This past week I was invited to an early morning meeting. As I was making my way up the freeway, traffic came to an abrupt stop at a point where there shouldn’t have been any slowing at all.

Frustration set in as I spent the next 20 minutes crawling, stopping, creeping along, and barely moving. When we finally got to the point of the slowdown, I was a little surprised, but still slightly amused by the ordeal.

Right there in the middle of the road, I observed that a garbage truck had dumped its entire load and the fire department was squirting out a fire that had erupted inside the heap of trash .I know it’s not funny, but the scene did cause me to chuckle a bit.

I’ve seen the same thing multiple times in my career—even in companies that I have created. I have indeed caused fires by picking up other peoples garbage.

You see, if you create an organization and then run around rescuing, picking up everyone’s garbage, and picking up their problems–then in essence you quit being the leader and you begin being the garbage man. (This same thing can happen in your own family or in your personal life.)

This garbage service does no one any good. Indeed, it creates a co-dependency in the organization and it actually robs people of accountability. In the end, you have a very non-productive environment.

I have created businesses and made the mistake of attempting to be kind and supportive of people. Every time my misplaced generosity, actually ended up destroying productivity and fostering an environment where employees are too dependent on me. I make myself a rescue agent rather than a support agent. 

The fact is, everyone needs to take out his or her own garbage. Anytime you begin mixing really awkward chemicals, like that garbage truck, you end up having to call in the fire department to put out the flames. It causes a big yucky, nasty mess. Plus you end up having to clean it up again, after the fact, which ain’t fun. 

Require everyone in the organization to clean up and take care of his or her own garbage while simulations providing support. Overall–don’t become the garbage collector, remain the leader.

I just read a contrary post by a friend and associate and someone I respect greatly. This man, Greg Habstritt recently interviewed Dan Kennedy–one of the world’s most trusted authorities on direct response marketing, and copywriting. Indeed Kennedy is a brilliant individual; however, I strongly disagreed with his position in the interview.

He boldly declared that content is no longer king. Indeed, he said, we already have enough information and the game is now more about:

1. Developing a deeper relationship with the individual.
2. Positioning the product appropriately by presenting existing information properly.

Although I agree with those two points are important—they are ancillary. The relationship and the presentation play a big role, but I completely disagree about the status of content. Content will always be king!

Some five or ten years ago, we went through a phase called the Democratization of Media. We quit relying solely on news anchors and big media agencies for information and content. Instead, we moved toward getting it directly from the source—or the closest individual to the source, including: bloggers, eye witnesses, and individuals that are actually in the trenches reporting real, raw, relevant data. These people aren’t massaging the message, or trying to build a relationship with me, instead they are simply delivering the information.

In fact, sometimes in life there are individuals that I don’t even like (both their personality and their style) but if I recognize that they speak authoritatively and truthfully…then I listen carefully to the content–regardless of how it’s presented. I usually value people who don’t spin the message, more than those who end up positioning it for me. 

This reality trend is not going to stop. In fact, this isn’t a trend. It’s a revolution and it’s going to become deeper and closer still. 

People desire valid, honest information and that is precisely one power of the Internet.

Of course, I agree there’s all sorts of useless fluff and incorrect blather online. Luckily our built-in BS meters are becoming quite adept at quickly sifting through this stuff. Additionally, anyone who writes or presents content that isn’t valid is quickly dismissed and disengaged from the conversation at an ever-increasing rate. At the end of the day, the information we value is truth, honesty, and hybrid thinking.

One can ask, “Do we have all the information we seek in life?” The answer is clearly, no. 

To drive this point home, simply ask anyone suffering from a disease, a challenge, or personal issue if he or she has all the information that they need to triumph over their ordeal. Or consider if someone found a cure for AIDS or cancer. How important would this new content be? Would the positioning really matter? Would a relationship be necessary? The answer is no.

I punctuate this post where I started it…content will always be king.

