Finding A New Business Idea

By: Brian Tracy

Look for Opportunities

How do you find a new product or service, recognizing that 80 percent or more will be new in five years? Here's a series of ideas. Number one, begin with yourself. Begin with your own talents, your abilities, your experience, knowledge, interest, background, education, and so on. Look carefully at your current work, your current business, your current position, or your current product or service. Seek for what is called your own acres of diamonds. Look under your own feet.

Look Into Yourself

Here's a question. What qualities account for your greatest successes in life so far? What personal qualities and abilities have gotten you to where you are? And how could you apply those qualities and abilities to starting and building a new business?

If you already have a company, ask what are your companies' talents, abilities, experience, knowledge, interest, background, and so on. What qualities and talents and abilities have enabled your company to succeed up to now? Where can you specialize? Where can you make a difference?

Identify What You Really Enjoy

Number two is look for a product or service about which you can really become enthusiastic. Sometimes people become wealthy by translating or transforming their hobbies into a business. You will be most successful doing something or marketing something that you really love.

Every product must have a champion. Every product or service must have someone in the business who really, really loves the product or service and is eager to get out and tell other people about it.

Improve On Something Else

Number three, look for something that is an improvement on an existing product or service, not something brand new. Look for something that's cheaper or better quality. Or that has additional features or functions. Look for something that's an improvement.

Remember improving an existing successful product or service is the fastest and surest way to build a successful business. An idea only needs to be ten percent new and better to capture substantial market share. Brand new products or services are very risky.

Be Willing to Work Hard

The fourth key to finding a new product or service is this. Don't look for easy money. Don't look for gimmicks or useless knickknacks. Don't look for get-rich-quick schemes or rewards without working, because they're aren't any.

More people have wasted more time and more life and more money trying to find quick ways to make easy money than you can possibly imagine. So be willing to put in a lot of hard work before you start making real money in a business.

Success Takes Time

It takes two years to break even in the average business. It takes four years to show a profit. It takes maybe eight to ten years before it starts to generate real cash flow. So you have to be patient. If you're impatient, what will happen is you'll end up setting yourself further back than you can imagine.

Concentrate on Your Resources

By: Brian Tracy

The Principle of Mass requires that you concentrate on your best people, your best energies, and your limited resources in those areas where the greatest victories are possible. Restructure and reorganize your activities so that your best talents are focused on those results that can get you out of the crunch faster than any others.

Stay Flexible

The Principle of Maneuver is one of the greatest battlefield successes; it requires that you out-maneuver your enemy by attacking from the flank or the rear. In business, the practice of this principle requires that you try something new, and if that doesn't work, try something else. Be flexible and creative in your approach. Think of doing exactly the opposite of what you have done up until now. Keep all your options open. Survival and victory are your only considerations.

Gather All Available Information

The Principle of Intelligence means that you must get the facts about the situation. Learn everything you can. Ask questions, phone people, go onto the Internet. The more and better information you have, the better and more effective decisions you will be able to make.

Get Everyone Working Together

Concerted Action makes sure that everyone on your team is working together with common goals, common values, and clearly understood work assignments. Everyone should know what is going on and what everyone else is doing. One of the rules for military victory is that you never trust to luck or wish that something will turn up. Hope is not a strategy. Look to yourself and don't expect an easy victory.

Napoleon

Napoleon was once asked if he believed in luck in warfare. He replied, “Yes, I believe in luck. I believe in bad luck, and I believe that I will always have it. I therefore plan accordingly.” You should do the same. If you do have a streak of good luck, consider yourself blessed. But don't count on it or hope for it to happen.

You're the Boss!

Unity of Command is a military strategy that means that everyone must know that you are completely in command. You are in charge of your financial future. You are calling the shots. Everyone reports to you and answers to you. You can go back to democratic consensus later, but during crunch time, it must be clear to everyone that you are the boss.

Total Commitment to Your Financial Success

Finally, in taking action to resolve a crisis, perhaps the most important quality you can have is a total commitment to your financial success, to winning, to overcoming your difficulties, no matter what they are. The key to financial victory is for you to go on the attack, relentlessly moving forward. It has been said that boldness and audacity will get you into a lot of problems, but more, boldness and audacity will get you out of your problems as well. Take action immediately, and keep on taking action until you win.

Setting Your Goals

By: Brian Tracy

In my conversations with hundreds of top salespeople over the years, I have found that they all have one thing in common. They have taken the time to sit down and create a clear blueprint for themselves and their future lives. Even if they started the process of goal setting and personal strategic planning with a little skepticism, every one of them has become a true believer.

Becoming a True Believer

Every one of them has been amazed at the incredible power of goal setting and strategic planning. Every one of them has accomplished far more than they ever believed possible in selling and they ascribe their success to the deliberate process of thinking through every aspect of their work and their lives, and then developing a detailed, written road map to get them to where they wanted to go.

The Definition of Happiness

Happiness has been defined as, "The progressive achievement of a worthy ideal, or goal." When you are working progressively, step-by-step toward something that is important to you, you generate within yourself a continuous feeling of success and achievement.

