You must always be uncomfortable to grow.
Vibrate to a higher level all the time.
ADD – Attention Designed to Dream.
Simple is usable – Donʼt complicate business, simplicity is key.
Suggested Books:
•Bank on Yourself
•Unfair Advantage
Rich business people are focused and are VERY specific with their intentions.
3 financial intentions:
1) Working income (Poor business owners focus only on this)
2) Passive income
3) Value to your company (Build your value — quality of branding, marketing — and make it
attractive for acquisition.)
What are your goals for working income?
You need a strategy to get the results you want
– Put the right minds around you
– Surround yourself with great people
– Negotiate a good deal for everyone, not always with money
It doesnʼt matter if people think you are crazy.
Always buy or create to SELL – rich people think this way.
Most people focus on administration or perfection. This is why they fail.
You will have ups and downs. Donʼt wait for perfection – 98% is good enough.
The more you sell, the more you will make.
Buy, create, sell.
The operations of your business – this is the small part.
60-80% of your efforts should be in sales.
If you want to get rich, sell first and clean up the mess later!
Outsource the ADM if you can
Learn to sell or hire someone who loves to sell
Say this everyday: ” I am in the business of marketing software to film and TV.”
80% of your time should be spent on your top 20 customers that can write you
a $100,000 check.
Most people only focus on revenue. You must focus on all of these:
• Revenue
• Cash flow – ahead of the business
• Profit – knowing exactly what your profit is
• Expenses – keep your expenses low!
You can only control YOUR economy:
• Cut your expenses when revenue goes up
• Run your business as lean as you can
Product or Production – B/C Marketing – SOperations – ADM (the glue)
20% 70%
10%
B/C S
ADM
Use this model for every business decision:
Net profit is 20% (what do I need to sell to make this?)
“If you sell your product for $2,000,you must sell 10k to break even.If our salaries are $100,000, then we
have to sell a million.
Keep your revenue up and your expenses down. Do this and you will make money!
Sales – Cost x 40% = Profit
Keep office staff to a minimum and put your sales force on commission.
The second problem is to focus on money coming in.
They donʼt plan ahead and end up losing the game because their account
receivables are too far out.
No Receivables – Donʼt become the bank!
When there are no receivables, there is no problem.
Preserving cash is especially important in startups.
Sell your way into business. Donʼt buy useless things. Stay very limited in overhead – bare bones is best.
Cash is King – Cash flow is the lifeblood of a business
Rich people tend to offer higher ticket items. It is the same amount of work to sell one
little thing as it is to sell one high ticket thing.
Increase the average transaction dollar amount
This is the fastest way to double your profits. If a behemoth like WalMart focuses on this, you should
too.
You can make a bigger better anything!
You can charge a lot more per item when they have higher value. Use creative thinking.
Higher ticket value:
• Offer a pro version
• Sell an annual package price to studios, not pay per production
Take what you have, boost the value way up, and charge a lot more
Do what it takes in Sales – always bring a gift
A “premium” is a little extra product that adds value to your product
Ask yourself, “Who could purchase a large amount of my product at once?”
Finance Techniques:
• Use your job to finance (start part time)
• Start in a different way (part time of smaller)
• Bank
• Angels and VC
• Private investment
• Pre Sell – This is the best way (customer financing)
Never, never, never use your personal property as collateral.
Build up your business and sell it within 5 years.
“Breakage” – This is the term for the certain number of people that wonʼt show up.
Your customers get value through a discount
Rich people are experts.
You must be seen as the best. Present yourself as an expert in your field.
You are an expert because you say you are!!!
Promote yourself to the media as an expert and they will come to you when something
happens or something comes up.
Always stay current in your field – Let people know you are cutting edge.
“I am an expert at finding missed opportunities, problem solving, and creating
amazing products.”
Rich people are focused, poor people are scattered.
• Focus is the key – Get it done, then sell it. Trust your instincts!
• Focus = Follow one course until it is successful.
Opportunities are obstacles.
There is no such thing as failure, only “feedback.”
You are your own judge and jury – You make the rules.
How can you lose?!!
T E A M – You make all the rules, so you donʼt have to play alone.
Rich people make or create a team. Your business deserves a talented team.
Use your strengths and delegate your weaknesses.
Enroll people to be on your team. Affect them with your message. They must be mission-driven.
Sloppy success is better than perfect mediocrity.
Make sure the business works without you.
Own your business, the business should not own you!!!
You must systemize everything in your business!!!
Create a repeatable process that produces a profit.
When you own a business, there are no limits to what you can make.
Create a product that fans are going to market for you.
