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The Wealth Builder's Blueprint
Created and produced by BrandWithin
Copyright Copyright 2005 Trump University.
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, recorded, or otherwise, except in the case of
brief quotations embodied in critical articles or reviews, without the prior written permission of the publisher.
Information Only — Not Legal or Financial Advice This Program is designed to provide general information regarding the subject matter
covered.This information is not intended to serve as legal, personal, business, or financial advice related to individual situations. We have taken reasonable precautions in the
preparation of this material and believe that the information presented in this material is accurate as of the date it was written. However, we will assume no responsibility for any
errors or omissions. We specifically disclaim any liability resulting from the use or application of the information contained in this program.
TrumpUniversity.corn
Welcome to the Wealth Builder's Blueprint
Congratulations on your decision to invest in The Wealth Builder's Blueprint. Your
commitment to your education is the most powerful asset you can own. Through this
program, that commitment will be harnessed with an extraordinary body of knowledge
and wisdom.
At this moment of beginning, you are likely to be enthusiastic, optimistic and dedicated to
making the program work. What will it take to sustain that energy? One of the presenters
you will hear, Dr. Stephanie Burns, reveals that about 80% of adults who select a major
goal fail to attain it, because they fail to take the action required. She explains why this
happens, and how to beat the odds.
What is your decision? Will you be one of the majority that dreams and fails? Or one of
the 20% that acts and succeeds? All the tools to make you a winner are in this box,
except your determination. That part is yours.
You need high ambition, and you need realistic expectations. As Donald Trump has written,
"Your mind can build castles — just make sure the foundations are in place first." The
Wealth Builder's Blueprint is a 90-day program. This does not mean you will get rich in 90
days, It means you can change the course of your life, and your thinking, so that you are
headed in the direction of wealth creation.
How you start a journey may be the most important element of it. The direction you select,
the equipment you take with you, and your knowledge of the road ahead are the three
critical factors. These are the focus of The Wealth Builder's Blueprint. The good news is,
once you are fully on the road, you will tend to stay on the road. As you will learn later,
human beings have a natural tendency to keep doing whatever they are doing.
There is much fun to be had on the journey to wealth, and we hope you enjoy the mix of
instruction, stories and activities in this program. Ear more important, we hope you stay
the course when the going gets a little rough, and hold firm to Donald Trump's advice,
"Never, ever give up." Then you can look forward to the even greater fun of attaining your
goal — financial freedom.
Led and inspired by Mr. Trump, a large team of experts, some visible, some behind the
scenes, has worked intensely for many months to create The Wealth Builder's Blueprint
We are all rooting for you.
All the best!
Table of Contents
Introduction Getting the Most out of The Wealth Builder's Blueprint
1 Meet Your Presenters
2 Mindset for Success Dr. Stephanie Burns
3 Money Mastery Diane Kennedy, CPA
4 Powers of Persuasion Dorian Gallo
5 Career Champion Les Hewitt and Chris Lewis
6 Own a Business — and a Life Jeff Burrows
7 Money While You Sleep Dr. DoIf de Boos
Appendix Master Plan Checklist
How To Use This Workbook
Trump University teaches success, and success comes from action. The method of education here is learning by doing.
The DVD and audio CDs provide essential information, guidance and inspiration for your journey. The Workbook is the journey itself. This is where the action is.
The Action Steps
The core of the Workbook is a series of action steps. For each of the content modules, there are 12 action steps. Every step comprises instructions, tips on how to complete it effectively, and a page where you record what you have learned.
There are no action steps for the first module, Mindset for Success, which is designed to set the context. For this module, the Workbook provides transcript excerpts from the audio CD to help you fully absorb and integrate the information.
Set Your Pace
In this program, there is a lot to learn, and a lot to do. It is important that you manage the process in a systematic way, and move at a pace that pushes you a little and at the same time fits in your life. The Wealth Builder's Blueprint is organized to help you.
It is designed as a "90-day" program, and of course you can take longer, or move faster. If you take too long, however, you will lose momentum. And if you move too fast you will cut corners and fail to fully integrate the information. It is up to you to make a plan that works for you, and there is a section at the end of the Workbook to help you do this.
The Structure of the Program
Here in more detail is how the program is structured. There are two introductory elements, and five content modules. Each content module in itself provides enough material for about 90 days.
An effective approach is to spend the first 90 days on a tour of the entire program. Spend about a week with the introductory material —the DVD and the Mindset for Success audio — and two weeks on each content module. Then spend a week to review.
If you choose this path, do not move to a new module before you have spent at least two weeks working on the one before it.
At the end of three months, you will have a new level of competence and confidence in all the subject areas. For each topic, you will have completed one or two introductory action steps.
Now is the time to go for depth. Select the module that is most essential to your ambitions and spend 90 days with that module. You can give yourself some freedom here. You may wish to combine related modules, such as Money Mastery and Money While You Sleep.
Repetition Can Make You Rich
Probably the single most important principle is that for success with this program you must repeat and review.
The first time you watch the DVD or listen to an audio CD will probably be fun, more like entertainment. The second and third times may seem more like work, as you will be pausing to take notes. This is where the real learning happens.
Likewise, the first time you do an action step may seem intriguing or exciting. The second time could be less appealing because the novelty has gone and you already know what difficulties you may face. However, the second and third times are essential — these are when you set a pattern for life.
Why Write
Another essential principle of this program is: Document your progress. The Workbook is structured like a journal. Every time you take an action step, you will record what you learned from it plus some specific observations related to that topic.
There are two reasons for this, First, you are your own coach for the program, so you have to hold yourself accountable for completing the actions. Writing your report is the most powerful way to maintain accountability on your own.
Secondly, documenting your experience and observations imprints the learning on your brain. At the time, you may feel 'I know what happened, I don't need to write it down.' Months and years later, though, there will be a huge difference in your level of retention according to whether you documented your progress or nat.
Follow the Sequence
Lastly, follow the sequence of the program. It is there for a reason.
First, watch the DVD, primarily for the interview with Donald Trump. This will give you the biggest possible picture of wealth creation and establish the vision and inspiration that will help carry you through.
Second, listen to and study the audio CD Mindset for Success, with Dr. Stephanie Burns. Read the transcript excerpts and listen again, several times. This is the material that can guide you into being a "one-in-fiver"— one of the minority of adults who act on their goals, consistently and frequently. It is the foundation for everything that follows.
Third, spend at least two weeks studying Money Mastery with Diane Kennedy. The level of your "financial literacy" will largely determine the level of your future wealth. Again, this is essential preparation.
Fourth, study Powers of Persuasion, with Dorian Gallo. As you develop skills in persuasive communication, everything you do, no matter what your profession or sphere of action, will be massively more effective.
Now you have a fork in the road. The two next modules are Career Champion with Les Hewitt and Chris Lewis and Own a Business — and a Life with Jeff Burrows. The first is about generating wealth by achieving outstanding success in the corporate world. The second is about creating financial freedom through owning a business, If you are a corporate employee, study Career Champion first, and concentrate your attention here. If you are an entrepreneur, go straight to Own a Business — and a Life. In both cases, however, you should study the other module in addition, For entrepreneurs, there is a great deal to be gained from a deeper understanding of the corporate world. And for corporate employees, adopting the mindset of the entrepreneur is one of the keys to success.
Finally, study Money While You Sleep with Dr. Doff de Roos and learn how to generate unlimited passive income through real estate investment. Because of the promise of wealth that real estate brings, you may be inclined to "cut to the chase" and go here first. Resist the temptation! You will be far more successful as a real estate investor if you first know:
• How to keep acting on your goals, no matter what happens in your life
• How to understand, manage and protect your money
• How to persuade other people so you can achieve your results
• How to make a resounding success of your career and/or your business
So keep to the sequence!
Help On The Way
As you will understand, we cannot provide individual coaching to the many thousands of users of The Wealth Builder's Blueprint. However, we encourage you to communicate your questions to us. On our web site, www.WealthBuildersReports.com, our experts will periodically answer the most pressing and commonly asked questions,
Send your questions to [email protected]
Credits
The Wealth Builder's Blueprint
Designed and produced by BrandWithin Inc, Phoenix, Arizona
Concept and creative direction James Burgin and Jon Ward
Educational consultant Dr. Stephanie Burns
Graphic design Mingoo Kang
Photography Mark Burgin
Production management Diane Zoller
Editing and coordination Marnie Eastburn, Pauline Abel,
Claire Nassano
Donald Trump Speaks DVD
Produced by BrandWithin, Inc
Directed by Sharri Weinberg
Interviewer Jon Ward
Executive producer James Burgin
Theme music John Costello III
Photography Mark Burgin
Graphic Design Mingoo Kang
Script writer Jon Ward
Editing Sharri Weinberg, John Wroble
Audio Programs Creative direction and interviews Jon Ward
Sound engineer and editor Craig Quist
Producer James Burgin
Special thanks Andrea Ward, Ken Burgin, Peter Johnston, Suzi Dafnis, Derick Brunette
James Burgin Producer of The Wealth Builder's Blueprint
James Burgin acquired his mastery of branding, product design
and marketing as a successful retailer and marketer in Australia
and the Far East. In 2001 he relocated to the United States
where he launched BrandWithin, a branding and marketing
consulting company. He quickly built a core clientele of high
quality educators such as Robert Kiyosaki of Rich Dad fame and
Adam Ginsburg, a leading eBay marketer and educator. With
degrees in both industrial design and natural medicine, James
today is continuing a personal mission to "make things easier
for people" in every dimension of their lives.
Meet Your resenters
A team of outstanding experts has joined forces with Donald Trump to provide you with this action-based education in wealth creation.
On the following pages, you can learn more about each of your presenters. What's more, you can obtain from each of them a Free Special Report exclusively written for users of The Wealth Builder's Blueprint.
These downloadable documents can be accessed by visiting WealthBuildersReports.com
Dr. Stephanie Burns
Diane Kennedy, CPA
Dorian Gallo
Les Hewitt and Chris Lewis
Jeff Burrows
Dr. DoIf de Roos
Jon Ward (interviewer)
Dr. Stephanie Burns Mindset for Success
Dr. Stephanie Burns has devoted her life to
achieving a greater understanding of human
behavior in the fields of adult learning and goal
achievement.
After decades in the field as a trainer and author,
she committed herself to academic research and
earned a PhD in her chosen field. This work has
provided an unprecedented insight into why
otherwise successful adults fail to sustain action
when it comes to important goals — goals like
getting healthy, winning athletic competitions and
creating wealth.
Dr. Burns has applied her methodologies to a
wide range of activities, which include training
technologies, communication skills, natural
horsemanship and learning musical instruments.
She is the author of several books including Great
Lies We Live By and Move Closer, Stay Longer, a
breakthrough study of fear and courage.
Your free Special Report from Dr. Burns is
What You Never Learned About Learning.
Download it now at WealthBuildersReports.com
Meet Your Presenters 1 - 2
Diane Kennedy, CPA Money Mastery
Diane Kennedy specializes in the creation and
protection of wealth. She is a highly successful
accountant and tax strategist and well-known
author, speaker and educator. She has devoted
her career to teaching people how to be
successful with their investments, their businesses
and their tax management.
Diane is the author of several bestselling books,
including Loopholes of the Rich— bestsellers of
The Wail Street Journal and Business Week. She is
known to television viewers around the world
through her appearances on CNN, Bloomberg TV
and CNBC.
Diane is a powerful advocate for what she calls
"financial literacy" —the ability to understand, in
a practical way, the language and fundamental
principles of money.
Your free Special Report from Diane Kennedy is
Now to Choose a Great Accountant
Download it now at WealthBuildersReports.com
Meet Your Presenters 1 - 3
Dorian Gallo Powers of Persuasion
For almost twenty years Dorian Gallo has held
sales and marketing executive positions at several
billion-dollar companies, including Dean Foods,
Blyth Industries and The NutraSweet Company.
Dorian has used her approach of persuasion to
create and grow businesses in the USA, Asia
Pacific and Brazil and to bring major brands such
as Diet Pepsi and Marie's Dressings to new
markets. She has consistently exceeded her
financial targets, which has earned her the right
to increasing levels of responsibility within the
corporate world.
Throughout her career, Dorian has served as a
coach and mentor to individuals, start-up
enterprises and non-profit boards.
Your free Special Report from Dorian Gallo is
Now to Ask for Money
Download it now at WealthBuildersReports.com
Meet Your Presenters 1 - 4
Les Hewitt & Chris Lewis Career Champion
Les Hewitt is known to thousands of readers
through his book, The Power of Focus: How to Hit
your Business, Personal and Financial Targets with
Absolute Certainty. His co-authors, Jack Canfield
and Mark Victor Hansen, are creators of the world-
renowned Chicken Soup for the Soul series.
As a business leader himself, Les understands the
tremendous pressures of corporate life and what
it takes to stay focused on results. His passion is
coaching and he has founded an international
coaching and training organization, also called
the Power of Focus.
Chris Lewis works with Les Hewitt to bring his
methodology to corporate managers and
employees throughout the world. He carved out a
successful career in the corporate environment,
rising at a young age to senior management in
the highly demanding energy industry. As a
former professional football player, Chris has a
keen sense for competition, team building and
playing to win.
Your free Special Report from Les and Chris is
The Power of Focus: How to Hit your Business,
Personal and Financial Targets with Absolute Certainty.
Download it now at WealthBuildersReports,corn
Meet Your Presenters 1 - 5
Jeff Burrows Own a Business - and a Life
Always an entrepreneur himself, Jeff Burrows has
had successful careers in business radio and
television, and in the investment banking world.
After meeting Michael Gerber, the famed author
of The E-Myth, he started on a new path as a
teacher and coach to business owners.
Today, Jeff is an advocate for others achieving
their own dreams and serves as an E-Myth
Master Coach to small business owners. He
shows his clients how to find lasting success
with his Timeless Secrets of E-Myth Leadership
Program. He also leads a group of certified
E-Myth consultants.
Jeff's coaching career has spanned over twenty
years, counseling individual leaders of small to
mid-sized companies. He coaches business
owners on how to get "more life" as well as
more money from their enterprises, and how
to capture that most coveted of entrepreneurial
prizes: freedom.
Your free Special Report from Jeff Burrows is
Strategic Diagnostic for Business Owners Toolkit.
Download it now at WealthBuildersReports.com
Meet Your Presenters 1 - 6
Dr. DoIf de Roos Money While You Sleep
Born in New Zealand, Doll de Roos attended
school in a several countries, speaks six
languages and holds business interests inside and
outside the United States.
