I really enjoy this non-work. Finding more time for it is one of my resolutions / goals for 2011. Here is the complete list… a rough draft after some thought:

Goals for 2011
1. Reduce non-tax-deductable debt to $200,000. Current non-tax-deductable debt consists only of mortgage ($302,195.88 as of November 14, 2010) and line of credit ($9,485.30 as of December 28, 2010)
2. Increase net liquid assets by $40,000. Current net liquid assets are estimated to be $282,000 comprised of investments at Canaccord ($230k net), Assante ($45k net) and Other ($7k net cash and Cooperators)
3. Maximize RRSP contributions
4. Enjoy deeper, more connected relationships with the ones that I love
5. Expand my social circle of casual friendships
6. Spend time with family
7. Practice yoga
8. Eat well
9. Curb my bad habits – including drinking alcohol
10. Play squash
11. Reduce body weight to 175-180 lbs; BMI of 19-25
12. Delivery on 4 company goals (increase sales to 4.2M, CAGR of 11.5% over 3 years, Gross Margins of 30%, Net Profit of 10%)
13. Support amateur sport
14. Write often – articles, blog, etc.
15. Create positive affirmations and read them daily
16. Create harmony at home and in the office

What’s interesting yet predictable about last minute shopping is that it happens every year. Why is that? Well, as the saying goes, if it wasn’t for the last minute nothing would get done.

Thus, the importance of deadlines. If it wasn’t for the hard deadline of December 25th, holiday shopping for some would drag out to January or February. For others, it would never get done at all.

In business and in life, deadlines are key if anything is ever to get done. People only do what they want or what they must do. And they only do it when deadlines are in place. That’s why everyone buys their xmas gifts before Christmas Day – the greatest deadline of all.

It all seemed so impressive – but then I saw the infomercial.  Wow.   Like so many others, I was sold.  This is a well-polished, professionally produced storyline that makes you WANT TO BUY the product.  Or maybe, I should say: make you buy into this high energy, health-conscious lifestyle.   

I don’t know much about the company behind the infomercial but one online source claimed they’ve sold over 500,000 units.  At $139 an order, that’s $69,500,000.00 in revenue.  Impressive!

You really need to see the entire infomercial but here’s a short teaser ad:

Another dentist appointment???  That excuse is getting old.  I’ve probably heard it 3 times from him in 2009 already.  Come on.  Who are you fooling?

If you are going to be late to work or, for whatever reason, need a “personal day” be creative with your excuse.  The more improbably, the better… at least in my books. 

Here’s an employee from Jack-In-The-Box letting his boss know that he’s running late for his shift.  10 out of 10 for this guy!

http://ca.youtube.com/watch?v=UuSjJsbgRtg&feature=related

1. Political Will
2. Ability
3. Exports, Exports, Exports…

Political Will – China has a good thing going right now… it held a successful Summer Olympics despite the rush of many construction projects (which resulted in the unpublicized deaths of Chinese workers) and a “moratorium” on criminal executions (although it was estimated that 375 executions were held during the Olympics).  However, on the world stage, China seemingly held its own and its citizens are generally proud of the 2008 Olympics.  What China doesn’t need right now is civil unrest, protest, or general dissent.  The Chinese government will do whatever is necessary to hold off any political unrest.

Ability – China holds approximately two trillion $USD in foreign currency cash reserves.   Trust me, if this country wanted to make an impact it could – and it could do so tomorrow without an election and without the consent of the house or senate.  This is a unilateral decision and the money is already in the bank.

Exports, Exports, Exports – What would motivate China to help the world economy?  Well, the Chinese want to grow their economy 8% this year – down from double digit growth.   To maintain this growth curve, Chinese exports cannot sag.  Guess who is the #1 consumer of Chinese goods?  The U.S.A.  Trust me, China will do its parts to stimulate the U.S. economy.  Watch in the coming days as China dwarfs the U.S. spending on “economic recovery”.

Here, the carwash is running near full capacity in its busiest season – during the summer.  But sales drop off significantly in the winter months.  The carwash is simply under-utilized.

Businesses with a high fixed cost and small variable cost (like the carwash business) need to to maximize the utilization of their assets.  But how do you do this when there is a natural seasonality to your business?  We need to get creative and start thinking differently about the problem.

Creativity

Petro Canada is doing this with some of their superwash locations.  Starting this winter they are promoting unlimited carwashes for 90 days.  The unlimited pass costs $139.99 plus tax.  This promotes higher utilization (and revenue) while addressing the customer’s common concerns about winter carwashes – that the snow, rain, salt will quickly spoil a clean car.  Don’t worry – with the unlimited pass you can simply go back and wash it again.  A creative offer allows Petro Canada to maximize its under-utilized assets.

Examples and Questions

What can we do with all of the schools – whose building are empty during holidays and summer months? They are not in use 25% of the time.

What about the 1000′s  and 1000′s public telephones – which occupy prime real estate and have connectivity to the PSTN (and internet)?  Public payphones are longer used because of the pervasive use of cellular phones.  They sit idle and under-used.

What about all of the vehicles that travel highway 401 every single day?  So many SUV’s and minivans have seating for 4-6 additional passengers but make the daily commute with only a single passenger.

