Is it possible that just “thinking rich” can make you rich?

Now I’m not sure that I’m the best person to ask that question to. While I am fortunate enough to have no real money worries, I wouldn’t exactly call myself rich.However I do have some associates that have been able to literally go from rags to riches in just a few years. How did they do it? Inside tips on the stock market? Working 90 hour weeks? Discovering a legal recreational drug? Not quite.For example take my friend, Christopher Howard. Chris was a member of my Dale Carnegie Sales Course about five years ago. He was an average guy. Had a fairly modest career in sales. His income was maybe $60,000 or $70,000 per year. But something was missing for Chris. He just wasn’t happy being “average.” So he changed all that. Now he has his own growing group of businesses with a million dollar plus income.I had Chris on my radio show just this past Saturday and asked him how he did it. His answer is what most wealthy people say: “It was easy.” Now like you I’m thinking, “yea right, easy for you, but what about me and the millions of others who drive next to us on the freeway every day grumbling on their way to at a job they loathe?” We need to change the way we THINK, Chris went on to tell me. He said, many people go through their lives under the illusion that they cannot change those elements of their personalities or aspects of their experience that they are not satisfied with.He made it his life’s work to study those that did make that change. He spoke about Donald Trump, Warren Buffet, Bill Gates, Michael Dell and a host of others. Chris decided to read their biographies, study their lives and understand the values they embraced and decisions they made which thrust them to success. Then he began modeling those behaviors. He took responsibility for his success. He stopped waiting for his big break and made it happen! And like magic, now he’s one of them!Let me ask you, what’s stopping us from doing the very same thing? Nothing – only our own thoughts. By the way the transformation in Chris was so profound that he spends his days and nights telling other people about it and helping them to achieve the very same thing. You can check out Chris Howard’s company at http://www.powerofinfluence.com/.And listen to my interview with him at www.smallbusinesshour.com. Is it true that by simply changing your thoughts you can completely change what you have in life? How could it be that simple? It is, but first you have to believe. Most people want to see something happen, then believe in it. To be successful you have to do the opposite. Believe in it first, then you will see it.Recently I interviewed Zig Ziglar on my show and I asked him the secret to success. He told me, you may have whatever you want in life… if you help enough people get what THEY want! Zig went on to tell me that if you see yourself as a successful person, in time you will become the person you see. However visualization and affirmations are not enough, you must have clearly defined goals. “With a plan we are geniuses, without a plan idiots,” Napoleon Hill said in Think and Grow Rich nearly 70 years ago. It’s all about changing our mindset. Whatever a man thinks himself to be; that is what he shall be.Along these same lines I thought I’d share this great list that I found on the internet of why being Broke (or thinking poor) is a waste of life. Check it out at http://www.mentorsinmotion.com/html/rich_vs_broke.html.1. The Broke think everything is too good to be true, while the rich think that getting a job sounds too bad to be true.2. Broke people give up when things don’t go their way; a few disappointments and they are onto something else, saying things like “it wasn’t for me.” The rich work harder and become more determined when things go bad, and understand that you have to take the bad with the good to make it.3. Broke people always have an excuse. Rich people say “my fault” and refuse to make excuses.4. Broke people think that not getting what they want is OK. Rich people are disgusted at the thought of not getting what they want and will do whatever it takes.5. Broke people always have to talk it over with their broke friends to make sure no one will make fun of them if they make a decision. Rich people think for themselves and could care less what their broke friends think.6. Broke people are never coachable and teachable. Rich people are always learning, even when the money starts coming in, they never stop learning from those who were there first.7. Broke people are scared of others. Rich people entrust in others and know that other people are crucial for their success.8. Broke people are always procrastinating; they would rather talk about it, read about it, think about it, but never seem to do anything. Rich people hate doing anything but getting it done.9. Broke people are glad when the day is over. Rich people love when the day begins.10. Broke people think rich people are lucky. Rich people put themselves into a position to be “lucky,” and then work hard to make the “luck” show up.11. Broke people work by the hour. Rich people work by the month. Broke people want to know that after 1 hour of work they have something to show for it. Rich people find broke people who think like that and make them their employees.12. Broke people get excited they just got hired. Rich people think it is funny that someone could be fooled that easily; they are just making the rich person more rich.13. Broke people complain a lot. Rich people are thankful that no one shot at them today, they didn’t have to fight in a war, and that they don’t have a job.14. Broke people are too concerned about what other people are doing. Rich people are only concerned about what they can be doing to get more done. Broke people think that if no one is doing something, it must suck. Rich people think that if no one is doing something, it means more money for them. Broke people think that if everyone (all 200 people at the meeting in a city of 1 million) is doing something, it must be saturated. Rich people think that broke people aren’t too bright.15. Broke people think it is OK for other people to live where they want to live, drive what they want to drive, and do what they want to do. Broke people are OK with the fact that they can’t do these things. Rich people get sick just thinking about being average. Broke people think that other people’s opinions are worth more than their dreams. Rich people know that their dreams are worth more than other people’s opinions.”To be rich, you must learn from the broke and do not do what they do nor think how they think.”By the way if you want to find out how long it will take you to become a millionaire, check out this very cool little calculator at http://cgi.money.cnn.com/tools/millionaire/millionaire.htmlI hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mdeo@sbanetwork.org.Mark Deo

