Step FIVE: Your Quantum Leap Action Plan – Dan Pena’s QLA Model [Summary]

YOU WALK YOUR TALK AND YOU NEVER NEVER NEVER NEVER NEVER NEVER EVER SHARE YOUR DOUBT. NEVER. NO MATTER WHAT HAPPENS. YOU NEVER SHARE A DOUBT ABOUT A BUSINESS PROPOSITION WITH ANYBODY EVER. UNDER ANY CIRCUMSTANCES. NEVER. NOT EVEN WITH YOUR SPOUSE.

7 Steps to Super Success – Dan Pena’s QLA Model [Summary]

Dan Pena’s QLA Model gives out 7 steps to super success that you can take to create quantum wealth for yourself. I have summarized all the seven steps with great precision. This is the FIFTH STEP of a series of steps I have shared on CREATEQUANTUMWEALTH.COM [my website]. Subscribe to the newsletter of my website for all the notes of all the 7 steps to super success, and for more wealth creation tips.

STEP FIVE: Your quantum leap action plan

IF YOU CAN’T BUY HAPPINESS WITH MONEY, YOU DON’T KNOW WHERE TO SHOP.

QUANTUM LEAP THINKING CAN BE BROKEN DOWN INTO VERY SIMPLISTIC PRECEPTS. 

UNLESS YOU ARE A COMPANY LIKE DELL, INTERNAL QUANTUM LEAP IS VERY DIFFICULT. 

GROWTH IS – GROWING AS FAST AS YOU POSSIBLY CAN, DOING IT MORALLY, ETHICALLY AND LEGALLY. WHEN YOU GROW EXPONENTIALLY, YOUR EMPLOYEES ALSO START EXPECTING EXPONENTIAL GROWTH. 

DAN ALSO BUILT AN IN-HOUSE ACQUISITION TEAM. 

GO PUBLIC AFTER YOU BUY A NEW COMPANY. BUY COMPANIES FOR 6 TO 8 TIMES CASH FLOW. IN PUBLIC ARENA, YOU BUY COMPANIES FOR 15 TO 50 TIMES EARNINGS. IN PRIVATE ARENA, YOU BUY COMPANIES FOR 4 TO 8 TIMES CASH FLOW. IF YOU’RE IN COAL INDUSTRY, YOU’RE WORTH 8 TO 10 TIMES EARNINGS. IF YOU’RE IN HIGH TECH, YOU’RE PROBABLY 25 TIMES EARNINGS. IF YOU’RE IN SERVICE BUSINESS, YOU’RE BETWEEN 10 & 18 TIMES EARNINGS. THE MARKETPLACE DETERMINES THESE RATES.

EXAMPLE: LET’S SAY WE’RE GOING TO BUY YOUR COMPANY WORTH 5 MILLION DOLLARS. BUT YOU NEGOTIATE HARD AND WIND UP GETTING 8 MILLION DOLLARS. WHO CARES? WE’RE GOING TO SPIN IT OFF AT 20 TIMES WHEN WE GO PUBLIC. IT DOESN’T MATTER FOR WHAT YOU BUY A COMPANY IF YOU’RE GOING PUBLIC. THE MICRO STUFF ISN’T THAT IMPORTANT. GOING PUBLIC IS WHAT AMERICA IS ALL ABOUT. THAT’S WHERE THEY’RE CREATING CAPITAL.

DAN LIKES A BUSINESS THAT YOU CAN’T GET A HOLD OF THE NUMBERS, IN WHICH YOU CAN WRITE ANYTHING ABOUT IT AND NOT BE LYING, LIKE FICTION

AFTER TAX EARNINGS ARE ALWAYS NET

WE WANT YOU TO COME UP WITH A BREAKTHROUGH STRATEGY ON HOW YOU CAN MAKE YOUR BUSINESS GROW AND WHAT YOU CAN DO WITH IT. 

PHYSICISTS STUDYING QUANTUM MECHANICS NOTE THAT PARTICLES MAKE THESE JUMPS WITHOUT APPARENT EFFORT AND WITHOUT COVERING ALL THE BASES BETWEEN THE STARTING AND ENDING POINT. THAT’S WHAT HAPPENS IN QUANTUM PHYSICS. THE ATOMS AND THE NEUTRONS JUST BOUNCE ALL OVER. THEY DON’T HAVE THE ENERGY AND THAT’S WHAT YOU SHOULD START TO THINK LIKE. IF IT MEANS TURNING THE BUSINESS OVER TO YOUR PARTNER OR YOUR EMPLOYEES, YOU’VE GOT TO THINK THAT WAY. 

QUANTUM LEAPS REQUIRE YOU TO TAKE THE OFFENSIVE. YOU CAN’T ACHIEVE EXPONENTIAL GAINS AND YOUR SUCCESS FROM A DEFENSIVE POSTURE. YOU CAN’T REMAIN IN A PASSIVE STANCE AND MAKE A QUANTUM JUMP.

MOST PEOPLE PLAY NOT TO WIN. THEY PLAY NOT TO LOSE. THEIRS IS A DEFENSIVE POSTURE OF NOT LOSING THE ASSETS THEY HAVE BECAUSE THEY HAVE NO CONFIDENCE THAT THEY CAN DO IT AGAIN OR THEY KNOW THEY GOT WHAT THEY GOT BY LUCK AND NOT DESIGN. IF YOU’RE CONFIDENT, YOU CAN DO IT AGAIN, AND IF YOU’RE CONFIDENT HOW YOU DID IT, THEN YOU DON’T WORRY ABOUT THESE THINGS. DAN HAS NO DOUBT THAT HE WILL BE SUCCESSFUL IN ALL THE VENTURE HE GOES INTO.

