04 Habits of Millionaires That Work for Everyone

I’m humbled that my career as a penny stock trader has helped earn me the title “millionaire,” and I’m even more blown away to count two of my students among the ranks of this elite club.

Having worked my way up from a few thousand dollars in bar mitzvah money to a few million has given me a unique perspective. I know what it’s like to start out with no big advantages, but I’ve also had plenty of exposure to the unique way millionaires think and act.

As a result, I’ve been able to see what they do differently and how they both earn the big bucks and protect their financial positions. I’ve applied all of these principles to my own life, and if you aren’t currently where you want to be financially, I recommend you do the same.

1. Millionaires work hard.

The “get rich quick” thing is such a cliché, but the thing is, it’s rarely ever true. We all see startups earning million dollar valuations, but the real story is that their “overnight success” was ten years in the making.

Millionaires aren’t afraid to work hard, and they take advantage of the principle of “success begets success.” When you have a few small wins, you build on them. You take the next step and you keep plugging away, because you’ve had a taste of success and it’s great!

I hear from a lot of trading students who are looking for a way to make a few quick bucks trading penny stocks, and I always have to disappoint them. There are no secret “hacks” to building generational wealth. There’s only hard work, discipline and a willingness to push ahead through any circumstances.

2. Millionaires have clear goals.

Do you know why millionaires are so willing to work hard? Sure, experiencing regular success helps, but it’s also because they have clear goals.

Let me give you an example… Which of the following statements do you find to be more motivating: “When I get rich, I’m going to buy a nice car?” or “When I get rich, I’m buying a cherry-red Lamborghini Aventador LP 750-4 Superveloce?”

Which one do you think will motivate you more to do the hard work required to become a millionaire?

When I was in high school -- when I got my start as a stock trader -- I had a poster of a Lamborghini hanging on my wall, because that’s what I was working towards. My dream was so clear I could practically feel the wind whipping around my face as I showed off my sweet ride to my envious friends.

That’s the kind of goal you need to have if you ever want to be successful. If your current goals are a bit lackluster, whip them into shape to continue down the path towards becoming a millionaire.

3. Millionaires are willing to fail.

Being afraid of failure makes you overly cautious. If you’re constantly afraid of failing, you’ll miss out on the opportunities that present themselves to you -- all because you were too scared to move forward.

Millionaires take a different approach. Instead of being afraid of failure, they welcome it. They see it for what it is, a chance to learn valuable lessons that show you the way forward.

Sure, you’re not going to go out there and deliberately fail. That would be stupid, whether you’re an entrepreneur, a penny stock trader or some other kind of professional.

But when you do fail, and it’s virtually guaranteed that you will, try to learn what you can from the experience. Yes, it’ll sting, but if you use your failures as opportunities to improve yourself and your business, you’ll eventually become fearless in the face of the smart risks that’ll make you a millionaire.

4. Millionaires have successful mentors.

I have to tell you, if I’d had a good mentor when I started trading penny stocks, I’d have been a millionaire years sooner. I was figuring everything out on my own. Learn from my mistake!

A good teacher can cut years off your learning curve and save you huge amounts of money. A mentor can’t do your work for you, but they can keep you from making the same mistakes they made - and that’s a pretty priceless lesson.

I look at the two millionaire students that have come out of my Millionaire Challenge trading program, and I see that both of them have hit the seven-figure mark in just a few years by leveraging lessons that took me much longer to learn. Their examples prove to me that no matter who you are - and no matter what you’re doing - you’ll benefit from having a successful mentor at your side.

07 Metaphors to Help Understand Being an Entrepreneur

A metaphor describes one thing in terms of another, hopefully making that one thing easier to understand. Here are seven metaphors to help better understand the logic of entrepreneurship. The logic may surprise you, as it is not the logic taught in business school.

1. Find your flow.

Do what concentrates your motivation. Based on Mihály Csíkszentmihályi’s work entitled Flow, find the work that brings you joy, where you are creating things spontaneously, as if you were in a jazz band. Who you are, who and what you know determine the means of your entrepreneurial endeavor. According to Saras Sarasvathy in Effectuation, the founders of Starbucks did not study market trends but their own need for quality coffee. Facebook began as a sophomoric (pun intended) social comparison tool.

2. Choose the bird in the hand.

To put it another way, expert entrepreneurs follow more of an inductive process than a deductive one. They don’t analyze the environment for the best opportunities and then seek to exploit them; rather, they begin at home with what they can do and believe are worth doing. They create something new with what they have motivated by something that could be better.

College students tend to marry post-graduation. Some engineering students were frustrated they would have to hire a photographer to follow them around if they wanted to capture the look on their fiancee’s face the moment they proposed. So they created a ring box with a camera and recording device in it. It became a business called Ring Cam.

3. Get the right people on the bus.

As Jim Collins tells us in Good to Great, it’s first "who,'' then "what". Entrepreneurial knowledge, values and skills can be learned, meaning all people can become entrepreneurial. But not all people share the same worldview and values. It is important to find people to work with who share your passion

4. Be a quilt maker.

Getting the right people on the bus won’t work unless you are a quilt-maker making a patch-work quilt. Quilt-maker entrepreneurs, according to Saras Sarasvathy, begin with a bundle of ideas and organize them in a meaningful way. But more importantly, they create their work with others, who also contribute their ideas. Creating businesses is a tight-knit communal project. In contrast, puzzle-makers also work communally, but they are less business fabricators than opportunity arbitrageurs. Expert entrepreneurs seem to be business fabricators.

5. Get out of the building.

The most difficult thing for many people is to stop planning and to start doing. Specifically, according to Steve Blank in The Four Steps to the Epiphany, one of the biggest challenges for entrepreneurs is talking with potential customers, suppliers, channel members, investors, etc. The expert entrepreneurs studied by Saras Sarasvathy, in contrast, immediately created partnerships with customers who even helped finance their business project.

6. Make lemonade out of lemons.

Getting out of the building to test ideas on real people who are real customers provides immediate feedback. To do this means seeing failure -- not making immediate sales -- as a learning opportunity. Expert entrepreneurs, according to Saras Sarasvathy, leverage contingencies. Ivory soap and 3M sticky notes were mistakes.

7. Invest in riders, not horses. 

A corollary to getting the right people on the bus is looking for people who are more likely to invest in people versus their ideas. Business ideas fail, but people who keep trying are more likely to improve the odds with each new venture.

For example, the founders of Amway failed when they attempted to operate hamburger stand, air charter service, and sailing businesses. But they stuck together and kept experimenting with ideas. Eventually they tried selling Nutrilite products for Carl Rehnborg. Here they learned about direct sales and multi-level marketing. Later they would buy the company and add other products for their distributors to sell. Like all the entrepreneurs listed above, it is highly doubtful they envisioned what their businesses became.

Surprisingly, entrepreneurship is less about planning and control, and more about spontaneity and adaptation. It is first about people, then ideas. Regarding ideas, it something close and personal, not far away and objective, and it thrives on NI (network intelligence) and EI (emotional intelligence) and IQ.

7 Must-Have Attributes of a Member of a Super Startup Team

Every entrepreneur realizes that building a great team is critical to the success of his or her startup, but many don’t realize that it takes more than multiple qualified employees to make an effective team. It’s possible, or even likely, that a set of skilled individuals can result in a dysfunctional team, where contention, jealousy, lack of communication or work habits jeopardize results.

As a mentor to entrepreneurs, I recognize that it’s easy to spot a dysfunctional team after the fact, but it’s not so easy to spot the right attributes of new team candidates, in the context of existing members. The approach I recommend is to make sure all candidates and existing members exhibit the following team-centric attributes, in addition to a unique set of skills and experiences:

1. Comfortable being challenged by associates.

The attributes to look for in interviews and reference checks would include minimal ego, self-confidence and a willingness to work with others. Team members who won’t listen, immediately become defensive and react emotionally to all suggestions will quickly make your whole team dysfunctional.

2. Enjoy a healthy level of conflict.

The most productive teams regularly engage in some healthy friction and heated debates between team members, but are able to avoid the emotion and drama that negates the value of these efforts. That’s the way smart teams make real change happen. Remove team members who initiate unhealthy conflict.

3. Commit to the team despite individual qualms.

Commitment means a willingness to negotiate and support a team decision, despite personal qualms and some risk. People who are perfectionists are not usually good team players. Test new candidates for their reactions to hypothetical and actual past situations.

4. Willing to take team accountability as personal.

Accepting accountability means not making excuses for the team, and avoiding the fallback to highlighting personal performance. It also means coaching and challenging peers on the team on behavior leading to dysfunction, even when it means risking a friendship.

