Posts Tagged ‘Wealth’

Time For a Change #16: A Rewarding Business

by William Reed on May 31, 2012

Finding your path of least resistance

To better understand the Wealth Dynamics Square featured here, a brilliant creation by entrepreneur and founder of Wealth Dynamics, Roger J. Hamilton, it is best to start with the Wealth Dynamics Profile Test, which gives you a measure of where you start, and how far you can go, as well as which direction represents your path of least resistance to Wealth.

Even if you are not an entrepreneur, it will help you understand Wealth Creation, which is a major function of any business, and increasingly an imperative for educational institutions and non-profit organizations, which cannot depend on donations to keep their operations afloat.

There isn’t space here to go into the details of the 8 profiles, except to note that they are supported by successful entrepreneurs and business models in each category, and based on the concepts developed by Carl Jung, and derived from Asian philosophy. More importantly, the Wealth Dynamics Square is like a codex for understanding how people interact with people to create the ideas, networks, products, services and systems that make the business world go around.

Keeping your perspective

There are so many elements to manage in business that it is easy to lose your perspective. By focussing too much on one area at the expense of others, it is easy to win the battle but lose the war. The Mandala Chart can give you flexible focus, like a zoom lens which can look at the bird’s eye view of the whole, the insect’s eye for detail, and the fish’s eye for the connections.

As a guide to navigating and actually applying the concepts in the Wealth Dynamics Square, I suggest 8 categories you can use for Business: Value, Leverage, Wealth, Business Model, Strategy, Platform, Resources, and Network. Download a BUSINESS MANDALA featuring key questions for each of these categories, so that you can begin to create your own customized approach to a rewarding business.

A. Value

Without value you have no business. The challenge is that the value that is obvious to you may not be obvious, and may not even be noticed by the people who have the ability to pay for it. To be successful you need to create value, brand and package it in a way that is easy and attractive for others. This is an ongoing process, if your business is to survive the eroding forces of competition and shifting values. You must have energy and commitment to be at your best.

➀ What is your Wealth Profile, your path of least resistance?

➁ What is your personal platform, you means of showing your value to others?

➂ What is your process and plan for increasing your value over time?

Click here to find out more about the Wealth Dynamics Profile Test.

B. Leverage

Value without leverage is mere potential, a good idea waiting to be implemented. Leverage is how a concept is made known, tangible, deliverable, and ready to use or consume. Leverage is made possible by working with people in complementary profiles who can carry the concept forward into action. It depends on trust, tools, and systems for reliability.

➀ Which profiles offer the most leverage for your value?

➁ What strategies outside of your profile can you engage in to increase your leverage?

➂ What is your process and plan for increasing trust among your leverage partners?

C. Wealth

According to Roger J. Hamilton, Value X Leverage = Wealth (V x L = W). This is higher level of value for business partners, customers, and society, and the reason why a business stays in business. It is also what contributes to the lasting value, or legacy of the business.

➀ What types of value will you create for your business partners and stakeholders?

➁ What type of value do you create for your customers?

➂ What value do you create for society, and what legacy will you leave?

D. Business Model

All successful businesses operate on a structure, or business model that keeps processes running smoothly, and is the key to duplication, repetition, and sustainability. Some business models can be copied, as often happens with franchises. However, the ultimate success depends on the people involved, and not the mechanics of the business.

➀ What are the key elements and processes in your business model?

➁ Can you articulate them in the Business Model Toolbox?

➂ Do you have agreements or contracts in place to communicate and protect your business model?

Click here to learn more about business model generation, as well as tools for generating your own business model.

E. Strategy

While the business model is the vehicle, strategy is the map, the plan that shows where you are going and how you will get there. Strategies should allow flexibility to adapt the plan as you go, without losing sight of the end goal.

❐ Do you have scenarios and simulations for your business potential?

❐ Do you have a business plan?

❐ Do you have a platform for implementing your Strategy?

Click here to learn about a tool that can give you Accelerated Action with GOALSCAPE

F. Platform

In a world which is flooded with information and driven to distraction, you need a platform to be noticed, and to attract people to your products and services. Although there seems to be no limit of choices in how you build your digital or analog platform, the options are increasingly affordable and provide greater reach at a lower cost. The effectiveness of your platform depends on having a sound business model and a good strategy.