Eating Our Own Cooking

In our current test business, Curtis and I received a request from a client that wanted to place a large order for high end, specialty products.  We went to the manufacturer of these products and were able to open an account.  However, when it came time to sign the contract with the vendor, it contained language prohibiting our operating a business model that was identical to our business model.  The order we were trying to fill was worth a large sum of money.  And the likelihood of the vendor ever figuring out we were in violation of the contract was minimal.  In our zeal to land this account, Curtis and I conveniently forgot to pay close attention to this clause in the contract.  However, Koral, who is one of my trusted gatekeepers, reminded us that signing the contract would run counter to our values.  As lucrative as this deal would have been to our company, we passed on the order.  It just seemed that if we were going to lose sleep, it would be better to lose it over the loss of revenue rather than the violation of our code of conduct.

In a previous business Curtis and I founded, we did not follow our own guardrails.  We had put a financial guardrail in place stating that we would always keep a $100,000, three-month buffer in place to protect us if the business took a downturn.  We also agreed that if things went south, we would reduce expenses, rather than dip into our reserve, in order to maintain a positive cash flow.

After several years of mind-blowing success, the business did suffer a downturn.  It wasn’t long before we saw ourselves dipping below the $100,000 threshold.  At the time we had a team we felt loyal to, and we did not want to have to cut back.  So we lowered our threshold to $50,000.  In making that decision, we broke our rule and crashed through our guardrail.  But we felt justified in doing so because of our previous success.  Before we knew it, we had crashed through the guardrail again and spent that last $50,000.  At this point, instead of cutting our losses, we decided to create another business plan.  Unfortunately, our team was not a good match for our new venture.  Ultimately, with no cash left, we had to lay off the entire team we had been trying to protect.  We also had to terminate what had been a very productive partnership and part ways.

We would have all been so much better off if we had reduced our expenses and stayed within that first guardrail.  Yes, we would have had to lay off one or two employees or cut back on expenses in some other way.  As painful as that sounds, it would have been so much better than having to kill the whole business.  We could have saved our most valuable employees and avoided a lot of pain and heartache. 

Our blunder led to Curtis and me parting ways for almost four years.  Now we are working together again and building a successful business.  And we’re hoping we will have the good sense not to forget our need to stay within the guardrails we’ve established. 

Summary

As you are traveling toward your beacon in the fog, you will need guardrails to keep you from heading over a cliff or wandering out into the weeds.  For each of your zigs, you should establish a financial number, an allocation of time, a duration of time, and a financial target to control the resources and energy you are going to put into that particular zig.  You then need to create a list of the other guardrails that will keep you out of the weeds.  Finally, remember the need to establish a network of trusted associates who will keep you from heading out of bounds network or drifting toward the edge of a cliff.  These guardrails will grow out of and be aligned with the values you defined in Chapter 3.  They will then have the power to keep you on target as you zigzag toward your beacon in the fog.

I control the finances of my business

I have learned the hard way that every time that I do not keep my finger on the pulse on the finances of my company, it goes into the weeds.  Once, I returned from a vacation in Nepal to find that my partner had obligated us to a bunch of expenses without our having the income to pay for them.  To cover his commitments, he basically sold off our inventory in a fire sale.  He was so proud that he had sold so much product; but he did not bother to look at the bottom line, and we took a huge loss on the items he sold.  He seemed to have forgotten that sales don’t really count for much if they don’t actually make a profit. 

I really do not love doing the finances, but I have learned that no one else is going to manage my money the way I manage it.  I always pay my bills on time, and I always know exactly how much is in my bank account.  I simply do not spend money I do not have, and if I’m not keeping track of my finances I know I could find myself in a position that would force me outside of my guardrails. 

I will not make personal guarantees on things that I have no control over

Years ago, I was hired as a young CEO of a small startup company.  I did not have ownership, but I was eager to impress the owners and show that I was in the game.  The company needed a batch of new computers for the employees.  I thought I was demonstrating my commitment by volunteering to sign for the lease on these new computers.  So, I signed a personal guarantee that obligated me to a three-year lease.  Needless to say, the business collapsed along with the rest of the Internet bubble.  Here I was without a job, and I had to pay $800 each month toward these computers.  I brought them home and lined them up in my basement.  They had absolutely no value to me, other than my kids learned great computer skills.  I did fulfill my obligation, but I vowed never to sign a personal guarantee on something over which I do not have complete control.

