Your Mindset Matters!

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We all know someone who had big dreams that unfortunately did not come to fruition. There is nothing wrong with dreaming, in fact, it’s good to dream. But dreaming without action doesn’t make a dream come true. Behind every award, published book, completed marathon, and CEO, is a lot of old-fashioned, hard work and positive mindset.

Writer, marketer, and entrepreneur Matthew Royse believes a positive mindset is paramount to success. He emphasizes this simple, yet critical factor in his article, “50 One-Sentence Life Lessons.” These succinct, yet impactful, lessons are powerful reminders amidst the chaos of life. (I recommend keeping a copy close by to re-read often.)

10 favorites from the 50 Royse lessons:

  1. You are responsible for your own happiness.
  2. Life isn’t as long as you think.
  3. What you do today reflects who you’ll become tomorrow.
  4. Befriend fear, don’t fight it.
  5. Your life is a reflection of your perspective.
  6. There will always be skeptics of what you do.
  7. The difference between success and failure is persistence.
  8. You can’t say “yes” to everyone.
  9. The biggest risk is not taking one.
  10. Failure is your greatest teacher.

The good news is it’s not too late to change the way you think. It takes motivation and practice. There are endless methods and tools to help you transform your thought process. Meditation, mindfulness, exercise, vitamin D, nutritious eating, and support from others (both formal and informal) are all touted by people who thrive. There are also specific programs that teach people to recognize negative thoughts, stop, and rethink from a new perspective.

Minds are malleable, and are made to be used and improved. It’s never too late to change your mindset, embrace your challenges, and shift your outlook on life.

Forget 1 Million, Focus on 1,000 for Success

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During my time at college, I had a friend who was obsessed with the idea of making $1 million. How hard could it be, he wondered, to take $1 from each of 1 million people? “Look at the guy who invented the pet rock. He became a millionaire selling. . . rocks!” my friend observed.

Creating the next big fad was his plan, but he quickly found it’s not easy to duplicate the success of the pet rock. Creating a product that could command the attention of 1 million people is a challenging dream to chase.

I recalled my friend’s ambitious plan to gain 1 million customers while recently reading author Kevin Kelly’s essay entitled “1,000 True Fans.” The main point of the essay is that most of us do not need 1 million customers; 1,000 will do nicely.

Defining a “True Fan“

Kelly’s “1,000 true fans” are people who would do almost anything to help their favorite businesses prosper. He gives the examples of a singer whose devotees will drive 200 miles to hear her perform and a writer whose fans buy hardback, paperback and audio versions of his latest book.

We would all like to have diehard fans like those, but they are difficult to attract. That’s especially true if your business provides a product or service that is not unique – like state-mandated auto emissions tests, for instance. Nobody is going to travel 200 miles to get their emissions test from you, except possibly your mother.

On the other hand, I have clients like dentists and property managers who are very highly regarded as regional experts. Their top clients, or fans if you will, are loyal to the point of sending them gifts and personalized Christmas cards. I have to imagine their fans would follow them through a change of office locations or the occasional fee increase.

Why 1,000?

Two premises of Kelly’s “1,000 True Fans” are that the entrepreneur can earn, on average, $100 profit from each true fan per year and that an entrepreneur can make a living by earning, on average, $100 per year from each of 1,000 customers. That’s $100,000 per year, but the $100,000 must be free and clear of all operating costs. In other words, it is net profit.

Why is 1,000 the magic number? That is the question I asked myself while reading “1,000 True Fans.” I know dry cleaning businesses whose owners make their livings from customer bases smaller than 1,000. I can imagine Kelly’s premises being valid for a writer or a singer without a band. But for most of my clients’ businesses, some adjustments would have to be made.

As Kelly explains: “The number 1,000 is not absolute. Its significance is in its rough order of magnitude — three orders less than a million.” So, 1,000 is not posited as the be all and end all. It’s an approximation far closer to the mark than 1 million customers.

For an entrepreneurial professional with employees, the business probably needs to clear $100,000 per professional (maybe more depending on the region). And, the 1,000 customers likely needs to be expanded to accommodate a practice of several professionals.