5. Support the team view in external discussions.

You need team members who will support team efforts and progress, despite customer challenges or questioning from executives. Non-team players are quick to jump ship, and defer support to a popular counter view, thus undermining the effectiveness of the whole team.

6. Focus on team results vs. individual performance.

Team members that exhibit more concern for individual status and results are doomed to failure. A critical role of the founder is to effectively communicate the collective goals, characterize progress in the context of the team and integrate individual performance results.

7. Accept team relationships as personal as well as business.

Effective teams get to know each other on a personal basis, and find opportunities to meet for lunch or an outside event as a team. If you find a team member who truly dislikes other members, or doesn’t trust them as individuals, the whole team dynamic will be compromised.

In my experience, a few entrepreneurs seem to actively discourage any real team synergy, perhaps due to a lack of confidence in their own abilities, too much ego or a desire to retain autocratic control over each decision. This is a self-defeating strategy, since cohesive teams will normally outperform any set of star individual performers.

Thus the ability to build effective teams is one of the key differentiators of a great entrepreneur that outside investors look for, and the validation of having effective teams in place is high on the list of due diligence items before investor funding is committed.

If you find you have a dysfunctional team at your startup, fixing it should be a top priority. If you are just now hiring, be sure to keep the team-centric attributes on the same plane with other qualifications. On either end of this spectrum, teamwork or lack of it can make or break your startup, independent of the strength of your business concept.

09 Signs of Financial Infidelity

Managing finances as a couple is a part of marriage, but when it comes to marital money, financial infidelity is just as damaging to the relationship as sexual infidelity.

And financial infidelity may start early: “Often, [one] person realizes the relationship is coming to an end and will start moving money,” explains Jerome Johnson, certified public accountant, in Albuquerque, New Mexico. “They’ll open up new accounts in their name and start methodically moving money over.”

A prime ingredient here is the onesidedness of financial management: Most households divide responsibilities, but when one spouse manages the finances, the other tends to "check out." Ideally, both spouses should know what money comes in; what amount of it is saved and spent; the level of debt, if any; and the value of any assets and investments.

“Your finances are the lifeblood of everything you want to do,” says Charles Day, senior vice president at UBS. “You shouldn’t be oblivious to what your finances are, just as you wouldn’t be oblivious to your health.”

While accountants can investigate your marital finances, looking for specific signs yourself can help you figure out if there's a problem. Here are nine.

1. New spending patterns

The way to find misappropriated assets is to follow the money. If you know your partner’s salary, bank and credit card statements that list all transfers, withdrawals and deposits will show this person's spending patterns. “You start with an expectation of where the money went,” says Jerry Love, a certified public accountant in Abilene, Texas. “When you have a change of pattern and less money goes into the account, then you’ve a reason to be suspicious.”

People tend to move small sums out of an account over time and store this cash in a safe deposit box. Or they may deposit the money into a new account.

2. Excessive shopping

Lots of recent purchases may be indicative of a new shopping habit you don't want to help support. If your partner has credit cards you don’t know about, spotting the charges will require some extra investigation.

Reviewing each other’s credit reports once a year will also help to uncover any new credit cards and debts.

3. Fat brokerage statements

Frequent trading rarely results in profits, but instead has the potential to drain a couple’s savings, especially if your partner funds trades with high-interest-rate loans. Look for excessively thick brokerage statements in the mail, says Love, and if you don’t receive paper statements and trade confirmations, you’ll get an extremely long 1099B during tax time.

4. Moodiness

Gambling can be harder to detect. “You’ll see a change in mood -- people who gamble and lose don’t take losing well,” says Day. “That wouldn’t [just] be a shift in assets; it’s an addiction, and it can destroy your finances.”

Even though gambling wins and losses affect your taxes, people don’t always receive tax forms after playing a game. Casinos track a person’s gambling, with player’s cards, and you can subpoena the casino for a copy of that record. “This will show what kind of volume they’re doing at the casino,” says Johnson. If someone makes frequent ATM withdrawals at a casino, but doesn’t have any wins and losses on tax forms, question what happened to that cash.

5. Sudden changes in compensation

Someone planning a divorce may try to increase his or her divorce settlement by delaying compensation until after the divorce.

To head this off, look for sudden, unexpected drops in bonuses or salary. “If the economy is rolling on, you would not anticipate a lower bonus, or if bonuses are consistent for 10 years, they wouldn’t suddenly drop,” says Johnson.

Business owners have control of their income and can shift compensation until after a divorce by prepaying expenses, for example, or overpaying taxes that are returned in a refund check. “If you’re divorcing a business owner, you want to value their business and have a forensic accountant go through it,” says Day.

6. Recent purchases of art or antiques

One way to hide assets is to buy an expensive painting or valuable antique, like a rug, clock or expensive watch. These high-priced items hold their value, don’t have titles that can track the item and are easily sold after a divorce. “Most people look at cash in the bank rather than how much art someone has,” says Johnson. “It’s something that doesn’t generate a huge trail.”

7. Newly opened accounts

Since people tend to be loyal to brokerages and banks, dividend income from unfamiliar accounts can be cause for concern. If you don’t see regular statements for the new accounts, any income that’s generated will appear on your tax returns.

“If somebody has four or five investment accounts, ask why they have all these different investment accounts,” says Johnson. “Sometimes, they’re doing it to confuse people because they transfer money back and forth. Suddenly, you could have a withdrawal that’s not deposited anywhere. Transfers between accounts raise red flags.”

8. Signing documents without review

“If you’re going to sign something, your signature is extremely important and valuable,” says Day. “If you’re signing a tax return, have a discussion about what you’re signing. If the other person gets annoyed and doesn’t want to explain anything, the more they resist, the more you should want to know.”

Your signature makes you responsible for what’s in that document, even if it’s fraudulent. “The "innocent spouse rule" is not that easy to prove,” says Day.

9. Lack of communication

The period prior to marriage is when couples should decide on joint financial goals and a budget, and discuss spending habits, credit scores and plans for managing their money.

“When you first get together with someone, you need to put all your finances in order,” says chartered financial analyst Robert Stammers, director of investor education for the CFA Institute. “If you’re going to keep your finances separate, and don’t have any controls, that’s a problem, and you can’t get angry if your partner spends their money frivolously, because you have no way of knowing.”

Be sure to talk about your finances at least twice a year throughout your marriage. “The more you talk about it, the less likely someone will hide something,” says Love.

05 Ways to Effectively Communicate With Employees

Effective communication with employees takes effort, repetition, thoughtfulness and most importantly needs to come from the heart.   Communication needs to be something business leaders seek to do whenever they can rather than considering it a check box before getting back to the "real work" of running the business.

Currently, I serve as the CEO of a local marketing solutions company that was created by combining two business units that were previously part of a bigger company. I was tasked to manage this complicated company carve out with the objective of transforming a legacy print business to a thriving digital business.  A major challenge was the employee base was more than 5,000 people with offices in 34 states, which meant regular and effective communication across the organization was critical to success.  From day one I chose to create an environment of open, transparent dialog about the company, our progress and what we need to do to win.Here are five strategies I recommend putting in place for creating a culture of communication and alignment:

1. Send weekly correspondence to all employees in the company.

Every Monday without fail for the last three years I have sent a personally written email to every employee in the company about things I am thinking about and important topics for the business.  This kind of communication serves as an opportunity to truly connect and engage with the entire organization.  

2. Build comfort in talking about what is not working.

Many companies have a culture of looking for the positives and avoiding calling out and discussing the negatives.  Great companies focus on what is not going well so they can dig in and get better. This approach allows employees to feel they have a say in their company’s culture and their ideas are valued.

3. Hold town hall meetings.

Whether you have offices in one city or nationwide, plan for travel to have face-to-face conversations with these groups no matter the size. Make sure you aren't just lecturing. Foster a two-way candid cialog. You will be able to learn a great deal about what is really happening in the business from these sessions, which can help you and your leadership team make better decisions.

4. Put on an annual senior leadership conference for your top leaders. 

This type of conference is a working session where every leader can hear the company strategy, plans and messages together and bring the information back to their teams.  An equally important value is the informal network building that takes place that enables leaders to have effective communication with each other throughout the year.

5. Answer every employee email within 24 hours. 

We are all busy but always have time for communicating with employees that work hard every day to serve your customers and build your company. Your team wants to be heard and feel appreciated.

Commit to effective communications and you’ll be glad you did. 

07 Tips Entrepreneurs Need to Know Before Investing in Real Estate

Why should entrepreneurs invest in the first place? The answer is: to have enough money to live on when we no longer can or wish to work. To put that money aside, however, we have to accumulate enough to offset inflation and the taxes that erode our savings. And for that purpose, real estate is an excellent solution.

