? You did know. There is nothing I can do. That is the process.”

(As jy nie wil hoor nie, Boeta! Sometimes people do not have their own insurance and my heart bleeds for them! It is not a process I would choose for myself).

Your No Claims Bonus

Let me put your mind at ease about No Claims Bonus.

Cashback BonusFirstly, it is only your no claims bonus on the specific vehicle that will be affected. That means it is only the premium on that vehicle that is affected. Normally not a huge amount.

Secondly, your insurance will start the process to recover their money. When they do recover the money, they will also try to recover the excess you had to pay. Sometimes it takes a long time.

The moment the recovery is finalized, your no claims bonus will be re-instated.

CASH BACK POLICIES

My opinion on Cash Back Bonuses:

Since people normally only die once, I can see a benefit for a cash back on a life policy.

But please do not be so naïve to think the cash back is free! Show me any company who can give you 5% or 10% or more back from their turnover or profit and I will show you a company who over charges. Business is too competitive to work at these extreme margins.

And a cashback will only prevent small claims that people can easily pay from their own pockets.

So the cash back is another insurance policy that you pay for. If you do not claim, then the insurance looses the bet, and you get a very handy cash bonus. Often it is a life saver!

(If you do not believe me that you pay for the cash back, ask for a quote with or without a cashback.)

Penalized Once, Twice, Thrice

A without cashback policy penalizes you in two ways for an accident: you pay an excess and loose 2 years on your no claims bonus.

If you have a cash back policy, you loose your cash back, too! Even if it is on the last day before you become entitled to the cash back! Triple Whammy!

This is just my opinion, you may feel differently. That is fine by me. If you have received a cashback or two, you will think I am a fool. That is also fine by me!

That is why I will never go for a cash back policy. Last time I did a quote on a life policy with and without cash back, I decided I can do much better by saving the extra premium with Capitec. Only I did business with a company with no cash back.

Since I am writing about short term insurance, let me add that the companies that disclose the cost of cash back options, it is not a significant premium.

 

 

 

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Lockdown Day 143 – 15 Aug 2020 Faith, Trust and Science

Posted on August 15, 2020 by PietMar

Day 143, our postal box number years ago and my girlfriend’s (now wife) secret code.

I EAT SUGAR

Let’s start off with feedback. I eat spoonsfoolls of sugar (not to make the medicine go down), because I like it. It has noooooo effffeeccts on me, ay promize usesall. That is a joke, because sugar does affect me, I avoid it. But I often use this when people boast about what they do and it does not affect them.

This whole paragraph just to say – lockdown is boring, I think I am doing OK, but it might be like the sugar – I do not notice the effect.

BACKGROUND

Some background for this post. Yesterday a Facebook friend posted something about God and atheism. I did not read the article, but commented that his comments resonates with me. I suggested a coffee to talk about our thoughts.

GROWING UP

The background goes back much further. I grew up in George and attended the George Moeder Gemeente Church. There was a very influential minister, Rev Jordaan. He had a huge influence on my own faith an beliefs.

One day, as I was thinking, I realized that through the years there were influencers in the Dutch Reformed Church (all churches, probably, but I only have experience in the DRC). People like Prof Bennie Keet, Johan Heyns, Profs Willie Jonker, Flip Theron and Danie Louw (I studied under the last three). Thinking like that, I realized that each generation had their theological “heroes.” And at which seminary they studied played a huge role in their theology. In my youth if Prof Bennie Keet said something (other than that apartheid is wrong!) it had more authority than the Bible. Later it was Prof Heyns or Jonker, Theron or Louw, depending on your inclination.

Thinking of this, I could not help to wonder how my beliefs would be different, if I grew up in a different congregation. Or if our ministers studied at another seminary? Once you seriously consider this thought, the next step is what if I grew up in another neighborhood? Athlone, for instance, which, I think, is predominantly a Muslim environment? Or Seapoint, which is a more Jewish environment?

It seems to me we put a lot of emphasis on something that is not so clear cut as we would like to believe! I will come back to this just now.

