Exclusive Compilation Of 4 Laws That Govern Effective & Successful Entrepreneurs
These four rules are worth pasting on the wall next to your desk
Every entrepreneur on their journey sooner or later realises that just like the physical world, even the entre-world pivots around certain rules and laws.
In case you are a newbie, don’t worry! This exclusive compilation of the four laws that govern effective and successful entrepreneurs will make help you sail through smoothly through the pitfalls and intricacies of entrepreneurship. These are not my brainchild nor am I endorsing any of these statutes or the views. Rather I am merely reporting them as per my understanding of them.
The Law Of 33% By Tai Lopez
This law outlines the importance of interacting with others. Usually, most people prefer to stay in their shells. We often spend too little time with people on different levels than we are, be it in context with behaviour, skill, hobbies or knowledge.
Ideally, entrepreneurs should spend 2/3rd of their time with other people who are on different levels. So, the idea is to know how to divide your time and among what kind of people.
The First 33% Of Your Time
You should spend time with people who are on a level lower than you on any grounds.
Such people will not give back much in return. But it will make you feel good by sharing your knowledge and guiding them. You will become a better teacher and that will be beneficial to you in every stratum of life.
The Second 33% Of Your Time
This should be spent with people who are on the same level as you are.
Such people can be your friends, colleagues or business partners. Since you share the same mental persona, you can discuss your business plans or models with them. It will help you gain a new perspective and might open up new details which you had previously overlooked.
The Last 33% Of Your Time
You should spend this with people who are on a higher level from you in every respect; experience, skills and knowledge.
Such people have a wider horizon and better sills honed by years of experience and expertise. They rightfully inspire respect and awe from people around them. Interacting with such people will always help you to gain a hands-on perspective about business.
Such people are called mentors!
Someone who can guide you and get you to the next level is a mentor! Entrepreneurs need a perfect mentor in their life. You should stay away from situations where a blind is leading a blind. The best way to figure out the ideal mentor is to find someone who is at least ten times better than you are.
By this logic, if you want to grow a 50 lakhs turnover company, learn from the one who manages a company with 500 lakhs turnover.
As an entrepreneur, what you can take back from this law is to prioritise your limited time cleverly. Moreover, spend 33% of your time with a mentor. It does not mean you need to drain out your time and money, in the search for one. You can directly download your mentors. Yes, it’s that easy. Books are the best mentors; they have the first-hand experience of pioneers in all fields.
The 10X Rule by Grant Cardone
This rule proclaims 10X-ing both your vision and actions of what is possible in achieving in life. Grant illustrates a roadmap for growth:
4 Degrees of Action
Every person has four different choices in life to deal with every situation.
- Do nothing at all, just while away the time.
- Retreat, avoid taking any actions at all.
- Take ordinary actions, is what 99% of people do to live a comfortable life.
- Take massive, bold steps to create extraordinary things in life.
Yes, it’s the discipline, consistent, persistent massive action which gives people an edge over the others.
How often do you stress your brains to set your goals? New year resolutions are too superficial and too mainstream. You should pen down your goals daily. You should ask yourself your priority on a daily basis and pen down important stuff which matters. Reading your goals loud and clear will simply remind you and fire you up to achieve them.
P.S.: It is good to stretch and push your limits, but your goals should be realistic and within your potential.
Obsession implies super focus. What matters is how you perceive it. Is it a gift or a bane? Being abnormal is the core which makes all the difference.
Obsession is that 1 degree Fahrenheit between 450 and 451 degrees, which does the trick. At 450 degrees nothing happens, it is that small 1 degree of focus which makes the things burn at 451 degrees. All entrepreneurs should have a pinch of obsession which makes that 1degree of difference.
The rule is, you should starve fear! Time is fear’s favourite food. In any situation, the only solution is to get things done on time. The more time you take, the more it creates anxiety. You overthink, you rehearse and prepare. In this process, you end up feeding your fear and make it bigger.
You need to cut short the time out of the equation. Whenever you get a feeling of running away, take a pause and condition yourself to face it. Always remember, your potential exists on the other side of the fear. Reverse your instincts to run towards it and not away from it.
Smokey is a concept which emphasis on being a hybrid. We are familiar with the Hare and tortoise story. Now imagine if there was a creature who would start strong, instead of burning out like the hare, sustained itself slow and steady like the tortoise, in the long run. Such a creature would smoke both, the hare and the tortoise.
Everyone should be like smokey, having the speed of the hare with a pinch of diligence and persistence of the tortoise. Just keep yourself healthy and updated in line with your long-term endorsements.
As an entrepreneur, what you can take back from this law is to become a hybrid smokey to channelise your obsession. Face your fears and achieve pre-defined goals according to your potential, with persistent and consistent massive actions.
The 80/20 Pareto Rule
The rule upholds the notion of productive laziness which implies that 20% of work can help achieve 80% gain in value. It propagates that most of the things in life are not distributed evenly.
This rule was observed back in 19th century, where 80% of the wealth was controlled by 20% of the people. In real world, when applied to business, it implies:
- 80% of the results are a result of 20% inputs
- 80% of the revenue are from 20% customers
- 80% of crashes are from 20% bugs
- 80% of the usage is from 20% features, and so on.
P.S.: The numbers 80 and 20 are not meant to total up to 100. It only implies that 20% of inputs could produce 10% or 50% or 80% or 100% of the work.
The bottom line is that most of the things, be it output, efforts or rewards, are not 1:1, i.e. not evenly distributed. You could always have a possibility of one contributing more than the other.
As an entrepreneur, you should realise the importance of smart play over the donkey routine. The point is to focus on the critical 20% to optimise your bang for the buck, instead of being a jack of all. Figure out activities that generate the most results in your business to give them the attention they deserve.
The Rule Of 10/10/10 By Suzy Welch
It is advised that whenever you get in the dilemma of making an important decision, you should sleep on it. Whenever we are blinded by a situation, we end up losing our perspective by falling into the trap of our short term emotions like lust, greed, anxiety and anger.
The rule propagates that when you are waffled and agonised with a situation, you should think about the decision you are about to take, in three different time frames:
- How would we feel 10 minutes, from now?
- How would we feel 10 months, from now?
- How would you feel 10 years, from now?
Considering different time frames sobers down the spotlight from our short-term emotions to the long-term perspective with a new freshness.
As entrepreneurs, you need not treat your short-term emotions as your enemy. The rule does not leverage long-term view over the short term one; rather it gives more angles to a situation. It provides you with more grounds to overcome the thorny dilemmas you face in your day to day business.
These four rules are worth pasting on the wall next to your desk. If imbibed thoroughly, it would not only streamline your entrepreneurial skills but will also polish your personality.
About the Author: This article is contributed by Nimisha Gupta