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5 Things Every New Entrepreneur Learns Their First Year

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These realizations come to every entrepreneur within the first year of owning their own business.

That first year of entrepreneurship can be a doozy. You'll encounter things you never expected, some good and some bad, and you'll learn a ton about what it really takes to be an entrepreneur. There's only so much you can learn in business school and from others' personal anecdotes--some things you just have to experience for yourself.

In my years as a serial entrepreneur, I've worked with dozens of other entrepreneurs as they entered the world of business ownership for the first time. Generally, within the first year, they all come to certain realizations:

1. Nothing goes the way you think it will. You start out with great, bold plans, but by the end of your first year, you realize that all of your predictions were at least partially wrong. You have to be quick on your feet and change plans rapidly if you want to survive.

2. Your idea isn't as great as it seemed. Your business idea seemed flawless when you entered the scene, but within your first year, you'll start seeing all its flaws. This is normal, and a good thing. Learn to compensate for those flaws (or fix them) moving forward.

3. Not all revenue is worth grabbing. You're incredibly eager to get money however you can your first year, but one bad client or one botched deal will reset your expectations permanently.

4. There are no shortcuts. All it takes is one shortcut burning you to realize that shortcuts are almost never the answer. Shortcuts cost less time and money, but they always end up screwing you in the end.

5. Work and life blur into one. The concept of a work-life balance seems to disappear before your eyes, but at the same time, it all seems worth it. You're passionate about your work, and you find yourself thinking about it all the time, and at the same time, your employees and team members become like your family.

Knowing these realizations in advance (or reflecting on them after you've already been there) can help you become a better informed, more cognizant entrepreneur in your own business. Take these lessons to heart and never stop improving.

Bio:
Jose Vasquez is a serial entrepreneur and tech enthusiast dedicated to helping startup technology companies get the direction and momentum they need to succeed. As the founder of Build. Brand. Blast., Jose has established a collective resource for tech entrepreneurs to consult when brainstorming, creating, launching or expanding a new business. Jose is also the founder and CEO of Quez Media Marketing, a marketing firm that combines technology and creativity to help new and growing companies get the results they need.

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Two Capitalist Tales: A Kickstart and a Kick in the Head

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These are two tales about capitalism at its best and at its worst. These are true stories because even Hollywood at its brashest could not write fictional scripts better than these to depict the duality of capitalism.

On Monday, September 21, The New York Time's ran two contrasting articles on the front page of its business section. An above-the fold article was titled "Once a Neglected Treatment, Now Expensive Specialty Drug." A below-the-fold article was titled "Kickstarter Focuses Its Mission on Altruism Over Profit."

Given its content, a subtitle for the above-the-fold article could have been "Company Focuses its Mission on Profit Over Patients' Needs." That company is not called Kick in the Head. But it might as well be. It is a start-up business named Turing Pharmaceutical (Turing).

The article reported that in August Turing acquired a 62 year old drug called Daraprim that is the standard of care for treating "a life threatening parasitic infection." Turing immediately raised the price of the drug from $13.50 to $750 a tablet (more than a 5000% increase). According to the Times, this would raise the "annual cost of treatment for some patients to hundreds of thousands of dollars.'

The article appropriately noted that increasing the price of a pharmaceutical after the acquisition of a drug that is a "mainstay of treatment" is not unique. It cited a couple of other recent examples of this practice by other companies.

What made this case unusual is the start-up nature of this venture and the history of Turing's 32-year old CEO, Martin Shkreli. In his 20s, Shkreli started a hedge fund and "drew attention for urging the Food and Drug Administration not to approve certain drugs made by companies whose stock he was shorting. In 2011, he started Retrophin, which "also acquired old neglected drugs and sharply raised their prices."
Shkreli responded to the concern over Turing's raising the price of Daraprim by stating the additional profits would be used for research to improve treatment for those with parasitic infections.

He proclaimed, "This isn't the greedy drug company trying to gouge patients, it is us trying to stay in business." He went on to assert, "This is still one of the smallest pharmaceutical products in the world. It really doesn't make sense to get any criticism for this."

Many in the medical profession, the public and the media disagreed with Mr. Shkreli's assessment and were highly critical of the price increase move. His reaction was to tweet out a line from an Eminem song "And it seems like the media immediately points a finger at me. So, I point one back at them but not the index or the pinky."

The standard retort to that type of gesture when it was flashed back in the neighborhood was to ask "Is that your I.Q.?" By most accounts, Mr. Shkreli is an intelligent young man. So, in this instance, a more proper interpretation could be that Shkreli believes that only one person in the United States matters -- and that person is him.

Shkreli has now closed his twitter account But, a collection of his other twitter transmissions assembled by Katie Halper definitely reinforce and support that interpretation.

Shkreli's kick in the head, take no prisoners, winner take all approach provides one lesson in the type of leadership promoted by and in capitalism. It is the version espoused and practiced by Michael Douglas as Gordon Gecko in the popular 1987 movie, Wall Street, in which he announced "Greed is good."

The approach practiced by Perry Chen and Yancy Strickler, co-founders of the online crowdfunding website Kickstarter, provides a starkly different leadership approach and lesson. Messrs. Chen and Strickler are 40 and 38 years old respectively.

Thus, they are fairly close to Mr. Shkreli in age. But, in terms of business practices and human values they are light years apart.

The below-the-fold article in The New York Times of September 21 was written because Chen and Strickler had just announced they were reincorporating their firm as "a public benefit corporation." The New York Times reports, "public benefit corporations are a relatively new designation....Under the designation, companies must do something that would aid the public (such as Kickstarter's mission to 'help bring creative projects to life') and include that goal in their corporate charter."

According to Mr. Strickler, Kickstarter chose the public benefit corporation route because, 'We don't ever want to sell or go public. That would push the company to make choices that we don't think are in the best interest of the company."

What makes this decision so extraordinary is that the goal of many technology start-up companies like Kickstarter are to become "unicorns" -- businesses that are valued at $1billion or more - and then to go public making their founders and owners exceedingly wealthy.

Unicorns appear to have no appeal for Chen or Strickler. Or, if they do, they are the stuff of legends and antiquity and not of modern-day financial finagling.

One might assume that Kickstarter was not a successful business or that its business model is not viable or scalable and that is why its founders didn't go for all the gold that might be there at the end of an IPO rainbow. This does not seem to be the case, however.

Kickstarter was founded in 2009 and has already had a number of successes such as helping to finance the movie Veronica Mars and the Pebble smartwatch. Chen and Strickler state that their business has been profitable for years and has had profits "in the $5 million to $10 million range for the past three years." They plan to share that wealth going forward by letting employees exercise their option grants for up to 10 years, even if they leave the company, and beginning to pay dividends to employees and shareholders within the next few years.

According to The New York Times, Mr. Chen and Mr. Strickler said that their ultimate hope was that becoming a public benefit corporation would set an example for the next generation of entrepreneurs."

There you have it. Two capitalist tales and two quite different examples.

They illustrate that capitalism itself is neutral. A business can generate profits. Those profits can be reasonable or obscene. They can be horded or shared. They can be a force for making society better or worse.

It is leaders through their decisions and behaviors who chart the direction for a business and determine its trajectory. This is true for all organizations and institutions.

There are a few entities that are evil by design and intent. Most are not. It is the imprint that leaders make on them that define who and what they are.

This is the message that Pope Francis is bringing to the Catholic Church, the world and most recently the United States. This is the message that he brought to the Floor of Congress in celebrating the potential of that once-esteemed body and not its lackluster performance as of late. This is the message that he brought to the Bishops in Philadelphia calling out sexual abuse of the innocent by some of their pastoral colleagues as a problem that must be solved.

This is the message for our times.

There are many capitalist tales to be told in the United States in the 21st century. They can bring hope or despair. They can bring joy or misery. They can bring mercy or neglect.

What they bring will depend on our business leaders and what they preach -- but more importantly, what they practice. Some will practice kicks in the head -- others kick starts. With God's grace and human kindness, the kick starts will prevail.

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Surviving Poor Customer Service: 10 Lessons Learned

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A recent renovation in our home due to a water leak became almost a 4-month, full-time job for my husband. Sharing some of the customer-service snafus with friends and colleagues, we've discovered that these happenings are all too common for the construction industry.

Reflecting on our experiences and hearing the tales of woe from others, I've put together "10 Lessons Learned" to help you survive your next customer-service nightmare.

On the other hand, if you own a business in ANY industry, changing even one or two of these service delivery dynamics could make a dramatic difference in distinguishing you in the marketplace as an outstanding organization:

Lesson 1: Expect no communication between the departments or people who work for the same organization. They will not know what their colleagues have agreed, scheduled, done, or planned to do. You, as customer, will become their main source of information.

Lesson 2: If the vendor says that they will arrive at 8:00 a.m., expect 10:00 a.m. If they give you a 10:00 a.m. arrival time, expect them at your door at 8:00 a.m.

Lesson 3: If they promise to get a quote or proposal to you within a certain time period, double it.

