Wealth Creation Strategies – How To Be Rich!

What People Need

Wealth creation occurs when you produce a product or service that people want and need and are willing to pay for at a price that is in excess of your total cost of producing that product or service.  The key to business success has always been the same, find a need and fill it.  We all earn our livings by serving other people in some way.  Your business goal is to find out what people really want and need, and then give it to them better and faster than anyone else.

Secrets of Market Leadership
Hundreds of companies have been studied to discover the secrets of market leadership.  There are three secrets. The first one is Operational Excellence — the company has developed the ability to produce its products and services at a cost substantially lower than its competitors.  The second is Customer Intimacy — the company develops a close relationship with its customers based on excellent knowledge of the customer’s business. Thirdly, there is Technological Superiority — the company offers a product or service that is superior to that of its competitor.

Additional Value
There are several strategies that you can follow to create additional value for your customers and additional wealth for yourself.  Improve your product or service in some way so that it is better than that of your competitors, at the same or at a lower price.  Produce or deliver your product or service faster than your competitors.  Produce your product or service cheaper than your competitors, maintaining or increasing your level of quality.  Offer better follow-up and support services to go along with your product or service than your competitors.  Make your product easier to acquire and more readily available than your competitors.  Make your prices and terms more attractive and convenient than your competitors.  Include additional products and services with your offerings, at the same price.

Reputation
Your reputation in the marketplace determines how much you can sell, and the prices you charge.  The friendliness of your staff and the ease of doing business with you is a key part of your reputation.  Your credibility with your customers, the degree to which they see you as trustworthy and dependable is a key value to your customers.  Selling to an individual customer requires an impeccable reputation and a focus on the improvement your product or service makes in their lives.  What does your product achieve for your customer?  What does your product help your customer to avoid?  What does your product help your customer to preserve?  How does your product help your customer to get better results in his life?

Action Exercise
List three ways that you could improve the relationships that you have with your customers.

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The Foundations of the American Dream

By Brian Tracy

In a free market economy like the United States, the customer is the king or queen, and they rule supreme. Business and entrepreneurship are devoted to serving customers, to improving the lives and work of ordinary people. This is what makes the American dream possible.

The Spark plug of American Prosperity
The entrepreneur is the spark plug in the engine of the free market and the business system. It is the entrepreneur who recognizes and anticipates a customer need, then assembles the resources necessary to satisfy that need at a price that yields a profit. It is this ability that creates all wealth and opportunity.

Entrepreneurship is Risky
Entrepreneurs are those who take risks to produce goods and services for customers, gambling that the customers will be there to pay prices high enough to yield profits. These profits are essential for the entrepreneur to repeat the process of developing and producing even more products and services in the future.

The Companies of Tomorrow
Some of the biggest and most profitable companies in America today, such as Microsoft, Dell, Oracle, and Apple, did not exist twenty-five years ago. Each year, new companies emerge and older companies disappear. The process of “creative destruction” in the marketplace never ends. Customers’ wants and needs are changing continually, like the weather, from one day to the next, they never remain very long.

The Dynamics of the Free Market
The free market is the vast national and international meeting place where buyers and sellers come together to negotiate and decide what to sell, what to buy, at what prices, and under what terms. The “bright side” of the free market is when businesses strive to please customers in the short term while simultaneously thinking about planning for the long term. The best businesses are those dedicated to building and maintaining customer loyalty so that once they sell something to a customer, the customer is so happy and satisfied that he or she buys again.

Competition Brings Out the Best
To succeed in a competitive market, many of the very best qualities of the individual are demanded. At a minimum, a successful entrepreneur requires courage, both to begin in the first place and persist against endless problems and disappointments. An entrepreneur must be optimistic, energetic, visionary, determined, intelligent, flexible, and able to bounce back repeatedly from disappointment and temporary failure. An entrepreneur, above all, requires an instinct for identifying what products or services he or she can produce and offer that extremely demanding customers will buy and pay for.