DAN KNOWS HOW TO CREATE A TEAM

DAN KNOWS THAT STRUCTURE FOLLOWS STRATEGY

DAN UNDERSTANDS THAT THE GOALS DON’T HAVE TO BE REALISTIC

DAN KNOWS HOW TO MOTIVATE PEOPLE —  USING MONEY

DAN KNOWS IT’S EASY

QLA IS DIFFICULT FOR SOMEONE THAT DOESN’T KNOW IT’S AS EASY AS IT IS TO COMPREHEND. SOME OF THE PEOPLE UNDERSTAND HOW EASY IT IS AND THEY DON’T WORRY ABOUT MAKING A MISTAKE BECAUSE IT DOESN’T MATTER WHAT THE MORONS SAY. SOMETIMES THE MORONS ARE YOUR SPOUSES OR YOUR PARENTS OR YOUR BUSINESS PARTNERS OR YOUR FRIENDS. 

EVERYONE IS CAPABLE OF TAKING A QUANTUM LEAP. EVEN THE MOST DOOFUS. MOST OF THE HIGH-PERFORMANCE PEOPLE WON’T TELL YOU HOW EASY IT IS BECAUSE THEY DON’T WANT TO EDUCATE YOU, BECAUSE IF EVERYONE GETS EDUCATED, IT’S GOING TO BE HARDER. IT’S NOT THAT HARD. YOU ARE READY TO MAKE THE MOVE NOW.

DON’T WASTE TIME ON THINGS YOU CAN’T CHANGE. THEREFORE, IT’S CRITICALLY IMPORTANT THAT WHEN YOU’RE WORKING ON YOUR GOAL PLAN, PUT A COLUMN ON THE RIGHT-HAND SIDE [DOOFUS COLUMN], AND MAKE SURE YOU DON’T INCORPORATE THOSE PEOPLE OR ENTITIES IN YOUR CHANGE BECAUSE YOUR PLAN HAS GOT TO BE CHANGED. IF YOUR PLAN DOESN’T SHOW AND DICTATE CHANGE, THEN YOU’RE NOT DOING SOMETHING RIGHT. BY DEFINITION, YOUR PLANS GOT TO SHOW CHANGE. 

TO ACHIEVE HYPERGROWTH, YOU MUST DIVERT AVOIDABLE MISTAKES AND LET YOUR SUCCESSES RUN THEIR COURSE. SOME THINGS YOU ARE DOING ARE HAMPERING YOUR SUCCESS, LIKE DEALING WITH A BANK THAT CAN’T TAKE YOU TO THE NEXT LEVEL. YOU CAN AVERT THAT BECAUSE THAT’S AN AVOIDABLE MISTAKE. YOU CAN KNOW INTELLECTUALLY THAT SOMETHING SHOULD BE DONE. IF YOU STAY WITH THAT BANK, OR IF YOU STAY WITH THAT LAWYER OR WHOEVER ELSE THAT IS NOT TAKING YOU TO THE NEXT LEVEL, YOU’RE WASTING YOUR TIME. YOU CAN CHANGE THAT. SO THERE ARE CERTAIN THINGS YOU CAN AVOID OR CHANGE IN YOUR LIFE.

CONCENTRATE ON YOUR FUTURE SUCCESSES AND FORGET ABOUT YOUR PAST FAILURES. MOST PEOPLE HAVE BUSINESS FAILURES. SOME HAVE GREAT SUCCESSES. HUMAN NATURE HAS A TENDENCY TO MAKE US SPEND TIME GIVING OURSELVES A PAT ON THE BACK. WE SHOULD ALSO PRAISE OURSELVES FOR OUR SUCCESSES. BUT YOU SHOULDN’T DWELL ON ANYTHING THAT YOU’VE DONE WRONG. ONLY THINK ABOUT WHERE YOU GOT TO GO NEXT. 

YOU GOT TO HAVE BURNING DESIRE AND TOTAL COMMITMENT. 

TWO BASIC WAYS TO RUN A BUSINESS:

  1. THE BOSS SETS THE GOALS AND EVERYONE ELSE FOLLOWS
  2. ASK THE LOWER LEVEL EMPLOYEES TO STATE THEIR OBJECTIVES AND THEN MOVE THE PLAN UPTO THE NEXT LEVEL UNTIL IT REACHES THE TOP

MOST PEOPLE RUN THEIR BUSINESS IN AN AUTOCRATIC WAY AND DON’T GIVE A DAMN ABOUT ANYBODY FOR WHOM THEY SET THE GOALS. 

WHEN DAN STARTED GREAT WESTERN AND ACQUIRED EMPLOYEES, HE BECAME A MACRO MANAGER. NOT MANY PEOPLE ARE GOOD AS MICRO MANAGERS. THAT’S A CERTAIN MINDSET THAT CAN BE DEVELOPED OVER 5 TO 20 YEARS. REMEMBER: WE’RE THE PROBLEMS. WE SCREW UP OUR BUSINESS. NOBODY ELSE. 

MANAGEMENT BY OBJECTIVE WORKS IF YOU KNOW THE OBJECTIVES. 90% OF THE TIMES, YOU DON’T KNOW THE OBJECTIVES. 

STRUCTURE FOLLOW STRATEGY. E.G. NASA FOLLOWED PRESIDENT KENNEDY. THREE GREATEST SALESMAN IN THE WORLD: HITLER, MUHAMMED & CHRIST. QUANTUM THINKING WORKS.

