When Entrepreneurs Fail

Tom Corley boats - crop

Thirty-four percent of the 177 self-made millionaires in my Rich Habit Study acknowledged that they had failed at least once in business.

Failure is painful. It emotionally and financially threatens your family life. No one likes to fail. But failure forces you to change and grow. The lessons you learn from failure stick. Failure leaves scar tissue on the brain. You never forget your failures and the hard lessons failure teaches. Failure forces you to learn what to do and what not to do. For those who are somehow able to pick themselves up and try again, failure is almost always temporary.

In my books, Change Your Habits, Change Your Life and Rich Habits Poor Habits, I share many of the reasons entrepreneurs fail. Here are the top 8 reasons: [Read more…]

Rich Habits Poor Habits Episode 27 | You Simply Cannot Think Your Way to Success

In Tom Corley’s five-year Rich Habits study of 233 rich people and 128 poor people he discovered that we adopt the beliefs of our parents, family, mentors, culture, and environment.

He shares some of those revelations with regards to The Law of Attraction.

The Law of Attraction’s origins are muddied. house dream young land property build

Some historians cite Buddha as the first to articulate the law.

Others, Jesus.

No one really knows.

But we do know that The Law of Attraction first gained world-wide recognition thanks in large part to Napoleon Hill’s 1937 book Think and Grow Rich.

While Hill’s version of The Law of Attraction was heavily weighted towards thinking, it nonetheless emphasized the importance of taking action on your thoughts.

Thinking, followed by action, was Hill’s message.

Then, in 2006, The Law of Attraction, underwent major surgery thanks to a little book called The Secret.

The Secret was, and still is, a big hit.

It has sold over 19 million copies to date.

ad_rhph

It’s popularity is anchored in the notion that thoughts become things.

The Secret promised riches, success, happiness and an amazing life.

All you had to do was visualize what you wanted and that simple act would attract it.

The major surgery performed by The Secret, was in removing the organs of action from the patient.

No work, no hardship, no obstacles, no goals, no mistakes, no failure.

For the first time a self-help book offered success without all the effort.

With its millions of devoted followers, you’d naturally expect to see an explosion in the number of millionaires since 2006.

But that didn’t happen.

Why?

Because the real secret is that visualization does not attract that which you desire.

The purpose of visualization is clarity. idea success

Visualization, or thinking in pictures about the life you desire, forces the conscious and subconscious parts of your brain to work in harmony in revealing, or making clear, the path you must take in order to produce the life you desire.

Clarity is knowing exactly what you want in life and what you need to do to get what you want.

Clarity reveals the path you must take.

It provides the blueprint for the life you desire.

That blueprint is just a plan.

Executing that plan requires effort.

It requires action.

You simply cannot think your way to success.

YOU MAY ALSO BE INTERESTED IN VIEWING:

RICH HABITS POOR HABITS EPISODE 26 | MYTHS ABOUT THE WEALTHY PART 2

RICH HABITS POOR HABITS EPISODE 25 | MYTHS ABOUT THE WEALTHY PART 1

RICH HABITS POOR HABITS EPISODE 24 | COMMON HABITS STOPPING PEOPLE FROM GETTING RICH PART 2

RICH HABITS POOR HABITS EPISODE 23 | COMMON HABITS STOPPING PEOPLE FROM GETTING RICH PART 1

Three Things The Successful Do Differently

Tom Corley boats - crop

Become an Industry Expert

One of the individuals in my study (Tom) started his career in the Pharmaceutical industry working in the equivalent of their mail room. He very much desired to rise up the ladder so he decided to join a Pharmaceutical trade group. He immersed himself in the trade group by signing up for various committees. For years he worked hard on the trade group, on his own time, learning more and more about the industry.

Tom told me that one day the trade group had a big lunch event in which only the top industry executives were invited. The CEO of Tom’s company was at the lunch event.  Another CEO, from another Pharmaceutical company, who was active in the trade group, was sitting at the table next to Tom’s CEO. The competitor CEO told Tom’s CEO how lucky he was to have Tom on his management team. The competitor CEO praised Tom’s hard work ethic and dedication to the trade group.

