Top Tips:
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The Law of Three states that the
business owner should haveone main focus with two supporting areas of activity. Be fanatical about improving these three areas.
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Stop spending time doing tasks of low importance. They must be delegated or outsourced.
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Put a value on every minute of your time. Once you have established a benchmark hourly rate, do not engage in any activity that will not pay that rate.
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Coaches help fast-track your business success.
The Entrepreneurial Mindset
Entrepreneurs are typically ambitious and hungry people. These characteristics serve them well in the establishment phase of a business when they need to put in long hours, face setbacks and challenges and have a huge workload.
But research shows that building a successful business takes time. The start up phase takes two years, then another two years to become profitable and seven to be successful, which Brian characterises as a business that is profitable, controlled, and able to afford the owner a comfortable lifestyle and an income in the top 10%.
Given their impatient nature, business owners often start taking on new challenges to grow the business faster. The problem is that whilst doing more and more, they don’t relinquish any of their existing responsibilities, which means they lose focus and their time management becomes out of control.
Successful entrepreneurs learn to stop spending time doing tasks of low importance. They learn to delegate, outsource and focus on fewer things that only they can do, and then do them well.
A well-known concept amongst business experts is the 80:20 rule. This states that 20% of what we do accounts for 80% of the value of our activities. The other side of the coin is that 80% of what we do contributes little or nothing towards our success. To get the frantically busy lives of entrepreneurs back in control, it is imperative to identify what the 80% of wasted efforts are, then find another person to undertake them.
The Law of Three
 Brian recommends the “Law of Three”. This states that the business owner should have one main focus, with two supporting areas. This will vary depending on the strengths and weaknesses of the business owner and they emerge over time. Successful entrepreneurs get very good at their three things.
There is no magic formula for discovering what the three focuses should be and it will be different for everyone. It is a matter of trial and error, but your natural talents will emerge over time, then it is imperative you become fanatical about improving these talents.
Some entrepreneurs see themselves as technicians and therefore may feel that the rule of three is not applicable to their situation. Not so. Brian uses the example of hairdressers, who charge by the hour and therefore may believe that the only way for them to make more money is for them to work longer hours. Firstly, successful hairdressers need to refine their skills by entering competitions, go to hair shows and taking courses. Then they can leverage their knowledge by designing business systems and training others. They can then buy multiple salons, which leads on to chains, the creation of hair care products, etc.
The Power of Down Time
A workaholic is like an alcoholic – you just have to stop the behaviour. Brian believes in “rested thinking time” which can only happen if you slow down and take time out of day-to-day work to recharge the batteries. This was a lesson he learnt the hard way. In the early part of his career he worked 12– 14 hour days, seven days a week. He was constantly exhausted and knew there had to be a better way.
Once Brian started taking regular time out from the business, he was able to recharge his creativity and enthusiasm, and as a result he came up with “million dollar ideas”.
Value Your Time
Studies show that the top one percent of sales people respect their time. You also need to put a value on every minute of your time. Establish an hourly rate and do not undertake activities that fall below this rate.
Professionals get paid by the minute, while mediocre people are paid by the day, month or year. The entrepreneur should not undertake any low level labour.
Have a Plan
Planning is an important ingredient of success. Brian plans his numerous speaking and coaching commitments months ahead. He also sits down at the end of each day and plans out his activities for the following day, prioritising his tasks. A part of his plan is to devote 300 minutes a week to swimming and walking and there is always time devoted to reading self and business development books and articles.
Have a Coach
If Tiger Woods and Greg Norman have coaches, why shouldn’t we? Brian says that a business coach is an excellent way to fast track the growth of your business and today 20% of SME owners have a coach.
Brian says that it is possible to improve your business alone over time, but it is so much easier to improve the bottom line with the guidance of someone else. In fact, research shows that the payoff for coaching is 10 to 50 times the cost of the coaching and this is why the industry grew by 600% last year.
Choose a coach by reputation. You will know after one session whether that person is right, but remember for the coaching relationship to work, you have to drop your ego and defences and be open to advice.
Walk the Talk
Brian “walks the talk”. He writes four bestselling books on personal and business development a year and these are translated into 22 languages. He speaks a hundred times a year around the world and consults on strategic planning and management development. And if all this isn’t enough, he controls a real estate business in which he actively manages up to 20 different real-estate projects at any one time.
Perhaps the most startling things about Brian’s life is not that he manages to fit all this into his day, but that he achieves it and is able to work for 150 days and spend time with his family and friends, every year!
Summary
Brian believes that now is the best time in history, especially in free, entrepreneurial democracies like Australia. Now it is possible for more people to make more money than any other time. The only limit to what you can do, be or have is the limits you place on yourself.
Source: Brian Tracy interviewed by Paul Buckingham for The Small Business Mentor Program
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