The Fisherman and the Banker

qnf2Ll42Vv0x87 1024x682This is a photo of my backyard where I now live in Cairns.Yes it's on a golf course, but I dont play golf....yet!

However I would like to share with you a story about my inspiration to slow down, reassess, and get real about how to live life.

An investment banker was at holidaying up here in Port Douglas and ventured down to the pier when a small boat with a fisherman docked. Inside the boat were several large coral trout and crayfish.  The banker complimented the fisherman on the quality of his fish and crayfish and asked how long it took to catch them.

“Only a little while" said the fisherman. The banker asked him “Why didn’t he stay out longer and catch more?”

The fisherman replied saying that he had enough to support himself and his family’s immediate needs.

“But what do you do with the rest of your time?” quizzed the banker.

“I sleep late, fish a little, play with my children, take a rest with my wife, stroll into the town, play a little golf, go do 4WD in the Daintree, play guitar, stroll around the markets here on Sunday’s and have a drink/BBQ some evenings with my mates and their families. I have a full and busy life.” said the fisherman.

Seeing an opportunity to help the banker said “I hold an Institute of Management MBA and could help you".

"You should spend more time fishing and with the proceeds, buy a bigger boat". The banker said.

"With the proceeds from the bigger boat, you could buy several more boats. Eventually you would have a fleet of fishing boats. Then instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own crayfish and seafood cannery".

The banker went on."You would control the product, processing, and distribution. However you would need to leave here and move to the city then probably multiple cities around the globe from where you will run your expanding enterprise for both tax and cots reasons.”

The fisherman asked, “How long will this all take?”

To which the now enthusiastic banker replied, “About 15 – 20 years.”

“But what then?” Asked the fisherman.

The banker laughed and said, “That’s the best part.  When the time is right you would announce an IPO and list your company stock to the public and become very rich, you would make millions!”

“Millions – then what?”

The banker said, “Then you would retire!". "Move to a place like here at Port Douglas where you can sleep late, fish a little, play a little golf and your kids, rest in the afternoons with your wife, stroll into town in the evenings, or walk the local markets, play with your guitar, go 4WD, have time for a drink/BBQ during the evenings with your mates and their families.

And the fisher man smiled back at the banker and wished the him a good day and all the best on his holiday here in paradise!

Here are some tips I apply in my life!

  1. As much as I can I do the activities that give me the most direct benefit back for my time investment. For example, physical exercise, spending quality time with friends and loved ones, self refection, helping others etc
  2. I’ve automated most of my repetitive tasks i.e. bill payments, savings, cash accounts, investment management etc.
  3. I regularly purge or declutter my life. Be it my wardrobe, storage, electronics, email subscriptions, etc. Doing so I experience freedom whilst appreciating even more of what I’ve chosen to keep.
  4. I rest. There are times for work and times for resting. I rest well so I can maximise my performance when I work.
  5. I focus on being better not bigger and sharing this value. Doing so ensures I consistently focus on delivering more value than I receive.
  6. I live within my means. This involves living on a maximum of 50% of my income (after tax) and investing the rest, across the community, entrepreneurship and institutional investments.
  7. I research how to do things better. Laws and the market place are constantly changing, therefore keeping abreast of best strategies and proactively taking advantage of these changes is both a prudent and rewarding investment of time.
  8. I am an optimistic realist. Doing so allows me to seize the opportunities in situations, whilst assessing this opportunity in light of the foundations of wealth creation i.e. preservation of one’s capital.
  9. I enjoy what I do. This way when times get tough I have a higher probability to see them through. When others thank me I am motivated to help them even more.
  10. I know where I am going and my why i.e. my values. This motivates me to stick with the things I need to do inorder to achieve my goals, even when I don’t feel like doing them.

About Peter Horsfield

Peter Horsfield in an Authorised Representative and Investsure Holdings Pty Ltd ABN 16 050 286 630 as trustee for Horsfield Family Trust ABN 55 609 068 513 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523.

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Perfect Days!

CroppedImage700340-Cape-TribulationToday.

Exercising feels good; traffic to work and home is minimal, I do my activities proactively, any urgent matters are addressed quickly and effectively and the results of my efforts are visible to me.

I thought for the longest of time that these perfect days are what I should be aspiring for and successful people experience this nearly everyday; but I was wrong.

I discovered in my work, finances, health, relationships and inner growth, as it is in nature too much of anything is detrimental i.e. blue skies>drought, rain>flood, pressure>rock, stagnation>poison etc.

When too much work is flooding in, I feel like I’m drowning and when no work is coming in, it feels like a drought. When I put myself under too much pressure, I harden then crack and when things become too easy, profits stagnate or worse decline.