Doll has written five real estate books including
The New York Times bestseller, Real Estate Riches.
He has also introduced proprietary software for
analyzing and managing investment properties. In
the late 1990's he launched his own property
investment company, and today its holdings range
from high-rise apartment buildings to high-end
vineyards.
Doll is frequently asked to address investors'
conferences and to make radio and TV
appearances. Nevertheless, his primary focus
remains to this day the real-world business of real
estate investment.
Your free Special Report from DoIf de Roos is
What Makes a Good Deal Good
Download it now at WealthBuildersReports.com
Meet Your Presenters 1 - 7
Jon Ward Interviewer and Writer
Jon Ward's first years in business were spent
writing advertising copy for Pentagram, England's
most prestigious graphic design company, and for
Reuters, the global provider of news and financial
information services. Soon after moving to the
United States, he became co-owner of a highly
profitable boutique marketing and advertising
agency. Today Jon's primary focus is developing
interactive tools for entrepreneurs and corporate
marketers, including the Action Marketing System
with co-creator James Burgin.
Your free Special Report from Jon Ward and
James Burgin:
The Making of The Wealth Builder's Blueprint
Download it now at WealthBuildersReports.com
Meet Your Presenters 1 - 8
Mindset for Success
Dr. Stephanie Burns Talks About Goal Achievement
Excerpts adapted from the audio CD
The Challenge: Taking Action on Goals
ortnany,yOrs I have been dedicated to helping adults achieve the 661s:11i:4:want to reach. Let us say you are a competitive swimmer
committed to training every day. How do you actually make the decision to get out of bed in the morning and go to the pool — when the water is cold and there is a risk of being kicked in the head by another swimmer? Those are the kind of real-life challenges that interest me, and exactly the same kinds of issue will arise for users of The Wealth Builder's Blueprint.
You will notice that there are many books and programs on the market that deal with wealth creation, and yet we do not see many people being able to absorb that knowledge in such a way that they can utilize it in their lives. In fact, the average adult today reads only 11 or 12 pages of any business book they buy. They buy it with enthusiasm, they are all excited about the end goal, and then they open the book. They start reading and once they realize the actions they have to take, everything falls apart.
I have found that when adults choose important goals like wealth creation, only a minority will reach their goal. In fact our research shows that between 75% and 85% of adults self-selecting the most important professional and personal goals are failing to achieve them. In other words, it is more common for us to fail at a goal than to achieve one. It is actually normal to quit. You are being exceptional if you continue.
This suggests that something is happening at the biological level. Research shows that human beings have a natural tendency to avoid things that bring discomfort. For example, with The Wealth Builder's Blueprint we are giving you a series of audio CDs by competent experts. These CDs include a number of action steps that are to be implemented by you in the real world. What tends to happen is that people are excited about the product and therefore are motivated to buy it. Once the reality of listening to the first CD, studying it and then taking action kicks in — well, you might find most of those activities are just not fun. They are not terrible, but they are not especially enjoyable. So people tend to stop. The reason is that wealth creation requires new knowledge. That means your brain has to know things it did not know before and be able to do new things it can not do now We have studied how adults feel when they are learning something new 90% of the time when adults describe how they feel when they are learning, they report a negative effect. When adults learn, they are most often bored, confused, frustrated or physically distressed. Now as
Mindset for Success I Dr. Stephanie Burns 2 - 2
humans, biologically, when we are under distress, our brain will do whatever it takes to help — that is, to get us out of distress. And in learning, the single fastest way your brain can save you from being distressed is to stop you from doing whatever you are doing. That is the biology of procrastination.
The Three Strategies for Effective Action
In order for us to do things that are discomforting, we must have a mindset, or mental strategy that says being bored is not a good enough reason to stop. Being confused or frustrated is normal and natural in learning. If you do not have a strategy that makes feeling bad okay, you will abandon almost any learning goal you set.
The good news is we naturally have three core strategies for overcoming our tendency to stop. And once we use one of these strategies, and it works, we will tend to go on using it. Most adults, as soon as they have a better choice — something that creates a more positive feeling or produces a better result—will select it above all others from then on. If you have more time in your day, or more money, or less stress, you will keep doing whatever produces that.
So here are the three strategies for getting in action.
The first is: do not think about the action in advance. The worst question you can ask is, "Do I feel like doing it?" because as soon as you ask that question, your brain will produce a full-body experience of what it is like to take this action you are trying to avoid. And of course the answer that comes back is "No." So do not think — just do it. The Nike slogan, "just do it," makes an amazing connection to human behavior that accurately represents how people get things done.
The second strategy for doing something uncomfortable is: do think — but in a very specific way. Think about how good you will feel to have completed the task. Alternatively, think how bad you will feel later if you do not. For example, imagine you have committed to going for an early morning jog, and there you are lying in bed, all warm and toasty, and it is cold and wet outside. If you ask yourself, "Do I feel like going out for a jog?" — the obvious answer is "Forget it!" But if you start to think about how good it feels to have done the jog, or how good it will feel to tell your friend you
Mindset for Success I Dr. Stephanie Bums 2 - 3
have done your jog, or even how good it feels ten minutes after you start running„you are far more likely to take action.
eUird,.krgegy is just start. Get in motion. Commit to doing just a few minutes of the action, with the promise to yourself that you can stop after that if you want to. The reason this works is that human beings are absolutely terrible at changing direction. If you have committed to spend time reading, tell yourself: "I am going to start. I am going to do it for just 10 minutes." Once you begin to read, you will actually tend to keep going, as opposed to closing the book and going off to do something else. This works for all kinds of things people procrastinate on.
Myths about Learning
In the New Age personal development world, there has been a twenty-five year history of a belief, almost a mantra, that says if learning is not fun, then it is not occurring. Well, I would challenge you to think about the significant and important things that you have learned in your lifetime and really reflect on what that process was. In most cases, it was something that was challenging, that was fraught with anxiety at times. And typically, there was a teacher or somebody there that got you to stick with it long enough to get the result.
The only way you can make learning fun all the time is to water down the material — so much so, that it no longer has meaning. For example, we take a marvelous 400-page book, the best book in the world about leadership, and because we want to make it "fun" and we do not believe adults will read, we break it down into a one page cheat sheet or five power-point slides and say, "Here are the three keys to leadership." The notion of making learning fun kills off the whole opportunity to learn. My message is learning that is rigorous needs to be big and needs to be what it is. You have to study, you have to work, and you have to have a tolerance for doing that.
Many adults have the notion that somehow learning just happens. Even though their experience does not support it, they have an interesting belief that they should remember what they read. It is amazing how many people say, "Reading is really frustrating for me because I never remember any of it." What you have to know is there is nothing, not one thing, in the act of reading that makes information memorable. Reading is not a memory activity.
Mindset for Success Dr. Stephanie Burns 2 - 4
So if you want to remember what you read, you have to do something about that. You have to apply study strategies that make the information memorable.
The fact is, there are many things in life you cannot figure out by sitting on the couch, or by talking about them or by thinking. You have to figure them out through action — through the process of action. It is sometimes better to start something, not even knowing if you will like it, because from the mere fact that you do not like it your brain will begin gathering information to make better decisions in the future.
Also be aware when it comes to learning, one of the biggest causes of failure is the fear of failure. Adult learners have specific ways to defend themselves against the experience of failure and humiliation. One way is simply not to do the work, because when they fail, they can say to themselves, "Well of course I failed, I never did the work." This is emotionally less risky than saying, "I did the work — and 1 failed."
Fear and Courage
On the road to wealth creation, all kinds of fear can show up. It is essential to deal with this because the effect of fear on the brain and body is so profound. Fear is not like a little frustration or irritation. It is a full body experience that is vibrant and hard to ignore. Fear is why people do not ask for raises, do not present themselves in a way that might get a new client, or do not attend a university course because there is a test at the end. In fact, fear sits on the road to almost any significant goal that an adult might choose that requires some kind of learning.
When there is fear, the three strategies — do not think, do think, just start — are often not strong enough to initiate action. Something else is needed to successfully neutralize fear. Let us suppose I have a fear of being around the back-end of a horse, in case I get kicked. The fear can be so great I just sit on the couch and watch TV rather than go anywhere near my horse.
A new strategy is needed, which I call 'move closer, stay longer." The game becomes, how close can I get to the horse before I start to feel that effect of fear coming on? And then the game becomes, how long can I stay
Mindset for Success I Dr. Stephanie Burns 2 - 5
there — can I stay just long enough for the fear to change a little?
Cra0d4Itstanding up to give a presentation or planning to bid on a piece ;of.: estate- there is no physical danger, but your brain does not know that. So when the fear response comes, the same strategy applies. How close can I get to doing it? If I can not place a bid on a property, can I go and sit in a room where that is happening? Can I watch other people do it? How close can I get before the feeling of fear takes over? And then, can I stay there long enough for my brain to sort out that there really isn't any danger there? Over a very short time, if you use this strategy you will get closer and closer before the onset of fear, and you can stay longer and longer to neutralize the effect. Before you know it, your brain has sorted out what is and is not genuinely dangerous to the point where you can start to take some constructive action.
"I tried this before — and failed."
A significant obstacle to learning can be "the second time around." It is one thing to get yourself to do something once. It is quite another thing to get yourself to do it a second time. However, experience shows that until you have done something a second time, you do not actually know if you will do it for a lifetime. Ask people who have jumped out of airplanes. When they went parachuting the first time they were somehow able to get themselves to do it. But it is amazing how few people actually go back and do it the second time.
The first time you do something, you are confronting a lack of familiarity, so you do not know what is happening. The second time you do it, you know full well what is happening. You know how things work, how nerve-racking it is how long it is going to take, how painful it might be. What often makes the second event more difficult is that you now have conscious awareness of the actual process you will be going through. And if that process has a lot of things that are negative, like fear or physical pain or discomfort or frustration, then you are biologically set-up for your brain to come to your rescue. And again, how is it going to rescue you? It is going to figure a way for you not to do it a second time.
Mindset for Success I Dr. Stephanie Burns 2 - 6
The strategy for mastering the second time around is the same as for any other action avoidance. Do not think. Just do it — or just make a start. I have worked with a good number of Olympic athletes and what you learn is when they are ready to perform, they are usually not thinking positive thoughts about winning a gold medal. More likely, they are thinking "How in the world did I get myself into this situation again?" And their strategy for performance is typically not to think and just start.
I have a dear friend — a famous 400 meter hurdler — who taught me about running that kind of distance. She said, "Listen, when I am standing on the start line my commitment is to run the first 100 meters —the best 100 of that 400 I possibly can. Then I will decide later if I want to finish the other 300 meters." Now there is wisdom in that strategy, just as there is wisdom in saying, "I will get in my car and drive for ten minutes toward that mortgage broker. And if after ten minutes I do not want to go, I will turn around and drive home." Because the odds of turning around and driving home, like the odds of stopping after a hundred meters of a four hundred meter race, are practically none.
When Life Gets In the Way
Sometimes unexpected things happen — life exerts itself. And when it does, it exerts itself most intensely on our personal goals. We can have the goal to read one business book a week and, all of a sudden, a child is sick or guests come from out of town or we get sent off on a project. That is not the issue. Life will exert itself and it happens frequently enough that we should have a strategy to deal with it.
The strategy for dealing with life exerting itself is
1 recognize it happens 2 recognize that life is very long and there is
more than enough time to get things done
Missing a week of reading your book or getting to the gym is not enough reason to stop the action — just start again as time allows. Set the intention every day that you will be back to your action, even if it takes three years before it happens. Never lose sight of that intention.
Mindset for Success I Dr. Stephanie Burns 2 - 7
Goal Setting vs. Goal Getting
working with adults that they mostly do not have many ISSues'With.,Setting goals. It is the achievement of the goal that is problematic. People attend dozens of different types of goal setting courses and they come away with nifty DayTimers or plans or cheat sheets, or some other mechanism for setting their goals. But of course, that does not get them up out of bed to do anything.
First you must stop thinking that you can complete a large goal in a short time. If you want to write a book, you just cannot write a book in a day or a week or a month. Trying to do a lot at one time is usually a useless strategy. You burn out your own good energy and you fail. For example, wealth creation cannot be achieved in a day, or a week, or a month. It is one of those long term, almost boring activities. It is something you have to give a little attention and a little action, every single day for a very long time.
The key words here are frequent and consistent. Wake up every morning and ask yourself: "Can I do one simple thing in the direction of my goal? Is it one minute more of reading? Is it ten minutes more of listening to the audio CD? Is it getting on the phone one more time with somebody who is influential to me? Is it putting one more dollar in the bank? Can I do one small micro-cosmic thing every single day toward my goal?" If you get in the habit of doing one small thing a day, you will absolutely get where it is you want to go.
The First 90 Days
"frequent and consistent" is how to approach your first 90 days with the The Wealth Builder's Blueprint. Learn to do something every day for 90 days. When life exerts itself and there is a week you can do nothing, as soon as possible do something again. Make sure you have a strategy to start. Encourage yourself to do things that perhaps are not so pleasant for you. For example, you might be the kind of person who would rather be out there experiencing than sitting home reading. Well, too bad! Sometimes to be smart you have to read. Sometimes to be smart you have to listen to an audio. Sometimes to be smart you have to be brave and take an action. All of us have different preferences, so we all have areas
Mindset for Success I Dr, Stephanie Bums 2 - 8
of activity that represent greater or lesser degrees of comfort.
firSt 91:Pdays with this program is really about setting up your -mndset, your behavior patterns, and your willingness to be a long-term student — and then using those strategies to take some steps, that over time, lead to viable wealth creation.
Getting the Most from The Wealth Builder's Blueprint
The most powerful teaching devices you have are the audio CDs and this Workbook. You will need to know how to learn this knowledge with a mindset that will enable you to utilize them well. Fortunately, you have wonderful content experts here, but their job is simply to deliver you the best information possible. Your job is to facilitate your own learning process.
First, we have to recognize that listening to an audio CD one time through can be great for entertainment, but it does not necessarily facilitate us remembering, learning, being reflective or connecting the material to things we already know. If we can not do those things with the information, then we are going to have a negative experience trying to use them.
Be prepared to listen to the audio CDs more than one time and in different ways. I would make a plan to get a big-picture overview and then go piece-by-piece through each of the CDs, because they each need to be studied rigorously.
The first time, listen to the CD sitting back in a comfortable relaxed position or maybe in the car. Your sole intention is simply to become familiar with the sound of the presenter's voice, the concepts and ideas. The point is to direct your brain, with the first pass focusing on the general overview. You might ask yourself "In what ways do I already resonate with that content?"
