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I believe that there are an abundance of opportunities and that many challenges are overestimated. Just watch weather reports at night. They generally predict more rain, more storm and more snow than actually happens because they are afraid of being wrong. Challenges might seem daunting, but there's a lot of opportunities out there if you're willing to break a few rules.
Let’s look at some simple financial examples:
- Investment advice is generally overally conservative. Everyone predicted a recession in 2023 yet we experienced economic growth.
- Instead of playing it safe with retirement plans, why not consider larger investments?
- We generally underestimate the flexibility of spending in retirement and so spend less.
- The stock market is not a risky casino game. Even a conservative portfolio can bring in 5-10% annual returns.
How about relationships? Do you know that humans need eight hugs per day for their well-being? We’re social beings, so even if we work from home, that doesn’t have to exclude informal social interaction or formal meetings, which can simply be booked in a few days a week rather than full-time.
Speaking of work, while committees get a bad rap, collaboration and teamwork should be embraced. Surgery teams, emergency services, and tragedy response teams have all proven that solutions require diverse, expert and coordinated resources to be successful. Let’s work on how to apply the same to the success we’re striving to achieve.
Failure is a stepping stone to success.
Thomas Edison knew what he was talking about. Failure is part of the journey to ultimate success, and we sometimes fail to recognize its value in the process.
Take Risks
Did you know we're twice as likely to avoid losses than pursue gains? It's like holding onto stocks with gains but ditching the ones with losses despite the taxes advantages of the later. Sports teams consistently take fewer three-point shots, steal fewer bases, and attempt fewer two-point conversions than the odds would dictate. Yet we could take more risks and learn from our mistakes.
Embrace the Data and Adaptability
We frequently fail to accept the information related to making a decision. In general, we accept the status quo and are reluctant to explore new information or alternatives. We also fail to consider what data we need and how to analyze to make decisions.
Take the pandemic, for instance. The years 2019, 2020, and 2021 were a whirlwind of ups and downs, showing us just how adaptable we can be. Supply chain changes in response to rapid demand fluctuations are another example of embracing the unexpected. A key process in understanding opportunities is to analyze, test, measure, evaluate and examine alternatives.
Learn from the Fear
Fear often holds us back, preventing us from exploring new information or alternatives. Why do we become more afraid of failure as we age? Kids, on the other hand, are fearless. I am always impressed with kids who won’t stop riding after they learn to ride a bicycle while parents learn to run again chasing after them.
In the business world, this fear can manifest as a reluctance to take risks. However, calculated risks can lead to innovation and breakthroughs.
There are several tools to increase success and reduce challenges:
Goals and Needs: The simplest technique is to understand the needs and goals. For example, are you willing to endure short-term losses to develop long-term gains? This isn't just a financial question; it's a life philosophy. Similarly, how much are you willing to invest in aspects like quality, customer service, and personal development? These investments might not show immediate returns, but they can pave the way for long-term success.
Beware Of and Minimize Bias: Our decisions are often clouded by biases – intentional, random, or even hidden. The familiar refrain of "We've always done it that way!" can stifle innovation. To mitigate bias, we need to be aware of our beliefs and experiences influencing our choices. It's about embracing diversity of thought and being open to perspectives that challenge the status quo.
No Pain, No Gain: In general, I recommend more consideration of the process of problem-solving. How good is our information and what are the consequences of mistakes? In most cases, we can afford more risk than we think, especially when it comes to pushing boundaries and trying new things. This is not a call to be reckless but an encouragement to assess risks critically.
Openness Breeds Success: Organizations need to be open to measurement and feedback. Sharing financials, operations reports, and sales reports isn't just about openness; it's about creating a culture of trust and collaboration. This extends beyond the corporate world – in personal relationships, too. Collaboration, outside resources, and consideration of new processes can provide dramatic new perspectives and strengthen foundations.
Improve Effectiveness. Enhance your effectiveness by not just meeting but surpassing your internal goals, all while keeping a keen eye on those external and financial targets. If you’re heard of the 80-20 rule that states 80% of your sales are likely coming from a 20% of your products or services, you know that’s a game-changer.
Remember that your business is only as sturdy as its weakest link. Strengthening each aspect is key. Fantastic ideas and top-notch products won't shine if your pricing, marketing, forecasting, or customer service is in a slump.
Ask yourself: What makes your company and its offerings stand out? Can you articulate that distinction, and more importantly, does it resonate with your audience?
Think Outside the Box. In a world that's becoming more complex and dynamic, thinking outside the box is an essential. The internet, sharing platforms, demographic shifts, new technologies are all tools for success.
Consider the impact of sports analysis, Amazon, or crowdfunding in creating new markets and opportunities. Who would've predicted the surge in online education or the gig economy a decade ago?
The Road Ahead: It’s interesting watching emerging industries like A.I. and electric cars in considering success and failure. Every day there seems to be a story about emerging success or a bump in the road. I suggest they are more bumps in the road which may affect who succeeds but not the ultimate growth of these industries.
As business owners, it’s critical to remember that success often involves embracing failures, challenging biases, taking calculated risks, fostering transparency, and thinking creatively.