You feel more positive and motivated. You feel more in control of your own life. You feel happier and more fulfilled. You feel like a winner, and you soon develop the psychological momentum that enables you to overcome obstacles and plough through adversity as you move toward achieving the goals that are most important to you.

Determine Your Values

Personal strategic planning begins with your determining what it is you believe in and stand for-your values. Your values lie at the very core of everything you are as a human being. Your values are the unifying principles and core beliefs of your personality and your character. The virtues and qualities that you stand for are what constitute the person you have become from the beginning of your life to this moment.

Your values, virtues and inner beliefs are the axle around which the wheel of your life turns. All improvement in your life begins with you clarifying your true values and then committing yourself to live consistent with them.

Fuzzy or Clear?

Successful people are successful because they are very clear about their values. Unsuccessful people are fuzzy or unsure. Complete failures have no real values at all.

Build Self-Confidence and Self-Esteem

Values clarification is the beginning exercise in building self-confidence, self-esteem and personal character. When you take the time to think through your fundamental values, and then commit yourself to living your life consistent with them, you feel a surge of mental strength and well-being. You feel stronger and more capable. You feel more centered in the universe and more competent of accomplishing the goals you set for yourself.

The Laws of Money

One of your major goals in life should be financial independence. You must aim to reach the point where you have enough money so that you never have to worry about money again. The good news is that financial independence is easier to achieve today than it has ever been before.

The Law of Abundance

We live in an abundant universe in which there is sufficient money for all who really want it and are willing to obey the laws governing its acquisition. People become wealthy because they decide to become wealthy. People are poor because they have not yet decided to become rich.

The world is full of thousands of people who have had far more difficulties to overcome than you could ever imagine, and they've gone on to be successful anyway. So can you.

The Law of Exchange

Money is the medium through which people exchange their labor in the production of goods and services for the goods and services of others. The amount of money you earn is the measure of the value that others place on your contribution. To increase the amount of money you are getting out, you must increase the value of the work that you are putting in.

The Law of Capital

Your most valuable assets, in terms of cash flow, are your physical and mental capital—your earning ability. How much time you put in and how much of yourself you put into that time largely determine your earning ability. Time and money can be either spent or invested. If you invest your time or money in becoming more knowledgeable and better skilled, you can increase your value.

The Law of Time Perspective

The most successful people in any society are those who take the longest time period into consideration when making their day-to-day decisions. Your ability to practice self-mastery, self-control, and self-denial, to sacrifice in the short term so you can enjoy greater rewards in the long term, is the starting point of developing a long time perspective.

The Law of Saving

Financial freedom comes to people who save 10 percent or more of their income throughout their lifetime. Savings today are what guarantee the security and the possibilities of tomorrow.

The Law of Conservation

It's not how much you make but how much you keep that determines your financial future. The true measure of how well you are really doing is how much you keep out of the amount that you earn.

The Law of Three

There are three legs to the stool of financial freedom: savings, insurance, and investment. One of your major responsibilities, to yourself and to the people who depend on you, is to build a financial fortress around yourself over the course of your working lifetime. To be fully protected against the unexpected, you require liquid savings equal to two to six months of normal expenses.

The Law of Investing

Investigate before you invest. This is one of the most important of all the laws of money. You should spend at least as much time studying a particular investment as you do earning the money to put into that particular investment. The only thing easy about money is losing it. If you think you can afford to lose a little, you're going to end up losing a lot. Invest only with experts who have a proven track record of success with their own money.

The Law of Magnetism

The more money you save and accumulate, the more money you attract into your life. The Law of Magnetism has been written about for more than 5,000 years. It explains much about success and failure in every area of life, especially in the financial arena. The more positive emotion you associate with your money, the more opportunities you will attract to acquire even more.

The Seven P Formula for Marketing Success

Once you have developed your marketing strategy, there is a seven P formula you should continually use to evaluate and reevaluate your business activities. These seven are: product, price, promotion, place, packaging, positioning, and people. As products, markets, customers, and needs change rapidly, you must continually revisit these seven P's to make sure you are on track and achieving the maximum results possible for you in today's Market.

Product

To begin, develop the habit of looking at your product as though you were an outside marketing consultant having been brought in to help your company decide whether or not it is in the right business at this time. Ask critical questions such as: Is your current product or service, or mix of products or services appropriate and suitable for the market and the customers of today?

Prices Deserve Attention

The second P in the formula has to do with price. Develop the habit of continually examining and reexamining the prices of the products and services that you sell to make sure they are still appropriate to the realities of the current market. Sometimes you need to lower your prices. At other times, it may be appropriate to raise your prices. Many companies have found that the profitability of certain products or services does not justify the amount of effort and resources that go into producing them. By raising their prices, they may lose a percentage of their customers, but the remaining percentage generates a profit on every sale. Could this be appropriate for you?

Promotion

The third habit in marketing and sales is for you to develop the habit of thinking in terms of promotion all the time. Promotion includes all the ways you tell your customers about products or services and how you then market and sell to them. Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Experienced copywriters can often increase the response rate from advertising by 500 percent by simply changing the headline on the advertisement.