How many of you reading or listening to this regularly attend trade shows in an attempt to get new business?  Right. That’s what I thought. Just about everyone. It makes sense. That’s where plenty of good prospective customers are gathering – at an industry trade show. I know several companies that use industry trade show as their primary means of attracting new business. They prepare for the show all year and NOTHING gets in the way of attending that event. In fact I heard a story recently that you might find entertaining (hopefully not too familiar though).

A company that specializes in logistics for importing perishable products was planning to attend the big industry trade show in Boston. This outfit packed up all their most talented sales pros, not to mention all their key executives and decision makers for what they hoped was their most profitable trade show ever. Hopefully they’d return to headquarters with a stack of new leads to follow-up on. Back at the ranch (their corporate headquarters) they received a telephone call from one of the largest packers of perishable products in the world (you’d know their name if I told you – but my liability insurance carrier wouldn’t appreciate it). This prospect was referred by one of their current clients and needed some assistance and fast. Apparently their current logistics provider was unable to deliver the service they needed at this most critical time. Now what do you suppose they were told? Were they welcomed with open arms? Did headquarters think to track down the CEO or VP of Sales to take care of this most-in-demand prospect? After all they were on their way to a trade show with the EXPRESS purpose of finding a customer JUST LIKE THE ONE CALLING FOR HELP. No, not at all. As unbelievable as it might sound they were told, “sorry but all of our executives and sales staff are on their way to Boston and there’s no one here to help you.” And that’s not the best part. When the prospect asked who could help them, headquarters in their omnipotent genius recommended that they call their best competitor.  Why is it businesses spend 80% of their marketing dollars going after new customers and clients rather than nurturing, retaining, and maintaining the customer relationships they already have? Repeat customers spend 33% more than new customers.  Few companies spend ANY time on creating referrals let alone have a strategy and plan for developing a steady stream of referrals.  Sales among repeat customers are 107% greater than non-customers. It costs six times more to sell something to a prospect than to sell that same thing to an existing customer. While a growing business needs to constantly capture new customers, the focus and priority should be on pleasing your existing customer base. Companies that fail to nurture and develop referrals from their customer base ultimately fail. They also end up spending twice as much to get new clients as they do in maintaining existing customers.  The bottom line is that one of the key components in marketing and business growth is to spend the majority of your time and effort nurturing customer relationships and generating referrals so that you get business from existing clients and customers. In our Attract More Business Program we teach a method of gaining referrals as part of your marketing strategy. If you are interested in finding out more about this strategy please feel free to contact me at mark@markdeo.com or visit www.attractmorebusiness.com Have a great week! I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mark@markdeo.com  Mark Deo

Or how to transform a few bucks into mega-millions!I am more concerned about the return OF my money than the return ON my money.-Will Rogers

Remember the movie Rain Man? Tom Cruise was fed up with his autistic brother Dustin Hoffman. Then out of the blue he discovered his brother’s savant -numbers! He could perform complex calculations in his head at the speed of light. He could count cards like crazy (no pun intended). They ended up in Vegas winning thousands of dollars because Hoffman’s character had an innate skill. Make Your Own Luck Many people dream of becoming instantly rich by winning in Vegas or hitting it big in the lottery. In that setting, most “winners” hit it big through total luck. The sad reality is that most people will never be lucky enough to win big at any game of chance, because winning such games almost always requires a series of highly random events to fall into a proper, unlikely order. Winning over the long term in these games requires something more than just luck. It requires specialized knowledge and a well practiced skill, which restricts the number of professional gamblers to a rare few. Even for those who do win by chance, studies show the vast majority–even those who have $100,000 or more dumped in their laps–have absolutely nothing to show for it twenty-four months later! It has vanished–spent or lost in speculative ventures.

