Private Victory [dot] com

Why You Should Stop Being Cheap

Just booked a flight to Toronto. It's a small plane, without First Class, but there was an option to spend $50 and get a "preferred seat" with a little more leg room, such as in an exit row.

At 6'3", a few extra inches are worth it to me.

Comfort is worth it. Quality is worth it. Getting it done right the first time is worth it.

In 1998, I had a phone conversation with Derek Sivers. He had just purchased a shopping cart for his new site, CD Baby, for $1500.

I remember thinking, "That's a lot of money for a shopping cart."

In 2008, Derek sold CD Baby for $22,000,000.

It pays to do things right, especially in when it comes to something foundational to your business, such as the way you process money.

And what's more foundational to your business than the way you treat yourself? Nothing.

If you don't take care of yourself, how are you going to take care of anybody else?

Sure, a 90-minute flight, whether it's in a standard seat of a "preferred" one, is a little thing. The service isn't any better. The destination is the same.

But small niceties like this say a lot, even on a subconcious level, about bigger values. And in business, there is nothing more important than valuing confort, quality, and ease-- for yourself, for your customers.

So stop being cheap. Treat yourself right and take care of your customers to give them the best experience possible, even if it costs a little more.

It will pay off.

I'm Back, Bitches!

One week ago, a major income stream for my company was cut off.

Today, everything is back to normal. Almost.

My "money" stuff is back to normal, but during the past few days, I've been implementing a plan to make sure a situation like this never happens again. I still plan to go through with it, so that's going to change a few things.

In short, the plan is:

1. Renew my focus to ship quality goods.
2. Diversity income streams, so losing one product, retail outlet, or distributor is painless.

I am very dedicated to this. Funny how one experience and just a few days can jumpstart such massive action.

 The timeline of everything went down...

Wednesday: Got notice our distribution contract had been terminated. Immediately called The Big Boss and we composed an email in an attempt to find out more details and get back in.

Thursday: Composed a second email, backing up the previous one with documentation that we're a good partner for this company and want to continue to work with them. Felt like crap all day.

Friday: As we hadn't received a response, we started working on a plan to "go around" the problem. New distribution, revised products, formation of a new company, etc. Felt a little better. Got a massage.

Saturday: As it was both the weekend and New Year's Eve, we didn't expect to hear anything back...and didn't. Physically, I was back to normal. Did a yoga class and went for a hike.

Sunday: Still nothing... Hit the gym.

Monday: Checked out what I'd have to do in order to form a new company, which was part of my plan to diversity things. Would have set everything up that day, but, as the government was observing New Year's Day, I wasn't able to.

Tuesday: Formed new company. Filed with state, got new Tax ID, etc.

Wednesday: Got email from distribution company that "After reviewing your response, we have reinstated your account."

As I'm typing this, I'm thinking, "The sitation sounds really simple." Perhaps on one level, but on another, there were a thousand little things that went into it becuase of what I've experienced since starting my business 1995.

Even the similar distribution situation that happend just a week earlier, and my response to it, affected how I handed this one. What would have happened to "the big one" had I not had the smaller deal fall through?

If you're going through a similar experience, my advice is to trust that you'll use the lessons you've learned so far and, even if things don't "work out" for you, know that you're at least developing skills that will be useful in the future. In addition, I think it's important that you force yourself to "step away" from the situation. For me, this usually involves doing something physical, like hitting the gym; something that will help me get out of my head and more into my body.

Overall, this situation was a good experience. Nothing wakes your ass up more than having a part of your income zeroed out. Thanks to this, I'm much more focused for the new year and everybody involved in my business, from the distribution company to the end customers, will benefit.

I am very, very grateful.

It's Just Money, Right?

A couple of weeks ago, after seeing the numbers for November, I was feeling pretty good. We'd been through some good times, some great times, and a few bumps over that last few years, but things were moving along well and everything was consistent. Even "bad" months were still pretty good.

Last week, I got an email from one of our distributors. Apparently, there was a problem regarding the rights to something we were selling through them. We weren't in violation of any laws or doing anything unethical, but there was some contractual stuff with another company, who claimed rights on a similar product, that they didn't feel like disputing.

The bottom line is that the other, larger company won that argument and we lost distribution. One day we were making money, the next day we weren't.

I didn't lose any sleep. Easy come, easy go. There are some things you fight for and other times when your energy is better spent elsewhere.

Yesterday, I got an email from another distributor we deal with notifying me they were terminating our relationship. Still sorting out why. All I can say for sure is that this one was responsible for 10x as much business...