Lesson 4: If they set a firm time for a meeting or phone call, to minimize frustration, get a watch that doesn't work.

Lesson 5: Vendor A will mess up the work of Vendor B. Vendor B will mess up the work of Vendor C. No vendor will own responsibility for any of the foul-ups and will continue to blame the others.

Lesson 6: If vendors give you a completion date of 30 days, expect 60 days. Whatever the estimated project time, double it.

Lesson 7: Whatever the estimated cost, increase it by at least 50 percent. If you agree on the cost upfront in writing, expect the vendor to run into an unknown problem and the total project to require additional "scope" and fee.

Lesson 8: If paperwork is involved in the transaction (order form, invoice, receipt), expect errors and several iterations of the same.

Lesson 9: If you're assigned a liaison or project manager, expect to have to manage the project manager because he or she will be overwhelmed with far too many jobs for one person to handle.

Lesson 10: When finished, expect the vendor to ask for a referral for their work.

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When to Quit -- From People Who Hate to Quit

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Lessons in Overcoming and Navigating the Obstacle Course Called Life

There seems to be a misconception that quitting is failing.

We grow up thinking of our achievements as being either successful or a failure. Believe me, I've spent my life unwilling to quit things. Those who are stubborn will often go far -- too far -- to ensure it's not a failure. But that is not always smart. In fact, there is a time to quit.

Truly incredible individuals can vouch for this with stories of perseverance, resilience and success. These same people have also taught me that, if you believe failure is the easy way out, quitting can often be far more difficult than continuing.

Learn to save yourself from yourself.Dan Richards is the CEO of Global Rescue, a company dedicated to rescuing people caught in perilous situations. The people he saves are not quitters. In his line of work, people underestimate the severity of the environment while overestimating their ability to survive and get through real struggle. Global Rescue deals with people who flirt with danger -- the ones who attempt to climb Everest, traverse the Sahara Desert, or scale insane rock formations.

Richards teaches the importance of real, honest risk-assessment. That involves correctly calibrating your perception of the environment you're entering. Those who do not set realistic expectations -- be it on Everest or in business -- quickly find themselves in real danger that can cause harm.

Realize you're in the wrong race. Professor Robert Sternberg, Psychologist and Psychometrician at Cornell University, believes valuable qualities for success are not tested for in school. One such quality -- the ability to think critically -- is essential when deciding when to quit and when to push through. Professor Sternberg teaches people to realize when they're "in the wrong race."

That means recognizing that achieving success does not always result in reaching the original goal. Sometimes the path was right, but the goal was wrong; or the goal was right, but the path was wrong. Constantly reexamine your path and your goal. Understanding you're in the wrong job, marriage, race, environment makes all the difference. Knowing this isn't the hard part (you will feel it) -- the hard part is creating reasons to stay in the wrong environment.

Persistence pays off.Zach Even Esh, Founder of The Underground Strength Gym, knows what failure looks, sounds, tastes, and feels like. When he started training athletes, Zach recalled the lessons from his youth when his dad lost job. Sometimes, you don't have a choice to quit, you are forced to. His father chose to get right back to the task of getting a new job rather than wallowing.

Zach never let circumstance be the boss. He believes that momentum is everything, and the little things add up quickly. When confronted with the choice of cutting your losses or pushing on, find ways to make "it" happen while avoiding the excuses. That means knowing when you are truly at the end of the road, versus when you are trying to find an excuse to get out of something.

Have a cup of tea. Sir Ranulph Fiennes is the World's Greatest Living Explorer [Guinness Book of World Records]. He holds numerous records of achievement because he knows when to push through and when to make the right call to quit. He is direct, bold, and persistent. It took him three attempts to climb Everest. So you may assume he attacks obstacles head on, right?

If Fiennes approached life that way, it's likely he'd be dead. As an exceptional explorer, he avoids unnecessary risk, opting for the smarter approach. Have a cup of tea, he recommends, and find a way around obstacles. Don't let ego get in the way. Grit is a word Fiennes pairs with arrogance. It may sound noble, but it could lead to disastrous outcomes.

Burnout and boredom are the result of poor goal-setting.Gracie van der Byl is an endurance swimmer who approaches distance-based tasks the way others ought to approach work and life decisions. Many people view goals as giant accomplishments -- the culmination of all that hard work and sacrifice. Gracie takes a different method, one that ensures she finishes what she set out to originally accomplish -- she lives in the now.

Rather than quitting when she is tired, she approaches a 100-mile swim one stroke at a time and chips away at the task at hand. Perspective is everything. What looks like an insurmountable task at first is often just a series of smaller attainable goals that can be reached.

Reframe your perspective. The only race that matters is the one you're in. Tyler Wren is a 33-year old professional cyclist. In 13 years, he's learned a thing or two about competitive cycling that can be applied elsewhere. In a sport marred with controversy, constant competition for sponsors, funding, and, of course, a spot on the podium -- Tyler understands the harm in letting external influences take away from your perceived goals.

Wren has learned that, while hard work, dedication, and sacrifice are all requirements for driving success, success is not guaranteed. To Wren, success is personal and extends beyond the realm of professional cycling. "Set goals, work hard to achieve them, and you can make good, consistent decisions to get to those goals -- that's success to me. There is always going to be negativity, and naysayers and cheaters out there, but if you can focus on your own decisions and what's meaningful to you, that is success to me."

Align your values with your beliefs. While working on Wall Street, I saw people succeed by going with the flow and subscribing to an ideal that could be less-than-rewarding to one's health and relationships. The people who most often succeed set values that align with their beliefs. These are people who chase dreams and ideals, not money.

Simply working a job you hate, or continuing on a path because you 'don't want to fail' is a dangerous game. Don't forget that quitting is an option -- and it can be the right thing to do. It takes as much energy to rationalize why you are doing something, as it would to fix it. Quitting does not show weakness, the inability to quit does. If you are going down the wrong road, stop, evaluate, and fix it.

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Why the Self-employed Need a Resume

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When was the last time you looked at your resume? Do you even have one?

Before you stop reading because hey, you're a successful business owner and you don't need no stinkin' resume, consider the following points:

  • The local chamber of commerce has just named you Employer of the Year.

  • Your industry council invites you to be the featured speaker at the next convention.

  • Your business is booming and you need a bank loan to finance your expansion.

  • You're on the short list of people who will be featured on an upcoming national podcast or webinar.

  • You want to be a presenter at a TED Talk.


If you had to send off an up-to-date resume to these people right this minute, detailing your work and community history, could you do it?

If you're like most people, the answer would be "no."

For all the circumstances listed above, wouldn't it be better to have something ready to send out at a moment's notice?

Keeping our resumes updated also can serve as a great reminder as to what we've accomplished lately. We are often so buried in the daily grind, caught up with problems that arise, that the memory of our sweet victories is short-lived. Having your resume up to date will help you keep track of those accomplishments and give you the chance to appreciate all that you've done.

It's a great pat on the back -- a reminder of your own worth. That's always good for the soul.

Here are some tips on how to revamp your resume, or build a new one.

1. Do not overwrite your old resume. This is rule No. 1. Why? As you tweak and improve your resume, some accomplishments or job duties will naturally fall off. At least right now. There may come an occasion where you will need to revisit earlier resumes to pull out old job titles and dates in order to provide the targeted information you are asked to give. I've got more than 30 resumes in my computer files, dating back to 2002. And yes, they have been helpful when I needed to mine them for specific information.

2. Update it once a month. You will want to weed out some old stuff, or condense it, but your primary goal is to keep up with your short-term achievements. Say you've led a new product development team to a successful conclusion, or you've taken some online training. Put them in.

3. Give it a sharp focus. Everything in it should be tailored to your specific purpose, whether it's to get the job of a lifetime to provide information for your acceptance speech. That means, of course, that even if you have something you've just updated, you'll have to adjust it for your present needs. And that's so much easier to do when the rest of it is ready to rock 'n' roll. P.S. It also makes a great foundation for short bios.

4. You're resume has 1 minute to make an impression. This holds true whether you are a first-time job-seeker or if you want to be a conference speaker. It needs to be clear and functional. Make it attractive without going over the top. It's a resume, not a circus poster.

5. Organize it around your skills and accomplishments, instead of a chronological listing of jobs you've held or a list of job duties. This is particularly important if you are moving from one industry to another, where expertise in one field doesn't easily translate to another.

6. Check your work. Proofread, spell-check and get others -- preferably people who are not in your industry who can spot the mind-numbing jargon -- to look it over. And then do it all again.

7. Be brief but thorough. This is not a tell-all book. Get in all the pertinent information and go back to condense once you've got it all down.

8. Watch out for personal details. Most of us know this, but here's another reminder: Don't give your height, weight, age, date of birth, marital status, sex, ethnicity/race, health, sexual orientation, Social Security number, religious affiliation, salary, political party or anything else that could be considered controversial. If you do volunteer work for your church, it may be better to say "volunteer in a soup kitchen" rather than "serve on the 354th XYZ Church homeless committee." Let the circumstances be your guide on that.

