I believe that visualizing the future causes the future to happen.
As a management consultant I have been taking business executives through the process of visualizing the future of their companies for twenty-five years now, and I have seen enough evidence to feel secure in concluding that visualizing future events causes those events to occur.
One day, however, I was taken by surprise when I heard one of my clients telling a group of people that while he owed the success of his company to the process of visualization, he nevertheless didn’t know why it works. “I don’t know why it works,” he said, “I just know that it works.”
With that in mind, I want to list three reasons why I think visualizing the future works, and then discuss the implications that can have for each of us personally.
*Reason One: The Laws of The Universe Aren’t So Inalterable*
Most of us were educated to believe that the laws of the universe are hardwired, meaning that they work under all conditions. The “Speed of Light” is an example of a hardwired law. The law says that light travels at a constant never changing 186,000 miles per second. Come to find out, however,that may not be true. According to physicist Paul Davies the speed of light has been slowing down. Hence, the speed of light which was considered inalterable becomes alterable.
Many scientists who study things like the speed of light have concluded that most everything, if not everything, in the universe, our lives included, are capable of being altered. Nothing is fixed and set ‘in stone’, not even the forces of the universe.
*Visualization and a Changing Universe *
It’s my belief that one who believes in the continuous alterability of the universe will, more than likely, possess an attitude that their life is also continuously changing. A person with this orientation will also be more likely to actively use visualization to personally direct this continuous change, and be successful at doing it, because they will be engaged in an activity that approximates the condition of how the universe and all things within it, including ourselves, works.
*Reason Two: How Things Are Measured Determine What They Become*
In one of the most interesting experiments ever devised, it was found that how you set up an experiment determines what your findings will be. For example, in physics when you set up an experiment to find sub-atomic particles that’s what you find, particles. But when you change the experiment to find waves, instead of finding particles, you find waves. What then is sub-atomic matter, particles or waves? Evidently, it depends on what you want matter to be or to become.
Hence, without any definite form, matter’s core characteristic becomes infinitely flexible. And, because you and I are made up of matter, we in turn are infinitely flexible. Thus, a reasonable conclusion suggests that you and I become what we want to become.
*Visualization and A Flexible Universe*
The question then becomes after everything is said and done, what do you believe the universe is made of at its very core? Is it something hard and fixed like stone or something flexible like elastic? If your answer is elastic, then you are going to have a great adventure with the process of visualizing the future. What makes visualization so fascinating is that at heart it is a creative process. In this instance you are able to create a different you or a new you. That’s what happened to me. I arrived at a certain point in my life where I wasn’t satisfied with what I was, so I visualized a different me. It came true. A flexible universe is a great
universe. It’s creativity, all the way up and down, all of the time.
*Reason Three: “Spooky” Things Happen*
None other than the greatest mind of the 20th century, Albert Einstein,conducted an experiment, the results of which caused Einstein to entitle his findings, “Spooky Movement at a Distance.” Basically, what Einstein and his colleagues did was separate two particles, and by manipulating the movement of one particle, they automatically caused the other particle to move in unison. The spookiness came when it was revealed that there was absolutely no connection between the two particles, and there was no time lapse between the movement of the first particle and the simultaneous movement of the second particle.
Einstein concluded that it appears that events which occur in one place, can influence the behavior of independent events in another place. This happens without any influence on the part of the first event passing through space to influence the second event. Bizarrely, no time elapses between the events, and, even weirder, this occurs without regard to distance. Now that’s incredible, but, nevertheless, true.
The implications of these experiments for you and me are staggering. Einstein proved that without the benefit of space, time, or distance, someone somewhere can do something and it can seamlessly impact your and my behavior. Spooky!
*Visualization and Spookiness*
I’ll admit this “Einstein Experiment” has been the hardest of the three principles for me to get my head around. I’m a cause and effect kind of guy. The idea that someone can do something in China and it can have simultaneous effects on me seems counter intuitive to me. But, when it comes to visualizing my future, I feel very comfortable working in this kind of spooky world. For example, when I write my visualization on paper, and I am very specific with what I say, I have observed that my words seem to go out and shape the environment to conform to my visualization. It is as though I am walking into a future I have already seen in my mind and have committed to writing. This kind of experience has a spiritual quality to it for me. At those times, it feels like everything is one.
*Criticism*
The biggest problem with what I have just said is that I leave out too many steps in connecting the workings of the universe with the act of visualizing one’s future. For example, concluding that because the speed of light is changing and then suggesting this too is the reason why my life is subject to change is a bit of a stretch. One might argue, with reason, that I have left too many steps out.