The great thing about real estate is that even in a bad economy, it will usually fare better than stocks. Land, after all, is a finite resource. People need a place to live, work, shop and play -- so real estate is really just a matter of supply and demand. 

What's more, real estate will continue to appreciate despite occasional slow-downs in the economy. In fact, it's proven to be the best way to create wealth, and an investor need not be a genius or a millionaire to succeed. Here are some tips, then, for entrepreneurs on getting started and succeeding in real estate investing:

1. Do -- plan your financial goals.

Before you buy that first property, or do your first analysis, determine what you expect from your investments. What are your financial goals?  We often discuss the “time vs. money” concept: The more you have of one, the less you need of the other to reach your financial goals. This means that you shouldn’t shy away from taking the time to understand your goals and make sure each investment is a step toward achieving them.  If you are unsure exactly how to create financial goals, meeting with a financial advisor is an excellent first step. 

2. Don't -- spend a fortune on books, tapes and seminars, then just put all that information on a shelf. 

You absolutely do need to learn some basics before venturing into investing. So, be sure to do some studying, but don’t let “buying and collecting” information become your endgame. Again, having goals in mind will make the process much more straightforward. It’s easy to get so tied up in the “research” phase that you never actually take action. Instead, write down specific questions you want answered or goals you want to meet before delving into the latest book/seminar/etc. 

3. Do -- look at plenty of properties. 

Don’t just grab the first property you look at. Too many investors buy properties because they “look nice,” or the investors don’t want to put the work in to look at what’s really out there. Remember, you won’t be living there, so don’t make your investment decision based on your personal preferences. While you shouldn’t fall into the trap of analysis paralysis, make sure you are thorough in looking through properties. Give yourself a wide range of options, then narrow them down based on the criteria (goals) you have set for yourself.

4. Don't -- postpone starting your investment program because you’re waiting for that perfect “unicorn” deal.

That’s the flip side to number 3, of course. Plenty of beginning investors suffer from “a-better-deal-may-be-just-around-the-corner” syndrome. This can backfire in a big way, and you could potentially let a great deal slip just because you’re holding out for something better. Your task may feel difficult if this is your first property, but you must realize that the “perfect deal” rarely (if ever) exists. Better to execute on a deal that meets most of your criteria than wait for another that may never come. 

5. Do -- a thorough financial analysis.

Be realistic. Look at different alternatives to determine which makes the most financial sense. And never buy property at a higher price or on less attractive terms than your analysis says made sense. Be wary of sellers that try to over-estimate the value of the property through pro-forma (estimated) data. While you can certainly use a pro-forma to start the conversation, make sure you know the real numbers before closing. Look at previous years’ tax returns, property-tax bills, maintenance records, etc. to get a good idea of the real income and expenses.

The most important figures you should know are: 

• Net income (income/expenses) 
• Cash flow (net income/debt financing payments) 
• Return on investment (cash flow/investment)
• Cap rate (net income/property price)
• Cash-on-cash return (cash flow/investment)
• Total ROI (total return/investment)

In each case, “investment” refers to how much you invest in the property. "Debt financing" refers to any loans you may have to take out to buy the property. And "total return" refers to cash flow, equity accrual (i.e., equity gained from your tenants paying their rents), appreciation and taxes.

Once you have understood these figures, you should have enough information to determine whether or not acquiring the property fits with your financial goals.

6. Don't -- try to buy property that the seller is not motivated to sell.

If the seller is motivated to sell, you’re not likely to get the price best aligned with your financial goals. So, how do you know if a seller is motivated? Look at the asking price. For example, If the property has been on the market for a year for, say, $200,000, with little-to-no price reduction, the seller is clearly not very motivated to move the property. However, if that same property has been on the market for a year and has had its price moved down considerably, the seller most likely wants to do whatever it takes to get the property off his or her hands. Of course, this raises the question of how to find motivated sellers. There are many approaches, and not all of these will work for you, depending on what property you want. But a few trusted methods include: 

• Attending open houses 
• Looking for vacant/unattractive properties that are for sale 
• Spreading the word about yourself and what properties you are looking for -- truly 
• Going the old-fashioned route and looking in the classifieds of your local paper 

These are just a few ways to find sellers, but there are potentially dozens of other methods, depending on what type of property you’re looking for.

7. Do -- know the difference between real estate investing and the business of real estate.

As an entrepreneur, you already have a business, and real estate investing is best used to support that business, not replace it -- unless that’s your intention. In other words, don’t get so caught up in executing transactions that your core business falters. If that happens, you’ll be facing a bumpy road to get back to stability. Unless your business is itself real estate, or you’re looking to get into the business full-time, always remember that pursuing these deals is a means to an end, not an end unto itself. 

So, if you’re interested in staying ahead of taxes and inflation while building security for the future, real estate investing may be for you. What are you waiting for?

5 Ways You Can Make More Money While Working Less

Are you one of those people who are convinced they have to put in more hours to make more money? That was my belief, too, until I started surrounding myself with successful entrepreneurs who have put systems in place so their businesses will thrive with or without them.

In an episode of my podcast, The Mentee, I spoke with Keefe Duterte, who currently owns one of the top Allstate insurance agencies in the country. He told me he went from working 110 hours per week to going into the office only two-to-three days a month -- while making more money than ever before.

This transition started, he said, when he was packing for a business trip and his daughter begged him to stay home. As any parent would do, he explained that he had to work so she could have and do all the fun things she enjoyed, like horseback riding, their nice house and vacations. What his daughter said at that moment would change everything, Keefe said.

She said, “Dad, I don’t care about any of that. I just want to be with you.”

Have you ever felt that you are missing the moments that truly matter? For Keefe, the time had arrived to reevaluate his priorities and put systems into place so his business could thrive with or without him.

Here are four things you too can do to make more money while working less:

1. Act "as if."

Get specific on your goals and the type of life you want to be living. How much money do you want to be making? What level of activity do you want to have in your business? Now, imagine the people who are already performing at that level. What do they do that is different from you? What tasks are you currently doing that they delegate?

To elevate your game, act as if you are already where you want to be. One suggestion is to hire an assistant. You may be thinking, “I can’t afford an assistant.” I would challenge you to ask what your time is worth. Today, you can leverage virtual assistants internationally who can be hired for as low as $3 per hour (or for minimum wage in the United States). If you don’t think your time is worth more than those modest sums, then you will likely not make it as an entrepreneur.

2. Focus on the highest-income and impact activities.

We all have 24 hours in a day, yet how is it that some people are able to get so much more done in the same amount of time? Do they have some superhuman power you and I weren't born with?

No, they just understand that making more money in less time comes down to identifying those little hinges that swing the big doors. Ask yourself, “What are the highest-income and impact activities I can take to advance my business today?” Then execute those specific activities precisely until your desired task is done. Do not allow yourself to be controlled by someone else’s agenda (email and phone calls) until you have completed the vital tasks you have identified.

3. Surround yourself with great mentors.

The late entrepreneur Jim Rohn said that, “You are the average of the five people you spend the most time with.” Who are your five? Are they already living the life you want to be living? If not, what does this say about you and your prospects?

If you want to take your business to the next level and free up more time, surround yourself with mentors who are already living that lifestyle and can guide you along the way. One of my own mentors, Mark Anthony Bates, said, “It is tough to read the label when you are inside the box.” Very few people can objectively look in the mirror and give themselves adequate constructive criticism. 

This is where a mentor comes in. This individual will be able to look at you objectively and give you actionable guidance based on his or her experience. This will accelerate your progress drastically. Here is one resource I put together on how to find high-level mentors.

4. Consistently practice daily self-improvement.

Your mind is your greatest asset as long as you learn how to leverage it appropriately. Some of the most successful entrepreneurs have a ritual of daily self-improvement. Challenge yourself to spend the first 30 minutes and last 30 minutes of every day reading something positive that will expand your mind and enhance your skillset. Your business can grow only as much as you allow it to, and that growth starts with you.

You likely moved into the world of entrepreneurship to have more freedom. Implement these four things and you will find that you do not need to trade dollars for hours and that freedom that so many seek will be your reality.

06 Steps for Creating a Culture of Significance From the Ground Up

How can entrepreneurs keep their employees engaged for the long haul, when the excitement of the seed funding, product launch or IPO wears off? It isn't easy. Indeed, Gallup reports that 70 percent of today’s employees are disengaged.

One solution is to view your company as an entity intended simply for the betterment and enrichment of the human race, rather than the other way around. You can do this by creating a culture of consequence: a culture imbued with a sense of personal significance and meaning in the work and workplace. Fulfillment derived from such a culture engenders intense meaning that sustains.

