Step SEVEN: Creating Your Exit Strategy – Dan Pena’s QLA Model [Summary]
CREATE QUANTUM WEALTH3 COMMENTS
IN YOUR MIND, HAVE THE PERCEPTION OF WHAT YOU WANT TO BE, AND THEN PEOPLE’S
PERCEPTION OF YOU WILL FOLLOW.
Step SEVEN: Creating Your Exit Strategy – 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 SEVENTH
& FINAL 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 SEVEN: Creating your exit strategy
PETER PRINCIPLE: THE MAXIMUM THAT YOU CAN DO.
AFTER YOU TAKE YOUR COMPANY PUBLIC, YOU WILL BE THROWN OUT OF YOUR COMPANY. THAT’S
SOMETHING THAT HAS TO HAPPEN. THAT’S WHY A LOT OF GUYS DON’T GO PUBLIC.
ONCE YOU REACH YOUR PETER PRINCIPLE, YOU’LL BE THROWN OUT. SO THERE IS A DARK SIDE TO
THE EQUITY FINANCING. ONCE YOU ACCEPT THAT YOU’D RATHER BE A LARGE PART OF A 100
MILLION DOLLAR COMPANY THAN TO BE THE ONLY PART OF A 5 TO 10 MILLION DOLLAR COMPANY,
IT’S EASY TO DEAL WITH IT.
MANAGING GROWTH AND PREPARING FOR DIVERSIFICATIONS – BIG DREAMS, BIG PROBLEMS, BIG
REWARDS
CLOSING THE DEAL: IF YOU’RE NOT READY TO DIE, THEN YOU’RE NOT READY TO LIVE. IF YOU’RE NOT
READY TO DO EVERYTHING HUMANLY POSSIBLE SHORT OF DYING, THEN THE CHANCES OF DEAL
COMING TO FRUITION ARE DIMINISHED GREATLY. YOU WANT TO SIMULATE SUCCESS.
ACT SUCCESSFUL
HAND AROUND WITH THE BIG DOGS
PEE IN THE TALL GRASS
THAT’S HOW YOU PICK UP THE TRAITS OF THE HIGH-PERFORMANCE SUPER SUCCESSFUL PEOPLE.
IF YOU’RE IN YOUR 40s, SELL YOUR BUSINESS IN THE NEXT UPCYCLE.
DO THE ENDS JUSTIFY THE MEANS? ABSOLUTELY YES, THEY DO, AS LONG AS IT IS LEGAL, MORAL &
ETHICAL.
USE HORSE BLINDERS FOR LASER BEAM FOCUS
THE MOST IMPORTANT BUSINESS DECISION YOU MAKE SINCE STARTING IS GETTING OUT.
QUICK SUMMARY:
YOU HAVE A DREAM
PUT A DREAM TEAM TOGETHER [HUMAN RESOURCES – BOARD/MENTOR]
PERCEPTION EQUALS REALITY [ACT MORE SUCCESSFUL. YOU HAVE ONLY ONE TIME TO MAKE AN
IMPRESSION.]
TAKE ACTION NOW
DEVELOP YOUR QUANTUM LEAP ACTION PLAN [USE THE FORM – MAKE A MARGINAL SHIFT]
11 STEPS FROM IDEA TO EXECUTION [IT DOESN’T MATTER IF YOU’RE AN INTROVERT]
YOU CAN’T DO IT ALONE
DON’T FIND TIME. JUST DO IT.
EAT, SLEEP, BREATHE YOUR DREAM FOR EVERYDAY OF YOUR LIFE FROM NOW TILL THEY PUT DIRT
ON YOU [LIKE DAN’S DREAM OF CASTLE BETWEEN APRIL 1983 TO AUGUST 1984]
IN YOUR MIND, HAVE THE PERCEPTION OF WHAT YOU WANT TO BE, AND THEN PEOPLE’S
PERCEPTION OF YOU WILL FOLLOW.
THE PEOPLE WE CALL GIFTED ARE DIFFERENT FROM THE CROWD IN ONE SPECIAL WAY. THEY
ACCEPTED THEIR GIFTS. THEY LET IT HAPPEN. THE HIGH-ACHIEVERS, THE PERSONS YOU ADMIRE,
ARE THOSE INDIVIDUALS WHO OPENED THEIR GIFTS. THESE WINNERS HAVE MORE GIFTS BECAUSE
THEY CLAIMED THEM, TOOK THEM OUT OF THE WRAPPINGS AND USED THEM.
THE FUTURE IS YOURS. APPROACH IT WITH HONESTY AND AMBITIOUSLY WITH A WILL TO FIGHT THE
RIGHTS OF MANKIND. ALWAYS BALANCE THE RIGHTS OF MAN WITH THE RIGHTS OF SOCIETY. HAVE
FAITH IN YOURSELF [SELF-ESTEEM] AND FAITH IN PEOPLE [GIVE THEM THE OPPORTUNITY, ALLOW
THEM TO MAKE MISTAKES, HELP THEM GROW] FOR IF YOU TRUST NO ONE, YOU CANNOT TRUST
YOURSELF.
UPDATED:
CATEGORIES: DAN PENA'S 7 STEPS QLA SUMMARYTAGS: DAN PENA 1993, DAN PENA 7 STEPS TO
SUCCESS, DAN PENA QLA FOR DUMMIES, DAN PENA SCRIPT, DAN PENA SUCCESS TEST, QLA FOR
DUMMIES PDF, QLA METHODOLOGY PDF, QLA TEMPLATES
Step SIX: Pay Yourself First – Dan Pena’s QLA Model [Summary]
CREATE QUANTUM WEALTHLEAVE A COMMENT
“SOME FOR THE GLORIES OF THIS WORLD; AND SOME SIGH FOR THE PROPHET’S PARADISE TO
COME; AH, TAKE THE CASH, AND LET THE CREDIT GO, NOR HEED THE RUMBLE OF A DISTANT
DRUM!” ― OMAR KHAYYAM
Step SIX: Pay Yourself First – 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 SIXTH
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 SIX: Pay yourself
BUSINESS-BANKING RELATIONSHIP
IF YOU DON’T HAVE A LINE OF CREDIT WITH YOUR BANK, YOU HAVE A DEPOSIT RELATIONSHIP. YOU
NEED A BANKING RELATIONSHIP TO GROW. AND YOU NEED A BANK THAT CAN TAKE YOU TO THE
NEXT LEVEL.
PAY INTEREST WHEN YOU DON’T HAVE TO
DON’T COMPLAIN ABOUT THE FEES
TELL YOUR BANKER THAT YOU ARE CHANGING BANKS BECAUSE THEY CANNOT TAKE YOU TO THE
NEXT LEVEL
LEAVE SOME MONEY IN THE BANK YOU LEAVE
GO TO HIM WITH A WELL THOUGHT OUT BUSINESS PLAN
TELL YOUR BANKER THAT YOU NEED A LINE OF CREDIT
ALWAYS ASK FOR 3 TO 5 TIMES LINE OF CREDIT
BANKS DON’T WANNA KNOW THAT YOU WANNA GROW YOUR BUSINESS 11% A YEAR. BANKS WANT
TO BELIEVE THAT YOU’RE GONNA GROW AT 50% A YEAR.
ROLE OF THE CEO
AS THE FOUNDER OR THE CEO OR THE BOSS, YOU SHOULD THINK NOTHING BUT GENERATING
REVENUE AND EXPOSING YOURSELF TO NEW DEALS AND NEW TRANSACTIONS. NOTHING ELSE. JUST
TRAVEL. DON’T GO TO THE OFFICE.