THESE ARE THE THINGS YOU CANNOT DELEGATE:

  1. STRATEGIC PLANNING/ SYSTEM [HAS TO COME FROM YOUR MIND]
  2. CONTROL AND ACCOUNTABILITY OF THE SYSTEM [YOU’RE RESPONSIBLE]
  3. SYSTEM TO GROW MANAGERS [NURTURE 2 OR 3 AT A TIME. CHRIST HAD 12 DISCIPLES]
  4. CARE & FEEDING OF THE CORPORATE CULTURE [CEO SHOULD ALWAYS BE LOOKING FOR DEALS & MONEY TO GROW HIS COMPANY]

DUE TO PRECONDITIONING AND ALL THE FAULTY KNOWLEDGE THAT WE ARE GIVEN, WE SPEND TIME RUNNING THE BUSINESS. THAT’S NOT WHAT WE’RE GOOD AT. THAT’S NOT WHAT WE SHOULD BE DOING.

PEOPLE DON’T DO WHAT YOU EXPECT, THEY DO WHAT YOU INSPECT WITH RESPECT. IT’S NOT THAT IF YOU’RE DEALING WITH BRIGHT PEOPLE, YOU DON’T HAVE TO CHECK OR INSPECT THINGS. SO PERIODICALLY, YOU DO CHECK. MORE OF A SPOT CHECK, NOT A DETAILED CHECK. BUT A RANDOM CHECK OF OPERATIONS. DO IT FOUR TO FIVE TIMES A YEAR. BUT NOT A DAILY CHECK. HAVE A MEETING NORMALLY ONCE EVERY FOUR TO SIX WEEKS. 

HIGH-PERFORMANCE PEOPLE DON’T LIKE SURPRISES, GOOD OR BAD.

MOST OF YOU TAKE YOUR PLANS AND PUT THEM IN THE TOP DRAWER OF YOUR DESK AND THEY STAY THERE. YOU HAVE TO CONSTANTLY CHANGE YOUR PLANS. 

IF YOU SEND A ROCKET TOWARDS THE MOON, ABOUT 90% OF THE TIME, IT’S OFF COURSE, IT FAILS ITS WAY TO THE MOON, CONTINUALLY MAKING MISTAKES AND CORRECTING THEM. WHAT WE GOT TO DO WITH YOUR PLANS ONCE YOU GET THEM, IS YOU CONTINUE TO MONITOR THEM AND ADJUST THEM. LIFE AND BUSINESS, NEITHER ONE ARE STATIC. BIG COMPANIES DO IT BEST. THE LARGER THE ORGANIZATION, THE LESS FLEXIBILITY THERE IS IN THE PLANNING MECHANISM, IN CHANGING IN, IN ADAPTING IT AND MODERATING IT. 

You gotta understand this stuff.

DAN DEVELOPED HIS PLAN AFTER MAKING SOME 20 THOUSAND MISTAKES.

FROM AN IDEA FORM TO EXECUTION

WHENEVER YOU LOSE FOCUS, TAP YOUR HEAD AT THE SIDES 5-6 TIMES WITH BOTH HANDS AND COVER YOUR EARS. GURUS SAY IT BRINGS YOUR FOCUS BACK. DAN DOES IT ALL THE TIME.

