More than investing in real estate, more than trading in stocks and shares, more than anything else, by investing in your own business, you create the greatest potential for building the cash flow that will enable you to buy good assets such as property.
Some business owners, HR Managers, leaders and experts say that all you have to do to get better performance and productivity out of your employees is to create an award system that rewards employees with titles and higher compensation. The end result they say is higher performance and happier , and more engaged employees.
Daniel Pink author of one of my favourite books Free Agent Nation: The Future of Working for Yourself , argues in this TEDTalk that there is a mismatch between what science knows and what business does.
And here is what science knows : Higher pay does not automatically lead to higher performance .
If you have read any books on time management or personal productivity, one of the ideas you will have come across is this – they recommend that you start thinking of each hour of your time as being worth a specific quantity of money. This is an extension of the old “time is money” concept.
First you have to figure out what your hourly rate is, and then you use that as a guide to determine where you should spend your time. The reasoning is that if you want to earn more money, then you must first mentally raise your hourly rate. These books suggest that you should do this so that you can start focusing on activities that are worth more.
If you currently earn $50/hour and want to earn $75/hour, then you have to do less and less $50/hour work as you shift to doing $75/hour work. Brian Tracy advocates this type of thinking in his time management programs, as do many other time management experts. I’ve used this model myself in the past.
I’ve spent a lot of time considering this paradigm, and at present I have only one problem with it.
Really, this is probably one of the dumbest paradigms you can use for income generation.While it seems enticing on the surface, in the long run it will hurt you more than help you.
Heres why :
If you have been a business owner for any length of time, than like me, i am sure that you have made your share of some really dumb and stupid business mistakes. I’ve also coached a number of people to start their own businesses, and I’ve seen many of them make similar mistakes. This advice is geared towards small business owners, particularly people who are just starting (or about to start) their own business.
1. Stop selling to the wrong people.
When you start your business, people will tell you that sales are vitally, vitally important to the survival of your business. They are not wrong. But here’s the thing – the worst thing you can do is to try to push your business on everyone you meet, especially your friends and family. It really is a waste of your time and efforts to try selling to people who simply don’t need what you’re offering.
I have learned that some clients are much harder to work with than others. If a potential customer is broke and obsessively worried about every nickel they spend, then they won’t be a good client in the long run(though there are exceptions to the rule). Michael Port in his book , Book Yourself Solid advises that you should implement a Red Velvet Policy , where you should feel free to say no to customers that are more trouble than they’re worth. Let your competitors sell to them instead. You’ll save yourself many headaches, and you’ll free up more time to focus on serving the best customers.
Composer/Filmmaker/Artist Salomon Ligthelm has found the sole reason why he creates. His most authentic work comes from a place of surrender and service to others.
Reject the voice inside that says “you are what you do” and give in to The Great Abyss. Find why you create.
Having started and grown a successful retail business and also having worked for some of the largest global retailers, I have always been fascinated by what the difference is between the person who opens and runs a successful small business / retail store, and the person who opens and runs a chain of stores across the region or even the country.
For me I believe that the main difference is in the thinking process. If you think big, you can be big, but most of us get so caught up doing what we do, that we don’t allow the thought of where we are going to manifest and form.
So while I don’t see anything wrong with being a small successful business, I also don’t believe that there is anything wrong with wanting to build your business into a hugely successful big business.