The key point is that attaining 1,000 customers is an achievable goal. You can grow your business to that size by adding just a few accounts each week. And, if 1,000 is achievable, so is 2,000. It just takes more time. . . and an unwavering commitment to keeping customers happy.

Here’s to your 1,000!

Mike, The Numbers Coach

Time: The Ultimate Finite Resource

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I remember reading a book titled “Death by Meeting” by Patrick Lencioni.  The focus was on silos, politics, and turf wars in a business.  I recently ran across an article suggesting that meetings should not last any longer than 30 minutes.  I am sure some who are reading this can relate to being in a meeting that went on and on and on with no clear action and nothing done after the meeting.

Maybe implement compressed time for business meetings will remove this poor habit.  As Parkinson’s law indicates work expands to fill the time available, so if you don’t set a limit to the meeting, it can drone on way too long.

Why 30 minutes?  There is no scientific study, however, for me personally I see a higher level of intensity by participants because they know 30 minutes is the limit.  Its seems people listen more intently when things move faster keeping us engaged.  People tend to come prepared and ready to go.  And if not, they will the next time.

Give it a try.  Implement these three tactics to make the 30-minute meeting more powerful.

  1. Tell everyone to read any materials before the meeting.  Ask an important question: “what outcome do we want?”
  2. Decide on the one thing to focus on in the meeting that will make a difference and stay on it for the 30 minutes.
  3. It’s what happens after the meeting that will tell you if the meeting was good or not.  Act with a summary and clarity on the action steps and accountability.

How are your meetings?

Here’s to having better meetings!

Mike

Make Your Compliments Count

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One of the best ways to brighten up someone’s day is to give them a compliment.  

However, not all compliments are equal.  In her article “The Secret to Giving a Compliment that Makes People Glow” by Mary Halton, she describes the 3 ingredients for a great compliment.

  • Use their name
    • Using someone’s name says you value them as a person
  • Compliment something specific
    • Instead of using a generic statement like “Good job,” be specific and say something like “Your singing took me back to my childhood when my family would sing around the campfire.”
  • Don’t praise and run out
    • After your compliment, ask a follow up question such as why they chose to sing that particular song

Compliments can go a long way in building your relationships, so make them count.

Here’s to making it count!

Mike

Simple but Powerful Rules for Business

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Charles “Red” Scott was a President and CEO of several public companies over his career, including Intermark and then Fuqua Industries.  His business philosophy for success in running a business resonates with me, seems timeless, and cuts across all industries.  While simple on the surface, these rules and principles remind us as business leaders of what is important. 

Below are some of Red Scott’s “rules” that I think you will also find are key to business success:

  • Don’t run out of cash. . . no matter what!
  • No surprises: Give fair warning when you hear bad news
  • Never compromise quality for price
  • Plan strategy and set objectives before fixing structure
  • Be careful of a “quick fix”
  • “About right” now is better than “exactly wrong” later
  • Creativity is great. . . but not in accounting
  • Always ask “What if?”
  • Hire smart rather than manage tough
  • Do the “right thing” rather than do “things right”
  • Invest in business with a low cost to exit
  • Hire for attitude, train for skills
  • Be careful: A little success can create a whole lot of overhead
  • “I will” beats IQ every time!

These are just a few business tips that can help you pull through all your circumstances.

To your business health!
Mike

Buffet’s Advice for Financial Success

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The “Oracle of Omaha” has created an impressive following of people and his investing results have proven the test of time.  Below are 10 simple bits of wisdom that I believe are timeless:

Never lose money.  Buffet’s rule # 1 is to not lose money.  And his rule #2 is to remember rule #1.  Keep in mind if you lose 50% of your investment, then it takes 100% return to get back to even.

Get high value for low price.  What he means is value is what you pay for.  Make sure that you are paying the right price for the value in the product, business or investment that you are buying.

Build healthy money habits.  Habits are what drive our behavior.  It’s been said that finance is 80% behavior and 20% math.  If we don’t change poor behaviors with our wallet then we can’t expect to find success with money or building a business.

Avoid debt and, more specifically, avoid credit card debt.  Credit card interest rates can be as high as 18% and more.  If you have to roll over your credit card balance regularly, then you can’t afford spending on it.  In effect, you are trading your future for your present satisfaction.

