As an entrepreneur, conquering challenge and failure is
essential to the success of your business. You can learn
to cultivate that resilience by training your brain to stay
positive when times are tough.
"People tend to have a cognitive bias toward their
failures, and toward negativity," says Matthew Della
Porta, a positive psychologist and organizational
consultant. Our brains are more likely to seek out
negative information and store it more quickly to
memory.
Of course, that bias is not always bad. Acknowledging
problems and facing failures can lead us to better
solutions. But too often, we go overboard, and beat
ourselves up for our failures or let ourselves dwell in the
negative.
By consciously increasing our focus on the positive, we
start to even the balance. We find a happy medium
where we can address failures and challenges without
letting them get us down, leaving us more motivated,
productive, and likely to succeed.
Try these three tips to help you train your brain to stay
positive
1. Express gratitude.
Negative events loom large unless you consciously
balance them out. "When you're faced with challenges,
it's important to take stock of what's going well," Della
Porta says. Thinking about the good in your life can help
balance that bias, giving your brain the extra time it
needs to register and remember a positive event.
To help your brain store positive events, reflect on what
you're grateful for and why at least once a week. Write
down your blessings, such as the opportunity to pursue
a career you love or a family that supports you. If you
prefer a daily habit, then keep a nightly log of good
things that happened that day. "Just keep it very short,"
Della Porta says. "If you try to hammer [gratitude] home,
then it becomes mundane." Day One, a journaling app
for Apple devices ($4.99), or OhLife, a free email-based
journal, can to help you do this.
2. Repeat positive affirmations.
As any politician or advertiser knows, the more often
you hear a message, the more likely you are to believe
it. The same goes for messages about who you are and
what you are capable of doing. By repeating positive
affirmations with conviction several times each morning,
you are training your brain to believe them. "Over time,
you'll start to internalize them," Della Porta says. Repeat
your affirmations silently if you feel self-conscious.
Choose two to three affirmations that represent your
values and goals, such as 'I can handle whatever comes
my way,' 'There is plenty of time,' or 'I'm getting better
every day.' The repetition will influence the way you
interpret negative events, making you more resilient.
"Especially if you're predisposed to negative thinking,
this can be extremely effective," Della Porta says.
3. Challenge negative thoughts.
Each time a negative thought arises, we choose how to
respond. If left to our own devices, we tend to dwell. Our
brains home in on negative events so they seem much
bigger and more significant than they are. To combat
that, start by imagining the thought as separate from
yourself, as something you can observe and
deconstruct. "Get in the habit of distancing yourself
instead of dwelling," Della Porta says.
Next, challenge negative thoughts that are unfairly self-
deprecating. For example, if your startup doesn't get the
traction you hoped, you might think, "I'm a failure."
That's untrue and unproductive. Instead, practice
interpreting the same event differently. You might say, I
worked really hard but I didn't account for a quirk of the
market, so I'm disappointed, but now I'm going to try
again with new information. That interpretation is gentler,
truer, and more proactive. "At first, [this strategy will] be
hard and you'll think it doesn't work," Della Porta says.
"But over time, it'll become automatic and negative
thoughts will be less likely to come up. No one does this
naturally; you have to learn and practice.
Saturday, February 28, 2015
How to Train Your Brain to Stay Positive
5 Negative Ways of Thinking You Need to Stop Today
Whether you’re an entrepreneur, freelancer, in
management or climbing up the corporate ladder, by
being negative, your worst enemy becomes yourself.
Yes, you might have some “enemies” in your life as well,
like the rude saleswoman who told you that dress you
were trying on looked too young for you. However, it's
up to you to deal with those snide comments by not
playing them over and over in your head.
Sadly, most people say worse things about themselves,
to themselves, than they would ever say about a friend
or even a stranger. It's good to pay attention to your
interior dialogue so you know when you're feeling
negatively, then you can take the steps to fix it. The
good news is that you’re in total control of changing how
you talk to yourself. Here are some of the most vicious
things we do to ourselves, why we do it, and how to
stop:
1. Convincing yourself you are worse than
you are.
Whether it’s fat, stupid, lazy or any other negative word,
it's best to just avoid that line of thinking. First of all,
those words turn what should be a verb into a noun. A
person, by nature, cannot be fat. Using the “I am” to
precursor any negative self-talk makes it that much
worse, it makes a person own it, and it reinforces it. Try
balancing it with “I feel” and “but” such as “I feel like I’m
carrying more weight than is healthy, but I’m also
strong.” Then make a plan of action to change if
necessary.
Related: How to Train Your Brain to Stay Positive
2. Deciding you can't do something before
you even try.
There are certainly things most people probably can’t do,
like become Miss America if they're in their 30s, married
and have three kids (they have rules, after all). However,
for the most part “I can’t” is really a way of saying “This
is hard” or “I feel overwhelmed.” While having a bucket
list is fantastic for some, there are many reasons that
it’s not a good idea. If you think you can’t do something,
try asking yourself first if you really want to do it.
3. Thinking everyone has a life better than
you.
Whether it’s getting their PhD, getting married, having
kids, traveling or getting promotions, success of others
doesn’t take away from your achievements. Everyone
has highs and lows. Everyone desires different things
and puts various values on different “achievements.”
There’s guaranteed to be someone who’s envious of
your life (and probably quite a few people). Avoid
comparing your life to others and focus on the value of
your own journey.
Related: The Bright Side of Negative Thinking
4. Believing you don't have time to reach
your goals.
Everyone gets just as many hours in the day as
Beyonce. In fact, time is the one equalizer: Everyone has
the same amount in a day, and nobody knows when
their days will run out. As such, it’s not an excuse not to
do what you want to do (but it’s often used as an
excuse to not do what you don’t want to do). While Life
Hacker gives tips on making it feel like you have more
time, the reality is that it’s still the same time, just better
spent.
5. Making impossible bargains with
yourself.
There are all kinds of bargains and deals we make with
ourselves. Sometimes they make sense. For example,
“When I save six months’ worth of income by August of
this year, I’ll file the license for by business.” That’s
smart planning with a feasible goal and end date in
mind. However, something like “When I lose 50 pounds,
I’ll find true love” is your mantra, it’s time to re-think your
goals, what’s important, and your dreams.
How much of your self-talk is helping you, and how
much is getting in your own way? Listen closely, and
you’ll be surprised by how much sabotage may be
happening.
Here Are 5 Ways to Achieve a Positive State of Mind
As an entrepreneur, one of my most important keys to
success is staying positive – especially when facing the
inevitable obstacles of running a business.
People often ask, “How can you be so happy?” Because I
choose to be. We all have lives full of complexities and
trials. Why dwell on them? Dwelling on negativity or the
people who dish it out does not bear any fruit. I prefer to
adopt a positive attitude that powers me through the
rough patches of life. Adopting this kind of perspective
has the potential to enhance your life and your work.
According to the latest research , optimistic people are
healthier and live longer than pessimists. In 2010,
researchers studied the results of 83 studies measuring
the impact optimism has on physical health. Optimists
had better results when it came to overall longevity,
survival from disease and pain tolerance. Additionally, a
Yale study indicates a positive attitude helps keep your
heart pumping an additional 7.6 years on average.
Related: 5 Negative Ways of Thinking You Need to Stop
Today
Here are five ideas for achieving a positive state of mind
– with some added inspiration from beloved and revered
American leaders:
1. Find your inner bliss.
“We need joy as we need air.” –Maya Angelou,
renowned author, poet, and civil rights activist
I believe this wholeheartedly. Joy is a necessity and
fundamental to our wellbeing. Look inside. Reflect on
what makes you happy, what propels you. Maybe it’s
travel, family, or a hobby. Whatever it is, following your
inner compass is the first step to a strong mental
outlook. Doing what you love fuels you, puts you in a
positive frame of mind, and allows you to live a
meaningful life.
2. Manage your stress effectively.
“It’s not the load that breaks you, it’s the way you carry
it.” — Lou Holtz, former college football coach and
current sports analyst and motivational speaker
Stress wreaks havoc on every aspect of your life; how
you carry it can literally make or break you. Take note,
Millennials, because, according to the American
Psychological Association, you have it the worst. On a
10-point scale, Americans age 18-33 report an average
stress level of 5.4 compared to the national average of
4.9. These numbers are too high.
Strategies to relieve stress are different for everyone.
Some people exercise or read; others paint or listen to
music. Meditation is popular, and for good reason. A
University of California, Davis study suggests focusing
on the present may actually lower levels of the stress
hormone cortisol. An attitude of gratitude is also found
to reduce stress by focusing on what we have instead of
what we don’t.
Finally, sometimes we just need to heed the advice from
the popular movie Frozen and simply “let it go.”
Managing and letting go of stress will change your life.
Related: Become More Positive With These 5 Tips
3. Stay motivated.
“People with goals succeed because they know where
they are going…it’s as simple as that.” —Earl Nightingale,
personal development pioneer and radio legend
So true. You have to know where you are going – and
then stay the course. Staying motivated can be hard at
times. Really hard. But keep a “no quit” attitude.