When Tom’s CEO got back to the office he asked his secretary who this Tom was. [Read more…]

Brain Fog Can Cripple Your Business

Tom Corley boats - crop

When your brain is foggy, you cannot think clearly, you make poor decisions, your memory suffers and things slip through the cracks that can damage your career and ability to make money.

Common Causes of Brain Fog: [Read more…]

Some Common Bad Money Habits

Tom Corley boats - crop

Thanks to my Rich Habits Poor Habits research, I have accumulated a lot of data on bad money habits. Below is a list of some of the most egregious Poor Money Habits: [Read more…]

Good Habits Make Getting Rich Easy

Tom Corley boats - crop

On the face of it, running three miles is nothing special. What makes it special, however, is when you run three miles every day for, say twenty years.

Habits get a bad rap. Because they are routine behaviors, few give them their due. And that’s too bad because habits are truly an amazing evolutionary invention. Good habits are the most important advantage the rich and successful have over everyone who isn’t rich and successful.

There’s a very good reason why our human brains create habits. Habits have a purpose. Habits allow each of us to perform tasks without thinking and this saves the brain from having to do work, allowing it to conserve precious brain fuel (glucose and ketones).

In a very famous study on habits, conducted by Duke University in 2006, it was determined that an average of 40% of all daily human activities are habits. Habits include both physical and mental behavior. These daily habits unconsciously control our lives. Our daily habits, as boring as they may be, are the font of success, failure or mediocrity.

There was a famous author who was asked about his daily routine. He said he woke at 5 am every day and wrote 500 words, which took him about three hours. Barring his infamous vacations and fishing excursions, he did this every day, every weekend, on holidays and even on his birthday. That author was Ernest Hemingway, considered one of the most prolific writers of all time. His books are legendary: Old Man and the Sea, Farewell to Arms, A Moveable Feast, The Sun Also Rises and For Whom the Bell Tolls are perennial classics that fill libraries and bookcases around the world.

His three hour a day writing habit doesn’t seem that extraordinary. In fact, many reading this probably work far more than three hours a day. Yet, that one small daily habit, performed relentlessly over the course of Hemingway’s lifetime transformed him from ordinary to extraordinary.

That is the power of habits. As I explain in my book Rich Habits, just one good habit can transform your entire life. It can take you from ordinary to extraordinary, poor to wealth, unhappy to happy. And the beauty of habits is that they are not work. They do not require some exceptional discipline or unimaginable willpower to force their engagement. Because they’re habits, you just do them, without thought, every day.

Success is a process. And by developing a few good habits, it’s a process that doesn’t have to be excruciatingly hard. Habits put success on autopilot. They make success easy

The Rich Believe in Luck

Tom Corley boats - crop

If you’re going to have beliefs one you must have, if you want to become rich, is to believe in luck. One of the fascinating things I discovered in my Rich Habits research was that virtually every self-made millionaire, at some point, got rich because they got lucky.

  • 84% of the rich attributed their good luck to their daily habits.
  • 87% of the rich said they were lucky.
  • 92% of the rich said they created their own luck.

The rich do not believe random good luck plays a role in wealth creation. They do believe, however, that you create your own luck. There are many ways the wealthy create their own luck:

