Sunday, July 27, 2008
The Young Rich: Top 10 myths exposed
http://www.smartcompany.com.au/Premium-Articles/Top-Story/The-Young-Rich-Top-10-myths-exposed.html
Wednesday, July 23, 2008
Rule #1 on How to Read Effectively
Perhaps the biggest mistake that people do is either accept or reject books & people completely. This phenomenon is often seen on Amazon.com reviews. Some reviews go something like this: I learned a lot from a,b, and c ideas in the book. However, I do not agree with author’s point on d,e, and f ideas. Therefore I do not recommend this book.
Do not adapt this mentality. Instead, do what successful business people do and learn to pick out useful information through every medium. Information in business books should be used as a buffet, pick what you like and leave everything else behind. When Mark Cuban was in Indy he told us his view on books: “If I only learned one thing from a book then I considered it to be worthwhile.”
This idea extends to people. Try to learn from everyone regardless of whether you share the same beliefs on politics and religion. At the end of the day, both Democrats or Republicans like the color green.
Do not adapt this mentality. Instead, do what successful business people do and learn to pick out useful information through every medium. Information in business books should be used as a buffet, pick what you like and leave everything else behind. When Mark Cuban was in Indy he told us his view on books: “If I only learned one thing from a book then I considered it to be worthwhile.”
This idea extends to people. Try to learn from everyone regardless of whether you share the same beliefs on politics and religion. At the end of the day, both Democrats or Republicans like the color green.
Friday, July 18, 2008
LinkedIn Q&A
I know that you have been thinking about joining LinkedIn lately. It's time you sat down and did it... Once you're on there check out LinkedIn's Q & A. It is a wealth of information with links to people that can help clarify any questions.
Sunday, July 13, 2008
How Growth Kills and What You Can Do About It
Ask many Venture Capitalists and they will say that growth is one of the most common ways that companies fail. Why?
The reason is that what makes businesses work at 3 employees no longer works when the business has 25 employees and 100 employees.
All the problems that the entrepreneur micromanaged in the past, become magnified and the business can no longer rely on several all stars to make sure that everything flows smoothly.
Right now, my ticket business is in a similar situation. After piloting a significant growth increase we have come to terms with the fact that we are not ready for growth yet. Rather than start growing irresponsibly we are investing in creating the infrastructure (systems, management structure, legal, financial, etc.) to make sure that everything flows smoothly (see Emyth and Six Disciplines for Excellence).
Though this is a tough thing to do, keep in mind that the above mentioned books will help you significantly in this respect.
Remember, your business should be set up in a way that it could be replicated 4000 times with no problem. That means that every small issue that you have in your process would end up significantly hurting the business. Use this excellent framework provided by Michael Gerber (author of Emyth).
The reason is that what makes businesses work at 3 employees no longer works when the business has 25 employees and 100 employees.
All the problems that the entrepreneur micromanaged in the past, become magnified and the business can no longer rely on several all stars to make sure that everything flows smoothly.
Right now, my ticket business is in a similar situation. After piloting a significant growth increase we have come to terms with the fact that we are not ready for growth yet. Rather than start growing irresponsibly we are investing in creating the infrastructure (systems, management structure, legal, financial, etc.) to make sure that everything flows smoothly (see Emyth and Six Disciplines for Excellence).
Though this is a tough thing to do, keep in mind that the above mentioned books will help you significantly in this respect.
Remember, your business should be set up in a way that it could be replicated 4000 times with no problem. That means that every small issue that you have in your process would end up significantly hurting the business. Use this excellent framework provided by Michael Gerber (author of Emyth).
Tuesday, July 8, 2008
Why Analogies are so Effective
Analogies are effective because they make things simple.. and simplicity, according to Chip and Dan Heath's authors of Made to Stick , is one of the most important drivers of whether an idea sticks.
Analogies are effective because they draw on complex associations that people have previously established. It utilizes a heuristic, or short cut, that allows for quick understanding.
For example, how difficult would it be to explain everything if we didn't have words and analogies to help?
You can spend 10 minutes explaining what a carnival is, or you can simply use the word "carnival".
Same thing goes for analogies. It leads to quick understanding.
Some people are under the impressions that simplicity and analogies only work for simple or lower level thinkers. False. Analogies effectively work on everyone. Try one today.