Lots of websites make money collating (free) user-generated content.  That’s exactly what AllRecipes.com does.  They claim to be the largest vertical-based social networking site – with more than 50 million unique visitors each year.  Although started by cultural anthropology grad students, it is not surprising that Reader’s Digest bought the site for $66 million.

I’m munching on free olives, pickles,  and celery sticks.   So are my cohorts.  There are more than a hundred of us enjoying the “free” hospitality.

I’m looking around right now.  Two things jump out immediately.  First, the TIF has finished and this place is packed with freaks (no offence) but I can tell right away that I am surrounded by the artistic crowd.  Many of today’s Aeroplan “gold” are sporting tattoos, vintage suits, and are passed out because they partied all night long.  Hey, I don’t blame them!  Second, I count the staff… I do this almost everywhere I go (because overhead walks on two feet).  There are 8 staff members cleaning up after us slobs plus three at the front desk.

Is servicing frequent fliers a money-sucking business?  What’s the value of customer loyalty?

Here is my very non-scientific calculation of my 2009 Benefits with Air Canada (for example);

Cost:

Currently, I have “saved” more than 100,000 miles.  But for the 2008 YTD activity, I have 40,113 miles or 33 flight segments.  This compares to 50,890 / 34 segments for 2007.  After a quick glance, my guess is that my average flight is 1,300 miles.  I believe there is roughly a 1/1 ratio between dollars spent and points accumulated.  I know that I’ve received some free points along the way (e.g. 2,500 for “on board compensation” read: poor in-flight service) but I’ve also paid a premium (e.g. $100 of ESSO gasoline purchases for 33 miles).  So my guess is that I’ve spent $40,000 for the 40,000 points that I’ve accumulated.

The Benefit:

What do I get for my “Elite” status?  Benefit vs Value.

Elite Status Card = $0 based upon the name alone.  Maybe I’m stingy.  So what.

2 x “Special” System Wide Upgrades = $200 based upon the fact that, generally, I can only use one of these per year – they are subject to “blah, blah, blah…”  My $200 is based upon Food, Beverages, and Convenience.

2 x “Regular” System Wide Upgrades = $0 based upon the fact that I have NEVER, EVER, been able to use one of these since becoming a member in 2000.

4 x “North American” Upgrades = $0 based upon the fact that I have NEVER, EVER, been able to use one of these since becoming a member in 2000.

Air Canada Privileges = $500 for a variety of miscellaneous benefits ranging from personalized luggage tags to lounge access, to additional luggage allowances to priority stand-by, check-in, and boarding.  Many fees have also been waived for me because I’m “ELITE” status…  True or not, I’m giving this some value.

Star Alliance Gold = $100 for cross-over benefits with aeroplan partners…  I smuggled guests into the LOT Polish Airlines with my aeroplan card.  Everyone drank for free.

Other = $100 there are a few other minor perks but nothing that CASH can’t buy and I allocate $100 for these conveniences.

Total = $900 or 2.25% of my spending

Bottom Line?  Would I give up my aeroplan benefits – as described above – to save $900?  It is tempting… MAYBE if these were personal after-tax dollars… but they are not… so I will continue to bill my company and insist upon Air Canada flights. 

Nice work Aeroplan for building a profitable loyalty business!

In one example, Anderson explains that a typical BlockBuster store carries 3,000 DVDs but online retailer Netflix carriers more than 60,000.  Both rent out the “hit movies” but due to constraints on shelf-space, BlockBuster can’t afford to stock the more niche films.  They just don’t sell well enough.  Hits = 1000′s of potential customers.  Niche = one’s and two’s.

The one’s and two’s add up over time. 

Netflix’s distribution model allows them to carry a bigger library and capture all the one’s and two’s.  Anderson says that we are approaching a situation where mainstream and niche will split the market 50/50.  The power law looks like this:

Lately, I’ve been thinking more about this model and how it relates to sports equipment.  In a typical sports store you will find golf, baseball, soccer, hockey – some of the most popular sports played in Canada.  But what about the more obscure participation sports?  Where do those athletes buy their equipment? 

Who serves the community of Mountain Boarders, Curlers, and Squash Players?  Niche, I know.  But combined they equal the same number of soccer players or swimmers.  (By the way, I didn’t know what Mountain Boarding was… but according to Statcan there are 167,000 mountain boarders in Canada)

Not only is there need for a someone to serve the niche markets but it is imperative.  And it won’t be done through traditional retail and distribution models.

The market is huge.

Second Life boasted that it has generated more than $80 million – of real money – from its Currency Exchange (allowing users to swap real cash for Linden Dollars).  Online players are buying everything from virtual villas to virtual weapons.

Something for everyone.

There’s something for everyone in the virtual world.  Digitalturf.com allows you to own a stable of virtual racehorses.  The top earner has lifetime winnings $945,340.  (fluff)Friends is a Facebook app that allows members to care for a virtual pet.  Get some virtual currency and you can buy a virtual treat for your virtual pooch.

Global trickle.

A recent study explored how people from poor countries are making money by selling “virtual products” to online gamers.  According to researchers at Manchester University, the industry employs 400,000 people.  What was originally thought to be a cottage industry turned to be much larger and more global than expected.