Baldo Minaudo’s Blog

Yesterday evening at the National Club on Bay Street I had the pleasure of meeting John R. Ing, President and CEO of Maison Placements Canada Inc., a leading independent Canadian research-based institutional investment dealer. Established in 1955, Maison is a participating organization of the Toronto Stock Exchange, the Montreal Exchange, and a member of the Investment Dealers’ Association and CIPF.

Ing was addressing the Canadian Institute of Mining (CIM) members and guests, speaking about gold, inflation and the American dollar.

Among his well researched and value packed presentation was a story that very well sums up much of what the United States is presently experiencing and how it has gotten to where it is today.

The story as told by John R. Ing is that there was a farmer who was selling his donkey to another farmer for $100.  Upon shaking hands he collected his $100 for delivery the next day.  The following day the farmer shows up in his truck with the donkey in the back.  After a brief greeting the second farmer asks him where his donkey is.  The first farmer informs  him that there is a slight problem in that the donkey has died.  After a moment of contemplation the second farmer asks for his $100 back at which time the first farmer replies that he can’t return the money because he’s already spent it.

Upon further contemplation the second farmer replies, okay unload the donkey in the barn.  The first farmer looks at him and asks what he’s going to do with the dead donkey.  The seond farmer replies I’m going to auction it off.  The first farmer is puzzled but does as requested.

The next week the first farmer comes across the second farmer and asks him how the auction is going.  The second farmer replies that he made a profit of $890 on the auction.  The first farmer asked how he did that.  The second farmer replies, “I sold 100 tickets at $10 each and raised $1000″.  The first farmer asks, “But, weren’t the people angry”.  The second farmer replies, “Only the winner and when he complained I gave him his $10 back.

Does this resonate with you?

This Friday I went to dinner with a friend.  We had searched on the internet for a restaurant where we could enjoy some good food and maybe make some friends.  I had clearly remembered passing this area the Saturday before and it was very much like an inner city nightmare, a place where I wouldn’t stop, let alone eat.  I scratched my head and wondered if this was really the same place.  So, off we were to Fells Point on the waterfront, but a funny thing happened along the way.  Why driving along E. Biddle Street we suddenly realized that the people were professionally dressed, walked in a straight line and seemed to be in a generally happy and sociable mood.  So we parked our car (lucky to find a free parking space on the street) and ended up at ‘Thai Landing’ restaurant near N. Charles Street and E. Biddle Street and while listening to my friend lament about how Vancouver is such a better city to live in than Toronto I enjoyed a wonderfully prepared cuisine by an attentive (but not overly so) staff.  I knew this would be a good restaurant when I entered the front door and saw a dozen awards from various magainzes and associations placing it among the best places to eat in Baltimore.  Yet, the price was very affordable. 

After finishing my dinner and taking in all my well-educated (Ph.d molecular biology) and athletic (certified personal trainer) friend had to say about Vancouver I put my urban planner hat and pointed out a few things that she had not achnowledged about Toronto, as well as some negatives about Vancouver that she was ignoring.  You see what triggered all this discussion was the question that my friend posed to me - “Do you think Toronto is a good place to live?”.  My answer was “I’ve travelled to hundreds of cities around the world and lived in most of them from between a few days to several weeks.  For me, I would rather live in Toronto than any other city all else being equal (such as career, family, etc.).  There are however some smaller communities that I would consider living, especially for raising a family in the early years.”  Apparently, this reply didn’t sit well with my friend and I found myself listening to someone with a mission to change my viewpoint.  Of course, she didn’t change my viewpoint because you see in my travels I not only looked at the cities I visited as a tourist, resident, and business traveller, but also an entrepreneur, sociologist, immigrant and urban planner.  I also find comfort in that Toronto has been successfully ranked by independent international organizations as a top world city.  Yet, I also agree that the quality of life in Toronto during the reign of the present mayor for whatever reason has significantly decreased. 

Well, back to what happened on Friday.  We crossed the street to Sammy’s Trattoria.  There we waited for 10 minutes for a place at the bar.  The place was very busy.  My friend turns to me and asks, “What do you notice about this place”.  “Lots of things what do you mean?” I reply.  My friend clarifies, “What do you notice about the people?”  I look around and notice that for the upscale decor they tend to be more casually dressed than Torontonians would, but a good mix of age groups, some university students, some in their sixties.  “There aren’t any Afro-Americans in here” she points out.  I look around and notice one Afro-American waitress, but everyone was caucasion with the exception of one oriental man.  Come to think of it Thai Landing also didn’t have many Afro-Americans there.  I think to myself is this the same Baltimore?