I protect my personal network

One of my guardrails is that I will protect my personal network.  I’ve been offered countless opportunities to get involved in businesses that would have been dependent on tapping into my networks of family and close personal friends.  At times, I would have been looking to them for capital.  At other times, I would have been using them as my primary pool to market to.  For me personally, I’m very protective of my family and friends because I know that they will be very hard to replace if a business goes south.  And, as I consider whether to involve them, I examine the situation by asking a simple question, “What’s the worst that could happen?”

I stay focused on my values

I try to always ensure that my business life conforms to my personal beliefs and values.  Obviously, I will not do anything that is illegal or unethical.  For some, that line may be a bit fuzzy, but my guardrail is whether I would ever have to justify or rationalize my actions to my wife or my children (or my mother!). 

Sometimes, my decisions are made by the simple measure of whether an opportunity feels right to me.  Not long ago, I was approached about doing business with an individual who was manufacturing and selling diet products.  The opportunity seemed promising, so I went home and told my wife about it.  Given her experience as a registered nurse, she examined the product and then told me why she felt it was not safe and why she felt this venture wasn’t something I should have my name associated with.  The product was perfectly legal.  But it was not something my wife believed in, so I did not pursue the opportunity.

Out-of-Bounds Worksheet

List the people who will be your out of bounds network:

                _________________________________

                _________________________________

                _________________________________

                _________________________________

                _________________________________

List the out of bounds markers in your life:

                _________________________________

                _________________________________

                _________________________________

                _________________________________

                _________________________________

List four or five things of how you will know when you are out of bounds. Is it a gut feeling, panic, scarcity mindset, etc:

                _________________________________

                _________________________________

                _________________________________

                _________________________________

                _________________________________

List the things that you consider to be completely out of bounds in your life:

                _________________________________

                _________________________________

                _________________________________

                _________________________________

                _________________________________

Identify exactly where you will change your direction on each zig and zag:

                _________________________________

                _________________________________

                _________________________________

Have a direct conversation with each member of your out of bounds network. Make sure they clearly understand what your out of bounds markers are and what their responsibility is to keep you within those bounds.

The following are brief elaborations on the rules I have set for myself—the reasons behind each guardrail.  Again, remember that your circumstances and needs are different from mine, just as each ski slope is different.  The key is that you need to define what guardrails you need in your life.

I will not risk my family’s financial stability

Before I took the plunge into full-time entrepreneurship, my wife and I had paid off our home. This was a huge milestone for us, and it provided us with some sense of security as I undertook pursuits that involved a much higher degree of risk.  I have committed that I will not jeopardize my home because I do not want to take risks with my family’s financial security. 

I keep my teams small

Whether I’ve been working for an organization or running a small business, I have always preferred to keep my teams small.  I know myself well enough to know that this is where I excel.  I have found that if I keep my teams under fifteen employees, then I can know the needs, interests, and desires of each person.  I can get to know what motivates them so I can push the right buttons to keep each person going.  I have run much larger teams, but keeping them small results in the highest output for the amount of input I can give. 

I avoid venture capital to start or grow a business

I have a good friend who had the courage to become an entrepreneur fifteen years ago.  He and his family came close to living on wheat and water so he could create his business.  He maxed out credit cards and used whatever he had to become successful.  And, indeed, he did become successful and profitable.  He and his business partner then decided to grow the company even bigger, and they were able to raise a couple million dollars in venture capital.  They continued to work hard and became even more successful.  They were the rave of all of the business magazines in our area.  They won awards and were highly regarded.  However, bit-by-bit, as financial challenges hit, they sought out more venture capital.  But each time, they also signed away a bit more of their lives; to where the venture capitalists had diluted the ownership of a company they had sacrificed so much to build.  Now my friend is at a point where he has minimal ownership in the company, and yet he is contractually obligated to run it for the venture capitalists.  Of course, the venture capitalists demand that he put in the same amount of work and energy as when he started the company.  After years of hard work, he still never gets to spend the time with his family that he was hoping this business would allow.  He is now middle aged, and he is burned out.  If he would have stayed on his initial course and built his business a little more slowly, he could have zigged and zagged his way to permanent success.  He now either has to start all over or continue to work in a company he no longer controls.  There are times and places for venture capital but not as frequently as people think, and it is not my desired funding method.