A culture of consequence goes beyond your vision statement and your foosball table. It’s about deep connections: up, down and across the organization. Such a culture provides the foundation for a rich community that creates a sustainable competitive advantage and delivers superior performance through highly motivated employees.

Here are six tips that can help build the foundation of a culture of significance from the ground up:

1. Give recognition the right way.

Make it personal by listening to your employees and understanding how they like to be recognized. Ensure the recognition is meaningful by creating a rhythm of frequent, but not frivolous, recognition. Have it be motivational by celebrating the first downs and the touch downs. Make it communal by enabling peers to get in on the action. And finally, make it specific so that employees genuinely feel appreciated and understood.

2. Show respect.

Demonstrate respect through day-to-day recognition of each employee, a practice I call “respectcognition.” Say hello to everyone. Communicate that you are approachable, understanding and open to ideas. Be considerate by recognizing a person’s state of mind and sense of humor. Acknowledge their time and effort by being on time and present in meetings.

3. Promote work-life harmony.

In the frenetic world of a new business, promoting work-life harmony can be difficult, so focus on your strengths. Many new companies can provide flexibility to employees with schedules or working remotely. Use the opportunity of being new to create simple processes or eliminate extraneous meetings.

4. Care for their personal well-being.

In a 2012 Towers Watson Global Workforce study the company found that only 42 percent of senior leaders are viewed as supportive of policies that promote employee well-being. Put effort into showing you care in approachable, low-touch ways. Ask an employee how he’s doing on matters related to outside of work. Role model your own healthy behaviors by leaving work on time and taking vacation. Promote healthy activities by encouraging her to start the yoga class she mentioned.

5. Be authentic.

Authenticity means not only being true to yourself but also being able to share your true self with others. Role model what it looks like by bringing your true self to work every day. Believe in the power of each employee bringing his whole self to work.

6. Promote teamwork and interdependence.

Draft a “Declaration of Interdependence” that communicates a team-first mentality with clear role definitions, behavioral expectations and expected deliverables. Show each employee how she fits into the team, and reward and recognize positive team work when you spot it.

Building your culture on the elements listed above will create a foundation of meaning, fulfillment and elevated performance that will feel collegial, not calculated. You can create a sense of “we’re all in this together” that will benefit your company today and for years to come. 

6 Things You Need to Check in Your Insurance Policy Now

When you're buying new shoes, you know what makes for a great pair: durability, style, comfort-maybe all three, depending on your preferences. You can walk away from the transaction confident in your decision.

But when it comes to insurance, most entrepreneurs are less familiar with what to look for. That's not good, because an ill-fitting policy can cause a lot more unpleasantness than just heel blisters and pinched toes. With hurricane season upon us, now is the time to make sure your insurance coverage matches your needs. Check these six things to make sure your policy is a good fit.

1. Deductibles and Limits

This one trips up a lot of people, so here's a review:

• Deductible = how much you pay before your benefits kick in
• Limit = the maximum your policy will pay. Most policies actually have two limits: an aggregate, which is the total amount it will pay, and an occurrence, which is the most it will pay for any one claim.

The secret? Be absolutely sure you can afford your deductible out of pocket. If you can't, you won't have access to your insurance benefits in the event of a claim.

2. Exclusions

These outline what the policy doesn't cover. Insurance companies get a lot of bad press for not covering people after disasters, but usually, the coverage exclusions are in black and white in the policy language.

One common exclusion that causes lot of grief for business owners? Flood damage. Standard Commercial Property policies don't cover damage from floods or earthquakes, so if you think you'll need that protection, get on the phone with your agent.

3. Endorsements

These are the flip side of exclusions. Also called "riders," endorsements tack on extra protections that standard policies don't offer. Endorsements can customize a policy to fit your unique business needs-for example, by adding a flood endorsement to a Property policy.

4. Conditions

These are the obligations you have to meet if you want your insurance to pay out. Most of them you'd probably do anyway-report claims quickly, protect property after a loss, cooperate during an investigation. But you want to know the specifics. If you don't, you risk unknowingly skipping a step and having a claim denied.

5. Supplementary Payments

Supplementary Payments are the extra costs your insurer is responsible for paying when defending you in a lawsuit. These may include investigators' fees, bail, even travel expenses that pop up as they work to resolve your claim. The best part about supplementary payments? They don't reduce your to policy limit, at least not for most General Liability policies.

That might seem too good to be true, but there are some less-than-happy surprises here, too. For example, if you're on the losing side of a lawsuit, the opposing attorney's fees may come out of your aggregate limit, leaving you less money for future claims.

6. Duty to Defend

The Insuring Agreement for each coverage type includes one of two phrases: "right to defend" or "right and duty to defend." Of the two, you want yours to read "right and duty." That way, the insurer is obligated to defend you in a lawsuit. Eliminate the "duty," and you eliminate that obligation.

Remember: don't judge a person until you've walked a mile in their shoes. And don't buy an insurance policy until you've considered these make-or-break policy features.

05 Ways Employers Bungle the Hiring Process Without Realizing It

More than half of employers admit it’s grown increasingly difficult to find qualified talent in the last five years, according to CareerBuilder’s 2015 Candidate Behavior Study, examining responses from 2,002 hiring managers across the U.S.

The shrinking pool of great talent to draw from could be due to mistakes employers unknowingly make that drive away superstar talent. The best employees don’t settle, and sometimes one bad experience during the hiring process causes them to walk away.

Here are a few pet peeves that drive away great talent:

1. Insufficient online presence.

Nearly half of candidates want to research an organization before applying and nearly 68 percent spent two hours doing so, according to The Talent Board’s 2014 Candidate Experience Report. About 42 percent wanted to learn about company values, about 40 percent searched for what the company offers and 33 percent check out employee testimonials.

Candidates want to know all about the company to help them decide if it’s a good fit for them. Keep a company blog and post frequently on social media to give job seekers insight into what it’s like to work at the company.

2. A drawn-out process.

The interview process is getting longer -- 22.9 days, according to a recent survey by Glassdoor. Yet, CareerBuilder found 58 percent of employers don't communicate with applicants about how long the interview or application process will take.

Communicate to applicants upfront what they can expect from the hiring process. Provide an agenda that explains the steps of the process, including how long applications should take and how long each interview will run. Also, give applicants tips to help them better prepare for the process so it doesn’t take longer than needed.

3. A long wait for a job offer.

For 38 percent of employers, it takes more than three days after the interview to extend a job offer to a candidate, CareerBuilder found.

Candidates are often interviewing with more than one company,and there’s likely nothing stopping them from taking the first offer they receive. Refine the interview and evaluation process so, once a decision is made, an offer can be extended quickly.

4. A poor job offer.

Employers from CareerBuilder’s survey said 18 percent of candidates, on average, reject the initial job offer and negotiate for a better one. Making a mediocre or poor job offer is a sure way to signal to a star candidate they won’t really be valued.

To hook the best talent, provide a competitive offer. Superstar candidates with niche skill sets know they don’t have to settle for less. They’ll easily go to another employer who meets their needs.

5. An overall bad experience.

Sometimes, it’s the little things that lead to an overall bad application experience. For example, 60 percent of candidates received generic job rejection emails after applying and 56 percent received no feedback at all, Jobvite found in its 2014 survey of 95,000 job candidates.

Employers should be more conscious of how they part ways with candidates to protect their employer brand. Letting rejected candidates down gracefully is essential because they’ll likely tell others about their experience. In fact, 51 percent of candidates share good hiring experiences on social media and 34 percent share bad hiring experiences, according to Jobvite.

Use a tool like CareerGift to help manage and learn honest feedback from candidate experiences. Use feedback from candidates to refine hiring methods so future candidates can have a better experience.

05 Things That Will Help You Create a Deeper Connection With People

You're getting things done, making decisions, moving initiatives forward, people even like working with you--all sorts of good stuff is happening. But are you truly connecting with people? Your answer may be an automatic "Why yes! Of course!" You're a great listener, you care, you make it a point to be the best leader you can be, you're doing it all. But, there's even more you can do.

Put your attention on these five things to give yourself and other. It will give you an extra edge in depth, connection, and inspiration. It doesn't matter if it's your employee, partner, boss, client, friend, spouse, etc.--everyone can play.

See them and honor them for who they truly are. One of our core wants and needs as human beings is to be seen. Acknowledge people for who they are, where they shine, how they show up - quirks and all - and you'll find a new depth of engagement and appreciation. How to do this? Pay attention. Listen. Look. Learn. Ask questions. Get curious. Use your intuition. Acknowledge them for who they are and how they show up. (Especially when they think you're not looking.)

