Boiled down, this means:

Results: Define your desired Results first

Purpose: Understand exactly why you want those results

Action: Take repeated action to achieve those results.

The principle is that you should first understand in detail WHAT you want to achieve. What are you desired results? Be very specific about the RESULTS you want to achieve.

You then want to write down all the reasons WHY you need to achieve this. This brings in emotion and forces you to really consider in depth what you’re about to undertake.

Finally, you write down the specific actions of HOW you going to go about achieving what you want to achieve. Let me clarify, this is NOT a To-Do list. It’s far more action-oriented. It’s writing down the precise steps you need to take.

The problem with most ‘to-do’ lists is that they are too open and do not tell you exactly how to take the next step forward. Actions need to be specific and defined so that you know exactly what to do next. This avoids procrastination. Procrastination is the average person’s biggest enemy.

When you combine the emotional leverage of RESULTS with PURPOSE you have a really powerful force driving you to finish and deliver that particular project.

Why is this important you ask?

Well, the great majority of people (98%+) do not really know what they want. As a consequence, they never get anything useful and certainly never get what they want.

Simply put, this is loser thinking.

Winners always know exactly what they want and more importantly, they know exactly WHY they want it and with a little thought HOW they plan on achieving it. Therefore their focus and energy can be directed on taking action to move forward and achieve what they want.

This is such a simple formula, but believe me it is seldom used.

Let’s move to the next step in our framework.

When I constructed the series of five processes that are at the core to our investment framework, I based it on the thinking of Results then Purpose then Action.

What I ended up with is a robust toolkit that can be used to prompt your thinking in each of the areas from ‘Assessing an Investment’ through ‘Defining’, ‘Evaluating’ and ‘Actioning’.’

To promote free thought and brainstorming of further ideas I’ve defined, each of these core processes as a series of keywords and thoughts.

First is a series of questions to ask yourself about the investment. This is followed by a series of keywords to prompt your thinking about the Results aspect of the investment. Then, another series of keywords to prompt your thinking about the Purpose aspect of the investment. Finally as you come to Actioning your ideas, there are a series of keywords to prompt your thinking on How to action your thinking.

Combined, this is quite a powerful series of questions and words. This framework is designed to cover a broad range of scenarios. Not each word may have meaning for your specific investment.

That’s OK, just move to the next word.

I’ve designed this tool as a thought starter and provoker and not to be prescriptive. Every investment and type of investment has its own nuances and complexities.

If you are reading this, then you already are knowledgeable and understand the importance of gaining further knowledge in order to become a better investor.

I use this tool all the time.

What I normally do is sit down at a large table. I place a pad in front of me and the list and read through each word and write my thoughts about how that word or idea impacts the specific investment that I’m considering.

Sometimes I don’t get a lot of information written down, but most times I fill up pages with my notes. So I use the list to prompt my thinking.

Sometimes it works great for making sure I have considered all aspects of the investment. And it certainly helps make sure that I’m not going into an investment blind or blinded by emotion.

This alone, has saved me many, many times.

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Getting New Ideas

Since having ideas and recognising opportunities is so crucial to your business.  You need to do everything possible to heighten your awareness in this area.  You also need to be able to use your knowledge of your customers and their needs, your industry and the new advances in your industry to come up with ideas for products and services for your business.  For example, the internet is filled with ideas. Yet, how many do you think you will remember once you’ve closed down your browser?

Being exposed to a new idea is one thing, but what you do with it once you have it is just as important as getting it in the first place.

Studies on retention show that you remember:

  •             10% of what you read,
  •             22% of what you hear,
  •             37% of what you see,
  •             56% of what you see and hear, and up to
  •             86% of what you see, hear and do.

So an idea that is heard but not acted on is only half as likely to be retained as an idea that is actually put into practice. With that concept in mind then, it is important to understand that if the information presented in this book is to be of any real value to you, it must not only be read, it must be applied. That is to say, it must be experienced, or acted on. And that means it’s going to take some effort on your part.