SCIENCE

This brings me to the science part. Karl Popper (I think) said that science is not about proving things right, but about proving it wrong. All metals expand with heat. We hold onto this until science finds a metal that shrinks when heated. Science deals in facts. That is why I don’t need faith when dealing with science. There is a huge difference between “I know” and “I believe.”

That is one reason why the whole fight between science and religion is such a waste of time. It is time we escape our dichotic thinking habits. I have written about the limitations of “either or” thinking before. No need to do so again. Science works with KNOWING, God is in the Realm of BELIEVING and faith. You will see why I avoid religion in a moment. Just hang in there.

THREE RELIGIOUS SYSTEMS – ONE ORIGIN

Let’s get back to the Christian/Jew/Muslim idea I left hanging earlier. Since I grew up in an Afrikaans Christian environment and Jesus was a Jew, I am not negative about Jews. Oh, as I grew older and gained experience, I realized that I was told a lot of things about Jews or the Jewish faith, that does not seem accurate in the real world.

 

Reading Rabbi Kushner’s books I look at Jewish Faith differently

Fortunately I had a few Muslims in my life, as well. If you allow them to, they will gladly share their beliefs with you. Don’t argue, listen and try to understand. You will be amazed how many times we keep the same fests, just with different content. The similarities also made me doubt the knowledge of some teachers in my life.

Here is the thing: Jews, Christians and Muslims share a history. We share at least the first 17 chapters of Genesis!  That alone should be enough to keep us tolerant of each other! This is a fact, no belief needed – we have three worldwide faiths with the same origin – therefore the same God! This must make us think.

RIGHT OR WRONG VS RELATIONSHIPS

Faith is about relationships. It is a relationship with God. Our relationship with God will reflect in our relationship with ourselves, each other and the world in general. Our relationship with God will determine our self-image, how we see our fellow humans. In my own life, I am often embarrassed by this statement! In the Christian faith we are called to be representatives of God in the world – God’s ambassadors, so to speak. Now I am even more embarrassed.

And this is why I steered away from “religion” earlier. Religion becomes a limiting container. Religion has a historical-cultural origin. Where faith is based on a relationship, religion is based on rules. Or perhaps beliefs. The Muslims “left” the story with Hagar and Ismael. But they were blessed by the same God who blessed Isaac! Christians left the story much later, but they claim the same blessing Father that the Jews and Muslims claim. We too often judge each other and fight with each other as if we are enemies. We are family!

Our forebears walked different trails and therefore we have different traditions. But the origin is the same. I envisage it as meeting up with another Maritz and asking: “where do you come from?” And we follow the lines until we say, “Yes, we are related from ages ago. My great grandfather and your great grandfather were brothers.”  Be kind to each other.

INFLUENCERS

Now let us get back to the influencers. Often denominations are built around influencers. Very often politics play a role in these splits. Beware of the combination of religion (notice I use religion) and politics. Beware of the combination of religion and an economic system. Beware of religion and nationalism. Dangerous combinations that caused many of our problems in the world.

The influencers are (thought) leaders. They strike a cord because they openly address a problem or they solve a problem. Or offer what seems a solution to a problem (and it does not only happen in the religious context!). Soon they have disciples. Often zealous disciples. That is when the problem starts.

ENTERS TRUST

Here is the trust part! Make sure that the influencer you trust is trust-worthy. The people we trust shape our thoughts and our beliefs. Our thoughts and our beliefs shape our lives. And our lives shape the world. Make your trust very expensive.

In a biography on Karl Marx the author opens by saying that the two figures who arguably had the biggest influence on the modern world had the same problem. Their disciples ruined their message. That goes for both Jesus and Marx!

FAITH IS NOT EMPTY

What am I suggesting? Simply this – faith is just that – faith – not science. This is what Hebrews 11 says:
1 Now faith is confidence in what we hope for and assurance about what we do not see.
2 This is what the ancients were commended for.
3 By faith we understand that the universe was formed at God’s command, so that what is seen was not made out of what was visible.

It is, amongst other things, a call to be humble.

ATHEÏSM – STILL FAITH!

And this brings me to atheism. I have an openness for atheism. Unfortunately too many atheists are more aggressive missionaries than some Christians. which often make me wonder about how strong their convictions really are! But since atheism is, just like theism, based on faith, there is no sense in arguing!  Sooner or later we will know what we know! I can wait.