What's one big thing you need to add to -- or delete -- from your resume? I'd love to hear!

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Do You Qualify for Zero Capital Gains Taxes?

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Before you know it, the yearend will be on the horizon. And that may raise questions about selling stocks and harvesting gains -- if you still have them! The time to take a look is now, so you can offset gains and losses and pay the lowest amount of taxes.

Tax issues don't apply to stocks or mutual funds held inside qualified retirement accounts, such as IRAs, 401(k) plans and 457 plans. All withdrawals from those plans are taxed as ordinary income at your then-current rate (except for Roth withdrawals, which are tax-free).

Some of the basic rules of capital gains taxation are complicated, so discuss any decisions with your tax adviser. But here are five things to keep in mind.

1. Capital gains tax treatment. If you have held an asset for longer than one year, then you receive a preferential long-term capital gains tax rate when the property is sold. If held for less than one year, it is considered a short-term capital gain (or loss). The amount of the gain is calculated based on the difference between the cost basis and the price of the sale. Cost basis, according to the IRS, is "the amount of your investment in property for tax purposes." It may be impacted by things like depreciation and capital improvements, but in the simplest cases, such as stocks, it's the difference between the purchase price and the price of the sale.

2. Taxes on capital gains. Tax rates on capital gains are determined by your tax bracket, but a significant number of people will actually pay no capital gains tax on the sale of assets held over a year! The maximum capital gain tax rate is 20 percent. But those in the 10 percent and 15 percent income tax brackets pay zero capital gains taxes. For 2015, that group includes singles with less than $37,450 in taxable income or joint filers with taxable income under $74,900.

3. Netting gains and losses. If you have some long-term capital losses as well as gains, and you establish that loss in the same year, then you are taxed on the "net gain" -- the difference between gains and losses. That's why you should review your portfolio not only for gains, but for losses to offset those gains. If you sell a stock to establish a loss, but still want to own it, you must wait 30 days to repurchase it or the loss will be nullified.

4. Deducting Losses. If your capital losses are more than your capital gains, you can deduct the difference as a loss on your tax return. This loss is limited to $3,000 per year per person, or $1,500 if you are married and file a separate return. Any excess losses can be carried forward to future years. But you cannot deduct losses on the sale of property that you hold for personal use, such as your home or car.

5. Special Tax Rates for Home Sales There is a special exclusion of $250,000 in gains per person on the sale of a personal residence. So a couple filing jointly and selling their long time residence could exclude $500,000 of gains on a one-time basis. Details apply, as they say in the commercials, so check with your accountant to make sure you qualify.

It's never a good idea to buy or sell investments solely for tax purposes; however, you should never ignore the tax consequences of your decisions. For example, a low-income retiree might want to delay withdrawals from an IRA, which would boost taxable income, and instead sell stocks with gains, which may incur no capital gains taxes.

It's worth discussing taxes with your advisor before year end. Zero taxes on stock gains are within reach of many. And that's The Savage Truth.

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A Framework for US-India Economic Cooperation

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This post was co-authored by Ajay Banga and Frank Wisner.

Indian Prime Minister Narendra Modi was elected in May 2014 on the back of bold promises to restore growth and vitality to the lagging Indian economy. He promised millions of new jobs per year, especially for India's burgeoning youth, and a return to high growth rates after several years of stagnation. He laid out a bold reform agenda with economic growth at its heart.

Mr. Modi has accomplished some of what he promised. On the domestic front, he has undertaken many reforms that have been welcomed by the business community. Foreign direct investment is up 31 percent, and GDP growth has returned to the 7 percent he had promised.

But Mr. Modi's reform agenda has not yet extended to India's historically protectionist trade policies. Unlike many other developing countries, particularly in Asia, India remains largely outside the web of global and regional trade compacts. India's few existing trade agreements - with Japan and ASEAN for example - are weak and limited. India long ago expressed interest in the Asia Pacific Economic Community (APEC) community but there was then a moratorium on new members; they have not renewed their application since the moratorium was lifted. As a non-APEC member, India is not eligible to join the ongoing trade talks known as the Trans-Pacific Partnership (TPP). In those trade and economic talks in which India has participated, such as the global Doha trade round, its policies have been protectionist.

For Mr. Modi to achieve his ambitious economic targets for India, he must extend his reform agenda to the realm of trade. If he does so, the benefits to his economy and people will be substantial.

A new report by C. Fred Bergsten at the Peterson Institute for International Economics entitled "India's Rise: Toward Trade-Led Growth," lays out the stakes. If India were to complete its domestic reforms and join an ambitious TPP agreement that included all of the APEC countries, the report predicts India could expand exports by more than $500 billion per year. Indian national income could rise by 4% per year, by more than $200 billion. The Peterson Institute study - supported by the US-India Business Council (USIBC) - vividly demonstrates the benefits to India of building an expanded trade agenda into its domestic reform agenda.

By contrast, if India stands aside while its Asian and Pacific neighbors join an expanded TPP, the Peterson study forecasts export losses of $50 billion per year, as trade is diverted away from India and toward the negotiating partner. And of course, India would forego the $500 billion in potential gains from expansive trade engagement.

The economic incentives laid out in the Peterson study are clear: stand pat with India's protectionist policies and lose trade and economic vitality to others and lose $50 billion in exports annually, or embrace a more open approach and reap the economic benefits at home, with millions of additional jobs and up to $500 billion in added exports. As the report notes, "No country, including India during its growth spurt of the past decade, has achieved such expansion without deepening its interdependence with the world economy."

In light of Mr. Modi's recent trips to New York and Silicon Valley, we in the business community urge him to take this opportunity to consider a new direction for India on trade, and for the Obama administration to take the opportunity to set a new frame for US-India relations.

Prime Minister Modi could start by signaling that India was ready to be a productive trade partner - one that would raise tough questions but also take on the tough domestic issues that need to be resolved for India's trade potential to be realized. He could once again apply to join APEC, and show his country's seriousness and attractiveness by signaling a new openness to expanded trade and engagement. He could take an interest in the TPP talks, which are reportedly near to conclusion for the initial dozen countries, and signal a desire to join in the second wave. He could seek to join important plurilateral negotiations on services and environmental goods. And he could invigorate longstanding efforts to negotiate a bilateral investment treaty (BIT) with the United States.

The United States for its part should embrace and encourage such a path breaking initiative. If Modi were to extend his bold reform agenda to India's trade practices, the US could use its considerable influence to assist India's integration. With President Obama having already welcomed India's interest in joining the APEC forum, this is the time for India to move toward membership, with a new and open trade agenda. As a leading player in TPP and plurilateral negotiations, the United States could facilitate and support India's positive engagement.

Key members of the US and Indian cabinets will meet in Washington this month. A week later, Obama and Modi will meet in New York. The Peterson study shows the dramatic benefits for India of a new path on trade. And for both of our countries, a broadened economic engagement and partnership could provide the pathway to a new framework of engagement that would solidify India's role as a strategic partner of the United States.

Just as President Bush and Prime Minister Singh set an enduring frame for US-India relations in 2005 with the historic Civil Nuclear Agreement, President Obama and Prime Minister Modi have the chance to forge a durable framework for our relations for years beyond this administration - building on their excellent personal relationship, setting a path for the next US president, and giving President Obama his own legacy on the subcontinent.

Ajay Banga is president and CEO of MasterCard, and Chairman of the U.S.-India Business Council (USIBC). Frank Wisner was U.S. ambassador to India. He and Nelson Cunningham serve on USIBC's board.

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The WebMD Darwin Stage At #AWXII

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See the very best in marketing, advertising and technology at The Darwin Stage, presented by WebMD. A full slate of engaging conversation around the topics at Advertising Week can be found on-demand and live.

Live


On-Demand
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Bernie Sanders, Not Hillary Clinton, Deserves Union Endorsements

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The National Education Association (the union to which I used to belong) is considering an early endorsement of Hillary Clinton. This decision, like the American Federation of Teachers' endorsement of Clinton on July 11, would be a huge mistake.

One reason is that it would violate members' trust. As Peter Greene, Steven Singer, and Anthony Cody have noted, teacher voice is too often ignored in education reform conversations. If the NEA follows the AFT and makes a presidential primary endorsement without ample membership involvement, its teachers will feel silenced by their own union. Not only would that likely depress voter mobilization efforts and spark a backlash within the union, it also runs counter to the very principles of what a union is supposed to be.

An early Clinton endorsement would also be a mistake because she's a suboptimal candidate. While Clinton is far more union-friendly than anyone running for the Republican nomination, her labor credentials are significantly worse than her main challenger in the Democratic primary, Vermont Senator Bernie Sanders.

Sanders has been a steadfast union supporter since the 1970s. His advocacy on behalf of workers as mayor of Burlington, Vermont in the 1980s helped foster the growth of the city's socially-responsible business culture.