Place

The fourth P in the marketing mix is the place where your product or service is actually sold. Develop the habit of reviewing and reflecting upon the exact location where the customer meets the salesperson. Sometimes a change in place can lead to a rapid increase in sales.

Packaging

The fifth element in the marketing mix is packaging. Develop the habit of standing back and looking at every visual element in the packaging of your product or service through the eyes of a critical prospect. Remember, people form their first impression about you within 30 seconds of seeing you or some element of your company. Small improvements in the packaging or external appearance of your product or service can often lead to completely different reactions from your customers.

Positioning

The next P is positioning. You should develop the habit of thinking continually about how you are positioned in the hearts and minds of your customers. How do people think about you and talk about you when you are not present? How do people think and talk about your company? What positioning do you have in your market, in terms of the specific words that people use when they describe you and your offerings to others?

People are Everything

The final P is people. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. Your ability to select, recruit, hire, and retain the proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put together.

The Law of Time Perspective

The most successful people in any society are those who take the longest time period into consideration when making their day-to-day decisions. This insight comes from the pioneering work on upward financial mobility in America conducted by Dr. Edward Banfield of Harvard University in the late 1950's and early 1960's. After studying many of the factors that were thought to contribute to individual financial success over the course of a person's lifetime, he concluded that there was one primary factor that took precedence over all the others. He called it “time perspective.”

Plant Trees

What Banfield found was that the higher a person rises in any society, the longer the time perspective or time horizon of that person. People at the highest social and economic levels make decisions and sacrifices that may not pay off for many years, sometimes not even in their own lifetimes. They “plant trees under which they will never sit.”

Doctors

An obvious example of someone with a long time perspective is the man or women who spends ten or twelve years studying and interning to become a doctor. This person takes extraordinarily long time to lay down the foundation for a lifetime career. And partially because we know how long it takes to become a doctor, we hold doctors in the highest esteem of any professional group. We appreciate and admire the sacrifices that they have made in order to be able to practice a profession that is so important to so many of us. We recognize their long time perspectives.

Long Time Perspectives

People with long term perspectives are willing to pay the price of success for a long, long time before they achieve it. They think about the consequences of their choices and decisions in terms of what they might mean in five, ten, fifteen, and even twenty years from now.

Short Time Perspectives

People at the lowest levels of society have the shortest time perspectives. They focus primarily on immediate gratification and often engage in behaviors that are virtually guaranteed to lead to negative consequences in the long term. At the very bottom of the social ladder, you find hopeless alcoholics and drug addicts. These people think in terms of the next drink or the next fix. Their time perspective is often less than one hour.

Delayed Gratification is the Key to Financial Success

Your ability to practice self-mastery, self-control, and self-denial, to sacrifice in the short term so you can enjoy greater rewards in the long term, is the starting point of developing a long time perspective. This attitude is essential to financial achievement of any kind.

Create Your Daily Personal Growth Schedule

There are seven disciplines you must develop if you want to achieve all that is possible for you. You can learn these disciplines through practice and repetition until they become automatic.

Goal Setting

Every morning, take three to five minutes to write out your top goals in the present tense. Get a spiral notebook for this purpose. By writing out your ten goals at the beginning of each day, you will program them deep into your subconscious mind.

This daily goal writing will activate your mental powers. It will stimulate your mind and make you more alert. Throughout the day, you will see opportunities and possibilities to move more rapidly toward your goals.

Planning and Organizing

Take a few minutes, preferably the night before, to plan out every activity of the coming day. Always work from a list. Always think on paper. This is one of the most powerful and important disciplines of all for high performance.

Concentration on your Highest-Value Activities

Your ability to work single-mindedly on your most important task will contribute as much to your success as any other discipline you can develop.

Exercise and Proper Nutrition

Your health is more important than anything else. By disciplining yourself to exercise regularly and to eat carefully, you will promote the highest possible levels of health and fitness throughout your life.

Learning and Growth

Your mind is like a muscle. If you don't use it, you lose it. Continuous learning is the minimum requirement for success in any field.

Time for Important People in Your Life

Relationships are everything. Be sure that in climbing the ladder of success, you do not find it leaning against the wrong building. Build time for your relationships into every day, no matter how busy you get.

Time for Important People in Your Life

These seven disciplines will ensure that you perform at the highest level and get the greatest satisfaction and results from everything you do. Study these seven disciplines and then make a plan for how you can incorporate each of them into your daily life.

Customers for Life

Never Worry About Money Again

What is the purpose of a business? Every time I ask this question during a business seminar, the immediate answer that I get back is, "To make a profit."

The Real Purpose of A Business

But this answer is wrong. The purpose of a business is to create and keep a customer. If a business successfully creates and keeps customers in a cost-effective way, it will make a profit while continuing to survive and thrive. If, for any reason, a business fails to attract or sustain a sufficient number of customers, it will experience losses. Too many losses will lead to the demise of the enterprise.

Why Businesses Fail

According to Dun and Bradstreet, the single, most important reason for the failure of businesses in America is lack of sales. And, of course, this refers to resales as well as initial sales.

So your company's job is to create and keep a customer, and your job is exactly the same. Remember, no matter what your official title is, you are a salesperson for yourself and your company. And the best way to increase your value as a salesperson is to build your customer base.