PENAISM: ALL MANAGERIAL PERFORMANCE SINS SHALL ALWAYS BE FORGIVEN DURING PERIODS OF
RAPIDLY INCREASING REVENUE STREAMS.
EXTERNAL GROWTH
GROW YOUR COMPANY AS FAST AS HUMANLY POSSIBLE. YOU DON’T HAVE TO GO TO WORK
EVERYDAY TO DO THAT. YOU DO IT THROUGH DEBT AND ACQUISITIONS. BORROW MONEY FROM
EVERYWHERE YOU CAN.
DO SOME RESEARCH
MAKE 3 APPOINTMENTS A DAY
DO BUSINESS PLANS
GIVE PRESENTATIONS
ACQUIRE COMPANIES THAT CAN WORK TOGETHER IN SYNERGY TO GENERATE MORE REVENUE,
MOSTLY IN RELATED NICHE MARKETS.
SELF ESTEEM IS THE BASIS FOR EXCELLENCE IN BUSINESS.
IF YOU’RE EXPERIENCING NO ANXIETY OR DISCOMFORT, THE RISK YOU’RE TAKING IS PROBABLY NOT
WORTHY OF YOU. THE ONLY RISK THAT AREN’T A LITTLE SCARY ARE THE ONES YOU HAVE
OUTGROWN. A COMFORT LEVEL PROVIDES A SOLID EVIDENCE THAT YOU’RE PLAYING IT SAFE, NOT
GROWING, NOT REALLY TESTING YOUR LIMITS AT ALL, AND NOT IN A PROCESS OF QUANTUM LEAP.
THE REWARD FOR WORK WELL DONE IS MERELY THE OPPORTUNITY TO DO MORE. THAT’S ALL THE
THANKS THAT YOU GET.
INVESTIGATE TILL YOUR DEAL LIVES OR DIES. AS WINSTON CHURCHILL SAID: NEVER NEVER NEVER
EVER QUIT. NEVER QUIT INVESTIGATION.
CHECK:
COMPANY NAME
LICENSE
SCHOOLS THEY WENT TO
PROPERTY RECORDS
GUARANTOR RECORDS
IN EXTERNAL GROWTH, THERE WILL BE ACT OF ACQUISITIONS. IN ACQUISITIONS, YOU’LL HAVE TO
LEARN TO NEGOTIATE. AS AN EFFECTIVE NEGOTIATOR, YOU MUST BE ABLE TO PLACE THE DEAL IN
THE COMFORT ZONE OF THE OTHER PARTY AND AT BEST INTEREST TO YOURSELF.
WITH BANKS, IT SHOULD BE JUST TO GET THE MONEY.
PAY YOURSELF FIRST
AS YOU GROW, CONTINUE TO PAY YOURSELF OUT OF PROFITS. BECAUSE IF YOU DON’T GET TO THE
UPCYCLE TO SELL:
AL LEAST YOU’LL HAVE A LOT OF MONEY OUT OF THE BUSINESS IN THE MEANTIME
WHEN IT’S TIME TO SELL, YOU DON’T HAVE TO SQUEEZE EVERY DAMN DOLLAR OUT OF BUSINESS
BECAUSE YOU’RE ALREADY RICH
MAKES IT EASIER FOR YOU TO HUNTING WITH THE BIG DOGS
DAN PULLED OUT 26 DOLLARS BETWEEN 1985 TO 1991 TO PAY HIMSELF THROUGH HIRING BIG
COMPENSATION COMPANY THAT MADE ARRANGEMENTS FOR:
BONUSES
SALARY INCREASES
“SOME FOR THE GLORIES OF THIS WORLD; AND SOME SIGH FOR THE PROPHET’S PARADISE TO
COME; AH, TAKE THE CASH, AND LET THE CREDIT GO, NOR HEED THE RUMBLE OF A DISTANT
DRUM!” ― OMAR KHAYYAM
YOU CAN THINK POSITIVE ALL DAY LONG, ALL YEAR LONG, BUT POSITIVE ACTION IS WHAT COUNTS.
TRYING HARDER AND HARDER START PRODUCING LESS AND LESS. IT’S NOT SAYING: “I’LL DO MY
BEST”. IT’S SAYING: “I’LL DO WHAT IS NECESSARY”. [WINSTON CHURCHILL]
“YOUR DOUBTS ARE NOT PART OF ACCURATE THINKING, BUT HABITUAL THINKING. THAT CRAPPY
PRECONDITIONING THAT YOUR PARENTS GAVE YOU AND YOUR SCHOOL TEACHERS GAVE YOU AND
ALL YOUR DOOFUS FRIENDS GAVE YOU. IT’S HABITUAL THINKING. ABSENCE OF EVIDENCE IS NOT
EVIDENCE OF ABSENCE. GET OUT THERE AND GET RUTHLESS NOW. BE LIKE IT’S THE LAST TWO
MINUTES OF THE LAST SUPERBALL.” — DAN PENA
UPDATED:
CATEGORIES: DAN PENA'S 7 STEPS QLA SUMMARYTAGS: DAN PENA 1993, DAN PENA 7 STEPS TO
SUCCESS, DAN PENA QLA FOR DUMMIES, DAN PENA SCRIPT, DAN PENA SUCCESS TEST, QLA FOR
DUMMIES PDF, QLA METHODOLOGY PDF, QLA TEMPLATES
Step FIVE: Your Quantum Leap Action Plan – Dan Pena’s QLA Model [Summary]
CREATE QUANTUM WEALTHLEAVE A COMMENT
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.
Step FIVE: Your Quantum Leap Action Plan – 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:
THE BOSS SETS THE GOALS AND EVERYONE ELSE FOLLOWS
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:
STRATEGIC PLANNING/ SYSTEM [HAS TO COME FROM YOUR MIND]
CONTROL AND ACCOUNTABILITY OF THE SYSTEM [YOU’RE RESPONSIBLE]
SYSTEM TO GROW MANAGERS [NURTURE 2 OR 3 AT A TIME. CHRIST HAD 12 DISCIPLES]
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.
ONE: DECIDE WHAT IS THE OUTCOME THAT I WANT AND THE DESIRED COMPLETION
[INFRASTRUCTURE TO GET IT DONE]
TWO: THE COMMITMENT THAT I AM WILLING TO MAKE [MY PAY PRICE TO ACTION]
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?
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:
IF YOU THINK MONEY CAN’T BUY HAPPINESS, YOU DON’T KNOW WHERE TO SHOP.
I’VE BEEN RICH AND I’VE BEEN DIRT DAMN POOR AND THERE IS NO COMPARISON.
I DON’T MISS BEING AT HOME AND I LOVE TRAVELLING WHEN I KNOW IT’S GOING TO FETCH ME
HUGE MONEY.
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:
FIRST COMPANY – 2 MILLION DOLLARS
SECOND – 50 MILLION
3RD – 400 MILLION
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:
DO IT YOURSELF. MAKE ALL THE MISTAKES. LIKE DAN HAS DONE.
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:
CANDY (TWICE)
LIFE AND LEGEND OF CHE GUEVARA
LEE IACOCCA’S FIRST BOOK
THINK AND GROW RICH
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.
UPDATED:
CATEGORIES: DAN PENA'S 7 STEPS QLA SUMMARYTAGS: DAN PENA 1993, DAN PENA 7 STEPS TO
SUCCESS, DAN PENA QLA FOR DUMMIES, DAN PENA SCRIPT, DAN PENA SUCCESS TEST, QLA FOR
DUMMIES PDF, QLA METHODOLOGY PDF, QLA TEMPLATES
Step FOUR: Creating Your Dream Team – Dan Pena’s QLA Model [Summary]
CREATE QUANTUM WEALTHLEAVE A COMMENT
SELF ESTEEM IS THE FOUNDATION OF EXCELLENCE IN BUSINESS AND PERSONAL RELATIONSHIPS.