"Thanks to the enduring influence of the progressive climate that Sanders and his allies helped to create in Burlington," The Nation reported in June, "the city's largest housing development is now resident-owned, its largest supermarket is a consumer-owned cooperative, one of its largest private employers is worker-owned, and most of its people-oriented waterfront is publicly owned. Its publicly owned utility, the Burlington Electric Department, recently announced that Burlington is the first American city of any decent size to run entirely on renewable electricity."

Sanders has continued to advocate for the same causes in Congress over the past 25 years. In 1994, for example, he introduced the Workplace Democracy Act, legislation designed to strengthen collective bargaining rights. He currently supports the Employee Free Choice Act, which would make it easier for workplaces to hold union elections, and plans to introduce a new Workplace Democracy Act this fall. He has "convened annual meetings of labor activists to help them develop more successful organizing and bargaining strategies" and still walks picket lines with workers.

To be fair, Clinton also supports the Employee Free Choice Act. Her campaign rhetoric is pretty pro-union, and the promises she makes in her video to NEA members don't sound all that different than those made by Bernie.

But Clinton's record is significantly worse than Sanders's. She served on the board of directors of Walmart -- which to this day remains one of the nation's most notoriously anti-union businesses -- from 1986 to 1992, for instance.

According to reports that surfaced in 2008, Clinton sat through dozens of board meetings without ever speaking up on behalf of organized labor. Instead, she stated that she was "proud of Wal-Mart and what we do and the way we do it better than anybody else." Though she has since renounced Walmart's business practices, Clinton maintains close ties with Walmart executives and lobbyists. And during her presidential campaigns, she's surrounded herself with staffers who have troubling anti-union connections.

The following meme, describing cumulative donations the candidates have received over the past thirty years, is illustrative:

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Clinton has worse policy positions on key union issues as well. Bernie Sanders has been a leader in the effort to oppose the Trans-Pacific Partnership, a "free trade" deal that could undermine environmental and consumer safety protections and have harmful impacts on workers both in the U.S. and abroad.

Clinton, despite recent attempts to distance herself from the TPP, was heavily involved in negotiating and promoting it. Sanders has been a vocal proponent of a $15-an-hour federal minimum wage by 2020, which workers around the country are campaigning for; Clinton long resisted taking a specific position on the issue and only recently spoke favorably about raising the federal minimum to $12-an-hour.

Sanders's positions on education issues also tend to be more power-balancing than Clinton's. Both candidates have called for universal pre-K and increased college affordability, but while Sanders believes education is a right that should be guaranteed free of charge to all students, Clinton hypocritically opposes free college for "kids who don't work some hours to try to put their own effort into their education." At the K-12 level, Sanders also has a stronger vision and record.

After initially supporting the House of Representatives' version of No Child Left Behind in May of 2001, he voted against the final version of NCLB that year because he foresaw problems with "the bill's reliance on high-stakes standardized testing to direct draconian interventions;" Clinton, on the other hand, cast her vote in favor of NCLB.

Sanders believes that "the federal government has a critical role to play" in education policy, one that includes "guaranteeing resource equity," "increased emphasis on a well-rounded curriculum," and providing "the resources necessary to provide effective professional development."

Clinton might not necessarily disagree, but while Sanders asserts that he will "direct education funding toward the low-income students who need it most" in his response to the AFT's candidate questionnaire, this commitment is noticeably absent from Clinton's writeup.

In fact, on practically every topic -- from criminal justice issues to health care to foreign policy -- Sanders has Clinton beat. His platform isn't perfect, but it's far and away more in line than Clinton's with what typical Democratic voters profess to want.

As far as I can tell, nobody at the AFT (or NEA) actually argues that Clinton has better policy positions than Sanders; their endorsement processes seem to be driven by the belief that Clinton is more electable.

The problem with that thinking is twofold.

First, Sanders is actually just as electable, if not more so, than Clinton. In national polls that pit potential Democratic nominees against potential Republican nominees, Sanders and Clinton do about as well as each other.

If Sanders had anything like Clinton's name recognition, he'd almost certainly outstrip her. Among voters who know who he is, Sanders's favorability is much higher than Clinton's (see page 5). He's shooting up in Democratic primary polls as more and more voters learn about him and now holds sizable leads in New Hampshire, Iowa and Oregon.

College students prefer Sanders to Clinton by more than a 3-to-1 margin, policy positions like the ones he holds are wildly popular across the board, he's shown the ability to earn the support of voters that Democrats typically write off, and his campaign is showing no signs of losing momentum.

Second, the biggest impediment to a Sanders victory is none other than the political calculus the unions seem to be engaged in. Politicians are electable if people are willing to support them, while concerns about electability generally undermine progressive goals and become self-fulfilling prophecies. Rather than settling for Hillary Clinton because they -- erroneously -- think she's the best that people will buy, unions should rally behind the better candidate -- Bernie Sanders -- and start selling him to the American public.

Labor for Bernie, a grassroots movement started by rank-and-file union members, could ultimately prove more important than endorsements from the major national unions. And Sanders already has the support of National Nurses United.

Nonetheless, it's incumbent upon NEA leadership, and the leaders of other major unions, to start paying attention to why so many union members feel the Bern. Sanders, much more than Clinton, deserves organized labor's official support.

A version of this post first appeared on 34justice.

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A Mastermind in a Garage? It Happened at LinkedIn

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12 people. 1 garage. Endless creation.

You gain so much power from a mastermind event. It's a chance to bring together people from all kinds of industries and backgrounds. Guards drop, hard questions get asked and passions soar.

Here are my 3 biggest takeaways from Shawn Shepheard's mastermind event hosted at LinkedIn headquarters in Toronto.

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1. Those who speak up in brutal honesty and vulnerability are more successful. There's power in saying, "I don't know" or "My gut says this isn't a move we should be making now".

You gain respect from your colleagues. Saying how you feel makes helps those around you understand better.

If you don't want to take this advice, you can always wait until you can't deal and explode. Office Space style.

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2. Get out of the bubble. When's the last time you talked to someone outside of your company or industry? We often get sucked into our own circle of the same people that keep giving the same answers.

A mastermind introduces you to different perspectives. It can alert you to behaviour or perspectives you may not have thought about and ultimately provide greater resources for you to take back.

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Photo by Jessica Young

3. Productivity. We all know it but sometimes we need the accountability. Being part of an ongoing mastermind group can help you save time and learn to work more efficiently. It's amazing what you do when you know someone is going to ask you about it.

It's one thing to say to myself, "You know what? I'm going to clean my house from top to bottom. Yeah...I should do that" and quite another if cranky in-laws are coming after a terribly long car ride and Fluffy has been continuously puking in the back seat.

You pare down to the essentials. You prioritize. You get s*&t done.

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Photo by Jessica Young

Read more at Jessica's website here.

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Founder of Stitch Fix Answers 4 Questions for Marketing Innovators

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Article by Ernan Roman
Featured on CMO.com

Inspired by the opportunity to create a truly personalized online shopping experience by blending the best of brick-and-mortar retail with an innovative approach to data and technology, Katrina Lake founded Stitch Fix in 2011 while she was a student at Harvard Business School. She has since grown the company to more than 2,000 employees across the country.

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Prior to founding Stitch Fix, Lake honed her skill set at the intersection of fashion, retail, and technology at social commerce company Polyvore; she also consulted with a variety of e-commerce and traditional retailers during her time at The Parthenon Group. Lake holds a B.S. in Economics from Stanford University and an M.B.A. from Harvard Business School.

Lake recently participated in our "4 Questions for Marketing Innovators" series.

1. What is one marketing topic that is most important to you as an innovator?

I'm most passionate about personalization. I firmly believe that personalized experiences with brands will most drive loyalty and relevance for customers in the future.

2. Why is this so important?

Personalization is a popular word in retail, and people often misuse it to describe simple marketing tactics, like segmenting emails or using big data to identify the likely gender of a visitor to their websites. But the true art of personalization at a one-to-one human level is what I consider true personalization--and I see very little of that happening today in the online world. Figuring out how to scale the very human art of personalization is difficult, but I believe that it is also the key to building a lasting connection with customers for the long term.

3. How will the customer experience be improved by this?

Fundamentally, personalization is bringing focus back to customer centricity--really being able to understand what it is that your customer loves about your brand and how you can better serve her. Today's customer is less about the "it trend" or the "must-have jeans." What is more important to her is feeling like an individual and how what she is wearing or doing reflects her as an individual. Brands that are successful will help each customer feel like she is the best version of herself.

4. How will this improve the effectiveness of marketing?

Delivering a service that consumers feel truly connected to and providing an experience that people love and love to organically share and talk about is the most effective form of marketing I know. Just as people who have an amazing meal naturally tell friends about the dining experience, we find that personalization can create amazing experiences that people love to talk about.

Bonus: Favorite activity outside of work?

Outside of work, I love running, cooking, and eating with family and friends.



