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Introduction How to Complete 1 Your Mastery Mindset 2 Listen To Your Own Voice 3 Believe In Yourself 4 Your Own Business 5 Knowing Is Your Edge 6 Preparing For Success 7 What Wealth Means 8 Choosing Your Challenges 9 Making the Right Move 10 Entrepreneurial Potential Conclusion |
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Lesson Six - Preparing For Your SuccessObjectives:
Background:You have already studied several different small businesses which were run by Action Principle® Champions. From these two candidates below, who better fits the warrior description? Sean, owner of Atomic ComicsNot liking the grind of a regular work schedule at Macy's, Sean quits to devote full time to selling comic books on Ebay. After a hard night of partying, Sean hears his alarm ring at 6:30AM. His head is pounding as he somehow manages to lift an arm high enough to smash down the snooze button on the clock. The thought of calling in sick jumps into Sean's mind when he suddenly realizes with dismay that he is the boss. Sean laments, "My God, there is no one to call. I am the boss. What have I done?" 
Jennifer, owner of Sewing CraftsJennifer sets an example for her employees by arriving at work, fresh, energetic and early. Her Sewing Crafts shop opens at 9:00AM but Jennifer's been up since 6:00AM. She takes care of her personal needs, calls the shop's answering machine for messages, reads a newspaper, and enjoys a cup of coffee, a bagel, banana and juice. She checks her e-mail and reads her daily Action Principle® and Master Meditation Mantra. She is out the door by 7:00AM. She arrives at her gym by 7:20AM and works out for forty minutes. She showers, changes and is at her shop by 8:40AM. Success Requires Your StaminaAs an entrepreneur, you must make a personal commitment to physical fitness. There are no sick days. You are the business. You have to be there. And, you certainly can't afford to growl at your customers because you had decided to stay out too late. You can't afford to offend one customer. That means service delivered with a sincere smile. Every day to every customer, you must be able to smile and say, "Yes, may I help you?" And, you have to mean it.Being a person of action, you can't imagine living life as a slacker. The concept of being a lazy person is alien to you. Work isn't something to be avoided. Work is to be embraced. Work is your ticket to financial freedom.
Think about what you're doing. Refine and adjust. It is only the people in that elite twenty percent of achievers who are doing this self-evaluation. Again and again and again remind yourself that most people are simply living the same boring routine over and over again. Yes, as an Action Principles® Champion, as a Master of Success, you will be different. And, in that difference will come uncommon extraordinary success. You are a smart person. You know that you need to lead a balanced life. You know that you need 7-8 hours of sleep each night to perform at your best. This is not an option. Be smart. Work hard but get your sleep.
These are the slackers. They're out night after night and dancing, drinking, laughing, cursing and having a great old time. See it. Admit it. They're having a great time now. But, now is a very fleeting moment. As time passes, the partying will take its toll and eventually they will be left with very little.
At age 31, Joshua's remarkable ability to drink beer up his nose with a straw isn't that exciting anymore. At age 31, Anne's getting her fifteenth tattoo and her nose pierced, again, draws a lot more negative attention than admiration. And you think, "Yes, grow up!" As the partygoers start to head for the dumps both physically and psychologically, you'll be blossoming. As the career and life options of the partygoers narrow, your life options will be expanding. As they pay the price for overindulgence, you will reap the rewards of investment. And, don't kid yourself. If your week revolves around waiting for Friday night, something is wrong. If you're age thirty-six and people age fifteen are giving you compliments on how you dress, something is wrong. If your idea of exercise is channel surfing, something is wrong. If you drive in cars with people who drink and speed and think that road rage and flipping the bird is funny, something is wrong. If you are engaging in unprotected casual sex, something is wrong. And, don't kid yourself. How to take care of yourself isn't a deep dark secret.