On top of these natural changing business climates, are the days within each season; happy days, sad days, introspective days, outgoing days etc.

Days that not only do I want to throw the towel in but I actively resist doing the work that I concsiously know I need to be doing. I don’t quite understand why I do that while at the same time another part of me finds it enjoyable and empowering. “Pity parties” maybe the polite name for these moments but I like to call them my “Stuff it days”.

Days that I feel like coasting through with minimal input, I have a list of activities but I only do enough work to convince myself and justify to others that “I’ve done something with my time”. On days such as these if you ask me to do something, I will most likely accept but not act immediately as I’m having more fun doing other things that interest me “maybe writing my blog”. The result is important activities get put aside until they become urgent. Call it “procrastinating” if you must however in my defence lacking motivation in one area greater inspires motivation to do other important activities in my life such as exercising, self-reflection, planning etc.…

Days I’m pumped and eager to get in and do the work, then I when I get into work and I quickly fall into a “daily grind” or coasting day. These days are really frustrating as I held initial such high expectations of myself. The same frustration comes over me when I am motivated, pumped and getting through my activities however other urgent matters come up requiring my attention when all I want to do is get my list of activities done.

Perfect days. Exercising is easy, traffic to work and home is minimal, I do my activities proactively, any urgent matters are address quickly and effectively and the results of my efforts are visible to me.

What I have learnt is that I can’t control business climates or my day to day feelings, however I can acknowledge them and know them for what they are. And by doing so I now make choices with better perspective.

Here are some tips I apply!

  1. I work on myself in other areas. It’s natural to have a flat day, on these days I focus on other areas in my life that I value i.e. health, relationships, inner growth, planning.
  2. I have automated my savings plan. This way regardless of how I feel I stick to my long term savings goals.
  3. I do “my” one thing every day. I promise myself to do my “one thing” each and every day until it becomes a habit. “Watch your thoughts. They become words. Watch your words. They become deeds. Watch your deeds. They become habits. Watch your habits. They become character. Character is everything”. Frank Outlaw Late President of the Bi-Lo Stores
  4. I ask myself, will this action help me, hurt me, hinder me or harm me?
  5. I let go of the past and what I can’t control. I do the activities which I have control over i.e. write a blog instead of reading a newspaper, communicate instead of watching TV.
  6. I add value to other people lives i.e. listening, referring, helping etc.
  7. I exercise, drink lots of water and have eliminated alcohol and crap food i.e. excessive sugar and carbohydrates from my life.
  8. I do the work. Maybe not immediately, however I do the work that needs to be done within a reasonable timeframe.
  9. I turn up the tunes on songs loved as a kid, laugh and dance like no one is watching. 
  10. I get out of my comfort zone and put myself in a new environment where I meet and engage with inspiring people.

About Peter Horsfield

All views are my own

Peter Horsfield in an Authorised Representative and Investsure Holdings Pty Ltd ABN 16 050 286 630 as trustee for Horsfield Family Trust ABN 55 609 068 513 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523.

General Advice Disclosure

Sources of this information are considered to be reliable but are not guaranteed. Information published in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this document is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a qualified adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances.

 

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How To Achieve Your Goals Sooner

Helicopter Flight over Great Barrier ReefPersonally I find achieving my goals difficult. Often I just put them to one side and hope that they will be achieved by themselves. Dreaming!!! Yeah I know, however in my experience life often finds a way of getting in the way, or making the goal I think about, inconvenient or increasing stress in other areas. So I give up!

Nine time out of ten I give up, I give up on even trying to attempt my goals. The one time out of ten is because I’m fed up with where I am and fearful of what might happen if I don’t. Looking back my personal conclusion is that only when my fear is greater than my procrastination do I begin to take achieving my goals seriously and commit.

Fear maybe a great motivator however from experience fear as a repetitive motivator has lead me to burnout, withdrawal, self-doubt, mental illness (depression) and wrong choices. All of which delayed me achieving my bigger goals or go so far as derailing me from achieving it at all.

A big failure of mine in the past has been listening to the noise in the world and good intentioned opinions of those important to me, telling me their views of what being a success in life looks like.

Am I living their life or mine?

Call it maturity, rebirth, taking ownership of my own life, or simply being true to my authenticity; however I now choose and approach my goals with respect and quiet reserve. I have documented a list of all the personal experiences I would like to have had in living a life on purpose. I have prioritised these experiences into this year, next year and years beyond along with what I need to do to make these experiences a reality and the help I might need or not.