Ernan Roman
President, ERDM., (ERDM)


Inducted into the DMA Marketing Hall of Fame based on results companies achieve with three Customer Experience methodologies he created: Voice of Customer Relationship Research, Integrated Direct Marketing and Opt-in Marketing.

ERDM specializes in conducting Voice of Customer research to identify Customer Experience strategies that generate significant increases in response and revenue for clients including IBM, MassMutual, QVC, NBC, Microsoft and Norton AntiVirus.

Named by the Online Marketing Institute as one of the "2014 Top 40 Digital Luminaries" and by Crain's B to B Magazine as one of the "100 most influential people in Business Marketing".
Ernan's latest book is titled, "Voice of the Customer Marketing". He also writes the widely read and Huffington Post published blog,"Ernan's Insights on Marketing Best Practices".

www.erdm.com
ernan@erdm.com

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BlackBerry's Bizarre Product Launch Exposed a Crippling Weakness

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BlackBerry's awkward unveiling of the company's new Android smartphone exposed a long-held belief that continues to restrict the company's performance.

In an exclusive interview with Business News Network, BlackBerry CEO John Chen introduced the BlackBerry Priv.

The performance fell flat. Fortune and Engadget pounced on Chen's abysmal presentation as he stumbled his way through the first public look at the company's next big bet.

But the concern shouldn't be about the horrible product pitch. As potential customers and investors we should be questioning the corporate belief that allowed it to happen.

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In its recent earnings release BlackBerry reported a hardware sales decline of 42% in the first six months of fiscal 2016 compared to the same period in 2015. The company is pinning the slip on "decreased demand due to intense competition and the Company's aging product portfolio."

With the fate of the company riding on a successful product launch we're right to expect a focused, powerful campaign.

We didn't get that because of a corporate belief carried over from BlackBerry's glory days: that the sales responsibility lies with the channel partners, not BlackBerry.

The company's direct customers have always been global wireless communications carriers, third party distribution companies and enterprise clients. BlackBerry never really had to speak to you and I, the people holding its smartphone in our hands.

But Apple changed the marketing game. Steve Jobs and his execs spoke directly to us. Apple CEO Tim Cook and his team continue to stage a magic show every year and make us proud to stand in line, cheered on by our fellow Apple enthusiasts.

Although enough criticism has already been thrown at CEO John Chen's product pitch, it's valuable to point out what made it weak. A transcript of the interview shows Chen made five major gaffes, each one harshly magnified against Apple's beautifully crafted presentations.

1. A confused storyline.
BNN: "This is the phone. The Priv?"
Chen: "The Priv. Now it stands for privacy."
BNN: "Ok not privilege?"
Chen: "Privilege and privacy. Privacy and privilege. Actually privacy is the, umm... it's what you get? Security is what we provide? And privilege is what you end up. And it, that's how we think about it, ok?"

2. An unprepared demo.
"So obviously it runs Google, right, and then um... ooo.. huh... (six screen taps)... well, then I have to set it up. Um, this, this is a demo unit. And so it runs Google, and... I'll go back to my main screen and see whether I could get anything... well I was... (trails off.)"

3. Poor product knowledge.
BNN: "And this is the first curved?"
Chen: "First curved. Yeah. Of ours. Um, and you have the latest specs. I mean literally, the, you know, the latest Qualcomm specs, and, and the cameras and all that good stuff."

4. A weak claim to fame.
"And, and the, and... it's touch obviously, you saw that, and the claim to fame, obviously, is the, is slide. That's why a lot of people would call it a slider. You slide out and have the QWERTY keyboard."

5. Tired benefit statements.
"And the QWERTY keyboard also has capacitive touch. So this could be your mouse. When you're looking at... when you just... your finger would be like a mouse, the... When you're looking at, like, ahh, web. Web. You know you're doing your web surfing. And, or you, or, or reading text, you know, big text, or doing big, reading big email, and, so you can move it around."

Smartphone marketing today requires an emotional connection with the consumer. We demand the story. At its own peril, BlackBerry hasn't recognized that yet.

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Donald Steel: All Crisis Are Predictable

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How to prepare for crisis situations? Who in your company should be involved in the crisis management process? How should Volkswagen handle the emissions scandal?

There are only some of the questions that I recently discussed with Donald Steel, one of the world's biggest experts on crisis communications.

A specialist in reputation and issues and crisis management Donald works with companies in the UK, Europe, Middle East and Asia Pacific. He was previously the BBC's Chief Communications Adviser and was for 11 years the Corporation's Chief Media Spokesman.

He is widely regarded as an expert in the reputation and crisis communications fields and is a frequent speaker on the the topics, including at the London School of Economics.

In addition to his own practice, Donald is Associate Director of Crisis Communications at Kenyon International Emergency Services, the world's largest commercial disaster responder and a director at Johnston Associates, a leading aviation PR company based at London Heathrow.

Drawing back from your 20 years of experience in crisis communications, what do you think are the biggest mistakes that companies make when it comes to crisis management?

Firstly, a failure to respond quickly enough. This is even more true in the instant social media age, where a crisis can be played out live on applications like Periscope. It allows others to seize the agenda. Once you lose you control, it's hard to get it back. Secondly, a failure to tell the truth. Lying is a very bad strategy in a crisis, if it's discovered.

What was your most challenging experience in your long career as a communications expert?

Two months after I began as head of the BBC Press Office in London, the most popular TV presenter in Britain was shot dead on her doorstep one morning. Jill Dando was about to get married and she had just presented a charity appeal for the people of Kosovo. Initially, terrorism couldn't be ruled out. We began to receive a huge number of threats against individuals at the BBC. It plunged the BBC into a crisis. Jill's fiance, family, friends and colleagues ended that day with a terrible new reality that did not include someone the whole nation adored. There was real and justifiable fear amongst many prominent artists, many of whom I spoke to. I learned that the most important impact of a crisis is on human beings. When you lose money, it's important, but you can work hard and make some more. When someone dies, they cannot be replaced. It's all about the victims.

All communicators claim that preparing for crisis situations is key to effective crisis management but it seems that when the crisis actually happen many companies still seem unprepared. What is key when it comes to preparing for crisis situations? What scenarios should companies look into?

With rehearsal and training, a crisis plan is worthless. In a crisis, people will not be familiar with their roles and your plan in untested. A good crisis plan will focus on what's known as consequence management. The range of actions it describes should cover the wide range of things that can happen in your company, from an inability to trade to loss of life. All crisis are predictable. If they are predictable, then they can be planned for.

One of the things that is widely misunderstood about crisis management and communications is how it should be evaluated. Too much weight is placed on the howl round of comment and criticism on social media and the mainstream media in the midst of a crisis, much of which is time-filling until something more interesting happens. The real test for a business is whether the actions taken were successful in protecting the company's value and ability to make profit in the future.

Who in the company should be involved in the crisis management process?

A good crisis plan defines different levels of crisis - often three, and outlines the roles and responsibilities for key individuals within the company. The CEO's role, for example, will not usually be to manage the crisis, but to set the strategy and where appropriate to focus on communicating the company's position. This is, for example, what would happen in most major airlines after a serious accident. Other key roles need to be identified, and importantly you need to work out how how you can mobilise these individuals very quickly indeed. I haven't dealt with too many crises that began during office hours. In the middle of the night, when they are called, the key personnel need to know exactly what their roles and responsibilities are - these may differ from their day jobs in a crisis.

What are the most important things that every company should consider when doing media interviews during crisis situations?

It is too late to undertake crisis media training when the BBC and CNN are outside. Invest in it now. Where people are affected in a crisis, your interview responses should be focussed on them, and with them in mind. I still find myself occasionally shouting at the television "It's not about you!" when I see someone talking about the impact of a crisis on their well-remunerated existence, when people have been killed or injured or consumers affected. You may be faced with an aggressive interview, and you need to be prepared for it.

In times of crisis CEOs are usually the ones that should take the responsibility. In what cases should a CEO of a company resign?

There are many factors in whether there should be a change at the top in a crisis. One is the culture where the company is based. It may be that it is going to be best for the CEO to stay and manage the company through a period of great instability. Sometimes that is just untenable. A good example of this is the resignation of VW CEO Martin Winterkorn. There's no suggestion he knew about what was going on at VW, but in a crisis which is threatening the entire future of the company, and damaging the image of German manufacturing, he could not have survived for many more days in the role. Robert Jensen, the highly experienced CEO of Kenyon International Emergency Services, the world's leading commercial responder to incidents involving death or injury, believes that if it's clear you should go, you are better to resign quickly than be pushed. That way, you retain some sense of personal integrity.

Social media has changed the game for many companies and has made them more prone to crisis than ever before. What is the key to effective crisis management online?