Remember why you started, know where you are going,
and stay laser-focused on the prize.
Success is like running a marathon; it takes time,
persistence, and mental training. Believe in yourself and
remember you are capable of great things. Thomas
Edison failed 10,000 times before perfecting the light
bulb. While this example may be extreme, my message
is don’t give up and success will follow.
4. Brace for anything, including the good.
“Apparently there is nothing that cannot happen today.”
— Mark Twain, author and literary icon
Twain got it right; we cannot predict life. Bad things will
happen, so be mentally prepared. Keep an open mind
and don’t let anything knock you down. If it does, get
back up. You will experience obstacles and you will
make mistakes. Accept this, be ready, and move on.
On the flip side, good things happen, too. Life will
surprise you in wonderful ways – sometimes when you
least expect it. Be ready to embrace and enjoy these
experiences all the same.
5. Build a confidant’s network.
“You are the average of the five people you spend the
most time with.” — Jim Rohn, American entrepreneur,
author, and motivational speaker
That’s a powerful statement – and one that I buy into
completely. I am a huge believer in the power of a high-
quality network. In this case, however, choose carefully,
because the company you keep literally shapes you.
Think about a few people whom you admire and can
really rely on – who bring out the best in you, push you
higher, and give off good energy.
Consider confiding in a close friend, hiring a work or life
coach, or finding a mentor. Having a circle of confidants
helps ensure you have the support you need along the
way. Curate your network regularly to ensure the highest
quality people are in your circle.
Many traits matter when it comes to achieving happiness
and success in work and life – skills, knowledge, and
hard work – but I’ve found that a positive mindset
underscores it all. Here’s to a fresh perspective and
healthy state of mind starting now!
Funding Your Business on Your Own? Learn From These 7 Entrepreneurs
Business owners don’t know what they don’t know. The
beauty of mistakes, however, is that they make you
infinitely wiser. Smart business leaders won’t flinch
when they lose a client, customer or potential revenue
source -- they’ll reinvest that mistake into their own
learning.
What new business owners can’t afford to lose, however,
is money. When you’re bootstrapping -- using personal
savings to fund your new venture -- you’re putting your
financial future on the line. Lost money can directly
impact health, future, and immediate well being.
Related: The Ins and Outs of Raising Money From
Friends and Family
With approximately 543,000 small businesses launching
each month, the harsh reality is that the majority of
these will fail. So if you’ve invested money into your
business, there is a distinct possibility that you’ll lose
everything. But that doesn't have to be the case.
The best way to prepare for the worst is to learn from
successful bootstrappers who have been there before.
Below are seven financial mistakes to avoid, especially
when self-funding your new venture.
Related: How to Be Smart About Your Spending in 2014
(Infographic)
Hiring too aggressively
Image credit: mycorporation.com
Tip contributed by: Deborah Sweeney of MyCorporation
Company type: Online legal and business filing service
for entrepreneurs and small businesses
“Hiring too many employees can be an expensive
problem. Being in California where the cost of
employees such as insurance coverage is very high, the
risk of taking on too many people is significant.”
Advice: Sweeney recommends pushing existing team
members harder, giving raises and making sure that
there is a definite need for additional staff before hiring
the next employee.
Idealism about costs
Image credit: PK4media
Tip contributed by: Tom Alexander of PK4 Media
Company type: Online advertising
“One of the biggest lessons I learned was that any
company will cost approximately 20 percent more time
and money than originally planned. There are always
issues that arise that cannot be calculated from the
beginning, such as slow vendors, extra cost and time to
build the technology.”
Advice: Alexander encourages business owners to
operate with a buffer. Expect to spend more than what
you originally plan so that unforeseen expenses don’t
yield a loss.
Branding too soon
Image credit: theuncagedlife.com
Tip contributed by: Rebecca Tracey of The Uncaged Life
Company type: Small business coaching
“I spent $1,000 on a copywriter when I started my
business and three months later my direction had
changed so much that they brilliant copy was virtually
useless.”
Advice: Tracey encourages clients to wait at least six to
12 months before fully investing in copywriting and
design services. That way their branding will be spot on.
Failing to calculate burn rates
Image credit: projectmona.com
Tip contributed by: Steve Spalding of Project MONA
Company type: A platform for multi-disciplinary thinkers
“The biggest mistake I've seen is not properly defining a
burn rate. A lot of small business owners think that the
burn rate is just server costs,office space and the fixed
expenses associated with lawyers, accounting and the
rest. What they ignore is that committing to building a
small business means committing to deferring your
income for an indefinite period of time as that business
grows.”
Advice: Spalding encourages business owners to
acknowledge that they will be deferring income for an
indefinite period of time and to incorporate rent, food,
health insurance and utilities into their business’s
financial plans.
Not keeping your spouse in the loop
Tip contributed by: Sean K Murphy of SKMurphy
Company type: Offers customer-development services
for startup entrepreneurs.
“The biggest mistake you can make is not keeping your
spouse in the loop if they are working and keeping the
lights on while you bootstrap.”
Advice: Shafter encourages business owners to treat
their spouses as investors or board members with whom
you can share detailed accounting plans.
Spending too much money on features
Image credit: Mattias Guilotte via Twitter
Tip contributed by: Mattias Guilotte of Coworks
Company type: Creative services
“When we started building Coworks, my co-founder and I
hired two developers and spent between $30,000 and
$40,000 building a pilot. This version of our product
empowered us to get seed funding but our time and
resources would have been better spent talking to
customers. We should have been much more lean with
our budget. We could have done more with less.”
Advice: Guilotte encourages business owners to spend
more time planning their budgets. Focus on executing
high-impact initiatives. Features can be modified later.
Shortcutting your talent
Image credit: realtymogul.com/blog
Tip contributed by: Jillienne Helman of RealtyMogul
Company type: A marketplace for accredited investors
looking to buy shares of real-estate property.
“One of the biggest challenges of bootstrapping is
attracting high-quality talent. If you cannot pay top
dollar, how do you get amazing talent intothe company.”
Advice: Helman is able to attract top employees by
offering equity. Every employee at RealtyMogul is a part
owner. The company sets aside a piece of the company
for stock options.
8 Musts to Start Your Business With Little to No Capital
Entrepreneurs will often have amazing business ideas,
but they put them on hold due to a lack of capital. They
assume that their idea will never get far off the ground
unless they have major funding behind them.
It seems that every day there is a new startup receiving
millions of dollars from venture capital firms, but what
you don’t hear about is the several startup failures that
burn through millions of dollars only to fizzle out and
shut their doors forever.
Related:
5 Ways for Bootstrapped Startups to Get Through the
First Year
Maverick Startup (Book)
If your idea and plan of execution aren’t well thought out
from the beginning, no amount of money can turn it into
a winner. Have a great idea but very little money? Don’t
let that stop you! Yes, there will be ridiculously long days
with little to no sleep. Yes, you are going to be stressed.
But those that want it bad enough will make it.
Here are eight tips that can help you get your idea off
the ground with limited funds.
1. Build your business around what you know. Instead
of venturing off into uncharted territory, make sure that
you build your business around your skills and
knowledge. The less you have to rely on outside sources
the better. When your business is built around your own
personal expertise you can eliminate consultants and
outside assistance.
Also, having that knowledge is sometimes all that is
needed to successfully take the plunge into
entrepreneurship.
2. Tell everyone you know what you are doing. Inform
your family, friends, business contacts and past
colleagues about your new business. Call, send
emails and make your new venture known on your
social-media profiles. Your friends and family members
can help you spread the word, and past business
contacts can introduce your brand to their professional
contacts as well. This type of grassroots marketing can
help introduce your company to a much larger audience.
3. Avoid unnecessary expenses. You are going to have
plenty of expenses, and there are some that just can’t be
avoided. What you can avoid though is overspending.
Take something as simple as business cards. You could
drop $1,000 on 500 metal business cards that give off
the “cool” factor, or you could spend $10 on 500
traditional business cards. Being frugal in the beginning
can be the difference between success and a failed
business.
4. Don’t get buried in credit card debt. There is a smart
way and a suicidal way to use credit when starting a
business. New computers, office furniture, phones and
supplies can all quickly add up. Instead of purchasing
everything at once and throwing it all on a credit card,
use your company’s revenue to finance your expenses.
Eliminating the stress and burden of debt will greatly
increase the chances of creating a successful business.
Related: Funding Your Business on Your Own? Learn
From These 7 Entrepreneurs
5. Make sure your receivables policy won’t sink you. If
your business is a retail operation then this isn’t going to
apply, but if you are providing services such as
consulting or products to retailers you need to make sure
that your payment policy is well thought out. Can you
remain above water with net-15 or net-30 terms? Don’t
base your receivables on what you think your customers
will want. Base them on what is going to make your
business operate successfully.