SELF ESTEEM IS THE FOUNDATION TO EVERYTHING THAT’S GOOD AND UNFORTUNATELY MOST
PEOPLE DON’T HAVE MUCH.
Step FOUR: Creating Your Dream Team – 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 FOURTH
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 FOUR: Creating your dream team in business and life
DREAM TEAM IS TWOFOLD:
THE PEOPLE THAT ARE DIRECTLY IN YOUR ORGANIZATION
THE PEOPLE THAT REPRESENT YOU OUTSIDE [LAWYERS/ACCOUNTANTS]
WITHOUT EFFECTIVELY UNDERSTANDING HOW YOU CREATE YOUR DREAM TEAM, YOU CAN’T
ACCOMPLISH QLA BECAUSE YOU CANNOT DO IT ALONE. IT IS IMPOSSIBLE TO DO IT ALONE.
INTERNAL DREAM TEAM
MOST GREAT LEADERS BEGIN IN THE CAPACITY OF FOLLOWERS. THEY BECOME GREAT LEADERS
BECAUSE THEY WERE INTELLIGENT FOLLOWERS.
ANOTHER REQUISITE TO BE A HIGH-PERFORMANCE PERSON IS TO BE A LEADER OF PERSONS,
INDIVIDUALS, MEN, WOMEN, AND CHILDREN. NONE OF THE HIGH-PERFORMANCE PEOPLE LIKE
STEVE JOBS, BILL GATES, ROSS PEROT, LEE IACOCCA, JOHN SCULLEY, ANDREW CARNEGIE, RICK
SCOTT, AND OTHERS ARE LEADERS. THEY ARE NOT MANAGERS OR SYSTEMS PEOPLE OR
ADMINISTRATORS.
YOUR PEOPLE WANT YOU TO LEAD. THEY WANT TO BE LED. THEY WANT TO STAY IN COMFORT,
SOFT, WARM, AND CUDDLY, LIKE A BABY KANGAROO. THEY DON’T WANT YOU TO TELL THEM THE
DOUBTS YOU HAVE. THEY DON’T WANT TO HEAR THAT CASHFLOW IS SHORT. THEY DON’T WANT TO
KNOW THAT THEY CAN’T BUT THAT OTHER HOUSE AT THE LAKE. THEY WANT TO HEAR:
“EVERYTHING’S GREAT. WE’RE BUYING ANOTHER COMPANY.” THEY DON’T WANT TO HEAR THE BAD
NEWS AND YET YOU KEEP ON HEAPING IT ON THEM. THEY WANT TO BELIEVE IN THE GOOD STUFF.
AND IT’S OUR JOB TO HELP THEM SEE THAT THAT’S THEIR REALITY. THAT’S WHY YOU DON’T SHARE
DOUBTS.
IT’S LONELY AT THE TOP.
HOW TO BE A LEADER?
TO BE A LEADER, FIRST LEARN TO MANAGE YOURSELF. USE DISCIPLINE AND CREATIVITY TO REALLY
GET THE JOB DONE. MOST PEOPLE DON’T KNOW HOW TO MANAGE THEMSELVES, LET ALONE
ANYBODY ELSE. YOU GOT TO BE ABLE TO TAKE CARE OF YOURSELF. THAT’S WHY MOST PARENTS
ARE SO LOUSY AT BEING PARENTS BECAUSE THEY CAN’T MANAGE THEMSELVES. HOW CAN THEY
MANAGE A LITTLE KID’S LIFE?
A HIGH-PERFORMANCE PERSON IS LIKE A RIDER TO A BUNKING BRONCO.
YOU SHOULD ALWAYS HAVE ONE OR TWO PEOPLE TRAINING TO TAKE YOUR JOB. DAN WANTED AT
LEAST FOUR TO FIVE SUCH PEOPLE AROUND WHO CAN CUT HIS HEAD OFF OR STAB HIM IN THE
BACK. HE ALWAYS HAD FOUR TO FIVE GUYS WORKING WITH HIM WHO WERE SMARTER THAN HIM,
HAD BETTER EDUCATION THAN HIM, AND HUNGRIER THAN HIM. IT’S MOTIVATING TO DAN.
YOU HAVE TO GET COMFORTABLE WITH YOURSELF.
THE FIRST METHOD OF ESTIMATING THE INTELLIGENCE OF A RULER IS TO LOOK AT THE MEN HE HAS
SURROUNDED HIMSELF WITH.
MOST OF YOU HAVE MORONS WORKING FOR YOU. DAN HAS THE BRIGHTEST, MOST AGGRESSIVE,
CUNNING, HIGH-PRICED EMPLOYEES WORKING FOR HIM. FOUR TO FIVE OF HIS GUYS COULD EASILY
BE CEOs OF A MAJOR CORPORATION.
WITH BIG MONEY COMES BIG PROBLEMS.
IF YOU TELL THEM, THEY’LL FORGET IT. IF YOU SHOW THEM, THEY’LL FORGET IT. BUT IF YOU
INVOLVE THEM, THEY’LL UNDERSTAND. THAT’S WHY DAN ALLOWS PEOPLE TO MAKE MISTAKES.
YOU DO NOT LEAD BY HITTING PEOPLE OVER THE HEAD. THAT’S ASSAULT. THAT’S NOT LEADERSHIP.
YOU LEAD FROM THE FRONT. YOUR PEOPLE WANT YOU TO LEAD FROM THE FRONT. THEY DON’T
WANT YOU TO LEAD FROM THE BACK. THE MORE SUCCESSFUL YOU ARE, THE MORE SUCCESSFUL
THEY’LL WANT TO BE. YOU HAVE TO LEAD FROM THE FRONT.
IF ANYTHING GOES BAD, SAY “I DID IT”.
IF ANYTHING GOES SEMI-GOOD, SAY “WE DID IT”.
IF ANYTHING GOES REALLY GOOD, SAY “THEY DID IT”.
THERE IS NOT ENOUGH LEADERSHIP IN MANAGEMENT ANYMORE BECAUSE AN ENTREPRENEUR IS
BASICALLY A LEADER.
TRANSITION: FROM ENTREPRENEUR TO MANAGER TO LEADER.
LEADERSHIP IS NOT ONLY AT THE CEO POSITION. LEADERSHIP HAS TO BE THROUGHOUT THE
POSITIONS, DOWN TO MIDDLE MANAGEMENT. THERE ARE NOT ENOUGH LEADERS IN CORPORATE
WORLD ANYMORE. OTHER THAN THE HEAD GUYS, THERE AREN’T ANY CORPORATE LEADERS.
MOST RUN THEIR ORGANIZATIONS USING THE TOP MANAGEMENT SCALE, THAT IS: ONE PERSON IN
TEN PEOPLE REPORT TO HIM.
DAN’S JUDGEMENT: YOU CAN HAVE ONLY 2 OR 3 PEOPLE MAX REPORTING TO YOU. NOBODY
DOWN THE LINE ALSO HAD MORE THAN TWO PEOPLE REPORTING TO HIM. YOU CAN’T PHYSICALLY
KEEP ON TOP WHEN THERE ARE MORE THAN 2 TO 3 PEOPLE REPORTING TO YOU.
BY DEFINITION, WE ALL GROW GEOMETRICALLY WHEN WE START THE BUSINESS. WE FORGET HOW
TO DO THAT. WE LOSE PASSION. BECAUSE OF SATIATION AND LOW EXPECTATIONS, IT FLATTENS
OUT.
