Actually, this would be better served if I made a summary of the Wikipedia info first, I’ll do it on a separate page and copy it in when it’s done,

10.30 am GMT - Tuesday January 31st 2011

I will start today with a draught for the small business section:

Entrepreneurism is ingrained into the American psyche; the United States is home to 29.6 million small businesses. By the time they reach retirement age half all USA Citizens will have been self employed for over a year, a quarter for over six years. 70% of jobs created over the last decade were from small businesses. Of the 154.4 million employed individuals in the US, small businesses are the largest employer representing 53% of US workers, however just under half of small businesses fail within 5 years!

Why do nearly half of USA entrepreneurs fail? What impact does this have on the economy and what can be done about it?

Before we consider this, we need to appreciate that a 50% failure rate over 5 years in global terms is very good. It effectively indicated that over half succeed, however for those that did not, it not only indicates the loss of a business, but often one’s life dream, all their savings, their kids education, in many times causes the breakup of their family and for a number the end of life itself, as currently recession related suicides are globally estimated at 3500 a day.

To make matters worse, the business failing is rarely the fault of the entrepreneur rather, their advisors, and or lack of advisors.

However before we consider this, let’s consider the impact to the economy if we took that failure rate down from 50% to 25%.

155 million employed individuals, of whom 77.5 Million started their own businesses, (50%) 38.75 million of them failed. Cutting that down to 25% would equate to 19.375 more small businesses. A small business is defined as having less than 20 employees and more than one, as such if the failure rate came down from 50% to 25%, there would not be enough workers in the entire country (including illegal’s) to fill the posts, as such reducing small business failure rate by 25% will see a complete end to unemployment. Add this to the additional twenty plus million jobs created by the construction projects and universities and the USA’s biggest problem becomes labour shortage.
How to achieve a 25% reduction in small business failures

Firstly we need to appreciate that the vast majority of the www.S-World.biz groundwork, including the core software, networking, business advisory plans and service initiatives originated from small business applications, at the core of which is the financial model. In fact it was the lack of available financial software that led the author to give up businesses until such a time that he had created financial software that worked, that led to the work you are reading now, let’s hear why.

Mr Ball, or as he prefers “Nick Ray” was born in Belgravia, London in 1971, and has mixed with small businesses for most of his life, he grew up in a cottage industry, his farther a photographer and Graphic Designer working from his home in Epsom Surrey, England. Initially a freelance photographer, then a music programmer and networks operator Nick Ray co founded his fist record company in 1991. At the end of the 90’s he like many programmers, turned their skills to the Internet and when the opportunity came to found an internet company in Cape Town, South Africa he took it. The way of things at the turn of the century was to create a number of websites, and run with the most successful, and so www.capevillas.com was born.

Business started off well, and a simple spread sheet was made to calculate the inn’s and out’s, as the business grew to about six or seven staff and it was time to consider tax and an accountant. The finest villa on the books was owned by an accountant, and a meeting saw a dedicated admin person working inside their offices.

It was recommended that 80% of accountants used a specific software programme and so “Pastel Accounting” was introduced, confident that the professionals were looking after the money; Nick Ray concentrated on marketing and the acquisition of new stock. 6 months later, guests had come and gone without being charged the final 50% balance, apparently the software had not been set up correctly and the original spreadsheet had not been used.
It was time to bite the bullet and hire a full time accountant, interviews were had, and an employee on 10 times the salary of some, was introduced. Three months later it came to light that he was a clever builder with lots of false certificates. By this time the company had taken a financial hammering.

It was decided a recruitment company was safest, the main instruction was for an expert in “Pastel Accounting” Along came the new book keeper, a year later despite record earnings money was still illusive, a cursory audit was made, only to find $150,000 missing, and Pastel still not working. In came an expensive financial manager with 20 years experience at his last firm that had 10 times Cape Villas turnover, with supposed expert knowledge of Pastel
A year later, with Pastel not running Nick Ray was informed, that he had enough money to buy a New Mercedes CLK AMG and make a large charity donation, he decided instead to start a family. Two months later Nick Ray was informed of a mistake, the actual figure was not +$250,000 rather closer to -$250,000.

Near desperate, there was only one course of action, and a blank check was handed to BDO Spenser Steward, to finally install the software, and ascertain “the debt/profit balance” (The figure after all debts were received and all credited received) with specific instructions, not to go over back data, rather stop future mistakes from happening. At this time, the head of BDO “Ian Scott” took time to say he was very interested in the business and would like to give personal advice.

What he should have said was simple: Pastel cannot give you a debt/profit balance, it cannot double check for fraud or mistakes and considering you are $250,000 in debt, our bills will add another $150,000 to this. What you need to do is out source your property management section, as that creates 98% of the admin, this will also save you $150,000 in staff and running costs.

Accountants however are not paid to give good advice; they are paid to create as many billable hours for their company as possible.

