Date Published: 10/15/2021
Every successful person, whether in sports or business, has certain crochets (liking) that they used to succeed. Let me give you an illustration. In sports, there are three types of levels in football: the player, the divisional winner, and the super bowl champion. There is a big gap between a player and a divisional winner. But, there is an even more significant gap between a divisional winner and a champion. What is the difference? Discipline.
Champions are willing to do what others will not. They are the first to show up to practice and the last to leave. They study the playbook many times and watch the films of their opponent. They go the extra five miles to win.
Successful people use similar habits to make money at the office or home. They study how money works, while others work for money. They will pay the price of attending a $1,000+ seminar, while others complain. And to an entrepreneur, success is a never-ending journey.
Habit # 1 - Entrepreneurs Buy Assets. The rule of thumb to determine what an asset "is" and "is not" is simple, if it generates money, it is an asset. Many people spend their money on liabilities such as cars, clothes, trips, cell phones, pagers, and more, while the top five percent invest in assets.
Is a house an asset? The common thought expressed among realtors is, yes, a home is an asset. Although it looks like an asset on paper, is it an asset? Let me give you a personal illustration.
Several years ago, my wife and I purchased a beautiful new home (hereafter, property #1) in a friendly, quiet neighborhood. Our Realtor said, "This would be a great asset for our portfolio." If that is true, why is it not making us any money?
How will we turn this into an asset? Soon, we will purchase property #2 and lease property #1. Property #1 has already greatly appreciated and has given us room to create a positive $100 - $350 a month passive income when we lease it out.
Habit # 2 - Entrepreneurs Value Time. Have you ever heard the phrase time is money? In all truth, that is correct. You will repeat yesterday's failure if you do not set your schedule up for success. Here are some tools that will help you. Plan your day the night before. Be as detailed as possible with your pre-success planning. I used my phone to set up and remind me of my schedule.
The rule of thumb to determine what an asset "is" and "is not" is simple, if it generates money, it is an asset. Ninety-five percent of the population spends money on liabilities such as cars, clothes, trips, and cell phones, to name a few, while the top five percent invest in assets.
In your online training, you will learn how to structure your business to run on autopilot. Also, you will focus 90% of your time on creating money and promoting your business, not trapped in administrative issues. Your business will be success driven.
Habit # 3 - Entrepreneurs Have a Mentor. No one achieves greatness by themselves. A wise business person will search for a teacher or someone to provide the steps to success. How do you find a mentor?
Ask friends, relatives, or coworkers until you develop a list of 15 -20 successful business mentor candidates. After you have chosen the one you feel most comfortable with, take them out to lunch and ask for their advice (Note: it would be wise to take notes, but ask for permission first).
At your lunch meeting, be mindful not to keep them for more than 1 hour, no matter how well the lunch goes. They will appreciate you respecting their time.
Also, please do not talk that much; spend your time listening and, like a sponge, soak in their wisdom; avoid the urge to talk too much. Here are four questions you might want to ask:
Questions to ask your mentor:
A. What steps did you take to achieve your goal?
B. What contributed most to your success?
What was your driving force? Can I work for you for FREE?
Why do you want to work for free? They will teach you valuable insights that only the rich can teach. After you help them further their dream, they will help you build yours; you must first give before you receive.
If you cannot find a mentor, do what I did go to the library or bookstore. Read every book you can get your hands on. I call these my "literary mentors." Ask for the book section, grab some Java, and go to work. I spent hours researching my literary mentors, their companies, and their business principles, and I even read books they referred to.
Habit # 4 - Entrepreneurs Network. In my option, networking is one of the most excellent unused tools to create success. Search out specialists in their field and develop a working relationship.
Make it your business to collect business cards. Collecting cards will help you create a pool of professionals for any future project or company you are developing.
Create a credible network team. List at least 50 professionals; CPA Bookkeepers, attorneys, Business Professionals, and Marketing Companies.
If you do not know any professionals, check the phone, newspaper, and the Internet. Call the company and ask for a media kit, brochures, or whatever material you can use.
Habit # 5 - Entrepreneurs are Committed to Details. It is a common practice for those that need help to overlook the fine print of business. But knowing the details is most important.
Let me share a personal approach we call "The Entrepreneur Test." Whenever my wife and I make a large purchase, for instance, a car, we take the time to read the entire contract, one line at a time.
Stay aware of the salesperson's impatient, squirming gestures to close the deal. Regardless of what the salesperson says, we sign after we feel comfortable. We pay attention to details, not the beat of a high-pressured salesperson.
After an hour of reading, we take another hour asking questions like "Explain this point"....are you getting the picture? Feel free to ask questions. If you get a response such as, "Do not worry, that is just a standard item on the contract," ask them to explain the standards. Ask, Ask, Ask.
Use open-ended questions like: "Tell me about the warranty" or "Could you explain what this word means." Remember, after you walk out the door, that salesperson is not obligated to pay the bill; you are. Again, ask every question you can come up with.
Lastly, get everything in writing to protect yourself. It is common for someone to come back and say, "I did not agree to that." Remember, details are essential.
We use the same technique with our attorney, financial advisor, and children's private school; we ask questions before we sign the dotted line. You must protect your money.
