Weekly Thought Starter #31: The myth of failing businesses – Action vs Result Goals
Weekly Thought Starter #31:
July 31st, 2017
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Action Versus Result Goals
AGENDA OF TODAY’S THOUGHT STARTERS
- The myth of failing businesses
- Real Estate – undisputable facts
- The one page commitment letter – to yourself!
‘THOUGHTS OF THE WEEK’
In of the SUCCESS magazines 3 years ago the then editor Steven Slon wrote about the fact that in business there are a thousand myths. For years, we keep hearing that in this or that city and particularly in New York, Alligators roam the sewer system. No one has even seen one, there is absolutely no proof and deep down we know also it isn’t true, but the myth persists.
One of the biggest and most often repeated one, is the myth that ‘seventy percent of all businesses fail within in their first four years.’
Every entrepreneur hears about it, everyone repeats it … then all shake their heads wisely and say, yeah, life is tough.
Trouble is – it isn’t true!
According to Slon, some 20 years ago a midlevel Small Business Administration functionary did make a speech mentioning the 70 percent failure rate of small business. But what he meant to say, according to Jere Glover, the chief counsel for advocacy of the SBA, it is only ‘when businesses do fail, 70 percent of them go under in their first year.’
Quite a difference!
But, the mistake was picked up by the press, and then repeated and repeated until it became folklore. I bet you if you repeated the above story people would argue with you – that’s how ingrained this myth is. Yeah, but … I KNOW that businesses fail in their first year. Yet, no one can answer the question: ‘Who says so? Where is the proof? Yet, we and they and all of us believe.’
Says a frustrated Glover: ‘This statistic has lived on as a factoid that no one can kill.’
So, please next time you hear someone tell you how foolhardy it is to start a business today … tell him or her the facts.
According to SUCCESS magazine the following facts ARE true:
As of 2010 there are about 23 million small businesses in the United States . Each year only about 53,000 of them declare bankruptcy and 20,000 shut down owing people money without going bankrupt. These are the ‘real failures’ and if you do the math, you’ll see that they are statistically insignificant – about one third of one percent.
Another 849,000 small businesses – or about 3 percent of the total – close up shop each year without owing money. These are not failures. They were sold; owners moved or owners retired.
So, next time you hear the 70% failure rate, shake your head and relate the facts.
In our real estate investment business we also have a thousand myths!!! Repeated often enough they become embedded in our subconscious and are believed. Yet, most of the myths are not facts.
– Real estate investors DO outperform the stock market (every time)
– Real Estate markets ARE rising
– Real Estate investors have seen their portfolios perform magnificently
– Hard assets win out over time every time
– Real Estate has better leverage than stocks.
In the last few months’ new myths come about.
- ‘Real Estate markets are finished.’
- ‘Real Estate markets are in a bubble’ funded.
- ‘Real Estate deals cannot be found.’
- ‘You can’t find cashflow properties’It is dangerous, because if believed it leads you to inaction.
Ask yourself this week what myths are being repeated in your area of expertise and attack them vigorously.
- Real Estate Investors DO create deals every day.
- Real Estate Investors DO buy foreclosures without any other bidders
- Real Estate Investors DO buy great deals BY OWNER
… BUT ONLY BY THOSE THAT DISREGARD THE MYTHS AND GET INTO ACTION!
Action thought this week
– This week I will listen to my instincts.
– If my internal ‘sounding board – my stomach’ tells me to question I will.
– I will not repeat a myth.
– I will repeat only facts, as I know them.
‘Three outstanding qualities make for success: judgment, industry, health. And the greatest of these is good judgment.’ -William Maxwell Aitken
Remember: We move towards our commitments … Are YOU committed to a course of action in 2017?
This month is a great time to review your performance of to date, measure your achievements against your plan and start developing our plan for 2017.
One of the most important aspects of any GOOD business plan is your very own Mission Statement, something that grabs you, that motivates you and gets you to think.
To succeed, everyone must develop and state their own purpose, goals and personal objectives in their own action plan. Create a statement in your own words!
Remember the sample outline in YOUR action plan:
MY ACTION PLAN
I, am committed to my family, my place of work, my co-workers and to my community.
My goal is to use the investment in real estate as a vehicle to create an independent income stream for me in the future.
I will accomplish this while I create a win-win situation for all I come in touch with, be they sellers, buyers, realtors, lawyers or tenants.
My aim is to maximize my personal income, help myself to true independence through building a portfolio of properties that create a fair profit and/or a monthly stream of income at a specific time, which I will determine in this plan.
I understand that in 2017 … ‘if you don’t grow personally you will wither and stagnate.’