You should find time to exercise three or four days a week with at least twenty minutes per session devoted to aerobic activity. Belonging to a health club is nice. Having exercise equipment at home is nice. Action Principle® Champions frown on excuses. Do something. You don't need any special place or any special equipment. You only need the will. As they say, go with what you've got and "Just Do It."You should choose a life sport and participate. You want a sport that will challenge you well into your active senior years. For example, you can golf, jog, swim and play tennis in your seventies and eighties. Playing football or basketball in your golden years may not be as possible. You should eat a balanced diet. If you don't know what a balanced diet is, get yourself a book from the library. Or, surf the Internet. As always, common sense prevails. You should eat lots of fruits and vegetables and chicken and turkey and less refined sugar and red meat. Why kid yourself? You know this. If you are overweight, you don't need sophisticated formulas or regimes. You need to eat less and exercise more and cut down on the fat in your diet. You know this. Again, being stupid can kill you. Excessive smoking and drugs and drinking and unprotected sex are dangerous activities. Hanging out with irresponsible people who don't care about their own safety can also get you killed. Hanging out with people whose idea of the future is two hours from now is not good. You know this. Here is a scenario that has happened over and over again. In bar fights, it isn't always the big guy who prevails, sometimes the little guy wins. The big guy will fight you mano y mano. It is the little guy who figures that he is going to get his butt kicked who goes out to his car and gets a gun for protection. Here is the match-up: big guy with muscles, versus little guy with gun, who is your money on? Testosterone can be dangerous. You know this.
Again and again and again, as you become more and more aware, you will come to the realization that seventy percent of people know what to do. They know about healthy living and good manners and the value of hard work and the long-term benefits of investing. They know. They just don't do it. They opt for the known, the easy, the immediate gratification. Romano's Homestyle Pizza, Continued
For the last six weeks, during his spare time, Kevin has worked gathering information on the restaurant business. He has worked nights, weekends and on his days off from the department store. During this short period of time, just by making contact with, and listening to, actual shop operators, Kevin has gained years of experience in the pizza business.Work hard when you are at work and you will find that you are able to accomplish a lot during normal working hours.
Kevin's free time routine has changed from fun, fun, fun to fun, research, research. Kevin is organized and he knows what he wants to accomplish. He wants to learn about the pizza business. Kevin still has one free night on the town but he must admit that the more research he does, the more confident he becomes, and the more excited he becomes about his future. Even on Saturday night, physically he may be at the nightclub but mentally he's still envisioning the successful future for Romano's Homestyle Pizza Restaurant. Budding entrepreneurs may at times seem just a little weird. At times, to observers, Kevin seems off in his own world, yet, he's happy, smiling and full of energy. Kevin already knows that the endeavor that he's about to pursue will work and he will be a success and he will make money and he will use that money to make more money and create a wonderful life for himself and his family. He knows this. The more he learns about the business and his competition, the more confident he becomes. Source Four - The Restaurant Business BrokerThe third ad in the Sunday Business Opportunities classifieds was from Restaurant Sales, Inc. The ad reads:
Kevin meets Mr. Domasi who proves to be a no-nonsense businessman. While not a Marine, Mr. Domasi did spend six years on a Navy destroyer. And, there is that Navy-Marine bond of mutual respect. Kevin excitedly explains to Mr. Domasi his research and his plans. "Well, Mr. Domasi, what do you think?" Mr. Domasi gives Kevin a thoughtful but cautious answer, "I think you're basically headed in the right direction, young man." Sensing that Mr. Domasi does not brook any fools, Kevin gets right to the point. "Mr. Domasi, a number of people have told me that there are already enough pizza shops in Newton. What do you think?" Mr. Domasi's comments and advice are direct, 
"Kevin, it's my business to know most of the pizza restaurants in the metropolitan area. I know Newton. I know that except for the Leaning Tower of Pizza on Main Street, which a dog wouldn't eat in, that everyone else is making a week's pay. You open up your shop and what happens? Sure, everyone is going to do a little less business.""But, listen," Mr. Domasi continues to educate Kevin, "the take-out food business is growing with Moms and Dads both working and nobody wants to cook every night. So, you open up and everybody sells a few less pizzas and you pick up the slack, so, the other restaurants, they have to start selling tossed salads to make up the difference. Life goes on. This is a free country." Mr. Domasi tells Kevin that he won't fail if he does things right. "Kevin, what if we take the worst case and say that there's only room for eight pizza shops in Newton and your shop would be the ninth. After awhile, one of the pizza shops will fold. But, who says that that's going to be you and your shop? You'll have a new shop and enthusiastic help and you'll be working your tail off to be a success. The weakest shop will fall, not you. And, I can tell you that the Leaning Tower is ready to