Analogies are effective because they draw on complex associations that people have previously established. It utilizes a heuristic, or short cut, that allows for quick understanding.
For example, how difficult would it be to explain everything if we didn't have words and analogies to help?
You can spend 10 minutes explaining what a carnival is, or you can simply use the word "carnival".
Same thing goes for analogies. It leads to quick understanding.
Some people are under the impressions that simplicity and analogies only work for simple or lower level thinkers. False. Analogies effectively work on everyone. Try one today.
Is the SWOT Framework practical?
Yes. This I learned from Mark Long (click for consulting), a renowned professor who has been involved in 68 companies.
Simply put a well done SWOT analysis (Strengths-Weaknesess-Opportunities-Threats) is a good framework for companies to figure out their strengths and weaknesses (internal) and the Opportunities and Threats (external) that arise from those strengths and weaknesses.
As always, don't mistake simplicity for ineffectinvess. This is a strong and time tested framework that you can apply to your business right away.
Simply put a well done SWOT analysis (Strengths-Weaknesess-Opportunities-Threats) is a good framework for companies to figure out their strengths and weaknesses (internal) and the Opportunities and Threats (external) that arise from those strengths and weaknesses.
As always, don't mistake simplicity for ineffectinvess. This is a strong and time tested framework that you can apply to your business right away.
Monday, July 7, 2008
Is there a formula for making friends?
The formula for making friends is simple if you follow it. It can be applied regardless of whether others have similar interests to you. Contrary to popular belief, people like/dislike others based on whether they themselves are liked and appreciated not based on similar hobbies, etc.
Of course, this seperates acquaintances from close friends.
If you don't see how this relates to business think NETWORKING.
Here is a simple step by step guide to making friendships easily:
1) Do not be self-righteous and judge others. People are different because they grew up differently. Learn to appreciate people's differences. Do not hate on other people's success!
2) Create VALUE first. Be the first to offer something of value. This makes you stand out considerably.
3) Teach others how they can help themselves. People are smart enough to see the value in this.
4) Act happy to see other people.
5) Be REAL. People respect you if you share your views EVEN if they don't agree with them. Don't be fake and "cautious". Nobody cares what major you are. The best talking points are religion and politics. People do care what your view is on abortion. (see : #1 on not being self-righteous).
6) Do not SEEK perfection from others. Perfection is not achievable by anyone. Learn to like people despite some flaws. It will make you less judgemental towards yourself and lead to a higher level of happiness.
Of course, this is hard to implement if you don't genuinely like people but worth a shot nevertheless.
Best,
David
Of course, this seperates acquaintances from close friends.
If you don't see how this relates to business think NETWORKING.
Here is a simple step by step guide to making friendships easily:
1) Do not be self-righteous and judge others. People are different because they grew up differently. Learn to appreciate people's differences. Do not hate on other people's success!
2) Create VALUE first. Be the first to offer something of value. This makes you stand out considerably.
3) Teach others how they can help themselves. People are smart enough to see the value in this.
4) Act happy to see other people.
5) Be REAL. People respect you if you share your views EVEN if they don't agree with them. Don't be fake and "cautious". Nobody cares what major you are. The best talking points are religion and politics. People do care what your view is on abortion. (see : #1 on not being self-righteous).
6) Do not SEEK perfection from others. Perfection is not achievable by anyone. Learn to like people despite some flaws. It will make you less judgemental towards yourself and lead to a higher level of happiness.
Of course, this is hard to implement if you don't genuinely like people but worth a shot nevertheless.
Best,
David
Sunday, July 6, 2008
What is the last sustainable competitive advantage?
It is also the most important: People.
Check it out: http://www.amazon.com/Topgrading-Leading-Companies-Coaching-Keeping/dp/1591840813/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1215398252&sr=8-1.
Check it out: http://www.amazon.com/Topgrading-Leading-Companies-Coaching-Keeping/dp/1591840813/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1215398252&sr=8-1.
Great Article on High Achievers
http://www.nytimes.com/2008/07/06/business/06unbox.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1215367351-1CWGY6E8jHL4Dh298eB5WQ
When Things Get Rough..
I tell myself, the harder it is to do the harder it is to replicate... There is little competition at the top (see: The Dip by Seth Godin).
How Powerful Is Your Network?