11 STEPS FROM IDEA TO EXECUTION

IN APRIL 1992, DAN CAME UP WITH THE IDEA OF DOMINATING THE PERSONAL DEVELOPMENT BUSINESS. HE WAS DOING SOME PRO BONO LECTURES AT THAT TIME. HE DIDN’T THINK OF HOW MUCH MONEY HE WOULD MAKE. BUT HE IMAGINED HIMSELF WALKING AROUND AMONGST 20 THOUSAND PEOPLE IN A STADIUM. HE IMMEDIATELY CALLED HIS FRIEND WHO WORKED FOR FORD AND THEY BOTH STARTED WORKING ON THE PROJECT. THEY WORKED THROUGH 4 DAYS DAY AND NIGHT. THEIR GOAL WAS TO DOMINATE THE PERSONAL DEVELOPMENT INDUSTRY. THEY DECIDED TO COME UP WITH A 4 PAGE GAME PLAN. NO TIME FRAME. THEN THEY DECIDED TO INVESTIGATE WHAT THE COMPETITION IS. DAN SPENT THE NEXT 6 TO 8 MONTHS GOING ON LISTENING TO EVERYBODY THAT GAVE SEMINARS AT THE HIGH END, BECAUSE HE WANTED TO DOMINATE THE HIGH END OF THE MARKET. IF HE COULD DOMINATE THE HIGH END, HE COULD DOMINATE THE WHOLE MARKET, HE THOUGHT. THAT WAS THE PART OF HIS INVESTIGATION PROCESS. HE WENT TO SEE ALL THE HIGH END SEMINAR GURUS LIKE JAY ABRAHM & DAN KENNEDY. DAN PENA THEN WENT ON TO HIRE PRIVATE INVESTIGATORS TO FIND OUT WHETHER THESE SO CALLED BUSINESS COACHES HAD ANY MONEY, IF THEY HAD BEEN SUED & FOR WHAT, ETC. HE INVESTIGATED ALL THE TOP 20 TO 25 BUSINESS COACHES IN THE INDUSTRY. THEN WHEN HE THOUGHT HE WAS DONE INVESTIGATING, HE INVESTIGATED SOME MORE. HE INVESTIGATED FOR PROBABLY 4 TO 6 MONTHS. HE DID HIS HOMEWORK. THEN DAN BECAME COMMITTED TO THE IDEA HIMSELF. IT BECAME HIS LIFE. HE BECAME OBSESSED WITH IT. HE GOT FOCUSED. HE WOULD SKIP DINNERS AND GOLF AND WOULD IMMERSE HIMSELF INTO HIS IDEAS, FINDING OUT MORE ABOUT THIS BUSINESS. HE MADE A COMMITMENT. WHEN DAN MAKES A COMMITMENT, HE SKIPS EVERYTHING FOR IT. NO BIRTHDAYS, NO CHRISTMASES, NOTHING. THEN YOU MAKE PRELIMINARY DECISIONS. YOU GO TO YOUR TEAM MEMBERS AND YOU SHARE YOUR OBSESSION. YOU MAKE SURE THAT YOUR TEAM IS ALSO OBSESSED WITH YOUR IDEA. YOU CONTINUE YOUR INVESTIGATION. DAN CONTINUED SEEING THE SPEAKERS, NOW THE SECOND TOP COACHES IN THE LINE TO FIND OUT IF THERE ARE OTHERS OUT THERE WHO HAVE A SIMILAR STORY TO TELL LIKE DAN. THERE WERE NONE. YOU CONTINUE TO INVESTIGATE ABOUT YOUR IDEA AND YOUR COMPETITION. THERE ARE COMPANIES POPPING UP EVERYDAY. YOU SHOULD BE INVESTIGATING FOREVER. READ ALL THE MAGAZINES. SEE ALL THE GUYS. AT SOME POINT, IT WILL BECOME SO MUCH THAT YOU WOULDN’T BE ABLE TO READ ANYMORE. THEN YOU DELEGATE IT TO OFF TO SOMEBODY ELSE TO DO. DAN MET A GUY NAMED MONTY BIRKOFF WHO READ EVERYTHING THAT WAS EVER WRITTEN ABOUT THE PERSONAL DEVELOPMENT BUSINESS. DAN ASKED HIM  TO SEND EXECUTIVE SUMMARIES 2 TO 3 TIMES A MONTH. DAN WOULD ALSO SEND MONTY TO ATTEND NEW SEMINARS BY NEW COACHES AND SEE HOW THEY ARE. THEN YOU PUT TOGETHER YOUR DECISION ACTION PLAN. BRING YOUR DECISION MAKERS INTO THE DECISION MAKING PROCESS BECAUSE THESE ARE THE PEOPLE WHO ARE GOING TO RUN IT, WHILE YOU’RE GOING TO STEP AWAY FROM IT. MOST OF THE ENTREPRENEURS ARE RUNNING THINGS THEMSELVES. WHEN THEY TURN IT OVER TO OTHERS, THEY DON’T HAVE ENOUGH KNOWLEDGE OF IT, AND THEY MAKE MORE MISTAKES. THAT’S WHY YOU NEED TO BRING PEOPLE IN EARLY ON SO THAT THEY UNDERSTAND THE BUSINESS. 

YOU’RE STILL WORKING ON HOW THIS IS GOING TO MAKE THE COMPANY RICH AND HOW TO MAKE IT THE GREATEST. YOU NEVER LET UP. 

YOU WALK YOUR TALK AND YOU NEVER NEVER NEVER NEVER NEVER NEVER EVER SHARE YOUR DOUBT. NEVER. NO MATTER WHAT HAPPENS. YOU NEVER SHARE A DOUBT ABOUT A BUSINESS PROPOSITION WITH ANYBODY EVER. UNDER ANY CIRCUMSTANCES. NEVER. NOT EVEN WITH YOUR SPOUSE.

WHEN YOU SHOW THEM THAT YOU HAVE A DOUBT, THEN THE PRESSURE ON THEM TO PERFORM IS A LITTLE LESS.

SUCCESS BEGETS SUCCESS. OBSESSION GROWS AND BECOMES INFECTIOUS. THE KEY TO BEING A SUPER HIGH PERFORMANCE PERSON IS MAKING BAD DEALS GOOD. THAT’S DAN’S SPECIALTY. BRINGING DEALS FROM THE DEATH. 

DAN SWEARS AT HIS KIDS AND CALL THEM DOOFUSES. HE WALKS HIS TALK. SOME PEOPLE WILL HAVE TO ADAPT LIKE A CHAMELEON TO BEING THIS WAY ALL THE TIME BECAUSE THE MORE YOU ACT THIS WAY, THE EASIER IT BECOMES, AND PRETTY SOON IT’S NOT AN ACT, IT’S REALITY. 

PUT TOGETHER OTHER DECISION MAKERS BECAUSE YOU WANT THEM TO TAKE RESPONSIBILITY. YOU LET THEM PUT A CRITICAL PATH OR TIMELINE TOGETHER, NOT YOU.

ONE WAY TO DO IT IS – MAKE TWO AXIS. ONE IS TIME. OTHER IS EVENTS. ANOTHER WAY TO DO IT IS – FIVE DAY INCREMENTS. SEVEN DAY INCREMENTS. WHAT YOU’RE GOING TO ACCOMPLISH IN THESE 5 DAYS? WHAT YOU’RE GOING TO ACCOMPLISH IN 8TH THROUGH 15TH DAY? 

LET THE DREAM TEAM PUT THE CRITICAL PATH TOGETHER. GIVE THEM EQUITY. THEY RUN THE PLAN. YOU DON’T. HAVE THEM REPORT TO YOU ONCE A MONTH. THE CRITICAL PATH IS NEVER CONCRETE. IT WILL CHANGE REASONABLY. 

DAN GAVE EQUITY TO ALL 14 EMPLOYEES BEFORE HIS COMPANY WENT PUBLIC. AFTER THE COMPANY WENT PUBLIC, THEY HAD MORE EMPLOYEES AND DAN GAVE EVERYONE DOWN THE LINE STOCK OPTIONS.