topple." "Mr.Domasi, do you think the Leaning Tower will be for sale, then?" Kevin is already learning to hear opportunity in other's comments. "Listen," Mr. Domasi begins the sad tale, "let me tell you about Guy Anderson who owns the Leaning Tower. The Leaning Tower used to be a good spot, right? All the high school kids went there. Plus, he did a nice family trade. But, Guy gets sick and his son Guy, Jr. takes over. I call him Little Guy. Well, Little Guy wants to make life as easy as possible for himself, so he can spend more time at the track. Little Guy figures that he can squeeze another few bucks out of the business by putting in those video machines. He gets the kids hooked on the machines and the kids start hanging around at night, after school and more than a few during school. They buy a drink and a bag of chips or a slice and think they can hang around for hours." "Anyway," Mr. Domasi continues, "to begin with, Little Guy lost the family crowd. Then, the place got to be such a pit, no self-respecting kid would even go in the place. Now, I've heard that the police are trying to pull the video machines from his store because its become a hangout for truants. Between your opening a shop and, cutting into what little is left of his food business, and the police taking away his machines, as I said, the Leaning Tower of Newton is ready for Chapter11 bankruptcy. And, it's too bad because two or three years ago, I could have sold that business for a nice price. Now, forget it." Kevin, always with an eye to opportunity, does not hesitate to ask directly, "So, Mr. Domasi, you wouldn't recommend my considering trying to buy the Leaning Tower?" "Absolutely not." Mr. Domasi answers affirmatively, "First, I don't think Anderson would sell. Second, there are probably so many liens on the property that he couldn't sell it even if he wanted to. No, he'll go down with the ship. Third, you're better off starting on your own in Newton or buying one of the good shops I could show you in other towns. Believe me, it would be easier to start off fresh than to try to revive the reputation of the Leaning Tower. I just hope that Little Guy doesn't do something stupid to save his skin like try to burn the place down for the insurance. That kid had so much promise as a youngster and, now, in five years, he'll probably be in jail." Kevin is intrigued by the last comment, "Mr. Domasi, you're in the business of selling restaurants and you're telling me that maybe I'd be best off starting my own?" "Kevin, I talk with you for ten minutes and I can tell already that you're a businessman more than a pizza man. Start your restaurant and then I'll find a pizza man to buy it." In an instant, Mr. Domasi presents Kevin with a whole new world of profitable opportunity to consider.
"Why would I want to sell a restaurant which I haven't even started yet?" Kevin listens intently for the answer. "Kevin," Mr. Domasi lays the program on the line, "you start your restaurant and it will take $25,000 out of pocket for basics. Am I right? Don't answer. Of course I am. In six months to a year, if all goes right, you have the business doing $100K a year gross. You're working 72 hours a week and taking home $600 or $700. Now, I come along and say, "Kevin, I'll sell this business for one year's gross, $100,000. You pay me 10%. You have $90,000 less your $25,000 investment. You have $65,000 net. You pay your capital gains tax and you still have enough to open up another shop and you'll have a nice mortgage working for you to boot." "You can do something like that, Mr. Domasi?" The plan sounded good to Kevin. "Yes. Leatherneck, this is my business." Mr. Domasi didn't seem to be overly concerned about the prospect he had presented to Kevin. Kevin, though, still wanted further explanation, "Well, I don't understand why someone would pay me $100,000 if they could open their own shop for $25,000." "The answer is obvious." Mr. Domasi brings up some important points to Kevin. "If you start a business, you're a risk taker. The risk in starting a business is that you will lose all your money and all your time. Many, many small businesses fail, usually because the owners didn't know what they were doing, had a bad business idea to begin with or because the businesses were started on a shoestring, undercapitalized." "Here's the difference. You're putting your $25,000 down on a dream. The buyer of your shop is putting his $100,000 down on a solid, proven, honest operating statement. You'll be in business - when? Let's say two or three months and that's if you're lucky. By contrast, the buyer of your shop will be in business the day you pass papers and finalize the sale." Mr. Domasi gets approving nods from Kevin who's absorbing all of this wonderful information as fast as he can." Mr. Domasi continues, "Kevin, you come in here worried if there are too many pizza shops. Isn't any buyer going to have the same concerns? You're worried about being the eighth or ninth shop in Newton. You have this worry but your shop buyer doesn't have this worry because he's buying an established shop with customers. And, let me tell you something else. According to the laws of supply and demand, you'll be the only pizza shop for sale in Newton. The supply will be one and I'll find the demand. Anyone wants to buy a pizza shop in Newton, they have only one place to go, to you." Mr. Domasi teaches Kevin another interesting business lesson on the rewards and profits of "taking paper" or lending money to new buyers. "And, the buyers won't put down the whole $100,000. They'll invest about $50,000 and give you a five-year note for $50,000 at 12%. This note will pay you over $1,100 a month for sixty months. So, after you sold your first shop, you'd have your second shop all paid for and you'd have that monthly mortgage check each month." 
