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Rules for Successful Entrepreneurship: Lessons from 5 Leaders

5 lessons from leaders for BIGG SuccessBillionaire entrepreneurs are a breed apart. They got to where they are today through hard work, quick thinking, good instincts, and trial and error decision-making. But in their journey, they made a right decision along the way, or met a crucial mentor or pursued a certain vision. By doing this, they turned a business idea from a gut feeling into a billion dollar company.

GoDaddy, Go!

Bob Parsons is the founder of GoDaddy, one of the country’s largest web registrars. In a summer 2012 article, Parsons listed his 16 tips for survival. Two of the most memorable of them are closely related and serve well to list both here:

  • “Almost nothing works the first time it’s attempted. Just because what you’re doing does not seem to be working, doesn’t mean it won’t work. It just means that it might not work the way you’re doing it. If it was easy, everyone would be doing it, and you wouldn’t have an opportunity.”
  • “There’s an old Chinese saying that I just love, and I believe it is so true. It goes like this: “The temptation to quit will be greatest just before you are about to succeed.”

Keep It Simple

A new book on the late Steve Jobs, Apple’s co-founder, describes his tenacity to trim back and keep things simple. In Insanely Simple: The Obsession that Drives Apple’s Success, author and Jobs’ former creative partner Ken Segall wrote that Jobs used simplicity as his secret weapon.

“Simplicity means products (Apple II, the Macintosh, iPod) that consumers not only understand, but bond with right out of the box,” wrote Segall. “Throughout Jobs’ career, it meant “insanely great” innovations such as human-oriented design, graphical computer interface vs. the dark mysteries of MSDOS, one button instead of two. He elevated usability to an art, and elegant design to a competitive advantage.”

Mr. Trump

Real estate mogul and TV personality Donald Trump has been well-quoted on his ideas of leadership success. His is a story of American success via hard work and a dose of celebrity and New York braggadocio, not a bad combination when you think about it. Some of his key success tenets include:

If you love what you do, you will work harder. You will enjoy your business and your life. You will spend the time to know your business inside out. You can brag about what you are going to do but if you do not bring the goods to the table, you will be knocked down.

High Fliers

One of the modern era’s most driven entrepreneurs must be Sir Richard Branson, who has charged his business ideals with personal adventure habits that have included skydiving, ballooning and sailing adventures. Richard Branson outlined his top five business principles in a BBC radio interview:

  1. If you don’t enjoy it, don’t do it. You must love what you do.
  2. Create something different that will stand out.
  3. Your employees are your best asset. Happy employees make for happy customers.
  4. Lead by listening: Get feedback from your staff and customers on a regular basis.
  5. Market the company and its offers by putting yourself or a senior person in front of the cameras.

And lastly, one of the greatest investors of our time Warren Buffet once compiled his list of ten winning rules. They are all worth reading, but the first rule is valuable to all of us. “Reinvest Your Profits – When you first make money, you may be tempted to spend it. Don’t.  Instead, reinvest the profits.” Buffett started reinvesting profits early on from a pinball business, and soon enough, was able to reinvest in stocks and start other businesses, eventually running the massive Berkshire Hathaway.

Author Bio
Jennifer Lewis writes about social networking and business, especially as they relate to education. She lives in the New England area and loves all snow-related sports.

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Smart Investors, Tough Times

investing People who find joy in bad news have to be pretty happy lately. The financial crisis has dominated the news, as we watch Wall Street and Washington scramble.

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We don’t usually do this – in fact, we’ve never done it in the 230 shows we’ve done so far. But this subject is so important and so timely. So we want to share some valuable information that our newsletter subscribers received in their In boxes last Friday.

In the last edition of The Bigg Success Weekly, we discussed “Profiting from Panic”. It was about maintaining the proper mindset in the midst of all this turmoil.

We started with the safety net that exists for depositors, investors, and insureds. Here are some links directly to pages that can answer your questions about banks, brokers, and insurers in a hurry. 

Banks

In general, banks are insured by the Federal Deposit Insurance Corporation (FDIC). However, not all money invested through banks is insured. What would happen if your bank failed? If you have accounts with a failed bank, what should you do? How can you obtain a release of lien, if a failed institution is your lienholder? The following links provide the answers to all of these questions:

What is the FDIC

A Guide to What Is and Is Not Protected by FDIC Insurance

FDIC Bank Find (make sure your institution is FDIC insured)

When a Bank Fails- Facts for Depositors, Creditors, and Borrowers

Is My Account Fully Insured?

Obtaining a Lien Release

Brokers

Accounts with brokerage firms also offer some protection through the Securities Investor Protection Corporation (SIPC). The coverage isn't anything like that offered by the FDIC, but it's still important to know what remedies might be available to you. 

How SIPC Protects You

Insurers

While banks and brokers have federal backing, insurance companies have backing through associations at the state level.

The National Conference of Insurance Guaranty Funds

If your insurance company fails, you'll want to contact your state's Department of Insurance, since insurance companies are overseen by that department in each state in which they operate. Click here for a directory of each state's office. 

Your State's Department of Insurance or Guaranty Association

Two billionaires, two eras, one mindset

Warren Buffett, the richest man in the world according to Forbes, recently invested $5 billion in Goldman Sachs, in the midst of all this turmoil. That’s pretty typical of how he’s made his fortune – he says he’s “fearful when others are greedy and greedy when others are fearful.”