I'm not sure I agree that social media has made companies more prone to crises. In fact, I do not believe there is any such thing as a "social media crisis". The impact of an event determines whether it is a crisis, not where it is being discussed. We've seen that social media can draw attention to something that becomes a crisis and can amplify it. Social media also presents companies with a terrific way to reach consumers directly. What social media has changed is the speed and intensity with which a crisis develops. The ability to send pictures and video is extraordinarily powerful. And now Periscope, and other apps, allow us to view the situation live. It means that companies must respond very rapidly in an emergency. The so-called "Golden Hour", in which you have time to get your first statement together, is completely finished. We recommend clients respond on social media within 15 minutes of an incident involving death, human injury, or threat to life and safety. That's very challenging. You can only do that if you plan, prepare and rehearse. And make sure your social media team are in the first wave of call-outs in a crisis.

Throughout your 30 years career you have seen many crisis. What company do you think has the best example of effective crisis management?

Richard Branson, of course, in almost any situation. He brings a huge reservoir of trust, carefully built up over many years, to every situation. But more recently, Tony Fernandes, the charismatic CEO of Air Asia brought the crisis communications playbook to life after one of his aircraft was lost last December. Quick, clear, sincere and human, almost all of his communication was directed towards the families who had lost loved ones. He was highly visible, and his lack of polish made him seem all the more genuine. Throughout the crisis, he never forgot his staff, who were also grieving. They had an airline to run and he used Twitter to bolster up his team (or Air Asia All-Stars, as he calls them). "Stay strong", he told them, redolent of the phrase "Keep calm and carry on" used by the British Government during the Second World War when the public began to show signs of damaging fear in the midst of repeated bombing. Mr Fernandes later said that while he had rehearsed for such an event, "nothing can prepared you for this". But behind him were a team who were clearly carefully practised and ready for this terrible moment.

You are currently advising many airlines on crisis management. How well do you think Malaysia Airlines managed the crisis after the disappearance of their place?

Malaysia Airlines is a reputable company. Clearly there are things that now, the airline will do differently. And they showed in the second, tragic, loss of MH17 how much they had learned. But there was a great deal of uninformed and superficial criticism after MH370, a great deal of it on social media, too. In the early part of the crisis, it seems clear that they believed they might be dealing with a hijacking, and in these circumstances you will avoid communicating and take the advice of the security services. Secondly, the Malaysian Government took over the communications and led the press conferences. These are very tough events. You have to be ready for them. My work in Asia-Pacific includes helping CEOs and other senior figures prepare for the aggression and discourtesy they will face from the Western media. They just don't ever see it in their day-to-day lives. Aggression is a journalistic technique. You can train anyone to use it. You can also be trained in how to respond in a calm and assured way. It's just business, it's not personal.


Hillary Clinton's email incident has been on the news frequently. How well do you think she managed this crisis situation? If you were on her team what would you have advised her?

I'm a regular visitor to the United States and I am loving every minute of the whole circus. I brought a Hillary figure back from my last trip to San Francisco. You can make her point at you with a thrilled expression. But I've been trying for years to understand American politics and I still don't. One of the challenges of modern popular journalism is to get beyond just reporting events. It's becoming more difficult as social media reduces attention spans. A previous boss at the BBC, Lord Birt, said BBC News should be on a "mission to explain". Go on the BBC website and you'll still see them doing it.


If you were on Volskwagen's communications team, what would you advise them? Do you think they are managing the recent scandal effectively?


The problem for VW is that the crisis is complex and involves many countries and agencies and potentially huge civil and criminal liability. Clearly VW is not in control. All of its efforts will now be directed to regaining control. This will be challenging, will take time, and will be very, very expensive. Once you lose control in a crisis, it's extremely difficult to get it back. However, there is massive trust and affection for the VW brand. How many brands have starred in a series of movies, in the way VW did with Herbie? Of course, that trust has been severely dented, but not extinguished. There will be few people taking any pleasure in the situation VW is in.

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How to Get Rich Slowly - 3 Ways You're Self-Sabotaging

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This isn't a get rich quick scheme or a "how to get rich fast" tutorial. If you're looking for one of those, then you already have a problem with how you think about money, business and success. Short of winning the lottery or inheriting millions, there isn't any way to get rich overnight so stop looking for one and start planning ways to get there legitimately.

The unfortunate truth that very few people will tell you to your face is that you are the primary reason you aren't rich and successful. While there are plenty of factors and even negative forces keeping you down, there are millions of Americans who have overcome obstacles to get to the top. The main difference between them and you is...you! Here are 3 reasons why you are preventing yourself from reaching your goals.

You're A Hypocrite

Yes, I called you a hypocrite. Most people are. You preach one thing, and do another. You claim you're broke, and then find ways to spend money on the latest gadgets. You're frugal on groceries, but spend $100+ a month on an unlimited data plan or cable access. When you get your tax refund, you immediately start planning a vacation you convince yourself you deserve.

If you observe most rich people, you'll realize that a majority accumulated their wealth over the course of decades. The saved, invested, and grew their incomes consistently with the goal of achieving financial independence in mind. While they likely had some moments of hypocrisy as well, the instances were few and far between, and the dollar amounts were small compared to their overall net worth.

So stop being hypocritical and be brutally honest with yourself. Otherwise, you're just hurting yourself.

You're Lazy

Many Americans come home from a long day at work, turn the TV on, eat dinner, watch more TV, peruse their social media accounts, and then fall asleep. Working a job to earn an income is the bare minimum to becoming successful.

You're going to argue that you're tired, right? But who isn't? You can compare yourself to some lucky Americans who got rich easy, but that's a disservice to you and your mental need for motivation. In reality, your role models should be the successful entrepreneurs who worked 10-12 hour days only to come home and work on a side hustle or grow their investments.

Your side hustle can be anything from blogging to freelancing to investing in and managing real estate. For example, I used to work in private equity. After a long work day, I would drink another cup of coffee in the early evening and start working on my websites. I would spend another 2 to 3 hours per day developing content, improving my design, and reading industry news to learn more about SEO (search engine optimization). After a few years, my side income rivaled my salary and I felt it was time to take the plunge to self-employment. All this was in addition to my self-education, reading finance news and making smart investment decisions.

The bottom line is that, if you have a skill set, there is likely a market for it. While you may not have overnight success, just the fact that you are exploring new income opportunities means you are increasing the probably of coming across a venture that has potential for success.

You're Looking For Shortcuts

As I mentioned earlier, if you came across this article while searching for quick ways to make money online, you're taking the wrong approach. The world is full of smart, competitive people who are all looking for ways to exploit their advantages and their competitor's disadvantages. You aren't going to find an opportunity to make thousands or millions of dollars with 30 minutes of research in an industry you know nothing about.

In fact, don't even think about businesses in terms of millions of dollars. Just try to find a product or service you can provide that will earn you a couple thousand dollars a month. Start with an industry you have intimate knowledge of and focus on serving a practical need. As Albert Einstein once said, "Try not to become a man of success, but rather try to become a man of value."

On the flip side, if you have a high-paying job, don't take wild risks trying to hit the jackpot. Be consistent in your saving and investing, find a quality brokerage house for your needs, open an IRA, fully-fund your 401K, invest excess cash in real estate and pay off debts. In the long-run, this is a winning combination.

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6 Tips to Help You Receive Good Online Reviews

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2015-09-29-1443541010-3856696-bigstockIncreaseRating98091542.jpgA smart shopper is an informed shopper and many people use the internet to view customer reviews before making a purchase or deciding which restaurant, movie, or service to use. This places customer reviews as a very important aspect in sales. Both good and bad reviews play pivotal roles in a business's reputation. The more good reviews a business has, the more likely people will be to use it. However, one bad review can place a tarnish on an otherwise shiny reputation. Ultimately the only control over our customers is the service that we provide them. Court Cunningham from the Houston Business Journal has outlined 6 tips that can help you generate more positive reviews for your business:

1. "ASK WHEN YOUR CUSTOMER IS SMILING"
"Seize the moment, and ask for a review after you've wowed your clients." Customers are more inclined to provide you with a positive review when they are happy with your service. The key is timing, simply ask the for a review once you see that they are happy and appreciative of your service.

2. "BE BOLD"
Don't be shy! Use confidence, enthusiasm, and a positive attitude when asking. Many customers, if satisfied with your service, will gladly comply.

3. "MAKE IT EASY"
Provide clear links or specific instructions for your customers to provide a review. The easier the process, the more reviews you will get.

4. "INTEGRATE YOUR EMPLOYEES"
Ask your employees to request a review from all of your satisfied customers. Make sure that each employee understands the importance of positive reviews, and they have specific instructions on how to obtain those reviews.

5. "FOLLOW UP WITH YOUR CUSTOMERS"
If you have noticed that a happy customer has not yet left a review, do not be afraid to follow up with them and request one. Begin with another thank you for their business, and kindly ask if they can provide you with a review of their experience.

6. "SHOWCASE YOUR POSITIVE REVIEWS"
Place your positive reviews on your website. Interested clients will end up on your site anyway, and highlighting previous positive experiences will help your potential customer in their decision to proceed with your company.

As mentioned previously, the only control over our clients is the service that we provide them. A bad review is inevitable, but should not be discouraging. What we can do is utilize these tips to create a generous flow of positive reviews around our businesses making the buying choice easy for our potential customers.