  • Pursuing a Dream – Luck visits dreamers who take action on their dreams.
  • Forging Habits Around Your Dreams – Good habits are like snowflakes on a mountainside. You don’t notice the accumulation of good that they do until they produce an avalanche. Good habits create an avalanche of good luck.
  • Building Relationships with the Right People – Who are the right people? They are success-minded people who can open doors for you through their relationships. Good luck likes to associate with positive, upbeat people.
  • Learning New Things – Learning something new opens your eyes to opportunities. Opportunity is the home good luck resides in.
  • Taking Calculated Risks – Calculated risk is a type of risk that requires you to do your homework. Good luck finds the prepared.
  • Finding a Mentor – Mentors open up doors for you and steer you down the right paths in life. Good luck will find you if you are on the right path and will avoid you if you’re on the wrong path.
  • Being a Mentor – Mentees eventually become experts. Like mentors, mentees can open up doors for you. Good luck is often found behind those closed doors.
  • Staying Upbeat and Positive – Negativity shuts down part of your prefrontal cortex and effectively blinds you to opportunities. Good luck only visits optimists.
  • Staying Focused – Focus allows you to accomplish and learn things very quickly. Good luck always finds the most focused individuals.
  • Be Persistent – Devoting yourself to one thing for many years gives luck a chance to happen. The law of averages only works if you keep showing up. You have to keep taking swings day after day, month after month and year after year. Good luck always finds the persistent.

 

Strategies Millionaires Use to Avoid Making Costly Mistakes

Tom Corley boats - crop

When you do things wrong, too often, those mistakes can offset all of the good you’ve done. Mistakes set you back. If you make too many mistakes it can lead to failure.

One of the keys to success, therefore, is to minimize mistakes. Making fewer mistakes allows you to keep moving forward in life.

In my book Change Your Habits Change Your Life I share numerous strategies the rich use to minimize mistakes. Below, I’d like to highlight three of the most powerful ones:

Study the Experts

There are two ways to learn:

  1. Learn by doing (school of hard knocks learning) or
  2. Learn from the experts.

The school of hard knocks is the hard way to learn. In the school of hard knocks you learn by making mistakes. The problem with the school of hard knocks is that by the time you figure out what to do and what not to do, you could very well run out of time and money, leading to failure or bankruptcy.

When you study what the experts in your company, field or industry do, however, you learn without the heartache and without the loss of time and money. Reading books, reading industry trade magazines, reading blogs related to your field or reading any articles related to how you make a living will save you from making costly mistakes that can set you back.

Studying the experts allows you to stand on the shoulders of those who know what they are doing.

Practice Relentlessly

Practicing over and over again, when no one’s watching or when it doesn’t matter, allows you to perfect your skills without being under pressure to perform. This is one of the many reasons I am so big on volunteering and interning. Volunteering or interning at an organization that allows you to practice new skills or practice improving your existing skills will help you become an expert technician without having to worry about getting fired for making too many mistakes. Non-profits are always looking for volunteers. And they are very patient.

Many large companies offer internship programs. These big companies know their interns have limited skills. Their job is to help them learn the skills they will need to succeed in their organization, should they be hired.

Volunteering or interning at a big company gives you a lot of rope to make mistakes, without those mistakes damaging your career.

Find a Success Mentor

Success mentors have knowledge, experience and wisdom. When you find a mentor they can share with you that knowledge, experience and wisdom. The few who find mentors, learn what works and what doesn’t work. Finding a mentor is the fast track to success. It tees you up for success.

Mentors are everywhere. You just have to seek them out. They are in your neighborhood, volunteering at non-profits, at work, at school, in books and on the Internet. There are five places to find a Success Mentor:

  1. Parents – Parents are often the only opportunity any of us have at having a mentor in life. This is why parenting is so important. Those who are lucky enough to be raised by a parent who mentors them for success get out the gate very early and usually stay way ahead of their competition during their careers.
  2. Teachers – The best teachers are success mentors. Teachers can reinforce the mentoring children receive at home from their parents, or step in to provide the much needed success mentoring absent at home.
  3. Career Mentors – For those not fortunate enough to have had parents or teachers who provided success mentoring, finding someone at work who can act as a mentor virtually guarantees you will become successful. Find someone at work who you admire, trust and respect and just ask them to be your mentor.
  4. Books – Many of the self-made millionaires from my Rich habits study attributed their success in life to self-help, success authors such as Dale Carnegie, Earl Nightingale, Og Mandino or Jack Canfield. They found their mentors in books.
  5. School of Hard Knocks – When you learn good daily success habits through the school of hard knocks you are essentially your own mentor. You teach yourself what not to do. You learn from your mistakes and failures. This is the hard way because those mistakes and failures cost you financially.

