March Book Report for Business Owners and Entrepreneurs!

March 29, 2018

 

 

The Southwest Airlines Way by Jody Hoffer Gittell → Click here to Purchase!

 

Who wouldn’t want to read about the most successful airlines in one of the most competitive industries?! Southwest Airlines has been profitable every year for over 30 years and during the same time period its competitors struggled to achieve even 3 years of profitability. How is that possible even though they are in the same industry using the same airports, same airplanes, same regulations and more?!

 

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So if you were Southwest airlines ✈️(I’m sure you’re thinking “but they are a giant company!” Well no, in 1972 it was just starting as a tiny little company with 3 airplanes- barely able to break even and besieged by larger airlines, out to kill the fledgling) and yet if you were to invest $10,000 in 1972 your $10,000 would have grown to nearly $12 million by the end of 2002! 😱

 

A return 63 times better than the general stock market! This happened despite the fuel shocks, deregulations, labor strike, air traffic control strikes, crippling recessions, interest rate spikes, hijackings, bankruptcies, and 2001 terrorist attacks.

 

It is not just the most successful airline in the world. They are also one of the best companies to work for, winning countless awards. It has the lowest turnover rate of employees compared to any other airlines!

 

So I ask you again, wouldn’t you want to learn from a company who is clearly the king of their industry not just in sales and profitability but also in their workforce with employees and above all, top in customer satisfaction.

 

So many airlines have tried to copy them and yet they still fail because it’s not about the product it’s about the people. Other airlines had everything Southwest had, except for their people!

 

We so often have people coming in from other gyms in Europe- buying our machines for their business, coming in with notepads, cameras and learning and recording everything and yet they still fail.

 

It’s about the people.



 

Sell or Be Sold by Grant Cardone → Click here to Purchase!

 

This is one of those books that doesn’t need to be talked about. I mean this is one of those MUST read sales books that I don’t need to boast about. I put my name behind it that it is a must read and one of the best sales book in existence. This book needs to be studied by everyone, and not just people who are in sales.

 

The fact is that if you are in sales and have not read this book before, you are really not in sales. You are an amateur and are hoping for the best. And now that the market is up, you are actually getting lucky.

 

The best salespeople are not calling themselves salespeople but they are all around us. The president, Mohamed Ali, Gandhi, Martin Luther King, Oprah just to name same great ones. They are really really good at selling.

 

Most people think of sale as a cars salesperson or something…

 

But the greatest ones again do not call themselves a sales person. And if you don’t like sales that’s because you are not good at it however you need it in your life every single day!

 

It is said that the #1 reason why a business or individual fails is because they’re under capitalized. Not true!

 

The truth is: Businesses fail first and foremost because their ideas were not sold quickly enough and in quantities great enough and therefore the company ran out of money. I find it hilarious when people tell me that “I could never be a sales person because I could never work on commission. I am like what do you mean? You’re entire life is a commission there is no salary guaranteed in life there is no promise of money, the whole world is on commission and the whole world is required to sell! It has been said that the best things in life are free, but I do not agree with that. The best thing in life are the those things that are come as a result of a commission from some extra well done effort. Happiness, Safety, a great home, a great family, love, confidence, children, friends, church, community, these are all commissions for someone’s hard work at selling others on a better way of life!

 

True Love-> The ultimate commission is rewarded for those to find a right partner and sell that partner on them, by taking care of that partner, continuing to build that relationship and keep it going. There is no guarantee in life that you will be loved. There is no guarantee that a relationship will get you love

 

First you got to persuade the person to take interest in you.

Then you have to find out what they want and what makes them happy.

Then you have to produce that and keep producing it but somewhere along the line you had to sell that other person on YOU- that you are the ONE for them! And show them that they can trust you to create a life with them! If you succeed you will be guaranteed and assured the commission of love!

 

Health-> It is definitely not a guarantee in life! It is the commission for taking yourself and your mind when a person successfully sells themselves on eating and working out right. He/she will be rewarded with the commission of having a healthy body.


 

Great by Choice by Jim Collins & Morten T. Hansen → Click here to Purchase!

 

Another amazing book by Jim and his team! What I love so much about his books is that he has done many years of research and fact checks everything so he only uses information that is actually backed by countless data!

 

It analyzes companies like Southwest airlines who started with a tiny uniform and 3 airplanes against the giant competitors and dealt with fuel shocks, deregulations, labor strike, air traffic control strikes, crippling recessions, interest rate spikes, hijackings, bankruptcies, and 2001 terrorist attacks.

