You may live as the King Fish in a small pond for as long as you wish but one thing you will never do is cause the pond to grow any larger. Therefore if you would truly reach your real mass you must swim for the sea.
You may live as the King Fish in a small pond for as long as you wish but one thing you will never do is cause the pond to grow any larger. Therefore if you would truly reach your real mass you must swim for the sea.
I’m always thinking about Work (not just business, though that’s part of it, but all of my Work – business, careers, inventing, writing, etc. which short of God and family are my most interesting and vital concerns), and I constantly go without sleep.
The rest of these to a slightly lesser degree, but I know exactly what the man is saying and why.
Every entrepreneur starts out with big dreams and excitement.
As an entrepreneur, you control your own destiny, and with the right ideas, the right skillset and unflinching dedication, you can build wealth or establish an enterprise to serve as your legacy.
This is the bright side of entrepreneurship, but unfortunately, there’s also a darker side.
The rigors of entrepreneurship demand sacrifices, and if you don’t make those sacrifices you’ll never be able to succeed. Business is, at its core, a give-and-take process. The more you invest, and the more you’re willing to part with, the more you’ll reap in rewards in kind.
These are the five sacrifices that every entrepreneur needs to make:
You’re starting a new venture, and there’s no guarantee you’re going to succeed. The foundation of your company, even if your idea and plans are solid, is rocky at best, and there’s no telling which direction your business is headed until you’re several months, or often much longer, into running things. If you haven’t already sacrificed a comfortable, well-paying, stable job to follow this route, odds are you’ll have to sacrifice some other kind of stability before you can move forward.
Entrepreneurship is, by nature, an unstable path to follow. Don’t be surprised if you encounter multiple, unpredictable shifts in your fortune as your work progresses. It’s natural and part of the process. Eventually, if you work hard with a clear vision, things will stabilize.
When you become an entrepreneur, the lines between your working life and your personal life will blur. You’ll start thinking about business even when you’re away from the office, sometimes because you want to and sometimes because you can’t help it. You’ll also get calls and emails urgently needing your attention because you’re the boss and there’s nobody else to answer them.
Your downtime will become “light” business time, but the flip side is that your time in the office will feel more like personal time because you’ll want to be there. Remember, it’s still important for you to balance your work priorities and your personal ones — always make time for your family and your mental health — but the firm split between personal and professional time is going to go away no matter how you try to handle it.
This goes along with the stability sacrifice, but for the first few years of your business, you’re probably not going to be making much money. In most businesses, entrepreneurs and their families end up investing heaps of their own money to get the business going. If this is the case for you, you’ll be making even more of a sacrifice since your potential safety net will be gone.
Since you’ll be deciding where the money goes, you can set your own salary, but many entrepreneurs don’t even take a salary during their first several months of operations, at least not until there’s a steady line of revenue backing them up. Be prepared for this. You’ll need a strong marketing plan to overcome barriers to entry and gain a share of the market in your industry.
Sleep is vitally important, but no matter how hard you try to preserve healthy sleeping habits, you’re going to sacrifice some sleep in order to run your business. In some cases, you’ll be pulling all-nighters to get that last proposal together. In other cases, you’ll be getting up super early to make a meeting or get all your tasks in order. In still other cases, you’ll be lying awake at night, restless and wondering about the future of your company.
Whatever the case may be, your sleeping habits are going to change when you become an entrepreneur, and you’ll have to make the best of them no matter how they end up.
Being the boss of your own company means the buck stops with you. You’re going to have to wear dozens of hats, make decisions you’ve never made before and delve into subjects you’ve never before considered. Part of being an entrepreneur means stepping out of your comfort zone, often multiple times every day.
The most successful entrepreneurs are the ones who approach uncomfortable situations with confidence and a degree of excitement. Learn to thrive in uncomfortable environments, and you’ll find yourself much more at peace with your job.
Don’t think of these sacrifices as literal sacrifices. You’ll be giving something up, sure, but try to think of it as a type of investment. You’re giving up intangible luxuries in exchange for something better down the road. You’re paying for the opportunity to find success in your own enterprise, and your sacrifices will be rewarded many times over so long as you stay committed in your chosen path.
Remember, as an unidentified student of Warren G. Tracy said, “Entrepreneurship is living a few years of your life like most people won’t so you can spend the rest of your life like most people cant.”
