Entrepreneurs: Just Say NO!

You're an entrepreneur. You're smart, you're talented and you bring a lot of value to the table. And the more that people recognize your skills, the more people will be knocking on your door trying to get you on board with their program, idea or mission. Along with this, we obviously have our own new ideas and inventions crossing our mind on a minute-by-minute basis. Some of these ideas materialize into something great while others do not, but that's ok with us. And, because we are wired to multi-task and have the confidence that we can do just about anything we set our minds to, we have the tenancy to jump on every opportunity that comes our way and run with it. Our logic is based on the fact that every wealthy entrepreneur before us took on many tasks and developed systems that generated multiple streams of income, which is the reason they are so wealthy. But, you must realize that those wealthy entrepreneurs learned how to say "no" before they reached any serious level of success.

John Maxwell addresses this best when he says "Learn to say "no" to the good so you can say yes to the best."

I like to use the analogy of dating to help break this down for clearer understanding. When you first see that person, you are attracted to their looks and/or surface personality. Everything is so exciting and all you can think about is spending time with them, and you could most certainly never imagine it any other way. When you're not with them physically, you're on the phone with them, texting them or at least thinking about them.  As time goes on and you spend more time together, you get to know them on a deeper level and that's when you begin to notice their flaws and get a better understanding of their beliefs & priorities. Eventually you disagree on something and your first argument happens. At some point in the relationship, you will reach a crossroad and make one of two choices. 1) This is no longer working out for you and you decide to part ways. You may feel as if you wasted time and wonder if "Mr. Right" really even exists. or 2) This is the person of your dreams that you want to marry and spend the rest of your life with, flaws and all. This is called love. As helpful as being psychic would save time & pain, that's not a viable option for us when making business decisions.

Sometimes when an attractive opportunity comes our way, it looks sexy and sounds so good. We dive in only to find out that it wasn't all it appeared to be. That wasted time makes us question our ability to recognize the difference between "good" and "best". On the flip side of that, the learning lesson that comes with failure is healthy in of itself if the lesson keeps us from making the same mistake again. But, if you're the person who repeatedly makes bad choices because of your inability to say "no", then I would say to you that while you're wasting your time with "good," "best" may be walking right by you for you to never notice it because you were so distracted by "good". Worse yet, when you give your time and attention to several different non-producing ideas and opportunities, the true money-making sources that are already in place begin to suffer. If you cannot give 100% to everything, then everything is suffering, this includes your family.

It's very important to have a good system in place to filter out all of the good opportunities that come our way so that we don't miss out the the best opportunities and end up not reaching our goals. I have broken this down into 3 categories:

1) The good-bad opportunity
This is that idea that you come up with or the opportunity that is presented to you that may look & sound good on the surface, but does not have enough facts to support its ability to succeed. It's a "shot in the dark" concept. As a business-builder, we know that a big part of pulling the trigger is KNOWING facts, not just hoping because it SEEMS like a good idea. Emotion is not permitted when making decisions in business, only factual researched evidence is. I will say that the good-bad opportunity is only acceptable when you're just starting out as an entrepreneur. Your time is not as valuable when you first begin and the lessons learned by trying new ideas & opportunities are invaluable to your success in the long run. Before you pursue a questionable opportunity, ask questions & do your homework. Know why you're doing it!

2) The stepping-stone opportunity
This is the opportunity that has a definite beginning and ending, realizing that it is simply serving as a catapult to a new and better opportunity, which will ultimately help you reach your long-term goals. The question you must ask yourself with this type of opportunity is: "what's worth more, the time & money I'm investing NOW or the final payoff that comes from the next chapter?" This is sometimes a risk because we can't know that everything will go as expected, but the deciding factor for taking on a stepping-stone opportunity is realizing the high probability that new & better opportunities will come out of it and that it's simply a means to an end. Again, understand the why's before making your final decision.

3) The home-run opportunity
This is the opportunity that just makes sense all the way around and fits in perfectly with your goals. It's the no-brainer concept that has facts to support it. This type of opportunity creates wealth while freeing your time to pursue your other ventures. This is not as common of an opportunity as the others, and for obvious reasons. If this is not your own idea, then it's likely that you have some solid value that you are bringing to the table since you were approached with it to begin with. This doesn't take a whole lot of thought when deciding to move forward with it.

To sum it up, it's essential that you approach each and every opportunity with a broad point of view. If something sounds to good to be true, it usually is. Be smart, gather information & learn to say no. Saying NO will be many of the best business decisions you ever make, trust me! :)

Good luck!