And if you remember from my book report above about Southwest Airlines, investing in it back in 2002 would have been 63x better than the growth within the general stock market. Better than Walmart, GE, Disney! In fact, an analysis from money magazine showed that Southwest Airlines produced the #1 return to investors of all S&P 500 companies that were publicly traded in 1972 and held that standard for a full 30 years all the way to 2002.

 

So you learn why did Southwest overcome the odds? What did it do to maker its own fate? And how did accomplish its world beating performance when other airplanes did not? Why did Southwest become great, fun, such an extreme environment while its direct comparison Pacific Southwest Airlines failed and was rendered irrelevant despite having the same business model, in the same industry, with the same airplanes and opportunities to become great!

 

The main concept and research of this book is based on this four principles:

  1. Fanatic Discipline

  2. Empirical Creativity

  3. Productive paranoia

  4. Level 5 Ambition

 

These 4 key elements are being broken down and analyzed throughout the book. And this 4 are what were found at every single 10x er company!

 

If you haven’t read “Good to Great” you must read that first and then “Great by Choice”! You will get way more out of it and understand it way easier.


 

The Last Place on Earth: Scott and Amundsen’s Race to the South Pole  by Roland Huntford→ Click here to Purchase!

 

Are you Amundsen or Scott?  

 

(by reading this article you will learn what separates the most successful leaders (top 5%) from everybody else! And why some teams succeed and most don’t. Why people call a successful entrepreneur lucky and why “Just Do It” Nike’s favorite quote doesn’t work! I HIGHLY RECOMMEND YOU READ THIS!

 

These two leaders made their final preparations in their quest to be the first people in modern history to reach the South Pole in 1911.

 

For one team it would be a race to victory and a safe return home. For the second team it would be a devastating defeat reaching the pole only to find the wind whipped flags of their rivals planted 34 days earlier followed by a race for their life a race that they lost in the end as the advancing winter swallowed them up. All members of the second team perished.

 

It’s a near perfect matched pair! Here we have two expedition leaders: Roald Amundsen, the winner, and Robert Falcon Scott the loser of similar ages (39 and 43) and with comparable experience. Both of these teams started their journey basically days apart and yet one team finished with ease and one did not. One blamed it all on bad luck, one did not. Even though they both had exactly the same conditions.

 

So what separated the two leaders? Why did one achieve spectacular success in such an extreme set of conditions while the other failed even to survive? This analyzation is the perfect example of today’s entrepreneurial world! Why some businesses thrive while others fail. And why most people call a successful entrepreneur “lucky” 90% of the time. Even though they all had about the same % of success rate.

 

Amundsen traveled the world with the end in mind to his quest to the pole eventually but he knew before he could achieve that, he must prepare. So he broke it down and went head on by traveling the world! He did a 2000 mile journey on a bicycle, he experimented eating raw dolphin meat to determine its usefulness for energy (in case he find himself in s shipwreck during his journey, he would be surrounded by dolphins so might as well find out to know for a fact rather than not be prepared and leave it up to faith and luck).

 

He even went to live with Eskimos to find out as much as he can about extreme weather. He learned how Eskimos used dogs to pull sleds. He observed how Eskimos never hurried but moved slowly and steadilyto avoid sweating! The sweat could turn to ice in sub zero temperatures. He adopted Eskimo clothing, loose fitting to help sweat evaporate and protect their bodies better. He systematically practiced Eskimo methods and trained himself for every possible situation he might encounter en route to the pole.

 

His philosophy: You don’t wait until you are in an unexpected storm to discover that you need more strength and endurance. You don’t wait until you are in a shipwreck to determine you can eat raw dolphin. You don’t wait until the Antarctic Journey to become superb skier and dog handler. You prepare with intensity all the time so that when conditions turn against you, you can draw from a deep reservoir of strength! AND THAT IS WHAT’S WRONG with today’s business owners. They jump into start a business WITHOUT any preparations!

 

I love Nike’s famous quote: “Just Do It” As famous and cool as it is, it Just Doesn’t Work! In life, in business, in a workout. If you “Just Do It” you leave it up to luck and faith. If you prepare, you leverage your success!

 

Don’t you guys remember Abraham Lincoln!? He said if you give me 6 hours to chop down a tree I will spend the first 4 sharpening my axe!

 

If you Just Do It you gonna get hurt, injured and end up cleaning up your mistakes after yourself. if you even able to recover. So instead of “Just Do It,” plan ahead so you lower your chance of failure! Be proactive.