Get Rich Slow So how do we get rich? Well we can work for it. Good luck there! Use some passive investment vehicles like the stock market and various business ventures. Those can be risky as we’ve seen. Or we can invest in the real estate market. Chances are if you are reading this article, you are likely one of the millions of property owners that are “equity rich.” That means your primary residence or income properties have appreciated significantly. That’s a good thing, right? Wrong! Not according to Douglas Andrew, author of the book, Missed Fortune. While most Americans are working like busy beavers trying to pay off their properties so they can own them free and clear, Andrew says doing so is more dangerous than we think. Debt Can Be Your Friend Today there’s a lot of talk about eliminating debt. What is the biggest debt most of us have? Our mortgage of course. Most homeowners believe the most successful strategy to financial security is to eliminate the debt of their mortgage as quickly as possible. Many do this by sending extra payments to their lender to lower interest fees and reduce the principal. This makes sense if you operate under the assumption that debt is your enemy to be eliminated as quickly as possible. But what if we viewed debt as our friend? Some debt, when managed wisely can be very desirable. Let’s look at debt. If you think about it you can only do four things with your money. You can spend it (I’m good at that one), give it away, lend it or own with it. When we put our money in a savings account we are putting it in a “lended position.” The bank pays us an interest rate for loaning it that money. A bond or another kind of debt instrument works in the same way. When banks borrow your money by allowing you to open an account with them they are placing themselves in your “debt.” This is not to say they are being unwise. On the contrary, they understand the difference between good debt and bad debt. They rely on the proper management of debt in order to make a profit for themselves and their stockholders. Equity Fails the Three Tests of Wise Financial Investing On the other hand, if we put our money in an equity or ownership position we incur greater investment risks but we also position ourselves to capture greater appreciation on that equity. This happens when we purchase stock or real estate. The downside to having too much of our assets tied-up in real estate equity is that our money is not liquid, yields no rate of return, and it is not safe. We can, however, accomplish both goals by using debt and equity to balance our assets so that we meet the three tests of wise financial investing:  1 – Lacking Liquidity Money tied-up in real estate equity does not pass the liquidity test because even though it’s YOUR money and you paid it to the mortgage company, THEY get to decide IF they will loan some back to you, how much you deserve and what interest you should pay them for the privilege of using your own money! Having too much equity invested in our properties make us house-rich and cash poor. 2 – Yields No Rate of Return One of the greatest misconceptions that homeowners operate under today is that the equity in their home is generating a rate of return. Nothing could be further form the truth. While real estate DOES appreciate and this has the potential of creating a return on investment, it appreciates at the same rate regardless of whether it is mortgaged to the hilt or owned free and clear. A higher equity position does not make the property more attractive. In fact, a lower equity position can make some properties EASIER to sell. 3 – Unsafe Finally it is unsafe to have too much equity tied-up in a home be it a primary residence or an income property. The reason for this is that at anytime the mortgage company can decide to call the loan. This does not happen because we continue to pay our monthly or bi-weekly mortgage payments on time. What if something happened like a physical disability or catastrophic event that precluded you from paying your mortgage? Well the mortgage company would foreclose on your home and you would lose every penny of equity with it. Does this like a safe investment? I think not. These are the strategies which are outlined in the 560 pages of Missed Fortune. Intimidating as that might sound, the book is jammed full of easy to understand and practical money strategies. Andrew himself says, “This book will teach concepts and give insights that are contrary to popular belief. Now is the time to discover the best way to safely accumulate more money.” I recommend the book to homeowners, investors, realtors and everyone interested in acquiring more wealth.  By using equity and debt wisely we can increase our ability to leverage our assets so that they are producing a significant return on investment. In this way we can make the best use of knowledge and practice street-smart financial strategies that help us to “make our own luck.” Have a great week! I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mark@markdeo.com  Mark Deo

Just the word goal has been overused and abused. It’s gotten to the point where people just cringe when they hear it.

