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April 17, 2013 SUBSCRIBE

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Industry Vet Joe LaRocca to speak at NFSSC Annual Conference
LP veteran and RetaiLPartners founder Joe LaRocca will speak at the 34th Annual NFSSC Conference, delivering a key presentation on Emerging Technologies and Their Effects on Loss Prevention. New technologies can make the LP professionals job more proficient, but also present many present and future challenges. Be prepared and learn solutions for what's next. This program is just one of the many thought-provoking presentations at the NFSSC Conference. Register today


Boston's Impact

Looting appears to be seen in wake of Boston Marathon blasts  For all of the heroism shown in the wake of Monday's Boston Marathon bombings, at least one scene was, at best, an example of unfortunate timing and, at worst, a despicable display of greed. Video footage purportedly shot in the moments after the two blasts shows people taking official marathon jackets from a tent vacated by race staffers. "Looters stealing marathon jackets," a YouTube user who posted the footage wrote, "while others are just feet away critically injured." (Source

NYC security heightened after Boston bombings - with 4 marathons coming to town over the next month  Reports of suspicious packages soar and La Guardia Airport was evacuated after Monday's attacks on the Boston Marathon. One expert said "security is going to change across the country. In the wake of the Boston Marathon bombings, New York will remain on high alert, with an elevated police presence at strategic locations and increased security measures for two weekend marathon events. In addition to the two runs this weekend, the TD Five Boro Bike Tour will take place in just over two weeks on May 5, attracting 32,000 cyclists, and the New York Road Runners' Brooklyn Half Marathon, attracting about 15,000 runners, will take place on May 18. Both events involve closing streets to vehicular traffic. Are your NYC stores on heightened alert as well for the next month? (Source

Apple closes their Boston store yesterday - one block away from bombings
One of two terrorist bombs that exploded near the finish line of the Boston Marathon on Monday was just one block from the Boylston Street (Mass.) Apple retail store, close enough to rattle the tall glass windows and unnerve employees. No one in the store was injured, and the building remained intact. But today the store was closed to comply with a law enforcement security zone, and coincidentally so employees could recover from the terrorist attack that killed three spectators and injured over 176 people. (Source

Class action lawsuit filed against Schnuck Markets for 2.4 million POS credit card hack- the 15 days it took to notify customers comes back to haunt them  The lawsuit, filed April 8, seeks unspecified damages for consumers affected by the breach. It alleges Schnucks should have notified consumers immediately and directly about the breach. The suit also claims Schnucks' failure to adequately protect cardholder data exposed customers' personally identifiable information, ultimately resulting in deceptive and unfair practices, which is a violation of Missouri Merchandising Practices Act. As a result, affected cardholders now run the risk of having their identities stolen, the suit argues. (Source

Deloitte: Despite improving economy, shoppers keep belts tight
According to survey results by Deloitte, 94% of Americans indicate they will remain cautious and keep their spending for food, beverage and household goods at its current level, despite an improving economy. "One of the most notable year-over-year trends in the study is how embedded frugality has become due to the recession," said Pat Conroy, vice chairman, Deloitte LLP and consumer products sector leader. (Source

Penney's can sell Stewart's "JCP Everyday" items and items that don't carry the Martha Stewart name  Will this help Penney's slightly, there's no indication of how much of their $100M investment this represents. So they could still lose a ton of money. As the Judge did side with Macy's on not allowing Penney's to use Martha Stewart's name on anything - including advertising. So the Martha Stewart mini-shops are on hold for now. However, in another win for Penney's they are allowed to move forward with their Martha Celebrations areas, which excludes house paper products and stationary, due to those items not being covered by Macy's exclusive contract. But with the internet absolutely impacting the paper products world, how much can that really drive business? (Source

Pilot Flying J CEO says reason behind FBI & IRS raid was over claims of not paying rebates to trucking customers - really?  Monday the FBI and the IRS raided and shut down this 650 retail locations corporate office campus of 1,000+ employees and didn't let anyone in or out unless they were escorted by agents. Late yesterday their CEO, who also happens to have bought the Cleveland Browns last year for $1B, said it's over claims of failure to pay rebates to trucking customers. FBI spokesman Marshall Stone told The Associated Press that the move was part of an ongoing investigation, but he would not provide additional details. "Any details that would be released to the public would not be available for some time," he said. This is the first time in this writers career that a retailers offices were raided and literally shut down. (Source