Jason Rose
www.SmartStartToday.com

How To Become Successfully Unemployable: True Entrepreneurship

Though I wasn't aware of the term at the time, I have been an entrepreneur since I was a young boy. Growing up very poor forced me to do whatever it took to earn money and escape the poverty I was born into. It all started when, at age 12, I negotiated with an elderly woman who lived down the street from my home. She asked me to mow her lawn and offered me $10 per week to do so, which sounded like a heck of a deal considering she was providing the mower and gas to get the job done. But, as I began to think about it, I wondered how many other folks in the neighborhood could use someone to mow their yard. $10 per week could easily be turn into $50 or $100 per week.  So, instead of taking the neighbor lady's $10 per week, I told her I would do it for nothing for the whole summer if I could use her lawnmower for other lawn jobs. She agreed to the offer and I was off to the races. I went home and made up flyers to handout to all of the neighborhood homes. Before I knew it, I had made enough money to buy my own mower and turned this yard mowing business into a full time job, that is until winter rolled around. I had to think fast so that my income wasn't interrupted so I quickly turned my summer mowing business into a snow shoveling business by winter. Because I had already established the clients, it was a easy transition without missing a beat in regards to income. While most others would have been content with the $10 per week, I was not. As a preteen I decided that I would never be able to work for anyone else besides myself. Experiencing the freedom to maximize my income ability using my own skills was so gratifying, that I realized that I would rather be poor and in charge than rich and enslaved. Here I am 25 years later and I still have yet to have a job.....I am unemployable!

Let's make one thing very clear. Just because you own a business does not make you an entrepreneur. By definition it does, but I think we can all agree that a person who gives themselves a full time job, intense stress and leaves no time for the things they enjoy most is by no means an entrepreneur. So let's talk about what a truly successful entrepreneur looks like.

A truly successful entrepreneur does not just see what's being put in front of them. They see all of the unspoken opportunities that arise out of each situation as it's presented to them. Someone may be telling me about a good idea that they have or even just telling me a story, which gets my wheels spinning and ultimately leads me to developing a great idea. It may or may not have anything to do with what they were actually talking about, but something they said just kicked it into full throttle for me. This happens in many of my conversations on a daily basis. It may also be something like a billboard or tv commercial that triggers the wheels to start spinning and the ideas to start flowing. A truly successful entrepreneur does not limit themselves to their surroundings or to just what they can see with their own eyes. They think outside of the box and look at everything from a ten thousand foot viewpoint. Entrepreneurs do not accept mediocrity. They understand that things may be discouraging, lonely & thankless along the way. They understand that they might lose sleep and make a bunch of mistakes. This is all acceptable to a truly successful entrepreneur because they know the end result even if nobody else gets it. They don't see today as the end, but as the means to an end. They don't see issues as stumbling blocks, but rather as stepping stones and learning opportunities. They have a mission and will not be stopped!

Let's look at some other essential characteristics of truly successful entrepreneurs.

1. They do what they enjoy
2. They are serious about their business
3. They plan everything
4. They manage money well
5. They value networking
6. They remember it's about the customer
7. They brand themselves well
8. Create multiple streams of income
9. Learn & apply technology
10. Are good team builders
11. Become known as an expert
12. Invest in themselves
13. Sell value
14. Get involved in community
15. Master the art of negotiation
16. Are organized
17. Take time off to enjoy life
18. Follow up & follow through
19. Are constantly learning
20. Have a cause

By Jason Rose
www.SmartStartToday.com

Take A Chill Pill: An entrepreneur's guide to dealing with stress

The tension is building and you can barely think at times. Trying to reel everything in so you can figure out what this awful feeling of overwhelmingness is....oh wait it's stress! What's causing it? Is it that difficult deal I'm negotiating? Maybe it's because my profit margins are not quite on pace of where i need them to be to make payroll next week. Maybe it's the toll my busy schedule has taken on my relationships with my spouse and children. There are a million things that can cause stress in our lives as entrepreneur's and in order for us to be truly successful, we must learn to manage it. Rest assured in the fact that no matter how busy & stressed you are, those other guys who have "made it" dealt with a thousand times your busyness & stress levels on their way to getting there.

I was reading a article that stated a survey by TalentSmart showed that 90 percent of top performers know how to manage their emotions in times of stress so that they remain cool, calm, and able to do what needs to be done.

This is one of the most valuable traits of an entrepreneur, we know how to stay cool and get the job done that needs to be done when it needs to be done. With that said, I think that we all can get better at managing our stress and enjoying the fruits of our hard work by simply taking a "chill pill" approach to dealing with our stress levels.

Here are some basic strategies that I apply that help me manage my stress

1. Have an attitude of gratitude: Developing a attitude of gratitude is a psychologically proven way to reduce stress and maintain a more positive outlook on life. When you have a more positive outlook (and less of the stress hormone cortisol) you are happier and more productive, too.