Then plan to listen to the audio CD again, this time in a position where you can hit the pause button. Be more reflective or take notes on points that seem to stand out for you, that you would like to reflect on further. Rather than listen to the whole audio CD at one time in this way, you might simply commit to studying ten minutes at a time. For the next three or four
Mindset for Success I Dr. Stephanie Bums 2 - 9
days, focus on those few concepts, Talk about them in casual conversations when,y.Qp are having lunch with colleagues. Later, tackle the second
lice the CD.
The Action Steps
The actions steps in The Wealth Builder's Blueprint involve real-life experiences and not all experiences lead to good quality learning. There is a line that says "we learn from experience" but in reality, many people keep repeating the same experiences without learning anything from them. The way we learn from an experience is to focus our brain on what specifically we want to get out of the experience. So before each action step, be sure, to establish in your own mind the learning outcome that you seek.
Set aside time to complete each action step more than once — in fact, maybe three, four, or five different times. Each time you are looking to see something in the experience you did not see the first time. If you have ever read a book or a magazine article more than once, you will notice this phenomenon. The first time you scan through it, you will gather some small percentage of knowledge. When you re-read the same article again, it is remarkable that you do not see the same things you read the first time. You see things you missed — you fill in the gaps. So with the tasks that you are going to do, I would highly recommend that you set up a schedule to repeat them. Recognize that learning is going to get richer every time you revisit the action steps.
Make sure that you choose a few successes first. You might pick tasks that feel especially comfortable for you, but do not forget to use the concepts and strategies that we have reviewed here. The majority of your action steps, listening assignments and study activity will not be the most fun activity to do on a Sunday afternoon. So you need to have the best strategies available. If your goal is simply to be entertained and gather maybe one or two ideas, you can ignore this advice. But if you are genuinely striving to master the information, to acquire new skills and knowledge such that you can head in the direction of wealth creation, then set yourself up to be an excellent learner.
Sit down, get the studying done and get into action — for the sake of your long-term success.
Remember, do not think just do it!
Mindset for Success I Dr. Stephanie Burns 2 - 10
Money astery
Diane Kennedy
The Cost of Ignorance
Key Terms
Assets & Liabilities
Net Worth
Income Analysis
Financial Statements
Goal Setting
Wealth Creation Basics
Your Financial Team
Overcoming Your Likely Roadblocks
Over the next 90 days, you can look forward to mastering the essential language of finance, and the underlying principles for creating and protecting your wealth. You'll begin assembling a team of advisors and applying the strategies to build your prosperity. As you know, it takes time to amass wealth — this program will put you on a course for success.
My Outcome
1 am studying Money Mastery because
My strengths in this subject include
Topics where I can most usefully focus include
My 90-day outcome from studying this segment is
Money Mastery I Diane Kennedy 3 -2
ActionAto: - -7; 1
,ost of Ignorance
Purpose Get clear why you are investing time and energy into your financial education.
Tip Be totally honest with yourself. This may be uncomfortable, so think of the long-term benefits you will gain in money and peace of mind. Don't try to recall everything that has happened in the past just pick out the most important examples.
Example from my life
Estimated financial cost
Opportunities missed
Poor investments
Debt problems
Excess tax paid
Total estimated cost
Money Mastery I Diane Kennedy 3 - 3
ActiolkStep, Self Refia—ttc Ignorance
Date started I_ Date completed
What 1 learned from looking back
What 1 felt while doing the Action Step
How I will apply what I learned in the future
Money Mastery Diane Kennedy 3 - 4
Purpose Learn the essential terms that are needed to understand and discuss your financial situation.
Tip Read the meanings, then cover the "meaning" column with a sheet of paper and check that you have them well remembered. A good follow-up is to read a financial magazine or newspaper and look out for the terms.
Term Meaning
Asset Something you own that puts money in your pocket
Liability Something you own that takes money out of your pocket
Good debt Use of other people's money to buy assets
Bad debt Use of other people's money to buy anything else
Net Worth Total assets minus total liabilities
Appreciation Gain in value of an asset over time
Depreciation Loss of value of an asset over time: can be a source of tax benefits
Cash flow Movement of money in and out
Velocity Speed of cash flows
Earned income Income earned by work you do (highest tax rate)
Portfolio income Income from paper assets such as stocks, bonds, etc.
Passive income Income from other assets such as real estate, royalties, and businesses you own but do not work in
Leverage Use of other people's money, time or assets to generate wealth
Money Mastery I Diane Kennedy 3 - 5
Actior*Siegfz, Self ffeji:pr ir.T 1115
Date started Date completed
What was new to me when I studied the key terms
Things I thought were assets that may in fact be liabilities
An example of good debt in my life
An example of bad debt in my life
One situation or project where I could use leverage
Money Mastery Diane Kennedy 3 - 6
Monthly Cost Asset
Monthly Income
Liability
A cti o n, /4/ e s liabilities
Purpose Make an honest assessment of current assets and liabilities.
Tip Be disciplined about what you call an asset. Many people use the term carelessly to include luxury possessions and toys. If it isn't putting money in your pocket, it's not an asset. Even if it is creating income, it may also generate expenses. Note these too.
Macey Mastery I Diane Kennedy 3 - 7
Action-Step Self Re - -it, setsaiLiabilities
Date started I— Date completed I
What I learned from listing my assets and liabilities
Assets I had not been fully aware of
Liabilities I had not been fully aware of
How this awareness might impact what I do in future
Money Mastery Diane Kennedy 3 -9
Purpose Calculate your current net worth.
Tip In the previous Action Step we measured assets and liabilities in terms of how much cash they regularly produce or take away. Here we look at the total value of your assets and the total amount of your liabilities.
Asset Monthly Income
Liability Monthly
Cost
Total Assets $ Total Liabilities $
Net Worth (Assets — Liabilities) $
Money Mastery 1 Diane Kennedy 3 - 9
Action4te-Self Re--iit
Date started ___ Date completed I
What I learned from calculating my net worth
Check one ❑ My net worth is greater than I thought
111 My net worth is less than I thought
Steps I will take now to increase my assets
Steps I will take now to decrease my liabilities
Money Mastery J Diane Kennedy 3 - 10
Purpose Identify where your income is coming from.
Tip What matters here is the ratio of earned, portfolio and passive income.Your long-term goal will be to derive most (or all) of your income from portfolio and passive sources,
Earned Income
Income earned by work I do
Source Monthly Income
Total $
Portfolio Income
Income earned from paper assets such as stocks, bonds, etc.
Source Monthly Income
Total $
Passive Income
Income from other assets such as real estate, royalties, and businesses I own but do not work in
Source Monthly Income
-
Total $
Percentage of total: Earned Portfolio _.2/0 Passive ___°/0
Money Mastery I Diane Kennedy 3.11
ActiorL Self Repot ,e;
,nalysis
Date started 1— I
Date completed I— I
What I learned from reviewing my income sources
Where I would like to see percentages of income sources
Earned
Portfolio
Passive
Steps I plan to take to achieve this change
Money Mastery I Diane Kennedy 3 -12
Actiop -dat)Staternents
Purpose Learn how to read and use a financial statement.
Tip
You can create your own financial statement, using one of the many popular software packages available. If possible, we advise you to hire a bookkeeper for this task so that you can discuss the meanings of terms and ask questions about the numbers.
The financial statement is a tool you will be using regularly preferably once a month. It is the reality check that ensures you are keeping on your path to wealth.
Components of the financial statement
Balance Sheet Totals your assets, your liabilities and the difference between them (your net worth)
Income Statement
Totals your income from all sources and your expenses from all sources
Shows the difference between them (net income)
Cash Flow Statements Shows how your money is moving in and out from month to month.
Note: Cash flow statements are often omitted, but this is a mistake. Make sure they are included in your financial statements as they are a powerful indication of your financial health.
Money Mastery I Diane Kennedy 3 -13
Action Self Re-
ten
t'Statements
Date started Date completed 1_
How I have decided to get my financial statements
❑ Do it myself manually ❑ Do it myself using software
❑ Hire a bookkeeper
What I learned about my financial situation from my balance sheet
What I learned about my financial situation from my income statement
What I learned about my financial situation from my cash flow statements
Money Mastery I Diane Kennedy 3 - 14
„ etting
Actkin,i
Purpose Now you've looked at where you are today, create your financial goals for the future.
Tip Make your goals precise, measurable and attainable. Make sure you specify the reasons for reaching your goals: how your life will change and why you wish to achieve this. Your reasons are your motive force.
Now 1 year from now
3 years from now
5 years from now
Bad debt
Earned income
Portfolio income
Passive income .
Total assets
Total liabilities
Net worth
Why I wish to achieve these goals
How I will use my wealth
My typical day 5 years from now
Money Mastery 1 Diane Kennedy 3 -15
Actlop _Op Self Report
Date started I_ I Date completed ____. I 1
What 1 learned from writing down my financial goals
What I gained from stating the reasons for my goals
The first three steps 1 am committed to taking to achieve my goals
2
3
Money Mastery I Diane Kennedy 3 -16
C
ActionSte .4/'
kreation Basics 1: Earned Income
Purpose Make the key decisions that will lay your foundations for wealth.
CI
Tip The three pillars of wealth creation are 1 earned income 2 starting a business and 3 real estate investment
If you give each of these gradual and persistent attention, you will become rich. Use the resources from The Wealth Builder's Blueprintto help you.
Give yourself up to 90 days to research each area and draw up detailed plans based on the decisions you summarize below.
The first task is to increase your earned income. Your approach will depend on whether you are an employee or an entrepreneur.
Employee: I will increase my earned income with...
Promotion Resource CD Career Champion
New job
Other
Business owner: I will increase my earned income with
New clients or customers
Resource CD Own a Business New products or services
Cost reductions — and a Life
Other
Money Mastery I Diane Kennedy 3 -17
port . matron Basics 1:
Earned Income
Date started I
Date completed ^ I
What I learned from focusing on my earned income
The single best strategy for increasing my earned income
First steps I can take in the next 90 days
Money Mastery I Diane Kennedy 3 - 18
&flop Ste Creation Basics 2:
Business Ownership
Purpose Start a small, home-based business.
Tip This is a powerful action step for anyone who does not currently own a business. Your home-based operation will provide two advantages: create an extra income stream for you to invest, and provide numerous legal tax advantages.
Give yourself up to 90 days to carefully evaluate different business possibilities. Read and research widely, and make full use of Own a Business — and a Life, both the CD and workbook section.
Use the blank spaces below to note likely possibilities. Reserve the decision line until you have completed your research.
My new business will be:
Resource CD Own a Business — and a Life
Service based on a skill I possess
Product I have created
Product I can acquire and sell
E Bay-based
Web-site based
Network marketing
Franchise
Other
My new business will be
Money Mastery I Diane Kennedy 3 -19
Action:
la treation Basics 2: Business Ownership
Date started I— Date completed I----
WhatI learned from thinking about starting a small business
Challenges I see starting a business
Challenge Possible solution
One first step I can take now towards starting a business
Money Mastery I Diane Kennedy 3 - 20
Sfeation Basics 3: Real Estate Investment
Purpose Build passive income through real estate and begin the journey to financial freedom.
Tip Real estate is the most secure, profitable and tax advantaged way to invest the income you generate from your job and/or business.
Make a commitment to follow closely the directions given by Dolf de Roos in Money While You Sleep. His income-focused philosophy complements the wealth building strategies you are learning here.
One of the first steps DoIf teaches is to decide which area of real estate you plan to invest in. Listen to his CD and record your decision here.
I will invest in real estate
Money While You Sleep
Single family home Resource CD
Apartments
Commercial
Land
Other
Money Mastery I Diane Kennedy 3 - 21
Actiork,_ o xd?eport- i*6tion Basics 3:
Reit Estate Investment
Date started I I Date completed I_
Three good reasons for me to invest in real estate
1
2
3
The kind of real estate I will invest in
The reasons for my choice
The amount of money I am now able to commit to my real estate investments
The amount of time I am now willing to commit to studying Money While You Sleep and learn about real estate investing
Money Mastery I Diane Kennedy 3 - 22
C.
Team
Purpose Select the team of experts who will support your journey to wealth.
Tip First beware of free advice from well-meaning friends — the most costly advice of all. Second, make sure the professionals you attract understand and support your outlook and goals. Thirdly, talk to their customers before hiring them. Use the note column to record your research.
Give yourself up to 90 days to thoroughly research, evaluate and select your team.
Discipline Name Phone # Note
Insurance broker
Accountant
Corporation specialist
Lawyer
Financial planner
Estate planner
Money Mastery I Diane Kennedy 3- 23
Action,S epc,g10' Self Report ----nn Incial Team
Date started
Date completed I I
What I learned talking to potential team members
Insurance broker
Accountant
Corporation specialist
Lawyer
Financial planner
Estate planner
Any other financial team players I need
Money Mastery I Diane Kennedy 3 - 24
ActioaStep :17-0v—ef o e Your Likely Roadblocks
Purpose Anticipate the hurdles you are likely to face and make plans to get past them.
Tip Here you will look candidly at yourself and notice your strengths and weaknesses. Use your strengths for all they are worth. Find ways to work around your weaknesses, making full use of your team.
r Strength or Weakness?
if a strength: ways to leverage
If a weakness: ways to compensate
Vision, big picture thinking
Attention to detail
Record keeping
Creative income producer
Spending discipline
Able to take risk
Able to control risk
Financially educated
Money Mastery I Diane Kennedy 3 - 25
Action ie Self Re _or rco ne Your Likely Roadblocks
Date started I Date completed I I
What I learned about myself from this Action Step
My single biggest strength in the financial area
Howl can use this strength to improve my financial picture
Three ways I can leverage my team to overcome likely roadblocks
1
2
3
Money Mastery I Diane Kennedy 3 - 26
Some actions are one-off or infrequent events. Others must be repeated regularly. Were you'll find the steps that need repeated attention.
Action Note Frequency
Goal review
Goals must be frequently revisited to have any impact.
Keep recalling the reasons why you are pursuing your goal. Visualize the end result in detail. A couple of minutes a day can be enough.
Weekly
Financial statements
Check your financial health by getting your bookkeeper (or your software) to show your balance sheet, income statement and cash flow statements.