The growing adoption of so-called "just-in-time"and "on call" scheduling is driving payroll down & profits up - But at what cost and does it breed a store culture of "they owe it to me so why not steal"?  Employers say the benefits are obvious: limiting employees' hours amounts to limiting payroll costs. Using metrics like floor traffic and commission figures for sales staff, can help companies decide when -- or if -- to schedule people. Along with calibrating staffing levels to customer flow, employers also can limit overtime and generate cost savings as business conditions change. Although the technology can run into the hundreds of thousands of dollars for larger companies, smaller firms can turn to far cheaper "on-demand" scheduling options. Only 17 percent of retail employees have a set schedule, while 20 percent learn their working hours with no more than three days notice, according to a 2012 study by labor experts Stephanie Luce of City University of New York and Naoki Fujita of the Retail Action Project, an advocacy group for retail workers. Some 43 percent of these employees are on call, requiring them to phone their managers to find out if they are scheduled, sometimes with as little as two hours advance notice. There's no predictability to their lives," said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union. "How do you arrange for child care if you don't know if you're going to be working? How do you arrange that if you want to go to school? How do you get a second job if you always have to be available?" This is going to have a negative impact on customer service and the customer engagement that everyone is totting as the next thing that will differentiate them from their competition. Interesting article and one that every retail student should read because it can also impact employee theft behavior as well. (Source

"No longer can physical and cybersecurity be looked at separately"  
Since an attack on an organization's systems can cause physical infrastructure to fail. The evolution of the merging of cybersecurity and physical security is happening.  Have you considered its path and your role in it? (Source

Employers in denial about insider threat to data security  
Although insider threats to data security remain a serious problem, the word apparently hasn't made it up the corporate food chain in the UK. Survey results released recently by the UK office of network security provider LogRhythm, headquartered in Boulder, Colo., found that nearly half (44 percent) the 1,000 employers polled said they trusted their employees not to access confidential documents or steal data from them. Certainly we understand this is a UK study, however we've found that our similar cultures and retail structures/industry are significantly similar and therefore make for a great comparison. And with a U.S. firm actually conducting the survey we have to take this study seriously and apply it to our own organizations. Denial is the open door to abuse and who really has this covered from a procedural standpoint. For years now many have questioned the procedures of literally cutting someone off after they turn in their resignation - almost immediately seizing corporate property and disconnecting them from networks and emails- when in reality this is exactly what has to be done in this age of data breaches and corporate espionage. And yes corporate espionage does in fact exist in the retail industry. Our challenge is: How many of you, the senior LP leaders, have in fact been involved in developing, reviewing, and helping to implement employee/executive departure procedures and truly protecting corporate assets? (Source

Identify theft is expected to surpass traditional theft as the leading form of property crime - It's BIG business now Credit-card data theft is exploding, increasing 50% from 2005 to 2010, according to the latest figures from the U.S. Department of Justice. Millions of card numbers are for sale. A single number might go for $10 to $50; a no-limit American Express card number for a consumer with good credit can sell for hundreds of dollars. As a result, identity theft has become big business. The number of malicious programs written to steal your information has grown exponentially to an estimated 130 million from about 1 million in 2007. The fact is, no retailer can protect customer data with 100% certainty because every store, from huge chains to small mom-and-pops, relies on computer systems that are inherently vulnerable, she said. The upshot is that it's easier and safer for an identity thief to steal $100,000 worth of credit-card numbers than it would be to shoplift an inexpensive item from the store, Rasch said. (Source

Starbucks, Wal-Mart offering classes - for college credit
A growing number of Fortune 500 companies, like Wal-Mart, have grown tired of waiting for colleges and universities to produce the skilled workers they need and have started offering their own classes instead. And as an added bonus for employees: Many of these courses -- from Starbucks' Barista Basics to Jiffy Lube's finance fundamentals -- are eligible for college credit. Are your company training programs accredited? (Source

TrustInsight - A new fraud detection service promises to boost revenue for e-retailers  With the claim they'll help cut by a third the number of good transactions they mistakenly block as fraud, in turn boosting their revenue by 1% on average, online fraud prevention company 41st Parameter rolls-out their new product. Named the TrustInsight Network, it supplements retailers’ existing fraud-detection technologies with an additional piece of information, a “TrustScore,” about each customer based on information about a customer’s shopping activity on multiple retail sites, the company says. (Source

