Month: April 2020

It’s fair to say that the world as we knew it at the start of 2020 has gone. however there’s another side to the coin – there’s a load of new problems that have come about that are just waiting for entrepreneurs to show up and solve. 

In my February post on “Training Your Property Entrepreneur Brain’ [link at the bottom if you missed it] I shared the basic backbone of a business – that being a CUSTOMER using a MECHANISM of some kind to get a desired end RESULT. In other words start with finding what end result that customer needs. Right now there are many pain induced needs emerging everywhere opening up incredible opportunities for innovative property people and entrepreneurial thinkers.

I sat in on a brilliant one off live presentation that Darren Hardy broadcast this week which focused on a specific set of questions business leaders need to ask themselves (and find answers to) to prepare their comeback. He shared a great Peter Drucker quote which went something like this, 

“Great ideas are birthed through the labour of asking great questions, and finding the answers.”

Discovering answers to questions like the ones I’ll share are what will help you adapt, possibly pivot but either way fuel the next level for your business. 

On April 5th we heard our Monarch addressed the nation in response to the health crisis – a line she used that will I am sure be referenced long into the future was, 

“I hope in the years to come everyone will be able to take pride in how they responded to this challenge.”

I’m confident that those reading this will want to feel pride as it relates to all aspects of their response, particularly from a business and legacy perspective. So to that end, I encourage you to invest some time brainstorming answers to the questions I’ve picked out to share. 

I’ve selected FIVE questions, from the many Darren walked through, that I felt would be most relevant for those with property businesses. On one hand, these questions are designed to guide us through creative thinking and strategic analysis to help minimise potential risks; and on the other hand, they will help discover the incredible opportunities that are emerging in our new reality. 

QUESTION #1

WHAT CAN WE DECONSTRUCT AND REINVENT?

To arrive at your answer, start by thinking along the lines of what result(s) your property business is already good at delivering. Ask yourself, even in a pandemic, what hasn’t changed? ie the population still need housing/accommodation, but your audience may have shifted. Then ask yourself – What would our business look like if we started from scratch right now?

To help fuel your thinking with some inspired reference points I’m including a case study for each question that Darren used to illustrate the point. 

Case study:

He referenced a company called Versare Solutions, a maker of office cubicles and room dividers – they have recently switched to making plexiglass screens for checkout lanes and reception areas after a request from a California pharmacy gave them the idea.

Another great pivot I heard was about an interior designer whose business dried up with no live property projects to work on. She pivoted into the niche of helping people at home spruce up their backdrop for their, now daily, zoom calls. Genius eh!

Even if it’s only to tide things over, where can you take your core areas of expertise in adding value and now meet a new high demand market? Is it the NHS in some way? Is it playing cupid between landlords and new tenant buyers?

QUESTION #2

CAN WE REDEPLOY OUR KEY SKILL SETS?

The skills that you/your company excels at may be a source of growth or new business if applied to a different set of problems.

What are those key skills and where might they be redeployed for essential services or current high-demand markets?

Have a go at listing out what you see as essential services and high demand markets and see where your skills may link in.

Case study:

A Californian computer repair company called iFixit, redeployed its team of IT infrastructure

experts to help hospitals maintain and repair critical equipment like ventilators.

QUESTION #3

WHAT ELSE DO OUR CLIENTS NEED THAT WE CAN HELP THEM WITH?

Darren reminds us that we are not in the “product or service-selling business. We are in the problem-solving business for our target client.”

Ask yourself, what else does my target client want or need that I might not currently offer, but could?

Case study:

A travel blogger polled her reader base to ask what they might be interested in and where she could help – they responded with asking for tips on fashion, beauty, diet and nutrition. She listened and started sharing her tips on those areas and her blog traffic, and ad revenue, has grown as a result. 

QUESTION #4

CAN WE PRE-SELL OR BULK SELL OUR PRODUCT/SERVICE?

This one might be particularly relevant to those in the serviced accommodation space, especially if an injection of cash flow is needed to sustain things.  

Ask yourself – can we pre-sell or bulk sell our accommodation? What kind of incentive can we offer to pre-sell/bulk sell our accommodation to advance cash collection?

Case study:

A paint company had just come off its best quarter in history. Owners invested in scaling up staff, trucks and equipment to meet new demand. Then COVID-19 hit and the company went from high revenue growth to zero, yet expenses remained the same. To bridge the cash flow gap, the company created a promotional campaign offering a 25% discount on future projects with 50% prepayment. The customer wins and the paint company received the cash infusion it needs to sustain business through the isolation period.

QUESTION #5

HOW CAN WE MAKE IT EASIER TO DO BUSINESS WITH US IN THIS NEW REALITY?