Two spaces open up at the bar and we finally get to order our Tiramisu dessert and coffee.  Before our order is even taken the couple next to us strikes up a conversation.  That was a real pleasure and the first time that someone in Baltimore that I hadn’t met tried to strike up a conversation with me without asking me for a hand out.

Turns out that Karin is a business lawyer and Greg is an Oracle database programmer.  And they have lived in both El Paso and Washington D.C. previously and therefore were able to speak intelligently about Baltimore.  I received quite an education about what has happened in the last few decades in Baltimore, as well as about the nightlife, where to eat and the neighbourhoods to check out.

Turns out that the property tax rate in Baltimore is 2.2%, compared to Toronto’s 1.25%, but they are not as stringent on updating the property assessment as Toronto is.  The second significant thing I found out is that the reason there are so many boarded up (and I mean blocked in homes) in the city is because the government has taken back the property due to unpaid property taxes.  This in turn has increasing caused the tax base of the city to decrease.  But, combined with the increasing crime rate within the core, which was addressed in a band-aid fashion by putting more strongmen police officers on the street as well as thousands of videocams on the street, has resulted in huge budget requirements.  In ordre to meet these increased requirements, the city had to raise its property taxes.  It’s all in the numbers my friend, higher expenditures lower revenues, spells disaster.  A lesson that many uneducated poticians throughout North America don’t seem to be able to learn.  And yes, this also applies to politicians in Toronto.

So, as I’m preparing for sleep that evening I think to myself was that the same Baltimore as last Friday?

Last week I was listening to CNN Business News and an Editor from a well-known business publication was interviewed.  In her comments she stated that their research found that most successfull small business people don’t plan to the detail of a business plan.  Which I agree with.  However, if you take that statement at face value one may believe that most successful small businesses don’t have a business plan, which I disagree with.  In her statement this editor did not define a ’successful’ small business and I suspect she used very vague census definitions, which basically classify any business that’s been active for a certain period of time and paying its bills as successfull.  Well, by my definition that is not success.  I believe success should be defined as a healthy, prosperous business that is meeting the financial needs of the business owner to a greater degree than if that business owner were to be working full time for a competitive salary.  And by my definition, I can tell you that only about 2% of small businesses that have been in business for 5 years would be considered successful.  Now, here’s the important part.  Almost all of those successfull businesses that I’ve come across have a business plan.  Sure, I’ve come across businesses that have had a good year or two, but without a plan they usually fizzle out.  You see, they may happen to find a need, gap or whatever to fill but what happens when the competition moves in or their product becomes obsolete?

But, that’s not the reason why I was motivated to mention this editor.  The real reason is her second comment that all an entepreneur needs is that one idea.  Excuse me?  That one idea?  I have hundreds of great ideas and I know many people that have.  So why isn’t everyone with a great idea a great entrepreneurial success?  Anyone that’s spent any amount of time in business or near entrepreneurs knows that the success in business comes from implementation.  Ideas are nothing until they get implemented!  Yet, this self-proclaimed expert on small business is saying the exact opposite.  It is in her statement that she reveals her ignorance and incompetence as a small business expert.  So, how is it that she’s the publisher of a well-known business publication?  Hmmmmm.  And how many would be entrepreneurs are being led into a false direction because of this careless and incompetent woman?

As I always say, careful from whom you recieve your counsel.  Advice is free, especially when it is useless to begin with.  You want to succeed in business be your own counsel and look at what has truly worked for others.  Starting any venture, business or otherwise without a plan is no better than buying a lottery ticket - some succeed, but most lose their money.

If you are considering starting your own business, drop me an email and I’ll be happy to discuss it with you.

Good Luck

It’s been a while since my last visit to Atlanta, which partly affected my decision to attend Mike Litman’s and John Di Lemme’s SuccessMania 2006 conference in this city.

Before, I tell you about Atlanta, let me give you a quick review of the conference.  I had chatted with John Di Lemme at the ‘More Heart Than Talent’ conference in Dallas, Texas in January, 2006.  A good Italian boy from New York City, John carries his thick accent well and it goes well with his positive, energy charged presence.  One of the things I like about John is that he involves his family and friends in his career.  It reminds me of the way things are done in Sicily, even to this day.  The family works together to make things happen.

Although, I’m disappointed in Mike Litman because he doesn’t show for his session during opening night. 