Monster takes counterfeiting seriously with largest seizure and conviction in Monster's UK history of internet trader  The conviction follows the largest seizure ever of counterfeit Monster products in the U.K. and marks a major step forward in the fight to protect consumers from the economic injury – and the potential danger – of purchasing counterfeit, unregulated goods. (Source

Best Buy Security Supervisor Employee Charged With Stealing Over $21K in Merchandise  New York State Police in Clarence say they received a complaint from a manager at the Best Buy on Transit Road for $14,672 worth of missing merchandise. Following an investigation, troopers arrested employee Matthew P. Kwarta, for Grand Larceny 3rd, Scheme to Defraud 1st Degree and Falsifying Business Records 1st Degree. Troopers say Kwarta, who worked as a security supervisor, stole $21,169.98 worth of cellphones and iPads. (Source

North Star Mall security officer helps burglary gang steal from Aeropostale in San Antonio  San Antonio police detectives were conducting undercover surveillance at the mall when they saw four people enter the Aeropostale store around 2:40 a.m., the affidavit stated. They said the suspected thieves were caught on camera, loading items from the store into a trash bin. One of the men in the video, seen taking items from the shelves and holding the door open for the others, is wearing a security guard uniform who was later identified by the Mall Security Director. The 38 yr. old was arrested on a burglary charge. Has your store in that mall had shrink problems? (Source

Arrest of oxycodone robbery spree suspect doesn't end oxycodone robberies in Madison, WI  Just days after an arrest was made in a string of oxycodone robberies in Madison and other Midwestern cities, another Walgreens pharmacy was robbed of the prescription painkiller. (Source

Robbery Crew Operating? Grove City robbery may be connected to robberies in Cincinnati, Dayton, and Florence, Kentucky  Police detectives in Grove City believe that the robbery at a Stringtown Road restaurant could be connected with a series of similar robberies in Ohio and Kentucky. Detectives believe that the same two suspects are responsible for robberies in Cincinnati, Dayton, and Florence, Kentucky. The other robberies happened between February 3 and March 26. (Source

BCBG Max Azria Group employee busted for theft for $30,000 in Springfield, Missouri.  An employee at a Battlefield Mall store is accused of misusing discounts for friends who, over time, totaled $30,000. Lalena Luba, vice president of public relations for BCBG Max Azria Group, said the employee was terminated as soon as the theft was discovered. (Source

Fred Meyer store evacuated after bank robbery inside the store in Oregon.
A suspicious device was left behind following a bank robbery inside the Fred Meyer store. Officers at the scene found a suspicious device and evacuated the bank before deciding to evacuate the store. Customers and employees were allowed back in by 3 p.m. There were no reports of injuries. (Source

Kroger employees in Frankfort, Kentucky apprehend a bank robber, believed to be a shoplifter.  A Kroger employee, with help from some construction workers, detained a man they thought was a shoplifter who turned out to be a bank robber. It happened at the Kroger in the Franklin Square Shopping Center in Frankfort Tuesday morning at 10:30 in the morning. That's when police received an alarm from the PNC Bank inside the Kroger. As the suspect tried to leave the store, Kroger employees noticed the man acting suspiciously and thought he might be a shoplifter, so employees and construction workers detained him. (Source

Fresno AutoZone robbery suspect hits twice in 60 days.
Fresno police have released an image of a man they say robbed the same AutoZone store twice in two months. Police said the first robbery took place Feb. 20. The second happened Sunday. In the most recent robbery, he walked into the store about 8:30 p.m. and asked for speaker wire. He went to the counter and pulled out a black handgun and demanded cash. The suspect dumped money from the register into an AutoZone bag and fled. (Source

Pennsylvania District Attorney says Police were justified in using deadly force at Kmart last year.  York County District Attorney Tom Kearney has determined that police officers were justified in using deadly force when they shot and fatally wounded a suspected shoplifter at the Kmart store in Springettsbury Township last year. Kearney said both police and customers were in imminent danger when William Shultz pulled a knife on the officers on December 29. Shultz was attempting to pry open jewelry kiosks when police confronted him near the front exit, where he struggled with the officers. Shultz pulled the knife while on the ground, then stood up and advanced on the officers while stabbing and swiping at them. After he ignored repeated warnings to drop the weapon, and advanced toward the store entrance and customers, two officers fired several rounds and struck Shultz, who died later at York Hospital. (Source