Let them know their presence (and life) matters. Another core want and need? To know we're making an impact, that we're up to something that means something, that we're leaving a legacy, doing good - simply put, that our presence and life matters. Make sure your people are engaged in work and conversations that are meaningful to them, let them know the impact they have on you, let them know they matter. A little goes a long way. A simple acknowledgment about their contributions - big or small - to that meeting, that dinner party, that conversation, that project, to your life, has the opportunity to speak to who that person is and create fuel and joy for even more.

Connect--truly connect--with them. We want and need to be part of a tribe. As humans we are built to connect, to bond, to be a part of a group of people who care about us, need us, see us, and want to be with us. It's part of our human make up. Spend time with your people. Be present. Give them your full attention - if even for that one minute interaction. If you blend in one or more of the other things on this list, you'll get an even higher ROI on your connection investment.

Believe in them, and tell them so. Remember the last time you felt the energy of being believed in? Authentically believed in? Powerful right? Remember how it feels when you truly believe in someone else? Powerful too. We can be that for each other. If you see something in someone, say it. If you believe they can do something, speak to it. We often see more for others than they can see for themselves (and vice versa). It's an opportunity (and even a leadership responsibility) to speak to it. Gift them with the power of belief.

Grow them. Give them something to step into. What's the next thing you see possible for them? What do you know they want to step into but may be afraid? Where's their leadership or craft or personal edge? Speak to it and give them space to step into to grow and master that edge.

05 Work Experiences Worth More Than an MBA

1. Bringing a product to market.

It doesn't matter whether you do it in a one-person startup or inside a Fortune 100 company, there is simply no business experience more valuable than actually turning an idea into something that customers actually buy.

To do this, you must sell the idea to investors, create a prototype, cultivate early adopters, refine the design, create marketing materials, set up manufacturing, build distribution channels, train salespeople, establish customer support and then start all over again.

Throughout the process, you learn how managers, accountants, engineers, marketers, salespeople and customers all think differently. More important, you learn how to align all of them to work towards a common goal.

Business schools use case studies, most of which are about companies that innovated and succeeded or companies that tried to innovate and failed. But case studies are just talk.

The only way to really understand innovation is to get your hands dirty.

2. Surviving a layoff.

Being a leader means understanding human nature and there's no better place and time to (safely) study human nature than when a company is downsizing.

From the moment top management denies a layoff is imminent (the sure sign it's coming), a downsizing puts corporate politics into overdrive, complete with backstabbing and double-dealing so blatant it would make a Borgia blush.

Hard times reveal true friends, so one of the first things you'll learn is that, despite past camaraderie, your coworkers aren't your friends and that most of them will throw you under the bus in a heartbeat if it means keeping their own job.

As the top talent jumps ship before the pink slips fly, you'll learn that networking outside your company is crucial. As you watch your managers lie between their teeth ("our group won't be affected"), you learn a healthy sense of skepticism.

Most important, you'll learn if you're tough enough to take the heat, confident enough to reposition yourself, and whether you can remain calm in a crisis. No classroom or professor can possibly teach you any of that.

3. Enduring management fads.

I have a friend who works in a company that's implemented reengineering, quality circles, Six Sigma, TQM, management by objective, ISO9000, team empowerment, disruptive innovation teams, mission statements, and half a dozen more.

As an outside observer, it's pretty clear to me that my friend's company remains successful not because of these fads but in spite of them. Meanwhile, my friend has acquired the ability to smell management bullsh*t a mile away... and then ignore it.

For example, here's an excerpt from a course description lifted the Harvard Business School MBA catalog, circa 2005:

"This course teaches about cannibalization, network externalities, and globalization in order to generate superior value for customers by designing the optimum configuration of the product mix and functional activities."

Which do you think is more valuable: the ability to take that kind of gobbledygook seriously or what my friend has cultivated over the years-the ability to shrug off the biz-blab and concentrate on getting your job done?

4. Selling big ticket B2B.

Some B2B selling is all about price and delivery times. While challenging in its own way, that's pretty straightforward stuff, very much like selling cars or houses. There are other B2B sales situations, however, that aren't so simple.

Selling long-term projects, "mission-critical" services and major capital equipment can take weeks, months and even years. Like bringing a product to market, these long-term campaigns expose you to every element of business.

Inside the modern corporation, decisions to spend big money on anything involves building consensus among a variety of decision-makers, stakeholders and naysayers. Each party sees both their problem and your solution from a different perspective.

Even while you're working through the customer's various issues, big ticket B2B selling also requires you to work your own corporate issues, from enlisting resources to support your sales effort to taking care of the customer once they've purchased.

Anyone who's successfully shepherded one of these big ticket deals from first contact to ongoing support has already gone far, far beyond what can be learned in a business school.

5. Working in customer support.

Finally, there's no job more demanding than customer support and those who've worked there get an education about people and business that simply can't be purchased at any cost or learned anywhere except in the trenches.

Organizationally, customer support is Marketing's bastard stepchild, so it gets no respect from the rest of the company. If engineers build crap, marketers promise too much or salespeople sell the wrong product, it's customer support who takes the guff.

Customer support people are monitored, measured and paid based on how quickly they can cycle through calls. Despite this, they're expected to transform irate, frustrated, and frequently profane customers into happy campers. And then up-sell another product.

Because of the way most companies treat customer support, a stint on the phone banks reveals exactly how stupid companies can be and how mean customers can get. Survive that and nothing elsethe business world throws at you will even make you blink.

03 Traits Marathons and Startups Have in Common

Every year thousands of runners and hundreds of thousands of spectators come together to experience the world's oldest annual marathon.

For many the 26.2-mile run from Hopkinton to Boston serves as the ultimate test of stamina, will and determination. 

I have been fortunate to run and complete the Boston Marathon twice (2012 and 2014). Both times I came away from the experience with sore legs but also renewed perspective for what it takes to cross the finish line. This same mentality can be used in the startup world.

In 2013 I left Microsoft and joined startup Porch.com. Since that time I have observed that the growth of this company is a lot like running a marathon.  

Here are three traits marathons and startup life have in common.

1. Preparation

When you set out to run a marathon the first thing you need to do is prepare. From training to diet, you need to understand what it takes to succeed and build a plan to get there. My marathon training involves four months of dedicated training, a strict stretching plan and specific diet, so I am at my best on race day.

How this relates to startup up life: When you set out to join or build a startup you need to come prepared. Do you have the right people on the team? Are you working with the right partners? Do you have the right product market fit? How are you going to differentiate from others? All of these questions can only be answered once you have put in the time and effort needed to prepare properly. 

2. Patience

To complete a 26.2-mile marathon course you need to exhibit a high degree of patience. My marathon time hovers around four hours. That is a long time on the course with nothing but your thoughts to keep you company. When the race begins you need to put yourself in the right frame of mind. The finish line is far away so you need to attack the course one mile at a time. If you sprint out of the gate you won’t make far.

How this relates to startup up life: At a startup you need to be patient so you give yourself the flexibility to grow, learn and thrive. You won’t have all the answers at the outset so you need to pace yourself. Each day you will get a little bit closer to your goals. Whether it is launching a product, securing a partner or locking up financing, all of these milestones build on the success of previous wins. You need to take each one of these goals one at a time. Just like a marathon, you cannot get to mile 26 until you successfully complete the previous miles.  

3. Perseverance

During a marathon you are going to experience high and lows. Some miles you feel great, some you are convinced you cannot go any further. During my 2014 marathon I had a moment while running up Heartbreak Hill (the 20th mile) where I was convinced I could not go much further. I had to dig down and persevere.

How this relates to startup up life: Startup life requires a lot of perseverance. Things don’t always go your way. You will have setbacks. However those that truly thrive and succeed are able to stay positive and focus on what got them there. They know that they truly have what it takes and they rely on their strengths to pull them forward. Like finishing a marathon, sometimes success at a startup comes down to your ability to find a way, a will and dig deep when needed to move the business forward because you have the confidence to trust what got you so far in the first place.

17 Simple Habits That Make You Look More Professional

Here's a story from about 15 years ago. I was traveling from Seattle to Yakima for work, flying in a tiny commercial turboprop. There were only about 10 or 12 passengers, and the cockpit was separated by a curtain, rather than a door. We flew through the Cascade mountains in really rough weather, and the captain--a young pilot in his early 20s--pulled the curtain aside.

"The tower is saying it's our choice to continue to Yakima or turn around," he yelled over the din of the engines, "But I think we're gonna give it a try."