KEEP A NEWSLETTER DESK IN YOUR COMPANY SO THAT THE NEWS OF AFFLUENCE GOES OUT TO MORE PEOPLE AND CREATES GREAT REPUTATION FOR THE COMPANY AND SHOOTS UP THE STOCK PRICES. GOOD NEWS, JUST LIKE BAD NEWS, HAS A WAY OF EXPANDING. PRETTY SOON IT’S BIGGER THAN LIFE ITSELF.

HAVE YOUR TEAM CONTINUALLY MEASURE & MODIFY THE CRITICAL PATH. BUSINESS IS NOT STATIC. LIFE IS NOT STATIC.

IMPLEMENTATION OF THE CRITICAL PATH IS DONE BY OTHER DECISION MAKERS, NOT YOU. SOME OF THE IMPLEMENTATION INCLUDES:

  • SENDING THEM TO BANKS OFFERING FOR FINANCING
  • INTERVIEWING NEW EMPLOYEES

YOU STAY FOCUSED AND FOLLOW UP ON THE DECISION-MAKERS, WHO WILL REPORT TO YOU WITH PRESENTATIONS AND YOU WILL ASK THEM QUESTIONS ON THINGS THEY DIDN’T DO. ALSO KNOW THEIR STRENGTHS AND WEAKNESSES. YOU ONLY ASK ABOUT THE THINGS THEY DIDN’T DO, NOT THE THINGS THEY DID.

DAN’S FIRST DEAL WAS 50 MILLION AND HE MADE ONLY 90 THOUSAND OF IT. BUT NOBODY ASKED HIM HOW MUCH HE MADE. EVERYONE JUST REMEMBERS THE 50 MILLION FIGURE. THAT’S WHY IT’S IMPORTANT TO DO BIG DEALS AND NOT WORRY ABOUT HOW MUCH YOU’RE GOING TO MAKE. AND THAT’S WHY IT’S IMPORTANT TO GIVE AWAY EQUITY BECAUSE NOBODY WILL ASK YOU ABOUT HOW MUCH YOU MADE. THEY WILL ONLY REMEMBER THE DEAL AMOUNT, WHICH WILL GET YOU MORE DEALS, BIGGER DEALS, MAKING YOU FILTHY RICH.

THE KEY TO SUPER SUCCESS HIGH PERFORMANCE IS EQUITY, NOT REVENUE.

PACKAGE: PERCEPTION IS REALITY. THE WAY YOU LOOK. NOT SHARING YOUR DOUBTS. ACTING ENTHUSIASTICALLY. ACTING POSITIVELY. 

FOCUS ON YOUR PEOPLE WITH A LASER BEAM FOCUS. IT’S THE MOST IMPORTANT THING IN THEIR LIFE. IT’S THE MOST IMPORTANT THING TO THEIR INCOME. IF YOU ACT LIKE IT’S THE MOST IMPORTANT THING. THEY WILL PERFORM LIKE IT IS. IF YOU ACT LIKE IT’S JUST ONE OF THE DEALS, THAT’S EXACTLY HOW THEY WILL ACT ABOUT IT. 

IT WAS IMPORTANT FOR THE EMPLOYEES OF GREAT WESTERN THAT THEY KNEW THAT THEIR COMPANY WAS THE FASTEST GROWING OIL COMPANY WHEN ALL THEIR COMPETITORS WERE GOING OUT OF BUSINESS. 

YOU LEAD FROM THE FRONT AND YOU NEVER SECOND-GUESS YOUR EMPLOYEES. DURING THE CRITICAL PATH, PEOPLE ARE GOING TO MAKE MISTAKES. ONE OF THE REASONS THEY WILL MAKE MISTAKES IS BECAUSE YOU NEVER GAVE THEM THE OPPORTUNITY TO DO THIS BEFORE. THAT’S NOT THEIR FAULT. THAT’S THE BOSS’S FAULT. THEY WILL NOT DO EVERYTHING RIGHT BUT THEY WILL DO GOOD ENOUGH. PERFECTION EQUALS PARALYSIS. THEY KNOW WHEN THEY MAKE A MISTAKE. WHIPPING THEM WON’T DO YOU MUCH GOOD EXCEPT THAT IT’LL GIVE YOU SOME SADISTIC SATISFACTION. DON’T SECOND-GUESS THEM. JUST SAY “NEXT TIME, WE’LL DO IT THIS WAY”. “WE’LL” IS IMPORTANT. YOU’RE PART OF THE PROBLEM. 

HAVE YOUR DECISION MAKERS CONTINUE TO REEVALUATE AND MONITOR THE PROCESS CONTINUOUSLY. YOU DON’T DO THAT! IF YOU HAVE TO DO IT, EITHER YOU HAVE DOOFUSES WORKING FOR YOU, OR YOU’RE STILL A CONTROL FREAK, OR A COMBINATION OF THE TWO. 

SHORT FORM QUANTUM LEAP SHOVE IT DOWN THEIR THROAT METHOD

THIS IS THE JUMP STARTER. THIS IS THE TIME TO GET DOWN TO THE BUSINESS. THIS IS THE FOUR STEP SUPER ACTION PLAN.