Why Businesses Succeed

The two most important words to keep in mind in developing a successful customer base are Positioning and Differentiation.

Positioning refers to the way your customers think and talk about you and your company when you are not there. The position that you hold in the customer's mind determines all of his reactions and interactions with you. Your position determines whether or not your customer buys, whether he buys again and whether he refers others to you. Everything that you do with regard to your customer affects the way your customer thinks about you.

The Key to Competitive Advantage

Differentiation refers to your ability to separate yourself and your product or service from that of your competitors. And it is the key to building and maintaining a competitive advantage. This is the advantage that you and your company have over your competitors in the same marketplace - the unique and special benefits that no one else can give your customer.

Select Your Customers Carefully

When you begin to think about acquiring and keeping customers for life, you need to think about the particular types of customers for whom your competitive advantage is so important that they would be poorly served by using anyone else's product. You need to then emphasize again and again that the special features and benefits you offer are so important that they should not even think of going somewhere else. If, for any reason, you fail to do this, you may lose the customer and all the work you've done in building that relationship in the first place.

Pump Up Your Profits

There is a truism that 50 percent of advertising is wasted, but no one ever knows for sure which 50 percent it is. As a result, advertising budgets always seem higher than necessary. This problem persists in many areas of business today. Money is being wasted, but no one is exactly sure where and how it is happening.

Low Profits or No Profits

Many companies today are earning low profits or no profits because their costs of doing business are not coordinated with their sales. Many products and services are priced by people who are completely unaware of the real costs involved in bringing these products or services to the market. These mistakes in pricing are then buried in the overall operations and general revenues of the business.

Conduct a Profit Analysis on Every Product

One of the most important parts of the Turbostrategy process is for you to conduct a complete profit analysis on each product or service you sell. Very few companies have ever done this. But when you begin applying profit analysis in your company, you can often increase your profits dramatically.

High-Volume vs. High Profit Customers

As you examine these numbers, you will find that, in many cases, your biggest customers are not your most profitable customers, and your biggest selling products or services are not your most profitable ones either. You may find that your costs of doing business with some customers and with some products are so high that it is hardly worth the investment of people are resources. This can only be determined by taking a hard look at the numbers.

Focus on Cash Flow

You need to be your own turnaround specialist all the time, and most especially when business slows for any reason. To pump up your profits, you do a complete profit analysis on your business and move immediately to focus the energies of the company on those areas that represent the very best sources of net cash. This process requires that you continually analyze your business so that you know exactly the profitability of every product or service you sell in comparison with every other product or service you sell, right down to the penny.

From Most to Least Profitable

The fact is that with a little effort, every single product or service can be organized on a scale from the most profitable to the least profitable, both on a per item or per hour basis, and in net dollar amounts. There is always one that is more profitable than any other.

Determine Profitability

You begin your profit analysis by determining the exact gross sales revenues that you receive from a product or service after all subtractions for defects, returns, breakage, loss, wastage, and bad debts. Take every single deduction so that your gross dollar amount is completely accurate, and you are crystal-clear about the exact amount you are netting from sales.

Face the Bitter Truth

You will probably find that fully half of your product and service offerings are generating very little profit or even causing you to lose money with every sale. A turnaround specialist would immediately either raise the prices of the low-profit items or discontinue them altogether. You must do the same.

Review Your Flight Options

Once you have become clear about who you are, what you want, and what your true goals are in each area of your life, you can begin to evaluate all the different routes by which you can reach your destination. Now you can determine the strategies and tactics that you can use to achieve your goals and arrive at your destination on schedule.

Develop Options Continually

One of the most important rules that I have ever learned is this: You are only as free as your well-developed options. Before you can plan your time and your life, you must be absolutely clear about both the hourly rate that you are earning today and the hourly rate that you want to earn in the future. Every hour that you spend on a low-value or no-value activity is costing you $25, $50, or more.

Determine the Highest and Best Use of Your Time

Whatever job you choose to take, company you choose to make with your money, or time you choose to spend on a particular activity, think it through carefully in advance and be certain that you are making the highest and best use of your time and resources.

Refuse to Settle

Abraham Maslow once wrote, "The story of the human race is the story of men and women selling themselves short." Many people, because of fear and timidity, settle for far less than they are truly capable of achieving. They stay in jobs they don't like. They stay in relationships that don't make them happy. They invest their money in things they don't understand and leave their money there long after they realize they've made a mistake. If you are not satisfied with any part of your life, with your current seat selection, remember that you can always pay a price to be free.

Ask for What You Want

In business and in your personal life, remember that every term or condition that you are ever offered has been decided by someone and can be changed by someone else. Whether this involves the pay and conditions of a job, the terms of a contract, the costs of products or services, rental or lease rates of offices or equipment, or bank terms for loans of credit, if you are not happy for any reason, don't be reluctant to ask for something different.

Cast a Wide Net

The rule with ideas is this: Quality is a function of quantity. This means that the more ways you achieve your goal that you consider before you embark on your journey, the better will be the quality of the choice you make. Cast a wide net. Don't fall in love with the first idea that occurs to you. You must continually remind yourself that emotions distort evaluations. This means that the more emotional you become about a course of action at the beginning, the less able you will be to make the best decisions and determine the best way to reach your destination.