Over the past few months, we have been talking to many entrepreneurs about their knowledge-gap around intellectual property (IP) and other important startup matters that actually impact IP or intangibles (and therefore valuation and ultimately their success). This is the first in a three part series detailing the lessons learned by these early stage companies.
First, what do I mean by traditional IP? I often joke that if I had a dollar for every person who told me they didn’t have any IP in their business, and a second dollar for those who think IP is only patents, I would be rich. Traditional IP to me is the patent or trademark protection. That is not to say that copyrights, trade secrets, and so on are not IP—far from it—but the most common IP is patents and trademarks. Unfortunately there remain some big misconceptions around protecting traditional IP.
A few brave entrepreneurs have shared their stories to help others learn about the importance of IP identification early and often.
Timing is everything
Phillip Felice, Founder of Bridge Optix, described his recent brush with IP horror in a single sentence: “I realized I have underestimated intellectual property timing importance.” Phillip was weeks away from a public release of his product when he was grilled on his company’s IP protection and strategy. He realized that his patents needed to be filed before his public product release.
We have heard other horror stories where companies have spent thousands on branding for websites, signage, or product packaging without first securing rights to a name, including trademarks. Register and secure rights before spending too much of your limited startup capital.
Location, location, location
Patents filed with the United States Patent & Trademark Office (USPTO) only cover the US. The same goes for trademarks and copyrights filed with the US Copyright office.
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Wealth and Weal for the Soldier: as some of you might know I’ve been outlining the idea behind several books, which involve teaching business, economic, financial, investment, and money management principles to people who usually get little training in this regard, or who have little exposure to such ideas, concepts, and principles (maybe because they have little time for it). In any case some of the audiences I have targeted to address my books on Wealth and Prosperity Training to include Wealth and Weal for Black Folks, Wealth and Weal for Poor People, Wealth and Weal for Immigrants, and Wealth and Weal for College Students.
Yesterday I was laying in the sun working on an invention when God suddenly said to me, “you know, those books on Wealth and Weal are pretty good ideas, but you know who else really needs that kinda training? A lot of Soldiers, and Police, and Firefighters.” And He was right of course, because that’s the way He is.
So I went inside and started jotting down chapter ideas. These would be chapters specifically targeted at these audiences. Such as:
Business Projects for the Soldier/Policeman
Inventions (triggered by where they serve)
Service Capabilities (developing and profiting from new ways and capabilities to serve)
Operational Improvements (how to suggest and profit from advancing operational methods of service)
Business and Career Idea Generation
Hazard Pay (how to profit from and invest your Hazard Pay)
Developing Supplementary methods and means of Income
Preparing for and Pre-Developing Your Post Service Career
Business, Career, and Employment Planning
Spiritual Development and Religious Life
Psychological Health and Development
Networking – in and out of Service
Contacts – military, civilian, political, and among your Service Zones
The goal should not be to degrade, lessen, or sabotage the ranks of the 1%. Much less to abolish the ranks of the 1%.
Rather the goal should be to create so many wealthy persons that they become the vast majority of people on the face of the Earth. But to do this the vast majority of people on the face of the Earth must become truly ambitious, industrious and productive. They must also become real risk-takers.
It is for immediately obvious reasons (to anyone who bothers to observe) that the vast majority of one-percenters are consistently ambitious, industrious, and productive. And habitual risk takers.
They are not dependent-minded people with a constant desire for indulgence and security. They are rather the makers of manners. And the shapers of self-effort and worth.
If you would be in the 1% you must become the 1%.
It is not indecipherable magic, it is good and well-practiced habit.
I thought most of his points were excellently and wisely made.
I have spent decades “being educated” — in college, graduate school, numerous professional certifications, and now a Ph.D. program. All of that schooling and training helped shape the person I am today, but at no point in my life has there been a more profound education than my time working for Enver Yucel and Oprah Winfrey.
Enver and Oprah are two extraordinary people. And on top of that, they’re both billionaires. On the surface, they appear to be totally different people. They are in different industries, have different family structures, practice different religions, and speak different languages. However, once you get past their written biographies and dig deeper, you will notice they possess many of the same successful habits.