I will read one book on real estate investing a month, challenge myself to learn ‘computereeze’, learn to ‘be interactive’ in Social Media and do all I can to ensure that all who come in touch with me will eventually benefit from my real estate know-how, my wisdom, my experience and my caring.
I work for myself, but not by myself. I belong to a team. I belong to a family of investors. I belong to a Real Estate Action Group. A team of family and friends, a team of owners to buy property from, a team of buyers to sell property too, and a team of tenants that help me pay off my mortgages.
Everyone I come in touch with will be part of my ever-growing ‘success family’.
My personal growth group. My success depends on building quality relationships, which last forever.
Everything that I want is initially in the hands of other people. By staying involved with my current and every growing base of friends and business associates and the new people I intend to be involved with, I will achieve anything that I set out to do.
While hard work is essential to all success, my goal is to work smarter and not harder. Working twice as hard with old methods will still only give me half of the results of the past.
If I do what I have always done, I will get the results I have always gotten!
I am open to the new, exciting, challenging, rewarding, prosperous 2017 and beyond, where having a personal life is just as important as having a business life.
Everyone can and will participate in my active way to growth. My success is the foundation of my personal growth. I will be there for myself first, my family second and my clients next.
‘Today’s reality is based on yesterday’s dreams’
I am creating a plan of action because I am careful of what I dream about today. I am doing so to ensure tomorrow’s reality is based on what I truly plan to be not what I am simply hoping for.
Signed: ……………………….. ME. LTD!
Make a statement that reflects YOU and YOUR values. DO it now!
COMMIT – PERFORM – MEASURE!
…and Live life large!
Ozzie and Ralph
“NOW, ONE THING I TELL EVERYONE IS LEARN ABOUT REAL ESTATE. REPEAT AFTERE ME:
REAL ESTATE PROVIDES THE HGHEST RETURNS, THE GREATEST VALUES AND THE LEAST RISK”. — ARMSTRONG WILLIAMS
1) PLEASE NOTE: Your next exciting meeting is Monday, August 14th, 2017 at 6:30 PM (sharp!). The meeting will be at: The Vancouver Alpen Club, 4875 Victoria Drive, Vancouver. If you are bringing a guest, please e-mail email@example.com.
2) NEXT ACTION PLAN/GOAL SETTING MEETINGS:
Next Action Plan Meeting is Monday August 14th at 5:30 (Alpen House before the monthly meeting).Action plan meetings are the foundation of your REAG membership. At these informal meetings, there are no wrong answers. Groups of approximately 10 members share their goals and develop specific 3- day “action plans” to bring them to reality. Earl Nightingale said, “Success is the progressive realization of a worthwhile goal”. At the action plan meetings, we celebrate small successes and acknowledge everyone’s progress. The idea is to keep focused on a monthly basis and get into action. It’s all part of the process of “growing into your future best”. Sign up today!
For Action Plan meetings registration go to: https://www.reag.ca/events/categories/action-plan-meeting/
Action Plan meeting participants are seeing great success! Try attending the next one!
3) make sure to explore all the new and exciting features at www.reag.ca
Take a look at your own private member section. Create your own team, post your deals with photos, and respond to other deals directly with the posting member. Use it! We developed it with YOU in mind. Feedback is welcome and appreciated.
4) Don’t forget to use the DEALS section
You will find it on our website at https://www.reag.ca/forum/hot-deals/ as a place to post for your deals. If you haven’t used it, TRY IT! It is so simple to submit. You are able to include photos of the property as well as all the details directly to other REAG members.
5) SUBMIT YOUR GOOD DEALS TO OZZIE AND RALPH
Ozzie is always looking for great deals to be featured in his Hot Properties section of the Facts by E-mail, as well as potentially on Michael Campbell’s CKNW Radio Show and its free. You get exposure to thousands of investors! Send your deals to Ozzie no later than Friday at noon for inclusion in the following week.
6) SOCIAL MEDIA
If you are on Facebook, Twitter, or LinkedIn, make sure to check out our REAG page and “like it” for updates on members, activities, and Real Estate updates!
Ozzie and Ralph are also on Facebook, Twitter, LinkedIn and Instagram! Make sure you send them a friend request!
7) Elevator speeches
If you have an accompanying PowerPoint presentation, you must send it to us at least 24 hours before the monthly meetings! Try cutting down to 3 slides! We cannot guarantee PowerPoint presentations will be available if they are sent to us less than 24 hours in advance.
8) Submit your offers!
Don’t forget to submit your offers at each meeting to be entered into our Wine Bottle or REAG Shirt draw!
They must be real offers, not chicken scratches on a piece of paper. They do not have to have been accepted offers, the idea is to MAKE OFFERS. Show and tell and win!