I CHOOSE

Having said all this, I still choose Christianity. That is part of who I am. Jesus set a very difficult example – I mean pray for your enemies? Pray for the ANC? Well, to be honest, I do, but not like I think Jesus meant it.

But that is my choice not because it is right or better, but because I understand it. I respect your choice, whatever it is.

 

But can we agree on this?

As disciples of who-ever or what-ever we choose to belief in, let us live in honor of our beliefs.

And let our beliefs be honorable.

(And this is once again just one man’s thoughts. Leave your comments below. I would love to hear your thoughts.)

 

 

 

 

 

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Why All Accidents Must Be Reported

Posted on August 13, 2020 by PietMar

I often hear “but why must I report the accident? My car has no damage?”

My Car Has No Damage

Two weeks ago a client sends a Whatsapp “I just had an accident.” I Whatsapp back “get detail and take photos. I will email claim form.”

Later I receive another Whatsapp. “No damage to my vehicle. Other man says he will sort it out, because he is also guilty.” I respond that we will report the accident to the insurer and please report to police.

I collect the claim form from my client and submit the (possible) third party claim.

Two days later I receive a phone call. It is the third party. He expects my client’s insurance to repair his car. I explain to him that his best option is to leave that to his insurance company. (That is another topic).

From “I will sort it out, I am also guilty” to “You have to repair my car.” In a couple of days!

(As I am typing here, the third party’s insurer phones to find out where they can send the letter of demand! – So much for “I will sort it out!”)

Report To Police

You report an accident to the police. The law requires it. But your statement at the police also becomes evidence in the legal battle between the two insurers. Strictly speaking, if you drive into your own gate, you do not need to report it to the police.

You see, as in the above case, both parties could share the blame. Which means that the legal team can apportion the costs. One of the reasons you never admit guilt.

Download A MVA Record Sheet to Keep in Your Car

The Accident That Was Not Reported

Just after I started out in short term insurance, a colleague had a nasty experience. His client drove into a pole, but did not report it to the police. But there was damage to the car.

Car Accident

Car Accident

Then a third party claim comes in, claiming his client drove into the third party, caused damage and left the scene. It was a lot of trouble and lot of time wasted. Suffice to say it was a false allegation. Since then, I prefer to report all accidents to the police.

 

 

 

It Is A Strange, Strange World …

When I was a young boy, there was a song “It is a strange, strange world …” It is! Another client drives into the right rear of a parked vehicle. The impact is so soft, that only the lens of my clients indicator (left front) is cracked. It happens somewhere in Cape Town.

The third party claim comes in. The third party vehicle is hit on the right front. The damage is extensive. Fortunately there is a police report and a claim form submitted soon after the accident!

The the police report becomes very important!

Remember To Report To The Insurer

Please ensure that you know what your insurer’s time limit is to report a claim and stick to it. Some insurers expect claims to be submitted within 15 days, others within 30. Each insurer has its own procedure. Your broker will guide you.

Your insurer may repudiate a late claim, especially if they are prejudiced. I say “may” – why risk it?

And that is why must report all motor vehicle accidents to the police and your insurer.

 

 

 

 

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What To Do In Case Of An Accident – Free Download

Posted on August 6, 2020 by PietMar

Have you ever witnessed an vehicle accident? Even though you are not involved yourself? I think most people are in a state of shock.

I was RATTLED!

The times I was involved in a car accident (and fortunately it is not often), I was rattled. To put it mildly. The time I saw my wife involved in an accident I was so rattled I wrote down my own cell number when the 3rd party gave me his number!

To help you in a situation like this, I have created a downloadable document that you can keep in your car.

Prepare with Info

Remember to note the detail regarding your Insurance Company, policy number and the emergency number on the document, so that you have the number available. If you keep this info on the document, you will not have to start wondering where did I save that number? Is it under Insurance or Accident or …?

WHY YOU MUST PHONE THE INSURANCE EMERGENCY NUMBER

It is important to phone the emergency number. In the first instance, if you phone the emergency number, you know you are dealing with a reputable company (I can tell stories about new batteries replaced with old, new tires replace by old) when you just allow any tow truck to tow your car. The second reason you use the emergency number, is because then you protect yourself against any towing and storage costs. I can tell more stories about towing and storage costs!