Become Everything You Are Capable of Becoming

The turning point in my life came when I discovered the law of cause and effect, the great law of the universe, and human destiny. I learned that everything happens for a reason. I discovered that success is not an accident. Failure is not an accident, either. I also discovered that people who are successful in any area usually are those who have learned the cause-and-effect relationship between what they want and how to get it.

Determine Your Personal Growth and Development Values

To realize your full potential for personal and professional growth and development, begin with your values as they apply to your own abilities. As you know, your values are expressed in your words and actions.

You can tell what your values are by looking at what you do and how you respond to the world around you. Your values are the root causes of your motivations and your behaviors.

Clarify Your Personal Growth and Development Vision

Create a long-term vision for yourself in the area of personal growth. Project forward five or ten years and imagine that you are developed fully in every important part of your life. Idealize and see yourself as outstanding in every respect. Refuse to compromise on your personal dreams.

Set Goals for Your Personal Growth and Development

Now take your vision and crystallize it into specific goals. Here is a good way to start. Take out a piece of paper and write down ten goals that you would like to achieve in the area of personal and professional development in the months and years ahead. Write in the present tense, exactly as if you were already the person you intend to be.

Determine exactly what you want to be able to do. Decide who you want to become. Describe exactly what you will look like when you become truly excellent in your field and in your personal life.

Upgrade Your Personal Knowledge and Skills

Set specific measures for each of your goals. If your goal is to excel in your field, determine how you will know when you have achieved it. Decide how you can measure your progress and evaluate your success.

Perhaps you can use as a measure the number of hours you study in your field each week. Perhaps you can measure the number of books you read or the number of audio programs you listen to. Perhaps you could measure your progress by the number of sales you make as the result of your growing skills.

Develop Winning Personal Growth and Development Habits

Select the specific habits and behaviors you will need to practice every day to become the person you want to become. These could be the habits of clarity, planning, thoroughness, studiousness, hard work, determination, and persistence.

The Need to Lead

The greatest need we have today, in every area, is for men and women to practice the values of integrity, discipline, responsibility, courage, and long time perspective, both as individuals and in their families. These are the key qualities of leadership.

Our society needs leaders at all levels who practice the principles that lead to long-term success. Especially, we need people in positions of authority and political power to support and encourage others, whose lives and work they influence, to develop character and resist the tendency to act expediently in ways that are harmful to themselves and others.

Everyone needs to take "The Values Pledge," to live by it, and then encourage others to live by it. It is only the solid bulwark of character, based on values, virtues, long-term thinking, and the accurate assessment of secondary consequences that can curb and mitigate the destructive influences and behavior of the Expediency Factor (the E-Factor)

Live In Truth

The philosopher Immanuel Kant postulated what he called "The Universal Maxim." He suggested that "you should live your life as though your every act were to become universal law for all people." The very best judge of truth for you is to ask, "Is it true for me?" If everyone was to be encouraged to live their life as though your every act were to become universal principle for all others, most government policies and programs would be abolished overnight. The fact is, that the only way that many "something for nothing" ideas in government and society can be put forward is with the hope that most people will not take advantage of them.

Think about it. What if everyone were to go on welfare? What if everyone were to apply for every government program that was available to them? What if everyone dedicated themselves to doing the very least amount of work that they could get away with? What if everyone began spending all their time trying to get free money from anywhere that it might be available?

Four Questions to Stay on Track

There are four questions that you can ask and answer every day to keep yourself on track in each part of your life. First, ask yourself; "What kind of a world would this be if everyone in it was just like me?"

When you ask and answer this question honestly, you will admit that if everyone in the world was just like you, this would probably not be the best of all possible worlds. Look inside yourself and think about some of the things that you could change or do differently to become a better "citizen of the world."

The second question you can ask is, "What kind of a country would America be, if everyone in it was just like me?"

This is perhaps the most important question that we can ask and answer for ourselves. If everyone in America did the same thing that you did, every single day, would America be better, happier, healthier, and a more prosperous democracy? If not, what are some of the changes that you could make in your behaviors that would make America a better place?

The third question you can ask is, "What kind of a company would my company be if everyone in it was just like me?"

If you are honest with yourself, you will see different things that you could do to become a more valuable and important contributor to your company. Perhaps you should start a little earlier, work a little harder or stay a little later. Perhaps you could volunteer for more assignments, or upgrade your knowledge and skills as they relate to your job. How could you become the very best person you could possibly become at your work?

The final question, and perhaps the more important, is, "What kind of family would my family be if everyone in it was just like me?"

If everyone in your family behaved the way you do, and treated everyone else the way you treat them, would your family be a warmer, happier, and more loving group of people? What could you do, starting today, to be a better family member?

Take the High Road

The true mark of the superior person is that he sets high standards for himself, and refuses to compromise those standards for any reason. He sees himself as a role model for others. He behaves at all times as if everyone was watching, even when no one is watching.