6. Build up sweat equity. When I first started my
business I worked around the clock, handling every
aspect of the business as well as the marketing and
growth. All of the hard work and long days that you put
in isn’t for nothing. You are building a brand and your
hard work is essentially increasing the value of your
business. Your sweat equity will come into play if you
ever decide to sell off a piece of your company or take
on a partner.
7. Take advantage of free advertising and marketing.
There are several ways to generate a buzz for your
business without breaking the bank. Social media is a
great way to gain exposure and interact with potential
customers. You can also reach out to local media and
offer your expertise.
Make as many local media contacts as you can and be
extremely responsive with their requests. This can lead
to them to branding you as the local authority,
generating plenty of free press for your business.
8. Get ready to hustle. Hard work is an absolute
necessity, but when you are starting a business with
little to no capital then you must be prepared to dedicate
everything you have into making the business a
success. This might mean cold calling, handling
customer support, dealing with billing and accounting,
and every other working part of your business. You will
wear many hats and it will require the majority of your
time and energy if you are to make it.
Don’t let limited capital prevent you from taking a great
idea and running with it. Will it be difficult and will you
have some stressful situations? Of course, but that is
part of entrepreneurship.
Have you started a business with sweat equity alone? If
so, let us know about your experiences in the comments
section below.
Friday, February 27, 2015
3 Warren Buffett Quotes Your Business Should Live By
Warren Buffett helped me build my business -- even
before I decided to try my hand in entrepreneurship.
Several years before I founded my own company, a
colleague gifted me Warren Buffett’s biography. His
ideology and approach to communication and
management continue to influence me to this day.
While it’s universally recognized that Buffett has
exceptional investment acumen, his fearlessness and
willingness to go against traditional business norms
have inspired me to build an organization that does the
same.
Related: Best Advice from Billionaire Investors for
Entrepreneurs (Infographic )
Here are three Buffett quotes your business should live
by:
1. “There seems to be some perverse
human characteristic that likes to make
easy things difficult.”
Warren Buffett’s laser focus on his areas of competence
has been essential to his success. As he says: “I’m no
genius, but I’m smart in spots, and I stay around those
spots.”
It’s very common, especially amongst accomplished
executives, to achieve a level of success then branch
out into other areas in an effort to expand their
businesses. Though Buffett has made his fortune in
investing in several industries, he’s remained focus on
the areas he knows best. Put simply, he’s an expert in
identifying the most basic opportunities that show long-
term potential and executing on them flawlessly.
The best business owners are great at determining their
area of competence and focusing on how they can
capitalize on that competitive advantage, rather than
trying to do everything and solve unnecessarily complex
problems.
2. “What’s nice about investing is you don’t
have to swing at every pitch.”
Despite many misconceptions, Buffett rarely invests but
and when he does, he is in it for the long haul. He’s
always invested in companies that have a strong brand
and a personality with the right leaders driving them
forward.
Related: To Achieve Your Best Results, Put on Blinders
If you want your business to succeed, think like Buffett:
big and long term. Invest in your brand, hone in on what
you’d like to accomplish and stick with it.
3. “Be greedy when others are fearful, and
be fearful when others are greedy.”
This quote describes Buffett’s strategy to a tee -- an
aggressive market player when others deem an
investment unworthy. Think back to the salad oil
scandal of 1963 when Anthony “Tino” De Angelis, a
savvy conman from New Jersey, discovered a way to
exploit an American Express program that gave business
loans based on collateralized inventory. Through an
elaborate system of deception, De Angelis was able to
obtain loans on an oil inventory greater that the total
national holdings combined. While everyone stood clear
of AMEX stock, Buffett did the opposite. He visited local
businesses and observed business owners continue to
accept American Express Travelers Cheques and
consumers continue to use them. Contrary to virtually
every investment expert at the time, Buffett purchased
more stock and established a 5 percent stake in the
company. It reportedly cost him $20 million at the
time but now 50 years later, it was obviously incredible
foresight.
Whether you aspire to run a multinational company or
your local mom-and-pop store, this is an important
lesson to apply. Innovate and solve a problem rather
than following suit with the rest of the industry.
Apply these ideas to your company’s operations and
you’re bound to see a substantial improvement. More
importantly, you’ll feel liberated by your ability to
confidently make sound choices -- especially when
you’re going against the grain and doing what’s best for
your business.
Related: 5 Visionary CEOs and Their Key Traits That
Every Leader Should Master
Building a Business Website: A Small Business Guide
As the importance of Google search rankings and branded social media
continue to grow, this saying — once simply a comment made by early
adopters to persuade others to get online — is quickly becoming the
reality in today's marketplace. The Web is often the first place
potential clients will check for information about a company, so having
an up-to-date, functional website is an opportunity to maThursday, February 26, 2015
How to Shut Down Your Struggling Startup
In life, people remember how things ended. A couple
may be fuzzy about the details of their courtship, for
instance, but the particulars of a divorce are always
starkly vivid.
As such, if the sun is setting on your startup, it's
important to craft a final impression that leaves
everyone with positive thoughts about you and your
company.
Unfortunately, this is usually happening while the
company is in full-on disaster mode: you're stressed out,
your relationships are fraying and your resolve is
destroyed. Nevertheless, you must take action in order to
end the turbulence with as much poise as possible. You
can't change the past, but you can certainly determine
how you are remembered.
Rip the Band-Aid off. Nothing gets better with time
when you're talking about a failing startup. It's like
pulling a Band-Aid off--the slower you act, the more
painful it feels. Every day that goes by erodes your
finances, your relationships and your sanity. The sooner
you can wind down, the sooner you can go on to focus
on something positive.
If things didn't work out, that's okay. Startups fail all the
time, and there will always be another chance.
Take ownership. The best way to face a failing venture
is to take full ownership of the outcome. No one wants
to hear a story of victimhood or that the problem was
someone else's fault. The more you can take ownership
and humanize the failure, the better reception you'll likely
get.
One technique I've found personally useful--and even
cathartic--is to write a letter to myself explaining, in
detail, why things didn't work out. Once the thoughts
were out of my head and onto the page, I had the
perspective to then reference the letter when talking
about the business to people later on.
Give your team a clear answer. Telling your team that
it's game over is gut-wrenching. But what you want to
avoid is providing a vague, non-specific reason for the
shutdown. Be as clear as possible about what happened,
where things stand and how this will affect them. If they
can't articulate what happened to others, you didn't do a
great job articulating it to them.
If possible, offer people any help that you can. That
might mean opening up your network to help them find a
job, or at least providing a glowing reference.
Related: Closing Shop: Why I Decided to Throw in the
Towel
Thank your customers. Your team and investors may
represent dozens of relationships, but your customers
likely represent hundreds or even thousands--many of
which you didn't even realize you had. These are the
people that will likely support you in the future, so letting
them know how much you appreciate them is key.
If possible, offer a final gift that's as personal as
possible. Maybe you're closing down your restaurant.
Offer to cook the final meal yourself using your favorite
recipe. People will remember the offer--even if they
never take you up on it.
Level with your investors. What you may find surprising
about telling your investors that they lost all of their
money is that they already know. Give your investors
credit; they're smart. Explain to them what you set out to
do, what assumptions failed and why. You don't need to
apologize, you need to explain.
And appreciation for their support is just as important as
a cogent explanation. Investors love to back
entrepreneurs that they know and love, even if things
didn't necessarily go according to plan during a previous
collaboration.
Thank your friends and family. Throughout the journey
of building a business, the excitement and resulting
strain that you've gone through is reflected in all of your
personal relationships.
Not only do those close to you deserve appreciation for
their support, they also deserve to know that you're
okay. They have probably watched your mood change
and are rightfully concerned. They'll want to know that
this is behind you and that it's okay to talk about what
happened.
Reset and reload. Much like a marathon runner needs to
cool down, having to pull the plug on a startup entitles
you to take a break too. If you're too broke to rest, take
a job that requires as little thought as possible to keep
the bills paid while you take the time to clear your head.
And when the dust settles, the best way to put the past
behind you is to focus on the future. Put all of that
nervous energy into building something great and
making use of what you learned.
There is always a next time.
5 Reasons Why I Quit My Own Business to Work for Someone Else
Two years ago I quit my own business to work for
someone else, and it was the best decision I’ve ever
made.
I was 26 years old when I “retired” from a terrible desk
job at a local bank and set out to become self-employed.
As with most modern entrepreneurs, I had read The 4-
Hour Workweek and was convinced I could create a
lifestyle business on my own that could pay my bills
while I enjoyed a life of freedom.
Between my rental properties and my growing real
estate investing blog, I had built up enough semi-passive
cash flow to pay the bills. I was financially free.
Only … it wasn’t free.
Within a year I quit the real estate investing blog and
jumped back into a day job as vice president of growth
at BiggerPockets.com , and although it was agonizing to
make, it was perhaps the best decision I’ve ever made.