Kevin reviewed with Mr. Domasi, "So, Mr. Domasi, let me catch on to this. Then, I'd sell the second shop and have two mortgage checks coming in each month. And, if I open a third, I'll have three checks and after five stores, five checks or over $60,000 a year income - without working."Mr. Domasi agrees with Kevin but at the same time tries to slow down his enthusiasm just a bit, "Well, now Kevin, don't get too greedy on me now. After the fifth year, the first shop mortgage would have been paid and replaced by the fifth shop mortgage but if you didn't open a sixth store, you'd also have the $25,000 cash to invest in something else." Kevin's mind started to calculate the possibilities. "But, Mr. Domasi, if I saved all of my mortgage payments, I would end up with over $300,000 in a mutual fund which even at 12% would pay me $36,000 a year forever. You know I make about $36,000 a year at my job now." "And, Mr. Domasi, my mind's in a whirl here. I'm not trying to be a greedy jerk, but theoretically, could I do much better than $100,000 a year gross in my shop?" Mr. Domasi agrees and ups the ante, "Marine, there are shops doing a $100K a month." Kevin takes a deep breath, "Which would mean that the restaurant was worth $1.2 million." Mr. Domasi nods that what Kevin is saying is not beyond the realm of possibility, "There are a lot of factors to consider but that's in the ballpark, Kevin." Kevin's future plans begin to form, "And, Mr. Domasi, we speculated that I'd be opening one shop a year, but when I really get the hang of things, I could open up one every six months." Again, Mr. Domasi knows that what Kevin is saying is not beyond the realm of possibility, "That's again, correct, Kevin. Or, three or four..." In one afternoon, after meeting with one good salesman, the ideas for Kevin's entrepreneurial ventures have increased tremendously, "Mr. Domasi, you've given me a whole new slant on the pizza shop world to think about. Thank you. But, do you say these same things to all your clients?" Mr. Domasi seems pleased also, "Kevin, if I thought for a minute that it would do any good, I would, but, usually, I just keep quiet. I used to try to get more owners to sell and reinvest but most people don't want to listen. They get emotionally involved in their shops. They know their neighborhood. They know their customers. They make a week's pay and are satisfied. They can't see beyond the front door. They don't want to see beyond the front door. In their shop, they're secure. Outside that door, who knows? They end up selling when they're ready to retire or they're sick or they have to move, something like that. Son, you are a Marine. You just may be able to do a lot better and a lot sooner." Kevin asks another good question, "Mr. Domasi, I'm just curious. You make a 10% commission on a sale but with the business plan you describe, you could make a lot more, couldn't you?" Know what you want and let the broker decide what he or she wants. If a broker wants, 6% or 8% or 10%, don't worry if he or she can deliver on what you want. You want to hire a broker who can get the job done and not the least expensive broker. Mr. Domasi admits that Kevin's point is valid, "Kevin, like I said. There are people out there willing to take a risk but most are just looking for peace and security. I make a good living but I've been married three times and I'm divorced now. Would any of my ex-wives do me the courtesy of getting married again? Forget it. I already have to earn four salaries just to make my alimony payments. And, I have four kids. Please, if I ever saw $25,000 cash at one time, I'd have a heart attack and my seven dependents would have a feast. No, kid, you go out and do what I tell you and get rich. I'll take the 10% to keep up with the lease payments on my Caddy." Kevin is sincere, "I think we'll be doing business, Mr. Domasi." "Aye, aye, Marine. You need anything, just call." Kevin sends Mr. Domasi a Thank You letter and an expensive bottle of imported champagne. Operational Limitations:Accept that when you own a business, you are the boss. There is no one else to call. You are the problem solver.Some businesses have such a poor reputation that they are worth saving. You'd be better off starting from scratch. The average worker only works half the time that he or she is at work. You are a warrior. You are not average. Some friends will help propel your business forward but some acquaintances will sap your strength and negatively impact your progress. You are a warrior. Accept the truth about some around you. Working long hours does not guarantee financial success. You must maintain your fitness level to keep your stamina and enthusiasm pumping. Seeds for thought:
Jargon:Undercapitalize To NOT provide a business with enough money to operate efficiently. Questions and Answers:I went to a bank for financing and filled out all the forms, but the loan officer said that I still needed a business plan. I guess I can put something down on paper, but how can I write a plan before I actually go into business?Your point is well taken. The best time to write a business plan is two or three years after you've been in business. What you'd be writing now is really a pre-business plan based on your research and expectations. In your plan, you'll want a general outline of your proposed business which includes an analysis of your target market, its needs, and how you intend to address those needs. You will need to put numbers behind the words. You must also provide details on supplies and location and staff. You will need to show how the proposed loans will support your efforts, and how secure