Average Is a Failing Formula

average thinking.

This “addiction to average” can kill the possibility of making your dreams a reality. Consider the following statis- tics: The average worker reads an average of less than one book a year and works an average of 37.5 hours per week. This

same person makes 319 times less money than the top U.S. CEOs, who claim to read more than 60 books a year. Many of these financially successful executives are maligned for the huge sums of money they receive; however, we often fail to appreciate what these people have done to get where they are today. Although it might not always look like they’re working very hard, we often dismiss the fact that they somehow man- aged to attend the right schools, make the right connections, and then did what was necessary to move up the food chain. It all required substantial action on their part. You can resent them if you choose, but that doesn’t change the fact that they are being rewarded for the success they’ve achieved.

After the economy suffered so greatly in 2008, Starbucks founder Howard Schultz began to do what almost every other CEO in America was doing—cutting expenses and getting rid of nonperforming locations. He then did something that most CEOs did not do: he traveled all over the country to meet with Starbucks patrons. Long after the average worker had gone home, billionaire Schultz was visiting his stores and meeting with coffee drinkers to find out how Starbucks could better satisfy customers. Although the media didn’t do much report- ing on this, it was a pretty astounding pattern of events. Here was a guy making his way across the country at 9 PM to get feedback from people buying his products. This is a prime example of embracing a “greater-than-average” thought and action process. This is clearly above and beyond what the marketplace—and any customer—expects. It far exceeded any action considered commonplace for a CEO, and Starbucks’ very solid and strong growth was reflected in stock charts.

This company makes a product that people do not abso- lutely need—especially during troubling economic times. Yet Starbucks continues to sell and grow both its brand and return to investors. This demonstrates that although the quality of the product is clearly important, the individuals who work for an organization are truly the force that will make the most dif- ference. Schultz knew exactly how to approach the situation.

Despite the recession, despite temporary contraction, he still managed to “expand” his organization—not necessarily with more locations but by using his personal energy, resources, and creativity to take massive action, touch each of his stores and many of his patrons, and increase the presence of his brand and its revenues.

Any undertaking that includes accepting average will fail you sooner or later. Anything conducted in standard amounts simply won’t get the job done. The normal levels of action at which most people operate fail to take into account the effects of various forces—such as gravity, age, resistance, timing, and the unexpected. When average actions hit any resistance, competition, loss or lack of interest, negative or challenging market conditions, or all of these, you will find your project tumbling down.

Finally, I want you to take into consideration the con- certed efforts of individuals and groups who actually impede your efforts. Although I am not one to be paranoid or live in fear, I learned the very expensive lesson that these people do exist when I was approached by a group who claimed to want to make me their partner. However, they never intended to bring me in as a partner but instead intended from the outset to steal from me the success I had created in my life. I never planned on this in any of my equations, and it literally robbed me of years of efforts. So take it from me—you cannot plan on everything, and people will try to take from you what they are unable to create themselves.

When I look back and attempt to analyze what happened with these criminals, I realize that I was susceptible to their enticement because I was no longer operating at 10X lev- els. This really opened my eyes to the fact that the moment I started resting on my laurels—and thought that I could “coast a bit”—I made myself a target. It is almost impossible to plan for every situation. In your lifetime, you will experience extraordinary conditions, some of which may be hostile and unpleasant. The best way to plan is to condition your thinking

and your actions to 10X levels. Succeed so big that no one per- son or event or series of missteps can take you down! Average levels of anything will fail you—or at the very least, put you at risk! If, on the other hand, you create more success than you want or need, you’ll always be prepared—even when those who can’t create success for themselves try to steal it from you.

Although I experienced years of success at levels that others deemed to be quite impressive, I knew in my heart that I had quit taking massive action. And sure enough, these guys decided to peel a little of my success away from me—and got away with it. It was quite an expensive and humbling setback— but it really woke me up to the fact that you are never safe to move to normal levels of involvement and activity. Once you do so, I assure you, what you have and what you dreamed of will start to disappear. This holds true for your health, mar- riage, wealth, and spiritual condition. Normal gets you just that—normal.

See what average thoughts and actions will get you— average problems that can quickly become overwhelming problems. What if you live 20 years longer than your savings? Many of us will have to take care of other family members because they didn’t have a 10X mind-set or operate at 10X levels. What about the possibility of long-term health issues or some state of economic emergency that hasn’t been foreseen? What happens to entire classes of people who made average financial plans when faced with extended periods of very dif- ficult economic times or decades of extended unemployment? Average is a failing plan!