Here’s why.
1. Paid education
When I look back at the year I spent trying to build my
own online business, I laugh.
I had no idea what I was doing.
Related: How to Shut Down Your Struggling Startup
Sure, I got the basics: start a blog, build an email list,
monetize that list. But I knew nothing, Jon Snow .
When I joined BiggerPockets.com, a niche-dominating
startup in the real estate education space, my knowledge
on growing a company grew at an astonishing rate. In
fact, to this day I probably spend 50 percent of my time
just learning and testing new ideas, and I get paid for
every minute of it.
Yes, I could have figured this stuff out on my own, but it
would have been a much slower process, and I would
have paid dearly to learn it. I would have had to focus on
trying to do 50 different tasks at once rather than
learning the things that are going to benefit me the most.
I don’t have to deal with bookkeeping. I don’t have to
deal with hiring and firing. I just to focus on growth, both
personal and business.
2. Accountability
While working under a boss, I am held accountable for
making progress.
I am paid to drive the company forward (and incentivized
well for doing so), and as such, I am not tempted to
simply relax and “take the day off” as I did during my
self-employment time. Instead, I am able to produce
incredible results.
People often ask me how BiggerPockets is able to
accomplish so much with so few people in the company
(I was the very first employee, and we are now up to
around 10).
The answer is simple: accountability.
Sure, we all hate having a boss. But having a leader
consistently drive you to be the best you can be is not a
liability -- it’s an incredible asset.
3. Play a bigger game
Deciding to take a job again was one of the most
difficult decisions of my life. The internal argument that
finally won me over, however, was this: I could play a
much bigger game.
When I was growing my own business, I could work for
days to create some incredible new lead magnet to
attract more subscribers, but in the end, the results were
hard to see. After all, if I’m converting 10 percent of my
readers into email subscribers and I'm able to move that
needle to a 15 percent conversion rate, it’s not all that
impressive to the bottom line when I have only a few
hundred unique visitors.
However, by jumping on board a larger company, I'm
able to leverage myself into a much larger sandbox and
have a lot more fun with the results. A conversion
increase of a few percentage points could result in
thousands of dollars (or hundreds of thousands) in new
revenue. The results of a split test could be seen in days
rather than weeks. Writing a blog post can help tens of
thousands of people, rather than just a few.
To emphasize this point, in the past year I’ve published a
book, spoken at Google, maintained one of the most
popular business podcasts on iTunes, and am having
serious conversations about creating a television show
about my life.
I simply couldn’t play that game on my own -- at least
not this quickly.
Related: Before You Quit Your Job, Do These 10 Things
4. Meaningful relationships
Let’s be honest: being self employed can be lonely at
the start.
Working in my pajamas at the kitchen table seems like
the ideal life for those stuck in a cubicle, but it’s not the
answer I was seeking.
By working with a company, I am able to build
meaningful relationships that help both personally and
professionally. I am able to learn from an incredible
serial entrepreneur (my boss, Joshua Dorkin) who
bootstrapped a real estate forum into a 250,000-member
niche social network. I am able to brainstorm new ideas
with my coworkers for hours and work together to
achieve something great. I am able to sit down with
major influencers in the business world as equals , not as
a super fan.
The relationships I’m building today will extend much
farther than just my current job.
They’ll positively impact my life forever.
5. More disposable income
Finally, it would be a lie not to mention one of the
greatest reasons for having this job: stable income.
But not in the way you might think.
Buying stuff is nice, but at the end of the day, it doesn’t
get you any closer to financial freedom. Wealth is built
over time collecting assets such as real estate, stocks or
businesses.
By working a day job, I am able to substantially increase
the amount of income, but at the same time keep my
expenses constant at “pre-job” levels.
Translation: I have a lot more disposable income.
While most of the world would simply buy a larger
house, a nicer car and better wardrobe, I’ve been sinking
this cash into several other more productive avenues,
including more real estate investments, paying off
debt and going on some relaxing vacations.
Simply put: I’m leveraging this job to create even greater
wealth in my future.
Conclusion
I’m a lifelong entrepreneur, and that will never change.
However, just because I’m an entrepreneur, it doesn’t
mean the highest and best use of my time right now is
building my own business.
During this period of my life I am gaining an incredible
volume of knowledge from incredibly intelligent people.
I’m moving the needle forward in a business that’s
helping millions of people. I’m increasing my net worth
and designing a lifestyle that allows for both work and
play.
Prepare for the Sale of a Business in 6 Steps
Often, a lucrative business opportunity comes along but
doesn't work out because the business owner hasn't
adequately prepared by building a sales strategy,
creating a tax plan, streamlining finances and making
provisions for the partners or family members involved.
Selling a business can create a unique liquidity event
and have a substantial impact on taxes, cash flow,
wealth-transfer plans and an owner's lifestyle.
To help you potentially maximize the value of a sales
deal and keep your assets protected, put a strategic
plan in place before any paperwork is signed.
Business owners should consider their time frame for
selling the business as well as the market.
Have a succession plan at least three years in advance
to give you time to get your business in order and be
ready for opportunities that arise.
Consider taking the following steps to prepare for the
sale of your business:
Related: 5 Things Business Owners Should Keep in
Mind With Succession Planning
1. Build a sales strategy with a wealth
advisor.
Advisors who specialize in this area can help you
maximize the financial and emotional value of the
business. Specialists can help you define a strategy in
alignment with your family’s goals and objectives.
Plus, a well-chosen advisor can help you assemble the
right team to sell your business. An unbiased advisor
can guide you throughout the process, from interviewing
investment bankers to bringing together all the legal, tax
and business experts.
2. Create a tax plan.
Selling a business can have a huge impact on your
taxes. If the gain on the sale is long term, a federal tax
rate of as much as 23.8 percent could be applied.
Additional state income taxes, where applicable, may
also be imposed on the gain. Doing tax planning before
selling might help in maximizing deductions and avoiding
penalties.
Work with a tax advisor before completing the sale to
establish your income expectations for the year,
calculate anticipated taxes based on projected gains and
determine if any estimated tax payments are required
along as well as year-end payments.
Remember that the value received from your business
will also be included in your estate after your death.
Federal estate tax rates of as much as 40 percent may
apply. Some states collect additional estate or
inheritance taxes.
3. Consider selling the firm over time.
To offset the tax impact, consider selling the business
on an installment basis. This involves collecting
payments over several years, allowing you to recognize
gains over time and potentially avoid higher tax
brackets.
This is most effective if you are confident the buyer will
be able to meet his or her future payment obligations.
4. Clean up the financials.
Before talking to buyers, eliminate financial items not
directly related to operating expenses. This can include
insurance or salaries for nonworking family members, as
well as cars, expense accounts and other discretionary
expenses.
If it’s not something the buyer would want to pay for, it
shouldn’t be there.
Related: The Key to Maximizing Return When Selling a
Business
5. Review the financials with an
accountant.
You can conducat one the following financial reviews
with an account:
A compilation, the least formal type of
assessment, involves a certified public
accountant's preparing financial statements based on
information provided by the business owner. The CPA
won’t offer any opinions on the data and will assume
everything is accurate. A compilation is useful
for evaluating internal goals but doesn't provide the
validation a buyer will want.
A review involves a more in-depth analysis of the
financial statements. The CPA provides an opinion of the
company’s financial status and identifies potential
issues. The review provides "limited assurance" that
nothing serious came to the accountant’s attention.
The most formal assessment is an audit, when a CPA
conducts a critical review of the company's
management and an independent verification of financial
information. An audit provides the highest level of
assurance that the financials are in line with generally
accepted accounting practices. This might be the best
option for owners preparing to sell a business.
6. Diversify your customer base.
As part of the business-review process, examine all your
vendor contracts, customer contracts, license
agreements, buy and sell agreements and other
arrangements that might affect a sale.
You want to know if any of your current business terms
will hurt or increase value for the buyer. Look for red
flags, such as a significant portion of sales going to one
or two customers. This could be considered risky for a
buyer, especially if the customers have strong personal
relationships with the owner.
Thinking about what you can do to make yourself less
relevant to the sales process may help you get the best
deal for your business.
9 Questions You Should Ask Before Hiring a Business Broker
You have two main options available when you decide it
is time to sell your business. You can try to sell it on
your own, or you can retain the services of a business
broker to handle the details of the transaction. While it is
possible to sell a business on your own, most business
owners simply don’t have the time, contacts or
objectivity to negotiate a safe and fair deal.
Using a third-party professional is often the best option,
but only if you hire the right broker that properly
represents your best interests. Hiring the wrong broker
can be the difference between not selling at all and
selling for a price you are satisfied with. Here are nine
questions you need to ask prior to hiring a business
broker:
1. How much experience do you have
selling businesses like mine?