My response to this criticism is, perhaps. Nevertheless, I think enough new research is starting to emerge, which speaks positively enough to the connection between what we do and how the universe works, that I think for now I will stick with what I deem worthy in this article. An example of this kind of research is found in an article written by physicist Vlatko Verdral. In it Verdral describes how the alterability, flexibility, and spookiness of the universe have a direct connection and impact on you and me. (Scientific American, “Living in A Quantum World”, June 11, 2011, pp. 38-43.)
*Conclusion*
My position is that if people believe they are part of a process that causes them to be alterable, flexible and just a little bit spooky, they become prime candidates to be extraordinarily successful in visualizing their future and thus causing that future to happen.
I am convinced that visualizing the future causes the future to happen. I have been using a visualization process for decades to help business leaders project the future of their companies. I have also used visualization to chart my own future. I would recommend that if you have not used this technique, that you learn more about it, and then experiment with it to create your own future.
Saturday, July 23, 2011
Sunday, April 17, 2011
In Starting a Business: Part 3 Conclusion: “Lessons Learned” From Creating My Own Businesses, Lesson 3
One day I was in my Sunday school class and the instructor said that our worldly accomplishments don’t mean anything compared to our eternal life with God. Now, I had heard that all my life, and I never questioned the truth of the statement until that very moment. For some incomprehensible reason, I blurted out, “I’m not going to discount what I have earned and created over the years.” A silence came over the class. They were shocked at what I said, even I was shocked.
Usually when an embarrassing moment like that happens, you try to explain what you meant, which usually results in being able to save face. For example I could imagine myself saying, “Now don’t get me wrong, God is the most important, and I would never compare my accomplishments to his love. All I’m saying is...”
But, at the time, and maybe for the first time in my life, I stood my ground and stuck with what I had said. I made no excuses. I didn’t look around insecurely to see if the members of the class were frowning at me. I just sat back. I didn’t even care when l was challenged. I simply stuck with what I had said. In the name of common sense, why?
I simply couldn’t bring myself to discount what I had worked so hard at and sacrificed so much for by putting anything above it. I loved what I had created.
Now this is an interesting position to be in. In business we remind each other that we shouldn’t fall in love with what we have created. The reason is that eventually you have to make changes to keep a business going. If you fall in love with the product you are less likely to be objective enough to make changes. Eventually, you may even have to sell the company you created to realize its full value. In other words, in business we keep reminding ourselves that “it’s just business, it’s not personal.”
Yes, that’s right, but it does not make it easy. Which means, business is not easy. And what makes it so hard is that it is always changing. Of all that I have been involved in, there is nothing that changes as much as a successful business. For example, price points are constantly adjusting, competitors require regular repositioning , technology always requires new investment, new websites get old fast, wages pressures have to be measured and accommodated, and of course profit pressures must be met. Have you ever noticed how business people tend to consume so conspicuously when times are good? That’s because they know better than anyone else, that the good times do not keep rolling on. They party while they can. They are the ultimate existentialists. The present is what matters, because the future will be different, no matter what.
What’s the lesson here? Things change. Get used to it and adapt. The more you try to keep things in place, the more they will build up pressure and force you to change. I don’t know if this realization has kept me young, but for sure it has kept me warily humble.
Usually when an embarrassing moment like that happens, you try to explain what you meant, which usually results in being able to save face. For example I could imagine myself saying, “Now don’t get me wrong, God is the most important, and I would never compare my accomplishments to his love. All I’m saying is...”
But, at the time, and maybe for the first time in my life, I stood my ground and stuck with what I had said. I made no excuses. I didn’t look around insecurely to see if the members of the class were frowning at me. I just sat back. I didn’t even care when l was challenged. I simply stuck with what I had said. In the name of common sense, why?
I simply couldn’t bring myself to discount what I had worked so hard at and sacrificed so much for by putting anything above it. I loved what I had created.
Now this is an interesting position to be in. In business we remind each other that we shouldn’t fall in love with what we have created. The reason is that eventually you have to make changes to keep a business going. If you fall in love with the product you are less likely to be objective enough to make changes. Eventually, you may even have to sell the company you created to realize its full value. In other words, in business we keep reminding ourselves that “it’s just business, it’s not personal.”
Yes, that’s right, but it does not make it easy. Which means, business is not easy. And what makes it so hard is that it is always changing. Of all that I have been involved in, there is nothing that changes as much as a successful business. For example, price points are constantly adjusting, competitors require regular repositioning , technology always requires new investment, new websites get old fast, wages pressures have to be measured and accommodated, and of course profit pressures must be met. Have you ever noticed how business people tend to consume so conspicuously when times are good? That’s because they know better than anyone else, that the good times do not keep rolling on. They party while they can. They are the ultimate existentialists. The present is what matters, because the future will be different, no matter what.