The truly superior person does not give into forces of expediency. He does not seek something for nothing. He refuses to take anything to which he is not entitled. He insists upon earning everything he gets. He practices the Golden Rule and treats everyone the way he would like to be treated himself. He sets high standards for himself and continually strives to meet those standards. If everyone in America were to take the pledge below, this would be a better country in every way.

Where to Put Your Money Conservatively

There are three places (besides savings accounts) where you can park your savings that will give you high degrees of safety and liquidity: money market accounts, certificates of deposit (CDs), and government saving bonds.

Money Market Accounts

Money market accounts are available at your bank and pay a higher rate of interest than savings accounts. They are also quite competitive, so you should shop around and look at what different banks offer. As soon as your savings account balance exceeds $1,000, move that money into a money market account at a higher rate of interest.

Certificates of Deposit

Another savings instrument that you may consider is a certificate of deposit (CD). These are issued by banks, savings and loans, and other financial institutions for periods of time ranging from 30 days up to 10 years. The longer you lock up your money in a CD, the higher the interest rate you will receive.

The weakness with CDs is that if you need your money back before the date of maturity there are often severe penalties. You should find out what they are before you purchase a CD in the first place. CDs pay higher interest rates than money market accounts, and are safe places to put your savings. Nonetheless, they are not as flexible as the third option, which is a government savings bond.

Government Savings Bond

Government savings bonds are the most conservative of investments. They are safe and secure, and they pay reasonable rates of interest. They are easily negotiable into cash if you need the money back at any time. They're backed by the full credit of the issuing government. In other words, you cannot lose money on a government savings bond unless the entire country goes broke.

Invest your Savings

These three types of investments are perfect places for you to invest your three to six months of savings. You will get the highest return possible with absolute security and safety principle.

The Power of Leverage

Studying and practicing the principles of effective delegation have given you the foundation necessary to exploit the power of leverage. We will now examine other forms of this key tool of professional and business success. Each of the seven forms of leverage can help you expand the reach of your own talents and strengths. Each involves building on the work, talents, experiences, and contacts of other people.

Leveraging Other People's Energy

The most productive people make sure they have time for the few things that give them the highest payoff by routinely seeking to delegate or outsource their lower-value activities.

Leveraging Other People's Knowledge

Applying one simple piece of key knowledge to your situation can make a world of difference in the result you achieve. Finding and applying knowledge from another source can spare you tremendous amounts of money and labor. Follow the lead of successful people and scan books, magazines, tapes, articles, and conferences for ideas and insights you can use to help you achieve your goals faster.

Leveraging Other People's Money

Knowing how and when to take advantage of other people's money—by borrowing or otherwise tapping into other people's financial resources—empowers you to achieve things that would be beyond your reach if you relied solely on your own resources. Seek out opportunities to borrow and invest, achieving returns in excess of the cost of the borrowed funds. Among the many sources for funds, consider, for example, chartered banks, savings and loan associations, venture capitalists, and public and private offerings of securities.

Leveraging Other People's Successes

Study the successes that other people and companies have achieved to gain insights into their challenges and solutions. Most successful people have paid their dues in terms of money, energy, commitment, and even failure to arrive at the top of their fields. Learn from their experiences.

Leveraging Other People's Failures

As Benjamin Franklin said, "Man can either buy his wisdom or borrow it. By buying it, he pays full price in personal time and treasure. By borrowing it, he capitalizes on the lessons learned from the failures of others." Listen carefully to the stories of truly successful people. Those who genuinely wish to support you will share with you their failures as well as their successes.

Leveraging Other People's Ideas

A single good idea, developed with passion and commitment, can give birth to a fortune. The greater your exposure to a range of ideas—gained through reading, studying, interaction, and experimentation—the greater the chance you will come across one that will lead you to enduring success.

Leveraging Other People's Contacts of Other People's Credibility

Everyone you know has friends, acquaintances, and professional contacts. Many of these people can make a positive impact on your career or business. Among all the people you know or are connected to in some way, who might open doors for you?

Keeping Your Sales Funnel Full

Professional selling has three stages, which have been the same throughout history. They are prospect, present, and follow up. These three phases constitute the three parts of the "sales funnel." If your sales and income are down, it is because you are not prospecting enough, presenting enough, or following up and closing enough. The way to increase your sales is usually for you to increase the quality or quantity of your activities in one or more of these areas.

Imagine Your Funnel

Imagine the basic sales model as a funnel. At the top of the funnel, you put in prospects. You have to call on a certain number of people, or suspects, to get a certain number of prospects. This number varies depending on the market, your product or service, your individual skills in prospecting, advertising, and many other factors.

Presenting

The second part of the sales funnel is presenting. There is a direct ratio between the number of people you call on initially and the number of people who will agree to meet with you. Let us say, for example, that you have to call on twenty prospects to get five presentations. This would give you a ratio of 20 to 5 for your prospecting activities. Selling is very much a numbers game.

Follow Up and Close

In the third part of the sales funnel you have following up and closing. Let us say that you have to follow up with two prospects to get one sale. What this means is that you have to put twenty prospects in the top of the funnel to get one sale out of the bottom of the funnel, a ratio of 20 to 1. The rule therefore is this "keep your funnel full."