In the conclusion of Bootstrap Business, I told a story of a young man named Jonathon. I was deeply touched with his story because he had the support of his wife and was willing to make the sacrifice to become an entrepreneur.

This past week, I was delighted when Jonathon called and asked to come visit me. There’s no way I’m going to turn down a visit from Jonathon because he’s taken the enduring path of entrepreneurship. In deed the last three or four years have been difficult for this man.

I talk about how in the early days; my wife and I lived on potatoes and love. Jonathon had been in that phase too, where his wife had to cut out makeup and their family had reduced the budget dramatically in order to keep the entrepreneurial dream alive.

I was so delighted as I looked at a very weary, very battle haggard, very tired Jonathon. It was very evident as he walked into my office that he had arrived at the first phase of Profitability and was well on the path of a successful venture. He knew it, and I knew it!

Jonathon has turned the corner and is now in the Process Phase where he is developing processes and adding resources. He just wanted a few clarifying pointers.

During our meeting he had made the comment to me, “Rich, I didn’t have any idea that it was this hard.” Then we shared one of those moments that I call an “earning your stripes moments”.

I want to say boldly that it is hard, but that anything in life that is worth having is hard. I still stick to the statement that I know of no better way to control your emotional, your personal, and your financial life and control your destiny, than by becoming an entrepreneur.

Of course I will tell you that figuring out what it takes and figuring out those first few models is hard—even if you have and The Zig Zag Principle or even if you’ve read Bootstrap Business. It takes going into the unknown and it will make you weary, but it is worth it.

And it does become easier.

Well, maybe not easier—but you do acclimate to it, and you will learn to get through the sequences more quickly.

I’m proud of you Jonathon, and I Look forward to seeing incredible thing from you in the future. You’ve earned your stripes.

Now, the rest of you…get with it! Go start something you’re passion about. Maybe even have a couple grand-little failures. Just make sure you follow my advice and fail efficiently. And as you work toward your goal, I’d love to hear about it.

Congratulations Jonathon!

Paying it forward is a beautiful concept that I came to enjoy this holiday season. As the Christmas season rolled around I was kind of in a little bit of a bah-hum-bug mood. I hadn’t really had the Christmas spirit hit me.

One night as I was preparing to wrap up an intense week and start moving into the Christmas week and the celebration mode. I got a nail in my tire. Everyone knows that I love my Audi A6, and to top it off, I had just put new tires on the thing.

So I was a little irritated as I took the car into my local Big O Tire store. Of course, they were extremely backed up. I waited and I waited in line to drop off the car, got a ride back to the office, and then raced through the day of work. When I finally arrived back at the tire place, it was past closing time. However, they were completely delightful and kind to me.

The guy at the cash register looked at me and said, “Mr. Christiansen, I see these are beautiful new tires. I know you didn’t buy those tires here, but I know you are a great customer. I’ve met you before. This is what I’d like to do. I’m not going to charge you for the rotation. So it’s just $20 for the flat.” Then he stopped, considered a moment, and said, “You know what? It’s Christmas! Let me just do that for you. Go and pay it forward.” 

Instantly that kindness softened my heart. Most of the interactions I have with people are the exact opposite. They are usually attempting to collect money, not gift it! 

I of course, instantly decided to pay it forward. I since have paid it forward. I do not want to share the specifics of the interactions, but I will tell you that when the time came to pay it forward, I had an incredibly strong feeling come over me–a great feeling that doing this little act of service for someone else was definitely the right thing to do. I was sure and that the kindness would touch someone else as it had touched me that hectic day in the tire shop as the joy and happiness boiled up in my heart.

Now as the New Year kicks off, I want to challenge everyone out there to pay it forward. There is no joy greater than doing private, random acts of kindness. I took a little risk in “disclosing” the fact that I’ve been paying it forward. But I share my story with a purpose, which is to encourage all of us to carry out more service.

There is no greater joy than doing private acts and paying things forward. This how we get out of the scarcity mode. I can tell you this with confidence! Every time I get into an abundance mindset –I can tell you the acts of kindness actually end up benefiting me.