How many of us made new years resolutions this year that now, almost in May, we’re trying to forget? How many of us set goals for ourselves that we have yet to achieve? Or how many of us keep setting the same goals over and over and over again? Or maybe you’ve given up on a goal? Hey, it can be disappointing, disheartening and down right depressing.You might say “Oh come on Mark, I’m busy just trying to run the day-to-day business here, when do I have time for setting goals?” I know. That’s why my fellow consultants and I here at marketingquestions.com decided to make this the lead article in our newsletter this month. We’re going to discuss how you can achieve your goals faster, easier, more effectively and have a whole lot more fun. It doesn’t have to be that hard! There ARE some sure-fire ways of achieving your goals. Let’s take a look at what Jim Ball, the founder of the Goals Institute in Reston, Virginia has to say about achieving your goals. He recommends a five step approach: 1. Make a solid commitment to your goal – achieving a goal requires “kinetic exploratory discourse.” That means you can’t learn to ride a bicycle by reading a book you have got to fall off once or twice to get the feel of it and to really understand HOW to ride a bicycle. Make sure you’re goals are laser-clear in your mind.
2. Outline a plan – the key to maintaining momentum is always knowing what to do next. Those steps will lineup like domino’s as you achieve them, each leads to the next. Take one step toward your goal everyday, even if it’s just making one call.
3. Act on your plan – every evening right down the four or five major things that you’re going to accomplish the next day. Look at the list and find the item that relates to your big goal or vision and highlight it. If you can’t highlight something every day, then you’re not making progress. You are just fooling yourself. Use chunks of time. Say you’re trying to finish a proposal. Set aside from 9 a.m. to 11 a.m. to work on it. Don’t let the day take you. Take control of the day.
4. Learn from your progress – make sure you’re following your plan then regularly measure what you are doing. Did you reach your goal? Keep checking and adjust your plan as needed.
 5. Create systems – the difference between success and failure is habit. In business, habits are called systems. For example with sales, your habit might be calling five new prospects everyday.Out of 10,000 people, maybe 20 percent have laser clear goals. Of those, maybe 20 percent have a plan in writing. Of those, maybe 20 percent implement the plan. Of those, maybe 20 percent learn from their progress. That’s 16 people. Out of 10,000 people only 16 people will achieve their goals. That’s less than 2/10 of one percent. You can be the minority.Tips for Staying Focused on Your VisionHow can you learn to create a vision, stay focused on it, and make it work for you in more positive and powerful ways? Here are 10 tips to turn vision planning into concrete results:1. Put it in writing. As simple as this may seem, it is often the difference between a vision that works and one that is never attained.
2. To challenge yourself. Your vision must be chosen honestly, and always be true to your yourself. But you also have to push beyond your previous limits to reach new heights.
3. Distinguish between your long-term vision and short-term goals. Remember, your vision is you ultimate destination. Goals are merely the steps along the way. There is a big difference between long-term and short-term goals, but they need to be interrelated in order to get you to where you want to go. Short-term goals are the building blocks for your long-term vision. Creating your long-term vision enables you to consciously focus your creativity in a specific direction.
4. Focus on the goal not how to get there. Keep your eye on the target at all times. Life doesn’t just happened to you; you can make sure your daily choices are steps on the path to creating a successful vision.
5. Be flexible about the how. Right from the start you can rest assured that things are not going to turn out exactly as you plan. Does that mean you’re vision is wrong, or your goals are meaningless or that you shouldn’t bother to plan? Of course not. If you insist on knowing how it’s going to happen, success can smack you write in the face and you won’t even know it.
6. Visualize yourself in the future. Most people think in pictures. As you begin to right down your vision place yourself in the future and make it seem real. Record the date by which the vision will be accomplished. Then stop, close eyes and imagine that you are there. Visualize yourself as clearly as you can, what you are wearing, where you are, what you are doing. How does it feel to have already accomplished that vision?
7. Record your vision of your ideal life. This is your grandest vision of your life in your world, as you would live it at your highest purpose of potential. Let your imagination run wild and create the biggest picture possible for yourself.
8. Stop beating yourself up. We’ve all had goals that we failed to reach. As a result, people create enormous mental barriers when they think about goal setting. A failure is only a failure when you learn nothing from. Businesses fail; people don’t. It’s important to make the distinction.
9. Let your goals be changing. Life is changing, as such; your goals should constantly evolve. Make sure you review and refine your goals regularly. Today your goal might be to grow your business, but five years from now it could be something entirely different.
10. Have fun. If setting and achieving your goals isn’t fun then why bother? Let your imagination carry you away to your greatest wildest dreams and don’t limit your possibilities. Vision Planning Goal Setting Program 
Like our other programs, we work with you to customize a plan to meet your specific needs. Includes course material, step-by-step instructions, and 6 one-on-one email consulting sessions held over a 6 week period. We guide you through each step of the process using an interactive format. First Two Weeks:
Process planning – show you how to identify and achieve balance in each of the key areas of your life.
Vision development – we teach you how to visualize YOUR future and show you how to make it reality
Prioritizing – we help you to define precisely what is important to you 
Goal Formulation – we work with you to establish and document specific goals Second Two Weeks:
Measurement – we show you how to test your goals and make course corrections
Action step planning – outline and execute a step-by-step logical plan for implementation and show you how to get feedback on your progress
Reporting – We MAKE you “put-it-in-writing” and we teach a system of remembering and reviewing Next Two Weeks:
Delegation – how to get others to help you achieve your goals
Compliance – we help you to establish coaches in your life and to LEARN from your mistakes
Reduce stress and tension – we show you how to structure your plan so that you live a more “goal oriented” life daily with less worry I hope this helps you to improve your ability to both set and achieve realistic goals.