AND WHEN YOU GO FROM ZERO EMPLOYEES TO ONE OR TWO EMPLOYEES, YOU BECOME A
MANAGER. YOU LEARN TO MANAGE IN A HALF-ASSED WAY AND YOU’RE MANAGING SOME PEOPLE.
THEN YOU FACE A CROSSROADS: YOU ARE EITHER GOING TO BECOME A LEADER OR YOU STAY THE
SAME AS A MANAGER, OR YOU STAY AN ENTREPRENEUR AND YOU DROWN.
SOME OF YOU ARE BETTER BRINGING IN A PROFESSIONAL MANAGER AND WALKING AWAY FROM
YOUR COMPANY AND NEVER LOOKING BACK.
THE MORE SELF ESTEEM YOU GIVE OTHERS, THE MORE YOU HAVE. THE MORE SELF ESTEEM YOU
HAVE, THE EASIER IT IS TO GIVE.
DAN ALLOWS HIS EMPLOYEES TO MAKE MISTAKES BECAUSE HE KNOWS THAT HE CAN UNDO THOSE
MISTAKES. HE IS CONFIDENT ABOUT IT.
SELF ESTEEM IS THE FOUNDATION OF EXCELLENCE IN BUSINESS AND PERSONAL RELATIONSHIPS.
SELF ESTEEM IS THE FOUNDATION TO EVERYTHING THAT’S GOOD AND UNFORTUNATELY MOST
PEOPLE DON’T HAVE MUCH.
ANDREW CARNEGIE’S FOUR RULES FOR SUPER SUCCESS:
FINANCIAL MOTIVE MUST PREVAIL
NEVER REPRIMAND EMPLOYEES, INSTEAD, ASK THEM QUESTIONS REVELING THEIR OWN FAULTS
ONE OR MORE MEN TRAINING FOR HIS JOB
NEVER MAKE DECISIONS FOR EMPLOYEES. ALLOW THEM TO MAKE THEIR OWN AND GIVE THEM THE
RESPONSIBILITY AND AUTHORITY TO IMPLEMENT THEIR OWN ACTIONS
EXTERNAL DREAM TEAM
IN ORDER TO REALLY SUCCEED IN BUSINESS, YOU NEED OUTSIDE ADVISORS. THESE ADVISORS MUST
BE TRUSTED ADVISORS. TO HAVE TRUSTED ADVISORS, YOU NEED TO HAVE A VERY SPECIAL
RELATIONSHIP WITH SOMEONE AT THE FIRM. YOU NEED A MOLE. THE PERFECT MOLE IS SOMEONE
WHO IS MOTIVATED, AGGRESSIVE, AMBITIOUS, BUT NOT AS BRIGHT AS HE OR SHE THINKS. AND
WHEN DEALING WITH THE OPINIONATED OR EGOTISTICAL, ALWAYS GIVE THEM CREDIT WHERE
CREDIT IS NOT DUE.
IN YOUR DREAM TEAM, YOU NEED A LAWYER, AN ACCOUNTANT, AND A BANKER TO START WITH.
LAWYERS
YOU CANNOT EFFECTIVELY GROW YOUR BUSINESS WITHOUT A FIRST-CLASS ATTORNEY/LAW FIRM.
IMPOSSIBLE. IF YOU’RE A SUPERSTAR, ROCK STAR, BASEBALL PLAYER, YOU CANNOT EFFECTIVELY
GROW YOUR CAREER WITHOUT A FIRST CLASS ATTORNEY/ LAW FIRM.
DAN HAS 3 LAW FIRMS THAT REPRESENT HIM. HE HAS ALWAYS HAD BIG TIME LAW FIRMS EVEN
WHEN HE COULDN’T AFFORD THEM. WHAT DAN DOES IS HE FINDS ONE OR TWO YOUNG
ASSOCIATES THAT WAS NORMALLY ONE OR TWO YEARS FROM PARTNERSHIP [MAN OR WOMAN
PARTNER]. HE MAKES SURE TO HELP THEM GET PROMOTED AHEAD OF THE CURVE. HE GIVES THEM
ALL THE LEGITIMATE BUSINESS THAT HE HAS. HE DOESN’T SPREAD IT AROUND, AND HE MAKES
SURE THEY KNOW HE KNOWS THEY GOT PROMOTED BECAUSE OF HIM AND HE MAKES SURE THAT
THE FIRM KNOWS THAT THEY GOT PROMOTED AHEAD OF THE CURVE BECAUSE OF HIM. THEN DAN
OWNS THEM. AND IF THEY CHANGE FIRMS, DAN GOES WITH THEM.
DO THE SAME AT A BIG ACCOUNTING FIRM.
ACCOUNTANTS
BANKS LAUGH AT THE NUMBERS YOU SHOW THEM FROM A DOOFUS ACCOUNTANT. IT’S MUCH
EASIER TO BORROW MONEY AND HAVE FINANCIAL INSTITUTIONS IN YOUR CAMP WHEN YOU HAVE
NUMBERS THAT ARE RESPECTED.
THAT’S WHY YOU NEED TO HIRE A BIG ACCOUNTING FIRM.
ALSO, WHEN YOU SUE THE ACCOUNTING FIRM FOR MALPRACTICE IF THEY SCREW UP, THEY GOT TO
HAVE SOME MONEY. SO IT’S A DEFENSIVE MEASURE AS WELL.
DAN HAS NEVER HAD TO SUE HIS LAWYERS OR HIS ACCOUNTANTS. HE HAS THREATENED TO DO SO,
BUT HASN’T SUED.
DAN NEVER ARGUED FEES OVER GETTING DEALS. WHEN HE NEEDED OPINIONS TO GET THE DEALS
DONE, HE NEVER ARGUED FEES. THEY KNOW HE DOESN’T ARGUE. THEY APPRECIATE HE DOESN’T
ARGUE AND HE GOT ALL HIS DEALS DONE AND GOT ALL HIS OPINIONS IN A TIMELY FASHION.
ANY FEE THAT YOU PAY FOR A TRANSACTION THAT DOESN’T GO THROUGH IS TOO MUCH. ALMOST
NO FEE IS TOO MUCH IF YOU GET THE DEAL DONE BECAUSE YOU JUST WRAP IT INTO THE DEAL. YOU
CAPITALIZE IT.
BANKS
YOU FIND A BANK. IF YOU’RE DOING BUSINESS WITH A BANK THAT CAN’T TAKE YOU TO THE NEXT
LEVEL, YOU’RE DESTINED TO NOT HAVING GEOMETRIC GROWTH. YOU SHOULD BE DOING BUSINESS
WITH AT LEAST A BANK THAT CAN TAKE YOU TO THE NEXT LEVEL.
DAN ALWAYS ASKED BANKS THREE TO FOUR TIMES MORE MONEY THAN HE NEEDED. ALWAYS.
HERE TOO, IF A SENIOR LENDING OFFICER GOES TO ANOTHER BANK, WHICH IS A MORE UPMARKET
BANK, YOU GO WITH HIM. IT DOESN’T MATTER THAT YOU’VE BEEN WITH A BANK FOR 10 YEARS.
WHEN YOU GO WITH THAT BANKER, YOUR TRACK RECORD GOES WITH YOU.
WHY DO PEOPLE BORROW MONEY AT THE END OF THE YEAR? WHY DO ALL THESE DEALS GET DONE
AT THE END OF THE YEAR? IT’S BECAUSE THAT’S WHEN BONUSES ARE PAID. IT’ A LOT EASIER. WHEN
THE BANKER HASN’T DONE ANY TRANSACTIONS FOR THE FIRST 9 MONTHS OF THE YEAR AND YOU
BRING THEM A DEAL, THEY’RE NOT AS CAREFUL.