10 months later, the software was finally installed, and Nick Ray was informed it could not give a debt/profit balance. He further did a check on the system, to see if a recently moved guest (due to flood) money had been paid to the right owner, and as suspected, both the old owner and the new owner had been paid.

In 2010 it was calculated that over 50% of all costs were accrued to the poor advice given by, one of the biggest accounting companies in the world. At that time, Cape Villas had 38 Staff. All but 2 staff were let go, and the SA government were informed if they wish their $300,000 tax they were to sue BDO Spenser Stewart. Since that day, the two remaining staff, used the original spread sheet made in 2002 and so far have made $200,000 profit and will be back in the black in about two months.

The trouble with Pastel Accounting software and the many others that are available is that they are made specifically for medium to large companies in retail, as soon as you need to tailor it to a specific industry or small business the accountants have no idea how to programme it. As such Cape Villas spent 8 years and $300,000 attempting to use and programme software that only costs $1,000 that further lead to losses of $500,000.

The software can of course give a monthly cost breakdown, however this offers CEO’s little protection against clever fraudsters or incompetent data in putters, as a double check is needed. Hence the need for an overall debt/profit balance report, the company net worth when all credits are called in and all debts paid.

Consider this: from Wikipedia US Public Debt.

“The national debt increase during a given year is not the same as the "total budget" deficit commonly reported, due to a variety of accounting complexities involved. These differences can make it more challenging to determine how much the government actually spends relative to tax revenues. The increase in the national debt during a given year is a helpful measure to determine this amount.”

What other way would you assess USA profitability than the bottom line, with a bottom line figure you know where you are, you make decisions based on the correct information, if austerity is needed, it is needed, if there is margin to hire another staff member you can do so.

Even more importantly, you can cross reference, if the books presented by the monthly debits and credits on the bank statement show a $20,000 gain, and your overall debt/profit balance increased by $20,000 you know all is well, if the figures are out, you know something is wrong.

The usual form of mistakes are human error or fraud, by allowing admin staff and accountants access to your bank accounts, you are opening the doors for Chaos. There is no reason why staff should need to have access; it’s very simple to get the bank to update financial software automatically, its equally as easy to make software that makes the sales person or procurement officers work foolproof, by simply making sure the customer signs of on the order.

The big task is not making the software create a debt/profit report, auto update and customer sign of, it is tailoring the software to each industry and personal instructions installing, support and advise. That’s what the Sienna Software is all about

1. Economic software that can predict the future
2. Financial software that removes human error from the accounting process
3. Business software that calculates and pays tax in real time
4. Networking software hard wired in to every database on the planet
5. Virtual software that brings the planet together
6. A monopoly on future computerized TV operating systems
7. Advanced CRM, business advisory, communications & psyche test software systems
8. Conscious software with a human brain equivalency of 107

The latter: “8. Conscious software with a human brain equivalency of 107"” simply indicates our desire to have 107 (100 Million) humans using the software to assist the network.

Within a year the software will be available for 100 different business types, as such one already starts with a product that has been tailored to specific industries. The software will be available not just for companies involved directly in EEE real estate ventures, it will be available for all for free, it is after all calculating tax and providing the PQS (Predictive Quantum Software) with excellent analytic data.

With a dedicated EEE City, Town, Village or district no more than 30KM’s away, with at least one hundred software support staff, there will be one to one on site support for all.

Then of course comes the Small Business Advise.

Time for a brake, a nice two hour walk in sub zero weather ?

4.17 pm GMT - Tuesday January 31st 2011

Great walk, however I need to shorten the small business section:

Entrepreneurism is ingrained into the American psyche; the United States is home to 29.6 million small businesses. By the time they reach retirement age half all USA Citizens will have been self employed for over a year, a quarter for over six years. 70% of jobs created over the last decade were from small businesses. Of the 154.4 million employed individuals in the US, small businesses are the largest employer representing 53% of US workers, however just under half of small businesses fail within 5 years!

Why do nearly half of USA entrepreneurs fail? What impact does this have on the economy and what can be done about it?

Before we consider this, we need to appreciate that a 50% failure rate over 5 years in global terms is very good. It effectively indicated that over half succeed, however for those that did not, it not only indicates the loss of a business, but often one’s life dream, all their savings, their kid’s education, in many cases the breakup of their family. There are many social ill effects of businesses failing.

To make matters worse, the business failing is rarely the fault of the entrepreneur rather, their advisors, and or lack of advisors.

However before we consider this, let’s consider the impact to the economy if we took 5 year failure rate down from 50% to 25%.

155 million employed individuals, of whom 77.5 Million started their own businesses, (50%) 38.75 million of them failed. Cutting that down to 25% would equate to 19.375 more small businesses. A small business is defined as having less than 20 employees and more than one, as such if the failure rate came down from 50% to 25%, there would not be enough workers in the entire country (including illegal’s) to fill the posts.

How to achieve a 25% reduction in small business failures, and whist S-World is unreservedly a bipartisan presentation, its worth highlighting that a part of President Obama’s current political manifesto, is to tackle economy from the bottom up.

