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Posts Tagged ‘Entrepreneurial Methods’

Part 2 – Goal Setting – Answering the “Why” question

Tuesday, January 18th, 2011

In my last blog, I covered the first step to goal setting with the concept of “painting the picture”.  Once you’ve identified your goal and specifically defined it, the next step involves asking why this goal is important to you.  This is one of the most important steps in the entire process, because once you know why you are doing something, you will do whatever it takes to figure out how to accomplish it.  Answering the why question is essential to defining the importance of the particular goal.

If I have a goal of eating healthy and exercising on a regular basis, then I have to know why this goal is important.  Am I setting this goal, because I somehow think it’s what I’m supposed to do?  I might say to myself, “I guess I should be healthy.  Everyone lists that as important, so I guess it should be important to me as well.”  That answer is not an effective “why” answer.

Instead, you need to really define why this goal is so important.  I’ll give you an example.  Health is an important goal for me.  Unfortunately my family struggles with high cholesterol and high blood pressure.  I’ve had several family members suffer from heart attacks at very young ages.

My health is directly tied to my family.  I want to be healthy because I want to live to see my children grow up and have children of their own.  I not only want to be alive, but I want to enjoy it.  I don’t want to be confined to a hospital bed or medical equipment.  I also want to have more energy in my life now.  I have a lot of worthy goals that I’m excited about pursuing, but I can’t do that if I have limited energy and I’m out of shape.

Do you see how I’ve answered the why question?  I’ve given very specific reasons that are important to me.  Answering the why question is one of the greatest secrets to accomplishing great goals. You may have practiced this principle in your own life without even realizing it.

Many years ago, my uncle was in terrible shape.  He ate terrible foods, never exercised, smoked, drank, and he rarely saw the doctor.    In his early 40’s, he had a massive heart attack.  Fortunately he survived, but his life was changed forever.

Once he recovered and was out of the hospital, my uncle was a changed man.  He changed his entire diet.  He started exercising every day.  He quit smoking and drinking, and he never missed regular check-ups with his doctor.  He lost an enormous amount of weight.  He looked great, and you would have never guessed he was so out of shape a few years before.

So what happened to my uncle?  I’ll break it down for you.  He answered the why question.  His goal was to get healthy, but the key to his success was that he knew why.  Once you know why, you’ll do everything you can to figure out how.  Do you see the power of this principle?  Answer the why question, and you’ve got 80% of the goal setting process accomplished to do great things.

Learn Several Powerful Strategies to Goal Setting (Part 1)

Wednesday, December 8th, 2010

Goal setting can be an invaluable exercise that can literally revolutionize your life for the good.  Most of the great entrepreneurs who have accomplished amazing things have been extremely effective at setting goals.  While goal setting is important, it’s effectiveness can increase exponentially if you practice the steps that I will be outlining in the next several blog posts.  You are about to learn several of the great secrets to effective goal setting.

The first step in the goal setting process is getting specific.  It is imperative that you specifically define what your goal is.  Generic goals are ineffective, because they fail to identify what you are really trying to accomplish.  For example, you might have a goal to be healthy.  If that is as specific as you get, then you really haven’t defined it.  What does healthy mean, especially to you?  A better goal would be, “I am going to increase my health by lowering my blood pressure and cholesterol to xyz levels, and I am going to lose 15 pounds.  You might have a goal to become rich.  Again, this is a very generic goal.  Instead, you could have the following goal, “I will become debt free by paying off my house, car, credit card balance and student loan”.

The specifics outline exactly what you are talking about, and this step forces you to really think about what you want to achieve.

Once you’ve specifically outlined the goal, then you need to burn the image of that goal into your brain by using the strategy of “painting the picture”.  Most people are visual, and it’s amazing how powerful a picture can be.  Imagine you are planning a vacation to Hawaii, and you are trying to select which resort you will stay at.  Would you rather have a written description of the resort or pictures?  While the description is very important to identify the amenities, etc., the pictures are what move you emotionally.