YOU CAN’T GO TO THE NEXT LEVEL WITHOUT A SUPPORTIVE LAW FIRM, A SUPPORTIVE
ACCOUNTING FIRM, AND A SUPPORTIVE BANK. IMPOSSIBLE.
LOOK OUT FOR BANKS ADVERTISING FOR BUSINESS LOANS & JUMP AT THEM. EXAMPLE: LOS
ANGELES BUSINESS JOURNAL [BANKING & FINANCE SECTION]. EVERY CITY HAS SUCH
ADVERTISEMENTS.
DAN WENT TO “WHEREVER IN THE WORLD THEY WERE LENDING MONEY” TO GET THE MONEY HE
WANTED TO DO HIS DEALS. THERE IS SOMEONE STUPID ENOUGH TO LOAN YOU MONEY FOR YOUR
DEAL SOMEWHERE IN THE WORLD.
IT’S JUST A MATTER OF KNOCKING OUT ENOUGH DOORS. IT’S VERY MUCH LIKE HOW YOU APPLY
FOR JOBS. IF YOU SEND YOUR RESUME TO 30 TO 50 ORGANIZATIONS, YOU MIGHT NOT GET ANY
RESPONSE. BUT IF YOU SEND YOUR RESUME TO 700 ORGANIZATIONS, YOU WILL GET AT LEAST ONE
JOB OFFER. IT’S A NUMBERS GAME. DAN HAD PERSONALLY GIVEN AT LEAST 300 TO 350 PERSONAL
ONE-ON-ONE BAN FINANCIAL INSTITUTIONS PRESENTATIONS. HE CALLED BANKS FROM ALL OVER
THE WORLD IN 40 TO 50 STATES. HE ALWAYS GOT MONEY. THERE’S SOMEONE MORONIC ENOUGH
TO GIVE YOU WHAT YOU NEED. YOU CAN’T GET THE MONEY BECAUSE YOU DON’T WANT IT BAD
ENOUGH.
YOU GOT TO MAKE THE CALLS. YOU GOT TO GO SEE PEOPLE.
EVEN BAD DEALS GET FINANCED BECAUSE BANKS HAVE TO GET THE MONEY OUT.
GO TO YOUR BANK YOU’RE ALREADY DOING BUSINESS WITH AND SHOW THEM THE FINANCE DEAL
THAT YOU’RE GOING TO TRANSACT TO BUY A NEW COMPANY. AND BECAUSE THEY DON’T WANT TO
LOSE THE BANKING RELATIONSHIP, THEY WILL BE WILLING TO GIVE YOU MORE MONEY ON A BAD
DEAL JUST SO YOU CAN KEEP THE BANKING RELATIONSHIP.
HOW TO GET THE MONEY WITH ZERO COLLATERAL OR SECURITY?
YOU HAVE TO CALL A LOT OF BANKERS. CALL EVERY BANK THAT IS ADVERTISING FOR LOANS. MAKE
50 TO 100 PRESENTATIONS. TELL THEM ABOUT YOUR IDEA. TELL THEM: “I DON’T HAVE ANY TRACK
RECORD. I HAVE NO ASSETS. I AM WILLING TO PUT ALL RECEIVABLES. I AM WILLING TO SIGN THE
STOCK OF THE COMPANY. PLUS THE PERSONAL GUARANTEE. I NEED TO BORROW _____
THOUSANDS/ MILLIONS [FILL YOUR AMOUNT]”. YOU WILL FIND SOMEONE THAT WILL DO IT.
SELL THE SHIT OUT OF IT WITH ENTHUSIASM. DON’T EVER GIVE UP.
HOW TO GET RID OF YOUR TEAM?
WHEN YOU GET RID OF SOMEONE, NEVER GIVE THEM A HOOK BACK WITH WHICH TO GET BACK IN.
ALWAYS MAKE IT CLEAN AND DEFINABLE. NO WAY FOR THEM TO BE BACK IN THE DEAL. ESCORT
THEM OUT.
HOW TO STRUCTURE AN EQUITY POSITION AND NOT PUT THEM IN A POSITION OF CONTROL?
YOU HAVE TO TAKE SOME RISK. IF YOU ARE A MINORITY SHAREHOLDER IN A COMPANY, YOUR
RIGHTS ARE ALMOST NOTHING, CLOSE TO ZERO. THE ONLY RIGHTS THEY HAVE ARE UPON
LIQUIDATION IF YOU EVER LIQUIDATE. OR YOU CAN EASILY BUY THEIR SHARE BACK.
YOU WILL NEVER GET MORE OUT OF AN EMPLOYEE UNLESS WHEN THEY BECOME THE PARTNERS.
ALWAYS REFER TO YOUR EMPLOYEES AS PARTNERS. IT’S A VERY EFFECTIVE WAY TO BOOST
MORALE, NOT JUST FOR THE PEOPLE THAT YOU’VE GIVEN THE EQUITY TO, BUT ALL THE PEOPLE
ASPIRING UP THE LINE.
BUT WHEN YOU GET RID OF THEM, MAKE IT FINAL AND DEFINITIVE.
IF YOU WANT TO MAKE A LOT OF MONEY, YOU GOT TO GIVE THEM A LOT OF EQUITY. NEVER ASK
FOR MONEY FROM THEM. DAN HAS GIVEN AS MUCH AS 40% EQUITY.
IT IS THE MOST DIFFICULT THING TO DO FOR MOST OF THE CEOs TO GIVE AWAY THEIR EQUITY TO
THEIR EMPLOYEES. DAN FINDS IT IS THE EASIEST THING FOR HIM TO DO AS IT BOOSTS GROWTH OF
THE COMPANY. WHEN DAN GIVES AWAY HIS EQUITY TO HIS GUYS, THESE GUYS WOULD DIE FOR
HIM.
EVEN IF YOU GIVE AWAY 10% EQUITY TO THE WRONG PEOPLE, IT MEANS NOTHING. THEIR RIGHTS
ARE NOTHING.
WHEN YOU’RE GOING TO SELL THE COMPANY, IT MEANS A LOT FOR THE SHAREHOLDERS. YOU
MAKE IT EASY FOR THEM.
IT’S EASIER TO DO IT WITH:
NO HANDS ON MANAGEMENT
NOT LOOKING AT THE PAPERS FOR NUMBERS
ANOTHER EQUIVALENT OF EQUITY TO GIVE AWAY IS SUBSIDIARY COMPANIES OF YOUR PRIVATE
COMPANY.
YOU DON’T GET PAID FOR WHAT YOU DO. YOU GET PAID FOR WHAT YOU GET PEOPLE TO DO FOR
YOU. AND IT’S A LOT EASIER TO GET PEOPLE TO DO STUFF IF THEY OWN PART OF THE COMPANY,
AND THEY OWN PART OF THE DEAL.
DAN HAS AN EQUITY POOL IN WHICH HIS ASSISTANTS HAVE 5% OF EVERYTHING HE OWNS,
INCLUDING ALL THE COMPANIES.
YOU CAN’T MAKE A MISTAKE GIVING AWAY EQUITY. IT’S ALWAYS THE RIGHT DECISION. BUT WE’RE
TRAINED BY THE PRECONDITIONED THINKING THAT SAYS “WHY AM I GIVING 5% WHEN I DON’T
HAVE TO. THE POOR BASTARD WORKS FOR YOU ANYWAY.” YOU DO IT BECAUSE THEN YOU DON’T
HAVE TO WORK. THAT ALLOWS YOU THE FREEDOM OF DOING MORE BUSINESS OR NOT. THAT’S
YOUR CHOICE. IT ALLOWS FREEDOM IN YOUR LIFESTYLE.
WHAT TO DO WHEN AN EMPLOYEE EXITS THE COMPANY?