The speakers for the conference include: Omar Periu (the Cuban immigrant who’s accumulated great wealth), Stephen Pierce (considers himself special because he got shot), Drew Miles (great information on asset protection, tax saving and wealth building strategies - but only if you’re American), John Dessauer (great perspective on the real estate market adjustment and which segments will outperform others), Scott Schilling, Ann Preston, Jerry Clark (talked about personality types), Mark Gorman (great entertainer and perspective on religion and wealth), John Childers (talked about how he could make you rich through developing your public speaking skills if you take his $30,000 program), Loral Langemeier (still trying to understand what she does and I’m not alone), Mike Litman and John Di Lemme (addressed the personal attitude and approach to achieve success) himself.

One thing I learned at this conference is to make sure that the material covered by the speakers applies outside the United States.  Also, there is a big difference in both the quality of each speaker and the material they present.

The greatest success for me has been a meeting I had arranged through my contact in Moncton, New Brunswick, Canada - Thomas Nisbett.  Thomas and I met by chance because of mutual contacts we have.   He had noticed that one of the members of his network was a Director of the Venture Capital Forum, which MetroActive Lifestyle Network, of which I’m the C.E.O. sponsors.  So he placed a call in to me and our relationship has been growing.  When, I told Thomas I was coming to Atlanta, he insisted on me meeting one of his associates.  That meeting has now led to a strategic alliance in two of my ventures. 

Now, let me tell you about Atlanta.  I haven’t been to this city in over 10 years, except for stopping between flights at the airport.  This time I bought myself a weekend pass for the public transportation system and visited some interesting sites.  First I went to the Fernbank Museum of Natural History to visit the chocolate exhibition.  Then I went to ‘The Underground’ a huge three story underground complex with a historical flavour to it.  It’s no where near as large as Toronto’s Eaton Centre (now called the Sear’s Centre by non-Canadians), but it does have a flavour of local artists and vendors.  However, I’m surprised when a jazz player stops playing to tell me no pictures.  How he plans to succeed without getting exposure is a mystery to me.  Or perhaps he’s a wanted criminal - who knows.

While riding the public transit I come across some very interesting individuals.  The people in this town are very much into their sports and proud of their athletes.   In fact, I can say that with the exception of Italians and their soccer I’ve never been to a more sports passionate city in the world.  One man is dressed in logos from different teams from head to foot and then has patches on top of patches and a plastic cowboy hat with some radio station on it.  Maybe he’s trying to win a radio contest or something.  Hey, I’m giving him the benefit of the doubt here.

The hotel I’m staying at is called the Airport Hilton and as I’m typing from inside the Executive Lounge I’m also glancing at the airplanes taking off at the airport about 500 metres from my window.  It’s a clear and expansive view that I’m thoroughly enjoying.  The sunset is beautiful and the only thing that would make it more enjoyable is someone to share it with.

This is a larger hotel and has lots of traffic.  But, if you plan to stay here, be sure to ask ahead of time if there’s a convention in the hotel.  During the last few days, there has been a debating conference on for high school students and I’ve heard them in the hallways right up until three o’clock in the morning.  So much for chapirones - if their parents only knew.

There’s a neat sports diner on the bottom floor of the hotel that has a good selection and reasonable prices.  It’s called speeders and I recommend it if you plan to stay here.  Also, book a suite that includes access to the executive lounge because that includes a good selection of food for breakfast as well as evening snacks from 5-7pm.  It is worth the investment.

Tonight’s my last night in town and I’d like to visit this famous newly opened Georgia Aquarium that so many residents here seem to be proud of.  Apparently, it is the largest in the world.  It’s a toss up between the Aquarium or catching up on my sleep after a full week.

There has been a lot of money invested in this City since I last spent time here.  Flying in I could see patches and patches of housing being built.  The city has a newness about it mixed in with its historical flavour.

One final observation, the people here are very friendly.  Even the utility workers stop to say hi to me and ask me how I’m doing.  When was the last time that happened in New York City? - never.

All in all a positive experience.

I’m in sunny and warm Phoenix, Arizona for the Maximizing Success Conference (March 23rd - 27th) organized by Debbie Allen and Patricia Drain.  Given  the long flight I decided to come in a day early and rest up for the conference. 

Since Phoenix ins’t known for its sophisticated public transit system and I have several meetings lined up in different surrounding cities, I decide to rent a car.  Of course it has to have a sun roof.  At first, I was hesitant to take the Toyota.  However, the clerk assured me that the Avalon is a good car and I wouldn’t be disappointed.  

Boy, was he right or what?  Turns out the Avalon has the same type of manual-automatic transmission as Mercedes.  Something that I’ve always enjoyed.  And the engine is a lot more powerful than I thought.  

My first meeting is with a radio station in Glendale a picturesque community that seems to be in transition towards enlightenment.  Their are plenty of new civic buildings, beautifully designed to highlight the Arizona climate and architecture.  Cactii  plants are found everywhere and in the middle of town you can eat a fresh orange off of an orange tree, if you’re willing to climb higher than the public can reach that is.  Hmmmm…fresh tree ripened oranges.