  1. ONE: DECIDE WHAT IS THE OUTCOME THAT I WANT AND THE DESIRED COMPLETION [INFRASTRUCTURE TO GET IT DONE]
  2. TWO: THE COMMITMENT THAT I AM WILLING TO MAKE [MY PAY PRICE TO ACTION]
  3. THREE: I FIGURE OUT HOW IS IT GOING TO BE MEASURED? WHO IS GOING TO MEASURE IT PERIODICALLY? HOW OFTEN THERE SHOULD BE BENCHMARKS THAT I SHOULD MEASURE AGAINST?
  4. FOUR: IN MY MIND, PLAN HOW I’M GOING TO MODIFY IT? CONTINUE TO MEASURE AND MODIFY. [ALL PLANS SHOULD BE MODIFIED PLANS]

WE ALL HAVE PROBLEMS BUT WE DON’T WANT TO SOLVE ALL OUR PROBLEMS. IT DEPENDS ON THE COST TO SOLVE OUR PROBLEMS OR PAY PRICE TO ACTION. WE WANT TO BE WEALTHY, WHICH IS A PROBLEM, BUT WE DON’T WANT TO PAY THE PRICE TO ACTION. THIS IS THE MOST CRITICAL ELEMENT OF EVERYTHING DAN SAYS. EVERYTHING ELSE COMES SECONDARILY TO THIS. IT IS: WHAT YOU’RE WILLING TO PAY TO GET IT DONE? REMEMBER YOU’VE GOT TWO CHECKBOOKS IN LIFE: EMOTIONAL AND FINANCIAL. MOST OF YOU CAN’T WRITE EMOTIONAL OR FINANCIAL CHECKS. SO WHERE YOU ARE? IN A DEEP HOLE. YOU NEED A LADDER TO GET OUT. THIS PROBABLY CAN BE CALLED ONE OF THE REAL BUILDING BLOCKS OF BEING A HIGH PERFORMANCE PERSON. HIGH PERFORMANCE PEOPLE DO WHAT MAKES YOU NAUSEOUS. THEY’RE WILLING TO PAY THAT PRICE. THEY’RE WILLING TO SUCK UP THEIR PANTY HOSE AND DO WHATEVER IT TAKES, WHENEVER, NO MATTER WHAT. FRANKLY, THERE ARE VERY FEW PEOPLE OUT THERE WILLING TO DO THAT.

ARE YOU WILLING TO DO WHATEVER IT TAKES? AND DOWN DEEP INSIDE YOU KNOW WHAT IT WILL TAKE TO PULL IT OFF. YOU JUST NEED TO PULL THE TRIGGER. YOU KNOW YOU CAN COME UP WITH A LIST OF THINGS YOU SHOULD BE DOING DIFFERENT AND WHY YOU’RE NOT DOING THEM IS BECAUSE YOU’RE NOT WILLING TO PAY THE PRICE. YOUR CONDITIONING AND HOW YOU’RE RAISED WILL ALWAYS HINDER YOUR GROWTH. 

DAN’S THOUGHTS ON MONEY: 

  1. IF YOU THINK MONEY CAN’T BUY HAPPINESS, YOU DON’T KNOW WHERE TO SHOP. 
  2. I’VE BEEN RICH AND I’VE BEEN DIRT DAMN POOR AND THERE IS NO COMPARISON.
  3. I DON’T MISS BEING AT HOME AND I LOVE TRAVELLING WHEN I KNOW IT’S GOING TO FETCH ME HUGE MONEY.
  4. I DON’T HAVE ANY JEWISH GUILT ABOUT IT

PAY PRICE TO ACTION

IT’S THE OLDEST THING SINCE MANKIND BEGAN.

ABSENCE OF EVIDENCE IS NOT EVIDENCE OF ABSENCE

PEOPLE ARE MAKING TONS OF MONEY ALL OVER THE WORLD. YOU ARE NOT HANGING AROUND WITH THE RIGHT PEOPLE. IF YOU HANG AROUND WITH HEAVY HITTERS, YOU WOULD START THINKING DIFFERENTLY.

WARREN BUFFET

BERSHIRE HATHWAY IS A PVT HOLDING COMPANY FOUNDED IN 50s. BUFFET TOOK $1000 INVESTMENT FROM 100 PEOPLE AND GREW $100,000 INTO ABOUT 12 BILLION DOLLARS SINCE 1955. HE BOUGHT ROCK SOLID CONSERVATIVE COMPANIES. HE IS THE LATTER DAY SAINT OF THE FUNDAMENTAL FINANCIAL ANALYSIS NOW. HE HASN’T BEEN INVESTING IN THE PUBLIC STOCK MARKET. HE’S BEEN TAKING OVER TRYING TO BUY OTHER COMPANIES. HE LOOKS FOR DISTRESSED SITUATIONS BECAUSE COMPANIES ARE SO HIGHLY LEVERAGED THAT THEY HAVE 20 TO 50 TIMES EARNINGS, SO THERE ARE NO FUNDAMENTAL BUYS ANYMORE. 

STRUCTURE FOLLOWS STRATEGY

A STUMBLE OFTEN PREVENTS A SERIOUS FALL. IN OUR BUSINESS, WE DON’T WANT TO STUMBLE. BUT IT’S BETTER TO LEARN HOW TO STUMBLE. BETTER TO TRIP OVER A TOILET THAN FALL IN IT. WE’VE BEEN CONDITIONED ALL OUR LIFE NOT TO STUMBLE EVEN. 

AS LONG AS YOUR TROUGHS [SETBACK POINTS] AND PEAKS ARE HIGHER THAN THE ONES BEFORE, YOUR CHRONIC PROGRAM IS WORKING. THIS IS THE CORNERSTONE. 

WHEN WE START OUR BUSINESS, WE’RE GROWING EXPONENTIALLY. 

YOUR MICRO LOSSES MEAN SPIT. YOU MUST FOCUS ON WHERE YOU ARE GOING AT THE MACRO LEVEL.

VIRTUALLY ALL OF OUR PLANNING FOCUSES ON THE MINOR FALL, ESPECIALLY THE SMALL AND MEDIUM SIZED CORPORATIONS FOCUS ON THE MINOR LOSSES.