THESE ARE THE WAYS TO DEAL WITH THIS SITUATION:
TELL THEM THAT THEIR MINORITY INTEREST IN THE COMPANY IS NOT WORTH ANYTHING TO YOU.
MAKE A BUYBACK AT THE BOOK VALUE
FIRE THEM WITH A DOLLAR
HAVE A GIANT EQUITY POOL WHERE THERE ARE 10% OF ASSETS & BASED ON SENIORITY, YOU
BECOME PART OF IT AFTER 3 YEARS OF SERVICE
DAN NEVER HAD TO BUY BACK ANY STOCK. HIS EMPLOYEES EITHER STAYED WITH HIM OR DIED.
DAN BOUGHT A COMPANY FOR $11 MILLION BY GIVING HIM $4 MILLION IN STOCK AND $7 MILLION
IN CASH AND KEPT THE SELLER’S VOTING RIGHTS OF THE STOCK FOR 5 YEARS.
WHEN YOU GIVE AWAY EQUITY TO MANAGERS, YOU DON’T HAVE TO KNOW ANYTHING ABOUT
HOW TO RUN THE BUSINESS. THEY WILL TAKE CARE OF IT.
YOU DON’T BUILD A DREAM TEAM. YOU BUY ONE.
UPDATED:
CATEGORIES: DAN PENA'S 7 STEPS QLA SUMMARYTAGS: DAN PENA 1993, DAN PENA 7 STEPS TO
SUCCESS, DAN PENA QLA FOR DUMMIES, DAN PENA SCRIPT, DAN PENA SUCCESS TEST, QLA FOR
DUMMIES PDF, QLA METHODOLOGY PDF, QLA TEMPLATES
Step THREE: Building The Perception – Dan Pena’s QLA Model [Summary]
CREATE QUANTUM WEALTHLEAVE A COMMENT
FEAR OF FAILURE IS CAUSED ONLY BY LACK OF SELF ESTEEM AND LACK OF SELF CONFIDENCE
Step THREE: Building The Perception – 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 THIRD
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 THREE: Building the perception – perception is reality
AN EXTREMELY IMPORTANT PART OF BEING A HIGH-PERFORMANCE PERSON IS BUILDING A
PERCEPTION BEFORE YOU’RE A HIGH-PERFORMANCE PERSON. THIS TIES IN WITH YOUR COMFORT
ZONE AND THIS WILL BE A BIG HURDLE.
HOW DO YOU PERCEIVE YOURSELF WHEN YOU LOOK INTO THE MIRROR? DO YOU THINK OF
YOURSELF AS SOMEBODY SPECIAL?
HIGH-PERFORMANCE PEOPLE LOVE THEMSELVES AND THEY THINK THAT THEY’RE SPECIAL. SOME OF
THEM SEE THEMSELVES WITH HALOS.
HIGH-PERFORMANCE PEOPLE GET PAID FOR PERFORMING THEIR HOBBIES.
I MAY BE WRONG BUT I AM NEVER IN DOUBT. NEVER EVER SHARE DOUBTS.
DON’T SHARE YOUR DOUBTS WITH ANYONE. THE DEAL IS ALWAYS IN THE POSITIVE. THE GLASS IS
ALWAYS COMPLETELY FULL.
20 BIGGEST MISCONCEPTIONS (CONVENTIONAL WISDOM) IN BUSINESS: [AVOID THESE LIKE
PLAGUE]
MORE CONTROL, NOT LESS CONTROL
YOU SHOULD HAVE PRIDE OF AUTHORSHIP
NO FREE EQUITY [ALL HIGH-PERFORMANCE PEOPLE GIVE AWAY EQUITY]
COST CONTROL IS THE MOST IMPORTANT ASPECT OF RUNNING A BUSINESS. REVENUE IS NOT.
GOALS SHOULD BE REALISTIC
SHARE DOUBTS WITH TRUSTED ASSOCIATES
SUPER SUCCESS IS FOR EVERYONE
YOU CAN HAVE IT ALL BALANCED LIFE [YOU GET BALANCED AFTER YOU’VE MADE A TON OF MONEY]
YOU CAN DO IT ALONE
I CAN DO IT ON CHEAP
I CAN GET GOOD ADVICE AT SEMINARS FOR NOTHING [YOU GET WHAT YOU PAID FOR IN LIFE]
I CAN GET HIGH-PERFORMANCE ADVICE FROM MY PEERS
SHORT TERM SOLUTIONS WORK FOR LONG TERM PROBLEMS
FEAR OF FAILURE IS NOT CAUSED BY LACK OF SELF ESTEEM AND SELF CONFIDENCE [FEAR OF
FAILURE IS CAUSED ONLY BY LACK OF SELF ESTEEM AND LACK OF SELF CONFIDENCE]
SUPER SUCCESSFUL PEOPLE CAN DO MANY THINGS AT ONCE [SUPER SUCCESSFUL FOCUS ON THE
FEW, NOT THE MANY]
EXPERIENCE MAKES YOU READY FOR SUCCESS [COMFORT MAKES YOU READY FOR SUCCESS]
PERFECTIONISTS AND DETAIL-ORIENTED PEOPLE FIND IT EASIER TO SUCCEED IN BUSINESS
PROFESSIONALS CANNOT BE USED AS ALLIES
BUSINESS SHOULD RUN SMOOTHLY [IF IT’S RUNNING SMOOTHLY, IT’S NOT GROWING, IT’S DYING]
SET TIME LIMITS FOR GOALS [NO. TIME LIMITS ARE RESTRICTIONS. YOU CAN ACHIEVE YOUR GOALS
FASTER IF YOU DON’T SET TIME LIMITS AND WORK HARD AT IT]
YOU LET YOURSELF DOWN, YOUR BUSINESS DOWN, YOUR FAMILY DOWN, & MANKIND DOWN,
WHEN YOU LOSE FOCUS
USE ACCOUNTANTS AND LAW FIRMS THAT YOU CANNOT AFFORD. OFFER THEM EQUITY IF THEY GO
THROUGH THE DEAL AND MAKE IT HAPPEN.
UPDATED:
CATEGORIES: DAN PENA'S 7 STEPS QLA SUMMARYTAGS: DAN PENA 1993, DAN PENA 7 STEPS TO
SUCCESS, DAN PENA QLA FOR DUMMIES, DAN PENA SCRIPT, DAN PENA SUCCESS TEST, QLA FOR
DUMMIES PDF, QLA METHODOLOGY PDF, QLA TEMPLATES
Step TWO: Clarify Your Vision – Dan Pena’s QLA Model [Summary]
CREATE QUANTUM WEALTH1 COMMENT
DO EVERYTHING YOU CAN, EVERY GODDAMNED POSSIBLE THING, TO GET WHAT YOU WANT.
PERIOD. YOU GET WHAT YOU WANT OR YOU DIE. YOU DON’T QUIT.
Step TWO: Clarify Your Vision – 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 SECOND
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 TWO: Clarify your vision – are you crystal clear?
YOU HAVE TO GO THROUGH A CLEANSING PROCESS OF CLARIFYING YOUR VISION. PART OF
CLARIFYING YOUR VISION IS DECIDING WHERE YOU REALLY WANT TO GO. YOUR GOALS AND
WHAT’S REALLY IMPORTANT TO YOU.
YOU HAVE TO CLARIFY YOUR VISION TO BECOME a LASER BEAM FOCUSED ON THE FEW THINGS ON
THE MANY.
YOU DON’T HAVE TO KNOW HOW YOU’RE GOING TO GET THERE, BUT YOU NEED TO KNOW WHERE
YOU WANT TO GO.