But it's just money, right?

Sure, on one hand. On the other though, it's about people. It's about the well-being of those who work for me and they're counting on me to make decisions and take actions with that in mind.

So what now? That's where I am today.

I've already written about the entrepreneur death spiral and given thoughts on how to deal with it. The "recovery" plan I mentioned is something that I have to go through every time something like this happens...and sometimes multiple times. I've already put that into place.

It's a bitch to get back up when you get kicked in the stomach. That's what I physically feel like right now. I didn't sleep well last night, I'm not hungry, and my mind is so active with processing everything that it feels like I'm going crazy.

It would be extremely easy to blame "big business." That's not fair though.

And I could blame myself for doing these deals, which were ambitious, in the first place. That's not fair either though, because I was doing everything I was supposed to be doing.

The real question... Who is responsible?

It's me. Always.

This isn't over yet. I'm fighting like hell to get it back on track and salvage any aspects of the deal that I can. Beyond that though, I'm keeping in mind that I've experienced a lot worse and there has always been an unexpected silver lining that launched me into the next phase in a big way. 

In addition, I'm looking at the positive aspects of what's happening.  Something like this, if you let it, can be a great wake up call and help to mold you into an even better person, if by nothing more than shining an light on weaknesses that may not have previously been clear and increasing your capacity to deal with problems.

Why You're a Failure (or Not)

Don Lapre died yesterday. He died in custody from an apparent suicide, while awaiting a trial, which was scheduled to begin tomorrow.

I don't know the specifics around Don Lapre's situation or exactly why he was in custody, other than a "fraud" charge, but I've found it disturbing how the public has turned on this guy. Read the comments on his various YouTube videos or news stories covering this situation to see what I'm talking about.

From what I've seen of Don Lapre, I think he has a lot of good advice. You find something that works, like a "tiny classified ad," and you replicate it. 

Was success in this business as easy as he made it look? No.

Is anything as easy as it looks? No. It's the job of professionals to make things look easy though.

Nobody wants to see a concert where the dance moves and musicianship are being worked out. We want it to look easy. Nobody goes to a Cirque du Soleil to see a flawless performance, not some guy falling down or hurting himself.

How do you make things look easy? Work at it.

One of the things you never hear about on television infomercials, whether they be for diet pills, exercise equipment, or "make money" stategies, is that you get back what you put in. Like Newton said, "For every action, there is an equal and opposite reaction."

But that doesn't sell.

I could write a book called, "How to Make $500 on the Internet Working Just 20 Hours" with a hundred ways for people to do just that. "$500 in 20 hours" isn't nearly as sexy as something like, "How to Make $10 Bajillion Online...In Your Underwear!" though and it's unlikely that the "$500 book" would sell as well, even though the title would be a lot more believable for most people.

People want a fantasy. They don't do the work it takes to make big money because it's not as much fun as living in a dream world. And they don't look at themselves when things don't work out, because it's much easier to blame a guy like Don Lapre.

You can tell yourself whatever you want, but the reality is, if you're not making enough money or haven't achieved a goal you want, you're the one who is responsible.

The $10 Million House

Got together with a few business friends of mine to "mastermind" with each other. One owns a $10MM house, so we decided to meet at his place, rather than take a vacation, which is what we've done in the past.

This place isn't just a big ass house; it's a castle. The best way I can describe it is a cross between a Harry Potter ride at Disney World and a casino in Las Vegas. It has secret rooms, a secret floor, a "cave" themed swimming pool, a DJ booth and dance floor, a wine cellar, a theater, waterfalls, a recording studio, huge baths, a steam room, and more. Food was prepared by a private chef and there was a massage therapist on-site.

Is it over-the-top? For some people, it would have been. But for my friend who owns it, it's a pefect match.

This guy got his start as a magician. What better house for a magician that a quirky place that looks like a castle and has bookshelves that turn into doors and lead to secret passages?

But he's single... How can one man possibly take advantage of six bedrooms, multiple kitchen and bar areas, an eight-car garage, a gym, and several outside decks and balconies?

The answer to this question is one of the reasons I feel he was able to make this situation happen. Yes, he's a single guy, but he makes great use of the space.

On the last morning I was there, I woke up to kids running around outside my bedroom, which was near the pool area. As it turns out, these were the kids of the guy who was there to fix the audio system. My friend had invited him to bring them along to have fun in the pool.

