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A very successful entrepreneur once said: "There are two things you cannot hire a person to do 1) Think and 2) do things in the right order".
As a serial entrepreneur, this wisdom resonated with me deeply and I have made this an absolute rule in my business.
I hire people, mostly contractors of different types to do work for me every week. Every week I am either digitally hiring contractors on eLance or physical contractors to do physical work on my Real Estate portfolio. I employ people from web developers, programmers, marketers, logo designers, carpenters, painters, general labourers, sales people, book keepers, accountants, and lawyers.
Over the years in my entrepreneurial career, I have learned the very hard way that the words of wisdom above are absolute truth.
In fact, I would venture to say that the words above are a law of business.
Disobey the words of wisdom and you will be punished in unbelievable ways.
Early in my career, I let contractors run amok because I had trusted them to:
- Think and
- Do things in the right order.
As a young, naive entrepreneur, I assumed that because I had put lots of thought and emotional energy into my venture, that they would think and do things in the right order as I had envisioned. I trusted their expertise and wanted to let them do what they "thought" was best.
In reality, I did not manage my contractors close enough and very soon had created $25,000-$75,000 worth of mistakes.
To a young entrepreneur, this is an enormous price to pay for a little bit of ignorance.
Assuming that someone you hire will Think and Do things in the right order is easily the most expensive mistakes an entrepreneur or real estate investor can make.
Virtually all distress sales in Real Estate happen because some naive or negligent entrepreneur let their contractors run amok. All distressed businesses are a result of this as well.
The highest paid job anywhere in the world is the position of "thinking".
There is a famous book called "THINK and grow rich". The book is not called "OUTSOURCE and grow rich", "NEGLECT and grow rich", "MISMANAGE and grow rich" or "FIRE-AND-FORGET and grow rich".
The key to effective "thinking" is to set aside time each day just for thinking.
My current schedule (if I obey it) has 1 hour of strategic thinking set aside per day, 2 hours of mindfeeding and 1 hour of creation per day.
That's 4 hours of either feeding my ability to think, straight thinking or creating as a result of thinking.
These 4 hours are where all of my money is made. This is the highest paid work I do, no other task compares with these 4 hours.
CEO's of fortune 500 companies are paid disproportionally high salaries to other employees because they are the only people in the organization who are entrusted to think. Everyone else in the organization is hired to execute, or manage people who execute.
Entrepreneurs are the highest paid people in the world because they are the people world who do the majority of the thinking.
The people who think are the people who make all of the money. Unfortunately, to become a "thinking" entrepreneur is much harder than it sounds.
To become a thinking entrepreneur is much different than hanging out at the library pondering thoughts over a cup of coffee or coming up with a great idea in the shower.
In Michael Gerber's best selling book "The E-Myth", he defines the 3 roles that an entrepreneur must play in their business. These roles are:
The technician is the lowest paid job in the organization. This person does not have to think and they are hired to do only what they are instructed to do. Most entrepreneurs get stuck in technician roles and this is why most entrepreneurs make no money and fail. A business cannot be run from the bottom.
The Manager is a middle role in the organization. The manager is entrusted to execute tasks in the right order (as dictated by the thinking entrepreneur) and manage the technicians. Many entrepreneurs get stuck in managerial roles and unfortunately, managers do not get rich. Managers are supposed to manage execution of strategies and maintain current business. They do not create new business.
Napoleon Hill's book is NOT called "MANAGE and grow rich", it's called "THINK and grow rich".
The Entrepreneur is the highest position in an organization in both rewards and responsibility and if the entrepreneur is good, he will be able to remove himself from the organization and let the managers handle the operations.
The entrepreneur's job is to spot strengths, weaknesses, opportunities, threats, market trends, and manage the managers. The entrepreneur is also entrusted with the two things that you can never hire a person to do:
- Do things in the right order
These two sacred roles are the entrepreneur's most important responsibilities.
Henry Ford used to say "Thinking is the hardest work of all, that is why so few people do it".
For the entrepreneur to be effective, he must set aside time to Think and create general processes for getting work done "in the right order".
Of course, so many entrepreneurs fail because they entrust these responsibilities to their teams who cannot perform these tasks OR they fail to build a team and just operate as unthinking technicians and managers.
The most successful entrepreneurs in the world all set aside time each day for thinking, start with at least a 30 minute period each day and use it to build your:
- Vision plan
- Marketing plan
- Strategic plan
A ship without a rudder will always smash up on the rocks and a business without a plan will eventually crash as well.
Set aside time for thinking and take Napoleon Hill's advice to THINK and grow rich.
Thanks for reading,
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