Keep cash on hand.  Come up with what your minimum cash balance needs to be.  Is it 3 months or 6 months of expenses?  “Cash is to a business as oxygen is to an individual: Never think about it when it is present, the only thing in mind when it is absent,” said Buffet.

Invest in yourself.  Your biggest income producing asset is yourself.  Improve your skills to make yourself more valuable to the market.  Unlike other assets and investments, “Nobody can tax it away and they can’t steal it away,” said Buffet.

Learn about how to manage money as a part of the investment in yourself.  Not everyone enjoys this subject, however, there are simple methods to follow that help you win with money.  Spend less than you make. . . save 15% into a low cost index mutual fund. . . it’s not how much you make, it’s how much you decide to spend.

Trust a low cost index fund. Expenses matter when it comes to returns on your investments.  Consistently adding to your investments each month or quarter exercises an important “money muscle.”

Give back on a regular basis.  Giving of our “time, talents, and treasure” to our community and nonprofits is a natural law of human nature where we want to help others in need.  Giving produces psychic benefits for the giver and it helps society move forward.

Invest for the long term.  Investing not only with dollars but in ourselves is a long term game.  Building true financial security takes time.  Buffet said, “someone’s sitting in the shade today because someone planted a tree a long time ago.”

Together these pieces of advice can help take us on the journey to financial security.  The advice is simple and timeless.

Here’s to reaching your financial goals! Mike

Are Successful People Just Lucky?

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Have you ever heard of the “Marshmallow Experiment?”  This famous research experiment from the early 1970s involved children who were offered a deal:  The child was given a marshmallow and told that if they didn’t eat the marshmallow while the researcher was away, the child would be rewarded with a second marshmallow.  Some children ate the marshmallow right away while others waited for the second one.  What’s the significance of this experiment, you may ask?

The researchers tracked down the participants as adults and noticed something interesting.  The children who delayed gratification of eating the first marshmallow did better with SAT scores, stress responses, avoided substance abuse, and had better social skills, as reported by their parents.  The researchers then followed the participants for 40 years and continually noticed that the ability to delay gratification was one key aspect for their success in life.

This behavior plays out in business as well.  The decisions we make today impact what we can do in the future.  Delaying gratification with purchases and initiatives could be the difference between success and failure. 

Researchers at the University of Rochester duplicated the experiment years later with a twist:  They split the children into two groups. One group was exposed to unreliable experiences; hence these children were offered a small box of crayons with the incentive of getting a bigger box later that would never come.  The second group was given reliable experiences, and when offered a bigger box of crayons they got one.

Well, you could expect what would happen with the children with unreliable experiences when they ran the Marshmallow Experiment on them:  They ate the marshmallow right away because they didn’t trust the researcher.  Does that sound like a situation you may have had at your company?  Promise something, but you didn’t deliver?

If you can delay gratification and build a discipline for this into running your business, then one of the keys to success is already in your toolbox.  No luck is required.

Cheers to your ability to succeed with delayed gratification!

Mike

7 Little Strategies that Equal Big Success

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It is often practicing the simple habits that result in running a successful business. There are proven leadership methods that can make the difference between a growing and profitable business that stays afloat, and one that sinks. You’ve heard it before: Work smarter, not harder.

Here are 7 tips to do just that in this new year:

  1. Watch cash flow. Poor finances can ruin any business, so it is imperative that a small business owner understands how to keep the cash flow steady, spend intelligently, and grow the business intentionally. Regular cash flow projections are an important ingredient to ensure you don’t run out of cash.
  2. Follow the leader. It’s key to learn from people who have achieved goals like yours. It’s lonely at the top, but having a mentor, or being in a business leader program, are smart and simple options.
  3. Track spending! It’s easy to go overboard on certain areas of your business, such as marketing. Pay close attention and track spending to determine what spend activities work and why.
  4. Know your strengths and hire for your weaknesses. Hire people who can complement your skills and help fill in your blind spots. Think efficient use of energy and resources.
  5. Take a minute to plan. Strategizing and planning can oftentimes be easier said than done. However, spending time on this activity up front will lead to greater successes and less risk in the long run. Successful companies have vision and execution.
  6. Get in the right mindset. Having confidence in your ability and knowing you can achieve success matters. Don’t underestimate your subconscious’ s ability to impact goals. Visualization techniques and the use of mantras you can live by can drive that impact. “Slow is smooth, and smooth is fast” is a mantra used by the Navy SEALS when they are under pressure situations.
  7. Delegate, delegate, delegate. There are people who can do it as well, if not better, than you can. Hiring the right people and clearly outlining their responsibilities will make your job easier and your company more effective. Micromanaging can be detrimental to your success.