Prospecting Power

The definition of a good prospect is "Someone who can and will buy and pay within a reasonable period of time." Do not waste your precious selling time with nice people who do not have the authority, money, or ability to buy from you. Think continually about your personal income, and always be sure that the person you are talking to can contribute to that income soon enough to justify the time you are investing in him or her.

Qualities of a Good Prospect

• The prospect has a genuine need that your product/service can fill.
• The prospect is friendly toward you and have a favorable impression of your company and industry.
• The prospect is willing and able to make a buying decision in the near future.
• The prospect is a good potential source of further sales and referrals.

Qualities of Poor Prospects

• The prospect has no money or need for your product or service.
• The prospect is critical of you, your company, or your product.
• The prospect immediately haggles and complains about your price.
• The prospect is indecisive about purchasing from you or anyone.

The Law of Planning

Every minute spent in planning saves ten minutes in execution. The purpose of strategic planning in a corporation is to reorganize and restructure the activities and resources of the company so as to increase the “return on equity,” or return on the money invested and working in the company. The purpose of “personal strategic planning” is for you to increase your “return on energy,” the return on the mental, emotional, physical, and spiritual capital you have invested in your life and career.

Every Minute

Every minute that you spend planning your goals, your activities, and your time in advance saves ten minutes of work in the execution of those plans. Therefore, careful advance planning gives you a return of ten times, or 1,000 percent, on your investment of mental, emotional, and physical energy.

10-12 Minutes

It takes only about 10-12 minutes for you to make up a plan for your day. This investment of 10-12 minutes will save you time of approximately two hours per day, or a 25 percent increase in productivity and performance, in ROE, from the first day that you begin planning your day in advance.

Time Planner

The key to personal efficiency is for you to use a good time planner. Virtually any planner will work if you will discipline yourself to use it as the core of your time management system. Today, Palm Pilots and personal digital assistants (PDA), in combination with personal computers, can enable you to plan your time with greater efficiency than has ever been possible.

Master List

Begin with a master list as the foundation of your time planning system. Write down everything that you can think of that you will need to do for the indefinite future. As new ideas, goals, tasks, and responsibilities arise; write them down on your master list. Don't trust them to memory. Plan each month in advance by transferring the appropriate items from your master list to your monthly list. This is best done the last week of each month. Plan each week in advance by transferring items from your monthly list to your weekly list. This is best done the weekend before.

Plan Everything in Detail

Plan every project, meeting, and goal in detail, before you begin. The very act of planning forces you to think better and more accurately about everything you do. The more you think about and plan something on paper, the faster and more efficiently you will accomplish it when you start work.

Regular Planning

Regular planning assures that you spend more time on activities of higher value. This increases effectiveness and your efficiency in everything you do. Perhaps, the most important rule of all if for you to "think on paper!"

As Within, So Without

Aristotle said that the ultimate aim or purpose or human life is to achieve your own happiness. You are the very happiest when what you are doing on the outside is congruent with your values on the inside. When you are living in complete alignment with that which you consider to be good, right, and true, you will automatically feel happy and positive about yourself and your world.

Know What You Really Want

Stephen Covey once said, "Be sure that, as you scramble up the ladder of success, it is leaning against the right building." Many people work hard to achieve goals that they think they want only to find, at the end of the day, they get no joy or satisfaction from their accomplishments. They ask, "Is this all there is?" This occurs when the outer accomplishment is not in harmony with your inner values. Don't let this happen to you.

Trust Your Intuition

Self-trust is the foundation of greatness. Self-trust comes from listening to your intuition, to your "still, small voice" within. Men and women begin to become great when they begin to listen to their inner voices and absolutely trust that they are being guided to a higher power each step of the way. Living in alignment with your true values is the royal road to self-confidence, self-respect, and personal pride. In fact, almost every human problem can be resolved by returning to values.

Watch Your Behavior

How can you tell what your values really are? The answer is simple. You always demonstrate your true values in your actions and especially your actions under pressure. Whenever you are forced to choose between one behavior and another you will always act consistent with what is most important and valuable to you at that moment. Values, in fact, are organized in a hierarchy. You have a series of values, some of them very intense and important and some of them weaker and less important. One of the most important exercises you can engage in to determine who you really are and what you really want is to organize your values by priority. Once you are clear about the relative important of your values, you can then organize your outer life so that it is in alignment with them.

Determine Your Hearts Desire

The spiritual teacher Emmet Fox wrote about the importance of discovering your "hearts desire." What is your hearts desire? As a friend of mine asks, "What do you want to be famous for?" What words would you like people to use to describe you when you are not there? What would you like someone to say about you at your funeral? What kind of reputation do you have today? What kind of reputation would you like to have sometime in the future?

Your Past is Not Your Future

Many people had difficult experiences growing up. They fell on hard times and became associated with the wrong people. Some were convicted and sent to prison for crimes. But at a certain point in life, they decided to change. They thought seriously about what kind of person they wanted to be known as, and thought of, in the future. They decided to change their lives by changing the values that they lived by. By making these decisions and sticking to them, they changed their lives. Remember, it doesn't matter where you're coming from; all that really matters is where you're going.