Due to this isolation lockdown, the use of technology has taken a major leap forward – you know it yourself, you probably have parents and grandparents on family zoom calls now but likely didn’t a couple of months ago. 🙂

Because we have been forced to adopt digital solutions and virtual interactions it’s opened up an incredible number of ways to reach and engage with new customers.

Darren posed the question another way which may help your thinking, 

“Using digital solutions and virtual interactions, how can we adjust our business model or work practices to radically reduce costs or rapidly scale our market penetration?”

We already know that property agents are doing virtual house tours, what else could be done along these lines?

I hope these questions get you thinking creatively and help to unearth solutions not just for survival, but for growth.

Link here to the post I referenced on training your property entrepreneur brain

Do you have the nagging suspicion that there is something you should be doing, and could be doing proactively, but you’re not quite sure what it is, or you’re hesitating to do it?

Getting laser focused during a crisis can be extremely difficult – you know you have to do something but not always sure what.

Here’s a simple 3 part exercise I got from one of my mentors, a business psychologist coach – it will guide you to a definitive answer to that question above, no matter what kind of business you are in – whether it be property or not, it will help you create a plan out of chaos and increase your probability of success.

This post is not a light bit of reading, its a practical exercise that will put your brain to work; but if you are serious about making progress in amongst the uncertainty and chaos as the best version of you, then it’s a small time investment that will pay off. 

3 PART EXERCISE FOR CRISIS RESPONSE

This is something you can do as a journaling exercise, paper and pen, or on the computer to go through and answer the questions. I did this myself at the end of March and it only took about half an hour, but the clarity will pay dividends. I just reviewed my answers to the questions again just now and it’s satisfying to see how it’s helped me maintain focus. 

The underlying principle is that you need to focus on the ‘one inch at a time’ principle, which can be difficult for the perfectionists amongst us (myself included) but it’s the approach we need to take. It’s all about moving forward in small ways and understanding that day by day the ‘one inch at a time philosophy will really help you out. In other words you don’t have to solve the entire problem or get after the big opportunity all in one day, what you’ve got to do is move forward 1 inch and that’s what this approach enables you to do. 

STEP #1: THE POWER OF NEGATIVE THINKING

[This is counterintuitive but stick with it and follow the steps]

You’re going to allow the negative thought into your mind to help you prepare, use those negative thoughts as a tool. 

-Write a detailed description of your worst case scenario ie the version of your future in which you make all the shortsighted, self sabotage, destructive decisions that are available and tempting you right now

-This is the future in which you are the worst version of yourself and give into your worst tendencies. 

– ACTION – Describe the worst future that might arise from your worst decisions and actions.

NOTE – you have to focus this on where you have control – ie the absolute worst case scenario where you let yourself down

Where you are at with your property business is a crossroads – there are some things you can do to take positive action, there are things you can do that will self sabotage ie bury your head in the sand, spending a lot of time watching TV, distracting yourself when you know you should be getting stuff done etc

1. Focus on results from your action (or lack of) rather than external/luck driven outcomes
2. Explore the cumulative outcomes of small day-to-day self sabotages
3. Think holistically about how self sabotage can affect your career, family, health, relationships, spirituality etc
4. Write it in the present tense, as if it’s a journal entry
5. Use sensory language ie what you might see, hear, feel
6. Be vulnerable -explore the consequences of your worst potential habits
7. Think poetically – the idea is to have a bit of fun painting a dramatic picture

As an example to help kick you off, here are a few snippets  from my own journaling notes having done this exercise:

Worst version of me

It is April 2020 and I’ve let it all slip…

• I drop my morning routine > my physical fitness and health deteriorates- I feel increasingly ‘off’ and I don’t get the jump start to the day
• I don’t plan the day the night before > I get to the desk with no direction and end up flip flopping between decision making and action taking focus which burns time and energy
• I get distracted during work sessions with news, gossip, emails and busy work and end the day feeling nothing meaningful is accomplished

STEP #2: AIMING UP

Now it’s time to go the other way and articulate your personal definition of success.

Imagine if your capacity for execution and follow through on all of your best intentions and ideas magically went to 110%. You did it all, and some. 

What would life look like? What kind of person would you become? Think of the version of you that you’ve always known you have the potential to be.

Journal out the future version you would create for yourself if you were totally in charge and free of any inner second guessing and self sabotage.

1. Same pointers from part 1 apply
2. Be realistic, but be bold – think about what you’ve always wanted to accomplish with property and how there could be a big opportunity in your space soon
3. Focus on your actions and the results that follow ie instead of winning the lottery articulate your winning of a step change property deal 
4. Articulate the transformation that would be required to bring about this future – not just what you’ve accomplished but who would have to become to accomplish it

STEP #3: MAPPING OUT THE INCHES

This is where you list out the individual actions that could take you away from the worst case and closer to the best case. The idea with this final step is to identify the big steps (the big decisions, big projects) and then ultimately drill down into very detailed micro steps ie the “inches”. Focus on the action steps that are your responsibility and within your power to execute on. 