WHEN JOHN KENEDY SAID THAT WE’RE GOING TO SEND THE FIRST MAN ON the MOON WITHIN A
DECADE, IT HAPPENED IN 1969.
WHEN DAN SET HIS GOALS OF 2 BILLION AND HIGHEST PAID ENERGY EXECUTIVE, HE ONLY HAD $820
AND HE WAS SITTING IN A HOUSE WITH LEASED FAX MACHINE, A PHONE AND A SCREAMING KID
THAT HAD JUST BEEN BORN.
WHEN RICK SCOTT STARTED AND ACQUIRED HIS FIRST HEALTH CARE COMPANY HE WANTED HIS
GOAL WAS TO DOMINATE AND CONTROL THE HEALTHCARE BUSINESS IN THE UNITED STATES.
THAT’S A PRETTY BIG DEAL FOR A BOY FROM T.C.U. LAW SCHOOL.
TED TURNER SAID, AS TOLD TO HIM BY HIS FATHER – “TED, SET GOALS YOU CANNOT ACCOMPLISH
IN YOUR LIFETIME.”
WE HAVE TO BE CLEAR ON WHAT WE WANT TO DO AND WHERE WE WANT TO GO, BUT WE DON’T
NECESSARILY HAVE TO KNOW HOW WE’RE GOING TO DO IT.
IF YOU CAN IMAGINE IT, YOU CAN ACHIEVE IT. IF YOU CAN DREAM IT, YOU CAN BECOME IT.
ONE GOOD THING ABOUT BEING YOUNG IS THAT YOU’RE NOT EXPERIENCED ENOUGH TO KNOW
THAT YOU CAN’T POSSIBLY DO THE THINGS YOU’RE DOING.
PENAISM: THE CONSEQUENCE OF A MISGUIDED DECISION IS DE MINIMIS IN THE CONCEPT OF
ETERNITY.
ANYTHING YOU’VE EVER DONE IN YOUR WHOLE LIFETIME HERETOFORE AND IN THE FUTURE,
EXCEPT IF IT’S LIFE AND DEATH SITUATION, IN THE COSMOS OF TIME IS NOT A FART IN THE WIND.
NOTHING YOU HAVE EVER DECIDED, NOTHING YOU HAVE EVER DONE, NO DECISION, NO PERSON
YOU EVER FIRED, NO PERSON YOU EVER HIRED, NOTHING EVER DONE IN YOUR MISERABLE LIFE IS
MORE THAN A FART IN THE WIND. YET YOU PONDER, PONTIFICATE, LOTUS 1-2-3 BUSINESS
DECISIONS TO DEATH.
SOME PEOPLE BEAT DECISIONS TO DEATH.
JUST THINK ABOUT ALL THE TIME YOU WASTE ON ALL THIS SUPERFLUOUS CRAP IN YOUR LIFE.
FORGET ABOUT RIGHT OR WRONG. WHY WORRY?
JUST RECOGNIZE AND SEIZE OPPORTUNITIES.
CONVENTIONAL WISDOM TEACHES YOU THE OPPOSITE. IT SAYS DETAILED ORIENTED PERSON IS
GOOD. THAT’S WHY MOST PEOPLE ARE POOR.
DO EVERYTHING YOU CAN, EVERY GODDAMNED POSSIBLE THING, TO GET WHAT YOU WANT.
PERIOD. YOU GET WHAT YOU WANT OR YOU DIE. YOU DON’T QUIT.
FISH WITH NETS, NOT WITH A BAIT.
SETTING GOALS AND OBJECTIVES
YOU’VE ALREADY DONE IT A NUMBER OF TIMES, BUT REMEMBER IT COSTS NOTHING TO AIM HIGH.
ALWAYS SHOOT FOR THE MOON. THAT WAY YOU’RE AT LEAST 80% THERE EVEN IF YOU DON’T HIT
THE BULL’S-EYE.
THE ONLY REASON WE DON’T SET HIGHER GOALS IS BECAUSE OF OUR LOW EXPECTATIONS BECAUSE
WE BASICALLY THINK THAT WE’RE ALL DIRTBAGS. WE DON’T FEEL GOOD ABOUT OURSELVES. WE
DON’T HAVE ENOUGH SELF-ESTEEM, SELF-WORTH, AND SELF-CONCEPT TO THINK THAT WE CAN DO
BETTER AND TO THE EXTENT THAT WE HAVE ACHIEVED ANY SUCCESS WE THINK THAT’S BECAUSE
WE’RE FORTUNATE AND THAT WE’RE NOT SURE IF WE COULD DO IT AGAIN.
BY THE END OF YOUR QLA PROGRAM, YOU’LL BE ABLE TO PINPOINT WHY YOU HAVEN’T ACHIEVED
MORE. DAN PENA PUSHED HIS MENTEES INTO HAVING THE SELF-CONFIDENCE TO DO IT.
ANYBODY CAN DO IT.
WE DO NOT FEEL GOOD ABOUT OURSELVES.
SET HIGH GOALS: ADD 3 OR 4 ZEROS AND MULTIPLY TIMES TEN.
ALWAYS ALWAYS ALWAYS PAY YOURSELF FIRST.
DAN USED TO PAY 15% OF PRE-TAX PROFITS TO HIS EMPLOYEES AND BONUSES BETWEEN 40% TO
200% AND HE USED TO PAY HIMSELF A LOT OF MONEY. EVERY TIME HE DID A DEAL, HE PAID
BONUSES.
BY DOING THIS, YOU GET RICH IN THE MEANTIME AND THEN WHILE SELLING THE COMPANY, YOU
DON’T HAVE TO PITCH FOR MORE.
TWO REASONS TO PAY YOURSELF BONUSES [TO EVERYONE, WHOLE CHAIN OF PEOPLE FROM THE
CHAIRMAN, OWNER/ENTREPRENEUR TO THE LAST GUY IN THE COMPANY WHO WASHES YOUR
CAR]:
YOU DON’T HAVE TO SQUEEZE THE LAST DOLLAR OUT AND IT’S GONNA BE EASIER TO SELL
IF THE UPCYCLE TO SELL YOUR BUSINESS NEVER COMES, AT LEAST YOU’VE GOTTEN MADE A LOT OF
MONEY IN THE MEANTIME
WHENEVER YOUR BUSINESS IS IN VOGUE, GET RID OF IT.
WHY GOALS?
GOALS EXPAND YOUR AWARENESS OF OPPORTUNITIES. PEOPLE TEND TO PAY ATTENTION AT
WHAT’S HAPPENING IN DIRECT PROPORTION TO THE VALUE IT HAS TO THEM. GOALS STIMULATE
CREATIVITY.
MOST OF THE PEOPLE SIMPLY MEANDER THROUGHOUT THEIR LIVES LIKE A MEANDERING RIVER
AIMLESSLY WITHOUT ANY GOALS.
FOOTBALL TEAMS & ATHLETES HAVE DEFINABLE GOALS. LARGE CORPORATIONS AND VIRTUALLY ALL
PUBLIC CORPORATIONS SET GOALS & PARAMETERS SO THAT THE CAN TELL THE SHAREHOLDERS.
YET SO MANY SMALL TO MEDIUM SIZE BUSINESSES HAVE NO GOALS. THEY JUST MEANDER. THE
FEW THAT HAVE GOALS ARE BASED ON LOW EXPECTATIONS BECAUSE SELF-WORTH OF THE OWNER
OR THE WHOLE STAFF IS SO LOW THAT THEY’RE ALMOST AS GOOD AS NOT HAVING GOALS. BUT IT’S
BETTER TO HAVE LOUSY GOALS THAN NO GOALS.