So at this time, irrespective of your financial situation, be abundant. Do kind acts. Do small things. Bake a plate of cookies and take it to someone. Pay it forward. Although I can’t explain why, I can tell you that those acts will not only bless you personally and give you joy, but they will also bless you in your business ventures. 

Being abundant is one of the biggest magic secrets that there is. Now I am not one of these big subscribers to the method of sitting around, holding hands and chanting “ohm” and expecting things to fall out of the sky. Success also requires a lot of hard work. What I can say with confidence is that sharing abundance is a key part of the equation. 

Go forward this year of 2012 and have wonderful joyful experiences.  Building businesses, experience, and grow.

One of my favorite sayings comes from the climber Adrianne Burgess. The first time I climbed in the Himalayas it was with Adrianne. He often said, “We are spiritual beings on a physical journey, not physical beings on a spiritual journey.”  I really believe that. We have much to accomplish. Be good to the people around you. Go forward. Prosper.

Rich:

I’m so excited to be here today with my first mentor Alan Hall from back in the Netline days. You’ve heard me talk about Alan. Alan is an amazing individual. I’m so grateful to have him in my life. He is indeed an amazing individual and an example of what I hope to be in twenty years.

Alan you are now giving away everything you make! You’re promoting entrepreneurship and helping people’s lives. Will you talk a little bit about your work?

Alan: Well, it’s important for everybody to understand this is about stewardship—we’re stewards of resources. Somehow we accumulate wealth, but then wealth is really for us to give it away. To give to those who are of need. We all get enough to take care of our basic needs and then the rest outta be given away. That’s what we’re all about.

Rich: One of the philosophies that Alan has, is that the best way to take control of your life, and I agree, is to create a business. Not only does it impact yourself, but it impacts many people around you too.

Alan: Oh yeah. We’re looking for people all over the United States who are ready to start a business, and we’re here to support them! Obviously with Rich’s great knowledge, together we have teamed up to help make people successful. So go start a business! America needs you now.

Rich: That’s wonderful advice from a wonderful man. Look for more to come! I’m going to start highlighting Alan in future posts and tweets. Watch for Alan’s example. He’s done it the proper way. There are a lot of individuals that live and “it’s all about me”. But, Alan is the example to me; what I want to become like. Go forward and do good in this world. Please look forward for more to come from Alan.

One of my favorite books of all time is Viktor Frankl’s Man Search for Meaning. Although he covers two or three major concepts in the book, one of the major themes he discusses is that we all collaborate on a conscious or subconscious level.

I’m a Christian. I deeply believe that God has purpose for us in our lives. I think he has a bit of a sense of humor. And I think that oftentimes the alignment of happenings and circumstances in our lives are not just coincidental. I firmly believe that.

Although I’m a Christian, my mentor is an atheist who believes in the power of the universe. I also have dear friends who are Jewish and Hindu. Irrespective of beliefs and views, I think that we can all see that indeed, God, or the Universe, or whatever power we seek from; allows us amazing, unique, and beautiful opportunities.

I had such an event happen to me this weekend. Tenzing Norbu Sherpa is an amazing young man who has come over to the U.S. from Nepal this past year. We’ve been working with him on his college education, and we enjoyed having him join us for Thanksgiving dinner.

As we were down in St. George, Utah this weekend, we took a few minutes for a stop at the visitor center. All of the sudden, in walks my dear friend Roger Reid. Roger is a successful high school and college basketball coach.

For years Roger had been sharing with our family a story about an amazing woman from Hoang Jo, China. He tells about how when he spent time in China he and his family had a tender, wonderful relationship with this young woman. They spent time  discussing both religious freedom and personal freedoms that she was not afforded. In the past Roger had shared how deeply his family longed for this young lady to come to America.

Finally this young woman had come for Thanksgiving with the Reid family. So here we were: old friends with our amazing young international friends enjoying the holiday weekend. And to top it off at that very moment, in walks a woman who had a very profound effect on Tenzing’s life his first year of college. She helped him really live life with hope and optimism and belief.

It was serendipity.

Two minutes in the other direction and all of us would have missed each other. We had a delightful, joyful reunion. We gave hugs, we took pictures, and then we went our separate ways.