There are things in life that are deeply personal to me. These “gold nuggets” are waiting to be mined and cashed in, so I can go dig for more of my “gold nuggets”, however mining for gold is dirty, gritty, exhausting, labour and resource intensive at the same time the input is all based on the assumption gold will be found, before actually finding it. I can’t find gold without digging!

Here are some tips I apply to achieve my goals sooner!

  1. I am true to myself by aligning my money choices with my values. This requires self-reflection, identification and documentation of “What’s important about money to me?”
  2. I know where I am today and where everything is. I have this stored securely and have ready access. I can benchmark my progress, while having peace of mind I have my important documents on call.
  3. I do one all-encompassing goal at a time i.e. I am 100% committed all in and do the work. If other long term goals are also being worked on at the same time automate them as much as possible to minimise distraction and maximise efficiencies.
  4. I say no or negotiate an alternative which will heighten my chances of remaining on track to achieving my goal.
  5. I know I can. When I get frustrated and wish I had already achieved my goal I think about how water can erode granite. It just takes time and friction… maybe a very long time however these two combined erode even the toughest of rocks!
  6. I celebrate achieving my goals. This is followed up with a journal entry of how I felt achieving my goal, which I can look back and reflect on.
  7. I see my goals as a journey not a destination. In this way I have fun with my goals; they become my life long hobby i.e. they become me and I do them for my own pleasure and no longer for the acceptance of others.

About Peter Horsfield

Peter Horsfield in an Authorised Representative and Investsure Holdings Pty Ltd ABN 16 050 286 630 as trustee for Horsfield Family Trust ABN 55 609 068 513 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523.

General Advice Disclosure

Sources of this information are considered to be reliable but are not guaranteed. Information published in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this document is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a qualified adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances.

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Tips when taking over a small business

Swimming with sharksWhen buying a business what are the most important things you can do?

   Rule 1# Do your due diligence

   Rule 2# Do your diligence then refer back to rule 1#
 
These essential rules will hold you in good stead with any business you may be considering to buy. The following are some important sub areas of due diligence you will also want to consider when buying or merging with a new business:
 

Identify the challenges and create opportunities within your own businesses existing culture, staff and roles. Consider ways to improve the existing culture, staff and roles within the new business you are considering to purchase by implementing the best from both businesses.

What are the costs and how much time will merge the two businesses require?

How will you retain your existing business and new business clients, while also minimising the risk of loss of these clients?

How will you be adding more value to existing and new clients than they received previously?

What potential new supplier relationships will there be and how will these impact your existing relationships?

Do you require non complete clauses (restricting the seller) within the business purchase contract? This should document timeframes and territory restraints.

How is the business valuation calculated? (Past earnings continuation, profit & loss, business tax returns, depreciation schedules etc..)

How will you purchase the business? i.e. Your funding mechanisms. Will the purchase be made with cash, vendor finance, personal borrowings etc. and will there be any milestone payments?

What is the best structure of the new business, taxation reporting, payroll and compliance?

Will you retain continuation of your own business branding or new branding? This goes across social media, logo's, business cards, signs etc.

Where is the preferred business location and sub locations and how to cost effectively maintain the existing footprint and service existing clients?

Do you need to update or change your technology, software and business process across both businesses?

What is your exit strategies for the new business?

What is the expected income, profit and loss, assessing the effort required and cost viability of the exercise vs. organic growth of existing business?

This above list is just the tip of shark errr iceberg when it comes to the different areas one needs to consider when purchasing any new business.

When I purchased another financial planning business the purchase was within the same industry that I knew, even then I've found the process both daunting and exhausting. I would expect even more due diligence would be required if the business was to be in a different industry than one's own.

In my experience the purchasing another business involved all the above areas or diligence and implemtation plus changing licensees, software, locations, residence, business structures, business accounts, changes in location i.e. moving to cairns from Sydney. It's been a massive task!

Very importantly the transition required increased communication with clients and staff and promoting the positives or the expansion. We also had to refurbish the existing premises and much, much more which has been now rolling out over the last 12 months.

12 month gone, with hindsight and on balance, I am happy with the progress the team, our clients and I have made.

The next 12 months our focus is on delivering even more value to clients; giving them greater convenience and reducing clients costs. This too is our business marketing approach because our clients are our greatest advocates and helping them achieve their goals sooner is do what we do and helps us achieve our goals sooner too.

About Peter Horsfield

Peter Horsfield in an Authorised Representative and Investsure Holdings Pty Ltd ABN 16 050 286 630 as trustee for Horsfield Family Trust ABN 55 609 068 513 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523.

General Advice Disclosure

Sources of this information are considered to be reliable but are not guaranteed. Information published in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this document is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a qualified adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances.

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