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Don't Solve Problems Dissolve Them

dissolveBigg success is life on your own terms. There are five elements of bigg success – money, time, growth, work and play. Today we want to focus on time with growth factoring in throughout.

It’s important to look at how you spend your time to determine how to save time. One question to look at is how much time you spend putting out fires.

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Pause and reflect

Certain jobs seem to require more reaction than others. The closer you are to the customer, the more you may respond reactively. If your direct charges are on the front line, you may spend more time reacting.

In those cases, you need to allow for more reactive time as you plan out your day. However, bigg goal-getters try to minimize the amount of time they spend reacting.

So if a large portion of your day is spent responding to situations, pause and reflect. Ask yourself what you can do about it.

It’s possible that nothing can be done about it, but in many cases there is more in your control than you might think. It’s about moving from a reactive mode to a proactive mindset.

That’s the higher order of personal leadership. As a bigg goal-getter, you want more in your tool kit than just problem-solving capabilities. You also want to be a problem dissolver. Here are three ways to do that:

Elimination

The best way to dissolve a problem is to never have it in the first place. Look ahead and try to discover potential problems. If you think it’s likely that you will encounter that problem, dissolve it by eliminating it in advance.

Many future problems can be handled this way. For example, leaders who establish clear expectations for their people eliminate many problems before they ever happen.

Preparation

The next best way to dissolve a problem is to have an answer in mind before you need it. You may have thought about these problems upfront, but it’s more effective to prepare for its eventuality than to eliminate it in advance.

A great example of this is contingency plans. You have a path you’re going down and you’ve determined in advance it’s your best path. However, as new evidence becomes available, you realize that you need to adjust. Planning that adjustment in advance helps you respond quickly if the time comes.

Prevention

Some problems just can’t be anticipated in advance. However, bigg goal-getters dissolve them by solving the problem now and preventing it from reoccurring in the future.

We have a tendency to rush to solve a problem, but oftentimes, with just a little more effort, we can keep it from happening again. Take time to figure out why it happened. Reverse engineer your process to see if you can prevent it in the future.

As the saying goes, “An ounce of prevention is worth a pound of cure.” The best time to start prevention is right after you’ve found the cure. You’re motivated then!

Use that motivation to your advantage to shift your thinking away from solving problems to dissolving them. It leads to bigg success!

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Thank you so much for reading our post today. Please join us next time as we discuss an emotion that leaders must control. Until then, here’s to your bigg success!

 

Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00432-070809.mp3

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The 5 Components of Your Credit Rating

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BIGG success is life on your own terms. Our focus today is on money, one of the five elements of BIGG success.

Specifically, we want to talk about an asset that is particularly valuable now. Yet it doesn’t show up on your Balance Sheet. It’s your credit rating, or credit score.

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6 Paths to Financial Freedom

freedomToday is the fourth installment in our freedom series. We’ll focus on financial freedom.

Financial freedom … can you imagine it? To use the lingo from our last couple of posts, it means freedom from money worries or, even better, freedom to choose how we spend and live.

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Making More Money Per Hour

time_money_balanceBigg success is life on your own terms. Today’s topic really covers two of the five elements of bigg success – time and money.

Specifically, we want to discuss charging for your time. If you’re a consultant, a coach, a freelancer or anyone who bills hourly, how do you determine what an hour is worth?

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One of the biggest reasons small business people don’t reach bigg success is because they don’t charge enough. In fact, in many cases, the business fails for this reason.

So pricing your service is very important. We can think of two primary methods to arrive at a price:

The Market Approach

This is probably the most common way that entrepreneurs arrive at a price. With this method, you simply look at your competition to see how much they’re charging. Then depending on your strategy, you charge the same, a little more or a little less.

The Cost Approach

Here you determine how much you need to charge based on your cost structure and your opportunity costs. By opportunity costs, we mean:

How much could you make working elsewhere?

Add your hard costs to your opportunity cost to arrive at your price per hour.

Limitations

The downside to just using the Cost Approach is that it ignores the market. For instance, your price may be a lot lower than the market but you wouldn’t know it because you haven’t looked at the market. You would be leaving money on the table.

Or it may be a lot higher and the market won’t compensate you what you the amount you need for your time. The result would be a failure that could have been avoided.

The Market Approach also has its limitations. We have a friend who looked at his competitors’ hourly rate to determine how much he should charge. He opened up his shop and started losing a lot of money every month.

He was perplexed, so he did a little more competitive research. He discovered that all of his competitors were losing money as well. Everybody was in a price war; nobody was charging enough to make money.

So he increased his price based on his costs. He lost some customers when he did this but he started making money.

Because of the limitations each method has, we recommend that you use both methods when you’re trying to arrive at a price for your service. Then you’ll have two reference points from which to make decisions.

The Value Equation

Now we want to move to making more money per hour. From the customer’s point-of-view:

Value = (Service x Quality) / Price

From this equation, you can see that there are three ways to increase the value to your customer:

  • decrease your price
  • increase your service level
  • improve your quality

Of course, decreasing the price will very likely hurt you in the long-term. Look at it this way – do you want to work just as hard to make less money? Of course not. Yet a lot of small business people do this first.

So you would prefer to increase the value to your customer by providing a higher level of service or quality.

Let’s focus on service since quality is more up to you. Think about these four D’s:

  • dirty
  • difficult
  • dangerous
  • designed

By designed, we mean customized but we had to have a “d-word”! Dangerous might mean “risky”. However, keep in mind that risk is a matter of perspective. The customer may view something as extremely risky but you know how to manage the risk so it’s not really risky at all for you.

Here’s the key to these four D’s: Find something that your customer
doesn’t want to do, doesn’t know how to do, is afraid to do or just simply can’t do.

When you can do that, your customers will perceive more value for your service. You’ll find it easier to charge a premium. That’s more money per hour. That’s bigg success!
 

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Get the tips and tools you need to be a BIGG success.
Subscribe to the Bigg Success Weekly – it’s FREE!

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Thanks so much for checking in on us today. Please join us next time when we’ll talk about the downside of education. Until then, here’s to your bigg success!

 

Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00422-062309.mp3

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(Image in today's post by hisks)