Financial Literacy with the Co-Author of Rich Dad, Poor Dad

Gross Expenditure

Here is my understanding of these words before the Accounting class with Prof. Petersen and Sharon Lechter:
Assets = children, family – usually just children
Liabilities = poor relations (Charles Lamb, a tribute to you)
Revenue = something they talk about a lot on TV during budget time
Profit = when the bank gives me money at the end of the month on a saving certificate
Gross Expenditure = when you spend so much it’s disgusting

Errr … yep … that’s how bad I was. NO exaggerations here. As a VA or a businessowner you have to know your finances. No matter how scary they are – no matter how intimidating. But I have always been scared of numbers and fancy words that don’t do anything for my imagination. Then, Project Artemis and Goldman Sachs 10,000 Women program happened. Besides of course the wonderful classes we had with Prof. Peterson, one fine day, Sharon Lechter came to merely “talk” to us about something called Financial Literacy. And that’s what she did. She talked. To me, who was in morbid fear of anything to do with numbers (my 8-yrs old son has a tutor come in to teach him Math – I can’t – I am terrified of it), her words tried breaking the force-field I had made around my head and at times it even succeeded in penetrating through that barrier but I wasn’t ready to listen. Case in point, the pic below:

But she had me sit up and take notice. Tell me, has any of you run a straw, an ordinary plsatic drinking straw, right through a gigantic potato? When Sharon’s assistant told us that’s what she was gonna do I thought it was only an exercise in teaching us how some things are impossible and should be left alone. And then she whammed the straw clean thorugh the potato! It was the COOLEST thing I’ve seen since I conceived WDL! We all got a chance to try it and I was the first one toget it right. You should have seen me jump up and down. A 32 years old mom of two and a businessowner jumping like a yoyo holding a potato in her hand with a straw is not a pretty sight. This was Miracle No. 1.

That’s me with the potato on my head.

Then came Miracle No. 2. She dangled a small metal ball from a piece of plastic wire and she told it to go round and round, and the ball actually started moving in a circle. I was looking at her hand – it was perfectly still! Then, she asked it to go back and forth, and the ball obeyed. It was CRAZY. All us non-believers of course got to try it for ourselves and it worked!

And then came Miracle No. 3 – the biggest miracle of them all. Sharon introduced us to a  board game she had been working on along with her team at Pay Your Family First. It was called Thrive Time and was supposedly meant to help people, especially teens, understand their finances. I was sceptical but then I love board games; Monopoly, Risk, Scrabble – you name it. So, I joined in. Within minutes I was totally immersed in the game. Of course the vocabulary wasn’t coming easy to me and I had a hard time deciphering where I put my losses and gains but it slowly started to make sense. BIGGEST MIRACLE OF ALL!!

I didn’t realize it at that point. I am guilty of even whining about it a little. But, when I got home and I was going through the invoice template I use to send to clients, I realized I was thinking of the numbers in terms of  revenue and profit. That encouraged me. I started making a list of things I had – my assets. Looked OK. I then made a list of my savings or the profit I received at the end of an assignment (I always used to wonder how I spent the entire $1000, not reliazing I paid a team-member $150 and paid my Internet bill and spent on adding more RAM to the computer). Here was my revenue and expenditure.

I am not saying I am a whizz at it now but at least I know the basics. For me, as a virtual business that’s very small scale at the moment, this is enough. I know at some point I am gonna need an accountant – but at least she won’t think I am a complete illiterate when it comes to finances and accounting, and won’t be able to intimidate me with an alien lingo.So Yipppeeee …

OK byeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee


Challenges Facing Pakistani Businesswomen

OK –  I know all 5 of you missed me – I see the love … about 10 hits while I was gone. But hey, I am back, if only for a lil while. 😉

Been filling out forms left, right and center for the Project Artemis course I am leaving for soon. Did I tell you guys about it? It’s AWESOME! I have been selected for a 2 week (is it 2 week or 2 weeks??) course on business leadership at Thunderbird School of Global Management in Glendale, AZ. Being sponsored by the US State Department and Goldman Sachs under their 10,000 Women program. The program is for 20-35 years old women with small businesses and no formal business training looking for a little push in the right direction and some mentoring.

Anyhoo … the one question that keeps cropping up as I fill forms upon forms is the challenges facing Pakistani businesswomen. Got me thinking … yeah I am crazy enough not to have ever given that much thought before despite being obviously relevant to what I am doing … but that’s how I am … stop judging me … you don’t know me … I AM STRESSED! I was saying … ?

Yeah, so challenges I face as an entrepreneur.

Here are a few I could think of …

1 – Obtaining Financial Support – HUGE challenge. I have support, people love and are fascinated by the idea of what I am doing. But when it comes to actually coughing up that $10k they become wary – same argument everywhere  … it’s a service and not a product so it’s difficult to put a value on it.

