Law of Diffusion of Innovations

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As the law states, the first 2.5% of population are the innovators, and the next 13.5% are early adopters.

Altought quick to see the potential and willing to take risk to try new technologies or ideas,early adopters are not generators like the innovators. But both groups are similar, as Moore says, in that they rely heavily on their intuition. They trust their gut.

The farther right you go on the curve, the more you will encounter the clients and customers who may need what you have, but don’t necessarily believe what you believe. As clients, they are the ones for whom, no matter how hard you work, it’s never enough. Everything usually boils down to price with them. They are rarely loyal.

The importance of identifying this group is so that you can avoid doing business with them. Why invest good money and energy to go after people who, at the end of the day, will do business with you anyway if you meet their practical requirements but will never be loyal if you don’t?

Each of us assign different values to different things and our behaviors follow accordingly. This is one of the major reasons why it is nearly impossible to “convince” someone of the value of your products or ideas based on rational arguments and tangible benefits.

According to the Law od Diffusion, mass-market success can only be achieved after you penetrate between 15% and 18% of the market.

The goal of business then should not be to simply sell to anyone who wants what you have – the majority – but rather to find the people who believe what you believe, the left side of the bell curve. They perceive greater value in what you do and will happily pay a premium or suffer some sort of inconvenience to be a part of your cause.

Simon Sinek

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Business and Finance

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The most surprising feature of business as it was conducted was the large attention given to finance and the small attention to service. That seemed to me to be reversing the natural process which is that the money should come as the result of work and not before the work.

My idea was then and still is that if a man did his work well, the price he would get for that work, the profits and all financial matters, would care for themselves and that a business ought to start small and build itself up and out of its earnings. If there are no earnings then is a signal to the owner that he is wasting his time and does not belong in that business.

Money is not worth a particular amount. As money it is not worth anything, for it will do nothing of itself. The only use of money is to buy tools to work with or the product of tools. Therefore money is worth what it will help you to produce or buy and no more. If a man thinks that his money will urn 5 per cent, or 6 per cent, he ought to place it where h can get that return, but money placed in a business is not a charge on the business – or, rather, should not be. It ceased to be money and become, an engine of production, and it is therefore worth what it produces – and not a fixed sum according to some scale that has no bearing upon the particular business in which the money has been placed. Any return should come after it has produced, not before.

I determined absolutely that never would I join a company in which finance came before the work or in which bankers or financiers had a part. And further that, if there were no way to get started in the kind of business that I thought could be managed in the interest of the public, then I simply would not get started at all. For my own short experience, together with what I saw going on around me, was quite enough proof that business as a mere money-making game was not worth giving much thought to and was distinctly no place for a man who wanted to accomplish anything. Also it did not seem to me to be the way to make money. I have yet to have it demonstrated that it is the way. For the only foundation of real business is service.

Henry Ford

Don’t Be Afraid To Fail!

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Why is it, when we read about the great achievements of successful men in sports, or business, we are seldom told about their failures? For example: we now read of the amazing record of the immortal Babe Ruth, with his unapproached total of 714 home runs; but another unapproached world’s record of his is carefully buried in the records, never to be mentioned – striking out more time that any other player in history. He failed 1330 times!

Are you discouraged by your failures? Listen! Your average may be as good as anybody’s. If you fail to find your name on the list of makers-good, don’t blame it on failures. Examine your records. You’ll probably discover the real reason is lack of effort. Not enough exposure. You don’t give old man law of averages sufficient chance to work for you.

Whatever your calling may be, each error, each failure is like a strike-out. Your greatest asset is the number of strike outs you have had since your last hit. The greater the number, the nearer you are to your next hit.

 

Frank Bettger

Investor Vs Trader

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The investment had to make sense today, not tomorrow. I say this because too many people have the buy, hold, and pray strategy. Rich dad always said, “Your profit is made when you buy, not when you sell.” Every property we bought had to have a positive cash flow on the day we bought it, and it had to have a positive cash flow even in a bad economy. 

Know the difference between being an investor and a trader. We were investors when we were willing to buy and hold the properties for their cash flow. We were traders when we knew our entry as week as our exit strategy. In other words, an investor buy to hold. A trader buy to sell. It you want to retire rich, you need to know how they are different and how to be both.

If you can understand this principle of investing, you will understand what the velocity of money means. It means you want your money back as quickly as possible so it can be reinvested to acquire other assets.

Robert T. Kiyosaki

Overcoming Fear

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I have never met anyone who really likes losing money. And in all my years, I have never met a rich person who has never lost money. But I have met a lot of poor people who have never lost a dime -investing, that is.

The fear of losing money is real. Everyone has it. Even the rich. But it’s not having fear that is the problem. It’s how you handle fear. It’s how you handle losing. It’s how you handle failure that makes the difference in one’s life. The primary difference between a rich person and a poor person is how they manage the fear.

Failure inspires winners. And failure defeats losers. It is the biggest secret of winners. It’s the secret that losers do not know. The greatest secret of winners is that failure inspires winning; thus, they are not afraid of losing.

Robert  T. Kiyosaki

Set Off the Alarm Clock on Yourself

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I am a great admirer of Abraham Lincoln, and one reason I am is because he came to the point so quickly. He was a master of brevity. He made the most famous address in the history of the world. The man who preceded him to the platform spoke for two hours. Then Lincoln spoke – for exactly two minutes.

Overtalking is one of the worst of all social faults.

Whenever you become conscious of talking too long – stop! “Set Off the alarm clock” on yourself. 

A salesman cannot know too much, but he can talk too much. 

I don’t mean we should be abrupt. We quickly resent the person who is abrupt; but we admire the person who is brief and to the point.

Frank Bettger

 

Seven Keys to Goal Setting

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The first key is that goals must be clear, specific, detailed, and written down.

The second key to goal setting is that goals must be measurable and objective. They must be capable of being analyzed and evaluated by a third party.

The third key is that goals must be time bounded, with schedules, deadlines, and sub deadlines. If you don’t achieve a goal by that deadline, you set another deadline – and, if necessary, another – and work toward that until you finally succeed.

The fourth key to goal setting is that your goal must be challenging.  They must cause you to stretch a little bit. They must be beyond anything you have accomplished in the past. Your goal should have about a 50 percent probability of success.

The fifth key is that your goal must be congruent with your values and in harmony with each other.

The sixth key is that your goals must be balanced among your career or business, your financial life, your family, your health, your spiritual life, and your community involvement.

The seventh key is that you must have a major definite purpose for your life.  You must have one goal that, if you accomplish it, can do more to help you improve your life that any other single goal.

Brian Tracy