Action Exercise
What the U.S. needs today is a new birth of liberty expressed in a national commitment to promote entrepreneurial activity by removing the hindrances that hold it back. What is your entrepreneurial dream? What steps can you take to make your dream a reality?

Brian Tracy

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The Law of Time Perspective

By Brian Tracy

The most successful people in any society are those who take the longest time period into consideration when making their day-to-day decisions. This insight comes from the pioneering work on upward financial mobility in America conducted by Dr. Edward Banfield of Harvard University in the late 1950′s and early 1960′s. After studying many of the factors that were thought to contribute to individual financial success over the course of a person’s lifetime, he concluded that there was one primary factor that took precedence over all the others. He called it “time perspective.”

Plant Trees

What Banfield found was that the higher a person rises in any society, the longer the time perspective or time horizon of that person. People at the highest social and economic levels make decisions and sacrifices that may not pay off for many years, sometimes not even in their own lifetimes. They “plant trees under which they will never sit.”

Doctors

An obvious example of someone with a long time perspective is the man or women who spends ten or twelve years studying and interning to become a doctor. This person takes extraordinarily long time to lay down the foundation for a lifetime career. And partially because we know how long it takes to become a doctor, we hold doctors in the highest esteem of any professional group. We appreciate and admire the sacrifices that they have made in order to be able to practice a profession that is so important to so many of us. We recognize their long time perspectives.

Long Time Perspectives

People with long term perspectives are willing to pay the price of success for a long, long time before they achieve it. They think about the consequences of their choices and decisions in terms of what they might mean in five, ten, fifteen, and even twenty years from now.

Short Time Perspectives

People at the lowest levels of society have the shortest time perspectives. They focus primarily on immediate gratification and often engage in behaviors that are virtually guaranteed to lead to negative consequences in the long term. At the very bottom of the social ladder, you find hopeless alcoholics and drug addicts. These people think in terms of the next drink or the next fix. Their time perspective is often less than one hour.

Delayed Gratification is the Key to Financial Success

Your ability to practice self-mastery, self-control, and self-denial, to sacrifice in the short term so you can enjoy greater rewards in the long term, is the starting point of developing a long time perspective. This attitude is essential to financial achievement of any kind.

Action Exercise

Practice a long term perspective in every area of your life, especially in your financial life but also with your family and your health. Think of where you would ideally like to be in five years and begin today to take steps in that direction.

Brian Tracy

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Prepare for Your Journey

By Brian Tracy

Preparation is the mark of a professional. Preparation is also the mark of a successful person in any field. As you move upward in any occupation, you will find that the top people spend far more time in preparation than the average person does. The top 10 percent in any field are always more thoroughly prepared in every detail than those who struggle for a living in the same occupation.

Guard Against the Worst

For me, as a professional speaker and seminar leader, the worst thing that could happen would be for my luggage to be lost and for me to arrive without the clothes and seminar materials that I need for my speaking engagement. To guard against this situation, I carry all my essentials on board with me, never out of my sight. Because of this habit of advance planning, I have never had an insurmountable problem because of baggage delays or losses. On the way to your destination, in the achievement of your most important goal, continually ask yourself, What are the worst possible things that can happen? And then guard against them.

Plan for Any Eventuality

The mark of a superior thinker is that he or she assumes that the worst will happen and makes provisions against it. Napoleon Bonaparte was once asked if he believed in luck. He replied, “Yes, I do. I believe in bad luck. I believe I will always have it, and I plan accordingly.”
Refuse to be Passive

My traveling experiences have taught me two things. First, prepare for the worst. No matter what anyone tells you, be prepared for the possibility that he or she will not follow through. Second, be proactive, not passive. Instead of becoming angry or depressed, get busy and get going. Find an alternative. Refuse to accept the current situation if it is not satisfactory. Instead of waiting for things to happen, make things happen.