What’s wrong with this picture, right? "I think" and "Give it a try" are pretty much the last things you want to hear a commercial airline pilot say, especially in a bad storm. My fellow passengers nearly revolted. The pilot quickly changed course (both literally and figuratively), and we flew back to Seattle.

I've told that story a few times over the years, usually for laughs But remember: It wasn't really the storm, or the tiny plane, or air traffic control's apparent laissez-fair attitude that freaked us passengers out. It's that the pilot's attitude made him seem totally unprofessional--and we all lost confidence in him.

Here are a few of the attributes you can demonstrate to make yourself seem more professional. I’m not saying they’re easy, but they are pretty simple. (Keep in mind though--even nobody demonstrates them all constantly. You’re only human. Just try to be the best human you can.)

1. Confidence

This was the biggest problem with the pilot's performance that day. Confidence without the ability to back it up is useless, but if you’re truly competent, own it.

2. Candor

Clearly--don't be dishonest. Beyond that however, truly professional people are forthright. They assess the situation, calculate the risks, and offer a truthful opinion.

3. Self-awareness

This is a part of displaying confidence--knowing who you are and where you fit in the world, and owning your strengths and weaknesses. Then, work to buttress the things you don't do as well.

4. Strategic thinking

One of the basic tenets of success is to start with the end in mind. Truly professional people identify their goals, and work backward to achieve them.

5. Anticipation

Be like Radar O'Reilly. Wait, you probably don't get that reference, because most people reading this probably weren't watching the television show M*A*S*H in the 1980s. (See? Self-awareness.) No problem. Just know that focusing on others' needs to the point that you can anticipate their challenges and solutions breeds confidence.

6. Caring

Related to anticipation: You can't truly help others unless you can be bothered to learn about their goals and fears.

7. Realism

"Promise me the world," the song goes. That may be a way to get the boy or girl of your dreams to pay attention, but it does nothing to make you look professional. Instead, promise the most you can, consistent with your ability to deliver.

8. Follow-through

See what I mean? These attributes are simple but not necessarily easy. Say you'll do something; then do it.

9. Enthusiasm

This one is inspired by reader comments, when I said Pollyannaishness was unprofessional. Smart enthusiasm, on the other hand, is a very positive quality. Colin Powell put it best: Perpetual optimism is a force multiplier.

10. Diligence

This is related to follow-through, but it's not exactly the same thing. Be persistent, demonstrate worth ethic, and "check small things." (That’s another Powellism, come to think of it.)

11. Performance

Nothing says "professional" like accomplishments, especially repeated accomplishments over time.

12. Discretion

Caring and self-awareness, combined with good communications ability, leads to prudence and the ability to be candid without giving offense.

13. Curiosity

No professional is ever finished learning. ‘Nuff said.

14. Risk-taking

I hesitated to put this on here, out of fear of giving the wrong impression. Risk-taking doesn't mean being risky in the negative sense. Instead it’s about the realization that all courses of action involve some risk, and balancing that realization against the paralyzation of inaction.

15. Humor

You don’t need to be hilarious, but you need a sense of humor; it demonstrates perspective.

16. Fitness

This is unfortunate but true. If someone looks as if he or she doesn’t care about their health, it’s a lot harder to project professionalism--and with it, the notion that they care about other things.

17. Authenticity

It’s good entrepreneurial advice to “fake it ’til you make it,” but your performance needs to be grounded in truth. Otherwise, no matter your skills, your deficits, your interests--or frankly even the things you aren’t interested in--people can tell.

05 Quick Creativity Boosters

So much of business can feel routine and boring. Repetitive process is important for scalability, but it can also send everyone into a dull rut that can lower morale and productivity. Too much routine can also put you at risk of losing to the competition.

The most successful companies find ways to inject creativity into their process. Individuals are encouraged to be creative within their own areas. Useful innovation can take place even in seemingly routine functions such as HR and accounting. Here is my suggestion for a quick creativity boost and more insights from my Inc. colleagues.

1. Start over.

Whenever I feel like I have hit a plateau in my business I do what I like to call the "new beginning" exercise. I sit down and list out a job description for the project or position as if it was my first day taking on the role. This allows me fresh perspective to see what the person doing it prior — me — was doing right and doing wrong. Then I try and think of ways to do things totally different. The emotional detachment from the past helps me look forward to new and exciting methods and solutions.

2. Don't settle for mediocre.

When I was a kid we built obstacle courses and pretended the ground was lava; if we fell off, we "died." Extend that premise to your business: What if every mistake was a fatal mistake? If every shipment had to be perfect, what would you need to do? Pick any process and assume perfection, not incremental gains, is a requirement. It's amazing how creative you can be when there are no "outs" to fall back on. Jeff Haden--Owner's Manual

Want to read more from Jeff? Click here.

3. Get hot.

To jumpstart my creativity I find the best thing I can do is to jump in the shower and turn it on — hot. There’s just something about that hot water pouring over my head to loosen up all sorts of great ideas. Try it sometime! Peter Economy--The Leadership Guy

Want to read more from Peter? Click here.

4. Talk about it.

There are times, especially when I have to create a course or program, that I get particularly stuck. For me, this condition blocks all creative flow and leads to lack of motivation and inspiration. These are the times I visit a friend or peer who is willing to listen and perhaps even brainstorm with me. The simple act of thinking and processing out loud tends to unearth creative ideas and a process for carrying them out. When a lack of creativity hits, call your coach, a savvy friend, or a colleague, and enjoy regaining your flow! Marla Tabaka--The Successful Soloist

Want to read more from Marla? Click here.

5. Do something unrelated.

If you are under the pressure of a deadline to "be creative" you may feel like you don't have the option of letting creativity happen naturally. Rather than diving in and trying to trudge through, I find my best way forward is to step away from the project altogether. Creativity comes at the most unusual times and it can't be forced. For me, creativity is best inspired when I am doing something completely unrelated from the task I need to accomplish. If I am struggling to tap into my creativity, I take a long walk, swim laps or go to Starbucks for a jolt of java. I have learned that in order to jump in, I must first step back. Eric Holtzclaw--Lean Forward

07 Habits of Highly-Effective Entrepreneurs

Habits form our lives. They provide a framework on which we build professional success and personal happiness. As a society, we’re fascinated with the habits of others, usually prominent figures – celebrities, political figures, and, of course, famous entrepreneurs.  (Think: Richard Branson, Bill Gates and Mark Zuckerberg, to name just a few.)

My team and I often discuss these founders' routines and how we can emulate them ourselves. Here are the some interesting habits of famous entrepreneurs that can help give you starting points for your own successful daily routines.

Related: 21 Success Tips for Young and Aspiring Entrepreneurs

1. Minimize low-impact decision-making

Image credit: Frederic Legrand - COMEO | Shutterstock

To maximize energy and effort for high-impact and creative decisions, entrepreneurs need to minimize as many day-to-day choices as possible. This can be as simple as eating the same breakfast every morning or giving each day of the week a goal-related theme.

Facebook’s Mark Zuckerberg focuses his energy on his most important decisions and completely eliminates a minor decision each of us make every single morning: what to wear today? Mimicking Steve Jobs who wore jeans and the same black turtleneck every day, the founder of Facebook wears the same daily uniform of jeans and a hoodie. 

2. Don’t take no for an answer.

Image credit: Elon Musk Facebook

While we champion humility, sometimes the only way forward is to ignore the naysayers and have confidence you’re on the brink of success.

Known for refusing to take no for an answer, serial entrepreneur Elon Musk simply doesn’t allow others to tell him something is impossible. He puts himself on a path with forward momentum and creates tunnel vision toward a singular, innovative goal, refusing to allow anyone to deter him.

It has been reported that 90 percent of startups fail and without complete confidence in an idea and the determination to do whatever it takes to succeed, an entrepreneur won’t make it. 

Related: 6 Brilliant Lessons From the Startup World's New Rich

3. Take one step further than everyone else

Image credit: Marissa Mayer Twitter

Entrepreneurs are always characterized as the people willing to take one step further than everyone else. Yahoo CEO Marissa Mayer is the living realization of this and is known for expecting near-perfect results. She once insisted her team test 41 different shades of blue for Google search results. While some find her tenacity and dedication to perfection intimidating and daunting, she has built a career on a commitment to high-quality output and results.

4. Put your customers first.

Image credit: REUTERS | Lucas Jackson

Innovative startups start with the customer as the first priority. Entrepreneurs see a need and fill it, creating a better world for their users.