What’s the lesson here? Things change. Get used to it and adapt. The more you try to keep things in place, the more they will build up pressure and force you to change. I don’t know if this realization has kept me young, but for sure it has kept me warily humble.
In Starting a Business: Part 3 “Lessons Learned” From Creating My Own Businesses, Lesson 2
In life I’ve tried easy and I’ve tried hard. Hard is better.
In 1992 I sold my first business and went on a three year sabbatical to South America. When I came back, I had no intention of starting another business. Rather, I felt I had made enough money to kick back and work at a comfortable pace with some company. I did just that, but within a year two things happened. One, the company ran into financial and regulatory difficulty, and, two, being part of a corporate culture was sucking the life out of me.
So, I decided to create another consulting firm. Because this was the second time I had done this, I knew more or less what had to be done to make it succeed. Frankly, it sobered me. It would take an incredible amount of work. For example, if you are going to be a successful management consultant, you have to travel. I calculated that for at least five years I would have to travel about one million miles by air, and be on the road three weeks out of the month.
I concluded that it would be too hard. So I decided that the sacrifice was not worth it, and determined to make a go of it by building a “book of business” locally. It would take two to three years to make locally what I could make in one year on the road. That was OK I thought. I have enough money, and in my spare time, I can volunteer my time to church service.
My life was very easy the first year. I secured two to three contracts, fixed up a home we had purchased, and did some volunteer work. We vacationed in Hawaii and Florida. However, as the year came to an end, an unintended consequence arose. Easy had become tedious.
For me, when something becomes tedious, it turns into boredom, and when I am bored, I am not happy. That’s a weird situation to be in. I have everything I need and want, and yet I’m unhappy? Doesn’t really make sense. I thought about it for a while, and came up with a question that has been one of my better insights. Could it be that the act of working is tied to being happy in life?
It’s a funny question because for most of us happiness is reached when we no longer have to work. But come to find out, that’s not necessarily true. Research shows that working is an ingredient that contributes to human happiness. For example, when they compared millionaires who continue to work with those who retire, those who continue to work, even when they don’t need to, record being much more content than those who don’t.
Not only that, but the harder the work, the better. Who would have thought it: Hard work makes us happy. What does that do to the dream of leisurely living. Not much. It’s probably a myth.
So, what did I do? I chose to go back on the road and work hard. Did my boredom leave and did I feel happier? Yes, even though physically it wore me down, it had the desired effect. I was indeed happier.
As a result of having this experience, I’ve come to an important, if not convenient, truth about myself. If I had to make a choice, I would pick working hard with the risk of being worn down and sick, if it resulted in making me happier; than I would living a leisurely life with no physical stress, with the possibility of not feeling happy. Of course, if I had my way, I’d prefer health and happiness. But often life has its tradeoffs. I realize this and have accepted it for me. Indeed, a valuable lesson!!
To be continued…
In 1992 I sold my first business and went on a three year sabbatical to South America. When I came back, I had no intention of starting another business. Rather, I felt I had made enough money to kick back and work at a comfortable pace with some company. I did just that, but within a year two things happened. One, the company ran into financial and regulatory difficulty, and, two, being part of a corporate culture was sucking the life out of me.
So, I decided to create another consulting firm. Because this was the second time I had done this, I knew more or less what had to be done to make it succeed. Frankly, it sobered me. It would take an incredible amount of work. For example, if you are going to be a successful management consultant, you have to travel. I calculated that for at least five years I would have to travel about one million miles by air, and be on the road three weeks out of the month.
I concluded that it would be too hard. So I decided that the sacrifice was not worth it, and determined to make a go of it by building a “book of business” locally. It would take two to three years to make locally what I could make in one year on the road. That was OK I thought. I have enough money, and in my spare time, I can volunteer my time to church service.
My life was very easy the first year. I secured two to three contracts, fixed up a home we had purchased, and did some volunteer work. We vacationed in Hawaii and Florida. However, as the year came to an end, an unintended consequence arose. Easy had become tedious.
For me, when something becomes tedious, it turns into boredom, and when I am bored, I am not happy. That’s a weird situation to be in. I have everything I need and want, and yet I’m unhappy? Doesn’t really make sense. I thought about it for a while, and came up with a question that has been one of my better insights. Could it be that the act of working is tied to being happy in life?
It’s a funny question because for most of us happiness is reached when we no longer have to work. But come to find out, that’s not necessarily true. Research shows that working is an ingredient that contributes to human happiness. For example, when they compared millionaires who continue to work with those who retire, those who continue to work, even when they don’t need to, record being much more content than those who don’t.
Not only that, but the harder the work, the better. Who would have thought it: Hard work makes us happy. What does that do to the dream of leisurely living. Not much. It’s probably a myth.
