Who Are You To Act As God In Business?
God in your business? One of my great mentors, Dave VanHoose, tells a story about acting like God in his business. As he tells the story, he was running ForeclosuresDaily.com and was presenting at a seminar and at the end of the event, a new resident to the US wanted to spend his last $8,000 to buy an investing program.
Dave fought and resisted allowing this gentleman to join his real estate program. “No, this is not for you” Dave would say.
This gentleman was not deterred and insisted paying to join. Dave says he relented and let him in.
Dave continues the story and says he forgot about this client and one day asked his dad about him. Dave’s dad worked in the business and was a client advocate.
Dave’s dad said the client had done a ridiculous amount of real estate deals in a short amount of time. I don’t remember the exact number but it was well into 6 figures.
Dave decided then he would never act as God in his business. He feels who is he to decide who can be successful and who cannot.
Acting As God In Your Business – A Recent Discussion
I had a heated discussion recently with a colleague I respect and trust. I value their opinion and insights immensely.
We got into a discussion that was treading into the god in your business arena and lit a fire under me. Normally, calm, cool and collected but that discussion was intense.
Running an ethical and moral business has always been the way I operate. Who wants to do business with someone shady or who you don’t want to spend time in a room with?
The discussion dug into something known as the Pareto Principle or the 80/20 Rule. My friend, Perry Marshall, wrote a best selling book about it. Here is what the rule says:
80% of your results come from 20% of your effort.
The math holds true in business as well. Let’s look at it from an income standpoint: 80% of your revenue comes from 20% of your customers.
This is an amazing concept to understand as it will guide you in smart decisions for your business. Not acting like a god in your business, but rather acting as a smart business owner.
There is a dark side to this math though and it is one many people choose to ignore. Let’s use Pareto one more time:
80% of your success stories will come from 20% of your customers
That’s right, only 20% on average, will actually do something with your product. This can certainly be disheartening, but this formula has been proven over and over again.
The Talk Continues About God In Your Business
As our discussion went on, we both got heated and plead our case. This individual felt 100% success should happen and anyone who did not earn their investment back should be refunded.
I had to think about this, a lot. Does a health club give a refund if the member does not achieve their weight loss goal?
Does the college or university give back the money if the student does not get a job after graduation?
Does the brokerage give back the money if an investor loses their money?
Does the restaurant give back the money if the food sucked?
Does the retail store give back the money if the clothes don’t fit?
Does the sports team give back the money if their team loses?
Well, some of these are yes, some of these are no. What really makes the answer hard is not intention, but action, at least for me.
I mean, you could intend to do something, but you might not take the necessary action to achieve it. Case in point: I intend to lose weight and get healthy, but I have stopped taking action and it shows. But that is a story for another time…
So that brings it back full circle now. Should I refund everybody who is not successful with the programs and systems I offer? I am not sure. Should I let everyone try my materials and refund simply because they took no action and did not achieve a result? I don’t know.
Act like a god in your business? I don’t want to, but I have some new perspective to review now.