Twitter was built on the premise of quick worldwide communication, 140 characters at a time. More importantly, Twitter founders Evan Williams, Jack Dorsey, and Biz Stone were more concerned with improving usability and minimizing the infamous Fail Whales than with revenue during those early, crucial years. As a result, they built a world-changing communication engine in which his users feel like they have ownership.

5. Enthusiastically shift gears.

Image credit: Payal Kadakia Twitter

Many companies fail. That’s a reality. However, persistent entrepreneurs who are willing to try something different end up being the ones that ultimately succeed. Many incredible businesses and services are the second, third or even fourth attempt of an entrepreneur who just flat out refused to give up and instead decided to try something different.

When her first company, Classtivity, struggled to get off the ground, Payal Kadakia realized she was going after the wrong goal and switched gears to create ClassPass. The startup has grown exponentially in its first two years by scheduling hundreds of thousands of fitness classes for its users, all because Kadakia was unafraid of admitting she was headed down a wrong path and willing to turn around to find a better one.

6. Be visible.

Image credit: Richard Branson Twitter

Most entrepreneurs don’t fit the 9 to 5 mold. They work when they want (albeit, more hours than the traditional employee) and work from wherever they’d like. They understand that creative insights require new environments and experiences.

Sir Richard Branson takes this to the next level by being highly visible, not only within his company but also by making himself available to his customers. He experiences Virgin Airlines firsthand, chatting with his employees and customers to get a better feel for how his company is doing. He is constantly out and about meeting new people and finding new ideas. 

7. Stay true to your company culture.

Image credit: ModCloth Website

Startups allow a handful of people the opportunity to create a one-of-a-kind culture. ModCloth founder Susan Gregg Koger started her online retail business at 17 and built her company without any professional experience in the retail world. This led to more creative power stemming from a “scrappy” mentality, a disregard for the direction other large retailers were taking, and, most importantly, a steadfast dedication to a social shopping experience for customers. Rookie status, in essence, helped her team think outside the box.

Years later, with a successful company under her belt, Gregg Koger encourages her team to continue channeling this rookie mentality for innovative customer engagement and company development. She sticks to the culture that consistently drives creativity instead of following in the footsteps of other successful retailers.

11 Things Ultra-Productive People Do Differently

When it comes to productivity, we all face the same challenge—there are only 24 hours in a day.

Yet some people seem to have twice the time; they have an uncanny ability to get things done. Even when juggling multiple projects, they reach their goals without fail.

“Time is really the only capital that any human being has, and the only thing he can’t afford to lose." –Thomas Edison

We all want to get more out of life. There's arguably no better way to accomplish this than by finding ways to do more with the precious time you've been given.

It feels incredible when you leave the office after an ultra-productive day. It's a workplace high that's hard to beat.

With the right approach, you can make this happen every day.

You don’t need to work longer or push yourself harder—you just need to work smarter.

Related: 12 Things Successful People Never Reveal About Themselves at Work

Ultra-productive people know this. As they move through their days they rely on productivity hacks that make them far more efficient. They squeeze every drop out of every hour without expending any extra effort.

The best thing about these hacks is they're easy to implement. So easy that you can begin using them today.

Give them a read, give them a whirl, and watch your productivity soar.

1. They Never Touch Things Twice

Productive people never put anything in a holding pattern, because touching things twice is a huge time-waster. Don’t save an email or a phone call to deal with later. As soon as something gets your attention you should act on it, delegate it or delete it.

2. They Get Ready for Tomorrow Before They Leave the Office

Productive people end each day by preparing for the next. This practice accomplishes two things: it helps you solidify what you’ve accomplished today, and it ensures you’ll have a productive tomorrow. It only takes a few minutes and it’s a great way to end your workday.

“For every minute spent organizing, an hour is earned." –Benjamin Franklin

3. They Eat Frogs

“Eating a frog” is the best antidote for procrastination, and ultra-productive people start each morning with this tasty treat. In other words, they do the least appetizing, most dreaded item on their to-do list before they do anything else. After that, they’re freed up to tackle the stuff that excites and inspires them.

4. They Fight The Tyranny Of The Urgent

The tyranny of the urgent refers to the tendency of little things that have to be done right now to get in the way of what really matters. This creates a huge problem as urgent actions often have little impact.

If you succumb to the tyranny of the urgent, you can find yourself going days, or even weeks, without touching the important stuff. Productive people are good at spotting when putting out fires is getting in the way of their performance, and they’re willing to ignore or delegate the things that get in the way of real forward momentum.

“Time is what we want most, but what we use worst." –William Penn

5. They Stick to the Schedule During Meetings

Meetings are the biggest time waster there is. Ultra-productive people know that a meeting will drag on forever if they let it, so they inform everyone at the onset that they’ll stick to the intended schedule. This sets a limit that motivates everyone to be more focused and efficient.

“The bad news is time flies. The good news is you’re the pilot." –Michael Altshuler

6. They Say No

No is a powerful word that ultra-productive people are not afraid to wield. When it’s time to say no, they avoid phrases such as I don’t think I can or I’m not certain. Saying no to a new commitment honors your existing commitments and gives you the opportunity to successfully fulfill them.

Research conducted at the University of California in San Francisco shows that the more difficulty that you have saying no, the more likely you are to experience stress, burnout, and even depression. Learn to use no, and it will lift your mood, as well as your productivity.

7. They Only Check E-mail At Designated Times

Ultra-productive people don’t allow e-mail to be a constant interruption. In addition to checking e-mail on a schedule, they take advantage of features that prioritize messages by sender. They set alerts for their most important vendors and their best customers, and they save the rest until they reach a stopping point. Some people even set up an autoresponder that lets senders know when they’ll be checking their e-mail again.

Related: 10 Truths We Forget Too Easily

8. They Don’t Multitask

Ultra-productive people know that multitasking is a real productivity killer. Research conducted at Stanford University confirms that multitasking is less productive than doing a single thing at a time. The researchers found that people who are regularly bombarded with several streams of electronic information cannot pay attention, recall information or switch from one job to another as well as those who complete one task at a time.

But what if some people have a special gift for multitasking? The Stanford researchers compared groups of people based on their tendency to multitask and their belief that it helps their performance. They found that heavy multitaskers—those who multitask a lot and feel that it boosts their performance—were actually worse at multitasking than those who like to do a single thing at a time. The frequent multitaskers performed worse because they had more trouble organizing their thoughts and filtering out irrelevant information, and they were slower at switching from one task to another. Ouch.

Multitasking reduces your efficiency and performance because your brain can only focus on one thing at a time. When you try to do two things at once, your brain lacks the capacity to perform both tasks successfully.

9. They Go off The Grid

Don’t be afraid to go off grid when you need to. Give one trusted person a number to call in case of emergency, and let that person be your filter. Everything has to go through them, and anything they don’t clear has to wait. This strategy is a bulletproof way to complete high-priority projects.

“One man gets only a week’s value out of a year while another man gets a full year’s value out of a week." –Charles Richards

10. They Delegate

Ultra-productive people accept the fact that they’re not the only smart, talented person in their organization. They trust people to do their jobs so that they can focus on their own.

11. They Put Technology to Work for Them

Technology catches a lot of flak for being a distraction, but it can also help you focus. Ultra-productive people put technology to work for them. Beyond setting up filters in their e-mail accounts so that messages are sorted and prioritized as they come in, they use apps like IFTTT, which sets up contingencies on your smart phone and alerts you when something important happens. This way, when your stock hits a certain price or you have an email from your best customer, you’ll know it. There’s no need to be constantly checking your phone for status updates.

Bringing It All Together

We’re all searching for ways to be more efficient and productive. I hope these strategies help you to find that extra edge.

07 Relationship-Building Strategies for Your Business

Successful businesses don't just communicate with prospects and customers for special sales. Today, making your company indispensable is a vital key to marketing success. It's a terrific way to add value, enhance your brand and position against your competition. Here are seven relationship-building strategies that will help you transform your company into a valuable resource:

1. Communicate frequently. How often do you reach out to customers? Do the bulk of your communications focus on product offers and sales? For best results, it's important to communicate frequently and vary the types of messages you send. Instead of a constant barrage of promotions, sprinkle in helpful newsletters or softer-sell messages. The exact frequency you choose will depend on your industry and even seasonality, but for many types of businesses, it's possible to combine e-mail, direct mail, phone contact and face-to-face communication to keep prospects moving through your sales cycle without burning out on your message.

2. Offer customer rewards. Customer loyalty or reward programs work well for many types of businesses, from retail to cruise and travel. The most effective programs offer graduated rewards, so the more customers spend, the more they earn. This rewards your best, most profitable clients or customers and cuts down on low-value price switchers-customers who switch from program to program to get entry-level rewards. Whenever possible, offer in-kind rewards that remind your customers of your company and its products or services.