Another example: If you plan on renting or leasing property, go to the library and search for information on contracts. Also, go to your local computer store and purchase software on contracts and legal issues. This education is far less expensive than the hassles of ignorance.
If any questions you asked are not answered to your liking, ask if you could take the contract to be viewed by your legal representative. If they refuse, you know trouble is lurking in the background.
Habit # 6 - Entrepreneurs Have a Plan. Having a successful business plan will take your business to the next level. People often tell me they were too busy working to write a business plan. That sounds like an oxymoron.
Our rule is to start a company or project with a professional plan. Several "qualified professionals" must proofread the program four times before it receives the stamp of approval.
To develop our business plan, we used a professional software design. Programs that saved us time and thousands of dollars. It helped us secure investors for our business. Our business plan received high marks and answered every question our investor asked.
What are some of the guidelines that a business plan should entail? First, your business plan must be very detailed; spell it out as much as you can. Do not think you are boring your readers in fact they will appreciate you providing them with such good information. Plus, your mentor will see that you are very serious. If you have to explain one point to your reader, you have not completed your job.
Some agencies will encourage you to write a business plan with a maximum of two pages, three tops. It is okay to solicit investors that do not require it. But most investors and banks want a detailed business plan. So do your homework.
How long should it take to create your plan? It took me three weeks and a minimum of 14 hours a day to complete a 25-page professional business plan, and it was well worth the sacrifice.
Here is a user-friendly ingredient list. At a bare minimum, cover these points:
1. Executive Summary
2. Corporate Objectives
3. Company Location
4. Corporate History
5. Product/Service
6. Marketing Summary
7. Industry Analysis
8. Strategy and Implementation Summary
9. Sales Strategy
10. Sale Implementation
11. Milestones
12. Marketing Analysis
13. Competitive Analysis
14. Personnel Plan
15. Financial Plan
16. Break-even Analysis
17. Projected Cash Flow
18. Projected Balance Sheet
19. Business Ratio
Habit # 7- Entrepreneurs Protect Their Assets. Successful people protect themselves legally. They separate their assets from their business assets by incorporating. There are several types of cooperation, but we will cover two: Sole Proprietor and "C" Corporation.
A Sole Proprietor is the owner of the business. In litigation, the business owner bears the burden of the company. Everything is attached to the owner's name and their social security number (this is too risky). A corporation gives the owner (shareholders) limited liability to their investment.
You can get incorporated by a paralegal, notary, or attorney or do it yourself. We encourage you to have a legal representative of the courts do it for you. In closing, entrepreneurs own nothing; they control everything.
Habit # 8 - Entrepreneurs Have a Circle of Influence. Be careful who you spend your time with. I make it my business to spend time with people with the same passion as me. I am not worried if they play golf; I am interested if they are committed to success.
Listen to how people talk. If you hear negative words coming out of their mouths, such as: "I can't do that" or "I don't have the money,"; politely encourage them to change or dismiss themselves.
Look at the pattern of those you spend quality time with; are they prosperous and stable? Or are they around just for the ride?
Habit # 9- Entrepreneurs Get Legal Advice. Having an attorney is a costly undertaking. On the other hand, not having the proper legal advice can be very expensive. We use a private attorney and a legal service to protect our personal and business ventures.
A private attorney will help you with personal situations such as lawsuits and criminal cases. It's crucial to have your legal team on speed dial.
Legal services will provide you with services such as divorce, bankruptcy, credit harassment, taxes, real estate transactions, auto transactions, and contractor disputes, to name a few. We have used this service for the last 15 years, saving us time and money. Most legal services will offer them for a nominal retainer; the price varies depending on the service provider.
Habit # 10 - Entrepreneurs Pursue Continual Education. Here are several tools to help you expand your information bank. Get the newspaper and read the business section. Order magazines and read periodicals. Entrepreneurs constantly educate themselves on financial issues. Add to your annual budget; educational seminars. To stay abreast of current information, commit to attend a minimum of four workshops a year.
Read Books. The more information you take, the less time you will spend trying to reinvent the wheel. Give yourself a goal to read one book a month.
Habit # 11 - Entrepreneurs Create a System. Entrepreneurs make their money work for them by creating businesses that work around the clock without their help. In other words, the company operates whether or not the millionaire is present.
Let's take the fast food concept as an example. You drive to the window, place your order, go to the next window and pay for it, then move to the last window and pick up your order (three minutes tops).
You are happy because you received what you ordered, and the restaurant is comfortable because they got paid. Everybody is happy. Where were the owners of the fast food establishment during that entire transaction, probably in the Bahamas relaxing on the beach?
Entrepreneurs create businesses that will generate income without any assistance on their part. Wow, this is good stuff.
When you create your plan, ensure your business or service can run without being present. If your business requires attention, you have a job rather than a system.
Create a company that will free you to do fun things, like spending time with your family. Let your business pay you to attend your child's sporting event or a family trip.
Habit # 12 - Family Tithe. The true spirit of an a family is to give back. Some of the wealthiest families in the world give 10% of their money to their local church. Why? They understand how important it is to give to a worthy cause. You do not have to be this super spiritual person, but only have a heart to help others. In return, it will help you.
Now you have it better money habits to create income.