So, what did I do? I chose to go back on the road and work hard. Did my boredom leave and did I feel happier? Yes, even though physically it wore me down, it had the desired effect. I was indeed happier.
As a result of having this experience, I’ve come to an important, if not convenient, truth about myself. If I had to make a choice, I would pick working hard with the risk of being worn down and sick, if it resulted in making me happier; than I would living a leisurely life with no physical stress, with the possibility of not feeling happy. Of course, if I had my way, I’d prefer health and happiness. But often life has its tradeoffs. I realize this and have accepted it for me. Indeed, a valuable lesson!!
To be continued…
In Starting a Business: Part 3 - Lessons Learned From Creating My Own Businesses, Lesson 1
Somewhere along the way, I made the decision that I would only write about what I had directly experienced, concluding that was the only thing at the end of the day I felt I really understood. In other words, “I know only what I experience.”
That doesn’t mean I no longer read. I do; in fact, I’ve made a profession out of reading and digesting facts. But, I do realize there is a material difference between reading about something and experiencing it directly. There is no substitute for experiencing events firsthand.
With that, here are three lessons I’ve learned from the firsthand experiences I’ve had from creating and owning businesses.
Lesson 1.
Creating something that has economic value is the closest thing anyone can participate in which results in better understanding how the everyday world works.
In my mind everything in this life has an economic value attached to it, whether that be something tangible like a car or abstract like religion. I did not fully understand this, until I was forced to be involved in each and every step of creating a new business. I realized that if the venture was to survive I had to become aware of the value of every component by understanding its cost and eventual return. As a result, two things happened to me. One, I became much more tuned into measuring and calculating the value of most things I was coming in contact with, personal as well as professional. As this occurred I sensed myself becoming more pragmatic. For me this was good news.
Indeed I have gone through a whole range of phases in my life: idealist, liberal, conservative, zealot, but never would I say pragmatist. But with the step by step creation and overseeing of my own business, a kind of no non-sense quality emerged in me. I more quickly narrowed in on key issues, I used fewer words to get to my point, and I became much more action oriented. I wasted less time on the trivial, and was much less inclined to judge people and events from an ideological point of view. As this has occurred, the relative value of most things, tangible or abstract, began to clarify in my mind.
And two, an unintended consequence of this newly developed pragmatism emerged. The whole process resulted in me becoming far more aware of what the needs of others were, especially their consumer and professional needs. By working to understand the cost and economic return of every component of a business, I was forced to ask a profound question. “Is all this work going to meet a need someone has?” I had never quite thought in those terms before. I was more aware of meeting my own needs than working at understanding and meeting someone else’s. (And, even more sinister, I had spent much of life telling people what their needs should be.) Turning outward and asking people what they needed and wanted was not something I was used to doing. But as I did a remarkable thing happened: my business grew. Experiencing this was like finding the hidden Ark of the Covenant. “So, this is what it’s all about”, I would say to myself. Soon enough my motto became, “find a need, meet it, and don’t go broke doing it.”
From my view this is all good. A mixture of pragmatism and learning how to meet a need has resulted in better understanding how the everyday world works and how I best fit into it.
To be continued…
That doesn’t mean I no longer read. I do; in fact, I’ve made a profession out of reading and digesting facts. But, I do realize there is a material difference between reading about something and experiencing it directly. There is no substitute for experiencing events firsthand.
With that, here are three lessons I’ve learned from the firsthand experiences I’ve had from creating and owning businesses.
Lesson 1.
Creating something that has economic value is the closest thing anyone can participate in which results in better understanding how the everyday world works.
In my mind everything in this life has an economic value attached to it, whether that be something tangible like a car or abstract like religion. I did not fully understand this, until I was forced to be involved in each and every step of creating a new business. I realized that if the venture was to survive I had to become aware of the value of every component by understanding its cost and eventual return. As a result, two things happened to me. One, I became much more tuned into measuring and calculating the value of most things I was coming in contact with, personal as well as professional. As this occurred I sensed myself becoming more pragmatic. For me this was good news.
Indeed I have gone through a whole range of phases in my life: idealist, liberal, conservative, zealot, but never would I say pragmatist. But with the step by step creation and overseeing of my own business, a kind of no non-sense quality emerged in me. I more quickly narrowed in on key issues, I used fewer words to get to my point, and I became much more action oriented. I wasted less time on the trivial, and was much less inclined to judge people and events from an ideological point of view. As this has occurred, the relative value of most things, tangible or abstract, began to clarify in my mind.