The ultimate goal is to drill down to actions you can take today, and everyday, which move you 1 inch closer to your personal description of your best future vision.

Answer the following questions:

1. What small daily actions will have a powerful cumulative effect?

2. What obstacles will I need to be vigilant of? (ie the pull of netflix)

3. What small set of actions would make each day feel like a huge win, when completed?

4. When experiencing adversity, or just having an ‘off day, what one small action can generate that ONE INCH of momentum in the right direction?

With every day comes a choice – the actions that you take can move you a little bit closer to that best version of yourself and your best future. OR, the actions that you take, or choose not to take, can have you backslide inch at a time in the wrong direction. 

To come out of this crisis in the best way you can, adopt this mindset of moving one inch in the right direction every single day.

In my end of Q1 post I wrote about taking the time to review the previous 90 days and also to carry out a ‘Spring Clean’. Well I did my review the first week of April and this week I completed my spring clean. In emptying my drawers and filing trays I discovered a plastic folder with 5 articles dating from the summer to autumn of 2005 (picture attached). Just for fun here are the headlines of those articles so you can get a sense of what the green but eager 25 year old version of me was reading:

“Building a fortune out of beer money” – about renting property]

“Fifty ways of saying carpe diem and stop carping” – [50 reasons why everyone should become an entrepreneur]

“The buying game” – [a basic guide to buying property]

“How to quit a 9-to-5 life on £400,000” – [about how to retire before the traditional age]

..and last but not least…

“11 Keys to Success & Wealth” – [what it says on the tin]

In 2005 I would have been a little over a year into building a corporate career, and whilst enjoying it, couldn’t help searching for something more entrepreneurial, and at that point the property light bulb had gone off thanks to reading Rich Dad Poor Dad. 

In the mastermind sessions I was hosting this week we were talking about programming the “Reticular Activating System” within our brains – that part of our brains that when consciously programmed to look for what you want, it helps you find what you’re looking for in the sea of information flooding past our senses. 

By evidence of these articles, clearly that’s what I was starting to look for back then, and it hasn’t stopped since. It was a trip down memory lane re-discovering and reading these articles again. It’s incredible to think that everything I was reading back then that felt new, complex yet inspiring and exciting is now part of what I am living today. Whilst my wild ambitions and impatience of 2005 haven’t always materialised as quickly as the 25 year old me may have wanted,  (I’m still very much on the continuous growth journey), I’ve nevertheless become what I started dreaming of 15 years ago- an entrepreneur in property. 

Here are the 11 Keys to Success & Wealth that I got from one of the first property talks I attended, and these points were put together and shared by an American property entrepreneur called Jim Francis. Reading through these I was reminded that they are just as relevant 15 years later, especially given the current environment we’re in. Here’s my paraphrased summary of Jim’s words:

#1: DREAM BIG

Jim referred to the common denominator with all the millionaires that he’d interviewed – they all had big dreams and believed they were worth more than a 9-5 they didn’t overly enjoy. All with the dreams, they were prepared to take some risks by taking some of their hard earned money to try something new ie build a small business or invest in property. 

#2: GET OUT OF YOUR COMFORT ZONE

You must attack your comfort zone and get outside of it. Push yourself to try new things, to to break your limiting beliefs and poor habits. All successful people know that growth happens at the edge of your comfort zone. 

#3: WORK SMART AND NOT HARD

Millionaires tend to work smarter, not harder. It’s not that they don’t work 16 hour days, but they use their time much more effectively. They have a better plan for making money and if they are going to work 16 hour days, the fruit of their labour will be their own, not for someone else. They make their money work for them in property, in their own business and in the stock market. 

#4: THE QUICK AND THE DEAD

One of the major rules of the wealthy is taking action. While you are thinking about this right now, someone else is taking action. Don’t analyse things to death but do your diligence, make sound judgement and take fast action. 

#5: TAKE EMOTIONS OUT OF DECISIONS

Too often people are stopped by FEAR- fear of failure, fear of loss, fear of rejection. Millionaires learn to conquer fear, they simply look at 3 things – 1st, the investment, 2nd the return, 3rd, the probability of success. If those things stack up they go for it…

#6: TOTAL COMMITMENT

Successful people give their all, they work their 40 hour week job and then put in another 20 hours plus to start investing in property or start their small business. Even if you are tired, don’t let it be said that you “missed your dreams because you were watching TV”. Schedule time for success, take action as scheduled and the results will follow. 

#7: MENTORS

..Are worth their weight in gold. Why? Because mentorship and coaching work! You can only learn so much from a book, a self study manual or a video or a website. A coach or mentor can get you on the path to success quickly. 

#8: STUDENT OF SUCCESS

Millionaires never stop learning. They study success habits. They study money, property, business and asset building. They have a thirst for new knowledge and invest a significant amount in training and self development.