(Commercial policies often do not have an assist facility. Then it is still a good idea to call the company emergency number. Towing costs on a commercial policy works a bit different from a personal lines policy.)

Remember to take a photo of Towtruck – name and registration number and record name and number of the driver.

NEVER ADMIT GUILT

It is in bold capital letters, but never admit guilt in any way in case of an accident! Even if you are guilty without any doubt, don’t even say “Sorry.” It has to do with an insurance principle of subrogation – the insurance company takes over your fight. And if you admit guilt, you can prejudice the insurance company and they may refuse to pay the claim!

LET ALL DRIVERS KNOW ABOUT IT

Lastly, inform all the drivers of your vehicle about this form and how to use it.

Remember to report the accident to the police and get a case number!

Happy and safe driving!

You can download the document here.

(You are welcome to share this document with your friends and print out as many as you need.)

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Lockdown Day 136 – 6 Aug 2020 – Lies, Lies, Lies

Posted on August 6, 2020 by PietMar

It is time for a Lockdown Journal again. As the economy opens up, I am getting busier. And I am working to implement many things that I started during lockdown. Hence I do not journal as often.

In the 1990’s I did an MBA. Many people think an MBA is the cat’s whiskers. I respect that opinion, because I know what I had to do to receive that MBA-degree. It also saddens me to tell you the truth. Reality is, MBA stands for Master of Bugger All. Even so, I am glad I did that studies, because it opened my mind like nothing else before. It exposed me to many subjects, and I did not become a master of any of them, but I learnt enough to think critically.

Don’t worry, this is not another conspiracy theory. It is a call to critical thinking! That will protect you against conspiracy theories

SUBTLE MANIPULATION

Right at the beginning of the studies, we did a course in Communication. That was interesting, especially that part where we looked at Opinion Polls and Newspaper reporting. It is amazing how a single word can slant the interpretation of a question or a news report. It is actually scientifically proved with numerous studies. I will not even go to the impact of photos to slant a report. We are subjected to this daily and may not even be aware of it.


As an example, just look at the photographs that go with a report. The easiest way to slant a reader negatively is to have an “ugly” photo of somebody with the report. You see the photo first (that is not an advert!) and the emotions go up. You are put in a frame of mind before you read the article. The photo is intended to get an emotional reaction.  If you want examples, just look at Trump and Helen Zille. In fact, just by looking at the photographs, you can get an idea where the publication stands in relation to the person in the photograph. Go check it out. And remember: there is no such thing as objectivity.

But, unfortunately, I never became a Master of Communication. I can look critically, though.

DAMN LIES AND STATISTICS

The other subject that I wish I could be a Master in, was Statistics. Alas, it will never be. But I did learn this – any average without a Median and Mode with preferably a Standard Deviation added, is worthless.

(You better check my statistics, as I am honest about my abilities!)

How Average is AVERAGE?

Let me illustrate: we have the numbers 4, 2, 3, 2, 5, 2, 17 = 33. Average is 35/7 = 5. Can you see how the 17 skews the average?  If we order it like this 2, 2, 2, 3, 4, 5, 17, it is easy to see that 2 (it appears 3 times) is the mode (it appears most frequently) and 3 is the median (it is smack dash in the center of the array). You understand the problem with averages? Yes, I know, everybody thinks their children is “just (above) average.” Unfortunately somebody must be a 2 to compensate for the 17 in that average!

statistics can lie

What Matters?

Here is another thing that drove the economy to where it is during lockdown. I call it manipulation by numbers. No matter where you go, 250 000 is a lot of people. As I am writing here, Worldometer says there are 18,983,280 Corona cases in the world. That is a half truth! There are 12,173,401 RECOVERED cases in the world. That means there are currently 6,098,566 ACTIVE cases in the world with 711,313 deaths. No, it is not a lie, it is just a skewed truth! I am not saying Worldometer is telling half truths! They just give the figures and I rely on them heavily. I am saying the people shouting out 18 million Corona Cases at the top of their voices are telling half-truths.