I want to make everyone aware of an upcoming radio show that we are doing this Friday at 4pm PST with one of the most interesting business authors I have spoken with in a while.

His name is James Hemerling and his book is called GLOBALITY: Competing with Everyone from Everywhere for Everything. Hemerling states that the old global business model (centralized, top-down, process-driven, with influence running from West to East) will recede, perhaps vanish. It is inadequate for a world in which every global company is forced to compete: in every market, with everyone, from everywhere, all the time, for resources and market share.Unlike developed-market leaders, emerging-market challengers have evolved new management and governance structures that are ideally suited to this new competitive landscape. In addition, it has enabled them to undercut, outthink, outwork, out-innovate, and generally outfox some of the biggest, most powerful names in global industry. What are these upstart challengers doing? How are they winning?Imagine companies that:

• Innovate at the rate of one new product development every 12 hours.
• Give up the notion of “headquarters” in a drive toward global expansion.
• Do away with titles and committees in an effort to improve staff development.
• Expand into 50 countries by satisfying global demand that no one else could see – at the lowest, cheapest end of the market.
• Hire thousands of people to staff assembly lines, instead of automating, to be more efficient, flexible, and profitable.
• Achieve such high efficiency that they can give away 60% of their services and still make a profit.
• Retrain workers by the tens of thousands to build a world-class capability, in less than a decade.

Again, listen to my interview with James Hemerling this Friday at 4pm PST. Just go towww.markdeo.com and turn-up the sound. Its that easy!

I was reading the Wall Street Journal recently and I stumbled across a statistic that I thought was interesting if not disconcerting. A recent survey they conducted indicated that more than 100 Fortune 500 CEOs confess that they are, at best, only able to realize 50% of their growth potential in the firms they lead.