How to Charm Anyone

Psychologists tell us that the core of personality is self-esteem. This has best been defined as "how much you like yourself." Your self-esteem is the sum total of how important and valuable you feel you are at any moment.

The Secret of Charm

The deepest craving of human nature is the need to feel valued and valuable. The secret of charm is therefore simple: make others feel important.

Five Ways to be Charming

• Acceptance. The greatest gift you can give other people is the attitude of "unconditional positive regard." That is you accept them in their entirety, without limitation. You never criticize or find fault. You are totally accepting of everything about them. This is the starting point of being charming.
• Appreciation. Whenever you express appreciation to others for something they have done, small or large, their self-esteem increases. They feel more competent and capable. Their self-image improves and their self-respect soars. And how do you trigger this wonderful feeling in others? It is simple. You say "thank you" on every occasion, for any large or small reason.
• Approval. It is said that "babies cry for it, men die for it." Throughout life, all humans have a deep subconscious need for approval of their actions and accomplishments. No amount of approval ever satisfies for long. The need is ongoing, like the need for food and rest. People who continually seek opportunities to express approval are welcome wherever they go. Perhaps the best definition of approval is "praise." Just remember, whenever you praise other people for something they have done, their self-esteem is elevated.
• Admiration. As Abraham Lincoln said, "Everybody likes a compliment." When you give people a genuine, sincere compliment about a trait, possession, or accomplishment, they automatically feel better about themselves. They feel acknowledged and recognized. They feel valuable and important. They like themselves more, and they like you more. Compliment a person on an article of clothing. Compliment someone on a trait, like punctuality or persistence. Compliment for small things as well as large.
• Attention. This is perhaps the most important quality of all. It is the most powerful behavior for building self-esteem and is the key to instant charm. The more closely you pay attention to other people, the more valuable and important they will feel they are, and the more they will like you.

Five Factors That Banks Look For

There are five factors that banks look for before making a loan to you, or any businessperson. These are called the "five C's" of lending or borrowing. You must be prepared to demonstrate all five when you approach a bank for a loan.

1. Collateral.

First, banks look for collateral. What assets are you going to put up to cover the loan? Collateral is something that can be sold for cash fairly quickly to repay the bank in case your business is not successful.

2. Character.

Banks look for character. What is your previous track record with regard to loans? What kind of character do you have, in terms of honesty and dependability? Who knows you? Who will vouch for you?

3. Credit Rating.

Banks look at your current credit rating. How much money have you borrowed and repaid in the past? How good is your credit history today? Your credit rating is a very precious thing that follows you wherever you go. I have known many people whose entire adult lives have been ruined because they have been sloppy or indifferent with their credit. They have failed to make credit card payments, utility payments, or rent payments when they were due. In one or more of these cases, they have been reported to a national credit bureau. This negative credit rating has then dogged them for as long as 10 years, wherever they went, anywhere in the country. Don't let this happen to you.

4. Capital.

Banks want to know the amount of capital you have. How much of your own money are you willing to invest? This is a measure of how deeply committed you are to the success of the enterprise.

5. Confidence.

The last factor that banks use to determine whether to lend you money is their level of confidence in you. In the final analysis, the individual banker must have confidence that you are the kind of person who is going to succeed in the business that he or she is lending you money to start of build.

Banking Relationships Mature over Time

Borrowing money from banks is a progressive series of financial transactions that develop over time. When you first attempt to borrow money, most banks will want $5 worth of collateral, personal investments, and other assets for every $1 that they will lend you. They will also want personal guarantees that extend beyond bankruptcy, should you declare it. But after a bank has several years of experience with you and comes to know and trust you, its lending requirements decline, step by step.

The Four Principles of Marketing Strategy

There are four principles to effective marketing strategy. Each of these principles must be thought through carefully and then continually revisited as the business grows and changes. Any changes in any one of these areas can have an enormous impact on the sales of profitability of the business.

Principle One: Specialization

You must decide in exactly which area of your product or service market you are going to specialize. You cannot be all things to all customers. Too many businesses make the mistake of trying to offer too many products or services to too many types of customers at too many prices in too many ways. This is not the way to wealth.

Principle Two: Differentiation

This is perhaps the most important strategic marketing principle of all. All business success requires a differentiation of some kind. All business success requires that you be both different from and better than you competitors in some clear, distinct way.

Who is your competition? Why doesn't your ideal customer buy from you? Why does your ideal customer buy from your competitor? What value does your ideal customer see in buying from your competitor that he or she does not see in buying from you? What could you do to offset this perception?

The only hope you have in acquiring customers is to focus most of your time and attention on determining exactly who they are, where they are, and what you have to do to get them to buy from you rather than from someone else.

Principle Three: Segment Your Market

If you offer more than one product or service, you will have to divide your potential customers into separate market segments.

You will then have to identify the characteristics and qualities of prospective customers in each of these segments in order to advertise and sell to them effectively.

Principle Four: Concentration

Once you have applied the principles of specialization, differentiation, and segmentation to your products and services, and to your customers and markets, you now have to concentrate your limited resources.

You have to focus your time, energy, and money on those prospective customers that you have identified who are the most likely to buy from you the soonest.