Contact Us for more information about branding and online marketing.

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The #1 Activity All Small Business Owners & Entrepreneurs MUST Do for Success!

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Don’t you find it annoying, if not downright insulting when you read headlines that begin like the one I just wrote? When I read something promising that one “anything” will bring success, my cynical mind automatically thinks: “Yeah, right and I’m the Queen of England!”


But hold on a second! If you take the advice you are about to read, it will, in fact, lead to success. Looking to grow your business, expand your business, change direction, and offer new products or services?


Hoping to keep your business relevant over time?


As small business owners and entrepreneurs, you must keep your finger on the pulse of what your customers and clients want, today and in the future. Or you will surely be out of business!


This one activity is the only way you can do this.


Believe it or not, you are actually doing this activity right now - reading.


Reading will give you the information you need for success. Sure, there are other ingredients you will need to succeed but none will be at the heart of your success in the same way reading will be.


The Great Democratic Equalizer


Reading is what I consider to be the great democratic equalizer. Whether you are a man, woman or child, formally educated or not, small business owner, novice or established entrepreneur or corporate executive, it does not matter.


Reading does not discriminate. Its doors are open to everyone. Everyone is invited to partake in the festivities.


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Reading opens all doors to all people and holds the key to knowledge - which is at the very core of all success!


No matter how vast your knowledge, there is always more to learn. No matter how little you know, you need only open the pages in a book or browse the Internet to expand your knowledge base.


Dr. Ben Carson


Ben Carson, the retired neurosurgeon who is currently running for the Republican nomination for President of the United States, grew up in poverty. Dr. Carson claims reading changed his life. His mother required he and his brother read two books a week and write book reports. Click here to read more about how reading held the key to Dr. Carson’s success. (Dr. Carson’s brother Curtis is a rocket scientist.)


Carson said: “Knowledge is the key that unlocks all the doors. You can be green-skinned with yellow polka dots and come from Mars, but if you have knowledge that people need instead of beating you, they’ll beat a path to your door.”


What small business owner, entrepreneur or professional doesn’t want clients, customers or senior management knocking down their doors? Who doesn't want to be the “go to” expert in their field?


Millennials Reading More than Others


In case you think reading has gone the way of the horse and buggy, think again. Millennials are reading more than their parents. Click here to read this article written by Adrienne LaFrance published in The Atlantic on September 10, 2014.


A Word of Caution


Just because you read something, that doesn't mean it is true. Therefore, carefully vet the author(s) and publications you read so you know where they are coming from. Are they known to have a conservative or liberal point of view? You must always consider the source when reading so you can properly evaluate the information.


Read with an open mind – but don’t read blindly.


I’m not for one second suggesting you only read the opinions of the people and publications you agree with. As a matter of fact, I recommend you do quite the opposite. Read literature that opposes your point of view, in the hopes that you might gain a new perspective and better understanding of the other side, if you will. Perhaps you might gain a new opinion upon reading information presented from an opposing perspective. Read what your competition does so you may come away with new ideas. Read everything and anything.


Summarily, read in the pursuit of knowledge, making sure you understand the orientation of the author or publication that you are reading.


Can you think of ways that reading has contributed to your success?

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A Better Way to Measure the Impact of Higher Education

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Declining state appropriations, rising student debt, parent and student dissatisfaction with the increasing cost of degrees, and skepticism among employers about graduates' job readiness have raised troubling questions about the value and impact of U.S. higher education. Especially difficult to gauge is the performance of individual colleges and universities.



The Obama administration weighed into this tangle two years ago, announcing in August 2013 plans to "measure college performance through a new ratings system" that would enable students and families to select the schools that provide the best value.



The administration backed away from the idea of a government rating system. Just days ago, however, the administration rolled out its online "College Scorecard," which the White House says "provides the first comprehensive data on costs and student outcomes at nearly all post-secondary institutions in the United States." The site, they say, will help students "make informed decisions about enrolling in higher education and choosing the best college for their needs."



Not so fast. The Scorecard, while perhaps a good idea in theory, has serious shortcomings, as it does not acknowledge regional differences, fails to break down the data by field of study, and ignores the impact of transfer students and drop-outs.



The ongoing discussion and publication of the College Scorecard has made one thing clear: America's colleges and universities need to increase their transparency and develop clear performance standards that demonstrate value received per dollar spent.



Various organizations, including U.S. News & World Report, The Princeton Review, and Forbes already rate and compare U.S. colleges and universities. Britain's Times Higher Education magazine provides global rankings. But the rankings and lists often rest on misleading and uninformed data and hidden biases that reflect the creators' notions of quality, but may be at odds with other measures of success.



For example, U.S. News & World Report's "Best Colleges" rankings, the latest version of which also was just released, give disproportionate weight (22.5 percent) to a school's "reputation," a criterion based on opinion surveys that may have been influenced by previous rankings. In effect, respondents are being asked to rate the undergraduate programs of hundreds of universities without any real first-hand knowledge. "Selectivity" is another criterion commonly used in rankings.



Neither measure tells us anything about how well students are learning in the classroom and engaging beyond the classroom. Indeed, what they may tell us is that a school excels at marketing and is able to attract a large pool of applicants - most of whom it intends to reject in order to increase its selectivity score.



Certainly, there must be a better way to determine the value and impact of higher education and how well our colleges and universities are serving the needs of their students, communities and other stakeholders.



The first step in this process is to recognize that U.S. colleges and universities are all different, with distinctive identities, cultures, student populations, and missions - teaching, research, lifelong learning, community engagement, to name just a few. So a one-size-fits-all approach won't do.



We need an evaluation system that is flexible, nuanced, and considers each institution's characteristics, such as its size and mission. The University of North Carolina, Pembroke, for example, is a mid-sized rural state university. New York University is a large private urban research university with a commitment to globalization. Hamilton College is a small rural liberal arts school. Miami Dade College is the largest community college in the U.S., serving more than 160,000 students. An intellectually honest evaluation system will take into account their profound differences.



How can we assess how well such varied institutions are preparing students for personal and professional success and addressing the needs of their wider communities by providing resources and expertise - if this is part of their mission?



It's not by lumping them all together and rating them based on which school has the largest endowment, turns down the most applicants or is best known.



You determine quality and value by comparing schools with similar characteristics and missions and determining which are doing the best job of fulfilling the mission. If the mission of a state university system is to provide a quality education to state residents at a reasonable price, as the North Carolina state constitution mandates - you make affordability part of the equation. If job preparedness is paramount, you look at the percentage of students who have job offers in their field of study within six months after graduation; you look at earnings and job satisfaction one, five and ten years after graduation; you look at job advancement data.



While most college raters in the United States focus heavily on inputs, such as reputation and selectivity, the Higher Education Quality Council of Ontario, Canada (HECQO) relies primarily on outcome-based metrics, such as "value to students" (including affordability and learning outcomes) and "value to society" (including job creation, innovation and citizen engagement). This approach is saying that what comes out at the end is more important than what goes in at the beginning. That makes sense.



Educators and administrators need to get out in front on this. They can't hide in the ivory tower and claim that "academic freedom" provides them with immunity from the kinds of reality checks that parents, students, donors, employers and politicians are now demanding.



Given the contentious debate about rankings that the Obama administration's proposal triggered, faculty, administrators and trustees need to work with other interested parties to identify the outcomes that most reasonably demonstrate success and to develop assessment and measurement systems that most reasonably measure those outcomes.



This is tricky business, so they shouldn't try to do everything at once. Start with voluntary pilot programs appropriate to each sector. Learn. Then expand.



Scott Cowen is President Emeritus of Tulane University and a Senior Advisor to The Boston Consulting Group (BCG). J. Puckett is a Senior Partner of The Boston Consulting Group and Global Leader of its Education practice.

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How a Solar Company Climbed off the Cliff's Edge and Found New Ways to Scale

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By facing the "brutal facts," a fast-growing team was able to anticipate challenges and pivot when necessary.

EthoSolar, a fast-growing commercial and residential solar developer, had a sticky situation to resolve. The company, based in Worcester, Mass., and three cities in Canada, had retained an outside group to perform some sales functions. That group had asked EthoSolar to change the way it marketed its offers to customers.

"The change made the offer to our customers look more attractive but it wasn't consistent with being honorable, one of our core values," says Ethan DeSota, senior manager of marketing, who was on the founding team when the company launched in 2009. EthoSolar said no to the arrangement.

EthoSolar's willingness to face the brutal facts in situations like this, to borrow a phrase from Jim Collins, has become a differentiating factor, as the company has scaled to $20 million in revenue in fiscal 2015.

It reflects the company's work with Les Rubenovitch, a Gazelles certified international coach based in Toronto, for the past year. EthoSolar began working with Rubenovitch during a period of rapid growth. The firm doubled in size from about 19 employees in 2013 to 50 in 2014. "It seemed to be a whole different game at that level," says DeSota.