And two, an unintended consequence of this newly developed pragmatism emerged. The whole process resulted in me becoming far more aware of what the needs of others were, especially their consumer and professional needs. By working to understand the cost and economic return of every component of a business, I was forced to ask a profound question. “Is all this work going to meet a need someone has?” I had never quite thought in those terms before. I was more aware of meeting my own needs than working at understanding and meeting someone else’s. (And, even more sinister, I had spent much of life telling people what their needs should be.) Turning outward and asking people what they needed and wanted was not something I was used to doing. But as I did a remarkable thing happened: my business grew. Experiencing this was like finding the hidden Ark of the Covenant. “So, this is what it’s all about”, I would say to myself. Soon enough my motto became, “find a need, meet it, and don’t go broke doing it.”
From my view this is all good. A mixture of pragmatism and learning how to meet a need has resulted in better understanding how the everyday world works and how I best fit into it.
To be continued…
Tuesday, January 18, 2011
Starting a Business, Part 2
In Starting a Business: Part 2 - The Darker Side of Creating My Own Businesses.
There are things I don’t like about creating businesses. For one, I don’t like the risk associated with creating a new business. Over the years these different risks have taken a toll on me. For example, it’s not uncommon for people to say to me how great it must be to own your own business. I usually respond, “If you don’t mind losing your mental and physical health, it’s the only way to go.” They laugh, thinking I’m joking. I used to think so too. But, I think it’s exactly what I mean.
Every new business I have ever started, at some point, has unique risks tied to it. Risk is inherent in start-ups. There is no such thing as prudent risk, or smart risk or calculated risk in a start up. There is just risk. Risk in all its bizarre twists and turns. For example, when I started my first management consulting firm, it was pure magic until about two years into it. And, then, one day the CEO of the company that was our largest client informed me that they were thinking about cancelling all of their consulting contracts, including ours. For the first time in my life, I had a full-fledged anxiety attack. Such a move on their part would have dire consequences for our firm. Eventually, however, we weathered that storm, but the effects of the anxiety attack have never entirely left me, emotionally or physically. Over the years there would be new storms. They too would be weathered, but as usual they would continue to leave damage in their wake.
At times it puzzled me as to why I continued to return to an activity that had caused me so much pain. One possible answer was that the rewards so far outweighed the pain, that I willingly accepted the pain for the potential of the gain.
Another possible answer lay deeper in my personal make-up. The truth is, I am a contradiction when it comes to risk, because there is also a pleasurable side of risk for me. At moments, there is an excitement in confronting risk. When you create a new business, you put everything on the line for it. There are no illusions with a start up. There are no default positions. There are no games, rationalizations, or excuses. There is just hard, tough, uncompromising reality staring you down. Only by taking on this kind of business risk have I been able to get to that kind of unvarnished reality, where life is really real. And when I have gone to war with those realities, and survived, I have experienced the freedom of both feeling and being independent.
Being independent is the opposite of being dependent. And, being dependent is one of the demons which has bothered me the most throughout my life.
For example, when I worked in a corporate environment, at times, I would have bouts where I would feel emasculated. For example, there would be these times when I felt intimidated by the power my supervisor had over me. And, the higher I went in the corporate structure the more intimidated I would feel. It was as though I was becoming a dependent child again. I found myself agreeing with those above me merely to get their approval. I was interpreting every facial expression as having the power to determine my future success or failure. I can remember specifically meeting with this one supervisor who wore wing tipped shoes. I had these impressions come over me of him kicking me in the butt with those shoes, just like what might happen when I was a child and was being punished. (Although my parents never kicked me).
I think somewhere during this time I made a life changing decision. I would rather go out on my own and risk failure for the possibility of feeling independent, than stay where I was and potentially lose my self respect. In retrospect I believe this was the best decision I ever made. I have no regrets. Although there are many problems owning a business, at least they are my problems!!! I’m free to solve them my way, and reap the reward or failure for my efforts. There’s nothing or no one between me and the cliff. Whether I go over that cliff is solely up to me. I would have it no other way, because at such moments I am fully engaged in life and as a result fully alive.
So, I’m a mixed bag when it comes to risk: I hate and love it at the same time, but truth be known, I love it far more than I hate it. I’ll accept the risk of failure for the pleasure of being independent any day.
To be continued…
There are things I don’t like about creating businesses. For one, I don’t like the risk associated with creating a new business. Over the years these different risks have taken a toll on me. For example, it’s not uncommon for people to say to me how great it must be to own your own business. I usually respond, “If you don’t mind losing your mental and physical health, it’s the only way to go.” They laugh, thinking I’m joking. I used to think so too. But, I think it’s exactly what I mean.
Every new business I have ever started, at some point, has unique risks tied to it. Risk is inherent in start-ups. There is no such thing as prudent risk, or smart risk or calculated risk in a start up. There is just risk. Risk in all its bizarre twists and turns. For example, when I started my first management consulting firm, it was pure magic until about two years into it. And, then, one day the CEO of the company that was our largest client informed me that they were thinking about cancelling all of their consulting contracts, including ours. For the first time in my life, I had a full-fledged anxiety attack. Such a move on their part would have dire consequences for our firm. Eventually, however, we weathered that storm, but the effects of the anxiety attack have never entirely left me, emotionally or physically. Over the years there would be new storms. They too would be weathered, but as usual they would continue to leave damage in their wake.