Some successes in life are owed to good luck and good timing, but the majority are the result of good leadership, efficient use of resources, and seeing opportunities to take. The strategic habits we implement in our business are an important part of its success.

Small Changes Lead to Big Productivity Results

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Some people seem to have the golden secret to being highly productive. They may be naturally motivated and organized, but in truth, everyone has the power to increase their productivity. It’s all about habits. There are small, very feasible changes that when done repeatedly become habits. Even people who seem inflexible and stuck in their ways can learn to be productive.

We’ve highlighted a few of our favorite productivity tips below:

  • Prioritize. It’s fine to write a 5-page to-do list, but make sure to separate the “must happen today” list from the “must happen this week/month/year” list. There’s also the “would be nice if it ever happens” list. You get the picture. There is a saying about the “power of three” which I use for my daily work.  Listing only three priorities on my daily “to do” list in order of priority.  I start on the first priority on the list, and I don’t go to the second one until the first one is completed.
  • Give yourself deadlines. Deadlines are powerful psychological tools. If you are expected to give a presentation on Friday, you would get everything done, even if you cram it in at the last minute, right? For most people, simply having the intention to do something “soon” or “eventually” means there’s a good chance it won’t get done at all. The more time you must do something, the longer it will take you to do it.  Set a date and stick to it!
  • Make work time work time. Have a specific work area and everything ready to go when it’s work time. Keep distractions at a minimum. Stay focused and avoid podcasts, TV, social media, online shopping, email, and unplanned phone calls. Turn off all unnecessary notifications and alarms. You’ll be amazed at how your production skyrockets. Find the time of the day you feel best suits your energy levels and block off a 3-4-hour chunk of time to do your deep work.
  • Keep your free time free. Time is not renewable, so honor yours. It’s quite easy to cram too much into a day and feel guilty when you don’t get everything done. It’s ok to say no to someone if it is not a priority that fits into your day. Resist the temptation to rearrange your schedule to make room for more obligations. As Derek Sivers, founder of CDBaby.com, says about making commitments:  “If it is not a heck yeah, it is a no!”
  • Take a walk. It’s not new news that physical activity is good for you. Add “increased productivity” to the list of walking benefits. Walks are refreshing and they provide much needed breaks, fresh air, and renewed energy. Don’t think you have time for it? A 5-10 minute walk will do the body (and mind) good.
  • Drink water. This is another one that we hear all the time. That’s because your body and your mind need enough water (2.5 liters/day for women and 3.5 liters/day for men) to operate at 100%. Dehydration impacts cognitive and motor functions, skin, mood, and more.
  • Take regular breaks. Everyone is different so be mindful of what you need for optimal productivity. Some people do best by working 25 minutes followed by a 5-minute break (pomodoro technique), while others do better work for an hour then taking a 10-minute break. These mini breaks are powerful when used correctly and can drastically improve a person’s ability to focus. Feel free to set a timer if it helps you to stay on track!
  • Prepare the night before. A day that begins by scrambling to find matching shoes, a coat, lunch, medication, your laptop, workout clothes, etc., is not fun. In fact, it’s stressful. I don’t regret waking up feeling prepared for the day ahead. So go ahead and make that list ahead of time.

While this list of tips might seem simple, implementing these small changes into your daily schedule can lead to big results. You will feel more productive in your work time, and you might even feel as if you have more free time.

7 Traits of Successful Leaders

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All business leaders are not alike. There are many different leadership styles, all of which can be successful. However, if you take a handful of department heads with unique management styles, and you will see very similar traits in all of them.