Word of mouth advertising is worth its weight in gold.
Be careful who you marry.
Always love what you do.
Give them their moneyʼs worth. Create high value.
Marketing
Stand out from the pack.
Rock star mindset:
• Always do your best in case someone is watching
• Make connections and meet the right people
• Always be willing to take a risk
• Never get too comfortable
• Create a title for yourself (four words or less)
• Change or Die
To become a Rock star in your industry:
1) Write a small book – give them out as business cards
2) Become a speaker
3) Do duets – create joint ventures to tap into their databases
4) Lose control – allow people to bootleg your stuff because people will promote you
5) Use social networking
• Blog (WordPress) – Blog something every day and tie your blogs with keyword
trends. This will keep you at the top of Google searches.
• YouTube – Come up with a fake word in your “tags.” Then all your videos will show
up in the right column.
6) Think way, WAY outside the box (run for the school board)
7) Rock star chauffer8) Take Massive Action
9) Do not settle
10) Do not be in the same place one year from now
Learn to create new business ideas:
Two Primary Motivators – Gain Pleasure, Avoid Pain
You can make lots of money by fixing other people’s pain.
Look for problems to solve:
• After problem comes, no problem
Right You, Right Knowledge, Right Vehicle / Right Time (RY RK RV/RT)
• Nothing is perfect.
• You can always improve a service.
• Capitalize on changes, timing, and trends.
• Piggyback or affiliate.
Negotiating:
You get what you negotiate.
Negotiation is a learnable skill.
If you give up easily, you will never get what you want in life.
Negotiations should always be Win Win.
You get what you need and they get what they need.
If it doesnʼt work out, you donʼt do the deal. If it doesnʼt work for them, they won’t do the deal.
Everything is perspective. What you project is a mirror of you and your product.
Most wealthy people are really good negotiators.
You must ASK
Always create affinity (caring, compassion, kind, a bond) before and during a negotiation. What do they
like? What kind of work they do? Where do they live? Do they have kids? Really connect with them. Be
observant. A natural salesman can sell to anyone.
Send them love — “Zap” them.
Be a good schmoozer.
State the Win-Win objective up front.
Magic words – “Let’s see if we can put our heads together so it works well for both of us.” “Help me
out.”“What works for you?”
You need a hook – Create a rationale or reason.
You must create a semi-legitimate or logical reason why you are entitled to better terms.
Point out any imperfections, solve the problem of having damaged items on their shelves.
Let them see you as the best possible solution to their problems.
Buy in volume to negotiate a better deal. Promise more future business. How can you save them
money? “Does this item ever go on sale? Why should I be penalized if itʼs not on sale today?”
Never negotiate against yourself.
Donʼt go first in any negotiation.
You donʼt know their situation.
Itʼs just a game. Be willing to play along and reach an amicable, profitable solution.
The 7 Magic Words (use these at the end, not right away): “Whatʼs the least you can live with?”
Always negotiate with an objective in mind!
In every situation, when possible, create competition.
• Drop names of competitors (especially in a mall or place that has many of the same
items).
• Let them know that you are shopping around.
• You can come back several times.
• “I was just online yesterday.”
Have them print you a coupon.
They want to have a relationship with you.
If you are selling, create a limited supply. “This is all I have right now.”
Donʼt act overly intelligent. People like to help people. They also like to feel
appreciated. “Help me out.”
Create a third party authority. “I have to talk to my partner, wife, etc.”
If you are the seller: “I have to talk to my manager.”
Power of the printed word – make it work for you.
People believe words: “This is our standard NDA Agreement”
Write the words “Standard NDA Agreement” at the top of the NDA. This works on things like:
• Websites
• Cancelation policy
• Prices
• Liability
• Today only – create a sense of urgency
• Store credit
Never, never negotiate with anyone who doesnʼt have decision making power.
When possible use the Good Guy/Bad Guy routine. Use a spouse or business partner as the bad guy on
the phone.
Protect your position ALWAYS! – Donʼt give the deal away from the beginning.
These are all factors you can juggle into your negotiating:
• Price
• Creditors
• Shipping – “Can you ship this for free?” “What day of the week are you usually in my
area?”
• Timing – always use this to your advantage
• Exclusivity – the rights to someone
• Repairs – free oil changes, free maintenance
• Returns
• Extended warrantees
• Co-op ads
• Extra points
Create a cooperative environment.
Operate on your home turf whenever possible or negotiate in a neutral space.
If you are at a lunch meeting, always order the food first, create affinity, then negotiate.
Credits to T Harv Eker and the other trainers, such as Alex Mandossian.