I had the opportunity to work with both Oprah and Enver for six years collectively and those were, hands down, the best professional experiences of my life. I worked my ass off for them and in doing so absorbed everything I could.
It’s my honor to share with you what I learned from them. Here is Part 1 of the 20 successful habits I learned working for two billionaires:
1) Invest in Yourself
This is a very simple concept, but something you would think someone who has “made it” would stop doing. Not at all for these two. I saw them both spend a significant amount of time dedicating their resources to self-development (whether it be a new language, exercise, social media classes, etc.). The moment you stop investing in yourself is the moment you have written off future dividends in life.
2) Be Curious… About Everything
What the average person sees as mundane or overly complicated is not viewed the same way with a billionaire mindset. I once had a 30 minute conversation with Enver about the height of the curbs in Washington DC versus Istanbul, Turkey. Billionaires are incredibly curious; what the rest of the world thinks is a problem and complains about — that’s what these people go and work on.
3) Surround Yourself With “Better” People
I hope this is why they kept me around. Seriously, I never knew my bosses to keep anyone less-than-stellar in their inner circle. There were many times I thought to myself, “Damn, they have dream-teams built around them.” Jim Rohn had it right, “You are the average of the 5 people you spend the most time with.”
4) Never Eat Alone
The last time I had dinner with Enver, as well as the last time I ate dinner with Oprah, there were easily 15 people at our tables, respectively. Coincidence? While most of us derive our key information from blogs or the newspaper, power players get their information from the source (other power players), directly. However, just because you can’t call up the Obamas and break bread with them doesn’t mean eating with others in your circle doesn’t carry value. In one of my favorite reads of the last few years called Never Eat Alone, author Keith Ferrazzi breaks down how you can identify “information brokers” to dine with you. I’ve seen first hand how enormous the benefits are of this strategy.
5) Take Responsibility for Your Losses
I was working for Oprah during the time she was taking heat from the media about poor network ratings. I was also working for Enver during the closing of one of his prized divisions. What I witnessed them both do in response was powerful. Opposed to covering the losses up with fancy PR tactics, both stepped to the stage and said in essence “I own it and I’m going to fix it” and dropped the mic. Guess what? They sure did fix things (It’s widely noted Oprah’s network is realizing ratings gold and Enver’s assets have probably doubled since the division closing).
6) Understand The Power Of “Leverage”
This is something that was quite a shock to me. From afar, a billionaire appears to be someone who is a master at everything. But, in truth, they’re specialists in one or a few areas and average or subpar at everything else. So, how do they get so much done? Leverage! They do what they do best and get others to do the rest. Here’s a great article on leverage. Keep in mind I see this done with wealthy people and their money all of the time — they use OPM (other people’s money) for most or all of their projects.
7) Take No Days Off (Completely)
I recall going on vacation with Enver several times, yachting up and down the southwestern coast of Turkey (also known as the blue voyage). Sounds ballerific, right? No doubt we had a great time, but mixed in with all that swimming and backgammon was discussion of business, discussion of strategy, planning and plotting. The best way I can describe this habit is thinking about your business or your idea like your literal baby. No matter your distance, you don’t stop thinking of him/her (and after just having a second son, I can attest to this).
8) Focus On Experiences vs. Material Possessions
When you have money, your toys are big. However, the vast majority of money I saw spent on their “leisure” was on actual experiences versus the typical car, jewelry, and clothes we’re familiar with seeing in music videos and gossip blogs. I recall one time at dinner with Oprah, I spotted a table of about 20 girls off to the side. I later found out Ms. Winfrey was treating some of her graduating girls from her school in South Africa to dinner in NYC. Experiences create memories, and memories are priceless.
9) Take Enormous Risks
This is another one of those successful habits every entrepreneur can attest to. A matter of fact, Entreprenuer.com created a great infographic outlining commonalities of the world’s billionaires and one of the most prominent was this characteristic: billionaires are not adverse to risk. What intrigues me even more about Enver and Oprah was that even at their high financial status and success level, they still possessed a willingness to risk their most precious asset (their name and legacy) on new and bolder projects. If you’re not taking risks, you’re not making moves!
10) Don’t Go At It Alone
Nothing great in life is achieved alone. Especially in business, success isn’t a solo act. This character trait is akin to “surrounding yourself with better people.” It takes teamwork to make the dream work.