Average doesn’t work in any area of life. Anything that you give only average amounts of attention to will start to subside and will eventually cease to exist. Companies, indus- tries, artists, products, and individuals who continue into the future successfully are those who approach every activity with the outlook that average is just not good enough. You need to change your commitment and thinking to be far above any concepts of average. I promise that when you do so, you will

immediately start influencing other areas of your life. Your friends and family will start to change, results will improve, you will find yourself getting luckier, you may experience time flying by, and the actions you are taking will begin to improve your associations with people.

Average is also the reason why most new companies fail. A couple of people get together, have a great idea, write a busi- ness plan, start a company, and base their predictions on every- thing going in their favor. They may even create what they consider to be conservative projections. “Let’s say we show the product to 10 people. We’re bound to sell at least three of them. That’s conservative and realistic.” Someone in the group says, “Let’s cut that in half to be especially safe. Can we still make it?” They decide that even based on the more conser- vative plan, they will be successful. But they didn’t correctly assess how many people they would have to call on just to do the initial 10 presentations. Even the most amazing product on earth might require 100 calls just to get the 10 meetings. Just because you have the next step of the project completely planned out doesn’t mean that the rest of the world is there with you. They’ve committed to their schedules, their prod- ucts, and their projects. Merely getting the opportunity to see the right people will take enormous effort and persistence. Most people are building business plans based on average considerations and ways of thinking, not the massive amounts of action that are necessary to push through.

When new ideas come together, they are influenced by the excitement and enthusiasm of those who generate them. Many negative considerations—such as competition, the economy, market conditions, manufacturing, lending, raising money, the preoccupation of your clients with other projects, and the like—are set at what everyone considers normal or average difficulty. Then, when optimistic projections prove unrealistic, even the most conservative objectives are missed. A key partner might get sick, there might be some significant change in economic conditions, or some global event might

occur that shifts everyone’s attention for the next six months. People involved in the new venture start to lose their enthu- siasm, bickering ensues, and as things become more difficult than was originally considered, failure emerges as a likely pos- sibility. The partners go through more money than anyone projected—and with no income. One of the dreamers begins to have second thoughts and wonders if perhaps he should bail since the players don’t seem mentally, emotionally, or physi- cally prepared to take the massive action necessary to push through market resistance.

Continuing with this scenario, in order to resolve the lack of income problems, members of the group try to borrow or raise money from their friends—where they hit even more resistance. They realize that it will become increasingly diffi- cult for most people to ante up to the “unreasonable” amounts of relentless 10X actions that are necessary to see things through and were missing from the business plan. The part- ners start to believe that their company relies more intensely on raising money than it does on increasing actions because they didn’t correctly estimate the 10X level of thoughts and actions necessary to keep going.

Average assumes—incorrectly, of course—that every- thing operates stably. People optimistically overestimate how well things will go and then underestimate how much energy and effort it will take just to push things through. Anyone who has made it in business will support this concept. You sim- ply cannot train or prepare for normal amounts of gravity or resistance, competition, and market conditions. Don’t think average; think massive. Compare your actions to having to carry a 1,000-pound backpack that you will wear every day into a 40-miles-per-hour wind on a 20-degree upward slope. Prepare for massive, persistent action, and you will win!

Most businesses fail because they are unable to sell their ideas, products, and services at prices high enough to sustain the company and fund its activities. The company isn’t able to collect revenue in quantities great enough because the people

with whom the company has been built—employees, custom- ers, and vendors—also take only average amounts of action.

Average never yields anything more than average and usually much less. Average thinking and actions will only guarantee you misery, uncertainty, and failure. Rid yourself of everything that is average including the advice you get and friends you keep. Sound too tough? Remember that success is your duty, obligation, and responsibility. And since there is no shortage of success, any apparent limitations you are experiencing might simply be the result of thinking and act- ing average. Rid yourself of every concept of average. Study what average people do, and prohibit yourself and your team from considering average as an option. Surround yourself with exceptional thinkers and doers. Let your friends, family, and work associates know that you treat average like a termi- nal disease. Remember, average anything will never get you to an extraordinary life. Look up the word average and see for yourself what it holds for you—typical, ordinary, common. That should be enough to abandon the concept from all your considerations.

