Sharing Daily Discoveries About Personal Finance And Business Topics

Listen With An Open Mind And Analyze Their Circumstances

I have been hearing a bunch of comments lately as a result of that Action Plan 2009 book that is available for download. Some people swear by the advice while others criticize that it is only ideal for people that already have a certain amount of money/income. You always have to keep in mind about the person that the information is coming from and what their circumstances in life were I’d say.

Here’s what I have always found personally when it comes to experts that give out tips and advise. Usually, they give out tips and strategies based on what has worked best for them result wise through all of their experiences. In turn, they share this information to people as in theory this way you can avoid all of the mistakes and time wasters to just go for the gold quicker. Doesn’t usually work that way in practice though huh?

Here’s a stereotypical example of what I am talking about. Let’s say there is this entrepreneur who was starting a store selling soap. In the first few years he doesn’t do too well by using mostly just traditional advertising and got a few customers. For the most part he lost money as he even had to borrow funds for the building rent.

Then later on he decided to create a website to enabled people to buy his products online. He informed all of his existing clients about it too and holy moly his business is skyrocketing now! He is getting visitors like mad and he is having trouble keeping up with the inventory. As a result, the storefront now became dismissal in terms of overall sales and so he decided to go full fledge in selling online only. It worked for him as he eventually arrived at his dream destination financially.

Now that he has “Made It” he decides to write a book about how creating a website to sell your soap products is “The Way” to go and what didn’t work for him. The material itself is pretty sound and makes sense as you comprehend it. He talks about how he has wasted so much time trying to create a traditional shop and that if he started the online store idea sooner it would have been better. You then get step by step examples on how the person created a website, the prices he charged for his products and so fourth.

So now what would normally happen is a new entrepreneur reads this as he wants to create his own soap business. Following all the advice and practices based on the book, he starts the business entirely online. Months pass though and he doesn’t get enough customers to make ends meat. He has all the ideas set up as instructed, but nothing is really happening and he is losing money. Why aren’t customers coming? Why isn’t it working since it clearly worked so great for the other guy?

Now this is the important part on how you shouldn’t just focus on listening to advice and practices that are given, but rather you should try to thoroughly understand the person’s own unique situation too. Like in this case, the author did not start with just the online store. He actually had the business offline beforehand and so when he created the online store he had a head start as he was redirecting his current client base to it.

So while you can say that the new guy has a huge head start when it comes to setting up the business online, the fact that the other person had some established clientele was a huge important pipeline in the system. Therefore, understanding the author’s situation at the time is crucial as while the information given can better prepare you on how to build a good pool, you still need to figure how to build the sturdy pipelines to fill it up.

This goes for finance advice too I‘d say. While tips and advice are great to give you a blueprint and setup of an ideal scenario, in these cases I’d say the “pipeline” that the expert had ahead of time before initiating those ideas is the right “attitude and mindset” which they did something beforehand to develop.

Speaking for myself as an example, I personally don’t know one person who manages money effectively in a debt free way for their lifestyle without having gone through some kind of real hardship such as growing up in an extremely poor family or the experience of being forced to start at nothing. In that scenario that is the missing link you need to establish first I’d say. There are many other ways to do it too such as how some people visit/help families in poor countries to make them realize what they have isn’t bad at all and in turn it gives them the right attitude to not waste their money in foolish ways. So with the right attitude, all they need is the tools.

So if you are one of those people who are hoping that just implementing strategies and guidelines are going to make things happen for you too automatically, hopefully this will open your mind a bit to not only hear what people have to say but rather take the time to try and learn the situations surrounding their lives too that may have played a big factor on why they were able to execute those ideas with outstanding results.

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