Read Part 2, here!
The very idea that a college degree, of any kind, will assure you do anything at all worthwhile in life is every bit as juvenile and ridiculous a notion as the idea that a job will assure you will become wealthy.
This does not mean that you should necessarily eschew either degrees or jobs, what it does mean is that you must understand their very limited influence on your real achievements in life, and upon your true personhood.
Neither you, nor anyone else, can anymore “degree” you a great achievement, than you can “job” your way into being a meaningful person.
Low oil prices and cheap gas are cutting into the demand for electric cars and solar power, if analysts are to be believed. That’s no good if you’re the largest shareholder of Tesla and SolarCity, and some back of the napkin math says Musk’s pocket is about $1 billion lighter.
Musk owns over 28 million shares in Tesla, which peaked at around $284 in September and is now floating around $200 today. He also owns almost 21 million shares of Solar City, which topped out in February at $86 and is trading today at just over $50.89
On Nov. 26, the day before a decision by the Organization of the Petroleum Exporting Countries to stand pat on production suggested the group preferred to defend its market share than try to support prices by cutting output, Musk’s combined Tesla and SolarCity holdings were valued at around $8.2 billion. They are now more like $7 billion.
Since that OPEC meeting, Tesla shares declined 16 percent and Solar City dropped by 11 percent, and it’s even lower now. But really, what’s a few hundred million between billionaires?10
I had to learn a very similar lesson myself. One of the hardest, and yet most productive lessons I ever learned.
With well over 50 billion dollars to his name, Warren Buffett is consistently ranked among the wealthiest people in the world. Out of all the investors in the 20th century, Buffett was the most successful.
Given his success, it stands to reason that Buffett has an excellent understanding of how to spend his time each day. From a monetary perspective, you could say that he manages his time better than anyone else.
And that’s why the story below, which was shared directly from Buffett’s employee to my good friend Scott Dinsmore, caught my attention.
Let’s talk about the simple 3-step productivity strategy that Warren Buffett uses to help his employees determine their priorities and actions.
Mike Flint was Buffett’s personal airplane pilot for 10 years. (Flint has also flown four US Presidents, so I think we can safely say he is good at his job.) According to Flint, he was talking about his career priorities with Buffett when his boss asked the pilot to go through a 3-step exercise.
Here’s how it works…
STEP 1: Buffett started by asking Flint to write down his top 25 career goals. So, Flint took some time and wrote them down. (Note: you could also complete this exercise with goals for a shorter timeline. For example, write down the top 25 things you want to accomplish this week.)
STEP 2: Then, Buffett asked Flint to review his list and circle his top 5 goals. Again, Flint took some time, made his way through the list, and eventually decided on his 5 most important goals.
Note: If you’re following along at home, pause right now and do these first two steps before moving on to Step 3.
STEP 3: At this point, Flint had two lists. The 5 items he had circled were List A and the 20 items he had not circled were List B.
Flint confirmed that he would start working on his top 5 goals right away. And that’s when Buffett asked him about the second list, “And what about the ones you didn’t circle?”
Related: 3 Simple Ways to Improve Your Sleep
Flint replied, “Well, the top 5 are my primary focus, but the other 20 come in a close second. They are still important so I’ll work on those intermittently as I see fit. They are not as urgent, but I still plan to give them a dedicated effort.”
To which Buffett replied, “No. You’ve got it wrong, Mike. Everything you didn’t circle just became your Avoid-At-All-Cost list. No matter what, these things get no attention from you until you’ve succeeded with your top 5.”
I believe in minimalism and simplicity. I like getting rid of waste. I think that eliminating the inessential is one of the best ways to make life easier, make good habits more automatic, and make you grateful for what you do have.
That said, getting rid of wasteful items and decisions is relatively easy. It’s eliminating things you care about that is difficult. It is hard to prevent using your time on things that are easy to rationalize, but that have little payoff. The tasks that have the greatest likelihood of derailing your progress are the ones you care about, but that aren’t truly important.
Every behavior has a cost. Even neutral behaviors aren’t really neutral. They take up time, energy, and space that could be put toward better behaviors or more important tasks. We are often spinning in motion instead of taking action.