You need to visualize exactly what accomplishing your goal would mean to you.  It’s critical to see it in your mind as if it has already been achieved.  Meditate for a moment on the completion of the goal.  What does it feel like?  Can you see it?  Can you taste it?  Imagine the rush of accomplishing this goal.  Now find a picture that represents the goal.  It can be something cut from a magazine or a picture that you have taken.  This picture should instantly take your mind to the place of accomplishment.  If you have a goal to spend better quality time with your children, then you might consider using a picture of you playing with your children.

Finally, you need to place your picture and goal in a place that you will see it every day.  The daily reminder and visual impact of the goal will keep your focus on the task at hand.  Many people will set goals and then quickly forget in the busyness of their lives.  Painting the picture by itself is not enough.  You have to look at that picture on a daily basis, so that you start internalize the value and importance of the goal.  In the process of reviewing and visualizing your goal, you will start to focus.  Focus is the secret ingredient that actualizes the efficacy of the goal setting process.  As you continually focus on the goal at hand, your mind will commence a process of determining how to achieve it.  In the next blog, we will cover the next essential step – answering the why question, and you will be further equipped to go out and do great things.

Where am I going?

Thursday, October 7th, 2010

When I was a junior in high school, my family and I took a trip to a lake in Indiana for a week of water skiing and fun. I brought a friend with me, and we took two cars. My parents and my brother were in one car, and my friend and I were in the other. I only had my driver’s license for about 9 months, so I was not accustomed to reading maps and watching for landmarks.

I just followed my dad all the way. When my dad exited off for gas, I followed him. When it was time to stop and eat, I followed him to the restaurant. I didn’t even know the name of the place that we were going or the name of the lake or town that we were heading to. I just knew it was a lake in Indiana.
When we were within an hour or so of our final destination, something happened. I don’t even remember exactly how it happened, but I lost my dad. One minute we were right behind him, and the next minute he was gone. My friend and I were probably having some deep conversation about music or cars or something that high school boys tend to talk about, but somehow I found myself with no-one to follow.

To compound the problem, we were now on a back road, off the main interstate. I felt like Lightning McQueen from the movie Cars. This was my status:
• I didn’t know where we were
• I had no idea where we were going to
• I didn’t have a map (navigation systems had not been invented yet)
• There was no cell phone
• I had never been in the area we were driving in
• There were no gas stations or places of business to stop at
• We had no game plan

Have you ever been in that situation before? I didn’t know if we should just pull over or keep driving or try to find some place to stop. It was total confusion. There was no way to communicate, and it was a guessing game. Even if I stopped for directions, what would I say? Can you help me get somewhere? I don’t really know where it is, but I sure could use some help.

Maybe you’ve never experienced a situation like that on a trip, but let me tell you something. There are millions of people living that situation out every day in their personal lives. They started off by following someone, probably their parents. There wasn’t a need to really do much thinking or planning, because those things were done for them on a daily basis. Maybe they went to college or perhaps they started a job out of high school. Maybe they never finished high school, or maybe they got one degree after another for years and years.

And then something happened. They realized they had no idea where they were, where they were going, how to communicate and no game plan of any kind. When you don’t have a target destination, then what do you do? You can take action, but what action do you take?

Most people take some type of action, regardless of the result. Action makes us feel that we are in control. It gives us a false sense of accomplishment. The problem is that action without a plan is simply aimless busyness.

In subsequent posts, I will detail a plan for creating a mission for your life, and you will be well on your way to doing great things.

Secrets to Reducing Risk

Thursday, October 7th, 2010

As an entrepreneur, I’ve learned that risk assessment is an extremely important skill set. Before jumping into a new venture, you have to weigh all the risks and compare those to the potential benefits. You then have to evaluate the probability of those risks, and then do the really hard part – make a decision. I’ve also learned that risk assessment is just as important in our personal lives. Think about the big questions you’ve had to consider in your own life for just a moment:

• What am I going to choose to believe as it relates to God?
• Who am I going to marry?
• Where will I go to school?
• Should I take the new job in a different state and move my family?
• How do I handle the specific problem my child is facing?
• Should I sell the house and consolidate my debt?
• Do I retire now or work a couple more years?
• Etc., Etc.