The conference begins early in the morning with keynote speaker Jack Canfield, author of Chicken Soup For The Soul and part owner of the whole Chicken Soup For The Sould organization.

Armand Morin, a speaker I respect gives us an update on the state of internet opportunities.  The reason Armand I respect Armand is because he is genuine and doesn’t judge or exagerate…something that many speakers seem to find necessary.

Another speaker is there telling the audience that real estate is the way to may your fortune and is selling a program for several thousand dollars.  “Why invest in risky things like the stock market when you can have secure real estate?”, he asks the audience.  Perhaps someone should explain to him what happened in 1989/1990 when real estate in many North American cities dropped in value by as much as 60% within the year.  This isn’t the first time real estate has dropped in price.  In my lifetime alone it’s the fourth time it’s happened.  The history books show us that it’s been happening in North America since the early 1800’s.  It’s part of the business cycle.  Of course if he mentioned that to the audience, they wouldn’t buy his system would they?

Then a woman comes on stage.  I’ve seen her type before, she’s worked on her image (despite her heftiness) and knows how to build perception of success and credibility with the audience.  She claims to be able to create millionaires within 3-5 years.  Do I believe her? - No!  Her story just doesn’t wash with me.  If she has the secret to making millions, then why is she trying to sell people programs for tens of thousands of dollars?  Perhaps that is her secret, getting rich by selling others into her program.  So how about showing us that you can do it for yourself first?

I was very tempted to pull her aside after her presentation, but aside from not being able to get past the fanatic women lined up to receive her blessing, I thought what if this is her only hope.   What if this is all she has going for her and I burst her bubble? 

I realize that there are a lot of people out there that need a genuine mentor that will guide them to success.  Someone who has succeeded in both the corporate world and the entrepreneurial world, not because of lack of choice, but by choice.  For now, I’m committed to finishing my book - Perhaps next year.  

The highlight of the conference is the dinner with Stedman Graham (Oprah Winfrey’s mate).  He is a lot more entertaining that I thought.  Afterwards, I get him to autograph his book for me.  He even agrees to have a look at my book when I finish the final draft.

Next day, I get food poisoning.  Let me tell you, if you’re ever in Phoenix be very careful with the food.  I don’t find the kitchen staff there as hygenic as they are in Toronto.  I spend the whole day in my room suffering the consequences of a meal prepared by the Marriott Phoenix Airport kitchen staff.  The hotel is nicely designed, but I didn’t find the staff all that competent.  During one of the evenings I waited over 15 minutes at the bar for a beer.  Apparently, the bartender wasn’t expecting the rust of 5 patrons and seemed disoriented.

Fortunately, I’m somewhat functional on the second day and get to meet some interesting entrepreneurs from different parts of the world.  You never know who you’re going to meet and what will come of it.  Some of the people I meet are fuel for creating characters in my books.  Others are inspirations for business ideas.  And some people are gateways to business opportunities.

Outside the conference, one thing I notice is that the locals in Arizona are very, very patriotic.  Another observation is that the local community is split into two key segments; the American citizens and the Hispanics (split between citizens, landed residents and illegal aliens).  In case you’re in Phoenix and aren’t able to distinquish the Hispanics by their physical characteristics, here’s a clue - they’re the one’s waiting at the bus stops.  What I mean by this is that there seems to be a great economic inequality between the white, established American population and the Hispanic population.  For those that aren’t prepared for it, it can throw you back a bit.

All in all, it’s another successful trip and I get to learn a little bit more about Arizona and the U.S.A.  As I leave the airpost in the cultural mosaic we call Canada, I deeply breathe the cool air and hop into the limousine to enjoy my peaceful ride home. 

I’m in Anaheim, California for the Idea Incubator Conference presented by Stu McLaren (a resident of Waterdown, Ontario).

Anaheim is very much a tourist town, primarily because DisneyLand is located in town.  Most of the better hotels are located near the theme park and they cater to the vacationing family.  The Homewood Suites by Hilton hotel offers me a complimentary breakfast and dinner, which comes in handy in preparing for a long day of sessions.  Even without the complimentary meals there are plenty of local restaurants to choose from.

The seminar is promoted as being an opportunity to learn from successful, innovative entrepreneurs that are making lots of money through the internet.  Among the line up are (number in bracket represents my rating of the speaker’s quality - 1 is low 5 is high): Alex Mandossian (3.5), Armand Morin (4.5), Matt Bacak (3), Stephen Pierce (2), Jeff Walker (2), David Frey (3), Paul Colligan (3), Jeanette Cates (3) and of course Stu McLaren (2.5) himself.  I’m still not sure what Stu’s expertise is, but he seems to enjoy talking in front of the audience and sharing his personal stories.