The seven traits that are common to most successful business leaders include the following:

  1. Authenticity.  People can sense authenticity and authenticity is directly related to trust. Employees are much more likely to work hard for someone who is the “real thing.” True leaders stay true to their values regardless of the pressure that they are under to act otherwise. They are honest with themselves and others, and take responsibility for their mistakes.
  2. Resilience.  There will always be challenges in work and home life — what’s important is how one responds to the challenges. A great leader not only faces challenges head on, but also grows stronger as a result.
  3. Ability to delegate. Delegating is difficult for many leaders, but it’s important. Leaders who are good at delegating show employees that they have trust in them and have confidence in them. Delegating promotes learning and growth in employees.
  4. Empathy.  Empathy can make the difference between good and bad leaders. Being able to put yourself in someone else’s place is a skill that many managers or top executives lack. A leader who shows empathy toward direct reports is more likely to be viewed as a better performer by “higher ups.” People will work hard for and appreciate an empathetic leader who demonstrates compassion.
  5. Excellent communication.  This one seems obvious but can sometimes be overlooked. This means communicating with a variety of people in a variety of ways, including social media, text, phone calls, Zoom meetings, email and face-to-face. Don’t forget that active listening is just as important as talking. Listening to concerns, asking for feedback, and showing appreciation all play vital roles in how a leader is viewed. Communication is also not always verbal, but seeing non-verbal cues is a quality in an effective leader. The quality of excellent communication directly correlates to the success of a business.
  6. Honesty. It’s often hard to speak up in the workplace, especially to executives, but it’s a trait that is essential to a thriving business. It’s easy for resentment to build and gossip to begin when employees don’t feel comfortable sharing ideas and opinions. Good leaders have the courage to be honest and demonstrate the ability to discuss difficult topics. Leaders intentionally create an environment that encourages employees to do the same.
  7. Respectful.  People who feel like their boss respects them work much harder to meet goals than those who don’t. Respect motivates people to trust others and to work hard to meet and exceed expectations. Employees who have the respect of a manager, also have a sense of purpose and feel valued by their company. A lack of respect can oftentimes lead to a lack of motivation and mediocre work.

What traits are your strengths?  Where are you not as strong?  Having these traits as part of your leadership team will help set the tone at your business and its course of success.

Mastermind is the Name of the Game

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What is a mastermind group? This timeless concept is explained by Napoleon Hill in his books published in the 1920s and ’30s, The Law of Success and Think and Grow Rich.

Some mastermind groups are informal with 2-3 people and other groups are more formally organized, such as organizations like Vistage (www.Vistage.com), YPO (www.YPO.org), or View From the Top (www.viewfromthetop.com).   More formal mastermind groups consist of approximately 8-12 peers who meet on a regular basis (weekly or monthly) either in-person or via Zoom. Members pay monthly dues, and their fee often covers in-person speaker(s), activities, and/or retreats.

CEO & Co-Founder of Sustainable Investment Group (www.sigearth.com), Charlie Chichetti, has belonged to a 10-person mastermind group, Iron Sharpens Iron (“ISI”) as part of the View From the Top, for the past six years. Chichetti says the strength of a group lies in the diverse personal and business experiences of its members. Participants share best practices and hold each other accountable for tackling problems and meeting goals. Each member takes a turn in the “hot seat,” while the rest of the group brainstorms strategies and solutions to aid them in facing their challenges head on. A successful mastermind group enhances its members’ business AND personal lives.

Make no mistake, these formal groups like Vistage and ISI are not laid-back clubs.  Attendance and participation are  required. Members are expected to present problems, as well as provide feedback. The group devises a method of holding members accountable for following through, which keeps everyone focused and on track.

Charlie Chichetti offers the following guidelines to create an efficient and productive mastermind group:

  • Meetings are not the time to multi-task; they should be structured and begin and end on time.
  • Be present – both physically and mentally.
  • Members should come with a giving—as opposed to taking—mindset.
  • Include a mix of members, including “solopreneurs,” people from small- to large-size businesses and from different industries.