CHAPTER

X Goals

setting them—who is then unable to fuel his or her goals with the actions necessary.

Indeed, most people are so apathetic about their goals that they only write them down once a year. As far as I’m con- cerned, nothing worth doing is done only once or twice a year. The things upon which your life depends most are based on the actions you take daily. That is why I make sure to always do two things: (1) I write my goals down every day and (2) I choose objectives that are just out of reach. This opens me up to my full potential, which I use to fuel my action each day. Some people suggest that setting improbable goals might cause a per- son to become disappointed and lose interest. But if your goals are so small that you don’t even need to consider them on a daily basis, then you are going to lose interest!

A good idea is to word your goals as though you’ve already accomplished them. I keep a legal pad next to my bed so that I can record my goals first thing each morning and right before I go to bed at night. I also keep one in my office on which I record new and improved objectives. The follow- ing are examples of some of the goals I am currently working on and how I write them down. Notice that I word them as though I have already achieved each of them (when I have yet to do so).

I own 5,000+ apartments that return over 12 percent positive cash flow.

I am in perfect health and physical condition. My net worth is over $100 million.

My income is over $1 million a month.

I have written and published 12 or more best-selling books.

My marriage is alive and healthy and a positive model for others.

I am more in love with my wife every day. I have two beautiful and healthy children.

I have no debt except that which is paid by others.

I own a beautiful home on the ocean that has no debt.

I own a ranch in Colorado that has incredible views of the mountains and horses and is my ideal scene.

I own companies that I am able to control from a distance and have great people working with me.

My children are friends with the most powerful people on the planet.

I am making a positive difference in my community and politics.

I continue to create unique programs that people want and that improve the quality of others lives.

I have endless energy and interest in my career.

I have a hit TV show that has been on for five seasons. I am one of the largest donors to my church.

Keep in mind that these are some of my goals and are only being used to give you an example of how I word them. Also note that they are things that are yet to be achieved, not things that have been achieved.

Average goal setting cannot and will not fuel massive 10X actions. If you approach an endeavor with average think- ing, you will start to give up the moment you come up against any challenges, resistance, or less than optimal conditions— unless you have some big juicy purpose as your engine. To get through resistance, you must have a big reason to get there. The bigger and more unrealistic your goals are—and the more they’re aligned to your purpose and duty—the more they’ll energize and fuel your actions.

For example, let’s say I want to save $100 million in a bank account. Does anyone need $100 million? No! It is a goal—and the bigger and juicier it is, the more likely you will be motivated to move in that direction and through resis- tance. If you want to add even more energy to your goals,

then make sure they are tied to something even bigger. For instance, someone who wants to earn money but doesn’t have a constructive goal for what to do with it may only produce the money and then just waste it. When you are setting a goal, be sure you are clear about what you want it for, and then tie it to a greater purpose. Think massive and broad when set- ting your goals. Many people make money a target and set a goal to save it but then just destroy the wealth that was cre- ated. Look at how many people just wanted to get rich, did so, and then died broke. So having goals aligned with other goals will start to actually help you. Let’s say one of my goals is to save $100 million and another goal is to use that money to help my church and fund programs to improve conditions for mankind. This is an example of combining goals that will generate the fuel and horsepower to drive my actions and all my goals.

One of the first jobs I ever had was at McDonald’s. I hated it—and not because it was McDonald’s. I hated it because it was not lined up with my goals and purposes. The guy who worked next to me loved his job because it aligned with his goals and purposes. I was the guy making

$7 an hour because I wanted some spending money, and he was the guy making $7 an hour but who wanted to learn the business and open 100 franchises. He didn’t understand why I wasn’t excited, and I didn’t understand why he was. I was fired, and he went on to own franchises. Your goals are there to fuel the actions you will need to take—so make them big and make them often and then tie them in with your other greater purposes.

Ask yourself whether the goals you have set are equal to your potential. Most people will admit that their goals are well below their potential—because most of the world has been convinced, persuaded, and even educated to set small, attain- able, and realistic goals. If you’re a parent, I am sure you have heard yourself suggest this to your children—or maybe you heard it from your own parents or in your work environment.

Never set realistic goals; you can get a realistic life without setting goals for it.