#9: BOUNCE WELL

Millionaires have failures. They have lost, but they keep a positive attitude – “I’ll figure it out, I’ll work harder or smarter to get the result, I’ll apply a better plan”. They remember that a flat ball doesn’t bounce, so they have to keep it pumped up. (Great analogy for the current times).

#10: SELECTIVE MEMORY

There are no failures, only learning experiences. ‘If they swing at a baseball they do not remember the 66% of the time they miss, they remember the 34% of the time they hit.’ The problem for most people is that they remember the last time they failed – no wonder they stop swinging the bat. Selective memory is key to success. 

#11: DON’T QUIT

The character of man or woman is not measured in the number of failures, but in the number of times they come back from those failures to attempt to win! Ask Edison – 10,000 plus attempts at making the lightbulb. Do not give up. Success is just a decision and some action away!

I hope these 11 keys resonate and feed your mind as they have done for me. I’d love to hear which one of them is your favourite, shoot a quick reply here. 

In my post last week I wrote about taking time to review Q1, and having done that myself I’ve had the chance to review all the notes I’d taken in my best self journal. These notes are typically nuggets of wisdom from what I’ve read and listened to- distinctions, ah ha’s, quotes and more. 

 

I always enjoy reviewing the notes I’d taken in a previous quarter, and what’s better- if I can share a thought or idea with someone who benefits from it. My wife and kids are generally bombarded with my recounting of what I’ve heard/read (bless them) but hopefully this particular perspective I’ve chosen to share will resonate with some of you reading. 

 

This one comes from a poker analogy Darren Hardy was using to highlight a perspective we can choose to have in regards luck, skill and the compound effect (top book by the way, The Compound Effect). He referred to a professional poker player called Greg Reymer, nicknamed “Fossilman” (for his hobby of collecting fossils). Fossilman’s perspective was summarised along these lines:

 

“You have to be realistic about how much luck is involved in whatever you are doing and after that you kind of ignore it. You then have to ask yourself, what’s the smartest decision that I can make now? And ignore the results in the short term as they are irrelevant”.

 

So how does this translate to day-to-day life?

 

To further unpack the analogy of this poker player’s perspective with different life circumstances, here is my summary of what Darren was sharing. 

 

We are all being dealt new hands of cards, not just the ones we were born with, our family etc, but also being dealt new cards everyday – ie things that happen in our businesses, things that people might say to us that unexpectedly has an emotive effect…it could be any number of things big or small, like the printer not working just when you need to print out an important form. These are all metaphorical ‘hands of cards’ you are being dealt  – and the challenge as Darren puts it is not to get too emotional over what we can’t control it, it just is what it is. The only question is- Now what? – can we draw on our skill and make the most of the hand? If there is nothing we can do on the skill side to change the outcome, well that’s when in the game of poker we’d choose to fold, with no emotion. In other words, accept the fact the printer is not working, right now, there’s no point in getting hysterical and kicking it. 

 

[I’m so conscious that summarising this that there will be certain ‘hands of cards’ dealt to some people in the last few weeks that have been horrendous and I know that these global challenges really test the mindset of “things happen for you not to you”. That’s a very difficult perspective to take at the moment but the unexpected positives and gifts are what we need to look for. The entire world is forging character right now, finding gratitude, becoming more resourceful and helpful.]

 

Back to the takeaways from the poker analogy – no matter the luck, skillful players will increase their odds over time by making better decisions with the cards they are dealt, and that ultimately gives them the upper hand. 

 

Fossilman says, “there is luck and there isn’t – some things will be unlucky and the challenge is to ignore the results in the short term, they are irrelevant, but skill applied over time eliminates the luck. Over time, it’s only skill that matters.”

 

Darren then took this a level deeper, he said it has less to do with skill and everything to do with character, here’s what he meant – because skill needs the long time horizon to overcome any odds it will take the character of discipline and work ethic, and resolve applied consistently over time to ultimately succeed and then sustain that success. ‘It’s the compound effect of that applied skill that guarantees your becoming a winner. 

 

To borrow Hardy’s words, “This should be good news to hear – it means your outcome is not determined by the cards you are dealt, you just need to keep applying the skill of making the right, even small, seemingly insignificant decisions consistently over time and it will compound and overwhelm any odds of bad luck.”

 

“The compound effect guarantees your success no matter your luck or lack of it – the key is consistency and that requires character.”

 

As challenging as this message is, I felt it carries a strong sense of perspective and resolve that may be helpful for some to read right now. 

 

Most successful property investors look at the long term time horizon and enlist time as their ally, and now we are specifically focusing in on the decisions we make in the moment and the character we choose during these challenging times so that we can ignite the compound effect. 

 

What resourceful and solution oriented decisions/actions have you made in the last couple of weeks?