In their book, The Knowing-Doing Gap, authors, Jeffrey Pheffer and Robert L. Sutton mention that every year there are 1,700 new business books published, $60 billion spent on training, $43 billion spent on consultants, and our universities turn out 80,000 graduates with MBA’s. Yet, most businesses continue to operate day in and day out in much the same ways as they have always done.

Again, and this theme will keep coming up because it is so important, knowledge without action is no better than no knowledge at all. Just knowing isn’t enough. You’ve got to do something with what you to know.

The ideas presented in this blog work. They’re not theory. They’re not speculation on what “should” work. And they’re not philosophical musings. These ideas, concepts and techniques are currently in use by business owners across the country in one form or another. They’re being proven in actual field use day in and day out.

They work for others, and they can work for you.  You are going to have to take the time to study them, understand them, and make the necessary modifications to tailor them to your own personal and business style and operation. And then finally, you’re going to have to apply them in your business.

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Guess what’s coming?

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The real role of Government

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Do the Rich Really Under Pay Taxes?

Saw this on a Sovereign Digest email and loved it.  It really sums up the misconceptions of what different segments of the people think about taxation.

Can You Really Bowl for Free? 

New research this past week from the Pew Research Center. Survey says … most Americans think the wealthy – defined as households earning more than $1 million a year – pay too little in taxes … despite the fact that while they comprise just 0.3% of all taxpayers, they pay 20% of all taxes.

I am not one of the households Pew calls wealthy. Still, I am sympathetic to those who are constantly under attack for supposedly not paying their fair share when it’s really an issue of government not doing more to address mindless spending. For those who think the wealthy are coddled and that tax cuts are designed to hurt the poor, I give you this little tale to put it all into perspective:

Every Tuesday, five buddies gather at the local bowling alley for their weekly bowling night. They pay their bill – $100 a month – on the last Tuesday. Because their job status spans everything from day-laborer to accountant to the owner of a highly successful small business, they’ve decided to allocate their costs based on U.S. federal income tax liabilities for each class of earners, as tracked by the Congressional Budget Office.

The first two bowlers, the poorest in the group, pay nothing.

The third bowler pays $4.45.

The fourth is responsible for $12.30.

The fifth bowler is on the hook for $83.25 – but he’s the chap who owns the successful small business, so he’s comfortable paying his otherwise outsized portion.

One night, the owner of the bowling alley – also a long-time friend of the group – tells his chums that, because they’re such good customers, he’s giving them a price break. From now on, the monthly fee is just $80.

Over beers, the buddies debate the savings of $4 per bowler and conclude that they can’t just subtract that from what everyone owes because the first two bowlers would effectively be paid to bowl, and that seems preposterous. The alley owner suggests the group reduce each of the paying bowler’s cost according to the same taxation principles they were using … the poorest bowler receives the biggest reduction; the richest bowler the smallest reduction.

The first two still bowl for free.

The third now pays $2.67 a month – saving $1.78 (a 40% price cut).

The fourth pays $9.23 a month – saving $3.08 (a 25% price cut).

And the fifth saw his cost drop to $68.55 – a savings of $14.70 (an 18% price cut).

As the quintet left the bowling alley that night, Bowler #4, the accountant, stopped his friends to insist angrily that Bowler #5 “received nearly $15. I got just $3. That’s not fair that he gets almost five times the benefit I do!”

Bowler #3 did a quick calculation and concurred: “He got nearly seven times what I got. Why should the wealthy get all the breaks?”

Bowlers #1 and #2 piped up to decry a system that gave them none of the savings … even though they’re still bowling for free anyway. “We got nothing,” they screamed in unison. “The rich always screw the poor!”

The four enraged buddies surround Bowler #5 and beat the hell out of him for ripping them off.

Over the next month, four buddies showed up for their weekly bowling night. When the $80 bill arrived on the last Tuesday of the month, the four realized that, combined, they only had enough money to cover a small portion of their costs.

The moral of today’s tale: Bowlers who make the most money will always get the biggest tax breaks in dollar terms because that’s how math works.If you abuse those bowlers enough, they simply go away … taking with them the money that supports those who would otherwise never get to bowl in the first place.

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