It is important that you look for a broker that has prior
experience selling a business similar to yours. Selling a
restaurant is much different than selling a website. Not
only is it a completely different business model, but the
target buyer is much different as well. Successful
business brokers will always have a number of
experienced buyers in his or her back pocket, making it
advantageous to work with someone that has existing
connections to buyers related to your business and
understands the nuances of that particular industry.
Related: Prepare for the Sale of a Business in 6 Steps
If you hire a broker that doesn’t have experience selling
a business similar to yours, it will require them to learn
your business and industry inside and out. This wastes
valuable time that is better spent prospecting and
negotiating.
2. Do you work from home or an office?
There is nothing wrong with working from home, and
many companies are migrating to a virtual
environment to cut costs. When it comes to business
brokers though, working from home will sometimes
signify that this is not the individual’s full-time
occupation. The last thing you want to do is hire a
broker that isn’t going to give your listing his or her full
attention because they have another job that takes up
the majority of their time.
A business brokerage with an office typically means that
they have a full team of brokers and experts that will all
work towards reaching the goal of selling your business
fast and for top dollar. An office setting also gives them
a professional environment to handle negotiations and
meet with potential buyers. The broker you choose to
hire is a direct representation of your business.
Do you want potential buyers discussing the purchase in
a nice office setting or at a Starbucks? A professional
image goes a long way when it comes time to close a
deal.
3. How many businesses like mine have
you sold?
It is important to find out how many businesses like
yours they have sold. Don’t confuse this with the
business type -- as there can be a huge different
between business in a particular category, such as a
restaurant, for example. A small mom-and-pop breakfast
restaurant that seats 30 people is much different than a
200-person Italian fine-dining restaurant with a full bar.
If a brokerage hasn’t successfully sold a business
similar to yours, it is in your best interest to keep looking
until you find one that is experienced and qualified to
handle your listing.
4. How do you value a business?
Asking a business broker how he or she values a
business will give you a good indication of how
experienced they are. If they give you a cookie cutter
response such as “net income multiplied by two” before
asking you many questions, then turn around and run.
Valuation calculations have so many factors to consider
-- the same formula doesn’t work for every business.
For example, you value a website or online business
much differently than you would a brick-and-mortar retail
business.
Most small businesses are valued on a multiple of seller
discretionary earnings (SDE), which are the net profits of
the business added to expenses that benefit the current
owner(s) but do not necessarily benefit the business.
Business valuation is a complex topic, so steer clear of
any brokers that mention a generic valuation formula, as
every business is different.
5. How will you prevent my customers and
competitors from hearing my business is
for sale?
Keeping the sale of your business confidential is very
important. Make sure to find out what policies are in
place that keeps the details of the sale confidential. If
your customers are made aware of the sale they might
interpret it as trouble -- when in reality you might be
selling simply to pursue other opportunities. Additionally,
you don’t want competitors to catch wind that you are
exploring options to sell.
A great broker will be able to stir up interest by just
providing teaser information. Once a potential buyer
expresses interest he or she will have to be qualified to
ensure they have the financial ability to purchase the
business. Once qualified, the broker should have a non-
disclosure agreement signed prior to releasing any
sensitive details about the business.
Related: Cut Through the Complexity of Selling Your
Company
6. How many qualified buyers do you have?
You might think that a broker who claims to have a large
number of buyers would be a good thing, but this isn’t
necessarily the case. In fact, someone claiming to have
tens of thousands of qualified buyers at his or her
fingertips is questionable.
It would be nearly impossible to build real relationships
and qualify that many buyers. Anyone claiming to have
tens of thousands of buyers more than likely has a
generic email list and doesn’t know the buyers
personally. A broker that specializes in selling
businesses exactly like yours and has solid relationships
with a couple dozen buyers is much more valuable to
you as a seller.
7. Can you just list my business for $1
million?
A good broker knows how to come up with a realistic
valuation and pricing strategy that will lead to a
successful sale. Remember, they don’t get paid unless
they sell your business, so it is in their best interest to
price it correctly with two goals in mind -- to sell it while
also commanding the highest possible price.
If you throw out a high, unrealistic amount and they
agree to your price demand, you will be wasting your
time. An experienced broker isn’t going to waste his or
her time with a listing that isn’t priced correctly -- they
value their time and aren’t going to waste it on a
business that isn’t going to sell.
8. How many listings do you have at the
moment?
Finding out how many listings a broker currently has will
give you a good indication of how much time they can
dedicate to selling your business. A broker with a large
number of listings might be taking on every listing they
can in hopes that they will eventually sell one. This
"throw it against the wall and see what sticks" approach
is not effective at all.
Look for a business brokerage that has between three to
seven active listings per broker -- any more than this will
mean your listing won’t receive the attention required to
sell it. A small, manageable number per broker indicates
that they understand the time and attention each listing
requires.
9. Do you help with sales contract
preparation? Do I need an attorney?
An experienced broker should be able to assist with the
drafting of legal agreements and should have experience
with different ways to structure deals. That being said,
they should also advise that you hire an independent
legal team to review documents before they are signed.
Use your broker for the initial paperwork and structuring
of the transaction, but always have it reviewed by
lawyers before you go to the signing table. With so
many different country and state rules you need to be
certain that all of your T’s are crossed and I’s dotted.
The small legal expense can end up saving you
headaches and money down the road.
Saturday, February 21, 2015
Inside the Mind of Your Buyers
No two customers are the same. To a small-business
owner, that truism means paying close attention to what
motivates people to buy. Customers approach buying
with their own agenda, says George W. Dudley, chairman
of the Behavioral Sciences Research Press, a Dallas,
Texas-based research and development firm focused on
sales productivity. For example, they could be shopping
for specific product features, hoping to build a long-term
relationship with the seller, or seeking a strong
commitment to reliable service.
That means you should tailor your sales technique
based on the primary reason your customer wants to
buy. "We have our preferred selling style and it's one we
have built up with layers over time," says Jeff Tanner,
professor of sales and marketing at the Hankamer
School of Business at Baylor University. "I don't always
see entrepreneurs trying to understand the need from
the buyer's perspective."
Here are six ways to close a sale by focusing on what
motivates your potential customers to buy.
1. If the buyer is detail-oriented, then showcase the
features of your product. Sometimes a customer just
wants the facts and might be turned off if you ask lots
of questions about his needs rather than give him
information, Dudley says. These buyers will be well
informed, having researched your offerings and those of
your competitors. So pay attention to cues. If the
customer's office walls are covered with data charts or
he asks for quantifiable results, chances are he's most
interested in the details of your product or service rather
than the relationship he'll have with you.
Related: How to Kick-Start Your Sales Skills
Carrie Chitsey
Photo Courtesy of 3Seventy Inc.
2. If the buyer doesn't know what he needs, then be an
advisor first. Some customers don't know exactly what
they're looking for. That's what Carrie Chitsey learned
not long after she started 3seventy , an Austin Texas-
based mobile customer-relationship management
company in 2008. Initially, Chitsey concentrated on
selling the technology her company offered, but eight
months into running the business, she realized her
customers often didn't know what they needed. Such
potential buyers require more guidance, particularly with
technologies and other products they're not well versed
in, Dudley says. Now, instead of focusing on a particular
product, Chitsey's company advises customers and
develops service platforms for them. "We were purely
selling technology, and we changed it to more of a needs
analysis," Chitsey says.
3. If the buyer is fixated on the relationship, then make
a personal connection early. Some customers care
about more than the current sale. What matters most is
the long-term connection you establish. That's great for
future business, but it means you'll need strong
interpersonal skills and plenty of time to get to know one
another before closing the sale. "They will be looking for
ways that you show you care," Dudley says. To
demonstrate your willingness to devote time to a
customer, you need to meet face-to-face and get to know
them beyond simply their business needs. What are their
interests? What's their work-life balance like? Be curious
and attentive.
Related: How to Make a Personal Connection with
Customers
4. If the buyer looks for prestige, then tout your A-list
clients. Your reputation with other clients can make or
break some deals. When Jeff Pedowitz, president and
CEO of The Pedowitz Group , an Atlanta Ga.-based
marketing agency, began offering his services to larger
companies, he realized how important his standing with
well-known, reputable clients would be in generating new
business. Mentioning previous clients like Google and
Intel could help him close deals. "If I'm talking to the
CMO of Dell, he is going to want to know we've worked
with other global technology companies," Pedowitz says.
"If we've only worked with mom-and-pops, my ability to
get that account would be greatly diminished."
Testimonials and referrals from A-list clients are also
valuable.
Related: Chris Brogan on Cultivating Visibility
Matrix Medical Billing Founder and CEO, Christian Burris
Photo courtesy of Matrix Marketing Team
5. If the buyer focuses on guarantees, then emphasize
stellar service. For some clients, it's all about the speed
and quality of service. If potential customers ask about
service or warranties upfront, chances are they're very
interested in what will happen after the sale. That's
when policies ensuring fast turnaround times become
especially important. When Christian Burris founded
Matrix Medical Billing in Mesa, Ariz., in 2007, he focused
on the cost savings his service could provide. But six
months later, he noticed customers often cared most
about fast turnaround time. "As I continued to work with
different clients, I found what was important was their
ability to get a hold of us," he says. As a result, Burris
developed a policy that ensured customers would
receive a response within two hours of making a
request.