As for me and my house, I believe that God is in the details of our lives. I believe the universe does give us what we seek. Indeed as Victor Frankl points out, on a conscious or subconscious level we all collaborate.

It’s important to put positive energy into the universe and expect good things to occur. I think the energy is one part (not the only part) but one part of the equation that allows us to find success in our lives.

I’m so thankful in my life for these joyful, little, serendipitous events.

Here is a common story for entrepreneurs: You’re building your business. You’re zigging, you’re zagging. Then suddenly you’re stopped cold by a lack of financial resources.

But what if you actually have a lot more resources than you think?

Financial Advocate Garrett Gunderson is an expert at helping entrepreneurs and professionals uncover and leverage hidden financial assets.

I’ve asked Garrett to join me on a free teleseminar on November 3, 2011 at 6:00 pm PST, 7:00 pm MST, or 9:00 pm Eastern to expose the most common financial mistakes that stop business owners from progressing and rob their cash flow.

Furthermore, all attendees will receive a free, signed hardcover copy of Garrett’s New York Times bestseller, Killing Sacred Cows: Overcoming the Financial Myths that are Destroying Your Prosperity.

Access the call by dialing 801-656-2240 and insert the following number code: 021334#.

Garrett will reveal practical techniques that he uses to save his average client $11,700 per year in taxes and increase their monthly cash flow by $1,600.

Join the call to learn:

•    The monumental mistake most business owners make that creates stress and headaches and imposes frustrating limitations on your business growth.
•    The “Terrible 3” financial blind spots where entrepreneurs routinely lose cash without even being aware they’re losing it.
•    The 7 specific financial areas you can fine-tune to recover and maximize lost and inefficient dollars.
•    Why Dave Ramsey-style extreme budgeting is misguided and completely unnecessary.
•    How to optimize your current cash flow to be more profitable in the long-term while still enjoying your money immediately.
•    Why increasing production is far superior to decreasing expenses.
•    Why traditional financial advice robs your dreams, makes you lose control of your assets, and costs you hundreds of thousands of dollars over time.
•    How to turn your business wealth into personal wealth.

I want to help you zig zag your way to success. Join Garrett Gunderson and me for a free teleseminar to learn the most common financial mistakes business owners make that impede their progress and rob their cash flow.

All attendees will receive a free hardcover copy of Garrett’s New York Times bestseller, Killing Sacred Cows: Overcoming the Financial Myths that are Destroying Your Prosperity.

Access the call by dialing 801-656-2240 and insert the following number code: 021334#.

Won’t you join us?

November 3, 2011 at 6:00 pm PST, 7:00 pm MST, or 9:00 pm Eastern

What an amazing journey The Zig Zag Principle has been!

I want to so publicly acknowledge and thank all of you that have been involved in this great endeavor. 

There are two types of victory.  There is the private victory and there’s the public victory.  I am so thrilled about the public victory! We hit the bestselling lists!

- We were #3 overall on Amazon the day the book was released. On Amazon we also hit:
- #1 on the Movers and Shakers list
- #1 in Business Management
- #1 in the Motivational category
- #1 in Entrepreneurship
- #1 in Psychology and Counseling
- #1 in the category Life

We are #5 overall on the USA Today list.

And the public victory I am really excited about is that The Zig Zag Principle is the #6 bestselling book in Inc. Magazine. 

These listings stand for great public successes and victories. But the successes that I am the most excited about, is you.  I love the private successes. 

I get to hear the stories from individuals who are wresting control of their life. I love the stories of people take back their life—both emotionally and financially. These are the success stories that I am the most excited about. 

I thank you again so much for your support in The Zig Zag Principle and I hope that you will join me in having a zig zag, joyful, amazing, successful life.  Thanks again so much for supporting me on The Zig Zag Principle. Go forward and have a great prosperous life.

I have developed four rules I follow whenever I create a business.  There are times I violate them, but I do so deliberately.  Keep in mind that these are my rules that fit into my skill set and values.  You will need to look at your own situation and determine the rules that work for you. 