Using the Scaling Up system for growing a company, Rubenovitch helped EthoSolar build enough trust among team members to have the frank discussions they needed as the company grew and to let constructive debate rage inside the company and meetings. That, in turn, has helped Ethosolar better foresee challenges and change direction when necessary.

Regular Meetings
One crucial first step in the coaching was to show EthoSolar how to build regular meeting rhythms--incorporating daily, weekly, monthly, quarterly and annual meetings. EthoSolar needed help converting the company's goals and priorities to day-to-day, actionable steps understood throughout the whole organization. The meetings provided a place to do that. "This was a place to talk to each other about opportunities, and they all got addressed," says Rubenovitch. "Before it was frequently 'react' mode."

Constructive Debate
To be able to have the discussions needed, the leadership team had to tinker with the company's culture a bit. "We were a very polite organization," says DeSota. "Sometimes polite can border on so polite that we don't really raise our hands."

As Rubenovitch saw it, "They had a tendency to misinterpret being respectful of each other as not challenging. Being respectful means sharing what you think so everyone can change and grow."

As the company's leadership team and employees came to understand that, frank discussions got easier. "We got into a very high visibility level: 'Let's talk about the brutal facts,'" says Rubenovitch. "Then it became increasingly comfortable."

Getting clear the company's core values -- being honorable, accountable, hopeful, kind and driven -- made the change less painful. The team could more easily evaluate key strategic moves by looking at whether they supported the core values.

Pivoting into New Markets
The work the company did paid off in recent months, when the company found itself "on the cliff's edge," as DeSota put it. EthoSolar had gone after a project that could add $60 million to the firm's revenue, completing reams of paperwork to go after the job. Then a question arose about whether government subsidies for the project would actually continue or be postponed for two years.

"All of a sudden we are looking at a revenue situation where we may experience a $60 million gap," DeSota says.

Communicating in the more direct way they learned from Rubenovitch, the company's leadership team devised a new strategy to insulate itself from future ups and downs like this. "For us, it's been a wakeup call," says DeSota. "We had a conversation at our last planning session about whether we were a company or a government agency. It drove planning directly around `How do we scale and move out of solar business that is dependent on government incentives?'"

The company's ability to react quickly energized the entire team. "We are actually moving in a couple of directions right now that take us out of the need for government incentives to create a market for us, where we depend on normal market forces," DeSota says. "That's going to be wonderful for us long term. It also means breaking through some ceilings we have to get through as a company."

The company has recently made some key hires needed to make the transition to new markets. "We believe they are going to get fantastic results," says DeSota.

DeSota believes that if the company's leaders had not worked with Rubenovitch, they would not have had the skills to pivot so quickly in a new direction. "This is where the coaching has been essential," says DeSota. And in a sign that portends well for the future, Rubenovitch found the leaders and middle managers he worked with to be quick to implement the Scaling Up system. "They rank right up there in terms of being open, receptive and eager to learn, grow and change," he says.

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Buzzword-Free: A Startup's Best Friend and Worst Enemy

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About a month ago, I joined a startup called Transpose. Upon joining, I quickly learned about our dreaded Peter Thiel problem. Our founding team had seen a clip of Thiel discussing the problem with buzzwords in the tech space. To summarize, Thiel pointed out that buzzwords (words like 'cloud' or 'SaaS') are an indicator that the company is "bluffing" and that it's "undifferentiated." Thiel then went on to say that many companies that are truly innovative end up relying on buzzwords to explain what their company does, even though those buzzwords are insufficient. "They may get mischaracterized as being in a certain category but that doesn't mean they are part of any trend," says Thiel.

Fairly regularly, our team comes together to go over our more high level focuses and problems. These conversations tend to be pretty organic: one of us makes a remark to another team member about our user base, and within minutes, our entire team is circled up in our small Seattle office, hashing out our Peter Thiel problem once again. "We need to avoid the term 'database,' for now," someone will say. "We are a platform for users to create structured data, it's that simple," another person will say. Truthfully, none of these terms or descriptions really suffice. We've battled through numerous different approaches: a place for all of your structured notes; a platform for customized templates for all of your data problems; a democratizer of relational databases for anyone... the list goes on. At the end of the day, it's just us and our Peter Thiel problem.

I think it's worth noting that yes, it's generally an issue when a founder can't quickly and easily describe what his company does. However, there are instances where the product or company itself really is tackling something undefined. As Thiel points out, referring to Google as another search engine in 1998 was not an accurate statement. Referring to Facebook as another social network wasn't really accurate, either.

So how do companies go about pitching their offerings to users or investors if they can't really explain what they are doing in the first place? How do founders know if they're on to something that is innovative enough to fall outside of pre-existing categories?

Founders in this situation have their work cut out for them. Conveying what their company does will require extra emphasis on the problem they are striving to solve and painting a powerful image of what user experiences could be like once the solution is implemented. When it comes to determining whether or not your company is operating in an "undefined" category, some indicators to look for include an absence of obvious competition, a lack of clear customer segments to focus on, and, of course, a verbal void when it comes to describing the company's offerings in one or two sentences.

At Transpose, we're well acquainted with these issues, and while we are proud of the product we've built, the more daunting work that lies ahead is how we will talk about the work we've already done.

Our apologies go out to Peter Thiel. We never meant to name our biggest problem after you, but then again, maybe it isn't a problem after all.

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From Strip to Chip: Everything You Need to Know About the New Generation of Payment Cards

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There's something new in plastic and it's coming to a mailbox near you.

In the coming months, be on the lookout for replacements to arrive for many of the debit and credit cards you carry. You might have already received some of these new cards, which look mostly the same -- except for that little gold or silver colored microchip that's embedded inside the card.

That chip will make it tougher for thieves to use stolen information to create counterfeit cards.

By year-end 2015, an estimated 63 percent of cards in American wallets will feature this new technology aimed at better identification of users and derailing payment card theft. The chip adds a unique one-time use code that changes every time you use your card to make an in-store payment. That automatic security code change makes your data nearly impossible to use to create a counterfeit card.

The transition to chip cards is expected to be nearly complete by year-end 2017.

Counterfeit or "cloned" cards account for about two-thirds of in-store fraud -- currently a $3 billion problem, according to Boston-based research firm Aite Group. The chip technology represents an improvement over the magnetic strip on the back of cards currently used to process in-store purchases. Card cloning happens when thieves use online data breaches and hand-held or installed skimming devices to collect card data at the point of sale.

The card-based chip technology is the same foundation that many emerging mobile payments programs are using to secure transactions. For example, Apple's new Apple Pay system uses the same chip technology as these new cards.

Keep in mind that you'll be using these cards a little differently at the checkout counter, but transactions will stay simple. Here's how they work:

  • You'll need to insert a chip card into a card payment terminal and keep it there until your purchase is complete. No more swiping.

  • You'll be asked to sign, enter a PIN or simply pay-and-go just like you do today with your magnetic strip card.


Don't panic -- the magnetic strip on the back of cards will continue to work with older terminals for the near future. The only big change you'll notice as a new chip card user is a prompt from the terminal, your sales clerk or server to insert your card into the new slot on the terminal that reads the chip instead of the strip on the back.

Finally, these new terminals will generally remind you to take your new chip cards with you when you go.

For merchants -- the collective name for the stores, restaurants and other businesses where you use credit and debit cards every day -- the transition to chip cards is moving fast. According to a recent survey by Visa, approximately 90 percent of business owners are aware of chip technology and about 70 percent have already upgraded their equipment or have scheduled plans to do so. Current estimates show that 47 percent of U.S. terminals will be able to read chip cards by the end of the year.

There's one more incentive for the businesses you use to get on board with chip card technology. Starting October 1, liability for some counterfeit fraud may shift from the card-issuing financial institutions to retailers unless they are able to accept and process chip card transactions.

For the smallest businesses, some low-cost options for upgrading card acceptance terminals can cost $100 or less. Square, for example, recently announced a new $49 card reader that accepts chip cards as well as mobile payments and they're giving away 250,000 of them to small business customers at no cost. Many of these systems are replacing traditional electronic cash registers at many locations.

If you travel overseas regularly, you've probably already seen chip card technology in action. It's based on a global standard called EMV and is already at work in countries moving to cashless options for private and public goods and services.

Chip cards represent the most significant change to U.S. payment card security in decades and may advance the cashless movement here. It's taken most countries two to three years to make the switch and industry experts say the United States is on track with that timeline.

One final note. Zero liability* fraud protection will continue with the new chip cards, but it's always a good idea to check all credit and debit transactions regularly for accuracy.

Bottom line: Chip cards represent a big step forward in security for credit and debit card customers. The biggest adjustment you'll likely see? You'll be inserting the card in a terminal instead of swiping it.

* Visa's Zero Liability Policy covers U.S. -- issued cards and does not apply to certain commercial card transactions or any transactions not processed by Visa. You must notify your financial institution immediately of any unauthorized use. For specific restrictions, limitations and other details, please consult your issuer.

Nathaniel Sillin directs Visa's financial education programs. To follow Practical Money Skills on Twitter.

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