Don’t get me wrong, I am not speaking lightly of Corona or anybody affected by it, I am just saying that numbers can be used to induce fear way beyond logic!

WHAT MATTERS?

In the above paragraph the only figure that really matters is ACTIVE cases. From a management point of view, the new infections is also important, because it show where we are in the process. It indicates what action we should take.

And the most important action all along was to protect the integrity of the medical system. It is up to the individual to protect himself and others. Wear your mask!

Let me rewrite that paragraph with the numbers – Worldometer says World Population is 7 804 050 500 and counting –

18,983,280 = 0.24% of total world population tested positive

6,098,566 = 0.08% of the world population are still active

711,313 = 0.01% of the world population has died (so far)

manipulation by numbers

Be critical

And now you also know why everything is expressed as “per million” – it makes it easier to notice the figures and work with it.

Once more, I am not making light of the numbers or the severity of Covid-19. It is by all means a deadly disease. It surely is worse than many other diseases. Losing somebody to death because of Covid is not just a statistic. Having somebody in hospital, perhaps dying and you cannot be there is traumatic. That is not just numbers. It is real.

My point is, if you look at my rewriting of the figures, do you think the panic was warranted?

And that is why I refused to follow the COVID-19 game like a 5 day cricket match. You can watch a 5-day cricket match ball-by-ball and even comment on every ball and stroke all day long. It is a pity 5-day cricket matches are not popular anymore, it is a lesson in strategy.

But if you watched COVID-19 unfold like a 5-day cricket enthusiast, you are probably now on Prozac!

THINK!

But, most importantly of all: I hope this journal will help you to look critically, read critically, think critically about everything, what you read in your favorite magazine or newspaper, about what politicians tell you and especially stuff you read on social media. Hell, some people cannot even recognize an outright joke!

So, what are your thoughts on this?


 

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So, You Want To Start Your Own Business?

Posted on August 3, 2020 by PietMar

Starting a business and being the boss is a fairly common dream.

It is not so easy to be the boss, though. There is a vast difference between earning a salary and paying a salary. In that difference lies a lot of different stress and responsibilities. And different skill sets.

Let us unpack this.

EMPLOYEE

Being an employee, you are paid for your skills. You trade your time and abilities for an income. Normally you are only responsible for doing your job according to your contract of employment and you have fixed hours. You pitch up for work, you put in the hours and you go home. You might not make a lot of money, but you have a certain freedom.

If you do not like the boss, you can resign. If you do not like the town, you can move. You are not really tied down.

Oh, I know about the frustrations. I have also formulated this rule:

Everything is easy to do for the manager who does not have to do it. Everything is difficult to do for the employee who does not want to do it.

BOSS

Being a boss is different.

Being a boss is very much like being a parent! You start a business and you have to “nurse” it daily and care for it. It is a 24/7 responsibility. Then, finally it starts crawling, get onto its legs, wobbly, but it gets walking. It is out of diapers. Anybody with children can tell you that a parent’s responsibility never ends.

That is being the boss. As the business grows, your responsibilities grow. You are responsible for every aspect. Yes, as the business grows, you may have sales people on the road. But guess who is responsible if the salespeople do not perform?

You may have a cook to prepare the food. Guess who is responsible if the cook falls sick or resigns or mess up? Yes, you are right – the boss.

WHERE LIES THE DISCIPLINE?

As an employee, you have rules. You have set working hours and the discipline is external. In other words, the boss checks that you do what you are supposed to do. The rules are enforced. You go to work, even on the days that you don’t feel like it.

Being a boss is different. The discipline must be external. Even when you don’t feel like it, you have to work. Only, nobody is going to force you to work.

The above may seem trivial, but it is of cardinal importance. It is easy to work and grind when everything is still new and you are excited.

Let me use an example relevant to online marketing. Affiliate marketing. You do that course and you are excited. You do everything according to the book. You find a niche. You find a product. You create the website and sales funnel. You put it out on Facebook ads. And you check the affiliate sales every morning. Nothing. Nothing. NOTHING. NOTHING! Can you persist? Without anybody putting pressure on you? When you make that first sale and then the order is returned and you are back to ZERO, can you keep going?