those loans, and your business, will be under your strong positive direction. Google "writing a business plan" and you'll find a selection of business plan templates. I'm 56, a retiring Senior Chief Petty Officer, ready to take military retirement, but not permanent career retirement. I'm looking for a small part-time business. I've heard you talk about a business evolving over a fifteen year period. I don't want to work that long. Should I start something that I can't finish? If your goal were to build a viable valuable company that you could sell for a lot of money, you might need the full fifteen years. However, your goals may be more modest. The easiest transition would be for you to find a civilian equivalent of your military specialty. You already know this business. For example, can you become a consultant to a defense contractor? If not, then look for a quality product or service that the market demands. Look first to the talents, interests, or skills that you now have, so that the business can be something that you love to do every day. Spend plenty of time doing your research, find people who are already doing what you want to do, and ask for their advice on how to find a niche to start small and part-time. I have a martial arts business and I want to expand, but I'm not sure how I should go about it, since most martial arts studios are just small operations. Can you suggest anything? If, as you say, most martial studios are small operations, that implies that some are not. Do you know of larger companies that are successful? What are they doing? Can you call the owners of these larger companies, visit their operations, and find out what they are doing? Ask and you shall be informed. If you had the opportunity to visit a successful larger operation but you had to travel a hundred or a thousand miles, would you do it? Obviously, if you want to expand, you can open another studio in another location. But, you may have other options. Can you offer martial arts lessons through your local adult education office? Can you offer your services to local churches or schools or gyms? Can you make an instructional martial arts video? Can you offer martial instruction through your local public access TV station? Can you organize karate tournaments? Can you expand your offerings to include mixed martial arts, tai chi, yoga, etc.? Action Plans:You are an Action Principles® Champion, ever alert and aware, look for local businesses that could be improved with reasonable resources and effort. If you owned the service station, how would you improve it? If you owned the coffee shop, how would you expand the menu? If you owned the print shop, how would you increase revenue? Today, tomorrow and always; stop, look and think. These are your private thoughts to clarify your own thinking. You are the master on a mission to increase profits.Support:
Inspirational Insights:We do more before 8 AM than most people do in a day.U.S. Army slogan People who enjoy what they are doing invariably do it well. Joe Gibbs Hell, there are no rules here - we're trying to accomplish something. Thomas Alva Edison When I work, I relax; doing nothing makes me tired. Pablo Picasso You know what you can do best, and you know what is the best that you can do Margaret Thatcher Where the willingness is great, the difficulties cannot be great. Niccoló Machiavelli Always do the right thing. This will gratify some people and astonish the rest. Mark Twain The best vision is insight. Malcolm S. Forbes An ounce of practice is worth a ton of preaching. Ghandi Opportunities multiply as they are seized. Sun Tzu Our greatest glory is not in never falling, but in rising every time we fall. Confucius In the long run, you only hit what you aim at. Henry David Thoreau An organization ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage. Jack Welch The beginning is the most important part of the work. Plato Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity. General George Patton, Jr. Unless you choose to do great things with it, it makes no difference how much you are rewarded, or how much power you have. Oprah Winfrey The creation of a thousand forests is in one acorn. Ralph Waldo Emerson We will either find a way, or make one. Hannibal It is time for us all to stand and cheer for the doer, the achiever - the one who recognizes the challenge and does something about it. Vince Lombardi The best job goes to the person who can get it done without passing the buck or coming back with excuses. Napoleon Hill The major difference between the big shot and the little shot is the big shot is just a little shot who kept on shooting. Zig Ziglar Paying attention to simple little things that most men neglect makes a few men rich. Henry Ford Victory at all costs, victory in spite of all terror, victory however long and hard the road may be; for without victory there is no survival. Winston Churchill People create their own success by learning what they need to learn and then by practicing it until they become proficient at it. Brian Tracy There is no victory at bargain basement prices. Dwight D. Eisenhower The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint to keep from meddling with them while they do it. Theodore Roosevelt Part of being a champ is acting like a champ. You have to learn how to win and not run away when you lose. Everyone has bad stretches and real successes. Either way, you have to be careful not to lose your confidence or get to confident. Nancy Kerrigan Press on - nothing can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Perseverance and determination alone are omnipotent. Calvin Coolidge |