2. Stay Positive: Easier said than done? Sometimes. But successful people tend to be those who see opportunities for growth masquerading as failure, and who look for the lessons learned when something goes awry, instead of wallowing in what could’ve/should’ve been. Maintaining a positive outlook is a proven stress management tool. If affirmations aren’t exactly your thing, try reframing negative thoughts. If you find yourself dwelling on something negative, try adding, “But what I can learn from this is…” Even just noticing that you’re stuck in a negative thought can help you move away from it.

3. Are Ok With Failure: No one is perfect. Not even the most successful people on the planet are perfect - and they would almost certainly tell you the same. As Richard Branson would say, fail quickly, fail big, learn from it, and move on. Many of us worship the cult of perfection, but letting it go may release us from a heavy burden of undue stress.

4. Take Care of Themselves: Successful people often have the presence of mind to realize that they must care for their most important asset - themselves - in order to continue to be successful. They prioritize healthy habits like getting enough sleep, limiting caffeine and alcohol, getting proper exercise, and switching off from technology periodically. Being overly tired, hopped up on chemicals (like caffeine and alcohol) and constantly monitoring our digital lives puts our adrenal glands into overdrive, and our stress levels through the roof. A truly successful person will strive to find balance to help moderate his stress.

5. Keep Things Simple: One major cause of stress is the number of decisions we have to make in a day. Every decision from whether to have the sandwich or the salad all the way up to hiring and firing decisions weighs on us and causes us stress. Relying on simple routines like having the same lunch every day, answering emails at the same time, or even simplifying your wardrobe can help save your stress and sanity for the bigger decisions that really matter.

The biggest thing to remember is that we have a lifetime to achieve our goals. Anyone who pursues anything worth having is going to face obstacles and deal with stress. Enjoy your business pursuits by keeping a smile on your face & sharing your successes with the people you care about along the journey. Be happy, be healthy, be successful!

Jason Rose
www.SmartStartToday.com

House "Flipping": Gross vs Net Margin

by Jason Rose

We hear the word "margin" used quite a bit in regards to rehabbing real estate for a profit (a.k.a. "flipping"). But, it's very surprising to me how it's possible that so many people don't really understand what this very important word truly means prior to moving forward on an investment purchase. 

As the leader of the two largest real estate investor groups in Cleveland, Ohio, and as a real estate agent who represents hundreds of real estate investors, I hear the stories each and everyday about how an investor "broke even" on his flip endeavor because of his "unexpected costs." When I inquire about these "unexpected costs" and try to make sense of the situation, I find that these costs are actually very normal costs associated with fix n flips. But, for some reason, which I will guess has something to do with reality television, most new investors simply look at margin as the amount of cash leftover after the property is bought, rehabbed & sold. That is what I would call your gross margin. 

Gross margin is a quick math equation that I use to determine if the property is worth putting any more time into researching. But, it's by no means a number that one should use to determine if a property is a worthy investment. By making a move based on gross margin alone, investors are risking breaking even and losing money on every deal they do. 

To really know if a property is a worthy investment, investors must instead look at the net margin. There are 4 factors to determine the net margin once you have found a potential investment opportunity & prior to moving forward with an offer.

1) Purchase Costs: This would include all the buyer costs on the settlement statement including the purchase price, closing costs, loan costs etc.

2) Rehab Costs: This would include all the costs of labor & materials to get the property in the condition needed to sell it.

3) Carrying or Holding Costs: This would include the costs of owning the property while it's being rehabbed & until it's no longer your property. These carrying costs include taxes, insurance, utilities, lawn care, HOA fees, etc.

3) Selling Costs: This would include all the costs associated with selling the property such as realtor fees, advertising, closing costs, taxes etc.

So let's look at an example of an investment scenario from the view of the gross margin approach compared to that of the net margin approach.

Gross Margin Approach               

$100,000 purchase price

$50,000 rehab costs

$200,000 selling price

$50,000 profit

Net Margin Approach

$100,000 purchase price
$1250 upfront loan costs
$750 closing costs
$50,000 rehab costs

$3000 carrying costs

$20,000 selling costs

$25,000 profit

Now I realize that when looking at this, it would seem as this very basic math equation would be common sense for anyone trying to take on such a big investment. But, you would be very surprised at how many investors do not consider the net margin approach prior to getting a property under contract or even afterwards. Many of them don't realize that they completely underestimated their project costs until their Realtor shows them the after sale breakdown sheet. At that point they are upset and feeling like someone else is taking advantage of them by claiming such a big piece of the pie that they were hoping to eat all on their own. Don't get so excited about what you think a property is worth that you forget to just sit down and crunch ALL the numbers associated with a real estate transaction.

I have a rehab spreadsheet that I use to determine all the costs associated with my transactions so I absolutely know going in that it's a great deal. No surprises for me! If you would like a copy of this spreadsheet, please don't hesitate to email me.

Good luck in all your ventures!

 Jason Rose
www.SmartStartToday.com


Jason has been apart of over 700 flip projects in his 20 year investing career.