That is what it means to be the boss!

If you are looking for a business idea, head over to this website where there are more ideas than you can think of!

Business Ideas

IS IT A BUSINESS OR A JOB?

Many people don’t start a business, they just acquire a new job!

A mechanic once said to me:  “Decades ago we had slaves. They worked for food, clothes and shelter. Then slavery was abolished and we became employees. Now I work for food, clothes and shelter. The difference is all the responsibility is mine. Am I really better off?”

What do I mean with “they acquire a job?” It often happens with people who are forced to find a new job, after retrenchment, for instance. Many people will have to look for a job after the Covid-19 pandemic.

They start a small business. They are the magic in the business. They are chief, cook and bottle-wash. It is difficult to scale or grow the business, for various reasons. So they become boss and employee. Financially the business scrapes by and they do not make enough money to hire people to help grow the business. That is a bad place to be.

Here is another rule: “Everybody dreams about a small business. A small business is like a small motorbike. A 50cc motorbike is infinitely more dangerous than a 500cc. A 50cc motorbike is always going at its limits, unless it is parked. There are no reserves to pull you out of difficult spots. You might not want to run a corporation, but to have freedom, you need a big(ger) business, like a 500cc or 750cc motorbike.

If you can grow your business from 150cc to 1000cc, you can sell it and make good money.

A business is scalable – it can grow and allow you to appoint people with the right skills to do the things you are not good at. That way you can do what you do best and the business can grow. You can grow a business to the point where you can have time and money freedom. But that takes time. It takes much harder work than any employee will ever put in.

Having said all the above, I still think it is good to have your own business.

At some stage in my life I had that small take-away (that is how I know about the 50cc motorcycle!). I bought my cigarettes from another cafe owner who also wholesaled cigarettes. One evening we were talking about the pro’s and cons of being self-employed. He said: “I do not know how much I will earn from month to month, like I did when I still worked for a boss. But one thing I know. I am not going to arrive here tomorrow and then a manager is going to tell me: ‘Sorry, you are redundant. Please pack your desk.'”

If you can, start your business part-time. It will reduce the stress and allow you to acquire the skills you need to run your own business. Skills such as marketing, selling, quoting for a job, closing contracts (the close the deal), financial management.

YOU ARE NEVER THE BOSS!

Nobody is ever the boss! Ultimately the client is the boss. Ultimately the client pays for everything. That is what business is. Business is find out what people need and providing in that need. Business is helping people. That is why I called my book: “Do it with pride and a smile.” I am proud of what I am doing – solving people’s short term insurance problems.

I am not the boss, my clients are. I have to keep them happy. But, as long as I keep them happy, and that is easy, because I like it, I am in business and have a good business!

To summarize. Being your own boss is a dream for many. Unfortunately, too many people don’t realise you cannot be a boss with an employee attitude. To be a boss requires certain skills, that is not part of most people’s education.

Fortunately, skills can be acquired and attitudes can change.

My ebook is simple and easy for people who have no business experience to find some business ideas for themselves.

I have started this website with business ideas and opportunities from all over. Head there and see if you can find something for yourself.

Business Ideas

Have questions? Please ask below.

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Poverty is a Mindset

Posted on July 29, 2020 by PietMar

I spent 9 years of my life as a minister of religion. It taught me a lot of things.

The lesson about wealth is the one I want to share.

We had a sub-economical housing scheme in the congregation. To live there, your income must be below a very low set level. In other words, it was a housing project for low income people. I purposely do not use the expression “poor people,” and you will see why in a moment. The point is, to live in this housing scheme, your income had to be very low. The stories are true – I was there.


Story 1:

During a house call, an elderly lady told me she is so glad that her son finally got employment and at a good salary, too. She showed me the pay slip. I felt guilty, because it was less than my monthly fuel bill. Then her son came in. I asked him about his new job as petrol pump attendant. He told me it is a wonderful job and he loves it.

I ask him why he loves it, thinking he will say something like “I like serving people.” Not so. He loved the job because it allowed him to sit in the sun most of the day. I kid you not.


