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If You Want to Be Rich…Practice this One Habit

March 19, 2011 3 comments

By: Adam Khoo.

What keeps most people from becoming rich is the habit of wanting instant gratification. Instant gratification is the habit of always wanting to enjoy now and not having the patience to wait for future benefits. As a result, these people spend a lot more than they invest. By spending on that new car, new widescreen television set or designer watch they get instant gratification. When it comes to investing in books, seminars, stocks or insurance products, they will think twice as they have to wait for future benefits. It is precisely for this reason that whatever money comes into their hands will soon be frittered away and not multiplied.

People who want instant gratification will always look for quick and easy ways of making money rather than building a sustainable business that adds value to (repeat) customers. They tend to cut corners on quality and deliver shoddy products to save money and boost short term profits. As a result, their profits rarely last and they will soon go out of business.

At the same time, those who desire instant gratification lack the patience to allow their money to grow and compound through investing. When they don’t see huge sums of money in a few weeks, they abandon their investments and never get to reap the benefits. They have no patience to wait for the seeds they sow to grow into huge money trees that bear fruit.

You see, there are only two ways you can use your money. You can either spend it or invest it. When you spend $100, you get gratified from whatever you bought but that $100 is gone! You get zero returns. When you invest that $100 in a seminar, books or stock, it will grow into $120, $200, $500 or even $1000, depending on your rate of return.

Delayed Gratification

On the other hand, all millionaires adopt the habit of ‘delayed gratification.’ They have the patience to wait for greater abundance in the future. Whether in business or in investments, you must delay gratification in order to create massive wealth.

People with delayed gratification invest a lot more than they spend. Again, they know that by spending a dollar, they may feel good for an instant, but their future wealth will be destroyed. When it comes to spending money, they are extremely frugal. However when it comes to investing, they do not think twice about writing a check for a few thousands dollars. They know that through patience, that money will multiply into a future fortune.

Millionaires never take shortcuts in business. They always look at giving the best value to their customers, even if it means earning less at present. They know that by building their reputation, it will lead to huge profit streams in the future.

I cannot emphasize this value enough because I feel that it is what has really set me apart from all my peers. It is why I earn many more times than most people my age. You see, when I was in college and university, most of my friends spent their holidays partying and having fun. They experienced instant gratification.

Instead of partying, I would spend all my holidays taking up speaking engagements to hone my presentation skills, reading investment books, analyzing company reports and writing chapters of my first book. I knew that by ‘sacrificing’ my immediate enjoyment, the rewards in the future would be tremendous! Sure enough by the time I graduated from University I had streams of passive income from my best-selling book and two businesses that I had set up. I was earning more money than many of my lecturers while many of my friends were struggling to get their first job with their first paycheck.

Frankly, I never felt deprived. I had so much passion for what I was doing that indulging in drinking and idle lounge-lizard chatter just seemed like a huge waste of time. Nor did I miss social companionship. I had a steady, supportive girlfriend (now my wife), and a core of close buddies in these businesses we ran (and had so much fun and profit), while still studying. In fact a couple of them are still working with me today.

Let me give you another example. When it comes to spending money, I am extremely hesitant. Once I saw a mobile phone that I really liked. It was priced at $800. I kept staring at that phone over and over again but eventually walked away. I found it just too painful to part with $800 for a phone. My friends thought I was crazy as I was earning over $1,000 an hour at the time, whenever I spoke. But then again, I knew that the moment I spent that $800, it would be gone!

On the other hand, whenever I go to a bookstore, I think nothing of spending $800 buying a whole series of marketing, business and investment books. In fact, I once spent $12,000 attending an NLP (Neuro-Linguistic Programming) training course in the United States, without even thinking twice.

Why? Because I know that if I spend that $12,000, the ideas that I get from those books and seminars, when applied, will generate me millions and so they have! But most people do the exact opposite. They think nothing of squandering $3,000 on a ring but think twice before buying a good book for $30! No wonder they are poor! So, develop the habit of delayed gratification – and spend wisely – and you will see your money multiply.