Monthly
Education
The more money you make, the more knowledge you need. So read, read, read. Attend seminars. Listen to CDs. And keep checking in at TrumpUniversity.com
Daily. 5 days a week. (A little at a time)
Money Mastery I Diane Kennedy 3 - 27
ers of Persuasion Dorian Gallo
Choose Your Project
Identify Your Strengths
Establish Your Outcome
Understand the Prospect
The Unique Selling Proposition
The Locus of Power
Prepare & Rehearse Your Presentation
Support Materials
Getting Through the Door
Make the Appointment
The Presentation & the Close
Follow-Up
• ..4.grawr Action ecy Self Re '45,„ch0
NN
se Your Project
Date started I_ I Date completed I_
My chosen project is
The challenges in this project are
The rewards for success in the project are
One past success I have had with persuading people is
Powers of Persuasion I Dorian Gallo 4 - 4
Action S ep ,
11[!' htify Your Strengths
,l am
Purpose Connect with your personal strengths to prepare yourself for effective persuasion.
Tip
When you want to persuade someone, the two most important factors are your confidence and your authenticity. This is why you do not need and should not try — to turn yourself into someone you are not.
True confidence comes from real strengths, and people can instinctively feel whether your confidence is natural or forced. This is why you begin the process by identifying your strengths, so you have them ready at hand.
You may think you know your strengths. Most people, however, have more strengths than they are aware of. It is important to take stock of yourself. More than that, you need to ask other people who know you well about your strengths. You are certain to be surprised.
Possible Areas of Strength Add freely to this list!
• Leadership • Visual communication • Courage • Creativity • Relationship • Management • Supporting others • Quick-thinking • Friendliness • Organization • Humor • Follow-through • Caring • Information gathering • Communication • Analysis • Listening • Memory • Speaking • Record-keeping • Story-telling • Technology • Writing • Numbers
Powers of Persuasion j Dorian Gallo 4 5
ari SP.r
Action Step, Self RepOit;
) it Your Strengths TIJi • <
Date started
What I learned from identifying my strengths
The three strengths of mine I most value
Strengths I discovered that I had not fully noticed before
Strengths of mine that other people identified
Date completed I
Powers of Persuasion I Dorian Gallo 4 - 6
Action .5 :ablish Your Outcome
Purpose Expand your vision for the outcome, and many possible ways to reach it.
Tip This process is designed to widen your vision of what is possible when you set out with the intention to persuade other people.
What you thought of as your outcome may be just one means to achieve the real result. For example, you could say that "getting a promotion" is your goal. In reality, the goal is "more income". A promotion is only one way to that goal. Another way could be changing your job, or starting a part-time business.
This action step will encourage you to more clearly distinguish the route from the destination.
The Outcome Process
1 Choose a wall or other large, prominent surface and assemble some different colored adhesive notes.
2 Brainstorm your objective, Write on different notes all the ideas that come to mind around this goal, and stick the notes on the wall. Do not pass judgment on the ideas, however silly or impractical they may seem.
3 Group the notes under a few main headings.
4 Now look at your ideas and ask yourself — what is the goal behind my goal, or the purpose of my purpose?
5 Writing more notes if you need to, identify at least six different ways to reach your highest-level goal.
Powers of Persuasion I Dorian Gallo 4 - 7
,,,711FT:
Action Srep 73
Self RepbritN IJIVIblish Your Outcome
Date started I_ I— Date completed 1— I
What I learned from the Outcome Process
The goal I first identified was
The higher goal behind this (the purpose of my purpose) is
Six possible ways of reaching my higher goal are
1
2
3
4
5
6
Powers of Persuasion J Dorian Gallo 4 - 8
Action .5
erstand the Prospect
Purpose Understand the needs, problems and goals of the person you seek to persuade.
Note: for simplicity, we will use the sales term "prospect" for this person.
Tip To be successful in persuading, you have to detach yourself from what you want, and get connected to what your prospect wants.
For example, if your objective is to persuade someone to part with their money, you must identify something that is more compelling to them than the money you are asking for.
The first thing to establish is what questions to ask. The second is figuring out how to get them answered. In the best case, you can ask the individual concerned directly. In other situations, you must talk to people they know, or find your answers through the Internet or other research.
Questions To Ask
Each question should be tied to the topic that is at the center of your persuasive endeavor.
• What does my prospect wish for, dream of or desire?
• What does my prospect actually need?
• What does my prospect dislike or distrust?
• What has frustrated my prospect in the past?
• What special problems does my prospect face?
• What does my prospect know or not know?
Powers of Persuasion I Dorian Gallo 4 - 9
Action StcP'411 Self ReploitUriaerstand the Prospect
Date started 1_ 1 Date completed 1 1
What I learned by researching my prospect's mindset
How I found the answers to my questions
Positives: The most significant things my prospect needs or desires
Negatives: The most significant things my prospect wants to avoid
Powers of Persuasion I Dorian Gallo 4 -
Action .5 ep, Unique Selling Proposition
Nifff
Purpose Specify exactly what it is you are attempting to persuade someone of.
Tip The Unique Selling Proposition is a classic concept used in sales and marketing. The USP has three components:
• A very precise description of what you are offering • An unmistakable benefit to the recipient • Something unique or compelling about the offer
The key to the USP is matching what you have to offer with what the recipient needs and desires. To identify the benefits, imagine yourself as the prospect receiving and making use of your offer.
Uniqueness can be created in many ways, even when the product or service is not especially unusual.A uniquely positive way of doing business can give you sufficient distinction.
Some Ways to Create Uniqueness
• Understand the other person's needs, interests, challenges and goals better than most people do
• Provide more support, service, help or follow-up
• Be easier to deal with — more pleasant, quicker in response, clearer in communication
• Create a finer packaging, look or presentation
Powers of Persuasion I Dorian Gallo 4. 11
, ,,;. Action SteA511 Self Replo'rt.-
1.A Unique Setting Proposition !,, NM II
Date started _ I Date completed
A short, precise description of what I have to offer
How the recipient can benefit
How what I have to offer specifically meets the needs or desires of the target
One way my offer is unique — or can be made unique
Powers of Persuasion j Dorian Gallo 4 -12
Action Locus of Power
Purpose Find who is truly the decision maker, and who influences the decision maker.
Tip It is usually clear who your primary target is — the jewelry buyer for a major chain store, the loan manager of a bank, your boss, your prospective client... In almost every case, however, this one person will be surrounded by others who have some influence and even control over the decision.
The "locus of power" is the central point where real decisions are made. Identifying this point, and the network of influences that surround it, is a vital step in the persuasion game.
In a corporate situation, the influences are often higher up in the organization — but not always. You can win over the CFO only to discover that she feels obliged to defer to her marketing director. In other situations, people are influenced by friends, spouses, colleagues, even their children. Decisions are rarely as uniquely individual as they appear.
Once you have identified the key influencers, you need to research what their needs, desires and challenges are — just as you did your prospect's.
Influencers: A Partial Checklist
• Board of directors
• Friends
• Senior executives • Spouse
• Colleagues in other departments • Children
• Significant subordinates • Neighbors
• Community leaders • Press and media
• Respected professionals (doctors, etc.) • Consultants
Powers of Persuasion I Dorian Gallo 4 - 13
427 .- Action Segit Self Rfp 'ir'-',i'ripiels)Unique Selling Proposition 01-- P 1:.
NICK
Date started _ I I Date completed _____ I I—
What I learned from researching the locus of power
Key influencers who might impact my prospect's decision
Important needs, desires and challenges of the influencers
Powers of Persuasion I Dorian Gallo 4 - 14
Action -4V1 1 oN,
& Rehearse Your Presentation
Purpose Script your presentation and rehearse it with friends and colleagues.
Tip
By the time you meet your prospect, you should know exactly what you are going to say, Better than that, you should have anticipated as many objections to your offer as possible, and planned your response. You should be so well rehearsed that you cannot be thrown off balance by any manner of challenge to your presentation.
Rehearsal Points
1 Questions. Plan how you will create a receptive state of mind by asking open-ended questions, such as "What are your current plans in this area?" or "Have there been any new developments since we last spoke?" or "What are the challenges you are facing right now?"
2 The pitch. Script your story — then shorten it. See how concise and precise you can make it. Rehearse until it flows naturally off your tongue.
3 Objections. Identify all the possible objections, then choose friends or colleagues who will challenge you vigorously. Rehearse with them interrupting you with objections. Remember a presentation is not an argument. Respond to objections with questions, not rebuttals. For example, if the objection is price, ask "What more would you expect for this price?" or "What price would make sense to you?"
Powers of Persuasion I Dorian Gallo 4 - 15
Action Stm . „. Self Reod; & Rehearse Your Presentation
Nri Date started I Date completed I
What I learned from planning and rehearsing the presentation
Open-ended questions I prepared
My success in making my pitch shorter and more precise
Objections I anticipated
What I learned from rehearsing with friends and colleagues
Powers of Persuasion I Dorian Gallo 4. 16
7
Action .5
Purpose
Tip
Oport Materials
11
Create support materials to generate interest and prepare your prospect to be persuaded.
By the time you meet your prospect, you want him or her to be intrigued, curious and positive about your offer. The way to achieve that is to create materials that are designed to stimulate maximum interest. These might include anything from a colorful postcard to a full-blown PowerPoint presentation.
These materials can be sent ahead of you, or taken with you, or both. They can prepare the ground for your persuasive conversation, and give you more authority at the time.
A good example is given in the audio CD, Money While You Sleep. When seeking a loan for real estate investment, DoIf de Roos suggests you go beyond filling in the bank's forms and create a "Proposal for Finance" —complete with an attractive picture of the investment property.
Examples of Support Materials
Sent ahead • Sales letter • Colorful "teaser" postcard • Surprise 3D gift, relevant to the subject
At the event • Presentation book • Flip chart • PowerPoint presentation • Product samples
Powers of Persuasion I Dorian Gallo 4 - 117
Action Self Rep
Pe" ,port Materials )1, O
Date started I I Date completed
What I learned from creating support materials
Skills I have that I can use to create materials
Skills I need to find in other team players
Materials most appropriate for my current project
Powers of Persuasion I Dorian Gallo 4 - 18
Ti:177
Action 0).
Purpose
Tip
.,Jeling Through the Door 5,1
Find a way to reach your prospect.
In the business world, people increasingly use technology, such as voicemail and spam blockers, to protect themselves from people who are seeking to pitch their products or services. You often need a strategy simply to get through the door.
There are two aspects to the strategy. One is the effective use of communication tools to contact your prospect. You may need to use many tools in creative ways to get through.
The other tactic is to win friends and allies in close proximity to your prospect. Be careful when developing relationships with these allies to avoid using them disrespectfully. Always express gratitude and take a genuine interest in their needs.
Communication Tools to Reach The Prospect
• Phone • Fax
• Overnight delivery
• Email • Mail
• Courier service
Possible Allies
• Secretary • Receptionist • Personal assistant • Respected vendors • Significant customers
• Consultant • Superior executives • Colleagues • Friends • Spouse
Powers of Persuasion I Dorian Gallo 4.19
Action Stegoi Self RepdittG
,P) I \Nilo
mg Through the Door
Date started I— I— Date completed
Challenges 1 have faced in getting through the door (with this project, or in previous situations)
Communication tools I have used, or plan to use
Potential allies who could help me
Needs, wishes and problems of my potential allies
Ci
Powers of Persuasion I Dorian Gallo 4 - 20
1
Action Si
Purpose
Tip
VI„iljp the Appointment
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Make the appointment in a way that helps you prepare effectively.
The call when you make your appointment is more than a formality. It is an important step in building your relationship with the prospect. This is an opportunity to find out how to effectively prepare for the presentation. You actually enroll the prospect in helping you be successful.
During the call, the prospect may try to short-cut the presentation by getting the pitch from you over the phone. If at all possible, deflect such questions by saying: "I'm looking forward to explaining that in detail at our meeting.”
Note that you must be ready to revise your script and materials after the appointment call. When you have already invested a lot of time and effort in your preparation, you may be tempted to skip this step. Don't! Be sure to update everything.
The Three Steps of Making the Appointment
1 Agree on a time and date.
2 Tell the prospect briefly what you will be talking about, and ask what he or she will wish to know. Ask what specific materials or information will be helpful.
3 Review, revise and refine your presentation script and your materials in response to the call.
Powers of Persuasion I Dorian Gallo 4 - 21
Action Step, Self Repbk, e the Appointment
Date started
Date completed
What learned from the appointment call
New information or materials my prospect asked for
How I changed my pitch and materials
Powers of Persuasion I Dorian Gallo 4 - 22
35111 ' Action Sep{
resentation & the Close
1-10/
At the presentation, maximize your chances of getting a positive result.
You will learn most about presentation skills by frequent and challenging rehearsals — and of course from experience in real situations.
111
Purpose
Tip
There are certain specific skills you can focus on when you practice.
Key Skills for Presentations
1 First check the terrain. Ask how your prospect's day has been, or a similar question to test the mood. Know what you are "speaking into." If the prospect is unusually stressed, rushed or upset, it may be wise to postpone the presentation.
2 Keep your pitch short, energetic and interesting. Let the prospect feel your enthusiasm and see the thoroughness of your preparation.
3 Stop and listen. Repeat back what the prospect says to you, to indicate you have heard or be corrected if you have misunderstood.
4 Get up-to-date on the competitive situation. Ask what alternative solutions the prospect is reviewing.
5 To get a decision you don't need special closing techniques or skills. Focus on the practical process of completion. Ask questions such as "What else needs to happen in order for us to come to an agreement?"
Powers of Persuasion I Dorian Gallo 4.23
Action S' ep,i4 Self Repoli-'
-
Date started I I
resentation & the Close
Date completed
How I evaluate my presentation on a scale of 1 --10
To achieve a 10, I needed to
How well did I check the mood and the current situation?
How precise and effective was my pitch?
How well did I listen and repeat back what I heard?
How effectively and calmly did I handle objections?
How well did I focus on practical steps to completion?
Powers of Persuasion Dorian Gallo 4.24
Action .5 6,13
0.pw- U p
N\11%
Purpose
Tip
Follow-up with the prospect and build your relationship for the long term.
In the world of sales, most failures and missed opportunities can be explained by lack of follow-up. The same principle applies to all persuasive situations. Just because you didn't achieve an immediate result does not mean the story is over. Whatever the result of your presentation, you now have a closer relationship with the prospect. Build on that relationship, and new opportunities may arise months or even years later.
By the end of the presentation, you will probably have arrived at one of three outcomes in your presentation: a "yes," a "no" or a "maybe." Each requires its own type of follow-up.
Follow-Up Guidelines
If "Yes" Thank the prospect for the opportunity. Follow up to ensure actual completion on the agreement. Stay on top of the process.