Prepare a Checklist

Pilots carefully review a checklist prior to every flight. Even if they have flown thousands of hours and have been active pilots for twenty years, they still go through the checklist every single time. You should prepare a checklist as well. No matter how many times you have made the same trip, you should review your checklist once more. Never trust to memory. The failure to check just one critical detail can leave you stranded and maybe even put your destination out of reach. As you proceed toward your personal destinations and struggle toward your goals, the consequences of not following your checklist will not be as severe. But it is not unusual for a business to go broke or a person to lose all his or her money because someone failed to pay attention to a critical detail.

Action Exercise

Get in the habit of making checklists for big and small tasks. Make checklists for travelling and for work related tasks.

Brian Tracy

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Invite the Facts of Life to Set You Free

Without our unconscious consent, regardless of what we may have done against others, or ourselves, the past is powerless to punish us in the present moment.

Awaken the New Perception that is Pressure-Free

When we turn on a faucet connected to a hose with a small nozzle at its other end, we know from experience that we have to keep the hose in hand, otherwise we will likely get soaked chasing down the runaway end. What happens is that the water pressure, as it passes through the nozzle, transforms our ordinarily tame garden hose into the equivalent of a tethered rocket.

With this picture in mind, can you also see that when we are angry or anxious, the same principle holds true in us, as it does in the hose example, of too much pressure and too little release? Heated thoughts or runaway emotions flood through our psychic system, pick us up, and cause us to careen wildly until we crash into whatever unfortunate thing may be in our path.

Now, when it comes to our chores, and the hose runs wild, we can either turn off the water or simply widen the spray of the nozzle and our problem is solved. But when our constricted consciousness reaches critical mass and starts throwing us around, how do we resolve this pressure?

It should be clear by now that our usual approach to venting this pressure provides, at best, only temporary relief. What we really need isn’t a Band-Aid, but an inner healing. This need brings us, once again, and yet in still another way, to the time-honored truth of “Know thyself.” Only the understanding of our actual inner condition shows us what can free us, otherwise we wind up the servant of our own inner pressure, doing what it bids us do instead of being its master.

Commanding the pressures of this life begins with understanding that the stress we feel is first an inside job. In and of itself, there is no such thing as a “pressurized” moment. Try to see the truth of this.

The present moment flows along freely. Nothing can possibly restrict what is ever refreshing itself in the ever-new Now. This finding reveals that any pressure we come to feel in any given moment is the unhappy effect of some hidden agent within us acting on the ordinarily free-flowing content of each of these moments. In no time at all, the quiet and naturally unrestricted stream of events around us becomes a jet engine within us, rocketing us out of peace.

Now, in our physical world, whenever the garden hose gets “charged” and starts to whip around, we simply realize what has happened, reach down, and turn off the water. But in the spiritual world within us, we can’t “turn off” life! It pours itself out in an eternal outflow, which brings us to an important question. If it is not the movement of life itself that restricts us, where then is the hidden bottleneck wrecking our inner world? There can only be one answer to this timeless question, although it may be stated in different ways.

It is our own narrow mind, with its narrow view of life, that pressurizes our events and their moments. This small mind, which can’t be separated from the narrow world it perceives, tends to see life’s events not as they are, but as what they are not according to its own unconscious demands.

In other words, the punishing pressure we feel in this life is not because of what life is but because of what we perceive life isn’t — a judgment that could neither be reached nor sustained were it not for there being within us an unseen “board of governors” that had already concluded what “best” serves us and what won’t. But see the contradiction in this discovery and you will free yourself of the pressure created in its undetected presence.

Whenever you “serve” this painful pressure within you, to somehow release yourself from it by doing the dance it prescribes, it is not your interests you serve, but the hidden interests of some small self — the one that has been “telling” you all along what your real pleasures are by punishing you when they seem out of reach!

The next time some pressure starts to build within you, learn to use it to shake yourself awake. Rouse yourself to the pure fact that whatever stress you are starting to feel doesn’t really belong to you. Stand back from yourself long enough to see that pressurized thoughts and feelings can only arise from a narrow view of life that belongs to a narrow self — a false self that you had momentarily and mistakenly taken as your own. Then just quietly drop this formerly unconscious conclusion. This same moment of letting go releases you from this restricted sense of self and the narrow life it creates.

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