Trace Blackmore, owner of Blackmore Enterprises (www.blackmore-enterprises.com), has been part of a mastermind group for the past 10 years. He currently facilitates a mastermind group, Rising Tide (www.scalinguph2o.com/mastermind), and is a firm believer that learning from others’ mistakes and successes is one of the best tools for good decision making. Like Chichetti, Blackmore contends that the structure of mastermind groups is key to their success. He provided the following guidance to anyone who is part of a mastermind group, or is considering joining one:

  • All devices should be on silent mode during the meetings.
  • Progress is expected every week and a group may choose to offer consequences for members who come unprepared.
  • Before deciding to join a mastermind group, be sure you have the time, energy, and desire to make it a priority.
  • Each meeting should start by celebrating wins. Support and accolades are integral to keeping members motivated.
  • Ask questions! Questions help people think and look at circumstances from different perspectives and keep people from jumping to conclusions until they have all the information.
  • Members should be honest, while doing so in a tactful way. A book titled Fierce Conversations by Susan Scott is a good resource.
  • Individual goals and plans should be clearly verbalized to the group and should include deadlines for completion. This keeps people focused and on track.
  • What happens in mastermind stays in mastermind. Like all of life, business and personal events overlap, and problems and solutions are often of a personal nature.

Now you are officially aware of the who, what, when, where, and why and of mastermind groups. The benefits— accountability, strategy development, and healthy business and personal habits—are invaluable. Perhaps you will think it over and decide that membership is right for you.

As a member of a mastermind group for 10+ years now, I’m happy to advise you if you are thinking of joining one.   Feel free to contact me to discuss.

Prioritization: The Foremost Rockefeller Habit

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One of the best ways to improve your work productivity is to emulate the habits of someone highly successful. John D. Rockefeller, who founded the Standard Oil Company in 1870 and ran it until 1897, is one of the true titans of American business. And so, the book Mastering the Rockefeller Habits by Verne Harnish made its way onto my reading list.

As the book documents, Rockefeller’s approach to running a growing business was really quite simple. He identified three underlying habits that he considered essential to good business management:

  1. Setting priorities for the organization.
  2. Collecting and analyzing sufficient management data.
  3. Establishing an effective organizational rhythm.

Of the three key habits, setting priorities is first, and arguably the most important.

Setting Company Priorities

Rockefeller developed a list of the Top 5 priorities of his business for the upcoming year and the next quarter. He also ranked those top priorities in order and set a clear Top 1 priority from among his Top 5. He communicated these priorities throughout his company and encouraged employees to set personal priorities that aligned with and supported the company’s priorities.

It seems to be common sense to solve the problem at hand before moving on to another challenge, but not every team or employee has the discipline to follow through to completion of a difficult task. Rockefeller’s managers provided the discipline needed to make sure the top priority was completed before the second priority was undertaken.

As productivity tools go, Rockefeller’s Top 5 priorities list is one of the most widely used in American business history. As an example of the effectiveness of the tool and how soon it came to be appreciated by others, Harnish relates the story of a management consultant who was summoned to the office of Charles Schwab in the early 1900s. At the time, Schwab was the CEO of Bethlehem Steel, and he was looking for ideas to improve the business.

The consultant told Schwab how he could improve Bethlehem Steel’s bottom line by using a simple productivity tool. It was Rockefeller’s Top 5 priorities list.

The consultant told Schwab to start each day by writing down the top 5 things he wanted to accomplish for the company’s benefit. They had to be prioritized from 1 to 5, with 1 being the objective likely to have the greatest impact on the business.

Schwab was instructed to work only on priority 1 until it was completed. If it was not accomplished by day’s end, it remained the top priority the next day. Under no circumstance could he move to priority 2 without completing priority 1.

The consultant told Schwab to implement this principle and afterwards pay him whatever he felt the advice was worth. If it didn’t work, Schwab owed him nothing. A period of time elapsed and one day the consultant received a check in the mail from Mr. Schwab. The check was written for $25,000, which was a great deal of money in those days – over $600,000 in today’s terms. That’s how beneficial the borrowed productivity tool was to Bethlehem Steel, which became a world leader in its industry.

Rockefeller knew, and Schwab learned, this: Management of any business, large or small, needs to clearly establish and communicate to employees the most important priorities that will help the company make progress towards its vision.

How well have you identified and articulated to employees your company’s priorities? If you’re not sure, contact Trillium Financial and we’ll help you find the answer.