Police near Pittsburgh are investigating the theft of $250,000 worth of jewels from the rental car of a vendor who was staying in a suburban hotel. Monroeville police say someone smashed a window to access the trunk of the car rented by Raj Dhanak, of Atlanta, between Friday night and Saturday morning. Police believe whoever stole the jewels may have known the man's routine and been following him. Dhanak said he kept the jewels in the car because he thought that was safer than carrying them into his room at the Doubletree Hotel. (Source

Upcoming special edition on: How valuable are security certifications today?
On April 5th we ran an article and headline entitled, "How valuable are security certifications today?" and the response was incredible on LinkedIn with dozens of comments and opinions. Being that it was in fact an open forum on LinkedIn you can imagine the wide range of responses from the various security and Loss Prevention sectors. Next week we'll be publishing a special edition on the subject with the LinkedIn comments and some opinions from around the industry. Get involved or just be heard: send your comments to the editor at or go to the posting in LinkedIn and be heard about this incredibly important issue.


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The Loss Prevention Foundation Announces
New Board & Academic Committee Members

Mathews, NC, April 16, 2013 – The Loss Prevention Foundation (LPF) announces the selection of its newest board members to assist in governing and providing strategic direction for the Foundation.
The following individuals have accepted the nomination and have been approved by the board to serve on the Foundation’s Board of Directors:

Bob Oberosler, Group Vice President of Asset Protection, Rite Aid

Steve Hyle, Vice President, Director of National Accounts, AFA Protective Systems, Inc.

“The Foundation continues to strive for a broad range of industry perspectives so we can serve the loss prevention industry in an informed and comprehensive manner,” said Gene Smith, LPC, president of The Loss Prevention Foundation. “These leaders have proven that they have tremendous industry vision and have clearly demonstrated their commitment to improving the industry through supporting loss prevention education.”

“The Foundation continues to amass strong retail support for its mission – educating the loss prevention industry by providing academically supported resources such as our LPQ and LPC certification programs,” said Frank Johns, LPC, chairman of The Loss Prevention Foundation. “Each of these professionals brings a unique perspective as a result of their extensive expertise in loss prevention, store operations and solution providing services.”

The board also approved the following members to the academic committee:

Jeffery P. Grossmann, JD., Director of Homeland & Corporate Security Program, St. John’s University-Managing Director for Order of Sword & Shield Honor Society (OSSHS), the only National Honor Society dedicated to the entire security discipline.

Harry H Porter, Ph.D., Director of the Admiration of Justice Program, Mississippi College

These individuals have clearly demonstrated their commitment to elevating our profession through supporting LPF in its academic efforts. They have and will continue to provide valuable support in collaborating with efforts to raise the level of awareness for our profession.

For a complete list of board members and academic committee members, visit our site: LPF Board of Directors and LPF Academic Committee.

Gene Smith





LPRC's ORC Working Group is working on their 2013 research agenda
More details hopefully will be shared later as this is the hot button for the industry. It's a great effort on LPRC's part and we, at the Daily hope the agenda helps detail some of the points the industry needs to identify, realize, communicate, and helps to establish a true business model response, as some of the talking points are vague, all over the boards, and actually hurt the efforts on a national level. Their leadership here could help the industry identify exactly what needs to be done and what that looks like, as it has been, up to this point, a highly debatable issue that lacks any true empirical research and any industry wide acceptable model. We at the Daily absolutely support the LPRC's work here and offer the Daily's resources in an attempt to add value to the LPRC, the LP industry itself, and in our efforts to combat this growing problem.