Story 2:

There was an elderly couple who had two gardens one on either side of the path from the gate. One side flowers, the other side vegetables. When the flowers were blooming, they always sent some for my wife. The house was neat and clean. They were friendly and upright. I could never leave without a cup of tea. It never seemed like they lack anything.


Story 3:

Mother. son and grandson. The son had a relatively good job and therefore a relatively good income. Definitely better than Story 1. They live 4 houses down from Story 2. When you entered the gate, it looked as if the gophers lived there. Just holes and sand heaps. Old broken tricycles and other rubbish. Inside it was dark and dirty. Cockroaches running over my legs while we talk. I always refused tea. BUT they had the fanciest TV and hi-fi set. Always made me think about something I think Robert Kiyosaki wrote. I think he said his tenants can afford much better TV’s than he can.

Story 4:

We have an elderly widow lady in the congregation. She lives in a big house with a big erf. She cannot keep the land clean. And finding somebody to do it is not something she wants to do at her age. I think I might be able to help.

There is an unemployed man in the housing scheme. I go to him and tell him I will give the seed and tools. If he cultivates the erf and plants the seeds, he can sell it and earn some money. He is very enthusiastic and we drive there so he can see what it is all about.

I provide tools, I buy seed and I meet him there. He starts preparing the ground and I go on with my work. Later the day I drop by to see what is happening. Tools gone, seed gone, unemployed man gone. When I catch up with him he sold the tools and seed. “It is too much work.”

Story 5:

My wife and I drive down a street leading towards the housing scheme and I see two women walking with bags. I recognize them as congregants and offer them a lift. My wife asks where they are coming from. They reply that they have been to the “welfare” for food and clothes. They offer the details. They did not feel like working any more and resigned. Now they walk to the welfare when they need something and sit at home. “A much better life.”


CONCLUSION

My conclusion, which has been confirmed over the years, are that wealth and poverty has got nothing to do with money. It has everything to do with attitude and mindset.

Even qualifying to live there, the people in Story 2 were much wealthier than their neighbors. Attitude and mindset made the difference. Even being much older than my friend in Story 4, he did not mind working his garden. They had a pride that was obviously lacking in the people of my other stories.

There is a lack of ambition. Imagine that the best part of a job is to get paid to sit in the sun! Or the audacity to steal the reverend’s tools and seed! To even admit that it is too much work. Imagine resigning from a job to live off welfare and to boast about it!

Another thing that a lot of these people had in common, was that the houses were dirty (too lazy to clean?) and they rarely opened the curtains for light to come in. There is probably a lot of psychological and sociologic reasons for this. But what I describe is a common denominator!

Lastly, these people all (except story 2!) tend to be victims. There was always a story about why they are where they are. Somebody was an alcoholic. A father left. A boss treated them unfairly. They wanted to do something, but then somebody else treated them in the wrong way. Once they tried to do something, but then somebody laughed at them and they gave up. Always somebody else is to blame. Even if it happened decades ago.

They just never could see that the their own choices brought them where they are. They would blame things, circumstances and people for events that happened way back in the past for their current situation. If you are a victim, you are powerless. Being a victim exonerates you. It also enslaves.

When I heard this quote by Jack Ma of Alibaba, it brought back all these memories – and I sat myself down to have a talk with myself to make sure that I am not one of those that Jack Ma speak of!

What do YOU think? Please share your thoughts.

 

 

You will do well to read this post as well – it ads very good insights.

http://www.mattsapaula.com/jack-ma-lack-of-money-poor-people-and-procrastination/

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COVID-19 Info For SME’s

Posted on July 27, 2020 by PietMar

The COVID-19 virusand lockdown is disastrous for the economy and businesses. It is especially SME’s that suffer most.

I have compiled some info that I received into a folder that you can download.

In the pack is information about COIDA and workplace Covid-19 infections, extension of TERS, a guide by a law firm regarding sick leave and Covid-19, leaflet about tax relieve measures and a compilation document that I made with copies of articles and two useful links.

There is also some info from the FSCA regarding Business Interruption, pending the court cases.

I hope it ads some value for you.

My contact info is on the compilation document.

DOWNLOAD THE ZIP FOLDER HERE
Select Save as to save on your computer.

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