This is why Buffett’s strategy is particularly brilliant. Items 6 through 25 on your list are things you care about. They are important to you. It is very easy to justify spending your time on them. But when you compare them to your top 5 goals, these items are distractions. Spending time on secondary priorities is the reason you have 20 half-finished projects instead of 5 completed ones.
Eliminate ruthlessly. Force yourself to focus. Complete a task or kill it.
The most dangerous distractions are the ones you love, but that don’t love you back.
Type the name of almost any successful consumer Web company into your search bar and add the word “addict” after it.
Go ahead, I’ll wait.
Try “Facebook addict” or “Twitter addict” or even “Pinterest addict” and you’ll soon get a slew of results from hooked users and observers deriding the narcotic-like properties of these websites. How is it that these companies, producing little more than bits of code displayed on a screen, can seemingly control users’ minds? Why are these sites so addictive and what does their power mean for the future of the web?
We’re on the precipice of a new era of the web. As infinite distractions compete for our attention, companies are learning to master new tactics to stay relevant in users’ minds and lives. Today, just amassing millions of users is no longer good enough. Companies increasingly find that their economic value is a function of the strength of the habits they create. But as some companies are just waking up to this new reality, others are already cashing in.
A company that forms strong user habits enjoys several benefits to its bottom line. For one, this type of company creates associations with “internal triggers” in users’ minds. That is to say, users come to the site without any external prompting.
Instead of relying on expensive marketing or worrying about differentiation, habit-forming companies get users to cue themselves to action by attaching their services to the users’ daily routines and emotions.
A cemented habit is when users subconsciously think, “I’m bored,” and instantly Facebook comes to mind. They think, “I wonder what’s going on in the world?” and before rational thought occurs, Twitter is the answer. The first-to-mind solution wins.
But how do companies create a connection with the internal cues needed to form habits? The answer: they manufacture desire. While fans of Mad Men are familiar with how the ad industry once created consumer desire during Madison Avenue’s golden era, those days are long gone.
A multi-screen world, with ad-wary consumers and a lack of ROI metrics, has rendered Don Draper’s big budget brainwashing useless to all but the biggest brands. Instead, startups manufacture desire by guiding users through a series of experiences designed to create habits. I call these experiences ‘Hooks,’ and the more often users run through them, the more likely they are to self-trigger.
I wrote Hooked: How to Build Habit-Forming Products to help others understand what is at the heart of habit-forming technology. The book highlights common patterns I observed in my career in the video gaming and online advertising industries. While my model is generic enough for a broad explanation of habit formation, I’ll focus on applications in consumer internet for this post.
The trigger is the actuator of a behavior—the spark plug in the engine. Triggers come in two types: external and internal. Habit-forming technologies start by alerting users with external triggers like an email, a link on a web site, or the app icon on a phone.
By cycling continuously through successive desire engines, users begin to form associations with internal triggers, which become attached to existing behaviors and emotions. Soon users are internally triggered every time they feel a certain way. The internal trigger becomes part of their routine behavior and the habit is formed.
For example, suppose Barbra, a young lady in Pennsylvania, happens to see a photo in her Facebook newsfeed taken by a family member from a rural part of the State. It’s a lovely photo and since she’s planning a trip there with her brother Johnny, the trigger intrigues her.
After the trigger comes the intended action. Here, companies leverage two pulleys of human behavior – motivation and ability. To increase the odds of a user taking the intended action, the behavior designer makes the action as easy as possible, while simultaneously boosting the user’s motivation.
This phase of the Hook draws upon the art and science of usability design to ensure that the user acts the way the designer intends.
Using the example of Barbra, with a click on the interesting picture in her newsfeed, she’s taken to a website she’s never been to before called Pinterest. Once she’s done the intended action (in this case, clicking on the photo), she’s dazzled by what she sees next.
What separates Hooks from a plain vanilla feedback loop is their ability to create wanting in the user. Feedback loops are all around us, but predictable ones don’t create desire.
The predictable response of your fridge light turning on when you open the door doesn’t drive you to keep opening it again and again. However, add some variability to the mix—say a different treat magically appears in your fridge every time you open it—and voila, intrigue is created. You’ll be opening that door like a lab animal in a Skinner box.
Variable schedules of reward are one of the most powerful tools that companies use to hook users. Research shows that levels of dopamine surge when the brain is expecting a reward. Introducing variability multiplies the effect, creating a frenzied hunting state, activating the parts associated with wanting and desire.