❐ What is your digital platform, website, social media, software?

❐ What is your analog platform, brochure, business card, one sheets?

❐ What is your process and plan for leveraging your platform?

G. Resources

No business can last without resources, not only financial, but information, contacts, ideas, all of the things that support and sustain your business as it grows. Pay close attention to and protect your resources.

❐ Do you keep an inventory of your resources?

❐ Do you polish, protect, and use your resources?

❐ What is your process and plan for outsourcing when you do not have particular resources?

H. Network

Ultimately it is the people in your network who make everything possible for your business. You need to identify who they are, and take care of your network well if you would have people take care of you in turn.

❐ Who are the people that can help you?

❐ Who are the people that you can help?

❐ Do you have a process and plan to cultivate and increase your Wealth Network?

Click here to read about the anatomy of your Wealth Network

Developing a rewarding business is hard work, but it becomes easier once you identify and coordinate the elements that support it. The great thing about being or even thinking like an entrepreneur is that you navigate your own course, rather than following instructions to navigate someone else’s course. Use the Business Mandala to keep your perspective and develop your work into a rewarding business.

The power of acknowledgement in creating wealth cannot be over-emphasized. A simple story from a mentoring client will help illuminate. Bob (not his real name) is a commercial banker. He wants to both grow business and advance his career. One on-going thread running through our discussions is differentiating the creation of wealth vs. accumulating money, more on that later. Bob has a new associate, Carl (again, not his real name) who essentially is in training and comes from a sales background. Carl is very aggressive about closing the deal and has a strong focus on winning.

Buried Treasure

Bob decided to do some prospecting and ended up calling on someone with whom Carl had already spoken. In fact, Carl had met or called this person 5 times and felt there was no chance of getting a sale from this prospect. Bob met with the prospect, a CPA with 5 employees, and simply asked if she would be willing to share how day-to-day life is going in her firm. They ended up talking for 1.5 hours! As Bob listened she went from day-to-day issues to talking about where she’d like to see her firm be in the long run. Bob now has a meeting planned where she will discuss the SWOT (strengths-weaknesses-opportunities-threats) analysis of her situation and he will help her refine it. He has yet to mention one product the bank offers! There is little need. She’s engaged in commerce. The reality of her financial needs will surface as the conversation progresses and Bob’s bank simply becomes a tool for helping this client grow her business and add to community.

Carl has been humbled and is walking around quietly confused with his tail between his legs. Bob’s strategy is to keep Carl apprised of the conversation with the CPA but hold him at bay by insisting he just observe and write lessons-learned in terms of how acknowledgement supports growth and how its absence can be damaging.

Lessons Learned

There are many lessons to be learned from this situation. Here are a few:

  • A sales transaction is simply an exchange of a good or service for money. The relationship ends once the exchange is over.  The relationship has to be re-established for the next sale. Also, commercial banking products are a lot like project management tools and bottles of cooking oil. Everyone has them. In a sales-driven environment people will switch for a penny-a-bottle difference.  Acknowledgement creates value which differentiates you from the competition.
  • Acknowledgement creates interdependence which leads to:
    • A feed forward relationship (trust-based) that is free of skepticism and runs much faster than a feedback relationship.
    • Success feeding on itself, leading to growth.
    • Health. A great deal of stress is removed since a safety net of relationships can be built. This, in turn, lowers suspicion and skepticism. The fight-or-flight reflex is calmed. When only sales-driven the stress returns immediately.
    • A dynamic relationship where spontaneity increases leading to more options for the future.
    • An increased probability of reading the all-important weak signals so essential to adapting and making necessary changes along the way.

One CAN be sales driven and accumulate money. There is a catch, and it is a big one. To succeed it is essential to be the 800-pound gorilla, e.g., Wal-Mart, since loyalty is absent. For the rest of us to sustain it is better to focus on helping others to get what they want, embed our rewards in the transaction, and nurture the relationship. Acknowledgement is a key tool in that process.

This blog closes with the challenge from the previous blog. How much time are you willing to spend acknowledging others? Who would you pick? Why?  And I’d like to add one more question, “Why would they want to work with you?”