Now I began think, if it’s that hard for the country’s top CEOs to achieve growth how must it be for the rest of us?Certainly this is quite a performance gap. Why is it so difficult to overcome the barriers of growth? It seems these same CEOs are successful in bringing about efficiencies, reducing costs, reengineering business processes. Shouldn’t these things translate into corporate growth?I say NO, absolutely not! In fact these are the very things that may PREVENT consistent, long-term growth of any organization large or small. In fact evidence of this is visible wherever we look.Consider the global leaders of the Dow Jones Industrial Average. There is no economic indicator that is more synonymous with growth in this country than the DOW.Let’s look at four of the most rock solid companies operating in completely different industries all of whom are flagship components of the DOW: Proctor & Gamble, IBM, Coca-Cola and Disney.The giants of growth and success, right? WRONG.What do you see when you look at these leaders? STAGNATION!Hey I don’t mind telling you I have stock in all three of these companies and over the years I’ve done OK, but I’m talking about GROWTH.Proctor & Gamble considered to be the world’ leader in product marketing and brand management grew at a rate of only 2.4% between 1997 and 2002. This is far slower than the growth of our economy. IBM engineered the most successful turnaround of any market leader and prospered during the tech boom and bust.Yet they grew less than P&G’s 2.4% rate for the same period. Despite the fact Coke is one of the largest equity holdings of the legendary Warren Buffett, they grew at a rate of only 3.3% for the same period. And finally Walt would roll over in his grave if he knew that his Disney had grown at a rate of only 0.7% for the same period.Some may say well these are old companies Mark institutions really. Or they’re past their heyday or it’s been an uncertain economic environment as of late or any other of a host of excuses. But I believe there are some very good reasons that the powerhouses of our economy are slowing and unable to get back into a growth mode. This is relevant to small business because most small businesses pattern their growth strategy after the big boys and this is often why they just don’t grow!You see most of these larger concerns have tremendous momentum, top-of-the-mind awareness and consumer equity. Yet these organizations have sustained their market position without growing by alternately downsizing/cutting costs and latching onto some new technological fad and riding it out for a time. This is not consistent, sustainable but rather growth in short bursts.Graeme Deans and Fritz Kroeger in their book, “Stretch! – How Great Companies Grow in Good and Bad Times,” talk about the secret to long-term, sustainable growth. They say, there is no secret it is the result of implementing a growth strategy in four areas of the business: operations, organization, strategy and stretch.1. Operations – This represents getting your operation in order, targeting dramatic improvements in internal processes such as product development, sourcing, quality, delivery, customer service, sales and pricing.2. Organization – This represents finding the optimal organizational structure, culture issues, compensation, rewards and incentives, value chain reconfiguration and business unit accountability.3. Strategy – Take a fresh, holistic look at the company’s strategy and be willing to make wholesale changes. This may involve a higher risk tolerance.4. Stretch – This refers to expanding the company’s frontiers culturally, economically, geographically and strategically. Often times this involves breaking down old barriers and paradigms of doing business. This might include perhaps addressing new markets, customer bases, product categories.All of these elements can be applied to a small business as well as a large. Great companies find a way to grow regardless of the economy. They focus on innovation and calculable risk. Don’t let the economy or trends in your industry get in the way of your companies growth. Put together your own Stretch plan and start growing. Because remember if you’re not growing you’re actually shrinking.I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mdeo@sbanetwork.org.Mark Deo

There is a revolution in business today. The old way of doing things is passing into the dark mist of history. It used to be that you… created a product or service that was needed or desired, obtained sufficient financing, recruited a great team, cranked-up your marketing machine and eventually you could grow to become a leader in your industry. That is until some smarter competitor produced a superior performing widget, secured better financing, stole some of your people or out-marketed you, thereby knocking you off your high horse.

Not anymore! 

Don’t believe me? Consider this. Yesterday, Bill Ford, president of Ford Motor Company said: “The business model that sustained us for decades is no longer sufficient to maintain profitability.” Think about that for a minute. Here is the son of one of the “fathers of the industrial revolution” telling us that their business model no longer works! That’s kind of heavy. 

Product marketing, recruitment and financing are no longer the “sacred cows” of business success. 

Product Marketing
Just because a product or service is “better” in no way guarantees its success in the market. In fact our friend Seth Godin, author and marketing guru says in his book, The Purple Cow, “Very good products and services are very bad!” Why? Because while we are focusing on how marvelous our products have become, the market has changed and often so radically that your nifty little product has not only lost demand, it has quite likely become irrelevant! Marketers today must focus on creating the NEXT generation of products and services before their first generation ever hits the street. But often times we fall madly in love with our product line. This is a surefire approach to getting our clients to fall “out of love” with our company. Faster product and service turnover is a requirement of success in this blinding fast, whim sensitive culture.

Traditional Financing
While every enterprise must have some kind of basic financial foundation, today traditional financing is less important that ever before in history. Consider some of the recent start-ups that have grown into multi-million or billion dollar ventures with little or no traditional financing:

• Skype started with less that $10,000 in capital and recently sold to E-bay for 2.6 billion.
• Airborne Health with only18 employees, posted $150 million in sales for 4673% growth in the last 3 years.
• Digital Lifestyle Outfitters, makers of i-pod accessories reached $84 million in sales after having been in business only 26 months!

All of these companies took risks. They were funded by immediate and astronomically growth not by a bunch of bankers with purse-strings and their greedy hands in every pie. I believe that self-funding ventures will become the standard for business growth in the future. Traditional financing and budgeting leads to waste. Like the old guard concept of, “it’s in the budget, then we need to spend it or they will cut the budget next year.” This is the kind of thinking that has created the 10 trillion dollar economic deficit that our generation faces.

Recruitment
Building a world class corporate team has always been the aim of every great company. Ford Motor Company, for years had one of the lowest employee turnovers in their industry. For decades loyal workers toiled for “mother company” in plants all over the Midwest. That is until the auto industry began to enter the world of collaboration and business alliances. Give a high five to the Japanese for this move. Today it would be difficult to count how many different automotive companies take part in the design and manufacturing of most Japanese automobiles. In fact many of those cars are designed and made in collaboration with competitors. That’s right competitors actually cooperating.