If "No" Thank the prospect for his or her time. Ask if there is a time in the future (say six months away) when you might reconnect.
If "Maybe" Develop the conversation about the prospect's goals and challenges. Ask questions to discover what will meet his or her needs.
Powers of Persuasion I Dorian Gallo 4 - 25
Action Sep Self RepOrt' :Tow-U p
< _
Date started I
Date completed I I
The result of my presentation was:
"Yes"
"No"
"Maybe"
My immediate follow-up actions are
Future follow-up actions will include
What I have learned from focusing on follow-up
Powers of Persuasion I Dorian Gallo 4 - 26
Ongoing 1(1579
Some actions are one-time or infrequent events. Others must be repeated regularly. Here you will find the steps that need repeated attention.
Action Note Frequency
New Projects
It is essential to practice the entire cycle of steps. One time through is not enough. Different persuasion challenges will exercise different skills. Look out for opportunities, or invent them!
As often as possible
Shrink the pitch
Practice creating a pitch and shrinking it to 30 seconds -- the length of a TV ad. Any imagined project will do: selling your car, applying for a job, getting a date...
Weekly
Repeat what you heard
Repeating what you heard is a listening skill that you can practice at any time. It has immense power to improve communications and strengthen persuasion.
Daily
Follow-up
Every time you make a serious attempt at persuasion, see yourself at the beginning of a journey with this person — whatever the outcome. Maintain a discipline of regular, friendly and valuable follow-up communications.
Create a cycle of communication: weekly, monthly, or whatever interval is appropriate
Powers of Persuasion I Dorian Gallo 4 - 27
areer .czs Champion
Les Hewitt and Chris Lewis
Plan Your Career
Focus on Strengths
Mentorship
Essential Skills
Leadership Feedback
Public Speaking
Make Connections
Making the Boss a Star
Create Added Value for the Company
Bea Volunteer
Establish Core Values
Your Goals and the Company's
to expect from this program
By studying this program, you will develop the ability to take control of your career and map out a pathway to success within the corporate world. You will know your precise objectives, and you will begin to acquire both the skills and the connections required to achieve them. Equally important, you will have a clearer understanding of how your values and goals fit with those of the company you work for.
If you're an entrepreneur, studying this program will help you better understand the world where many of your clients or customers work.
My Outcome
I am studying Career Champion because
My strengths in this subject include
Topics where I can most strongly focus include
My 90-day outcome from studying this segment is
Career Champion Les Hewitt and Chris Lewis 5 - 2
Action Step
areer
Purpose Define your objectives, not just in your current job but for your entire career.
Tip If possible, spend an entire weekend away devoted to thinking about your future. Set aside the current issues and irritations of your job — they'll still be there when you get back to the office. Focus on what is most important to you, professionally, financially and personally. Dare to think outside the box, and think big. Once you've established your main goals, lay out the key steps to reaching them. Set specific targets for the next five years.
Use the questions below to start the process.
'I Which activities give you the most joy, interest and sense of fulfillment?
2 Which professional achievements to date are you most proud of?
3 What motivates you to work, apart from money?
4 What do you most like about your present job, and what most frustrates you?
5 Thinking about promotion, what higher level of appointment would meet these criteria?
• Exciting • Challenging • Attainable
6 Name three companies where you believe you would enjoy working.
7 What is the contribution you most wish to make to the corporate world?
Career Champion I Les Hewitt and Chris Lewis 5 -3
Greer Action Step Self Reportppi,
".
Date started I
Date completed ___ I— I
What I most learned about myself from this process
What I learned about my current situation
My vision for my ideal job
Where I plan to be professionally
One year from now
Three years from now
Five years from now
My income goals for each of these milestones
One year from now
Three years from now
Five years from now
Career Champion ` Les Hewitt and Chris Lewis 5 - 4
Strengths
Purpose Discover how much of your time is spent using your core strengths.
Tip Success in the corporate world depends on how far you can apply your gifts and energy to the greater good of the company you work for. Therefore it is essential to know what your strengths are and how you are utilizing them in your job. Here's how to recognize a strength and when you are using it.
• You are most energized • You are most productive • You are most fulfilled
Know Your Strengths
Using the criteria above, list your three key strengths
1
2
3
Calculate Your Focus Level
Take a typical week and write down every activity or function that you perform at work. Be specific — for example, if you attend meetings, say what the typical meeting is about. If you are on the phone a lot, list the types of people you talk to. Estimate the time spent on each activity. Check each activity against your strengths, and ask if this activity primarily draws on your strengths.
Calculate the percentage of your time spent using your core strengths. That's your focus level.
Career Champion I les Hewitt and Chris Lewis 5 - 5
Action Step 2 Self Report FO rengths
Date started 1— Date completed I_
What I learned by identifying my strengths
What I learned from writing down all my activities in a typical week
The percentage of time I spend using my strengths
Three steps I can take immediately to increase this percentage
1
2
In my current job is it possible to eventually raise the percentage to 80+%:
Yes No
if the answer is "no", take time to identi fy at least three other companies where the answer might be "yes" — or consider a complete change of career.
Career Champion I Les Hewitt and Chris Lewis 5 - 6
Action Step 3
Purpose Find a mentor and become one.
Tip However high you rise you can always benefit from a great coach, as every great sports star will testify. At the same time, it's never too early to start sharing what you know with someone less experienced. So for a leader, mentorship is a two-way business.
Your own mentor might be a senior executive in your company, or someone outside — a retired executive, a leader in your industry, or a professional coach. The important thing is to find someone who is willing to challenge you as well as support you. Strike the same balance when you play the role of mentor.
Use the table below to help your search. You may be surprised to find potential mentors where you hadn't considered looking.
Potential mentors
Executives in the company I work for
People I especially respect outside the company
Sources for professional coaches
Career Champion I Les Hewitt and Chris Lewis 5 - 7
Action Step 3 Self Report ivie
e
Date started I Date completed 1_
What I learned from focusing on mentorship
The mentor I have chosen is
I am committed to meeting my mentor (by phone or in person) every weeks
What I seek to gain from the coaching includes
The first person I have offered to coach is
What I will help this individual achieve includes
Career Champion I Les Hewitt and Chris Lewis 5 -8
Action Step 4.
Purpose Identify at least one skill you can acquire or strengthen that will advance your career.
Tip It's great to learn new skills, but sometimes you can get more leverage by strengthening a skill you already have. You can ask yourself: "What skills would enable me to do my current job more effectively?" More powerfully, you can revisit your five-year career goal and ask: "What skills will enable me to do my future job more effectively?"
Skills Checklist List skills of possible value to your career in the right-hand column
Management skills
Technology skills
Communication skills
Financial skills
Marketing skills
Other skills
Career Champion I Les Hewitt and Chris Lewis 5 - 9
Action Ste p 4 Self Report Es. dits
Date started Date completed 1 I
What I learned from completing this action step
Current skills I can improve on to expand my opportunities
New skills I need to develop that will expand my opportunities
The one skill I will focus on first
How I plan to develop this skill
Career Champion I Les Hewitt and Chris Lewis 5 -10
Action Step 5` Lea Feedback
Purpose Invite an objective and honest assessment of your leadership abilities.
Tip Don't expect to find this exercise easy. If you see yourself avoiding it, listen again to Dr. Burns on the Mindset for Success CD. The most important part of the exercise is this — when you receive your feedback, make no effort to defend yourself against criticism.
When it is your turn to offer feedback, provide a model for giving positive feedback. Instead of saying "This is what you did wrong," say "Here's something you could do better."
If you are not currently leading a formal team, ask a small group of colleagues for feedback about two essential leadership qualities — your ability to communicate and your teambuilding skills.
How To Ask for Feedback
Ask a simple question, such as "How did I do as a leader this week?" Request a rating from each person in the group, on a scale of 1 — 10. For each number less than 10, ask "What would I have needed to do for you to have given me a 10?"
When this is complete, offer your rating on the team's performance. First invite the team to rate itself, including the question "What would we have needed to do to give ourselves a 10?" Then give your own rating and feedback. Rate the team as a whole, rather than individually.
Career Champion I Les Hewitt and Chris Lewis 5 -11
Action Step 5 Self Report Let feedback
Date started ____
Date completed _ I_
What I learned about my leadership abilities from the feedback
How I felt while doing this exercise
Changes I am committed to making as a result of the feedback
What 1 learned when giving feedback
Career Champion Les Hewitt and Chris Lewis 5 -12
Action Step
Purpose Gain confidence and competence in public speaking.
Tip If you've already tackled this skill in Action Step 3, all power to you. If not, now is the time.
You need to master public speaking for many reasons. Making formal speeches is probably the least important. When you stand up in front of any type of audience you test your confidence with people, your ability to articulate a message, and your capacity to "feel" the unspoken response that others give you. All these skills are immensely useful in corporate life, whether you are leading a project team, presenting to clients, handling public relations or, one day, chairing the board.
Ways to Learn Public Speaking
• Join a local group dedicated to teaching and practicing public speaking (Toastmasters, for example, in the United States)
• Join an "improv" class — an amateur group that trains in improvised acting
• Attend a seminar on presentation and training skills
• Find and hire a professional speaking coach
Career Champion I Les Hewitt and Chris Lewis 5 -13
avrtS- ,„„z!'
Action Step Self Report Aking
Date started 1_ Date completed I
What I have learned since beginning to practice public speaking
How my anxieties about public speaking have changed
How these new skills are helping me now
How these new skills can help me in the future
Career Champion I Les Hewitt and Chris Lewis 5 -14
Action Step 7
Purpose Build a network of allies in your organization.
Tip Your career advancement depends on other people. Winning their support requires you to make yourself known, in a positive way. This isn't just about self-promotion. It's about taking a genuine interest in other people's goals and challenges, and being of help wherever you can. Remember to build support among people lower down in the organization as well as higher up. Also, look outside to community and professional organizations.
During the next 90 days, commit to finding at least three individuals in each of these zones: higher up in the company, lower in the company, and outside the company. Make yourself known to the individual(s) — and make yourself useful.
In the same period, join at least one professional organization and one community or charitable organization. Be an active member, not just a name on the books.
People to connect with
Higher up in the company
Lower in the company
Outside the company
Career Champion I Les Hewitt and Chris Lewis 5 -15
Action Step 7 Self ReportIOW n#ctions
Date started
Date completed
What I learned about myself from the effort to make connections
What has surprised me about the experience
Ways I have begun to contribute to my new group of business contacts
Some things these people have taught me
Career Champion I Les Hewitt and Chris Lewis 5 -16
Action Step 8,'"
Purpose Look for ways to increase the success of your immediate superior.
Tip One of the most powerful ways to achieve success in the corporate world is to build the success of others. In most cases, they will recognize and appreciate your effort and carry you up with them as they rise. The trick here is to set your ego aside for a while, and let the accolades and rewards go to your boss. You will become indispensable, and your name will increasingly be linked with success. When the individual you have supported achieves a significant promotion, and has the power to make appointments, who will he or she turn to first?
Questions to ask yourself about your boss
What is my boss's top priority?
• Increased sales • Decreased costs • Higher margins • New leads and customers • A particularly demanding client • A specific project or product development • Something else...
What is his or her primary career ambition?
What would get my boss the most recognition and reward?
Where is he or she vulnerable to failure or criticism?
What extra support can I give directly to my boss?
How can I encourage others on the team to support my boss?
Career Champion] Les Hewitt and Chris Lewis 5.17
Action Step 8 Self Report ivi4
e'
Date started I_ I_ Date completed I I—
What I learned from focusing on my boss's career goals
How I felt about focusing on making someone else successful
Specific ways I identified to help make my boss a star
The first action I am taking to help my boss succeed
Career Champion I Les Hewitt and Chris Lewis 5 - 18
Action Step Urea Value for the Company
/
Purpose Identify ways to increase the success of the company you work for.
Tip The point of this action step is to go the extra mile and contribute more to the company than you are currently being paid for. In effect, you assume (at least in your thinking) a higher level of responsibility for the company than you currently have. In this way, you prepare for the reality of acquiring a more responsible position — and make it more likely.
The corporation you work for is in business to make profit, and the two primary ways to increase profit are to raise revenues and decrease expenditures. Your task, within the constraints of your current position, is to review how you can support either of these outcomes. Your contribution at this stage might seem small or indirect — but if you keep a constant focus on these objectives, no matter what your formal job, you will see progress in your career.
Increase Revenues
• Increase leads and prospects • Increase prices • Increase number of sales • Increase sales per customer • Launch new products and services
Decrease costs
• Lower production costs • Lower marketing costs • Lower distribution costs • Lower administrative costs • Reduce other expenses
Career Champion I Les Hewitt and Chris Lewis 5 - 79
Action Step Self Report cre alue for the Company
Date started 1,_ Date completed
What I learned from focusing on the company's profitability
Ways 1 can contribute to increasing revenues, beyond my routine work
Ways I can contribute to decreasing expenditures, beyond my routine work
Career Champion I Les Hewitt and Chris Lewis 5 - 20
Action Step lb, Self Report Bel
Purpose Spend time and energy doing volunteer work.
Tip It's a paradox: one of the ways to get rich is to work for no money. By volunteering, you mark yourself as a person who contributes more than he or she takes. That happens to be one of the principal qualities of a true leader, so it helps position you for advancement. Giving of your time also establishes that you have values and interests that go beyond money, another leadership trait.
Volunteering brings you into contact with a new circle of people, in a different context, and the connections can serve you well. In addition, you can take on responsibilities and tasks that stretch your abilities, whether in a specific skill or in management. So you can use volunteering as a training tool.
Opportunities to Volunteer
Business-related • Projects outside your department that need extra hands
or talent • Training others in your specialty • Support a professional or trade association • Support a company club or association
Charity-related • Participate in a company-sponsored charity • Help a national or local non-profit • Lecture or coach at a local school or college
Note: If an attractive volunteer opportunity, like a company-sponsored charity, doesn't exist — why not instigate it?
Career Champion I Les Hewitt and Chris Lewis 5 - 21
Action Step Self Report B
41'
Date started I 1
Date completed I I
What I learned about myself from volunteering my time
How I feel about working without monetary payment
Possible ways to volunteer my time in the business context
Charitable or educational volunteer opportunities that attract me
Career Champion I Les Hewitt and Chris Lewis 5 - 22
Action Step Eska` ore Values
Purpose Put your core values in writing.
Tip We all have basic values, but for many of us they are unspoken assumptions. The purpose of this action step is to make you conscious of what your values are. While unspoken values serve us well in most situations, there are times — especially in corporate life — when what we stand for is suddenly put to the test. This is when it helps to have complete mastery of our values.