In “every day life”, we are faced with decisions that must be made one way or the other. Choosing to delay a decision is in most cases the same as making a decision. As you evaluate the components of a decision, you must consider the risks and the probability of those risks. We can learn a great deal from how entrepreneurs evaluate risk.

Risk Assessment starts first with identifying all the things that could go wrong. I usually try to focus on the top 3 things that could go wrong as a result of the potential decision I’m about to make. Once I’ve identified those top 3 potential items, I then put my own percentage of probability that they will happen. I have found in my own life that I tend to fear those things that are really not that probable, and I’ll bet you do the same.

As you assess the downsides of making a decision, you must also assess the downside of not making the decision. For example, if I choose to not pursue an advanced degree, what might be the risk for my career over the next 10 years?

Upon completing your assessment of the risks, you must now list the top 3 benefits of your potential decision. What are you getting by making this move or action? You should also list the top 3 benefits of a “no-go” decision.

Once you’ve had the opportunity to look at every angle of your potential decision (top 3 benefits of a yes and a no, top 3 negative outcomes of a yes and a no), you need to do a creative alternatives list. This is an area of risk assessment that many people rarely consider. As a person confronts a decision point in their life, they become so locked on that particular situation, that other alternatives are never considered.

Imagine that you are looking for a new house. Let’s suppose you only look at one house, and it has a lot of potential. As you start evaluating if this is the right home, wouldn’t you continue to look at other homes on the market? Why would you limit yourself to only seeing one house?

Unfortunately many people make the mistake of closing off their mind to the idea of multiple options. It could be that the perfect solution is one that you haven’t considered yet. As an entrepreneur, I have limited capital, resources and time, so as I assess the risk of a potential business, I also have to consider other opportunities that might yield higher results with less risk.

Have you ever heard the term, “higher risk; higher rewards”? Well, this isn’t always the case. I have evaluated several opportunities that were high in risk without much upside potential. In your personal life, the same can be true, and that is why you must take the time and effort to do a proper evaluation.

The final component to your risk analysis should include this one question. “Is there anything that I can do to reduce the risk of this potential decision?” The answer may be no, but it could be that your creative thinking might just develop an alternative that could really be interesting.

Once you’ve evaluated the risks, the probability, benefits of both sides, considered all the potential options and you’ve considered how to reduce the risk, you will be equipped to do great things. In the next blog, I will reveal a great secret to taking the risk out of risk.

Indecision could be affecting your personal life and your income

Thursday, October 7th, 2010

We all make decisions every day, and every decision has consequences that can have some degree of impact on our lives. Several years ago, I struggled with making tough decisions, especially when I was faced with multiple choices that all seemed good. I always wanted to keep my options open, and a decision inherently blocks all options but the one you chose. To decide means to cut off from any other choice.

It was painful for me to be cutting off choices that were good choices. What if the choice I made appeared to be good, but it ended in disaster? What if I could have made a better choice? As a result, I hesitated to make tough decisions by not making the decision at all. This strategy is a common one among those who fear decision making.

I learned over time that by not making a decision, I was actually making a decision. In every case, I unintentionally made a bad decision through indecision.

My leadership abilities changed profoundly after I realized the effect that indecision had on my life. Napoleon Hill wrote this about Henry Ford, “One of Henry Ford’s most outstanding qualities was his habit of reaching decisions quickly and definitely, and changing them slowly.”

Hill also writes, “Analysis of several hundred people who had accumulated fortunes well beyond the million-dollar mark disclosed the fact that every one of them had the habit of reaching decisions promptly, and of changing these decisions slowly, if, and when they were changed.”

I have found that people who struggle to lead effectively struggle to make decisions in a timely manner, and they tend to change their decisions regularly. As a person who always worked to keep his options open, I found myself vacillating from one idea to the next without ever really taking a stand by making a decision on the most important ideas.

It is imperative that you learn to make effective decisions as quickly as you can, and then you must hold the line on those decisions through thick and thin. I believe it wise to always leave room for a change, but that change should be made slowly and with great care.

Once you’ve committed to a decision, you no longer waste your time in turmoil and indecision. You are now free to focus on next steps and moving forward. You’ll be well on your way to doing great things.