6. If the buyer gets antsy, then go for the close. Watch
your customers' signals to see if they want fast action. If
you notice impatience when you ask questions, it may
be time to cut to the chase. Closing a sale quickly is
especially appealing to buyers of certain types of
products and services. When dealing with financial
services or insurance, for example, some customers may
be interested in finishing the transaction quickly, Dudley
says. Taking too long to complete the sale, he adds,
might send the signal that you're not confident and are
wasting their time.
How to Make Money As An Expert
Are you an expert? If so, you might be able to profit from
your expertise in a side business apart from your
everyday work. How? By selling products teaching other
people about your area of expertise.
You may have a hobby and find yourself answering
other people's questions about what you do in online
chat rooms. Or you may have developed great ways to
perform services in a particular business. You may be
able to package what you know into an information
product.
It might take the form of traditional books, audio
programs, videos or DVDs, magazines, newsletters,
ebooks, membership websites, teleseminars and
webinars, telecoaching programs, seminars and
conferences, and combinations of these. Businesspeople
and consumers alike need to learn about solutions to
problems they have in a convenient and useful format.
As a money-making business, the advantages can be
numerous. Consider the following:
You can leverage your knowledge.
Whether you're working for someone else or you're a
professional selling your services by the hour or by the
job, you are being paid for what you produce. The
moment you stop producing, you stop getting paid. By
creating your product one time, you provide that
business solution over and over again instead of
performing the service yourself each time.
Everything you need to create a new product is already
inside you -- the information, the secrets, the techniques,
the things you already know. You don't need dozens of
experts or newfangled distribution methods.
Related: How to Startup and Keep Your Day Job
Your products can double as marketing materials.
People say to me, "I'm already a consultant. If I create
an information product that explains my entire process,
won't people just do it themselves and stop hiring me to
do work for them?" Absolutely not.
People who buy your information products are much
more likely to hire you to perform services than other
customers. Being published shows the customer the
complexity of the services and the special ability you
have to perform them, and makes you the obvious
choice should the buyer need additional help with his
business or hobby.
You can work at home.
You won't necessarily need a brick-and-mortar location
for people to buy your products. This means you can
work at home with your computer in a closet or build
your information product on your kitchen table. As long
as you've got a way to create a product and distribute it,
you don't have to be in any particular location for people
to buy it.
You aren't likely to need employees .
The kind of work you may need help with isn't likely to
require full-time employees. You could pay independent
contractors to help maintain a customer database, ship
products, and handle customers' questions. You can
operate a business that makes well above $1 million a
year with little or no staff and have little operating
overhead.
You can start with little money.
You also don't need a lot of equipment, furniture or
computers. It doesn't require special licenses in most
cases, and it doesn't require a special education or
degrees. You will need to:
1. Identify a market of people who are excited
about the information you have
2. Create a product those people want, and
3. Offer it in a persuasive way.
Investing money in marketing when you are launching
increases revenue more quickly. You can take a stair-
step approach by investing a small amount in your first
campaign and reinvesting your revenues into the next.
Some people are earning million-dollar incomes by
selling teaching and training products. Each one started
out like you, with no products and no customers, and
they gave it a shot. This business is scalable -- you can
make it as small or as large as you want.
But don't think this kind of business require little or no
work. Just as you see entrepreneurs working hard in the
mall, in a retail store or restaurant, you should plan on
working hard on your business. It takes a small
investment, but the payoff can be huge -- if you stick
with it and continue to develop your business.
Seven Secrets of Self-Made Multimillionaires
First, understand that you no longer want to be just a
millionaire. You want to become a multimillionaire.
While you may think a million dollars will give you
financial security, it will not. Given the volatility in
economies, governments and financial markets around
the world, it's no longer safe to assume a million dollars
will provide you and your family with true security. In
fact, a Fidelity Investments' study of millionaires last
year found that 42 percent of them don't feel wealthy
and they would need $7.5 million of investable assets to
start feeling rich.
This isn't a how-to on the accumulation of wealth from a
lifetime of saving and pinching pennies. This is about
generating multimillion-dollar wealth and enjoying it
during the creation process. To get started, consider
these seven secrets of multimillionaires.
No. 1: Decide to Be a Multimillionaire -- You first have
to decide you want to be a self-made millionaire. I went
from nothing—no money, just ideas and a lot of hard
work—to create a net worth that probably cannot be
destroyed in my lifetime. The first step was making a
decision and setting a target. Every day for years, I
wrote down this statement: "I am worth over
$100,000,000!"
Related: Seven Rules for Coping with Sales Rejection
No. 2: Get Rid of Poverty Thinking -- There's no
shortage of money on planet Earth, only a shortage of
people who think correctly about it. To become a
millionaire from scratch, you must end the poverty
thinking. I know because I had to. I was raised by a
single mother who did everything possible to put three
boys through school and make ends meets. Many of the
lessons she taught me encouraged a sense of scarcity
and fear: "Eat all your food; there are people starving,"
"Don't waste anything," "Money doesn't grow on trees."
Real wealth and abundance aren't created from such
thinking.
No. 3: Treat it Like a Duty -- Self-made multimillionaires
are motivated not just by money, but by a need for the
marketplace to validate their contributions. While I have
always wanted wealth, I was driven more by my need to
contribute consistent with my potential. Multimillionaires
don't lower their targets when things get tough. Rather,
they raise expectations for themselves because they see
the difference they can make with their families,
company, community and charities.
Related Video: Grant Cardone on Closing the Sale
No. 4: Surround Yourself with Multimillionaires -- I
have been studying wealthy people since I was 10 years
old. I read their stories and see what they went through.
These are my mentors and teachers who inspire me.
You can't learn how to make money from someone who
doesn't have much. Who says, "Money won't make you
happy"? People without money. Who says, "All rich
people are greedy"? People who aren't rich. Wealthy
people don't talk like that. You need to know what people
are doing to create wealth and follow their example:
What do they read? How do they invest? What drives
them? How do they stay motivated and excited?
No. 5: Work Like a Millionaire -- Rich people treat time
differently. They buy it, while poor people sell it. The
wealthy know time is more valuable than money itself,
so they hire people for things they're not good at or
aren't a productive use of their time, such as household
chores. But don't kid yourself that those who hit it big
don't work hard. Financially successful people are
consumed by their hunt for success and work to the
point that they feel they are winning and not just
working.
Related: How to Conquer Your Sales Fears
No. 6: Shift Focus from Spending to Investing -- The
rich don't spend money; they invest. They know the U.S.
tax laws favor investing over spending. You buy a house
and can't write it off. The rich, in contrast, buy an
apartment building that produces cash flow , appreciates
and offers write-offs year after year. You buy cars for
comfort and style. The rich buy cars for their company
that are deductible because they are used to produce
revenue.
No. 7: Create Multiple Flows of Income -- The really
rich never depend on one flow of income but instead
create a number of revenue streams. My first business
had been generating a seven-figure income for years
when I started investing cash in multifamily real estate.
Once my real estate and my consulting business were
churning, I went into a third business developing
software to help retailers improve the customer
experience.
Lastly, you may be surprised to learn that wealthy
people wish you were wealthy, too. It's a mystery to
them why others don't get rich. They know they aren't
special and that wealth is available to anyone who wants
to focus and persist. Rich people want others to be rich
for two reasons: first, so you can buy their products and
services, and second, because they want to hang out
with other rich people. Get rich -- it's American.
Related: Inside the Mind of Your Buyers
How to Become a Millionaire by Age 30
Getting rich and becoming a millionaire is a taboo topic.
Saying it can be done by the age of 30 seems like a
fantasy.
It shouldn’t be taboo and it is possible. At the age of 21,
I got out of college, broke and in debt, and by the time I
was 30, I was a millionaire.
Related: I Had Been Fired and Evicted, and Still Retired
at 27
Here are the 10 steps that will guarantee you will
become a millionaire by 30.
1. Follow the money. In today’s economic environment
you cannot save your way to millionaire status. The first
step is to focus on increasing your income in increments
and repeating that. My income was $3,000 a month and
nine years later it was $20,000 a month. Start following
the money and it will force you to control revenue and
see opportunities.
2. Don’t show off -- show up! I didn’t buy my first
luxury watch or car until my businesses and
investments were producing multiple secure flows of
income. I was still driving a Toyota Camry when I had
become a millionaire. Be known for your work ethic, not
the trinkets that you buy.
3. Save to invest, don’t save to save. The only reason
to save money is to invest it. Put your saved money into
secured, sacred (untouchable) accounts. Never use
these accounts for anything, not even an emergency.