Since mistakes set you back, making fewer of them through the strategies outlines above, will help you gain through subtraction. Fewer mistakes saves you time, money and anguish.

 

Poverty & the Wealth Gap – 10 Hard Truths Ignored by Politicians & the Media

Tom Corley boats - crop

I spent five years studying the rich and the poor. In those five years I asked 361 rich and poor people 144 questions each. That’s 51,984 questions. I wanted to find out what each group did from the minute they woke up to the minute they went to bed. From the data I gathered, I was able to identify 344 differences between the way the rich and the poor conducted their lives.

Over one hundred million individuals have read something about my Rich Habits research, which has been cited, quoted, referenced, commended and criticized in 25 countries around the world. As a result, I have a lot of friends and a lot of enemies. And I think I’m about to make some more with this piece.

I was raised in a very liberal household. My father was the Democratic leader on Staten Island. He ran seven political campaigns for Congressman Jack Murphy. He ran Mayor Beame’s Mayoral on Staten Island. I grew up believing that poor people were good and rich people were bad. I was raised to believe that it was government’s job to level the playing field.

But now I don’t believe that anymore. My research opened my eyes. One of the many benefits of having done this research is that I became privy to the inner workings of the lives of the rich and the poor. For five years I was that fly on the wall.

And this fly has identified 10 hard truths about poverty and the wealth gap that no politician or member of the mainstream media would dare reveal.

10 Hard Truths About Poverty and the Wealth Gap

  1. Bad Parents – The poor have parents who simply do not do their job. Drugs, alcohol, gambling and a host of other parent character flaws pulls the rug out from underneath their kids.
  2. Broken Families – The poor are raised in broken families. Divorce, incarceration, abandonment are common denominators among the poor that fracture the family unit.
  3. Bad Mentors – The poor lack good role models to emulate. Again, it all starts with bad parents, but it is compounded by bad actors in the neighborhoods poor people are raised in. Without good parents guiding them, the poor fall into the wrong crowds, who lead them down the wrong path – the path that ends in poverty or incarceration.
  4. Financial Negligence – The poor spend their money as quickly as it comes. They don’t save. They don’t invest. They are financially illiterate.
  5. Poverty Ideology – The poor believe they will be poor their entire lives. They see poverty as a fact of life. They are without hope and thus, without motivation to escape their poverty.
  6. Bad Health – The poor do not exercise regularly. They eat and drink too much junk food. They frequent fast food restaurants. The take drugs and drink too much alcohol in order to numb their pain. They are overweight and out of shape.
  7. Uneducated – The poor do not embrace education. It’s not part of their culture. They do not self-educate themselves. They do not read. They do not engage in self-improvement.
  8. Bad Habits – The poor have many bad habits and few good habits.
  9. Entitlement Ideology – The poor believe they are entitled to things others have to work very hard for.
  10. Victim Ideology – The poor believe others hold them back in life. They see themselves as victims. They look to government to take the wealth of those who are producing and working hard in society and redistribute it to poor people.

I now know that rich people, particularly the self-made rich, are the good people. They were raised by good parents, parents who cared and who mentored them to succeed.

There are outlier issues that cause poverty: pediatric cancer, chronic health disorders and random bad luck. But those, as I said, are the outliers. The vast majority of poor people are poor because they were raised by bad parents. Some were raised in broken homes, some were raised with little to no work ethic, some were raised to be ignorant of finances, some were raised with a poverty mindset, some were raised to disregard their health, some were raised to shun education, some were raised with bad habits, some were raised to believe they should be given free stuff and some were raised to believe the world was aligned against them.

We don’t have a wealth gap in this country. We have a parent gap. If, as a society we truly want to end poverty, we have to first acknowledge the cause of poverty. Parents. Parents cause poverty. Parents are to blame. As a great man once said, “the truth shall set you free.”