Record those values that are most important to you. Values that merely sound good will collapse when tough decisions must be made. Remember, this record of your values is for your eyes only.
Use the key words and phrases to prompt you in identifying your values. Add your own key words in the blanks.
Value Key- Words
Relationships Work
Family Money
Community Truthfulness
World Integrity
Environment Spirituality
Write down on a 3 x 5 card four or five core values you absolutely refuse to compromise. Have the card laminated and carry it wherever you go.
Career Champion I Les Hewitt and Chris Lewis 5 - 23
Action Step hr4, --' Self Report ore Values
Date started I_ Date completed I
What I learned from this exercise about my values
Values that are more important to me than I realized
A time recently when my values were tested
Career Champion I Les Hewitt and Chris Lewis 5 - 24
The Company Me
Goals
Values
Action Step 1,?,
ya a s-7:4nd the Company's 7 Z.
Purpose Discover where your goals and values match those of the company — and where they don't.
Tip You can learn a great deal by taking time to compare your goals and values with those of the company that employs you. It is highly unlikely you will find a complete match, but there should be a significant overlap. If there is, identifying the common ground can strengthen your commitment to your job. As you begin to look on your employment more as a partnership, you will adopt the outlook of a senior executive — and prepare yourself for becoming one.
If you discover that your goals and values and those of the company are incompatible, it's time for you to make some tough choices. Remember, your career is larger than one particular job. Your career is your destiny.
Career Champion I Les Hewitt and Chris Lewis 5 -25
Action Step 2V Self Report yo
Date started I Date completed I ,
What I learned from comparing the company's goals and values with my own
The most striking similarities between the company's goals and mine
The most striking similarities between the company's values and mine
The most striking difference between the company's goals and mine
The most striking difference between the company's values and mine
How I feel about remaining with this company after doing this action step
Career Champion I Les Hewitt and Chris Lewis 5 - 26
Ongoing Actions,
Some actions are one-time or infrequent events. Others must be repeated regularly. Here you'll find steps that need repeated attention.
Action Note Frequency
Goals
Keep your career goals in focus — write them on a card, laminate it and carry it with you. Review the goals and see them completed
Daily
Values Like your goals, your values need to be continually impressed in your mind. Use your laminated card.
Daily
Reflective Thinking
You have endless meetings with other people. Schedule one with yourself, to think about your current job and your long-term career plan
Weekly
"State of the Project"
If you are a team leader, hold a regular meeting to update the team on the big picture and on progress toward team goals
Monthly
Focus on Strengths
Action Step 2 is so important it should be repeated regularly. Also, sometimes conduct a Focus on Strengths exercise with your team to match the best people with the right jobs
Monthly
Career Champion l Les Hewitt and Chris Lewis 5- 27
Jeff Burrows
usiness nd a Life
Create the Vision
Steps to Reality
The Three Personalities
Create Systems
Organizational Structure
The Position Agreement
The Art of Accountability
Employee Development Meetings
Guerrilla Market Research
Treat Your Job as a Business
Create a Stop Doing List
Prosperity Consciousness
xpect from this program
This program will introduce you to the sound principles that create a successful — and satisfying — enterprise. Starting and running a business involves many disciplines and of course you will need to study widely beyond this program. In 90 days you can expect to have understood, practiced and begun to master the core principles.
Note: Adapt each action step according to where you currently are in the entrepreneurial process.
My Outcome
I am studying Own a Business and a Life because
My strengths in this subject include
Topics where I can most usefully focus include
My 90-day outcome from studying this segment is
Own a Business — and a Life I Jeff Burrows 6 - 2
Purpose Establish your vision for the business you own or plan to create.
Tip Donald Trump says "think big" — and he also advocates strict realism. A powerful business vision is both large and precise. Use the questions below to formulate a one-page vision statement. Give the answers in note form here, then expand the notes into a paragraph. Spend time on the first draft — leave it and come back to refine it. Then share it with everyone involved in your business.
What business are you in?
Who are your customers or clients?
How will they benefit from your business?
What is unique about your product or service — and/or the way you will deliver it?
What are the core values of your business?
What are your goals?
Own a Business — and a Life I Jeff Burrows 6 - 3
Date started I—
Date completed I_
What I learned from creating my business vision
What I felt while creating the vision
Stakeholders I will share the vision with include
Own a Business — and a Life I Jeff Burrows 6 - 4
Purpose Identify the steps you need to take to turn your vision into reality.
Tip Here you will identity some of the areas you need to study and act on beyond the scope of this program.
Conduct a feasibility study Find ways to test the viability of your product or service. Do enough people really want it? Will they pay enough to make it profitable?
Build your support team
Create a team of professionals, starting with the financial team introduced in the module Money Mastery. Find advisors and mentors who know your market — offer them future financial participation if need be.
Write a business plan
Use a well-reviewed software package for creating a business plan, read how to do it, or get a mentor to help. If you are planning to raise investment capital, get professional legal advice on what must be included in your plan.
Raise the money
Explore ways to use leverage —other people's money — being sure your approach is ethical and legal. Look beyond venture capitalists to government sources, potential vendors or customers, and friends or family.
Own a Business — and a Life I Jeff Burrows 6 - 5
Action Self Rept) s to7Reality
Date started I I_ Date completed
What 1 learned about the feasibility of my business idea
What my support team has contributed so far
What I learned from writing my business plan
How I am raising the capital
Own a Business — and a Life I Jeff Burrows 6 - 6
ree Personalities
Purpose Understand the three "personalities" of the entrepreneur and know how to work with them.
Tip As business owners, we each have three personalities: the entrepreneur, the manager and the technician. The balance between them is different for each individual. Use this exercise to learn about yourself, and how to make the best use of your own characteristics.
Rank these statements in order, according to how true they are for you, ranking the truest at 1 and the least true at 3.
Rank
A I'm happiest when I'm busy using my professional skills
B I love to organize things and work with systems
r. '
I'm a big-picture person: I see the vision and get impatient with details
If A is your highest, your dominant personality is Technician If B is your highest, your dominant personality is Manager If C is your highest, your dominant personality is Entrepreneur
To lead a company, you must make the Entrepreneur first. If you aren't naturally an entrepreneur, you can learn to become one. Take these steps
1 Listen several times to the CD Own a Business and a Life
2 Read extensively and study entrepreneurship. Attend seminars and events where you can get to know other business owners — become part of the entrepreneurial culture.
3 As soon as possible, delegate the technician and manager functions in your business to other people.
Own a Business — and a Life I Jeff Burrows 6 - 7
Action Self RI '0'0 tee Personalities
Date started I Date completed I
What I learned from studying the three personalities
My dominant personality is
My second personality is
My least developed personality is
My plan to develop my entrepreneurial spirit is
Own a Business — and a Life 1 Jeff Burrows 6 - B
Purpose Understand that each job someone does should be based on a written system.
Tip This principle is so fundamental you should master it before you hire anyone. If you are currently employed, use your own job to learn from. Whatever you currently do, record the system for that job: a manual on how best to do every key function. Then, if you have anyone working for you now, help that individual write the system manual for their job. Use the template below to get yourself started.
Job title
Brief description of the function Key points for system manual
Function 1
Function 2
Function 3
Function 4
Function 5
Own a Business — and a Life I Jeff Burrows 6 - 9
Action(S Self Repp 'reateSystems
Date started I I Date completed I I
What I learned from writing the system manual for my own job
How my job performance improved as a result of writing the manual
What I learned from showing my employee(s) I subordinate(s) how to write a systems manual
Own a Business — and a Life 1 Jeff Burrows 6 -10
Action (S r anizational Structure
Purpose Create an organizational structure.
Tip The organizational structure shows how all the different systems fit together to create the whole company. Each function has its own place in the structure — it can not be based on people. When you're starting a business, many jobs are done by a few people or just one. It is still essential to write down the structure so that later you can move out and let others take over the different functions.
A typical organizational structure for a start up is shown here. Adapt and add to it for your business.
Function Title Mission Who
Leader CEO Provide the vision, the capital and the spirit
Me
Production Director of Production
Manufacture our product
My brother
Marketing Director of Marketing
Understand
demand for our product
Me
Sales Director of Sales Sell as many of our products as possible
Me
Finance Chief Financial Officer
Ensure the
financial health of our company
Me
Human resources
Director of HR Attract staff and care for their well-being
My spouse
Own a Business — and a Life I Jeff Burrows 6 -11
aifilational Structure
Date started I Date completed
What I learned from creating my organizational structure
What I would gain from hiring others to fulfill some of these functions
Which functions I could begin to give to other people
Own a Business — and a Life I Jeff Burrows 6 -12
osition Agreement
Purpose Learn how to create a position agreement by writing your first one.
Tip The position agreement is not a conventional job description. There are two key differences.
1 The position agreement is about the results of doing the job, not the systems required.
2 The position agreement is a signed commitment to the entrepreneurial, managerial and technical work required to achieve the results.
First write a position agreement for your own current job — and sign it! Then write a position agreement for each key function from your organizational structure in Step 5 above. Remember, there must be a position agreement for every function.
Sample position agreement result statements
Position Agreement For:
Position Title: VP Administration
Result Statement: 1 am accountable for producing the following results:
To retain long-term, ideal clients for the company through the creation and implementation of money, fulfillment, delivery and information technology systems that fulfill the company's financial and strategic objectives, marketing promise, and agreement to clients.
Reporting Positions: These positions report directly to me and are accountable for producing the indicated result, with my guidance and support, as their manager.
Position: Manager, Finance Position: Manager, Client Fulfillment Position: Manager, Information Technology Position: Manager, Customer Service
Own a Business — and a Life I Jeff Burrows 6 -13
Action Self Repot- sition Agreement
Date started I— l Date completed
What I learned about my own job from writing the position agreement
Discoveries I made about my business by writing position agreements
for each key function
Own a Business — and a Life I Jeff Burrows 6 -14
of Accountability
Purpose Review how employees are currently held accountable.
Tip This action step is a reality check. It gives you an insight into how you are currently holding accountable the people you pay to support your vision.
If you are not yet operating your own business, use the same exercise to find out how you are held accountable —by those you work for, and by yourself.
Accountability checklist
❑ Does each employee have a position agreement he or she can be held accountable for?
❑ How is this employee's performance monitored?
❑ Specifically, how is this employee held accountable for results?
❑ How often is there a formal evaluation or assessment of progress?
❑ How is the employee evaluation process linked to the employee's own career and personal aspirations?
Own a Business — and a Life I Jeff Yurrows 6 -15
Action iSig Self Repo' -of Accountability
Date started I I
Date completed I_ I—
What 1 learned from reviewing our accountability process
How the company could benefit from an improved accountability process
How the employee could personally benefit from an improved accountability process
Own a Business — and a Life I Jeff Burrows 6 - 16
A ction (-Ste ployee-Development Meetings
Purpose Learn how to plan and manage an employee development meeting.
Tip
This is how you hold employees accountable for the
position agreements they have signed. The keys to success here are
1 Focus on results not activities
2 Build the employee's sense of contribution to the company mission
3 Help develop the employee's career as well as their usefulness to you
If you don't yet have employees or subordinates, conduct an employee development meeting with yourself. Adapt this draft agenda for your particular circumstances.
Employee Development Meeting Agenda
Employee Position
Key results sought, per the position agreement
1 Recent successes in creating results
2 How those successes were achieved
3 Opportunities to improve results
4 Key learning since last EDM
5 Personal and career development points
6 Specific goals to achieve before next EDM
Own a Business — and a Life l Jeff Burrows 6 -17
Action;Ste Self Report mployee-Development Meetings
Date started I— I— Date completed I I
What I learned from conducting the employee development meeting
How the company has benefited from this meeting
How the employee has benefited form this meeting
How I will improve the way I conduct my next employee development meeting
Own a Business — and a Life I Jeff Burrows 6.15
ActionStep usrrata, Market Research
Purpose Review how market information is currently acquired, and
create new ways to find out about customers.
Tip You don't need to hire an expensive market research firm
to learn more about your customers and clients.
Technology — and a little imagination — can yield rich
information about who buys, who doesn't and why.
Market data required: checklist
Covered now
To do N/A
Age
Gender
Economic status
Geographic distribution
Relevant desires
Relevant needs
Relevant dislikes and anxieties
Relevant frustrations (e.g. with competitors)
Level of relevant knowledge
Market data acquisition methods: checklist
Covered now
To do N/A
Regular customer satisfaction surveys
Record keeping of customer data by customer service personnel
Data acquisition built into transaction systems, such as tills
Low-cost online surveys of potential customers
Prospects who don't buy: follow-up process to interview non-buyers
Own a Business — and a Life i Jeff Burrows 6 -19
Action f.Ste Self Repor a- Market Research
Date started I Date completed I
What I learned from the marketing data checklists
Information about our customers it would be especially useful to know
How I plan to acquire this information in future
Own a Business — and a Life Jeff Burrows 6- 20
afi Your Job as a Business
Purpose If you are currently employed, reframe your job as an entrepreneurial business that you own.
Tip This exercise will make you more successful in your job
and give you powerful training for when you start your
own business. You can apply almost every facet of the
entrepreneurial process to your new "business" — except you won't have to raise any money! Have fun with this
exercise, which will teach you a lot.
From Job to Business
The name of my business:
My title as leader:
The business vision:
Business goals for the next 3 months:
Own a Business — and a Life I Jeff Burrows 6 - 27
Action (Ste Self Reii.Or our Job as a Business
Date started I I Date completed
What I learned about my job from this exercise
How treating my job as a business has improved my job performance
How this Action Step relates to information in the Career Champion audio CD
How I will apply this experience if and when I have my own business
Own a Business — and a Life I Jeff Burrows 6 - 22
reate a =Stop Doing List
Purpose Cure yourself of busy-ness and free your time to build your enterprise.
Tip Entrepreneurs tend to be attached to controlling all the details. This can prevent you from working on the big picture, and limit the growth of your enterprise. If you own a business, you probably don't need any discipline to make yourself work. You do need a lot of discipline to stop doing things that are not productive.
How to Create Your Stop Doing List
1 Listen to the audio CD, Career Champion. It includes a powerful exercise that identifies what you do in the day, and how that matches (or fails to match) what you are best at.
2 List the activities you currently do that could be done by someone else — someone who is not the leader and visionary for your company.
3 Select the activity from this list that consumes the most time. Ask yourself: "Have I written the system manual on how I do it?" If not, make a commitment to write the manual. Set a timeline.