Although classic examples include slot machines and lotteries, variable rewards are prevalent in habit-forming technologies as well.
When Barbra lands on Pinterest, not only does she see the image she intended to find, but she’s also served a multitude of other glittering objects. The images are associated with what she’s generally interested in – namely things to see during a trip to rural Pennsylvania – but there are some others that catch her eye also.
The exciting juxtaposition of relevant and irrelevant, tantalizing and plain, beautiful and common sets her brain’s dopamine system aflutter with the promise of reward. Now she’s spending more time on the site, hunting for the next wonderful thing to find. Before she knows it, she’s spent 45 minutes scrolling in search of her next hit.
The last phase of the Hook is where the user is asked to do a bit of work. This phase has two goals as far as the behavior engineer is concerned. The first is to increase the odds that the user will make another pass through the Hook when presented with the next trigger. Second, now that the user’s brain is swimming in dopamine from the anticipation of reward in the previous phase, it’s time to pay some bills.
The investment generally comes in the form of asking the user to give some combination of time, data, effort, social capital or money.
But unlike a sales funnel, which has a set endpoint, the investment phase isn’t about consumers opening up their wallets and moving on with their day. The investment implies an action that improves the service for the next go-around. Inviting friends, stating preferences, building virtual assets, and learning to use new features are all commitments that improve the service for the user.
These investments can be leveraged to make the trigger more engaging, the action easier, and the reward more exciting with every pass through the Hook.
As Barbra enjoys endlessly scrolling the Pinterest cornucopia, she builds a desire to keep the things that delight her. By collecting items, she’ll be giving the site data about her preferences. Soon she will follow, pin, re-pin, and make other investments that serve to increase her ties to the site and prime her for future loops through the Hook.
A reader recently wrote to me, “If it can’t be used for evil, it’s not a super power.” He’s right. And under this definition, habit design is indeed a super power. If used for good, habits can enhance people’s lives with entertaining and even healthful routines. If used to exploit, habits can turn into wasteful addictions.
But, like it or not, habit-forming technology is already here. The fact that we have greater access to the web through our various devices also gives companies greater access to us.
As companies combine this greater access with the ability to collect and process our data at higher speeds than ever before, we’re faced with a future where everything becomes more addictive. This trinity of access, data, and speed creates new opportunities for habit-forming technologies to hook users. Companies need to know how to harness the power of Hooks to improve peoples’ lives, while consumers need to understand the mechanics of behavior engineering to protect themselves from unwanted manipulation.
What do you think? Hooks are all around us. Where do you see them manufacturing desire in your life?
Here’s the gist:
Nir is speaking at The Next Web USA Conference in New York on December 10. Learn more about the conference here.
Have you ever read a business book and thought, “I could write that,” or imagined publishing a business book that would catapult you to the front of your industry? You are in good company. Whether to help lift their business profile, get more speaking opportunities or become an industry trendsetter, many entrepreneurs wish to publish.
If you ever decide to take it a step further, you’ll likely compare self-publishing and traditional publishing as I did a few months ago. I checked in with fellow entrepreneur Dan Emery, of New York City Guitar School, who has self-published several guitar books. “I decided to use my own lesson plans instead of published lesson plans and somewhere around student one thousand, I decided to turn it into a book,” says Dan.
He was eager to design a curriculum that reflected the school’s uniquely friendly and positive approach to learning guitar that combines having fun with the science of deliberate practice. He quickly found out, however, that no publishers were interested in the book. That’s when he decided to publish it himself, which has turned into a successful endeavor for him.
When I first decided to write a book — about women entrepreneurs who are running multi-million dollar businesses — I wasn’t going to consider traditional publishing. But I went for a run with my old friend Paul Greenberg, who is an award-winning published author. He expressed outrage at my plan while we jogged along the Hudson. “You can’t to pay to write a book! You should get paid!” he admonished. I protested that I was not an actual author, like he was, and would never get a meeting at a publishing company, but he insisted I should at least try the traditional way before going the self-publishing route.
