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James knew a very successful businessman, making around $100 million a year in revenue. The man would send out gifts to all of his key contacts, of whom James became one.
James responded with a handwritten thank-you note, which surprised the giver. James was the only person who ever wrote back to him, he said, which in turn surprised James.
This inspired James to ask for a meeting. Because he wanted to find out: how does one build a 100-million-dollar-revenue business?
Table of contents
1. Seeking the elusive Holy Grail
2. When people get excited for no reason…
3. Put some thought into where you’re going
4. Being observant is an advantage
5. The power of sustained effort
6. Who’s your best customer?
7. Taking things to the edge
8. It’s all about control
9. Some truths about people
10. A simple but effective way to manage tools
11. A study in contradictions
12. Leverage, and using “we”
13. Smart ways to think
14. On stimulation and having choice…
15. Listening, interaction, soft selling and adaptation
Seeking the elusive Holy Grail
This was in 2001.
James went to the guy’s office and asked outright, what is in the black box?
You’re here for the Holy Grail? asked the businessman.
James said he was.
It doesn’t exist, was the answer. And the sooner people realized that, the sooner they could start on the real path to success.
For the next few hours, and for a period of four years during which James worked for him, the businessman shared some transformative philosophies with James about hard work and persistence, which reshaped James’s life and inspired him to share these insights in this podcast episode.
Having since left employment and transitioned fully online, James has found the wisdom his former boss imparted still relevant today. In fact, revisiting those lessons a decade later, James is amazed at how accurately they continue to guide his path.
When people get excited for no reason…
James’s boss talked to him about cycles of irrational exuberance, where people become wildly enthusiastic over things without logical reasons, only for everything to come crashing down. The Tulip Craze was one such example.
This awareness has kept James from acting unwisely during tech bubbles, property cycles, and crypto crazes, knowing that irrational enthusiasm often leads to disappointment.
James learned, too, that people sometimes abdicate responsibility by placing blind faith in systems or employers, essentially “phoning it in.” Responsible business owners and managers can’t afford this mindset, which is reflected in the fewer sick days they take compared to employees at lower levels.
Put some thought into where you’re going
Success, said James’s boss, requires showing up and making thoughtful decisions about where to focus your efforts. A helpful analogy is to imagine being in Grand Central Station, choosing a destination on the board, and then boarding a train that aligns with your goals.
The journey won’t always be clear, but it is crucial to know what you don’t want, so you can avoid finding yourself somewhere undesirable. It’s important to carefully plan your next steps and head in the right direction.
When faced with choices, it’s essential to weigh the risks and benefits. For instance, staying in a safe job might seem secure, but sometimes riskier paths offer greater rewards, even if the journey is unconventional. Like a Formula One car or a motorcycle, sometimes gaining momentum makes navigation easier. By speeding up and steering your career towards a clear goal, you’re more likely to reach the destination you’ve set for yourself.
Being observant is an advantage
Being observant is a significant advantage, as it lets you stay aware of your surroundings and respond effectively. James’s boss was hyper-observant and noticed the tiniest details from afar. People often miss critical data, patterns, and market changes because they don’t pay enough attention.
Observing and adjusting quickly is especially crucial in dynamic fields like online business. Enhanced awareness can be cultivated – James recalls his grandfather, who sharpened his hearing to “supersonic” levels to compensate for poor eyesight. Being able to spot changes and adapt swiftly leads to better decision-making and a proactive approach to challenges.
The power of sustained effort
James’s boss believed every action should have a clear purpose, and that sustained effort has power. Drawing from the example of winemaker Max Schubert, who continued perfecting his Grange wine despite early rejection, the lesson here is to believe in your long-term goals. Schubert’s persistence led to a winning wine that is now nearly impossible for others to replicate, because such expertise can only be achieved through time and dedication.
Shortcuts, on the other hand, often yield superficial results and can lead to misleading claims of expertise. True mastery requires patience and a willingness to do the hard work. Building momentum over time creates a strong “flywheel” effect, a competitive advantage that’s hard to disrupt.
A strong brand like Mercedes-Benz, which has been around for over a century, reflects this principle well. Consistent, sustained effort builds a reputation that can’t be matched by newer, less-established competitors. In business, this approach to lifetime value creates long-term success, with steady, reliable growth month after month.
Who’s your best customer?
The best customer is the one you already have. When you embrace a recurring subscription model and maintain strong relationships with existing clients, you can eliminate the need to constantly pursue new customers. This simplifies business operations, letting you focus on a well-managed offering that provides exceptional value to a loyal customer base.
Maintaining these high standards calls for firm commitment to quality and a refusal to compromise with problematic clients. A difficult customer will often remain unsatisfied, no matter the effort you put into meeting their demands. It’s better to sever ties early than to compromise your values and endure headaches later.
This proactive approach protects the integrity of your business and ensures you only work with clients who value your product or service.
James recalls an instance on his former job when a customer refused to believe a secondhand vehicle was in perfect condition. He insisted it had been in an accident. James’s boss stood firm, refunded the customer, and resold the car to someone who appreciated its quality. He stuck to his values, recognized a bad client, and acted swiftly to prevent further conflict.
Taking things to the edge
“Brinkmanship” refers to pushing limits. For James, it conjures up a small pilot boat guiding a large ship through the harbor – capacity beyond its size.
While not fitting the usual image of an “alpha male,” James’s boss wielded influence through his commanding attitude and strategic mindset. He often referenced Patton and the idea of overcoming obstacles, likening constraints to “donkeys on the bridge” that must be swiftly removed.