At times it puzzled me as to why I continued to return to an activity that had caused me so much pain. One possible answer was that the rewards so far outweighed the pain, that I willingly accepted the pain for the potential of the gain.
Another possible answer lay deeper in my personal make-up. The truth is, I am a contradiction when it comes to risk, because there is also a pleasurable side of risk for me. At moments, there is an excitement in confronting risk. When you create a new business, you put everything on the line for it. There are no illusions with a start up. There are no default positions. There are no games, rationalizations, or excuses. There is just hard, tough, uncompromising reality staring you down. Only by taking on this kind of business risk have I been able to get to that kind of unvarnished reality, where life is really real. And when I have gone to war with those realities, and survived, I have experienced the freedom of both feeling and being independent.
Being independent is the opposite of being dependent. And, being dependent is one of the demons which has bothered me the most throughout my life.
For example, when I worked in a corporate environment, at times, I would have bouts where I would feel emasculated. For example, there would be these times when I felt intimidated by the power my supervisor had over me. And, the higher I went in the corporate structure the more intimidated I would feel. It was as though I was becoming a dependent child again. I found myself agreeing with those above me merely to get their approval. I was interpreting every facial expression as having the power to determine my future success or failure. I can remember specifically meeting with this one supervisor who wore wing tipped shoes. I had these impressions come over me of him kicking me in the butt with those shoes, just like what might happen when I was a child and was being punished. (Although my parents never kicked me).
I think somewhere during this time I made a life changing decision. I would rather go out on my own and risk failure for the possibility of feeling independent, than stay where I was and potentially lose my self respect. In retrospect I believe this was the best decision I ever made. I have no regrets. Although there are many problems owning a business, at least they are my problems!!! I’m free to solve them my way, and reap the reward or failure for my efforts. There’s nothing or no one between me and the cliff. Whether I go over that cliff is solely up to me. I would have it no other way, because at such moments I am fully engaged in life and as a result fully alive.
So, I’m a mixed bag when it comes to risk: I hate and love it at the same time, but truth be known, I love it far more than I hate it. I’ll accept the risk of failure for the pleasure of being independent any day.
To be continued…
Starting a Business, Part 1
In Starting A Business: Part 1 - You Love What You Create
I’ve been involved in stock market investing for over 40 years, creating new businesses for about 25 years and lecturing on economic trends for 20 years. I’ve worked hard at each one and have had success financially with all three. But, if I had to pick just one of the three that has given me the most personal satisfaction, which one would it be and why?
First, I think I would choose “the creation of new businesses” as the most personally satisfying. For me there has been nothing like building something of economic value starting out with little more than an idea. After creating four businesses, I think I understand the process of how business creation happens; nevertheless, it still has the power to evoke big emotions in me. I continue to find myself wondering how in the world is “something created from nothing.” I like the wonderment of it all. To create and to ponder having created makes me feel comfortable with where I’m at in the world. I feel nicely fit into the universe.
I also like the fact that I can make a lot of money from starting a business. I make no excuses for feeling this way. Neither do I believe I have to put the joy of making money into some larger philosophical context in order to justify it. I’m simply happy owning my own business, and creating good solid profits. It’s a truth unto itself, meaning I don’t have to be doing this for some greater cause. There’s enough meaning within the activity of creating a business to make every effort I put out worthwhile.
I also like how I behave as a business owner. With a start up, I am acutely aware of the importance of every little resource I have, consequently I treat everything with care, including people. Over the years, the act of creating new businesses has given me a better sense for what is important and what is not, what’s worth worrying about and not. And at the end of the day, I have learned that there is very little, if anything, to get angry over.
Last, I like the free exchange of goods and services that are at the core of a start up. When I sell something it means a lot to me. The buyer did not have to buy my product at the price I affixed to it. When she does, she’s saying, I need that product and I think the price you have established for it is fair. “Fair,” now that’s a big word. How is fairness established in life? For me it’s hard to beat the way we do it in business. The producer creates something, attaches a value to it, and the consumer freely chooses whether or not to buy it. Both sides are empowered and equal at the moment of negotiation and possible exchange; what can be fairer than that?
To be continued…
I’ve been involved in stock market investing for over 40 years, creating new businesses for about 25 years and lecturing on economic trends for 20 years. I’ve worked hard at each one and have had success financially with all three. But, if I had to pick just one of the three that has given me the most personal satisfaction, which one would it be and why?