 

So when conditions turn into your favor can triple down and strike hard! Not just go with the flow. You must leverage both good and bad!

 

So how about Robert Falcon Scott? He presents quite a contrast to Amundsen. In the year leading up to the race for the South Pole he could have trained like crazy on cross country skis and taken a thousand mile bike ride but he did not. He could have gone to live with Eskimos to study and learn but, he did not. He could have practiced more with dogs, making himself comfortable with choosing dogs over ponies. Ponies (unlike dogs) sweat on their hides so they become encased in ice sheets when tethered, struggle in snow and don’t generally eat meat. (Amundsen planned to kill some of the weaker dogs along the way to fuel the stronger dogs! Just like you must fire the weaker employees on the way to fuel the stronger ones, the A players! You can not let the B players bring them down).

 

Scott choses ponies and also bet on motor sledges that hadn’t been fully tested in the most extreme South Pole conditions. As it turned out, the motor sledges engine cracked in the first few days of the months long journey. The ponies failed very early and his team slogged through the most of the journey by man hauling--harnessing themselves to the sleds trudging across the snow and pulling the sleds behind them.

 

Amundsen placed black flags every 8 miles and placed 20 black pennants in precise increments giving himself a target on the way back that hard to miss and can be seen from miles away. Scott did not.

Amundsen store three tons of supplies for 5 men starting out versus Scott one ton for 17 men. Amundsen carried enough supplies to every single depot and still have enough left over for his men. Scott ran everything dangerously close to calculations so that missing even one supply depot would bring disaster.

 

Amundsen didn’t know whats ahead! What kind of terrain, weather, mountains or altitudes he just systematically planned out the journey. Or you could call it a business plan! And Scott did not.

 

Amundsen presumed bad events might strike his team somewhere along the journey and he prepared for them, even developing contingency plans so that the team could go on should something unfortunate happened to him along the way. Scott left himself unprepared (here is WHERE you can see how people run businesses and their life today) and complained in his journal about his bad luck! “ Our luck in weather is preposterous” … How great may be the element of luck!”

 

Keep it in mind that the two team left almost at the same time. And one got there more than a month earlier! While the other complained about bad luck. Even though they had the same conditions leading up to it. They went through the same weather, same route same everything. Just like the 2008 market crash some companies failed and some thrived! Was that luck?

 

On December 15th, 1911 Amundsen reached the South Pole. They planted a Norwegian flag. They left a letter for Scott as an insurance policy in car his team met an unfortunate end on the journey home.

 

He could not have known that Scott and his team man hauling their sleds still 360 miles behind!

 

More than a month later on January 17th, 1912 Scott found himself staring at Amundsen Norwegian flag at the South Pole. “We have had a horrible day” Scott wrote in his journal. And complained about how bad the weather was and indeed by that time the winter hardened and it switched really bad conditions. And said we reached this without a reward of priority.

 

By this time Amundsen and his team were almost completely home. Scott just turned around and headed home.

 

Amundsen reached home base on January 25th as planned out in his journal (aka business plan). Running out of supplies, Scott stalled in mid March both exhausted and depressed. Eight months later a British reconnaissance party found the frozen bodies of Scott and his team. Just 10 miles short of a supply depot.

 

Amundsen and Scott achieved dramatically different outcomes and not because they faced dramatically different circumstances. In the first 34 days of their expeditions they both had exactly the same ratio 56% of good days and bad days of weather. If they faced the same environment in the same year with the same goal the cause of their respective success and failure cannot be the environment.

 

They had way way different outcomes because they displayed very different behaviors as leaders. So keep it in mind it is not about being more creative, visionary, charismatic lucky, heroic, etc. It’s about being prepared by having built a fanatic discipline, empirical creativity and productive paranoia. This is what helps you succeed way more, so those are the skills you must master and plan ahead with.

 

“The Last Place on Earth” by Roland Huntford is an amazing comparative study of these two leaders. A must read book for a wake up call! Your destiny is in your hand!

 

Look into your industry! Is the competition killing it? Did they start when you did? And they are beating you? It’s not luck, you must work on it! Study great leaders and see how they became successful. If you want to achieve amazing success and accomplish goals like the entrepreneurs you look up to and want to have what they have (most people do want it but aren’t putting in the work) “just do it” doesn’t work. If you just want to get by then just do it. Otherwise plan for success be discipline and be patients! Don’t try to sprint through the marathon!

 

 

 

 

 

 



 

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