4 Find someone to train, using your system manual.
5 You may be telling yourself, "But I'm the best at this" — and that's your excuse for continuing the activity. Recognize that the technician or manager in you is fighting the entrepreneur. Ask yourself this key question:
"Do I want to own a job or a business?"
Own a Business — and a Life I Jeff Burrows 6.23
Action ;Ste p..11.............. Self ROW- reate:aStop Doing List
Date started I_ I_ Date completed
What I learned from this exercise about how I spend my time
Question: How far is my thinking and behavior led by the
entrepreneur, and how far is it still driven by the manager and the technician?
Question: To what extent am I functioning as if I own a job, and to what extent am I functioning as if I own a business?
The benefits coming from my Stop Doing List are
Own a Business — and a Life lel/Burrows 6- 24
Action (;,
rosperity Consciousness
Purpose Prepare yourself to achieve wealth through business ownership.
Tip
You may believe that everyone, including you, is ready to be wealthy right now In reality many business owners are locked into a mindset of hard work and small returns. And that's exactly what they experience. This pattern often results from early childhood impressions of parents and other adults.
If you are planning to own a business, not a job, you need to listen to your heart, educate your mind and have intention for a level of affluence and freedom you are not accustomed to — before it manifests. Here is an exercise to help you begin.
Check your limits Picture yourself enjoying rising levels of wealth and abundance. Notice at what point you feel uncomfortable or "that's not like me"
Identify your beliefs
Write down all the negative ideas you have about being extremely rich and free not to work. About each one, ask: "do I know this is true for sure?"
Name your purpose
Imagine you are asked by someone you respect and admire: "What is your purpose on this planet?" Answer in a few short and simple words. Try to identify the highest purpose that feels true to you
Check yourcurrent life against your purpose
Ask yourself haw completely you are fulfilling your
highest purpose today
See what difference money and time can make
Imagine again that you have all the money and time you desire. Now ask yourself in what ways you can better fulfill your purpose? Be as specific as possible
Stretch your fun muscles
Get in the habit of picturing the things you'd enjoy
do i ng if f you were financially free. Be as detailed and specific as possible
Own a Business — and a Life f Leff Burrows 6 - 25
Action (Ste 1.
Self Repor( osperity Consciousness
Date started I_ I Date completed I
Where my mental limit on wealth and abundance lies
The negative beliefs I have held about being rich
My highest purpose, as I see it today
How wealth and freedom can help me live my purpose
Fun things that would come from being financially free
Own a Business — and a Life I Jeff Burrows 6- 26
Some actions are one-time or infrequent events. Others must be repeated regularly. Here you'll find the steps that need constant attention.
Action Note Frequency
Review the Vision
Your vision is only powerful if you keep it in your sights. Reread it, think about it, and visualize what it means
Weekly
"State of the Company"
Gather your team and tell them how the company is doing, relative to the vision. Be honest, and optimistic
At least monthly
Employee Development Meeting
This is the all important accountability check. Each employee should have a regular EDM, which always references the Position Agreement
Every two weeks
Stop Doing List
Life creeps up on us and priorities get lost. Then the urgent takes over from the important. Time for another Stop Doing List!
Weekly
Celebrate
A celebration can be everything from a full-scale party to three deep breaths. Take a moment to register every one of your wins, big and small
Daily
Own a business — and a Life Jeff Burrows 6 - 27
Mon While -7- You Sleep
Dr. Doll de Roos
Why Real Estate
Choose a Real Estate Strategy
Set the Stage for Investing
Choose Your Property Focus
Select a Real Estate Agent
Finding Properties
Inspecting Properties
Key Terms
Preliminary Deal Evaluation
Submit an Offer
Create a Proposal for Finance
Prepare for Property Management
What. _aex eCtfrom this program
This program will introduce you to the fundamentals of investing in real estate with the goal of creating passive income. The specific 90-day objective is to prepare you to submit your first offer. In this period, you'll learn why real estate investment is such a powerful vehicle for creating wealth. You will be assisted in choosing which aspect of real estate to focus on and you will start looking at properties. Understanding key terms is essential, and you will begin to learn how to analyze a deal. You will also be introduced to the process of raising finance for your investments. All of this preparation will bring you closer to the essential step of submitting an offer for an investment property.
My Outcome
I am studying Money While You Sleep because
My strengths in this subject include
Topics where I can most usefully focus include
My 90-day outcome from studying this segment is
Money While You Sleep l Dr. Dolf de Roos 7 - 2
Action Step Rea1 Estate
Purpose Make your own assessment of real estate as a wealth- creation vehicle,
Tip Investing in real estate for the first time requires more than learning new information. You'll have to do things, like making offers, that some people find challenging. Understanding the wealth-building power of real estate will help motivate you as you undertake this adventure.
One way to uncover the value of real estate is to research how the rich get rich, and what they do with their money. Ask wealthy people you know, or use the Internet to find what a huge role real estate investment plays in the lives of affluent individuals.
Another useful task is to compare real estate with other popular forms of investment. Place check marks in the chart below to reflect the positive aspects of the different forms of investing.
Real Estate Stacks & Bonds
Collectibles
Banks will readily lend you money to invest
You can easily acquire 10 times (or more) the value of your cash investment
You can beat the market average by doing some research
You can increase the value of your investment by improving it
You don't have to sell to get cash out
The government gives you tax breaks for investing
Money While You Sleep I Dr. Dolf de Roos 7 - 3
Action Step Self Report„ Rea l Estate
Date started _ 1_ I_ Date completed _ 1_
What I learned from studying the value of real estate as an investment tool
What I learned from speaking with and/or reading about wealthy people (including Donald Trump)
What most interested or surprised me when I compared real estate with other investment vehicles
My level of commitment to investing in real estate, on a scale of 1-10
If your level is less than 10, re-check this after a few weeks of studying this program. See if the level has changed!
Money While You Sleep 1 Dr. Dolf de Roos 7 4
Action Step 2
hoosea Real Estate Strategy .1 11
Purpose Decide which kind of real estate investment you wish to commit to.
Tip If you look in any bookstore, or browse the Internet, you will see numerous kinds of real estate strategies discussed. To be successful, you are advised to commit to one strategy — at least to begin with.
In this program, we focus on one strategy which is specifically designed to create growing streams of passive income. Other strategies include "flipping" (buy, fix up and sell), "wraps" (vendor financing at a profit) and investment in raw land. To learn more about them, visit a library or bookstore, or browse the Internet. Make a clear decision about your chosen strategy before you begin.
The Strategy Taught Here
• Buy a cash flow positive property to hold long term • Earn rental income from your investment • Pay the mortgage and other expenses from the income • The difference between rent and total cost is passive income • Periodically raise the rent • When the value appreciates, refinance and reinvest
Advantages
• Minimize capital gains tax by holding long term • Enjoy tax advantages from owning real estate • Generate multiple, and increasing, streams of income • Obtain tax-free cash bonuses from refinancing
Money While You Sleep I Dr. DoIf de Roos 7 - 5
Action Step 2 Self RepOrt oose,a Real Estate Strategy
Date started
Date completed I_ I—
What I learned from reviewing possible strategies
What attracts me most about the strategy taught here
My strategic decision (check one)
1=1 To adopt, study and act on the strategy taught here
❑ To use a different strategy, in which case I will seek out competent educators on that approach
My long-term financial goals for real estate investment
My primary reason for this goal — how it will impact my life
Money While You Sleep Dr. Doff de Roos 7 - 6
Michael Money Real Estate Investor
Specializing in single family homes
123 Millionaire Row Mytown, USA
Tel 123 456 7890
Action Step 3 - et the „Stage for Investing
Purpose Think and act like a real estate investor before you actually buy a property.
Tip To be successful in real estate, you need to build competence and confidence. Competence comes in time, from study and practice. Confidence is something you can start developing now, by educating your sub-conscious mind to adopt the role of the successful investor. Two suggestions are offered here. One is to create a business card for your new endeavor. The other is to join a local real estate investor's association.
A real estate investor's association is a great place to find comradeship, mentorship and valuable information — for example, regarding real estate agents or finance sources. One word of warning: each investor tends to be passionate about his or her approach so you will hear many arguments for changing your strategic focus. Stand your ground. Stick to one strategy until you have bought at least three properties.
The business card tells people you deal with that you are serious and professional, and that you are in this for real.
Sample business card layout
Money While You Sleep I Dr. Dolf de Roos 7 - 7
_ Action Step 3 1-2 "+,4 Self RepOtt ,pet-the-Stage for investing J',,L.M.,;}P $:..
Date started I I Date completed
What I have learned from joining a local real estate investor's group
Useful resources or people I have discovered by joining this group
My business card is now printed (check)
Money While You Sleep I Dr. Doh' de Roos 7 - B
Action Step 4 ooseyour Property Focus
Purpose Decide which kind of property you plan to invest in.
Tip Once you have chosen the strategy to buy, hold and rent, there are still decisions to make about which kind of property to focus on.
Here are just some of the choices. We use here American terms as well as other international terms. Be familiar with these terms and their equivalents in your chosen investment country, if outside the USA.
Residential
• Single family homes (detached houses) • Duplex or fourplex (semi-detached in various multiples) • Apartment complexes (flats)
Advantages of residential
• Ideal for the beginner: You know what to look out for and how to identify common problems
Commercial
• Retail (stand-alone stores, strip malls, etc.) • Office buildings • Industrial buildings • Specialty commercial property
Advantages of commercial
• Tenants tend to pay more of the expenses, such as property taxes, insurance and maintenance
• As business owners, tenants have longer term leases and are more motivated to care for the property than residential tenants
Money While You Sleep I Dr. Doff de Roos 7 - 9
Action Step 4 Self Repott
A /N4
opnyour Property Focus
Date started I Date completed I
My choice of property focus (check one)
❑ Residential
❑ Commercial
Reasons for my choice
My choice of specific property type (e.g. single family homes)
Reasons for my choice
My current level of knowledge about this kind of property
How I will learn more
Money While You Sleep 1 Dr. Doff de Roos 7 -10
Action Step 5 &Luta Real Estate Agent
-sr
Purpose Select a real estate agent who understands and supports your investment goals.
Tip Your real estate agent can prove the most essential member of your investment business team. A skilled and supportive agent will always be on the look out for exactly the kind of deals you seek, and will be quick to alert you when an opportunity appears. Especially in a fast-moving market, this can make the difference between getting and missing a deal.
Personal rapport is important in selecting your real estate agent. Equally important, your agent must understand your investment strategy. This needs to be someone who works with investors, and/or is a real estate investor themselves.
Question to ask the real estate office receptionist
"Who in your office specializes in real estate investment?"
Good answer: "Yes, that would be..."
Bad answers: "We don't really do much investor stuff." "All our agents specialize in investment."
Question to ask a real estate agent
"I'm focused on such-and-such type of property. What do you have on your books that would be a good investment?"
Good answer: "Sure, this property is good because..."
Bad answer: "All our properties are good investments."
Money While You Sleep I Dr. Doff de Roos 7 - 11
Action Step 5 va("m
Self Repott la Real Estate Agent
Date started I_ Date completed I
What I learned from choosing my real estate agent
Number of real estate agents I interviewed before making my choice
Reasons I made the choice I did
What I have asked my real estate agent to look for
Money While You Sleep 1 Dr. Doff de Roos 7 - 12
Action Step 6
"i_ndingfProperties
Purpose Become familiar with the essential task of finding large numbers of potential deals.
Tip The most important principle here is that you need to look at many deals in order to achieve one truly profitable purchase. Here we apply what is called the 100/10/3/1 rule. By following this rule consistently over time, you cannot fail to come across significant opportunities for profitable investment.
There are two levels to seeking properties: one is to get information on paper or online. The other is to physically visit the property. The first is more important, because this is where you identify the elements of the deal — the numbers. Visiting properties is addressed in the next action step.
The 100/10/3/1 Rule
100: Look Look at 100 property deals
10 : Offers Submit offers on 10 3 : Accepted Expect 3 offers to be accepted 1 : Purchase Expect 1 to pass all levels of
approval including finance and ultimate purchase
Where to Find Properties
• Newspaper ads (especially Wednesday and Saturday or whatever the strongest days are in your city)
• Real Estate free magazines (often found in supermarkets) • Online real estate listings • Real estate agents
Money While You Sleep I Dr. Dolf de Roos 7- 13
Action Step 6 Self Re pert
4W21.4.0,150
Date started
in&Properties
Date completed
Given the 100/10/311 rule, I am committed to finding properties
in the next 90 days
What I have learned so far from searching for properties
For the properties that interest me, the best sources are
The five most interesting properties I have seen to date
Money While You Sleep I Dr. Doff de Roos 7-14
Action Step 7 ns ecting Properties
Purpose Physically inspect properties that interest you.
Tip Unlike buying a home for your residence, a purchase for investment is purely a business decision. You are looking to buy the highest value at the lowest price.
Your intention is to rent the property out, so you need to know the rental market for the area you are buying in. As for the property itself, you must understand the difference between good problems and bad problems. Good problems are superficial faults that may put off other buyers or reduce the price, but can easily be fixed. Bad problems include repairs that are beyond your means to handle, a declining neighborhood, and a poor rental market.
Guidelines for Looking at Properties
Get your emotions and your aesthetic preferences out of the way. Focus on what local tenants will like, not what you like.
Respect the limits of your knowledge — unless you are a construction expert, pay for a professional inspection.
Welcome "good problems" that will enable you to increase the value.
Select a specific neighborhood to focus on.
Drive the neighborhood. Park your car and watch the street for 20 minutes. Talk to neighbors and local store owners.
Research rent levels in the area, and vacancy rates. Ask local real estate agents and property managers, and check
local rent ads.
Money While You Sleep I Dr. Doff de Roos 7 - 15
Date started 1_ Date completed I.
What I learned from my first visits to properties
On my first visits, I successfully set aside my personal preferences, and focused on the objective opportunities
❑ Yes ❑ No
Property inspection (check one)
❑ I am a trained construction expert
❑ I will be hiring a professional inspector
What I learned from driving the neighborhood
What I learned about rent levels and vacancy rates
Money While You Sleep I Dr. Doff de Roos 7 16
Action Step 8 ,: -Key, Terms
^
Purpose Learn some of the most important terms needed to
evaluate a deal.
Tip This "dictionary of terms" gives you an introduction to the language of real estate investment. It is to your advantage to understand these terms as well — or even better — than the people you will negotiate with. To gain mastery of the terms, expand your reading beyond this program and talk to fellow investors at your real estate investors club.