First, I think I would choose “the creation of new businesses” as the most personally satisfying. For me there has been nothing like building something of economic value starting out with little more than an idea. After creating four businesses, I think I understand the process of how business creation happens; nevertheless, it still has the power to evoke big emotions in me. I continue to find myself wondering how in the world is “something created from nothing.” I like the wonderment of it all. To create and to ponder having created makes me feel comfortable with where I’m at in the world. I feel nicely fit into the universe.
I also like the fact that I can make a lot of money from starting a business. I make no excuses for feeling this way. Neither do I believe I have to put the joy of making money into some larger philosophical context in order to justify it. I’m simply happy owning my own business, and creating good solid profits. It’s a truth unto itself, meaning I don’t have to be doing this for some greater cause. There’s enough meaning within the activity of creating a business to make every effort I put out worthwhile.
I also like how I behave as a business owner. With a start up, I am acutely aware of the importance of every little resource I have, consequently I treat everything with care, including people. Over the years, the act of creating new businesses has given me a better sense for what is important and what is not, what’s worth worrying about and not. And at the end of the day, I have learned that there is very little, if anything, to get angry over.
Last, I like the free exchange of goods and services that are at the core of a start up. When I sell something it means a lot to me. The buyer did not have to buy my product at the price I affixed to it. When she does, she’s saying, I need that product and I think the price you have established for it is fair. “Fair,” now that’s a big word. How is fairness established in life? For me it’s hard to beat the way we do it in business. The producer creates something, attaches a value to it, and the consumer freely chooses whether or not to buy it. Both sides are empowered and equal at the moment of negotiation and possible exchange; what can be fairer than that?
To be continued…
Tuesday, November 23, 2010
Positioning Yourself for Future Success Pt. 2
The American economy is based on one major premise: its arc is long and chaotic, but it bends ever so slightly upward. From this, I’ve arrived at several working strategies. One, I do not invest on a short term basis in the stock market. Two, I commit to business ventures for the long term. And, three, I don’t take the ups and downs of the economy seriously. These strategies have treated me well over the years and I would recommend them to you for your consideration.
1. Never invest on a short term basis in the stock market.
In my twenties I “played the Market.” That is, I attempted to call the highs and lows of the stock market. I thought that the market existed in order to make a fortune off of killer stocks. It took me over a decade to realize that was one of the most foolish things I had ever thought.
In those years, I took substantial buy/sell risk positions, but had only one good call. By the time I was thirty five, I was about even with the market, with the growth arrow about ready to point downward.
A change was in order. As I reflected on my situation, I decided to go back to when I first started investing as a child. My mother got me into mutual funds (Keystone S4 was the first one) with the advice: “let it ride.” I did (actually I had no choice. I was only ten at the time and the fund was in my mother’s name.). And, over time it paid off.
For well over twenty years now I’ve followed my mother’s advice with one exception. I now invest in many different kinds of mutual funds, on a monthly basis, and rotate the bottom 10% once a year or so. By doing this, I’ve probably averaged an annual rate of growth of about 7%. That’s pretty good considering the problems we’ve encountered with the market since 2000.
2. Commit to business ventures for the long term.
For the first fifteen years of my professional career I was a teacher. I had no thought of doing anything else. But things change. I was about 37 or 38 when I owned my first company. It was a good and bad experience. It was good because we had a great service we were selling: a management consulting process that helped companies do strategic planning. It was bad because I was in a partnership where my partner wanted 60% of the business. As minority partner I quickly found out I had no control over the business, and I was like an employee.
As a result of this situation I fought to get out of the partnership. I did, and as a result was able to control all the variables of the business. That was the best decision I ever made, and the most lucrative one too. If you can control the operations of your business, over time, the odds are you will succeed financially. Nothing has ever made me more money than owning and controlling my own business.
When I violate what I learned from my first business start up, I almost always regret it. For example, since the first venture, I have invested in five different businesses. When my share is well below 50%, I break even or lose. When I am at 50% or above, and I remain in the business over five years, I usually make strong returns.
3. Don’t take the ups and downs of the economy too seriously.
I’ve been through two market crashes and five serious recessions (1972, 1981, 1987, 1991, 2001, 2007 and 2009), and I’m still here, doing pretty well for myself. Why? The only reasons I can think of are: for the most part I have not panicked at points of crisis, and the crises that have occurred were made to appear worse than they really were.
Only once did I take my money out of the stock market because I thought a potential crash (1987) was coming and it would forever hurt me financially. The October 1987 stock market did in fact go into a free fall and the DOW lost 22.61% if its value in one day. It was called Black Monday. I anticipated this fall, took my money out and put it into cash. Good move at the moment, but terrible for the long turn. Shortly afterwards, the market went on one of the greatest bull runs in history. I missed all of that. From that point forward, I promised myself I would not repeat that mistake again. Hence, when the market sags and the economy dips, I continue investing. The results have been positive, and I expect those positive results to continue for as long as America remains with the financial model it has been working under for the last 100 years.