Paul put me in touch with his former editor, who was took a personal interest in my topic. She then offered to connect me with three of the top literary agents in New York. To my delight and surprise, all three said they wanted the book. That’s when I knew I was on to something. I chose as a literary agent Zoe Pagnamenta, an entrepreneur herself who owns a boutique agency where all her authors get terrific individual attention, and we were off to the races. We set to work putting together a 40-page proposal, which I wrote over my Christmas holiday last year.
No man should pay for my misfortune and incapacity. Instead I should learn from them both, adapt to overcome them both, and turn them both into profit for the good of the whole world.
There are still important business lessons to be learned by America’s richest man — and who better to learn them from than Gates’ friend and fellow billionaire Warren Buffett?
In 2013, Gates traveled to Omaha, Nebraska, for Berkshire Hathaway’s annual shareholders meeting. “It’s always a lot of fun, and not just because of the ping-pong matches and the newspaper-throwing contest I have with Warren Buffett,” Gates writes in a LinkedIn post. “It’s also fun because I get to learn from Warren and gain insight into how he thinks.”
Gates outlined the three most important lessons he learned from Buffett. Here are the highlights:
When Gates first met Buffett, his immediate instinct was to focus on the surface of his success: picking and investing in stocks. But Gates quickly learned that key to Buffett’s success ran much deeper — it’s about the big picture of a business. “He has a whole framework for business thinking that is very powerful,” Gates writes.
Instead of focusing on the day-to-day details of the market, Buffett looks at overall growth. “He talks about looking for a company’s moat — its competitive advantage — and whether the moat is shrinking or growing,” Gates says. “He says a shareholder has to act as if he owns the entire business, looking at the future profit stream and deciding what it’s worth.”
Buffett famously takes time every year to send a letter to his shareholders, a practice that inspired Gates to start doing the same. While Buffett’s letters offer business and investing insights, Gates believes Buffett’s candor is what makes them stand out. “He’s been willing to speak frankly and criticize things like stock options and financial derivatives,” Gates says. “He’s not afraid to take positions, like his stand on raising taxes on the rich, that run counter to his self-interest.” Gates’ key takeaway: transparency is highly appreciated.
“No matter how much money you have, you can’t buy more time,” Gates reminds us, noting that Buffett understands this better than anyone. Buffett makes an effort to be available to his close advisers and always finds time to personally answer phone calls from them. “He’s very generous with his time for the people he trusts,” Gates says.
However, Buffett knows how valuable his time is, and doesn’t waste it in useless meetings, Gates says. Buffett prioritizes his time and spends it in ways that matter most to him.
Click here to read the full LinkedIn post.
Completely concur… and God is the very best and Wisest Business, Career, Entrepreneurial, Success, and Work partner I have ever had.
I want to say upfront that I believe in God and that there is design to the world and the people in it. For those of you who don’t believe this, I am asking you to allow me to hold these assumptions temporarily for specific reasons that will hopefully become clear. The purpose of this article is not to convert anyone; it is to build some logic into why, for me, the Bible is the best business book I have read.
Suppose it were actually true that God existed and sent his Son to us. If it were, then it would likely follow that the guidance He gave to us would help us deal effectively with people since people are part of His design. The biblical story is that God sent His son Jesus with a mission and message of reconciliation to mankind. If it is true that God created us, then looking at the invitation that He gives through Jesus tells us a lot about what people will respond to, and gives us a model for effective relationships.
Since working with people is most important in business, then, a by-product of following the Bible would be becoming more successful in working with others. Like the law of gravity, there would be basic things that work or do not work with people. For example, when dealing with customers who cheat us, if our first move is to punish the customers in some even small way, on average that would yield a set of outcomes. Rather, if our first move is to forgive the customers, that would also probably have a different set of outcomes.
When Peter cut off the ear of one of the soldiers who attempted to capture Christ, Jesus admonished Peter. (John 18:11). If we go about our daily lives judging people in a harsh way, then this would likely come through in some intangible way in how we are perceived by others. As much as we try, it is difficult to hide who we really are over a long period of time. In the Bible, when the mob was about to stone the woman convicted of adultery, Jesus asked that the person guilty of no sin come forth to cast the first stone (John 8:7). If we align our goals with those of a power much greater than ours, we are swimming with the current, not against it. I also believe it helps with leadership since people end up following, not really individuals, but the ideas those individuals stand for.