Why Entrepreneurs Fail

Tom Corley boats - crop

I interviewed 177 self-made millionaires over a five year period to find out what they did to become rich. . It was an eye opening experience and I wrote a few books about what I learned.

In my study, 51% of the self-made millionaires were entrepreneurs, meaning they made their wealth starting and running their own companies. I not only learned what the rich did to get rich, I also learned about all of their mistakes. And there were a lot of mistakes. I thought I’d share some of the lessons these self-made entrepreneurs were kind enough to share with me:

Pick Your Partners Very Carefully

Success is much easier when you have great partners. Failure is inevitable when you have bad partners. In any new venture pick partners who know what they are doing, have little baggage, have a positive mental outlook, are success-minded and have a hard work ethic. Pick partners who have been there and done that. Never go into any new venture unless your partners have real-world experience in that industry.

Success Requires Risk and Sacrifice

You cannot succeed without taking risk and making sacrifices. The sacrifices you will have to make are many. The most significant will be time away from family and friends.

Trust Your Gut

By gut, I mean your subconscious mind. Your subconscious mind picks up things that are otherwise invisible to you. Always listen to that voice in your head. It is your gut telling you what to do or what not to do. That voice becomes loudest when your emotions are at their greatest.

Success Takes Far Longer Than You Expect

Success takes a long time. Far longer than you expect. See Rule of Three below.

The Pursuit of Success is Very Stressful

Things will go wrong. When they do, they create enormous stress. That stress affects you, your loved ones and your business partners. It will negatively affect your health unless you mitigate it by exercising every day.

Fund Your Business with Your Own Money

When you are the source of your working capital, you are in control. When you depend on others for your working capital, they are in control. You will have to do what they tell you to do. You are their slave.

Assumptions Have No Value

Assumptions can cause you to look at things through rose colored lenses. Most assumptions in a business plan are wrong almost 100% of the time. Always pilot test every assumption before you accept it as fact.

The Pursuit of Success is Exhilarating

There will be ups and downs along your path towards success. More downs than ups. But the ups make it all worthwhile.

Success Requires Good Luck

In the pursuit of success, unexpected things happen. Sometimes they are good and sometimes they are bad. To some extent, success and failure are outside your control. Luck plays a critical role in success.

Failure is Humbling – It Can Drag You to Your Knees

Failure is an emotional experience. It can take the financial legs out from underneath you and your family. It can destroy your life..

You Must Overcome Adversity

Obstacles, pitfalls, wrong assumptions, mistakes and the unexpected can stop you in your tracks. Sometimes you can overcome those hurdles and sometimes you cannot. Those who succeed are able to overcome adversity. Those who are unable to overcome adversity, fail.

Be in Control of Your Business

Control means owning more than 50% of your business. Those who have ownership control of your business, control your business, your future and your life.

Pilot Every New Idea

Test new concepts first before diving in full-time into any venture. Dive in full-time only when the business model has been proven to work.

Have Fallback Savings

In every start-up, things will go wrong. Make sure you have set aside funds to help you and your family survive if you fail.

Understand the Rule of Three

It takes three times as long as you think, costs three times as much as you expect and revenue and profits will be one-third as much as you anticipated.

Business Plans are Worthless

Business plans are not worth the paper they written on. Never go into any venture solely on the basis of a business plan.

Have a Powerfully Strong Marriage

If you are married, make sure you have a strong marriage before pursuing any venture. If you have a weak marriage and things go wrong, it can jeopardize your marriage.

Go Lean

Don’t hire anyone. Use subcontractors. Don’t rent. Work out of your home.Only hire employees when you are succeeding and the business model has been proven to work. Work out of a shack if you have to until you have a steady revenue stream.

Keep in Constant Contact with Your Network

Pursuing success demands a great deal of your time. It’s easy to lose contact with your friends and former colleagues. Don’t ignore your relationships. You will be calling them to help you find a job if the business fails.