Fear is a basic human characteristic. If you are halfway sane, you have fears. And when you are afraid, your reactions will usually be a little bit exaggerated. Market speculators know this about us and take advantage of it in order to make money off of you and me. For example, when the stock market is correcting, market speculators will exaggerate its seriousness and suggest that you sell your stocks as the market is heading downward. History has taught speculators that when you are fearful about your investments you will magnify its gravity and almost always sell at the bottom of the market. They then will come in and buy your stock at a discounted price. End result? They win, you lose. Why? Eventually, the market always comes back and reaches for new highs!
As far as investments are concerned panicking is counterproductive, and any fears you may have are probably magnified and are being taken advantage of by others. Lesson learned: patient money almost always wins as the market forever gyrates up and down, but over time forever bends slightly upward.
1. Never invest on a short term basis in the stock market.
In my twenties I “played the Market.” That is, I attempted to call the highs and lows of the stock market. I thought that the market existed in order to make a fortune off of killer stocks. It took me over a decade to realize that was one of the most foolish things I had ever thought.
In those years, I took substantial buy/sell risk positions, but had only one good call. By the time I was thirty five, I was about even with the market, with the growth arrow about ready to point downward.
A change was in order. As I reflected on my situation, I decided to go back to when I first started investing as a child. My mother got me into mutual funds (Keystone S4 was the first one) with the advice: “let it ride.” I did (actually I had no choice. I was only ten at the time and the fund was in my mother’s name.). And, over time it paid off.
For well over twenty years now I’ve followed my mother’s advice with one exception. I now invest in many different kinds of mutual funds, on a monthly basis, and rotate the bottom 10% once a year or so. By doing this, I’ve probably averaged an annual rate of growth of about 7%. That’s pretty good considering the problems we’ve encountered with the market since 2000.
2. Commit to business ventures for the long term.
For the first fifteen years of my professional career I was a teacher. I had no thought of doing anything else. But things change. I was about 37 or 38 when I owned my first company. It was a good and bad experience. It was good because we had a great service we were selling: a management consulting process that helped companies do strategic planning. It was bad because I was in a partnership where my partner wanted 60% of the business. As minority partner I quickly found out I had no control over the business, and I was like an employee.
As a result of this situation I fought to get out of the partnership. I did, and as a result was able to control all the variables of the business. That was the best decision I ever made, and the most lucrative one too. If you can control the operations of your business, over time, the odds are you will succeed financially. Nothing has ever made me more money than owning and controlling my own business.
When I violate what I learned from my first business start up, I almost always regret it. For example, since the first venture, I have invested in five different businesses. When my share is well below 50%, I break even or lose. When I am at 50% or above, and I remain in the business over five years, I usually make strong returns.
3. Don’t take the ups and downs of the economy too seriously.
I’ve been through two market crashes and five serious recessions (1972, 1981, 1987, 1991, 2001, 2007 and 2009), and I’m still here, doing pretty well for myself. Why? The only reasons I can think of are: for the most part I have not panicked at points of crisis, and the crises that have occurred were made to appear worse than they really were.
Only once did I take my money out of the stock market because I thought a potential crash (1987) was coming and it would forever hurt me financially. The October 1987 stock market did in fact go into a free fall and the DOW lost 22.61% if its value in one day. It was called Black Monday. I anticipated this fall, took my money out and put it into cash. Good move at the moment, but terrible for the long turn. Shortly afterwards, the market went on one of the greatest bull runs in history. I missed all of that. From that point forward, I promised myself I would not repeat that mistake again. Hence, when the market sags and the economy dips, I continue investing. The results have been positive, and I expect those positive results to continue for as long as America remains with the financial model it has been working under for the last 100 years.
Fear is a basic human characteristic. If you are halfway sane, you have fears. And when you are afraid, your reactions will usually be a little bit exaggerated. Market speculators know this about us and take advantage of it in order to make money off of you and me. For example, when the stock market is correcting, market speculators will exaggerate its seriousness and suggest that you sell your stocks as the market is heading downward. History has taught speculators that when you are fearful about your investments you will magnify its gravity and almost always sell at the bottom of the market. They then will come in and buy your stock at a discounted price. End result? They win, you lose. Why? Eventually, the market always comes back and reaches for new highs!
As far as investments are concerned panicking is counterproductive, and any fears you may have are probably magnified and are being taken advantage of by others. Lesson learned: patient money almost always wins as the market forever gyrates up and down, but over time forever bends slightly upward.
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