This type of hospitality was something I saw over and over again throughout the few days of my meeting. It was very inspiring.

Beyond that, if you're wondering how he was able to get the house, here are a couple of things I noted...

1. TRUST - He trusts things are going to be ok and work out well. Rather than be intimidated by what most would be considered a huge challenge, he looks forward to the adventure of it.

2. GRATITUDE - This guy is a businessman, just like you and me. Just a normal person who wakes up with the same amount of time and ability as the rest of us. He doesn't take what he's been able to accomplish for granted and is very grateful for it.

Regardless of your goals in life, I feel the skills of generosity, trust, and gratitude will help you to make things happen.

NOTE: If you want to see full-size photos, click on the thumbnails above.

Should I Get a Job?

In the last 24 hours, I've had a couple of really good job opportunities come across my desk. Both are high-level positions with companies you've heard of.

And that got me thinking... How much money would it take for me to even consider taking a job?

You never know about a job until you get in it, but knowing what I know now, which is just the "job title" and a basic description for each, I came up with an annual salary of $250,000 for me to even consider it. And even at that salary, I doubt I'd be successful...unless both the job and the people I was working with were cool as hell.

Money is often one of the first things people think about when looking at a new job, but it's actually something that stands between us and what we really want.

For example, "ease" is one of the things I want, and money can help that, but it's not absolutely necessary. I have "ease" now and trying to get more money, such as by taking one of these jobs, wouldn't necessarily mean that my life would be any easier.  In fact, it would likely mean I'd be adding more stress and other things that I don't want, which would have just the opposite effect.

Other things I want in my life...

• Happiness
• Satisfaction
• Contentment without Settling
• Forward Movement
• Accomplishment
• Peace
• Vitality and Invigoration
• Wholeness

Would a job help me to get closer to these things than I already am? Based on several previous experiences I've had working for other people, no.

So there's the answer.

Never Trust a Man Who Hasn't Made Payroll

NOTE: This post is part of Wendy Week, where I talk about my personal experience of outsourcing and the "behind the scenes" stuff involving finding, hiring, motivating, and working with a key person...which in this case is my key person, Wendy.

There's a saying that says, "Never trust a man who hasn't made payroll."

And there's a good reason for it...

When you have somebody working for you, you're responsible for them. That can be a lot of pressure. Imagine hiring somebody, for example, with a wife and kids, who is counting on you to make good on your promise of paying them. It's almost like you're also hiring the wife and kids, because they're counting on you to make good on your promise just as much.

This was a hot issue for me, in part, because Wendy wasn't my the first person  I'd ever hired to work for me...and I'd had problems making payroll in the past.

For example, about ten years ago, I had a couple of instances with another business I had where things got really bad really fast. Because of this, not everybody was paid...and it was a bad feeling.

Then there are the other issues, which you can justify, but can still leave you feeling bad, such as when people flake on you or otherwise don't do what they say they're going to do. How do you handle something like that? Something like where you've got 50% of a project done, which might as well have been zero, so it will do you no good, but the guy who did it is expecting to be paid 50%.

Lots of grey areas when it comes to payroll... Even so, it can be uncomfortable when something doesn't work out as it should.

Because of a few incidents involving workers I'd hired in the past, at the time I met Wendy, most of the people I was hiring were overseas, where I didn't have to see the results of my actions should something go wrong. I didn't actually hire anybody specifcally thinking like that, however. My conscious reasoning in going overseas was simply cost, which made things a little easier for me to swallow.

Beyond that, something else that helped me get used to feeling good about hiring people was the majority of people I hired at the time did work on a per-project basis, with money being delivered after 100% of the work was completed. These workers, as well as the hourly people I had, were paid via an escrow service, which kept both of us honest.

So, needless to say, I had a few things to get over when deciding to make the decision to bring somebody else on. I think this is common and, if you're dealing with it, I suggest starting with an online service like oDesk, which has plenty of great people available and will manage payment and billing for you. Then, should you need somebody locally, you'll have some experience with hiring people that will allow you to (hopefully) be more successful than you would if you started with no experience.

It's important to note that Wendy is not local to me. In fact, she's not even in the same country. She works out of Toronto and I'm in Nashville. The fact that we speak the same language, we're only one time zone apart, and just a couple hours away via plane can make a huge difference though when it comes to the feeling the pressure of hiring somebody.

By no means am I saying a worker in the Philippines or India is any less valuable than somebody in the US or Canada. I've hired dozens of people from each country and have had amazing experiences as well as started great friendships because of it.