Kroger's ORC team to partner with Ohio's Richland County Sherriff's new Violent Crimes Impact Team  On Tuesday, the Richland County Sheriff’s Office announced the creation of VCIT, which consists of the law enforcement operations captain, lieutenant and seven deputies supplemented by one K-9 unit, a community policing deputy and four major crimes detectives. The VCIT’s responsibility is to identify “hot spots” within the county for violent crimes, drug trafficking, gang activity, armed drug traffickers, crimes involving firearms and felons in possession of firearms. The Kroger Company’s Organized Retail Crime Unit is joining the partnership, and will provide intelligence information, resources and assets. Bosko said research has shown people who commit retail crimes often commit larger and more violent crimes. (Source

ALERT - Ukrainian Gift Card scam hitting E-commerce retailers in the U.S. with 30 retailers involved - are you one of them?  In a LinkedIn post one retailer reports a Ukrainian man having people buy $100 and $200 virtual and regular gift cards with stolen credit cards. Both sellers said they are contacted by a man in the Ukraine and they keep $20 per card sold and moneygram him the rest of the balance. When the Loss Prevention executive reviewed the ebay sellers, other auctions found over 30 other retailers gift cards being sold. For more information go to the LinkedIn post in the Loss Prevention Professionals group.


Supermarket Shoplifting Gang Stopped In Their Tracks

ORC gang of 8 hitting Walgreens, CVS, Publix, Winn Dixie supermarkets for OTC & HBA products in Florida  Eight people have been rounded up across South Florida following a yearlong investigation of an organized shoplifting ring, according to the Florida Department of Law Enforcement. The group is accused of stealing and reselling nearly $100,000 worth of over-the-counter medicines and high-priced health and beauty products from Walgreens, CVS pharmacies, Publix and Winn Dixie supermarkets. Four of the suspects stole from several stores within 48-hour periods, the FDLE said. (Source

Three Greenacres residents among 8 arrested in three-county retail theft ring  Three Greenacres residents were arrested this week in connection with a retail theft ring that included Palm Beach, Broward and Miami-Dade counties. James H. Chick Jr., 27, and Kimberly N. Chick, 24, both of Greenacres were booked into the Palm Beach County Jail on charges of retail theft. Gary W. Sheerer Jr., 31, also of Greenacres was booked into the jail on the same charge. All three defendants were booked into the jail Friday. The three were part of eight arrests which stemmed from an investigation which began in April 2012. The eight defendants allegedly targeted pharmacies around South Florida including Walgreens, CVS, Winn Dixie and Publix. (Source

Retail ORC theft ringleader indicted in Warren County, Ky.
A Warren County grand jury Friday indicted an Oakley man who police say served as the ringleader of a retail theft operation that resold stolen personal care items at a local flea market. Police say Barrett hired Bonnie Coldiron and Farrah Jones to boost personal care products from local Walmart stores, which he then resold at a local flea market. It is unclear which flea market Barrett operated at. Store security reported observing two female shoplifters stealing over-the-counter medications, razors, deodorant and body spray. When they apprehended the women, the pair fled the store. One of the women, Bonnie Coldiron, was observed getting into a van police later determined to be operated by Barrett. (Source

Associates arrested in counterfeiting scheme to purchase Walmart gift cards in Hammond, Indiana.  Five people, including 4 Walmart cashiers were recruited to participate in a counterfeiting scheme. The suspect would bring in counterfeit money and use it to purchase gift cards, then travel to another Walmart and withdraw the value back in ‘clean’ cash. It is believed that the suspect exchanged several thousands of dollars. (Source

Weis Market Associate in Pennsylvania accused of the theft of $8000 in baby formula.  Over a period of two months a Weis Market employee stole $8000 of baby formula, he was apprehended by Loss Prevention. (Source

Do you have an ORC case to share? Publishing it educates the LP & retail community
which might fuel even more jobs and funding.
Share your ORC news and help the industry grow

Vendor Spotlight

Social Media, The Next Big Thing for Loss Prevention

By Adam Creamer
Social media. For many retailers this term is usually tied to marketing and public relations, and why wouldn’t it be? There’s no other tool out there that allows you to market yourself, and communicate with customers for free (in most cases). Facebook, Twitter, Pinterest, Google+, and all the other networks are designed for people and organizations to interact with each other. But what if I told you social media can have another purpose, one that benefits Loss Prevention teams.

That’s right, loss prevention using social media as a tool in reducing fraud. It may seem like an unlikely fit, but think about the way social media works. It’s almost a different world, and some people forget that there is a connection between their social world and the real world. Because of this, people tend to post anything and everything on social networks (even if it may be illegal). Social sharing and forum site Reddit has recently seen a massive increase in people confessing to crimes, including theft and fraud.

