This year I spend my New Year’s Eve 2012 in Sydney, witnessing the spectacular Sydney Harbour fireworks. It was a truly amazing experience, despite the 12 hours wait for a good spot of the show.
After arriving home yesterday, I had a funny incident with my landlord commenting on the fact that I was so amazed by my experience in Sydney. What she confronted me with was a 6.3 million large figure representing the coast of the fireworks in Sydney, and whether or not I found 12 min of fireworks worth that large amount of money. I gladly answered that it was all worth it, to her surprise. We did not discuss it further. However it made me start wondering.
I knew what I had spent in Sydney for the four days I was there, and just with simple math I quickly realized that the 6.3 million was not such a bad investment. Just with some rough estimates I could easily disprove my landlord’s position.
It had wakened my attention and I had to research the actual figures of the event. The official figures indicate that the 6.3 million fireworks had put 156 million dollar into the local economy and on average a total cost of 4 dollar per spectator. This means that 1.575,000 people saw the show. In Australia the corporate income tax is flat 30% which means that the government has earned an estimate of 46.8 million dollar, deducting the 6.3, equal to 40.5 million dollar in tax revenue. (These estimates due not consider speculations or other forms of avoiding taxes.) However the numbers speak for them self.
Was the 6.3 million dollar fireworks show worth the money? Yes it was all worth it!
I participated in Global Management Challenge (GMC) the world’s largest Strategy and Management Competition, where more than 450,000 university students compete worldwide. Global Management Challenge is the largest international business simulation event and has a history going back to 1980 when if for the first time emerged in Portugal bySDG – Simuladores e Modelos de Gestão. Today 34 nations are represented in the game and the nationalities stretch from Denmark to Singapore; from Venezuela to China.
The game is a simulation game challenging me and all the other 450,000 participants with over 60 different decisions weekly, created to simulate a real decision board in a real company. Everyone participate in team of 3 to 5 people, and I was joined with 4 classmates about making the decisions.
The game gave me a great insight in what it takes to manage a production company, with all from buy of raw material, production facilities, employees, budgeting, agents, distributors, investors and 60 other parameters.
The game is played on a weekly basis, with one decision sheet per week. What defines the success on the scoreboard for the company is the value of the company’s stock on the stock exchange. The greatest companies reach the Danish final, where the best team will represented Denmark in the international final, in year 2011 taking place in Macao, China, only an hour with boat form Hong Kong.
Global Management Challenge is in Denmark sponsored by Maersk, Accenture, Siemens, Cowi, BiBoB, KPMG, BK Medical, IDA management forum and DJØF.
This article is inspired of the book “Rich Dad – Poor Dad, by Robert Kiyosaki.”
Money is often mentioned as the root of all evil. Such a statement is often caused by money problems. Rich people would say that a lack of money is the root of all evil. Poor people often forbid the subject of money to be discussed at the dinner table, because of embarrassment connected to the current situation. At this point is committed a fundamental mistake. When you forbid discussing the subject of money, you are putting your head to sleep. You do not force you brain to work and figure out a solution for the matter of a bad financial situation.
When you walk down the street and see your colleague driving his new Porsche, it would be normal to desire what he got. But often is the desire killed by the mindset: “I can’t afford it.” Instead of thinking I can’t afford it, the rich man would think: “How can I afford it?” It is the same as the difference between the man who goes to the gym every day, and the man who sits at home watching TV. The man who goes to the gym get fit, the man in front of the TV get fat. It is very important to exercise your brain, and it might mean the difference between rich and poor.
To support my words I would like to retell a little story from the childhood of Robert Kiyosaki.
At the age of 9 Robert Kioyosaki and his friend Mike is asking Mike’s dad how to become rich. Mike’s dad is agreeing to teach them, but not in the classical school way. The two boys are offered a job for 10 cent an hour, and the terms are: take it or leave it. After have been working 3 hours every Saturday for 3 weeks, it becomes enough for Robert. He thinks he is underpaid and he is confronting Mike’s dad. Mike’s dad is glad to see his reaction, but he is having a hard time convincing Robert that he as the employer is not the problem, but that Robert is. Robert walks away from the meeting, now working for free. Working for free is not especially exciting and Robert and Mike are getting their eyes open for opportunities. After been working for some weeks Robert and Mike notice that every week the manager of the store is ripping of the front page of all the comic books. The distributer is getting the front page, and the comic books are thrown out. Robert and Mike sees an opportunity and make a deal with the manager that they get the old comic books, but they have to promise that they won’t sell them. The two boys opens a library and tax 10 cent each kid for reading all the comic books they can in the opening hour. They are hiring Mike’s sister to run the business. And they are making much more money that they would ever earn working for Mikes dad.
Do not work for money, let the money work for you. That is the main message of this article. Another important notification is that learning is much more valuable than profit. Tina Seeling, lector of Stanford University is saying: “There is a million dollar opportunity in every room you enter.” You just need to open your eyes and see it.