This will force you to continue to follow step one
(increase income). To this day, at least twice a year, I
am broke because I always invest my surpluses into
ventures I cannot access.
4. Avoid debt that doesn’t pay you. Make it a rule that
you never use debt that won’t make you money. I
borrowed money for a car only because I knew it could
increase my income. Rich people use debt to leverage
investments and grow cash flows. Poor people use debt
to buy things that make rich people richer.
5. Treat money like a jealous lover. Millions wish
for financial freedom, but only those that make it a
priority have millions. To get rich and stay rich you will
have to make it a priority. Money is like a jealous lover.
Ignore it and it will ignore you, or worse, it will leave you
for someone who makes it a priority.
Related: LISTEN: How to Make a Million Dollars Online
6. Money doesn’t sleep. Money doesn’t know about
clocks, schedules or holidays, and you shouldn’t either.
Money loves people that have a great work ethic. When I
was 26 years old, I was in retail and the store I worked
at closed at 7 p.m. Most times you could find me there
at 11 p.m. making an extra sale. Never try to be the
smartest or luckiest person -- just make sure you
outwork everyone.
7. Poor makes no sense. I have been poor, and it sucks.
I have had just enough and that sucks almost as bad.
Eliminate any and all ideas that being poor is somehow
OK. Bill Gates has said, "If you’re born poor, it’s not your
mistake. But if you die poor, it is your mistake."
8. Get a millionaire mentor. Most of us were brought up
middle class or poor and then hold ourselves to the
limits and ideas of that group. I have been studying
millionaires to duplicate what they did. Get your own
personal millionaire mentor and study them. Most rich
people are extremely generous with their knowledge and
their resources.
9. Get your money to do the heavy lifting. Investing is
the Holy Grail in becoming a millionaire and you should
make more money off your investments than your work.
If you don’t have surplus money you won’t make
investments. The second company I started required a
$50,000 investment. That company has paid me back
that $50,000 every month for the last 10 years. My third
investment was in real estate, where I started with
$350,000, a large part of my net worth at the time. I still
own that property today and it continues to provide me
with income. Investing is the only reason to do the other
steps, and your money must work for you and do your
heavy lifting.
10. Shoot for $10 million, not $1 million. The single
biggest financial mistake I’ve made was not thinking big
enough. I encourage you to go for more than a million.
There is no shortage of money on this planet, only a
shortage of people thinking big enough.
Apply these 10 steps and they will make you rich. Steer
clear of people that suggest your financial dreams are
born of greed. Avoid get-rich-quick schemes, be ethical,
never give up, and once you make it, be willing to help
others get there too.
Friday, February 20, 2015
Samsung comes slimmer, trendier in Galaxy A Series
5 Ways Dreamers Can Become Doers
Maybe you’ve been called a dreamer your whole life—by
others and by yourself. However, saying you are a
dreamer or a doer is like saying you are good or bad.
Nobody is 100 percent one way or the other, but they
may lean more in one direction. It’s a spectrum, and the
good news is that you can shift the paradigm so you’re
a little more balanced.
Remember that being a doer isn’t necessarily better than
being a dreamer. You need both to succeed.
If you’re really off kilter and have a lot more dreamer
tendencies, it’s time to take action. Here are some of the
easiest, quickest ways to embrace your inner doer so
your dreamer can take a little break. Remember, without
a comprehensive, balanced approach you’ll just keep
going in circles:
1. Write down goals and give them a
deadline.
So, you say you want to write a novel and have it ready
to submit to literary agent or publishing house. That’s
awesome - but how far along are you? What do you
define as “submission ready”? How long can you write
per day, and is it scheduled into your routine just like
work or going to the gym?
Depending on where you are with your draft, choose a
deadline for being submission ready (less than two
years out), or schedule mini-deadlines, such as two
chapters written by month's end. This approach works
for any goal, not just a novel manuscript.
Related: 5 Tips to Never Miss a Deadline
2. Balance wants and needs.
Every time you decide you want to do something, follow
that up with a list of steps you need to take to make it
happen. This might mean saving a certain amount of
money for a special event like your wedding. If you want
to save $10,000 in one year, look at your budget and
figure out what you need to cut to make that happen.
You might also need to pick up more hours at work, a
second job or practice more frugal living.
When I decided for the first time to stop living paycheck
to paycheck I sold the new BMW I was driving
and bought an old Ford Focus. That was one of the best
decisions I've ever made. It allowed me to save an
extra $800 per month. After a year I had almost
$10,000 in the bank, which allowed me to start my
business, Pixloo , that eventually was acquired.
3. Surround yourself with doers.
Birds of a feather certainly flock together, but you
probably have more doer acquaintances and friends
than you realize. Who are your five best friends?
Dreamers feed off of each other, but if you’re around
doers they will inspire you. The staunchest ones aren’t
quick to indulge your dreamer tendencies and will want
to know what your plan is. Remember: you are in charge
of your support network.
I surround myself with some of the best and brightest
people in the world. Some of my friends: Kristy
Rampton, Mitchell Stoker , Murray Newlands , Derek
Andersen , Drew Hendricks , John Boitnott and Lane
Livingston .
Related: What It Takes to Go From Dead Broke to 6
Figures in 6 Months
4. Stop doing what doesn’t work.
You know Einstein’s definition of insanity, so why do you
get stuck in that rut? If you’ve been dreaming about
something but your attempts haven’t led to positive
results, it is time to stop, reassess, figure out what’s
wrong and try a fresh approach. You’ll never get
anywhere making the same mistakes over and over
again.
5. Assume everything will take longer and
cost more.
One of the downsides of being a dreamer is that it is
easy to think of everything as, well, easy during the
dreaming stage. However, things have a tendency to
take more money and time than you imagine. When
writing down your action plan, increase time and money
by ten percent and give yourself a buffer. The worst
case scenario is you’ll succeed with time and money left
over.
Don’t let your drive to be a doer brush your dreaming
tendencies totally under the rug. It’s your source of
inspiration, creativity. and means of reaching for the
stars.
5 Reasons Why Being Unrealistic Is a Good Strategy
Business is about numbers, statistics and hard facts, and
entrepreneurs must have a strong grip on reality to do
well. But departing from reality can ironically lead to
greatness.
Here are five reasons to leave reality, think outside the
box, and be unrealistic:
1. The only constant in life is change.
Especially in today’s digital world, business changes at a
rapid pace. Even the most deep-rooted industries can
change overnight with a new, unexpected idea. The most
successful ideas seem ridiculous and implausible at
first. After all, obvious ideas have already been created.
Related: 5 Ways Dreamers Can Become Doers
Think about Facebook. In the golden age of MySpace,
does another social network, created by a student
exclusively for a select group of students, sound like a
successful idea?
Instagram, a photo-sharing social network that offers
filters, was bought by Facebook for $1 billion only two
years after its launch among a sea of other social
networks and apps.
Uber disrupted the long-established taxi and
transportation industry in just a few years and is now
valued at more than $40 billion . In a similar fashion,
Airbnb, the social-networking hotel chain, is expected to
outgrow the world’s largest traditional hotel chains in
terms of value and bookings.
In each of these seemingly unlikely cases, the startups
tackled well-established industries and competitors with
new ideas that brought big results. Thinking
unrealistically can shake up old ideas and businesses,
invite innovation and create a lasting impact.
2. Reality is bred from thought.
It only takes one thought to change actions,
behaviors and outcomes. When an entrepreneur commits
to an idea, and are convinced he or she will accomplish
something, he or she eventually will. No matter how
unrealistic an idea seems, it can become reality if the
mind is resolute about realizing it.
Related: Borrow These 8 Lessons From a New Entrant
in the Sharing Economy
3. The most successful people are often
the most unlikely.
Beethoven was deaf. Ray Charles was blind. Innovators
who think unrealistically, despite potential roadblocks,
are in the end perhaps the most likely to achieve
greatness.
4. Unrealistic ideas create motivation.
Unrealistic ideas usually stem from, or center around,
passions. With passion and determination to achieve the
impossible, the team adopts an “us against the world”
mentality, and will work to make the unrealistic goal a
reality.
5. Technology changes everything.
Reality is constantly changing in the technology
revolution, and the impossible is becoming possible.
Unrealistic thinkers recognize this rate of change and
think toward the future.
Products, ideas and services that are now a part of
everyday life were unrealistic only a decade ago. The
growth of smartphones, social media, apps and the
ability to customize and personalize nearly everything
were once unrealistic ideas.
Thinking ahead can help entrepreneurs become industry
leaders, creating ideas that will address potential
problems and satisfy future wants and needs.
What’s holding you back from going for your unrealistic
ideas?
10 Reasons You Were Not Called After The Interview
Sometimes job hunting is all about you. Sometimes job hunting is
all about them. Don’t take every rejection personally. Here’s
why.
