One of the Most Important Assets Entrepreneurs Can Create
Updated: Apr 13, 2022
By Toby McGlo
When we develop our principles, we build a machine that makes tough decisions easy. Our brains forget details easily. You probably don’t remember what you had for lunch last Tuesday. But you do know, probably intuitively, how you will decide your next meal. Written principles will act as a way for you to find your next meal – financially that is. They act as a crutch for your brain and team. You do less work in the long term depending on what you spend your time building in the months and years prior.
This article will teach you to assemble each screw and gear of your ultimate machine of principles. The idea is that after a few years, you will have an extremely valuable set of values that will help you continue to achieve success.
Focus on the truth.
John F. Kennedy once said, “Too often, we enjoy the comfort of opinion without the discomfort of thought.” This way of thinking happens when we submit to another’s reality. Treat arguments and opinions that you feel discredit your aspirations as worthless. The only truth that matters is your own. By pursuing that truth, you will gain much more in the long term.
These are the points to consider that allow you confidence in your ideas when discussing intangible ideas or ambitions that have yet to be made real.
Is your dream consistent with principles you have adopted so far in your life?
Is your dream consistent with you and your team’s experiences?
Does your dream solve a problem?
Try not to contradict yourself. Write your values and potential principles out. If something you write isn’t consistent with your life experiences or isn’t useful, you don’t need to share.
Focus on underlying principles more and actions less.
When you’re having a disagreement with a partner or maybe you just observe someone do something differently than you, there is no need for a full argument.
We lose a lot of value when we discuss actions during disagreements rather than principles.
It’s more valuable to think about why you’re doing the things you're doing. What intentions and motivations drive your actions? You can often answer this while thinking of your long-term goals. Start asking yourself this question in real-time as you're about to take smaller steps and actions.
Get it in writing.
Video works too. You need to record and share your principles. Feedback and different perspectives should be invited because it’s those moments when we converse about what we value that we learn the most. You can’t grow if you’re never wrong.
Assuming you have the stomach for it, this criticism is comparable to personalized coaching. At the end of the day you should always go to bed caring more about what you think and less about what others think. Still, it's important to listen, learn, and consider another's perspective. That way, you’ll be able to determine if what others say broadens your horizons and can add to and amplify your principles or if their feedback tears them down.
Do this passively, expect the benefits to show in the long term (1-5 years).
Make recording your thoughts a habit.
Avoid making critical decisions without writing about it or speaking with a trusted confidant first. Remember, feedback and criticism is important.
Start group coaching.
Teach to others 60%-75% (cash per year) behind you.
If you make $10,000 a month, coach those making between $6,000 and $7,500 a month.
Why 60% to 75%?
Your advice to someone making anything lower than that amount will usually confuse that student.
If you were able to have a conversation with Warren Buffet, it’d be cool. You’d learn a lot, but not much of the mission critical stuff you need to do to increase sales by 40% in the next year.
Anyone making around the same amount or higher won't benefit from your advice. Chances are someone within 80% to 100% of your range income is already on the right track.
Group coaching keeps you focused on your priorities by holding you accountable. This lets you get your thoughts in order and, thus, learn more about yourself.
Usually when someone is on their deathbed, their biggest regrets boil down to not acting and not reflecting. It’s toxic to act without reflection.
Actions and reflections are like the chicken and the egg. Everything in life comes down to trial and error. You’ve got to improve your chances of success by reflecting on each trial to receive the best rewards possible.
View public scrutiny the way bees see honey.
As you share your principles with the group, you’ll likely attract feedback, and maybe some criticism. Allow it. You want it. That feedback will open your perspective and allow you the opportunity to reorganize your thoughts. You’ll learn more about yourself and gain the ability to express your principles in a way others take kindly.
This is easy to monetize. You should see a return on investment before you start making the most out of your coaching.
Charge fair prices. Determine individualized prices per student or mentee based on that mentee's needs and the degree of coaching they need.
Where to learn more?
Email me: email@example.com
Much of what I write about is compiled from others. Some are my own connections. Send me an email if you have any questions about how to execute the ideas discussed here.
Read the book Principles by Ray Dalio.
Half the book illustrates how getting into the habit of writing and debating principles helped him build his billion-dollar company.
Read the book Your Next 5 Moves by Patrick Bet-David.
He provides a good summary of how principles will help you grow your business in chapter 7. Bet-David’s overview is quick (it’s a 10-minute chapter) and informative if you don’t have the time for Principles by Ray Dalio.
Read the book $100M Offers: How To Make Offers So Good People Feel Stupid Saying No by Alex Hormozi.
Hormozi shares many technical secrets on crafting your offer in this book. This book will also help you with group coaching.