Every couple of months, when I really need something, I am reminded about how powerful networks can be. Recently, this happened when I needed a solid partner to help my newest company, www.BestEndMills.com, with Search Engine Marketing. Once again, my network came through to me with flying colors (a mass streamlined 'thank you' to everyone that helped!).
How powerful is your network? How many legitimate smart-connected people do you have in your network? 20,30,100?
Consider this, more likely then not, you are underutilizing the power of your network? Why? The reason is that the real power of your network lies in the second degree: the contacts of your contacts.
How many second degree contacts do you have? Let's take an example. Assuming that you have 50 good contacts (a very modest number), on average how many second degree contacts is that? I'll give you a hint, it's not 100. The answer is 50 * 50 = 2500! (minus some overlap) Check the math, this is not a product of hype but rather simple multiplication. NOTE: This is a good time to apply the 80-20 rule and focus on the SUPER connecters that have several hundreds of contacts. They are the low hanging fruit. See: me ;)
The reason people do not utilize their network is because of a lack of FAITH. We do not see our contacts' contacts, therefore we believe they do not exist. Stupid, but true.
In order to utilize the contacts of your contacts you must believe they are out there. Remember, smart connected people are usually connected with other smart connected people. More likely then not, if your contact is quality he/she will have many quality contacts. Just let go of your cynicism for 10 phone calls and you will see what i mean.
Other things to consider. You need to work on maintaining your network, although it is not as hard as you might imagine. You must offer value to others. However, at the same time, heed the words of Keith Ferrazzi, author of Neve Eat Alone, and be as willing to ask for help as you are to give it.
"Do you know anyone that may be able to help me?" is a good start.
Also consider, second degree contacts are about as far as it makes sense to go. Usually, third degree contacts are hard to convince. This is sound advice I got from John Ramey, the co-founder of Isocket (click the company name to participate in their Beta). More or less this is true, but don't let this stop you from proving me wrong.
David
How powerful is your network? How many legitimate smart-connected people do you have in your network? 20,30,100?
Consider this, more likely then not, you are underutilizing the power of your network? Why? The reason is that the real power of your network lies in the second degree: the contacts of your contacts.
How many second degree contacts do you have? Let's take an example. Assuming that you have 50 good contacts (a very modest number), on average how many second degree contacts is that? I'll give you a hint, it's not 100. The answer is 50 * 50 = 2500! (minus some overlap) Check the math, this is not a product of hype but rather simple multiplication. NOTE: This is a good time to apply the 80-20 rule and focus on the SUPER connecters that have several hundreds of contacts. They are the low hanging fruit. See: me ;)
The reason people do not utilize their network is because of a lack of FAITH. We do not see our contacts' contacts, therefore we believe they do not exist. Stupid, but true.
In order to utilize the contacts of your contacts you must believe they are out there. Remember, smart connected people are usually connected with other smart connected people. More likely then not, if your contact is quality he/she will have many quality contacts. Just let go of your cynicism for 10 phone calls and you will see what i mean.
Other things to consider. You need to work on maintaining your network, although it is not as hard as you might imagine. You must offer value to others. However, at the same time, heed the words of Keith Ferrazzi, author of Neve Eat Alone, and be as willing to ask for help as you are to give it.
"Do you know anyone that may be able to help me?" is a good start.
Also consider, second degree contacts are about as far as it makes sense to go. Usually, third degree contacts are hard to convince. This is sound advice I got from John Ramey, the co-founder of Isocket (click the company name to participate in their Beta). More or less this is true, but don't let this stop you from proving me wrong.
David
Thursday, July 3, 2008
Winning Long Term Partnership Negotiations
As I negotiate several long term relationships in both of my companies I am reminded:
The only way to win long term negotiations is in a win-win scenario. If you pull a fast one over a partner his/her productivity will go down and everyone will suffer as a result...
It is better to make the pie bigger.
Of course, this is different for short term negotiations like buying used cars where you can have a one sided win.
The only way to win long term negotiations is in a win-win scenario. If you pull a fast one over a partner his/her productivity will go down and everyone will suffer as a result...
It is better to make the pie bigger.
Of course, this is different for short term negotiations like buying used cars where you can have a one sided win.
Tuesday, July 1, 2008
Statistical Significance (excellent resource)
http://www.kaushik.net/avinash/2006/05/excellent-analytics-tip1-statistical-significance.html
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