Plus, I have looked at the process of obtaining bank loans in Pakistan and it’s a very cumbersome and discouraging process. Firstly, banks have little experience in supporting innovative startups. Secondly, red-tapism and high interest rates make it a very hard endeavor.

2 – HR Woes – 59% of the total female population in Pakistan between the age of 15 and 24 are educated. 10% of our population of an estimated 18 million uses the Internet. Now you would think women would be falling over each other trying to get a place in WDL. Somewhat true – I put up an ad for a fulltime VA on a local job portal and received over 240 application. Unfortunately, more than half the applicants were men. Goes on to show no one reads the job requirements! The female half were no better. I wrote to all of them asking them to complete a simple demo task which required them to clean-up the data in an excel sheet. Left it to them how they wanted to do it. I SUCK at excel so when I say it was a basic task, I mean it. Right near the end of the email, I put it in nice big, bold, RED HIGHLIGHTED letters that I wanted an update at or before midnight the next day and they had a total of 48 hours to finish the task. Guess how many reported on time? ONE! Yep … only one out of about 120. I thought, OK, so she is the one I have been looking for. I invite her for an interview and after a 45 minutes interview where I explained everything to her and she grilled me with Q&As we finally shook hands on it(virtually of course) and I gave her a warm welcome to WDL. All well, eh? Nope – within 10 minutes she pings me on Skype only to say she had just consulted with her husband and she couldn’t join right now since she had two other day jobs. SCREAMS!!! After this experience and speaking to several other women working in conventional offices doing content writing, SEO and other digital tasks for less than $200 a month working 9 hours daily for 6 days a week I reached one conclusion: we have yet to understand the true potential of online work and that working-from-home can actually be a serious, lucrative full-time job. We need more awareness.

Having said that, I do have some incredibly intelligent, competent and skilled women (OK, girls, don’t take offense – “women” sounds slightly more professional 😛 ) – they are working form home and doing a brilliant job and I am so blessed to have found them. Ladies, I don’t say it enough so soak it up (soak it in??) .. whatever. Anyway, none of you reads my blog so you won’t know all the nice things I say about you .. duh!

3 – Gender – yep, you heard me right. It all trickles down to the same thing. A 31-year old woman with two kids with a technical startup selling a service rather than a product (cute little teddy bears wearing Sindhi caps or embroidered pashmina shawls would get me more sympathy and probably funds) is the perfect recipe for business harakiri. What does a woman from a small town with a degree in humanities know about running a business? Well, to them I say, I have made it so far without any help form you or anybody else for that matter – with a little push I will soon have you eating a very humble pie with “When I See Your Face, Hope It Gives Your Hell” playing in the background. Yeah, I am juvenile – that’s part of my charm and my stealth attack. 😛

4 – Payment Options – How in God’s name are you going to run an online business catering to clients around the world when you don’t have PayPal? Yes, I have talked in great detail about other payment options in a previous post but the simple truth is people just prefer the convenience of PayPal. No one is willing to walk to Western Union 10 blocks away or fill out lengthy forms for wire transfers when they can easily outsource the same work to someone in India or the Philippines and pay them via PayPal. I hate you PayPal and Scott Thompson and whoever else is involved in leaving Pakistan out of its list of partner countries. I have friends in the VA business with PayPal accounts in nearby countries but that does not solve the woes. By the time the money reaches them here in Pakistan they lose about 10% of their total earnings in transaction fees, currency conversion fees, wire transfer fees … you get the picture right? So when you are already getting paid less than minimum wages you just can not afford to lose 10% of it. So what to do??

5 – Lack of Support – This is another one. Lack of support from both family and also from other people already in the business. People either just don’t have the time to help or don’t want to help – I dunno which. We need an advisory board that can help entrepreneurs, female or otherwise, starting a startup or running a small company and wanting to take it to the next level. Some organization do exist that are working towards incubating women-owned businesses and helping with their growth, like SMEDA, but they only operate in big cities like Lahore and Karachi.

6 – Power Failures – This is my favorite … you are working online which obviously requires you to have electricity and we live in a country where unscheduled power failures are a common feature of our day to day life. Spring does not mean beautiful weather and flowers blooming and birds chirping but power-outs every two hours. It’s impossible to work virtually without having a good power back-up and that my friends requires $$$. I don’t blame many of the girls for chickening out of joining me full time because I require them to have not only a reliable and fast Internet connection but also an 8-hourly online presence. Not many can promise me the latter considering we are facing such a gigantic issue wrt power-failures.

These are just some of the challenges put in a very haphazard manner but they are enough to give anyone an idea of what we face. Why is this post relevant to my vow to educate ye all about virtual work? Because you ought to know what you are getting yourself up against.

Another thing I suck at is ending these ramblings … so … yeah … OK …