Rule # 1 – Ride a Wave:  I like businesses that are on a wave.  Just like a surfer who gets in front of a wave and rides it to the shore, I want the environment to be right before I get on a wave in my business or my life.  If the wave is big enough, then just being in its vicinity will generate enough power to propel you toward your destination.  But if you catch that wave wrong, life can come crashing down around you.  The key is to get on and off the wave at the right time.  September 12, 2001, would have been a terrible time to start an airline.  This same day would have been the perfect time to start an anti-terrorist airline security business.  Purchasing a row of new condos in 2006, when housing prices were at a point where experts were beginning to see they were unsustainable, would have been a bad move.  Purchasing those same condos after the housing bubble burst and prices were slashed in half would have been the right time to add scale.  You need to assess your environment and pick the right waves to ride.

Rule #2  – Transaction Businesses:  I like businesses that sit in the middle of a transaction.  A well-known example is credit card companies, which make 2-5 percent every time one of us slides our credit card through a reader.  None of us give what we’re paying a thought (and if you think we’re not paying, think again).  Merchants are happy to pass along the fee because the convenience brings more people to their business.  Customers love the convenience of not having to carry cash or write a check, so they willingly pay their annual fee (and high interest rates) as well.  Positioning yourself in the middle of a transaction puts you in a great place to make money.

Rule #3 – Own the Customer:  I like to own the customer.  I don’t like being in a business where I can’t look into the eyeballs of the customer and resolve the issue.  I like to be in the middle of the transaction, but I do not like being sandwiched between brokers.

During the rise in the housing market, I was riding a great wave with a company called Mortgage Saver 101.  We had an awesome web site that generated leads of people looking to obtain mortgages.  The company was riding a wave and was a transactional and a digital business.  The only problem was that we did not sell our leads directly to the banks or the people who were coming to refinance their loans.  We sold our leads to a broker who would then sell them to multiple vendors.  Many times the broker would come back to us and say he did not like some of our leads.  We would ask what he didn’t like and he would simply say, “It wasn’t a quality lead.”  Without being able to talk to the bank or the customer, we were left to guess at what they really wanted.  This left us very vulnerable, giving all of the power to the broker.  If there was a problem, we had no way to solve it.  On the other hand, credit card companies are good examples of being able to own the customer.  The credit card company can communicate directly with the merchant that is selling the product or the customer that has signed up for the credit card.  They own the customer.  They can manage the relationship on both sides of the transaction.

      Rule #4 – I Like Digital Assets:  This is my very personal preference, but I love digital assets.  I really do not like retail.  Why?  Because I stink at retail.  I don’t have enough discipline and I am not patient enough to succeed in retail.  It doesn’t scale as well for me.  I know many other people who have been highly successful in retail, but it is just not my preference.  Once I make a website or an application, I have made it once and as many people as want to come will fit into that store.  That’s the primary reason I like digital assets. 

We launched the book The Zig Zag Principle and within a day it hit #1 in every applicable category on Amazon. And then we hit #3 on Amazon’s Bestseller List. What fun this is seeing the results of the last several months of hard work.

I appreciate the positive comments and reviews from everyone. I’m enjoying this fun ride. And now it’s time to celebrate!

Please join us at our launch party this weekend. We’re going to celebrate The Zig Zag Principle with a party and a set of fun workshops designed for entrepreneurs, aspiring entrepreneurs, and anyone else who is interested in business and goal setting.

If you have tickets, please make sure you are registered for the event. We have incredible content to share, amazing food to devour, and a whole lot of celebrating to do.

If you’d like to attend, please contact our office today. Someone from back East purchased a large number of books and donated some of his launch event tickets, and we’d love to make sure they get used. Please contact us at 1-801-375-7900. First come, first serve.

THE ZIG ZAG PRINCIPLE LAUNCH PARTY
- Workshops, Speakers, Fun & Games, and Networking.

- Learn how other kids, teens, and stay-at-home moms have zigzagged to build businesses.

- Lunch is provided.
   
Saturday, October 15th
SALT LAKE AREA

For more info, to register, or for tickets, please click or call: 1-801-375-7900

Now that you’ve started bringing in some cash and adding resources, your organization is going to need more structure and discipline.  As you add more flesh to the bones of your infrastructure, you’ll need to work on making consistent progression.  This will require that you build on what you have learned so far as you have been driving to profitability.  In some cases, those will be lessons you haven’t even realized you’ve learned.