You do not need to be a rocket scientist to realize that job hunting
in Nigeria is painful, tedious, frustrating and most at times
emotionally devastating. But not all rejection should be taken
personally. In fact, there are many reasons you don’t get the job–
and some have nothing to do with you and your skills. Here are
10.
1. Someone Had Friends In High Places
We are talking about Nigeria. Even when you are over qualified
for the job,aced the interview with flying colors, impressed the
interviewers with all you got; all it takes is a phone call and the
job goes to the least qualified person for the job. Don’t take it
personally, nepotism is the bane of every job seeker in Nigeria.
Some companies have policies that a certain number of people
have to be interviewed for each position (or that the job has to be
advertised publicly) — regardless of the fact that the firm has
already decided whom to hire.
You got dagged in to check off the proper boxes on the form, but
never had a chance of getting the job.
2. The Job Disappeared
You’d think that when a company posts a job, sources résumés,
and conducts interviews, the company would know it wants to
hire someone. But that’s not always true.
Sometimes there are disagreements over which department gets
the head count. Sometimes funding is moved to somewhere else.
Sometimes the company just decides not to fill the job.
Nigerian Immigration Service (NIS), don’t sweat it, we are
obviously not talking to you.
3. You’ve Been Conned
Some people in Nigeria make a living from snipping the small
amount of money that job seekers have. How heartless!
You weren’t called because the money you were asked to pay for
in order to process the interview process was used to fund
someone’s account. Accept our deepest sympathy for your
money lost.
As a rule, no genuine interviewer will ask a dime from you if they
are really interested in giving you a job.
Once again, Nigerian Immigration Service (NIS) stop looking at
us.
4. The Recruiter Is A Weird Fellow
Recruiters are funny people. Most are awesome, but some will
reject you because you have scuffs on your shoes, or because
they didnt like your face. We wish this was a joke.
Sometimes you might be asked a ridiculous question that has
serves no purpose but to see how creative you can be or how
you respond to difficult situations. You really do not want to hear
some of the weird questions that some recruiters ask during job
interviews.
Most recruiters aren’t horrible like these are, but some do have
their games.
5. You’re Not A Good Cultural Fit.
As much as we like to think it should be all about the skills, it’s
not. Different cultures are better for different people.
Nigeria is a country where we find it difficult to alienate tribe and
religion from our day to day activities. You might rejected for a
job because of your tribe, age, state of origin or religion.
A lady might be rejected because she wore trousers to a job
interview, why? The company does not allow trousers at their
place of work. You might be rejected for wearing two earring and
sometime for having two ear holes.
Skills? You conquered that. Cultural fit? No, you didnt conquer
that
6. You Can’t Agree On Salary.
Theoretically, salaries should be based on market rates and
nothing more.
In Nigeria, there’s a ton of stuff that goes into a salary. A
graduate could be made to endure the military training of the
Navy SEALs and after such rigorous process you will be offered
N20, 000 as salary for a month. May you never encounter such
people in your job seeking experience.
Even when some companies are reasonable, the prospective
worker might be flat out greedy. If you know you’re looking for
something higher than what the company can offer, then don’t
proceed with the interview process.
Why waste everyone’s time?
7. Your (bad) Reputation Preceded You.
Often people think they can burn bridges at old jobs, because
they’ve moved on to newer and better. The problem is, the world
is small, and the person you told to go f**k himself is the your
current interviewer.
You didn’t even know his name, but he surely knows yours, and
now you’re not hired.
8. You Blew The Interview.
Sometimes interviews simply go badly. It wasn’t that you did
anything wrong–you didn’t answer your cell phone, pick your
nose, or insult the interviewer–you just didn’t rock it.
Sometimes you have bad days.
9. There Was Someone Better Than You.
Often people identify themselves as perfect for the job, but you
never get to vet the other candidates.
Your fitting all the listed qualifications doesn’t mean someone
else isn’t better than you are.
10. Your Village Witches Are Dancing Sekeem On Your Head.
We are Nigerians, we are highly religious and we blame
everything on religion. So yes, your village witches made you to
fail the job interview.
Avoid These 5 Common Office Snack Foods That Could Harm Your Health
Eating right is critical to your performance, so it’s really
important to make the right food choices throughout the
day.
Although some offices provide free snacks and lunches
for their employees, you need to evaluate whether those
choices will enhance or sabotage your health. Just
because it’s free doesn’t mean you should eat it!
Related: Nestle Candy Products Will Get Slightly Less
Junky This Year
Here are the top five foods to keep out of your desk
drawer for good:
1. Microwave popcorn
When it comes to microwave popcorn, everything from
the bag, the oil and the corn is bad news. Don’t believe
for a second that the delicious popcorn smell wafting
through your office signals a good thing!
Food companies might not want to publicize all the
details about “artificial flavors,” but some emit possibly
toxic fumes. The flavoring ingredient diacetyl , which
some major manufacturers have eliminated from their
products, has been linked to research showing lung
disease among employees at popcorn and flavoring
production facilities.
We don’t know what the manufacturers have substituted
diacetyl with and there is the possibility that some
brands still use it. That’s because “artificial flavors” are
a secret concoction of ingredients that are not required
to be disclosed, so you don’t know what’s really in them.
A possible substitute for diacetyl is 2,3-pentanedione,
which is linked to lung damage in animal studies.
The bottom line is, you don’t know what you are
ingesting when it comes to “artificial flavors,” so it’s a
good idea to avoid them.
Some brands still use partially hydrogenated soybean oil,
a major source of artificial trans fat that is associated
with up to 20,000 heart attacks and 7,000 deaths a year,
according to the CDC. The preservative propyl gallate is
on the Environmental Working Group’s list of the worst
food additives because it’s associated with tumors in
rats and estrogenic activity. The bag may be lined with
perfluorooctanoic acid (PFOA), a chemical linked to
cancer and the popcorn itself may contain harmful
pesticide residues.
What to eat instead: Try homemade “Superfood
Popcorn” with only three amazing ingredients: coconut
oil, hemp seeds and red palm oil. Get the recipe here
and put it in a reusable bag to bring to the office.
2. Doughnuts
No one thinks doughnuts are healthy, but this treat is
super popular at meetings and I used to get excited
when someone brought these in.
That was until I found out that commercially made
doughnuts contain a lot more than just carbs and fat --
they’re loaded with harmful additives too. Donuts may
contain partially hydrogenated oils (PHO), an ingredient
the FDA is reviewing the safety of, along with high
fructose corn syrup (HFCS), a slew of preservatives,
emulsifiers, fake flavors and colors.
Some doughnuts even contain butylated hydroxyanisole
(BHA), a preservative that’s linked to cancer . It’s not
worth sabotaging your health with these unnecessary
ingredients.
What to eat instead: Bring trail mix (made with raw nuts,
coconut and dried fruit) or fresh fruit to your meetings
so you don’t feel tempted if a donut box arrives. If you
want to treat your co-workers, bring in some delicious
homemade cookies such as these .
Related: Your Poor Eating Habits Are Hurting Business
3. Diet soda
A calorie isn’t a calorie when it’s made up of additives
that affect how much you eat and the way your body
metabolizes those chemicals . Low calorie beverages will
not fight obesity,and if anything, the reliance on
chemical-filled drinks just perpetuates the problem.
Despite what you might have heard, artificial sweeteners
have been shown to stimulate your appetite , increase
sugar cravings , and thereby promote fat storage and
weight gain.
What to eat instead: Brew some energizing green tea or
sip on lemon water at your desk. If you crave the fizz,
try packing some of my Real Ginger Ale or an organic
store-bought Kombucha.
4. Supermarket birthday cakes
The ingredient list on most store-bought cakes is so long
I literally have trouble keeping count – but I’ve seen
close to 80 ingredients !
The majority of the ingredients are fake chemical fillers
and substances that are obviously not real food, and it’s
nearly impossible to find one without artificial colors and
partially hydrogenated oils. Most cake manufacturers
use no real cane sugar at all and the whole cake is
sweetened with genetically modified sugar beets (which
will just say “sugar” in the ingredients) or high fructose
corn syrup. Some cakes also contain paraben
ingredients, such as propyl paraben, which is believed to
be an endocrine disruptor linked to cancer.
What to eat instead: It’s ridiculously easy to make a
cake from scratch, decorating it with organic candies,
dried fruit, chocolate sauce and/or natural food colorings
yourself. Get my recipe here.
5. Processed frozen lunch entrees
Just because they’re quick and low calorie doesn’t mean
you should eat it. The vast majority of these meals
contain a shocking number of potentially harmful
additives, and I’ve seen some with well over 40
ingredients!
Common ingredients in these meals are sodium
phosphate , partially hydrogenated oil , high fructose corn
syrup and caramel coloring . None of the ingredients are
organic or non-GMO verified and it's full of sugar and
corn-derived ingredients.
What to eat instead: When you cook dinner, make it a
point to make enough so that you have leftovers. Pack it
up for lunch the next day and freeze the rest in lunch-
size portions to use later.