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The Concept of the "Virtual Organization" is Essential to Understanding
How New Business Works.
Tom Peters - the world's most innovative management guru and co-author of the international best seller, In Search of Excellence - ECommerce is not a technology play!
The concept of the "virtual organization" is essential to understanding how new business works.It is a relationship, partnership, an organizational and communications play; made possible by new technologies … Total Enterprise Reinvention.
On 11 September 2001… the terrorists conceived the ultimate "virtual organization" - fast, wily, flexible, determined. As the Boston Globe put it a few days after the attack, "In an era when terrorists use satellite phones and encrypted e-mail, US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that don't talk to each other"
"Virtual Organization" was the worse kind of consultant-speak on 10 September, 2001, especially with the ruins of the dotcoms littering the landscape. By late morning, 11 September 2001, "virtual organization" was the new dominate reality. On September 11, a virtual state proved that modern societies are vulnerable as never before.
Welcome to a world where "value" is based on intangibles… not lumpy objects, but weightless figments of the Economic Imagination
We favor independence vs
Technology links parts together vs
Bureaucratic vs
Slow but sure vs
Hierarchical vs
Very Real vs
Chunky Bureaucracies vs
Tangible Assets vs
Technology supported change vs
By the Book management vs
Meetings ad nauseam vs
Working with the same old gang vs
Employee vs
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We savor interdependence
the Network is the organization
Flat decentralized
Fast and sure
Network-Centric
very Virtual
Agile Alliances
Intangible assets
Technology driven change
e-Book improvisation
e-Groups as needed
expanding one's network teammates
talent |
The psychologists agree on very little. But they do agree on one primary thing: The strongest force on earth, bar none, is… my need to be in perceived control of my universe! And that's exactly what the Internet gives. It maybe not be the reality of total control, but surely the perception of total control.
Another way to merge smart is to merge … "virtually". The internet changes everything! "Virtualization," is the recognition that territorial size does not solve economic problems … Economic access must become the substitute for increasing domain. Simply put, a one-person enterprise, working out of a spare bedroom, can be in direct connection with the entire world and can have scope and scale - without owning a thing.
The point is clear: The new white collar software systems - ERP/CRM/ASP's - are nothing more than fork lifts for the mind. Using such new technology Wal-Mart, according to some research accounted for one-third of the productivity of the 1990's.
Outsourced - Anything and everything is being outsourced: research, customer service, HR, Finance, logistics….
You Need a Second Business
From John Sestina, CFP, ChFc, “Father of Fee-Only Financial Planning”, cofounder of the National Association of Personal Financial Advisors (NPAFA). Featured in, The Wall Street Journal, Kiplinger’s, Personal Finance, USA Today, Newsweek, Bloomberg, and others.
A "Sideline Business" is an ideal way to shift income to your children. Make them part owners and pay them from the profits.
Depending on how your second business operates, there are numerous formats:
- Use a partnership … Make your children limited partners with no say in management but a predetermined profit share
- Use an S corporation … In order to give your children profits without power you can issue nonvoting stock to them.”
If you have a second business you may need a business loan. The best kind of loan… Borrow from savings. Pay yourself back each month.
I believe you must have your own business.
- If you are an employee, you need a second business for the tax deductions
- If you make less than $50,000, you need a second business because you need money
- If you make more than $50,000 you a second business for tax deduction. You can shift income to children
- You can develop money –making interests and activities
- A second business will allow you to convert nondeductible expenses into deductible expenses, such as:
- Business expenses are not subject to the 2 percent threshold that applies to miscellaneous itemized deduction
Let Harry Tell You Why!
Harry S. Dent, Jr., has a mission to “Help People Understand Change”! A Harvard MBA, Fortune 100 consultant, new venture founder and investor, noted speaker and author of, The Great Boom Ahead, The Roaring 2000’s and The Roaring 2000’s Investor has once again has hit the nail on the head in, The Next Great Bubble Boom!
Dent uses his well documented ability to track and forecast to detail the Booms and Busts of the financial markets in the decades ahead while outlining the essentials principles of entrepreneurship that will under gird the upcoming wealth revolution. He describes a new society where economic and philanthropic development will go hand and hand!
Dent clearly states that, “The best single way to build wealth is to own your own business, especially one that can be systematically expanded and sold.”
He continues, “The second slogan for the new economy would be: Everyone a business owner – or a business within their company with profit sharing. The real revolution is about how we organize and do business, new models – bottom-up, not-top down in management; real time personalized service!”
In addition, “The only way to attract top workers will be to allow them to run their own business with in your company or to partner with them as outsource suppliers. Mission-based businesses … will progressively usurp many of the functions of the government.”
“The companies that use technology to reorganize more radically to meet the needs of this new affluent class will win the race for leadership in the coming decades. The computer, Internet and new information-based technologies will fundamentally change the way we manage, work, consume, and live. The existing top-down, managed, commute-to-work, and urban/suburban – based society can’t manage these rising demands and constraints.”
Unwittingly, Mr. Dent has used his research and to define the significance of establishing a technology driven “2nd Business.” By collaborating with other businesses in a Affinity Network a synergy is created that uniquely meets the demands of the marketplace in a wealth generating manner!
A business owner can profit from “Out Sourcing” marketing, accounting, procurement, IT, financial, management, transportation, HR, etc for their business to their “2nd business.”
If a person is not in business presently they can form one and become an Planner for a Network
1. They can choose the type of legal structure and who the owners are, control the cost of these expenses to maximize their tax effective return.
2. Once they have made these choices they can use technology to leverage the return by participating in a Affinity Network with other owners where they can reduce costs, increase market share, make profit providing benefits and participate in residual revenue sharing.
3. Every owner can build equity and prepare an exit strategy consistent with their overall financial plan, philanthropic desires and life style.
4. All these gains can be made while supplying unheard of specialization and service to a growing customer base
Contact us for more info
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