COMPANIES DAN BUILT:

  1. FIRST COMPANY – 2 MILLION DOLLARS
  2. SECOND – 50 MILLION 
  3. 3RD – 400 MILLION
  4. BUNCH OF COMPANIES WITHIN THE 3RD ONE

WITHIN THOSE CYCLES, DAN HAD SHORT TERM REVERSALS AT MANY TIMES. BUT DAN LOOKED AT THE TROUGHS. IF YOUR TROUGHS ARE HIGHER THAN THE ONES BEFORE, YOUR QUANTUM LEAP PROGRAM IS WORKING.

YOU HAVE A BAD MONTH, OR A BAD QUARTER, AND YOU GIVE UP. LOOK AT THINGS AS GLASS HALF FULL, NOT HALF EMPTY. SIMPLE.

HERE’S THE PRIME CONDITION OF SUCCESS ACCORDING TO MR. CARNEGIE: CONCENTRATE YOUR ENERGY, THOUGHT AND CAPITAL EXCLUSIVELY UPON THE BUSINESS IN WHICH YOU ARE ENGAGED. HAVING BEGUN ON THAT, RESOLVE TO FIGHT IT OUT ON THAT TO LEAD IN IT. THE ONLY MAN THAT NEVER MAKES ANY MISTAKE IS THE MAN WHO NEVER DOES ANYTHING.

ANOTHER IMPORTANT PART OF PLANNING: PENAISM – PLAN FOR SUCCESS. NO BACKUP PLAN, NO RIP CORDS, NO FAILSAFE OR YOU WILL FAIL. THERE IS NO SPACE FOR CONTINGENCY. 

WHAT IF IT DOESN’T WORK? WHAT IF I CAN’T BORROW THE MONEY? NO BACKUP. IF YOU PLAN FOR A B PLAN OR A C PLAN, YOU WILL HAVE B OR C PLAN.

WHEN DAN’S COMPANY WENT PUBLIC, HE STARTED ACQUIRING COMPANIES. SOME OF THE COMPANIES GOT RIPPED AWAY FROM HIM BY SOME OTHER PEOPLE. DAN HAD NO PLAN B. HE WAS TOLD THAT MERRILL LYNCH PUT A 15 MILLION DOLLARS FOR 15% OF THE COMPANY, WHICH DAN WANTED TO TAKE CONTROL OF FOR ONE MILLION SIX HUNDRED AND TWENTY THOUSAND, HE WAS ASKED “DON’T YOU WANT TO UP YOUR BID?” DAN SAID: “WHAT? ARE YOU A MORON? NO. I DON’T WANT TO UP MY BID.” BECAUSE THERE IS ALWAYS ANOTHER DEAL. THERE WILL ALWAYS BE MORE DEALS. THERE WILL ALWAYS BE ANOTHER PRETTY GIRL WHO WILL WALK DOWN THE STREET WHO LOOKS HOT. YOU GOTTA HAVE THE DISCIPLINE NOT TO JUMP BACK IN THE OLD DEAL. PROFESSIONALS HAVE THAT DISCIPLINE, PATIENCE AND PERSISTENCE. BUT WHEN YOU ARE NOT ACCUSTOMED TO DEALING IN THAT ARENA, YOU MIGHT GET TAKEN ADVANTAGE OF. DAN NEVER HAS A SECONDARY PLAN. EITHER PRIMARY PLAN WORKS, OR YOU FORGET IT. 

HOW CORPORATE MEETINGS LOOK LIKE?

THEY COME IN AND THEY PUT YOU INTO THE BIG LONG OAK ROOM THAT CAN EASILY ACCOMMODATE 200 PEOPLE. FIRST OF ALL, THE YOUNG ASSOCIATES FROM THE HARVARD MBAs & YOUNG LAWYERS WOULD COME IN. THEY ALL LOOK ALIKE. THEY SIT THERE. THEN THE MANAGING DIRECTOR WOULD STROLL IN AFTER 20-30 MINUTES LATER AND HE’D SIT DOWN AND SAY: “IT’S GOTTA BE SHORT. I DON’T HAVE MUCH TIME. WE’RE CLOSING A DEAL WITH CITY CORE FOR 800 TRILLION DOLLARS.” AND IT WORKS FOR THEM. NO MATTER HOW SMART YOU ARE. IT GETS TO YOU. DAN HAS BEEN THERE SO MANY TIMES. DAN USED TO DO THIS HIMSELF. THEY DON’T DO IT TO DAN ANYMORE. BUT YOU START THINKING THERE’S NO OTHER DEAL AND THAT NO OTHER BANK WOULD LEND YOU MONEY. YOU THINK LIKE THAT BECAUSE YOU ARE  INEXPERIENCED AND SCARED. YOU DON’T HAVE THE CONFIDENCE BECAUSE YOU HAVEN’T DONE IT. UNFORTUNATELY, YOUR LAWYERS AND ACCOUNTANTS AND THE PEOPLE THAT ADVISE YOU AREN’T MUCH EXPERIENCED EITHER. SO YOU’RE AT A DISADVANTAGE. THAT’S WHY HANGING AROUND WITH THOSE KINDS OF PEOPLE WHO HAVE DONE THIS WILL MAKE YOU FEEL MORE COMFORTABLE. THERE’S NO MORE THAN ONLY TWO WAYS TO GAIN THAT EXPERIENCE:

  1. DO IT YOURSELF. MAKE ALL THE MISTAKES. LIKE DAN HAS DONE.
  2. YOU FIND SOMEBODY WHO’S BEEN THROUGH THIS CYCLE.

MOST PEOPLE WOULD GIVE UP TRYING THE FIRST ONE BECAUSE THEY’RE NOT LIKE ALEXANDER BELL, WHO WAS WILLING TO DO 10,000 EXPERIMENTS. BUT BY THE END OF THE DAY YOU WILL UNDERSTAND ENOUGH TO KNOW THAT YOU GOTTA STEP UP EVEN THOUGH YOU MAY BE DRAGGING YOUR BAT. AND YOU BETTER BE ENTHUSIASTIC. YOU GOTTA SWING AND SWING WITH AUTHORITY. SO WE DO OURSELVES AN INJUSTICE BECAUSE WE DON’T EQUIP OURSELVES PROPERLY TO GO TO A MEETING. IT’S LIKE GOING TO A GUNFIGHT WITH A KNIFE. YOU GOTTA DO WHATEVER IT TAKES TO WIN. IT’S A MISSION. YOU DON’T HAVE TO CARE ABOUT ANYTHING ELSE. BECOME A MISSIONARY ZEALOT. ANYTHING LESS WOULD BE DETRIMENTAL TO YOU.

THE MORE YOU INVESTIGATE, THE LESS YOU HAVE TO INVEST

YOU DON’T NEED DABBLERS ON YOUR PROJECT WHO ARE INVOLVED IN OTHER DEALS. THEY SHOULD BE MONOMANIACALLY FOCUSED ON YOUR PROJECT, FULLY OBSESSED ON IT, LIKE YOU. YOU WANT THEM TO WALK YOUR TALK. 

FOUNDATION TO EXCELLENCE IS SELF-ESTEEM.

EQUITY MAKES YOU A BIG-HITTER INSTANTLY. IT BRINGS YOU FROM THE BOWELS OF HUMANITY TO THE GODDAMN HALO. THAT’S WHY YOU DO IT. BECAUSE IT WORKS. NOBODY GIVES YOU SOMETHING FOR NOTHING. YOU GIVE AWAY EQUITY TO THOSE WHO HAVE REPRESENTED YOUR COMPANY, LIKE LAWYERS AND ACCOUNTANTS  BASED ON THEIR PERFORMANCE OR ON YOUR GUT INSTINCTS.

JOINT VENTURING IS THE QUICKEST WAY FOR AN AVERAGE PERSON TO MAKE QUANTUM LEAP. FINDING SOMEBODY THAT HAS THE REQUISITE QUALITIES OR ASSETS AND NORMALLY THAT IS MONEY, NOT NECESSARILY EXPERTISE. JOINT VENTURING IS YOU MAY NOT BOTH PUT UP THE SAME AMOUNT OF MONEY. FIND A MENTOR THAT’S DONE IT BEFORE YOU. YOU DON’T NEED THE EXPERIENCE.

TO ADOPT QLA METHODOLOGY, YOU’VE GOT TO SAY THIS TO YOURSELF FIRST: 

“EVERYTHING I’VE BEEN TAUGHT HAS BEEN WRONG. I FOLLOWED WRONG METHODOLOGY. AND I CONSIDERED MYSELF A BRIGHT GUY. BUT I AM A MORON DOOFUS.” [ACCEPT THIS FACT]

BOOKS DAN HAS READ:

  1. CANDY (TWICE)
  2. LIFE AND LEGEND OF CHE GUEVARA
  3. LEE IACOCCA’S FIRST BOOK
  4. THINK AND GROW RICH
  5. RELEASE YOUR BRAKES

ONE TRAIT THAT WILL MAKE YOU MORE MONEY: SPEAKING YOUR MIND

IT’S NOT IMPORTANT TO HIRE PEOPLE WILL GREAT DEGREES. BUT IT’S IMPORTANT TO NOTICE THEIR PERFORMANCE, DISCIPLINE, PERSEVERANCE, COMMITMENT AND BURNING DESIRE IN THEIR BELLY. KIDS WITH ARMY BACKGROUND ARE BEST. TAKE DOOFUS TESTS. COMPANIES SUFFER BECAUSE OF SHORTAGE OF COMMITTED PEOPLE. IT’S DIFFICULT TO FIND THAT LEVEL OF COMMITMENT IN THE PEOPLE WHO HAVE ACHIEVED A CERTAIN LEVEL OF SUCCESS. 

A GUARANTOR IS A FOOL WITH A PEN

BANKS WILL ALWAYS ASK YOU TO BE A PERSONAL GUARANTOR TO THE LOAN. 

MOST PEOPLE DON’T UNDERSTAND EXPONENTIAL GROWTH BECAUSE THEY DON’T UNDERSTAND HOW TO GET THERE. YOU HAVE TO DO JOINT VENTURES AND BUSINESSES IN A WAY YOU HAVEN’T BEEN TRAINED. THAT’S WHY THE PEOPLE STAY IN THEIR SMALL BUSINESS IN THEIR COMFORT ZONES. YOU GOTTA DO SOMETHING DIFFERENT THAT MAKES YOU UNCOMFORTABLE.

PICK YOUR BOARD AND GIVE THEM EQUITY

PICK YOUR BOARD MEMBERS FROM ACCOUNTING, LEGAL & GENERAL BUSINESS HAVING HUGE EXPERIENCE. DO NOT PICK PEOPLE LIKE YOU. 

GENERATING REVENUE

YOU CAN NEVER EXPERIENCE HYPER GROWTH QUANTUM LEAPS IN BUSINESS WITHOUT GENERATING A LOT OF REVENUE. WITH ENOUGH REVENUE, YOU CAN MAKE BANKS DO SPECIAL THINGS. MOST OF THE PEOPLE ARE NOT GENERATING ENOUGH REVENUE. 

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