I recommend this conference to any entrepreneur wanting to find out what others are doing to make money on the internet.  However, it can be quite overwhelming.  Also, be prepared to spend lots of extra money if you want to apply some of the wisdom.  The speakers are promoting their other services and programs, which cost from about $1000 to well above $5000.

These are not all great speakers, but then again I’m not after the entertainment factor, but rather the education benefits.

The other plus is that the atmosphere of the conference is notably different from many of the other conferences I’ve attended.  It feels more genuine, caring and generally more pleasant.  I attribute this primarily to the fact that Stu McLaren is a young Canadian committed to building his success team.  There is no doubt in my mind that this young man has a long successful career ahead of him.

It’s a New Year and I’m at the ‘More Heart Than Talent’ conference in Dallas, Texas organized by Jeffery Combs.  Accompanying me is my newest mentee, Bruce Bian - recent MBA graduate from my Alma Mater, Schulich School of Business.  Bruce came to Canada to study for his MBA plans to hold an equity position as part of a quickly growing business. 

Every year I take on three mentees.  This year Bruce Bian is one of them.  After many meetings over the last few months, we’ve agreed that Bruce will work with one of the organizations I support - MetroActive Lifestyle Network as the Chief Information Officer.  In return, I will help him build his management team and position him for appeal among potential investors.

We arrive in Dallas on Wednesday, January 4th, 2006.  It is my first time in Dallas and like most Torontonians my perception is based on the 80’s show ‘Dallas’, as well as media portrayal.  So, my expectations are that there are ‘BIG’ things to do in Dallas.

We’re staying at is the Westin Dallas Galleria.  It is a four star hotel located within a large, upscale mall that has a skating rink in the main gallery.  After unpacking we visit the hotel concierge to plot out our free day before the conference begins.  That’s when we’re introduced to reality.  Apparently, Dallas isn’t what we expect it to be.  Everyone that we ask says the same thing, ”There are only two things to do in Dallas - eating & shopping.”  

“Okay Bruce, what would you like to do now?” I ask my mentee.  

“Let’s shop”, he says in his thick Chinese accent.

Now I think to myself, there’s no way I’ve come all this way to eat and shop.  But, what else can I do.  The mall is very large and the stores do look great.  We end up walking the Galleria all day.  And surprisingly I find a great store that sells home and personal gadgets called Brookstone.  So, now I’m sitting in a luxurious reclining chair that’s vibrating me into another level of awareness.  I mean this thing is running rollers up and down my back, pumping my hips, squeezing my feet and legs.  Ooooh, it’s great!

As I continue through the mall I come across all kinds of restaurants.  If you visit the Dallas Galleria, I suggest that you stay away from the Mexican restaurant on the bottom floor by the ice rink.  Other than that, the other restaurants are great!

The locals are generally friendly, however, I did get the comment from one store clerk that the United States military is what allows Canada to be a free country.  I’m not sure what she thinks that they’re protecting us from, but I think about asking if she’s ever been to Canada.  But, I already know the answer to that.

The conference is full of a combination of struggling entrepreneurs and wannabee entrepreneurs.  If I get approached my one more network or multi-level marketing prospector I’m to sell them shares in the London bridge.  One man, after sitting at my table for lunch, totally ignored what I was saying and bulldozed along his canned sales pitch.  After a while, I just ignored him - why not?  Since he was ignoring me anyway. 

However, I do learn about some interesting innovative business concepts that are making entrepreneurs some interesting money.  Actually, they’re making the speakers some interesting money.  The attendees are eating up the material, hungry for a reason to get excited about their lives and goals.  Do I sound cynical, well I can’t help it, especially after seeing attendees spend thousands of dollars and lots of time without addressing their real barriers to success.

It is so obvious to me that most of the attendees are held back by a number of items, such as: low self esteem, lack of vision, indecisiveness, inaction, poorly developed skills, lack of research, fear of success, fear of commitment, limiting self-perception, lack of understanding of basic business concepts.

I vigorously take notes and talk to as many individuals as I can as part of my research to develop programs to assist these individuals with their challenges.  The conference turns out to be a big success for me as I come back with lots of market and client research.

…and thanks to Bruce the bargain sniffer, I also get some great buys.  My mom and nephews will be very happy with the gifts I have for them.

Like I said, there are only two things to do in Dallas, Texas - eating and shopping.