My point is that somebody closer to home, when you speak the same language and don't have the communication barriers, such as time zone issues, can make what you're doing seem more "real" and put more pressure on you. Plus, you have the fact that workers in the US and Canada, because of our costs of living, will cost you more.

Happy to answer any questions you have regarding sticking points you have around hiring people. Feel free to ask you question below or send me a message via Twitter.

Enthusiasm!

NOTE: This is Day 21 of a 30-day writing challenge. As I'm not in charge of the "prompts" I receive to write about, some of the topics discussed during this challenge may not directly have to do with this blog's topic of entrepreneurship. But I'll try to make them fit... :)
 

"Trust thyself: every heart vibrates to that iron string." - Ralph Waldo Emerson

 

I've been working with musicians professionally since 1995. Can't tell you how many times I've heard something along the lines of, "We need a big crowd to really let loose on stage."

Uhhh... No.

At least not if you're a professional.

Professionals don't wait for outside factors to get excited about something. They're excited regardless of who is in the audience, how many people they're going to reach with their message, or whether or not they're being paid. These things help, of course, as it's nice to get feedback in the form of attention or money, but true professionals do whatever it is they do regardless of either.

If you're in something just for the money, there is probably an easier way to make that happen. Think about it. No reason to work harder than you have to.

One Week to Live

NOTE: This is Day 5 of a 30-day writing challenge. As I'm not in charge of the "prompts" I receive to write about, some of the topics discussed during this challenge may not directly have to do with this blog's topic of entrepreneurship. But I'll try to make them fit... :)
 

"Life wastes itself while we are preparing to live." - Ralph Waldo Emerson

 

Met a guy a few years ago who was making $50,000/year with a part-time online thing, but still didn't think it was a good time to quit his job and go fulltime. I know another dude who has over $500,000 in the bank, because that is what it takes to make him feel safe.

The guy with $500,000 in the bank is so cheap that he rents a small, low-cost apartment in a rough area of town. Last year, he and his girlfriend were robbed at gunpoint while unlocking the front door.

How much safety is $500,000 providing you at that moment?

The "perfect" time will never come to do anything, but either of these people is pretty damn close.

You never know when you're going to die, so why wait to do anything? Until you're dead, you can always make more money, so you might as well spend some of it.

I've set up my life and business around the things I want to do. If I don't like something, such as cleaning my house, I hire it out. If I want something, I got after it, even if it doesn't make sense to anybody else but me.

Example... Unless I'm in the studio recording or on the road, I work from home. I like light. Last month, I hired some guys to cut two holes in my roof and install skylights.

It doesn't make sense when it comes to increasing resell value on my house. It doesn't make sense in that skylights, especially on a flat roof like I have, are known to leak. But it makes sense to me, because I'm happier when I'm working in a space with plenty of natural light.

Skylights, assuming they'll actually leak, can be repaired, so why not? It's not much more hassle than if you only had one week to live and didn't have to deal with the problem at all.

White Trash Wins Lotto

Somebody recently sent me a link to a blog post about a chick who apparently sold her company for over a million dollars, but was complaining about how she didn't have enough money for a downpayment on a house.

How does this happen? After all, most houses are under $1,000,000, so anybody with that kind of money should be able to afford, not just a down payment, but a complete house, right?

The problem is a condition I call "White Trash Wins Lotto." 

The name comes from the high percentage of people who win the lotto, but go bankrupt within four years, because they don't know how to manage money.  It's affects a lot more than just lottery winners though.

"White Trash Wins Lotto" occurs when somebody who isn't able to handle money comes into a lot of it very quickly.  Because this happens so fast, this person isn't able to develop the skills neccessary to effectively manage with his new wealth.  And because of this, soon finds himself in a situation equal to (or worse than) what he was experiencing before coming into the money.

Losing money isn't necessarily a bad thing.  Plenty of people have lost everything and have been able to get it back.  Those people don't suffer from WTWL though.

When you come into a lot of money quickly, especially if it's due to a business you're involved with, it's easy to think that you're smarter than the next guy.  It's also easy to think that since you've done something once, you'll be able to do it again.

The problem is that anybody can make a lot of money sometimes...and most people do it only once.

So how can you prevent White Trash Wins Lotto from happening to you?

1. Decide What "Success" Looks Like...Before You Hit it Big!

2. Be Able to Handle Small Amounts of Money

Remember; anybody can make a lot of money sometimes. You'll have your shot, so be prepared for when it happens.