When it comes to the big two, Facebook and Twitter, they can be a gold mine for loss prevention teams. Along with documenting every more they make, people tend to document lucky things that have happened to them. For example, say you have an unknown shrink issue in your store. A quick social media search may turn up the following: “just got a bag of chips form Retailer-X half off!” If you are Retailer-X, problem solved. You now know that chips are ringing up wrong causing shrink.

Of course there are many other ways to use the power of social media for loss prevention. It can even be utilized as an operations tool. If you want to read more about this topic, check out our white paper which goes into detail about the benefits of social media for loss prevention and operations. All in all social media is a very powerful tool, and it’s the next big think for loss prevention and operations.

Derek Rodner
VP, Product Strategy
856-366-1200 x500



Axonify. Read how Pep Boys reduced their shrink by 55% by overhauling their LP awareness program. Download.

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Dir, Security Risk Info & Analysis Target Minneapolis, MN Target
Head of Safety & Loss Confidential London Linkedin
Director FLD LP CVS Caremark California CVS Caremark
Senior Director, LP Corporate Hoffman Estates, IL Sears Holdings Corp
West LP Director Gap San Francisco, CA Gap Inc.
Director of Loss Prevention CVS Caremark Lumberton, NJ CVS Caremark
Sr Mgr of Global Security YUM! Brands Louisville, KY YUM! Brands
Director of LP - East Zone Express New York, NY Express
Director of LP - East Zone Express Miami, FL Express
Director of Safety Confidential Midwest Downing & Downing
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Today's Daily Job Postings from the Net - Appearing Today Only

Job Opening




Loss Prevention Mgr Macy's Garden City, NY Macy's
Loss Prevention Mgr DC Harbor Freight Moreno Valley, CA Harbor Freight
LP Mgr, DC & Call Center Ops Eddie Bauer Groveport, OH Eddie Bauer
Lead Analyst - Data Loss Prevention GE Corporate Glen Allen, VA GE
District Operations Mgr Home Depot Huntington, WV Home Depot
Area LP Leader JC Penney Kennewick, WA JC Penney
Area LP Leader JC Penney Madison, WI JC Penney
Mrkt Mgr ORC Investigation Toys R Us New York, Metro Area Toys R Us
Market AP Mgr Walmart Hoover, AL Wal-Mart
Loss Prevention Mgr Bloomingdale's Garden City, NY Bloomingdale's
Senior LP Agent Younkers Coralville, IA The Bon Ton Stores

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Eric Rode, CFI was named Loss Prevention District Manager for Office Depot.
Danny King was named Asset Protection Mgr - Supply Chain for The Home Depot.
Chris Lopez was named Regional Loss Prevention Manager for VF Corporation.
Allen Flower, CFI was named Regional Loss Prevention Manager for Hibbett Sports.

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Unhealthy? You're Probably Less Productive at Work  You don't need to sacrifice your health to be more productive at work. Don't let those long hours keep you from taking a jog after a long day. Exercise can help improve your brain function, so keep your feet moving and help your to-do list get shorter! (Just do it)

To-Do #1: Kill Your to-do List
We all look for ways to help manage the never-ending lists of things we want to get done. That will never happen if we don't realize what the most important items are on the list. Managing your awful to-do list can be as easy as just balancing the needs, wants and expectations. (Set goals)

9 Slightly Crazy Things That Might Make You Wildly Productive  We all have our ways to get ourselves into gear whether it's listening to music, or exercising before work, but there is one simple thing we can do that can have a far larger effect than running a marathon or listening to the Rocky soundtrack. (Have an upbeat attitude)

3 Ways to Tackle Your Procrastination Problem  All of us find the simplest excuses or reasons to put off what we should be doing today to save it for later.  There is no perfect time that we should be waiting for to finish what we set to accomplish, we must simply sit down and get to work. (Follow these three strategies)

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What one writes, reads, clicks on, fills out, develops, downloads, views, and listens to on the internet becomes part of a permanent record, leaves a trail, and opens up the gates for everyone. In today's world, far away is now sitting next to you and if they're sitting next to you, what are they seeing? Caution rules the day.

Just a thought,
Gus Downing

Gus Downing

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