The best business book I have read is the Bible. Specifically, the New Testament contains rich instruction on relationships, both descriptively (how Jesus treats us) and prescriptively (how we treat each other in response). Ideals such as directly confronting people over offenses, working without garnering praise, and acknowledging that we have a limited ability to change people, are all emphasized in the context of His teaching. If you follow the guidance in it, I believe that, while your worldly success is not guaranteed, your chance of success will be higher. (For those of you reading this who are Christians, my intent is not to convey at all that we follow these principles for an outcome: it is to state what I have seen in my business life. God does not promise us any earthly reward for our submission to His principles).
Now, to end where I began, I want to say a few other things. I realize there are people who are very “successful” in business who do not believe in God or in a design, perhaps do not give it much thought, and have discarded these things. However, if you look closely at the majority of them, they were or are more or less following the guiding principles of the New Testament. Also, there are probably some very successful “bad” people who just go about and do as they wish with no reverence for anything other than themselves; however, I believe this case is much rarer than the popular media would make us believe.
I realize that not everyone shares these views and thoughts, and I, of course, respect people’s right to disagree. However, I am trying to convey what has been helpful to me– and in my professional life, I’ve found that the best lessons, whether they’re spiritual or related to business, have come from scripture.
It has been my personal experience that profits wisely shared with Wise Employees only serve to multiply profits.
Equally impressive is the fact that he’s done all that while paying his retail employees nearly twice the industry average.
According to Tindell’s book, “Uncontainable,” the average Container Store retail salesperson makes nearly $50,000 a year compared with what the Bureau of Labor Statistics says is a national average of just above $25,000.
In an interview with Business Insider’s Jenna Goudreau, Tindell says the secret to the company’s high wages is what he calls “the 1=3 rule,” meaning that one great employee will be as productive as three employees who are merely good.
As a result, Tindell feels he gets ahead by receiving three times the productivity of an average worker at only two times the cost.
“They win, you save money, the customers win, and all the employees win because they get to work with someone great,” he tells Business Insider.
Not for me it won’t. I may be a kind of throwback but Work is far too enjoyable and far too important a part of my very Nature for me to limit it to 3 days per week. As a matter of fact I often Work 7 days a week if you count having ideas and making notes about projects I intend to later pursue.
I cannot imagine only wanting to work 3 days per week or how unfulfilling that would be, but to me it would be extremely unfulfilling. Now if someone wants to pay me 7 days worth of compensation for 3 days worth of Work and effort than that is fine by me, But I would not simply screw away the other two days. I’d find something productive to do with them, and Work on that thing.
By the way simply having more time will not buy you more opportunities, more things, or more useful and fun activities or experiences. More money allows you to buy more control over your time, but more time alone will not purchase anything other than unproductive and wasted time.
More money will allow you to purchase more control of your life, but more time without more money will purchase nothing in itself. It is the time-to-money-ratio that is the pathway to profit and control of your time and resources, not the time in exchange for money ratio.
October 8, 2014: 12:11 PM ET
Carlos Slim, the Mexican telecom tycoon worth over $80 billion, believes life would be better with a three-day work week.
“You should have more time for you during all of your life — not when you’re 65 and retired,” Slim told CNNMoney’s Christine Romans on Tuesday.
But if Slim had his way, people would also work longer days and much later in life. He suggested 11-hour shifts and pushing the retirement age to 75.
Slim raised eyebrows over the summer by calling for a three-day work week, but he doubled down on that proposal on Tuesday.
“I am sure it will happen,” the 74-year-old told CNNMoney, though he conceded he’s not sure when.
While “machines should work 24 hours and services should work as much as possible,” Slim said people deserve more time for entertainment, family and to train for better jobs.
He also believes the radical change would give younger workers more opportunity to enter the workforce and be a positive for the economy and financial markets.
“It’s a society of knowledge and experience. You have better experience and knowledge when you are 60, 65 and 70,” Slim said.
The $83 billion man: It’s an interesting idea considering the source: a self-made billionaire who Forbes estimates is worth about $83 billion. Slim has been alternating the crown for the world’s richest man with Microsof (Tech30)founder Bill Gates, whose wealth is valued at nearly $81 billion…,
The only real Virtues of poverty are psychological and spiritual, and those virtues should be mastered by both rich man and poor man alike.
In all other respects poverty is a vice, and should be eradicated by both rich man and poor man alike.