I truly despise the word “realistic” because it is based on what others—who have probably been operating at only the first three degrees of action—have accomplished and believe possible. Realistic thinking is based on what others think is possible—but they are not you and have no way of know- ing your potential and purposes. If you are going to set goals based on what others think, then be sure you do it based on what the giants on this planet think. They will be the first to tell you, “Don’t base your goals on what I have done because you can do even more.” But what if you set goals based on those of the top players in the world? Steve Jobs’s goal, for instance, is to “ding” the universe—to create products that for- ever change our planet. Look at what he has done with Apple and Pixar. If you are going to set goals comparable to those of others, then at the very least pick the giants who have already created massive success.

Many people find themselves on the path they’re on sim- ply because they’re doing what other—average—people have done. Most people go to college not because they want to but because they are told to go. Most people belong to the reli- gion they belong to only because they were brought up that way. Most people speak only the language that their family speaks and never take the time to learn another language. Most of us are influenced by the decisions our parents, teach- ers, and friends have made and then the limitations set by them and for us. I bet that if I asked your five closest associ- ates about their goals, I’d probably be able to identify some of yours as well. You—and your goals—are manipulated by your surroundings.

I will never tell another person what his or her goals should be. However, I would advise that when you do set your goals, take into account that you have been educated with restrictions. Be aware of this so that you don’t underestimate the possibilities. Then take the following into account: (1) You are setting these

for you—not for anyone else. (2) Anything is possible. (3) You have much more potential than you realize. (4) Success is your duty, obligation, and responsibility. (5) There is no shortage of success. (6) Regardless of the size of the goal, it will require work. Once you’ve reviewed these concepts, then sit down and write out your goals. And then be willing to rewrite them every day until they are achieved.

If you underestimate your potential, then it is impossible to set appropriately sized targets. Set the goals too small, and you will not gear up for the massive action necessary. I know the concept of Tfte 10X Rule is NOT for everyone. It is clearly not for anyone who is willing to accept average or mediocrity or for those who prefer to kick back and settle for the left- overs. It is not for those who want to depend on hope and prayer for their success. The 10X Rule is meant for the few people obsessed with creating an exceptional life—and who want to be in charge of that process. The 10X Rule removes the concepts of luck and chance from your business equation and shows you exactly what mind-set you must embrace in order to lock in massive success.

Consider the following scenario: Let’s say that you are setting your financial goals. In 2009, the president of the United States said that people who make $250,000 should be considered rich. Keeping with the current trend, your tax bill will be at least $100,000, leaving you with a remain- ing $150,000. After you make payments on two cars, make a mortgage payment, pay your property taxes, and feed, clothe, and school your kids, you might have $20,000 left. If you save that money for the next 20 years, you’ll end up with around

$400,000—assuming nothing goes wrong. Now take into account the fact that your parents—possibly both your par- ents and your in-laws—didn’t plan for their own retirement properly. They are going to outlive their savings by about 15 years and will depend on you to take care of them. If any of this happens, you will find out quite quickly, and too late,

that you underestimated your financial goals and will spend more effort just trying to manage what you have created than what it took to accumulate it. And remember, in addition to taking care of your parents, you have to fund your own retire- ment years. Additionally, this scenario assumes no increases in the cost of living, no bad news, no emergencies, and no major events. Throw in just a little of what has happened in the last couple of years, and you will see that 90 percent of the population has underestimated the goals and targets nec- essary to fund their lifestyles, much less their life’s purposes. “Small” thinking has and always will be punished in one way or another.

We live on a planet where the primary belief is an under- estimation of everything. The best business schools in the country cite undercapitalization as one of the top reasons for companies’ failures. This is caused by a miscalculation of how much cash a company would burn through before its product caught on—and is yet another example of how average doesn’t cut it.

The biggest regret of my life is not the fact that I haven’t worked my ass off—because I have. It’s that I didn’t set targets 10 times higher than what I originally thought I could accomplish from the very beginning. Why? Because my goals were influenced and limited greatly by the way I was brought up. I am not blaming anyone; it is just a fact. I spent the first 30 years of my business career getting the 10X effort part right and will spend the next 25 years get- ting the 10X goal-setting part right. So I recommend you do the following:

1. Set 10X targets.

2. Align them with your other purposes.

3. Write them down every day—when you wake up and before you go to sleep.

CHAPTER

Date: 2016-04-22; view: 604