 

Categories: Business & Finance

Which Stool is More Stable?

February 21, 2011 2 comments

By: Vinay Kumar.

Naturally, the 3-legged stool is more stable and more difficult to knock over.  Same applies to those who sell. Too many sales people rest on their laurels thinking they have a strong foot hold when they have an excellent relationship with their contact at their customer’s organization. But what happens when that person leaves, or has a change of heart?

If your relationship with a customer rests on a single contact, you could easily be pushed out. While certainly enjoy the relationship, be sure to also cultivate additional relationships.  Do this both vertically and horizontally, going high, deep and wide. This will give you a much stronger foot hold, as well as potentially lead to additional revenue opportunities.  And the more people you know, the more referral potential as well.

I strongly urge you to review your client list and ask yourself, in which organizations is your relationship like a 1-legged stool and then identify steps can you begin take to convert those to more like a 3-legged stool.  It’s well worth the investment.  Don’t delay.  Do today, as if your future depends on it, cause it very well may.

PS Similarly, actively strive to get more and more of your products and services into your customers organizations for this too makes it harder for a competitor to enter your space as well as for your customer to displace you. Moreover, it’s easier to sell more to your existing clients then to get new ones.

Categories: Business & Finance

Watch Your Language, Please!

February 14, 2011 7 comments

By: Vinay Kumar.
An old saying goes: “Sticks and stones may break my bones, but words will never hurt me”.  From my experience, nothing is farther from the truth.  While physical wounds heal and are long forgotten, ill chosen words cut deep, with some such inflicted wounds never to heal.

I have found over the years that using positive words doesn’t cost any more.  And using negative words doesn’t cost any less.  Yet the impact each has, positive or negative, is huge.  Let’s look at a business example.

In working with an organization some years back, a team spent some time reviewing various templates used in customer communications.  The wording in one of them really jumped out, worded roughly as follows (and the other templates weren’t much different in tone):

ABC Manufacturing has reviewed your request and has determined that it does not meet our strategy.  Therefore we will not consider this request now, nor in the future.  We are closing out the request.  (Name of the client and wording have been changed/modified while preserving the essence.)

I don’t know what your reaction was reading this but for me it felt like a door being slammed in my face.  It pained me just reading it – and it was not even a response to my request.  I can only imagine what the clients must have felt, when receiving such a response, and the (adverse) impact that must have had on the customer relationships and the business.

I am wondering if there would be another way to word this. For example, something like this:  “Hello , thank you for your request.  I have reviewed your request and unfortunately at this point in time, it does not fit the product strategy and therefore I am unable to address it through our regular support mechanism.  Having said that, I like to suggest our having a conversation so we can better understand what it is you’re trying to achieve and then perhaps there may be another way we can help you achieve your desired outcomes.  If you agree, I’ll ask your account manager to follow-up with you to discuss this further.  In the meantime, I will mark this ticket as resolved and then depending on the conversation that takes place between you and the account manager, another ticket can be opened up accordingly at that time.  Will this be agreeable to you?  If so, please advise and then I’ll ask your account manager to follow-up with you.  I’ll wait to hear from you then.  Thank you kindly.”

While this suggested reply is wordier and takes few more moments to write, don’t you think it’s much warmer, invites dialogue and leaves room for exploration and future opportunities as well as contributes to stronger relationship formation?

If you agree with the message of this post, perhaps it may be worthwhile for you and your team to review your own communications that take place with your customers, internal and external, and identifying ways they can be made more customer friendly, so they lead to more positive outcomes, for you and your clients?  In my experience, this is one of the ways to have a huge positive impact on your relationships and your bottom line, without spending a single additional penny.

What are your thoughts and experiences in this regards?  I would love to hear from you.  Won’t you please take a few moments to respond?   I thought to create one extra category of Business & Finance, to help those who needs some improvement and  some very basic skills to keep the business alive. I will keep posting more business advises at least once a week, stay with the blog and happy learning.

Categories: Business & Finance
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