James’s boss also stressed the pitfalls of arrogance and ignorance, using Titanic Captain Smith as a cautionary example. Success can lead to arrogance and self-importance, while ignorance blinds us to unseen risks. James refers to the Johari Window framework – without recognizing blind spots, one can be caught off guard by unforeseen challenges, with devastating consequences.
It’s all about control
“Own The Racecourse” embodies the principle of control. While James is readily identified with the concept, he says it came from his boss. If you own the racetrack, it matters little which horse wins or loses – you’re profiting from all participants through tolls and rent.
The idea applies online, too, where one needs to balance control over one’s own website and content while leveraging external platforms wisely.
While prioritizing his website over social media presence, James ensures he maintains control over his core assets, like email lists and content. He collaborates with the platform, KLEQ, to handle technical details while retaining ownership.
Some truths about people
Avoid treating people like just another number in a system, says James. Instead, create memorable experiences that don’t make customers feel like they’re being churned through a turnstile. Using terms like “company policy” is a red flag that dehumanizes interactions. It’s crucial to strike a balance between efficient processes and a personal touch.
People tend to perform to the level inspected, not merely expected, said James’s boss. While micromanaging isn’t necessary, regular feedback, data inspections, and audits ensure quality. For example, a Slack approval channel helps provide constructive feedback, and periodic financial audits prevent fraud.
Rewarding desired behavior consistently, whether with bonuses or recognition, reinforces positive patterns in team members, family, or even pets.
James’s boss maintained that sales people either bite back or pull back. Standing firm on values and offering valuable challenges leads to more sales and better profit margins. This approach aligns with research, particularly the Challenger Sales Method, which finds that challenging clients often yields better results.
A simple but effective way to manage tools
James’s boss very sensibly placed items where they were used. In his repair shop, power tools and extension cords were secured to their sockets, preventing them from being carried off and misplaced.
In the same way, for James, arranging essential items like surfboard fins and wax near surfboards streamlines the process of use and eliminates unnecessary steps, reducing friction.
Purging unnecessary information and tools can help maintain mental clarity and prevent clutter. Now that he is the same age his boss was, James finds himself following this example. With age comes wisdom, and leveraging one’s experience helps prevent repetition of past mistakes, while providing valuable insights to younger generations.
A study in contradictions
James’s boss was a study in contradictions, celebrating lack of drama yet often creating it himself. Despite memorably threatening James with a steak knife and drinking heavily at night, he still managed to present himself as clean-cut, always in neatly-pressed clothes and polished boots.
Lessons learned from his boss’s periods of sobriety and order inspired James to achieve a much more balanced, drama-free life.
Whatever flaws he had, James’s boss had built his career patiently, understanding the cyclical nature of business and seizing opportunities during down cycles. Starting as a humble panel beater, he expanded into a franchise by timing his moves carefully. He emphasized, too, the importance of yes-or-no decisions, believing they provided clarity amidst complexity and cut through unnecessary delays.
Leverage, and using “we”
James’s boss was a strong advocate of leverage, using strategic partnerships to create a synergistic business network. Owning both a Mercedes-Benz dealership and a repair shop, he used cross-promotion to drive business between them. He also foresaw the contentious relationship between manufacturers and dealerships, as highlighted in recent legal disputes over customer ownership rights.
His leadership style stressed the importance of the collective “we,” avoiding the words “I” or “you.” He believed in leading by example with punctuality, positivity, and clear communication, particularly discouraging the use of “but,” which he said negated prior statements. He often shared his thoughts and insights with James through handwritten notes, drawing on his passion for reading and writing.
Smart ways to think
James’s boss encouraged independent thinking and emphasized the value of absolute truths. He distinguished between what one believes versus what one knows to be true, committing strongly when he was confident in his knowledge. He likened this to the focused forward momentum of a Formula One car – confidence and forward movement was important. His philosophy was rooted in persistence and eliminating obstacles while enjoying the journey, acknowledging that challenges will arise but can be prepared for and navigated.
Believing in balancing work with leisure, James’ boss partied hard, often with alcohol and other substances. James today much prefers surfing and family time. He gained, however, a valuable lesson, that each day brings an opportunity for renewal, much like Groundhog Day. Striving for a “positive Groundhog Day” has become James’s ideal, where a series of good days could repeat, ensuring fulfillment and happiness in life.
On stimulation and having choice…
There is danger in both a lack of stimulation and over-stimulation. James’s boss believed that without challenging oneself, a person becomes mentally dull and complacent. Conversely, being overstimulated can damage the ability to find peace in silence. He also believed in fighting for choice, and in the value of freedom. James can imagine how he would have responded to lockdowns and government mandates.
Listening, interaction, soft selling and adaptation
James’s boss emphasized the importance of listening deeply, fostering genuine conversations, and valuing the beauty of human interaction.
Along these lines, James advocates for taking deliberate actions, giving careful thought before responding, and avoiding rushed, impulsive decisions.
In marketing, he critiques shallow, spontaneous content and aggressive selling tactics, advocating for a softer, more thoughtful approach that prioritizes authenticity.
James also encourages adapting to societal cycles, understanding the nefarious agendas of some institutions, and resisting their influence.
If you’ve gained anything from this episode, feel free to comment below or to hit reply on James’s email.
And if you have an online business doing $100,000 to $300,000 a year or more, and are looking for growth and support, that’s what James does in his Mentor program, open now.
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