If this is so effective for the global auto maker why would it not work for small organizations like yours and mine? Because of FEAR! Many are afraid that their competitors will learn too much about us and use it to “beat us on the street.” Many are afraid that our best EMPLOYEES will learn too much and defect to the competition. How foolish. When you think about it. What was stopping them from doing that very thing in the first place? Nothing at all. 

I remember people laughing at me 3 years ago when I said on live radio that our corporate world is dying and that in less than a decade over 70% of the workforce will be free agents. This is now very obviously happening.

The watchwords of sustained growth in business today has been transformed from better product marketing, recruitment and financing to collaboration, risk-taking and blind fast product turnover.

Do you think your business can continue do things the same way that you have in the past? 

Bill Ford doesn’t think he can! 

I wonder, how will you? 

Have a great week!

I will never forget the first time I went to Japan on business. I shudder to think that it was almost 20 years ago. I was excited as you can imagine. So excited in fact I forgot to get a travel visa. Sad, but true. I had to drive my car like a maniac to the Japanese embassy in Downtown Los Angeles and get the visa stamp on my passport then drive like a nut-head back to the airport where, unbelievably, I made my flight with just minutes to spare. 

Never the less when I arrived I was greeted by Mr. Uyama. He was friendly but rather stoic. I would learn much from him in the ensuing years but he said something that I will always remember. He said, “Mark,” in his excellent but slightly broken English. “There is one thing that we just cannot do under any circumstances. I hate this more than anything. That is compromise. We must NEVER compromise.” He spat out the word like it was the most disgusting, vulgar action on the planet. I was shocked. I had always thought that compromise was good.I came to find out that what Mr. Uyama meant is that we wouldn’t just give up on an initiative without exhaustive due diligence. This makes sense. But what I also found out was that this could be a pretty inflexible strategy. Despite our best efforts and careful planning we may, as leaders, find ourselves facing circumstances in which the path ahead is far from clear. At times we have to resort to improvisation and creativity to find the best possible solution. Often times looking for the solution is the very thing that stands in the way of resolution. In fact, we should more often than not spend more time and effort examining the causes of the problem.Separating symptoms from causes is often times more art than science. It is critical that we understand the difference between a symptom that accompanies a circumstance and the root cause of a problem. This requires careful investigation and study. There is a relatively easy way to determine the difference between symptoms and causes. When we change the “cause” the problem, ceases to exist permanently. When we change a “symptom” chances are the problem will return. At times we can use compromise to root out the difference.In his book, “Leading Quietly,” Joseph Badaracco talks about how we can use compromise to allow the best solution to rise to the surface and to do so in a way that reduces risk. Compromise, not in the sense of immoral decision making like we’ve seen as of late with companies like Enron. As leaders we should do the right thing, not half of it. I am speaking rather about the kind of compromise that occurs in fruitful negotiation. This kind of compromise is rooted in ethical, well-informed decision-making. Fair compromise often rests on a leader’s ability to motivate participants to see circumstances from a unique perspective. They present a new line of vision which redefines the problem in a different light and leads to a mutually beneficial compromise.In many circumstances compromise is the beginning of wisdom in resolving difficult problems. King Solomon of the Bible was said to be the wisest man that ever lived. One day he had to decide which of two women was the true mother of a child. Both of the women claimed that the child was theirs and they came to Solomon for his wise judgment. They didn’t have blood tests in those days and he had no way to determine which one was the true mother. So the king proposed a horrific alternative: “Cut the baby in two and give one half to each women.” Of course the true mother cried out at this terrible proposition and gave the baby up to the imposter. This told Solomon all he needed to know and he reunited the child with her real mother.Solomon was a powerful king. He could have “faked it” and guessed which was the real mother. But he would know it was fake and many others would suspect as much. Eventually this would undermine his authority and the system of justice in the land. He could have looked for some technicality or taken the child from both women which would have separated a family and perpetrated a greater injustice. But Solomon was truly a wise man. He went beyond the legal issues to the issues of the heart. As a result one women demonstrated her love and devotion and the other her bitterness and envy.Are you facing a difficult decision? Does the road ahead look kind of murky? Think about how you can use ethical compromise to root out the cause of the problem and watch the solution rise to the surface.