Building processes for your organization is vital to your short-term and long-term viability.  It’s a step that often gets left out as you head toward your beacon in the fog, but I’ve been convinced of its importance since I was a little kid mowing lawns.  After I had acquired a few lawn mowers and convinced my brothers and friends to mow lawns for me, I had to teach them the processes that had made me successful in the first place.  Here are the steps I took each and every time I mowed a customer’s lawn:

1. Present yourself well. I would tuck in my shirt and wipe the sweat and dirt off my hands and face before knocking on the customer’s door with a big smile on my face and saying, “Hello, I am here to mow your lawn today.  It will take me about an hour and a half. Is now an okay time?”
2. Clear the lawn. Before mowing a lawn, I looked it over carefully and removed all the balls and junk.  I picked up any dog mess, trash or anything else that may be on the lawn.
3. Trim the lawn. I used the trimmer to trim around the entire edge of the lawn before I began mowing.
4. Check the oil in the lawn mower
5. Check the gas in the lawn mower and make sure the tank is full.  I only put gas in the lawn mower while it was on the sidewalk so that I didn’t kill any grass if I spilled.
6. I went to the center of the lawn and picked a point straight across the lawn.  Then I shot for a straight line.  Everyone likes nice straight lines better than random tire marks across their lawns.
7. I followed the wheel patterns through the entire lawn to keep all of the lines straight.  If the lines got off, I corrected them.
8. I emptied the grass bag before it got full so that clumps of grass would not spill out on the lawn.
9. After mowing, I cleaned up the lawn and yard.  I raked any grass or debris that was left on the lawn and blew or sweep the sidewalks off.  Everyone likes their yard to look neat and clean after the grass is mowed.
10. I respectfully invoiced the customer.  I wiped the sweat off my face and the dirt off my hands and knocked on the customer’s door.  I then handed them the invoice for mowing the lawn and put a piece of candy or a package of seeds with it as I thanked them for the opportunity of mowing their lawn.

This process example may seem rather elementary, but I had to mow a lot of lawns before I learned that it took a lot less time and the lawn looked much neater if I trimmed the edges before I mowed.  I also learned that when I was having other people mow lawns for me, they all wanted to do it their own way.  But I knew that my customers had hired me to mow their lawns because they knew they would have straight lines and they would like the way their lawn looked after it was mowed.  They also loved that I gave them a packet of seeds or a piece of candy as my signature when I finished.  So, I had to document the processes and teach these things to my employees so they would know what my customers expected. 

My wife worked for Kentucky Fried Chicken while she was a teenager.  They have a list posted to the wall above the biscuit machine detailing the exact steps for making their delicious, fluffy biscuits as well as other lists detailing each step in making their chicken and every other menu item.  This keeps the consistency and quality that is expected each time a customer goes to eat at any KFC.

I used to love to eat at a regional fast-food restaurant that sells delicious chicken and rice bowls.  But one time when I went there, the dish I was served did not taste the same.  I commented to the person at the counter, “Something tastes really weird in my chicken.”  He said, “Oh, yeah, our normal supplier was out of the chicken we normally use, so we had to use different chicken today.”  I thought this was just a fluke, so I went back the following week.  This time the chicken tasted much spicier than usual, and it was even worse than the previous week.  I mentioned it to the guy at the front again and he said, “Yes, we had to try an even different supplier this week.”  I went back a few more times, but each time the chicken was different.  Not surprisingly, this franchise went out of business not long after, and now I have to drive thirty miles to get the chicken and rice that I love.  Whatever the size or complexity of your business, processes matter!

In zag number 2, you have to document the processes that led to your initial success.  You need to put these into bite-sized processes that other people can follow.  That is why I instructed my employees to trim the grass before they mowed the lawn and to put the gas into the mower while it was on cement so as to not kill the grass.  I had made all these mistakes and had learned from them, so I institutionalized what I had learned.

As you document your processes, remember to learn from the mistakes you made driving to profitability.  Documenting what not to do is as important as documenting what to do.  You want to have something in place that makes people think twice about making the same mistakes, and it will help if you have already proven what doesn’t work.