Appreciation Increase over time in a value of property
As is Sold without guarantees as to condition
Cap rate Net operating income divided by sales price as a %
Cash flow Net operating income minus mortgage payments
Cash on cash return Total cash flow divided by total cash invested
Contingency A condition that must be met before a contract is binding
Counter-offer A rejection of an offer that is combined with a new, alternative offer
Depreciation Decrease over time in a value of property
Effective gross income
Gross income minus vacancy
Gross income Rents, laundry facilities and other income
Gross rent multiplier Sales price divided by grass annual income
Mortgage A lien against a property given by a borrower to a lender as a security for a loan
Net operating income
Gross income from property minus all operating expenses (except mortgage payments)
Operating expenses General expenses such as taxes, insurance, utilities, management fees, maintenance, repairs
Vacancy rate Percentage of units vacant over a 12 month period
Money While You Sleep I Dr. Doff de Roos 7 - 17
Action Step 8 Self P4'11
S
Date started I Date completed l
In the Mindset for Success audio, Dr. Burns says information is truly learned when you can use it without thinking about it. Use this principle when talking to your investor friends.
Appreciation
As is
Cap rate
Cash flow
Cash on cash return
Contingency
Counter-offer
Depreciation
Effective gross income
Gross income
Gross rent multiplier
Mortgage
Net operating income
Operating expenses
Vacancy rate
Money While You sleep l Dr. Doff de Roos 7 - 18
Action step 9 reliiiiiinary Deal Evaluation
Purpose Decide whether a deal is worth a complete evaluation.
Tip Real estate investing is a numbers game, and the goal of evaluating a deal is to assess whether the return is worth the investment. Many factors come into play, which is one reason we advise the use of a quality software package for your complete evaluation.
However, there are a few essential numbers that you can quickly calculate. These will tell you whether the deal is worth analyzing further. This is your "back-of-an-envelope" real estate investment calculator.
You will need to determine what your minimum return levels need to be as part of your successful investing criteria.
Refer to the worksheet on the following page.
Money While You Sleep I Dr. DoIf de Roos 7 - 19
Action Step 9 Worksheet' Deal Evaluation
Preliminary Deal Evaluator
Property Details Address Type Size — Sq Ft Asking Price Downpayment Mortgage details
Income Rent & Other Income Less vacancy allowance = Effective Gross Income (a) $
Expenses Insurance Real Estate Taxes Landscaping & Maintenance Water / Sewer / Electrical Other maintenance = Total Operating Expenses (b) $
Performance Analysis Net Operating Income (a b) Less mortgage and debt service = Cashflow Cash on Cash return Gross Rent Multiplier CAP rate
Notes
Money While You Sleep I Dr. Doff de Roos 7 - 20
Action Step 9 Self Rep,ort relimnary Deal Evaluation
Date started Date completed ____ I I
Number of properties I have reviewed so far using the Preliminary Deal Evaluator
What I learned about real estate investment from doing several preliminary evaluations
The five best deals l have uncovered so far
Property Why (in numbers)
Money While You Sleep I Dr. Doff de Roos 7 - 21
Purpose Take the critical step of submitting an offer on an investment property
Tip This step is the climax of your 90- day introduction to real estate investment. Some people will find it an easy and exciting step. Others may find it quite anxiety-provoking. Remember, if you never submit an offer, you will never become a real estate investor. This may be a good time to listen again to the Mindset for Success audio CD with Dr. Bums.
Prepare by obtaining a standard offer form and read it carefully. Ask your real estate agent to explain anything you don't understand.
Most likely, your real estate agent will write the actual offer for you to sign. You can insert any contingencies you wish. We recommend you include a contingency clause in your offer that allows you to withdraw your offer in any real estate deal, should you choose. Some possible insertions are listed below. Remember you can create a psychological impact by stapling a check for an amount of earnest money to your offer. See note below.
Possible Contingencies Clauses you can use in your offer
• This contract is subject to finance suitable to the purchaser • This contract is subject to the approval of the
buyer's attorney • This contract is subject to the approval of the
purchaser's spouse • This contract is subject to the purchaser's approval of
an inspection report • This contract is subject to the purchaser's approval of
an environmental report
Note: These suggestions are for educational purposes only. Consult your real estate and/or legal professionals
before conducting any actual transaction.
Money While You Sleep I Dr. Doff de Roos 7 - 22
ci p Action Step io A Self ReportSubmit an Offer
Date started _____ 1 I— Date completed 1 I
What I learned from studying an offer form
Contingencies I decided to include in my offer
How I felt when submitting my offer
The result from submitting my offer
Money While You Sleep I Dr. Dolf de Roos 7 - 23
Action Step xz w
reatea Proposal for Finance
Purpose Create a document that presents your investment opportunity to financial sources in an attractive and professional manner.
Tip You can begin building relationships with financial sources from the outset. Introduce yourself as a real estate investor and ask what services they can offer.
Once you have a deal in your hands, a Proposal for Finance will separate you from other applicants who merely fill out the bank's own forms.
For each property you are bidding on, create a short Proposal for Finance that summarizes the features and strengths of the deal. The exact contents of your proposal will depend on the specifics of the property. Make 10 copies of your Proposal, staple your business card to it and take it to 10 different banks. To peak their interest, you can tell each of them you are talking to other financial sources.
Money While You Sleep I Dr. Dolf de Roos 7 -N
Action Step 11 ,Ae, Self Rep.O4 a--e-ta Proposal for Finance
Date started 1 Date completed I I
What I learned from talking to potential finance sources ahead of presenting my first deal
Financial institutions and professionals that seem most likely sources of finance
How financial professionals responded to my Proposal for Finance and what I learned from this
Money While You Sleep I Dr. Doff de Roos 7 - 25
Action Step 12 -1,4T: ..;prepare for Property Management
Purpose Prepare to own an income-producing property.
Tip Our advice is that you manage your own properties to begin with. Doing it yourself is a good way to understand the real-life issues of property management, and will give you much more authority and insight when hiring property managers in the future.
However, it is never too early to talk to property managers. These conversations will help you select the best managers when the time comes, and will also add to your education about property management and investing.
When you have several properties, it is wise to use more than one property management firm and let that be known. This will motivate your managers to serve you well as you acquire new properties.
Questions You Can Ask Property Managers
• How do you attract new tenants?
• What steps do you take to retain tenants? How do you keep them satisfied?
• How often do you inspect the property?
• Who handles day-to-day repairs and maintenance?
• What do you do when a tenant is in arrears with rent?
• When a tenant is seriously in arrears, how do you manage an eviction?
• What are your fees?
Money While You Sleep I Dr. Doff de Roos 7- 26
Action Step 12 7:: Self-Repiif repare for Property Management
Date started I Date completed I I
Property managers I have interviewed, with comments:
What I learned from talking to property managers
How I will apply what I have learned to managing my own properties
Money While You Sleep I Dr. Doff de Roos 7 - 27
Ongoing Actions-A—
Becominga real estate investor takes considerable commitment, including a commitment of your time and the ongoing repetition of actions to create a successful outcome. Some actions are one-time or infrequent events. Others must be repeated regularly. Here you'll find the steps that require your attention.
Action Note Frequency
Education
This program is an introduction to real estate investment. It cannot teach you everything you need to know. Read books, talk to other real estate investors and regularly check the Trump University web site.
Continuous
Find properties
Remember the 100/10/3/1 rule. Study newspapers, real estate web sites and reports from your real estate agent and investor associations to hit the "100" part of the formula as often as possible.
At least twice per week
Drive neighborhoods
As well as armchair research, you need to get out there and look at properties and neighborhoods.
Weekly
Interview team players
Keep talking to real estate agents, financial sources and property managers. You will learn something new every time.
At least two interviews a month
Money While You Sleep I Dr. Dolf de Roos 7. 29
My Master Plan
Use this section to plan your pathway to success through The Wealth Builder's Blueprint.
First, re-read the section, How To Use This Workbook. Then listen again to the audio CD Mindset for Success.
Done that? Then it's time to plan.
There are two stages — first your 90-day tour of the entire program. Then 90 days on each of the content modules.
Use the pages that follow to set yourself due dates for completion. Don't try to complete all this planning in one go. Begin with the 90-day tour, and when that is finished, plan just one of the content modules.
If you fall behind, again revisit Mindset for Success and listen to Dr. Burns on the topic 'when life exerts itself." And remember Donald Trump's advice: "Never give up."
Tip 1
Tip 2
Probably the worst way to use this program is to listen to all the audio CDs in succession. Work thoroughly with one audio CD for at [east two weeks before proceeding to the next. You can listen to them all together at the review stage.
After the 90-day tour you will return to individual modules to engage them with more depth. When you do, you will find yourself repeating the first one or two action steps that you did during the tour. This is good. In fact, listen carefully to Dr. Burns and you will hear her advising you to repeat all the action steps several times. Repetition is the route to riches!
Master Plan I Study Guide 8 -1
The Results Page
Before you create your outcomes in reality, create them in your mind.
There are two simple components: what you want to achieve from this program, and why you want to achieve it.
For the "what" be as specific as possible. As outcomes, "Get wealthy" or "Be a billionaire" won't take you very far. Specify what "wealth" means to you, financially or otherwise, then quantify your target and set a date. Make both the target and the time frame exciting and inspiring — but also realistically attainable.
For the "why", give yourself reasons for acquiring wealth. This may seem self-evident, but actually different people have different motivations. You need to connect with yours and make it fully conscious. What will success in this area do for you? How will it enhance your life, or the lives of those you care about? Write this down.
My outcome for this program is
I will achieve this by
1 am committed to this outcome because
Master Plan I Study Guide 8 - 2
The go-Day Tour Due Date
DVD: Donald Trump Speaks
View video
Watch interview again, taking notes
Mindset for Success
Listen to audio CD
Read transcripts
Listen again, taking notes
Money Mastery
Listen to audio CD
Listen again, taking notes
Complete at least one action step
Listen to audio CD again
Powers of Persuasion
Listen to audio CD
Listen again, taking notes
Complete at least one action step
Listen to audio CD again
Career Champion
Listen to audio CD
Listen again, taking notes
Complete at least one action step
Listen to audio CD again
Own a Business — and a Life
Listen to audio CD
Listen again, taking notes
Complete at least one action step
Listen to audio CD again
Money While You Sleep
Listen to audio CD
Listen again, taking notes
Complete at least one action step
Listen to audio CD again
Review
Watch the DVD
Listen to Mindset for Success
Listen to Money Mastery
Listen to Powers of Persuasion
Listen to Career Champion
Listen to Own a Business — and a Life
Listen to Money While You Sleep
Master Plan I Study Guide 8-3
Money Mastery 90 Day Program
Due Date
Listen to audio CD
Listen again, taking notes
Review Mindset for Success
Complete Action Step 1 — The Cost of Ignorance
Complete Action Step 2 — Key Terms
Complete Action Step 3 — Assets & Liabilities
Complete Action Step 4 — Net Worth
Complete Action Step 5 — Income Analysis
Complete Action Step 6 — Financial Statements
Complete Action Step 7 — Goal Setting
Complete Action Step 8 — Wealth Creation Basics 1 Earned Income
Complete Action Step 9 — Wealth Creation Basics 2 Business Ownership
Complete Action Step 10 — Wealth Creation Basics 3 Real Estate Investment
Complete Action Step 11 — Your Financial Team
Complete Action Step 12 — Overcome Your Likely Roadblocks
Master Plan I Study Guide 8 - 4
Powers of Persuasion 90 Day Program
Due Date
Listen to audio CD
Listen again, taking notes
Review Mindset for Success
Complete Action Step 1 — Choose Your Project
Complete Action Step 2 — Identify Your Strengths
Complete Action Step 3 — Establish Your Outcome
Complete Action Step 4 — Understand the Prospect
Complete Action Step 5 — The Unique Selling Proposition
Complete Action Step 6 — The Locus of Power
Complete Action Step 7 — Prepare & Rehearse Your Presentation
Complete Action Step 8 — Support Materials
Complete Action Step 9 — Getting Through the Door
Complete Action Step 10 — Make the Appointment
Complete Action Step 11 — The Presentation & the Close
Complete Action Step 12 — Follow-Up
Master Plan I Study Guide 8- 5
Career Champion 90 Day Program
Due Date
Listen to audio CD
Listen again, taking notes
Review Mindset for Success
Complete Action Step 1 — Plan Your Career
Complete Action Step 2 — Focus on Strengths
Complete Action Step 3 — Mentorship
Complete Action Step 4 — Essential Skills
Complete Action Step 5 — Leadership Feedback
Complete Action Step 6 — Public Speaking
Complete Action Step 7 — Make Connections
Complete Action Step 8 — Make the Boss a Star
Complete Action Step 9 — Create Added Value for the Company
Complete Action Step 10 — Be a Volunteer
Complete Action Step 11 — Establish Core Values
Complete Action Step 12 — Your Goals & the Company's
Master Plan 'Study Guide 8 - 6
Own a Business and a Life 90 Day Program
Due Date
Listen to audio CD
Listen again, taking notes
Review Mindset for Success
Complete Action Step 1 — Create the Vision
Complete Action Step 2 — Steps to Reality
Complete Action Step 3 — The Three Personalities
Complete Action Step 4 — Create Systems
Complete Action Step 5 — Organizational Structure
Complete Action Step 6 — The Position Agreement
Complete Action Step 7 — The Art of Accountability
Complete Action Step 8 — Employee Development Meetings
Complete Action Step 9 — Guerrilla Market Research
Complete Action Step 10 — Treat Your Job as a Business
Complete Action Step 11 — Create a Stop Doing List
Complete Action Step 12 — Prosperity Consciousness
Master Plan 'Study Guide 8 - 7
Money While You Sleep 90 Day Program
Due Date
Listen to audio CD
Listen again, taking notes
Review Mindset for Success
Complete Action Step 1 — Why Real Estate
Complete Action Step 2 — Choose a Real Estate Strategy
Complete Action Step 3 — Set the Stage for Investing
Complete Action Step 4 — Choose Your Property Focus
Complete Action Step 5 — Select a Real Estate Agent
Complete Action Step 6 — Finding Properties
Complete Action Step 7 — Inspecting Properties
Complete Action Step 8 — Key Terms
Complete Action Step 9 — Preliminary Deal Evaluation
Complete Action Step 10 — Submit an Offer
Complete Action Step 11 — Create a Proposal for Finance
Complete Action Step 12 — Prepare for Property Management
Master Plan I Study Guide 8- 8