Opportunities are all around us, yet most of us don’t see them or aren’t looking for them. We can fix this to some degree by learning and training ourselves to look for and spot great opportunities. What still stands in the way of many, however, is being unprepared to take advantage of these opportunities when they arise.

If a friend or acquaintance came to you today with a great idea or investment opportunity, how able would you be to take the opportunity? Would you be able to afford the initial investment without jeopardizing your or your family’s finances?

Soldiers in the armed forces are constantly training and maintain a state of readiness that when and if called upon they’ll be able to function and perform at the highest possible level. We should also maintain this constant readiness with our finances and investments.

Many will say that there aren’t any more good investments in real estate these days. Others are brought multiple deals per day from agents or brokers because these brokers know who can and who won’t be able to take the deals. If a deal requires a certain down payment, only those that have prepared and accumulated such will be able to take advantage of it.

We also hear all the time that when the stock market “crashes” or “makes a correction” it’s the best time to get in and buy. How many of us were able and had cash available to do so this past February when there was a sharp temporary decline? Moreover, how many people out there had already done research into certain stocks and determined at what price it would be a good deal?

The point I’m trying to make is that there are plenty of opportunities out there, but we need to prepare mentally and financially in advance in order to take advantage of them. Now is the time to prepare yourself. Don’t wait until the opportunity comes and you’re forced to pass on it because you don’t have the means.

Everyday we have to make decisions. When to get up in the morning; what to eat for lunch; whether to buy that new TV or not. Not every decision is life changing, but it’s the sum of all these decisions that will determine our future. I’m not going to go into a long random spiel about decision making, but I want to mention one principle, the concept of sunk costs.

Sunk costs are those which have already been incurred and which can’t be recovered. These costs are in contrast to variable costs which will change from one proposed course of action to another.

This concept is important to understand because it helps to keep us rational when we’re dealing with financial decisions. Money that has already been spent should have no bearing on our future choices. It’s a matter of letting the past be the past and moving forward.

Suppose you’ve been taking music lessons for a couple of years, and you’ve more recently decided that music isn’t really your passion. You should choose whether or not to continue with the lessons based on your interests and desires. Many would reason that since you’ve “invested” so much time and money already you should continue taking lessons.

This concept should also be applied to investing. If you’ve bought an investment and it has unfortunately lost money, you shouldn’t stick with it just because you’ve already put the money in. The investment should be re-analyzed and either kept or sold based on whether it is still a good investment or not, not just because you’ve already spent so much on it.

Not every decision we make will, or even should be, rational; however, when it comes to our finances, the concept of sunk costs is an important one to understand and keep in mind.

It’s a topic that always draws a lot of attention, and we’ve all heard that “Sex Sells”. Whether you like it or not, it’s a tactic that’s being used by more and more advertisers and businesses.

Paris Hilton has become a brand in and of herself based almost solely on this principle. Britney Spears, Jessica Simpson, and a host of other pop stars rely heavily on their sex appeal in order to sell records and tickets.

If you’ve ever browsed a record store, you probably noticed that many CDs have chosen sexy artwork even when it has absolutely nothing to do with the album itself. Beer commercials are also notorious for employing these techniques because it helps them sell more beer. Apparently if you drink a certain type of beer, you’re guaranteed to have hot friends.

Movie trailers are also created with this concept firmly in mind. If the movie appears sexy, more people will want to see it. Sometimes the sex in advertisements is so blatantly out of place, but it’s still used. It’s believed to be that effective.

Interestingly enough, sexy has infiltrated almost all aspects of our lives. People are even describing certain investments as sexy. It seems that people will try almost anything in order to boost sales and turn a profit.

Who knows? Maybe this site will now get a surge of traffic out of this post. I’ll refrain from putting up any pictures though.

One of the most important aspects of business is the people. Deciding who we’re going to go into business with is extremely crucial. You’ll probably want to have complementary skill sets, and you’re hopefully going to share a very similar vision.

Aside from the usual recommendations, I want to share a piece of advice that I heard from a very successful businessman who taught my entrepreneurship class in college.

“Don’t do business with friends, but make friends with those with whom you do business.”

This points out a very important fact. Just because you’re friends with someone, doesn’t mean that they would make a good business partner. It doesn’t mean that they aren’t a good friend.

If you’re relationship with someone started out as friends, trying to transition to a business relationship is very challenging. You don’t want to offend them or step on anyone’s toes. Many friendships have been ruined after they went into business together. I’m not saying that it can never work out, but the odds are against it.

The other part of the equation is also very important. You should try to develop a friendship, at least on some level, with the people you do business with. It’s no secret that people are more willing to work with people who they like and can trust.

I hope this piece of advice proves helpful to you. What are your thoughts on this? Do you have any experiences that agree or disagree with this? Let us know.