Firstly we need to appreciate that the vast majority of the www.S-World.biz groundwork, including the core software, networking, business advisory plans and service initiatives originated from small business applications, at the core of which is the financial model. Of which it took the author 8 years to create the specifications, largely created by what other software could not provide.

After spending 8 years $300,000, employing 5 financial managers ending up with a blank check to one of the world leading accounting companies, it turned out the software recommended by 80% of accountants that only cost $100 could not deliver.

Running a small business with a couple of staff is generally an easy task to administer, a spreadsheet or journal handed to an accountant or book keeper on a monthly basis adequate. Entrepreneurism however, turning a small business into larger businesses be it ten, a hundred or a thousand is where the problems comes in, as invariably the CEO will have to seed part or all financial control to someone else and hire an accounts company to oversee the accounts.

This opens up the business to many threats, dishonesty and/or negligence from the bookkeeper or admin staff member/members and billable hours and complications from the accounts company. All have heard the adage, “lawyers are not paid to settle” well the same applies to accountants; they are not paid to make one’s life easier or make your business more efficient, often quite the opposite, accountants companies take prisoners.

Accountant’s firm’s primary directive is to charge billable hours, so when an accountant says “You should use this software” what they mean is “If you use this software, you will need to pay us a lot of money to interpret the data for you”. If you ask “Can it calculate my businesses debt/profit balance”. If they say “yes” what they mean is “I have no idea what you are talking about, if you want something programmed you should go to a software development company not an accountant”

Calculating ones debt/profit ratio is essential for both businesses decisions and fraud/negligence protection.

Consider this: from Wikipedia US Public Debt.

“The national debt increase during a given year is not the same as the "total budget" deficit commonly reported, due to a variety of accounting complexities involved. These differences can make it more challenging to determine how much the government actually spends relative to tax revenues. The increase in the national debt during a given year is a helpful measure to determine this amount.”

Imagine if President Obama had to make decisions on the “Total Budget” having no idea that the USA was actually losing more money that the accountants were presenting. It’s exactly the same for any business looking at monthly profit and loss figures, such figures do not give the complete picture, business owners need to know the bottom line.
Further if one can calculate the bottom line, one can cross reference it with monthly reports, if the monthly report shows a gain of $50,000 but the actual net worth dropped by $30,000 you know, someone has either made a big mistake or worse there is a hand in the cookie jar.

Creating software that accomplishes both monthly bank reconciliations whist cross referencing to total company worth/debt is at the heart of the Sienna.Gov financial software. Giving the right information to the CEO on a daily basis, on his phone, laptop or ipad essential, if the company is making profit, he can do what he does best, if not he will have to look at the finances.

A double check method (overall profit/loss VS monthly balance sheets) as presented above is an excellent way to avoid fraud and negligence, however linking the software directly to the bank near alleviates fraud and negligence in its entirety and will save businesses owners money on bookkeepers and financial staff. Further making it audit to government standard alleviates the need for accountants and auditors. Including the financial efficiencies gained and the financial staff money saved, businesses could easily find themselves 50% better off. And that’s 50% more to be spent on business, industry and strength.

Unlike current financial software, that seems to be deliberately complicated to make accounts companies necessary, the specifications of the Sienna.Gov software are to make the software for 12 year olds and above, it’s not rocket science ins and outs and a nicely presented overview, with about 10,000 different variations to cater for every conceivable business type and size. Add to that the support crew of tens of millions working from the universities happy to come on site to advise any business owners plus the software being free and Sienna.Gov offers the complete financial software package.

The software will also contain every conceivable bell and whistle available, marketing & branding tools, psychology tests for interviewees and continual monitoring of staff, and many video clips of business strategies. It will of course link directly into the “Global Trade Network” as such ordering or selling goods becomes cheaper and easier.
All these other benefits aside the real advantage, of the software is its capacity to think independently and advise. This is not accomplished by a miracle chip akin to Skynet, rather the business advisory groups across the USA and in time the world, constantly analysing data, answering the call of any that ask.

Combine this with the PQS (Predictive Quantum Software) and opportunities and threats will be presented to all business types, If one owns a chain of Chinese Restaurants, at the touch of a button, one can see exactly what demand there is in any part of the country, staff can be interviewed before even setting foot in the Area and an assessment team will help advise of feasibility and maximum profitability between various sites. If you start with a $4Trillion budget and millions upon millions of staff, one can accomplish most anything, so long as you know what it is you wish to accomplish.

We could literally write a hundred thousand pages on how S-World and EEE will assist small businesses, as that is exactly what S-World and EEE was designed to do, the larger economic plans is just an off shoot. However for now, there is more to read, so please trust us when we say a small business that uses the software and advisory panel will be highly unlikely to fail and highly likely to grow into a substantial work provider and tax revenue earner.

6.28 pm GMT - Tuesday January 31st 2011

Not bad, I can live with it for now, time to go back to the economic edit of the Wikipedia information