3. Hold special events. The company-sponsored golf outing is back. With the renewed interest in retaining and up-selling current customers, company-sponsored special events are returning to the forefront. Any event that allows you and your staff to interact with your best customers is a good bet, whether it's a springtime golf outing, a summertime pool party or an early fall barbecue. Just choose the venue most appropriate for your unique customers and business.

4. Build two-way communication. When it comes to customer relations, "listening" can be every bit as important as "telling." Use every tool and opportunity to create interaction, including asking for feedback through your Web site and e-newsletters, sending customer surveys (online or offline) and providing online message boards or blogs. Customers who know they're "heard" instantly feel a rapport and a relationship with your company.

5. Enhance your customer service. Do you have a dedicated staff or channel for resolving customer problems quickly and effectively? How about online customer assistance? One of the best ways to add value and stand out from the competition is to have superior customer service. Customers often make choices between parity products and services based on the perceived "customer experience." This is what they can expect to receive in the way of support from your company after a sale is closed. Top-flight customer service on all sales will help you build repeat business, create positive word-of-mouth and increase sales from new customers as a result.

6. Launch multicultural programs. It may be time to add a multilingual component to your marketing program. For example, you might offer a Spanish-language translation of your Web site or use ethnic print and broadcast media to reach niche markets. Ethnic audiences will appreciate marketing communications in their own languages. Bilingual customer service will also go a long way toward helping your company build relationships with minority groups.

7. Visit the trenches. For many entrepreneurs, particularly those selling products and services to other businesses, it's important to go beyond standard sales calls and off-the-shelf marketing tools in order to build relationships with top customers or clients. When was the last time you spent hours, or even a full day, with a customer-not your sales staff, but you, the head of your company? There's no better way to really understand the challenges your customers face and the ways you can help meet them than to occasionally get out in the trenches. Try it. You'll find it can be a real eye-opener and a great way to cement lasting relationships.

08 Ways Emotionally Intelligent People Deal With Toxic People

Life is stressful enough for most of us. Allowing a toxic individual to ravage your immediate environment can cause havoc in your mental well-being, which can lead to physical challenges.

A bad state of mind not only affects your physical well-being but makes it difficult for you to respond calmly under pressure. Ninety percent of top performers are skilled at managing their emotions, so your ability to perform effectively can be affected if you do not adopt strategies that will allow you to deal with toxic people.

1. Successful People Establish Boundaries

There is a fine line between being friendly and allowing somebody to lead you down a path that jeopardizes your ability to remain effective. Successful people understand this and do not allow the toxic among them to take charge, but rather choose to set effective boundaries.

2. No One Limits Their Joy

How much do the words of those around you affect your state of mind? Successful people have mastered the ability to ensure that the negative remarks of others do not affect their strong sense of accomplishment. Toxic people like to break you down with rude, hurtful comments, and gain satisfaction from watching you fall apart.

Learn to react less to the opinions of others, especially those you know do not have your well-being at heart.

3. They Have Mastered the Art of Rising Above

I learned this from John Rampton from Due when he was on stage at TC Disrupt. “By mastering the act of rising above, successful people are able to remain rational and calm in the presence of the irrational and chaotic. They master rising above the rest, no matter what the circumstance,” Rampton said.

4. They Are Solution Focused

Do you spend more time focused on the negative person and how they affect your life than on achieving your goals? If so, then you have a problem. Instead of focusing on the negative, focus on your goals.

5. They Understand the Importance of Support

Reach out to your mentors, chances are, they have experienced what you are going through. There is a good chance that co-workers, team members, even family and friends have useful tips to help you get by. The emotionally intelligent understand how to tap into their resources to get through the challenges of working with toxic people.

6. They Are Aware

Self-awareness is important, because it involves knowing what it takes to push your buttons in order to prevent it from happening. Lack of emotional control is a great way to empower the toxic people in your life.

7. Forget-Me-Nots

Being forgiving comes with being emotionally intelligent. It allows you to remain unburdened by the mistakes of others and to have peace of mind. But being forgiving does not mean forgetting whom you can and cannot trust. It just means you stop wasting mental energy on those you cannot trust.

8. They Store Their Energy for Better Opportunities

As I have mentioned several times, the toxic thrive on chaos, and will do anything to have the ability to take you down to their level. Learning to understand your limits will help you to stay away from dangerous situations. Choose your battles wisely, and conserve your energy for bigger and better things.

Final Thoughts

Those we look up to as being the "bigger person" or as being able to conduct themselves in the most challenging of situations do not have a magic solution in their back pockets, but they have worked hard to become emotionally intelligent people. What are some of the challenges you have experienced with toxic people?

10 Bad Habits That Make You Look Really Unprofessional

Picture this. I was at a networking event last winter. It was cold outside, but quite warm in the room. Most of us balanced winter coats and heavy bags. I made small talk with a few other people, when a new guy approached the group.

"Damn, you guys are carrying a ton of sh*t," he said. "You know, you can check your sh*t for free at the coat check."

Boom! Instant credibility suck. I get that he was trying to help us, but none of us paid him any mind after that introduction.

It's not really just that the guy swore; most of us are pretty immune to that these days. It's that three of his first 22 words were curses (assuming you count "damn" as a curse). That's just lazy, as if he couldn't be bothered to come up with better descriptions of all the things we were carrying. Instead, he went with the barnyard default, and that made him seem unserious and unprofessional.

(Just off the top of my head, since I'm sure some of you are about to ask what he could have called the things we carried instead: coats, bags, laptops, stuff, purses, briefcases, jackets, coats, gear, kit, pouch, totes, baggage, portage, luggage, junk, tunics-heck, call my a bag a man-purse, if you want to at least score a C-minus joke).

The truth is, nobody's perfect. We're all prone to semi-conscious verbal foul-ups that make us look totally unprofessional. That's why we all need a reminder now and then. Here are 10 examples of similar things to avoid.

1. Lazy profanity

OK, this one really is at the top of the list. Again, it's not the profanity itself (although that often doesn't help). It's the laziness. If someone constantly uses the F-word as an all-purpose adjective, it makes you wonder whether they're equally uncreative and slothful in everything they do.

2. Lateness

I must admit this is a tendency I've had to work hard to combat in my own life. The phrase "Murphy Standard Time" would not be met with blank stares by some of my friends and family. Yet I've learned that being on time is a matter of respect. Show up when you say you will, and you send a message that you're professional enough to care.

3. Leering

We're all human. We're mammals. We notice alluring members of whatever gender we're biologically predisposed to be attracted to. Yet, that same humanity also means we should have the self-control to keep the "up-and-down look" under control, so to speak. Eyes up here, my friend, or you'll look like a creepy amateur.

4. Pollyannaishness

I've always been a bit bothered by the fact that the word "Pollyannaish" suggests the concept of having too much unrealistic optimism. Check out the 1913 book if you don't understand why. Still, when, after a disaster, a colleague or a vendor insists that things are absolutely fine-while simple common-sense tells you they're not-it undermines their professionalism.

5. Flightiness

To be flighty is to be fickle and irresponsible. Tell someone you'll be at a certain place, or that you'll accomplish a certain thing-and then never do it? Sorry, you're flighty.

6. Disorganization

(Anyone who gets more than 1,000 emails a day probably falls into this category.) As most of us who run businesses understand, clients and customers expect you to reply quickly. They want you to be able to talk about their situations (seemingly) off-the-cuff. If you aren't in control of your own situation, they'll wonder how you can possibly be in control of theirs.

7. Inarticulateness

This one is like, so like, obvious-and yet a lot of people like-they don't really, like, get it. And that just, like, totally makes them seem like-well, not really professional, because they, like, can't even get to the point of what they want to say and like, make it clear and stuff.

'Nuff said. I'd actually throw bad grammar into this category as well-although with the caveat that we've all known some very smart, professional people whose language simply betrayed their lack of formal education, or whose first tongue wasn't ours. (Seriously, if this column were written in French or Spanish, we'd all have a good laugh at my grammar.)

8. Secrecy

Sure, we all have private lives, but most of the time our businesses don't truly involve them. If you're hiding important information from employees or clients, you're not doing much for your reputation as a leader, and you're probably making them wonder whether they can trust you.

9. Overpromising

A really brilliant salesperson once told me her art of selling was about "making the maximum promise you can, consistent with your ability to deliver." Entrepreneurs often push the envelope on this, but the key is to make sure you're confident you will eventually be able to make good on your promises.

10. Cheating and lying

These two are obvious. As President George W. Bush once tried to say, "Fool me once, shame on you. Fool me twice, shame on me."