He has also opined, “We want to do business in [a pessimistic] environment, not because we like pessimism but because we like the prices it produces.”
 
From: The Warren Buffett Way: Investment Strategies of the World’s Greatest Investor, by Robert Hagstrom, Jr. 

Warren Buffett is not alone.

J. Paul Getty was one of the first billionaires and the richest man in the world in his day, according to The Guinness Book of World Records. He said, “I began buying stocks at the depths of the [Great] Depression. Prices were at their lowest, and there weren’t many stock buyers around. Most people with money to invest were unable to see the forest of potential profit for the multitudinous trees of their largely baseless fears.”

He went on to say that he made over 100 times his investment on many of these stocks!

From: How To Be Rich, by J. Paul Getty.

Our best strategy

So we can learn from these two men that we shouldn’t panic, even in turbulent times. Now, you may not want to rush out and buy a bunch of stocks. However, you probably shouldn’t sell out right now either.

These two billionaires made a fortune by going against grain. So keep making those 401(k) contributions. By investing consistently over time – paycheck by paycheck – you’re dollar-cost averaging into the market. In bad times, you’ll buy more shares with the same money than you can in good times – just like the billionaires. 

Above all – diversify, diversify, diversify. Diversification is one of the four key investment principles, according to William Sharpe, a Nobel Prize winning financial economist. Our newsletter subscribers read about these as well as some ideas to simply put them into practice.

Today, more than ever, it’s important for you to take on the role of Chief Investment Officer for you and your family. You can’t count on Wall Street or Washington to do it for you!

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If you would like to get the newsletter we’ve referred to here, just e-mail us: bigginfo@biggsuccess.com, with “Profiting from Panic” in the subject line. We’ll send it to you and sign you up for The Bigg Success Weekly!

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Next time, we’ll discuss why it’s so important to move beyond personal productivity. Until then, here’s to your bigg success! 

 

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Two Billionaire Investors Give Their Two Cents Worth

By Bigg Success Staff
09-26-08

Bigg Success with Money

2_cents 

Warren Buffett, the richest man in the world according to Forbes, may well be the greatest investor of all time. Not surprisingly, he recently made a sizeable investment in Goldman Sachs, one of the firms who had been battered by the recent crisis on Wall Street.

Typical Buffett move.

It goes along with his strategy “to be fearful when others are greedy and to be greedy when others are fearful.”

So what does Buffett know? Why is he willing to invest now in the midst of all this financial turmoil?

Benjamin Graham, Warren Buffett’s college professor and mentor said, “An investor’s worst enemy is not the stock market, but oneself.”

Profiting from pessimism

A great book by Robert Hagstrom, Jr. called The Warren Buffett Way: Investment Strategies of the World’s Greatest Investor, quotes Buffett:

“The most common cause of low prices is pessimism – sometimes pervasive, sometimes specific to a company or an industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It’s optimism that is the enemy of the rational buyer.”

However, many investors do the opposite. They buy when everyone is buying, which drives prices higher. They sell when everyone is selling, driving prices down.

Think of it this way – if all the restaurants in your community suddenly cut their prices by twenty percent, would you eat out more?

Of course you would!

This billionaire’s stocks returned 9,900 percent

Another man who understood business and stock market cycles was the late J. Paul Getty, one of the world’s first billionaires and, at one time, the richest man in the world, according to the Guinness Book of World Records.

In his book, How To Be Rich, he says, “I began buying stocks at the depths of the Depression. Prices were at their lowest, and there weren’t many stock buyers around. Most people with money to invest were unable to see the forest of potential profit for the multitudinous trees of their largely baseless fears. I had confidence in the future of the American economy and realized that shares of many entirely sound companies with fine potentials were selling at only a fraction of their true worth.”

He goes on to say that he made over 100 times his investment on many of these stocks, bought during the depths of the Great Depression!

The best time to buy stocks

He continues, “Common stocks should be purchased when their prices are low, not after they have risen to high levels during an upward bull-market spiral. Buy when everyone is selling and hold on until everyone else is buying – this is more than just a catch slogan. It is the very essence of successful investment.”

How did he have so much confidence that prices would go up?

Because as he explains, “History shows that the overall trend of stock prices – like the overall trend of living costs, wages and almost everything else – is up. Naturally there have been and always will be dips, slumps, recessions and even depressions, but these are invariably followed by recoveries which carry most stock prices to new highs. Assuming that a stock and the company behind it are sound, an investor can hardly lose if he buys shares at the bottom and holds them until the inevitable upward cycle gets under way.”

The worst time to sell

J. Paul Getty fully understood the turbulence we faced. While every stock market crash or bear market has its own unique features, they also have a lot in common.

Getty said, “The anatomy of a stock market boom-and-bust … is not too difficult to analyze. The seeds of any bust are inherent in any boom that outstrips the pace of whatever solid factors gave it its impetus in the first place.”

Getty offered advice to weather the storms. He said, “Another valuable investment secret is that the owners of sound securities should never panic and unload their holdings when prices skid. Countless individuals have panicked during slumps, selling out when their stocks fell a few points, only to find that before long the prices were once more rising.”

Think about the advice from these two great investors when you’re thinking of buying … or selling.

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