DAN WOULD RATHER HAVE A MEDIOCRE GOAL PROGRAM ENFORCED WITH ENTHUSIASM THAN A
GREATEST GOAL PROGRAM ENFORCED MEDIOCRELY. AN AVERAGE ENTHUSIASTIC PERSON IS MORE
VALUABLE THAN AN MBA OR Ph.D. WITHOUT PASSION OR EXECUTION ABILITIES.
DAN’S KNOWLEDGE IS BASED ON ALL THE MISTAKES HE MADE.
TALK TO THOSE PEOPLE AND HANG AROUND WITH THOSE WHO HAVE MADE A LOT OF MISTAKES.
YOU’RE NOT SUPPOSED TO BE CONCERNED ABOUT WHAT HAPPENS IN THE MIDDLE OF A JUMP.
YOU’RE SUPPOSED TO BE THINKING ABOUT WHERE YOU’RE GOING TO LAND.
READ JIM NEWMAN’S BOOK RELEASE YOUR BRAKES FOR SETTING GOALS.
KEY RESULTS
CHAMPION
MILESTONES (THINGS THAT NEED TO TAKE PLACE FOR THE GOAL TO COME TO FRUITION)
DAN DOESN’T USE DATES FOR GOAL SETTING BECAUSE DATES PUT LIMITS ON WHEN YOU CAN
ACHIEVE YOUR GOAL.
IF YOU CAN PAY GREAT INCENTIVES AND BONUSES TO YOUR EMPLOYEES, THEY CAN GET THE WORK
DONE QUICKLY AND ACHIEVE COMPANY’S GOALS FASTER. ULTIMATELY IT ALL COMES DOWN TO
HOW MUCH MONEY YOU GOT.
REVIEW YOUR GOALS PERIODICALLY
DAN’S ANSWER TO THE QUESTION: IF YOU HAD TO DO YOUR WHOLE LIFE OVER AGAIN, WHAT
WOULD YOU DO DIFFERENTLY? – “I WOULD SET MY GOALS HIGHER.”
74% OF ALL FORTUNE 500 COMPANY CEOs HAVE MILITARY BACKGROUNDS. Why?
BECAUSE THEY ARE:
GOAL-ORIENTED
DISCIPLINED
PASSIONATE
HIGH-PERFORMANCE PEOPLE FEEL GOOD ABOUT THEMSELVES.
IT’S ALL ABOUT EXPECTATIONS. IT’S CRITICALLY IMPORTANT THAT WHEN YOU SIT DOWN TO SET
GOALS, YOU SET THEM WITH EXTREMELY HIGH EXPECTATIONS, NOT LOW EXPECTATIONS.
WE HAVE TO CHANGE. BUSINESS AND LIFE ARE NOT STATIC. MOST PEOPLE ARE.
GET ADVICE FROM SOMEONE YOU RESPECT
FRIENDSHIP IN TROUBLE
COURAGE IN BATTLE
WISDOM IN RAGE
DAN DOESN’T BELIEVE IN MASTERMIND GROUPS. MENTOR RELATIONSHIPS WORK.
HOW TO FIND A MENTOR?
FIND SOMEONE SIGNIFICANTLY SUCCESSFUL THAN YOURSELF
FIND A SENIOR PERSON YOU REALLY LIKE AND RESPECT
THEY HAVE TO HAVE VASTLY MORE EXPERIENCE THAN YOU
THEY HAVE TO BE ACCESSIBLE TO YOU. SOMEBODY LOCAL
SAME FIELD OF ENDEAVOUR DESIRABLE BUT NOT MANDATORY
HAVE SOMETHING ELSE IN COMMON OUTSIDE THE BUSINESS
NOBODY TALKS TO THE BIG COMPANY CEOs.
TAKE YOUR MENTOR TO LUNCH AND DINNER.
SO FEW PEOPLE CALL HIGH PERFORMING PEOPLE FOR MENTORSHIP
PEOPLE WITH TREMENDOUS SUCCESS WANT TO PASS IT ON
MOST HIGH-PERFORMANCE PEOPLE RESPOND TO COLD CALLS AND THEY WILL SIT DOWN WITH YOU
AND THEY WILL TALK TO YOU
UPDATED:
CATEGORIES: DAN PENA'S 7 STEPS QLA SUMMARYTAGS: DAN PENA 1993, DAN PENA 7 STEPS TO
SUCCESS, DAN PENA QLA FOR DUMMIES, DAN PENA SCRIPT, DAN PENA SUCCESS TEST, QLA FOR
DUMMIES PDF, QLA METHODOLOGY PDF, QLA TEMPLATES
Step ONE: Creating Your Personal Foundation For Success – Dan Pena’s QLA Model [Summary]
CREATE QUANTUM WEALTH2 COMMENTS
THERE IS A BIG DIFFERENCE BETWEEN PLAYING NOT TO LOSE AND PLAYING TO WIN. MOST PEOPLE
PLAY NOT TO LOSE. THEY DON’T PLAY TO WIN.
Step ONE: Creating Your Personal Foundation For 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 FIRST 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 ONE: Creating your personal foundation for success
YOUR BUSINESS DIES BECAUSE OF LOW EXPECTATIONS
IT’S VERY EASY TO BECOME SATIATED
DAN SPENDS 110 % OF HIS EARNED INCOME EVERY YEAR
DAN SPENDS ALL HIS MONEY BEFORE A BIG DEAL SO THAT HE CAN PUT ADDITIONAL PRESSURE ON
HIMSELF TO MAKE SURE HE DOESN’T LOSE FOCUS. HE PUTS HIMSELF IN UNCOMFORTABLE
SITUATIONS.
HAVE A HIGH SELF ESTEEM AND THINK HIGHLY OF YOURSELF
BECAUSE YOU DON’T WANT TO WAVER IN TRANSACTION
MAKE EACH TRANSACTION LIFE AND DEATH
DAN HAS BEEN FINANCIALLY DEAD 5 TIMES AND HE HAS RISEN LIKE A PHOENIX EVERY SINGLE TIME
99% OF THE BUSINESSES SUFFER FROM THESE 2 PROBLEMS:
THEY HAVE LOW EXPECTATIONS FROM THEIR BUSINESS
THEY DON’T BELIEVE IN THEMSELVES ENOUGH
THERE IS A BIG DIFFERENCE BETWEEN PLAYING NOT TO LOSE AND PLAYING TO WIN. MOST PEOPLE
PLAY NOT TO LOSE. THEY DON’T PLAY TO WIN.
IF YOU COULD FEEL THE ADRENALIN RUSH OF BEING A WINNER CONSTANTLY, IT’S BETTER THAN
SEX. THAT ADRENALIN RUSH MAKES YOUR LOINS WARM FOR ALWAYS WINNING.
IT’S REPLICATION, REPLICATION, REPLICATION!
“GREAT MEN HAVE BECOME MEDIOCRE BECAUSE OF INABILITY TO ACCEPT AND ABIDE BY A DEFEAT.
IF YOU SHOULD ACHIEVE ANY KIND OF SUCCESS AND DEVELOP SUPERIOR QUALITIES AS A MAN,
CHANCES ARE IT WILL BE BECAUSE OF THE MANNER IN WHICH YOU MEET THE DEFEATS THAT WILL
COME TO YOU JUST AS THEY COME TO ALL MEN.” – RICHARD NIXON
THINK LIKE RICHARD NIXON
IT’S NOT HOW MANY TIMES YOU GET KNOCKED DOWN, BUT IT’S HOW MANY TIMES YOU GET UP.
BEST WAY TO PROJECT YOUR FUTURE IS TO CREATE IT YOURSELF
PRACTICE BEING COMFORTABLE IN DIFFICULT SITUATIONS
MAKE SO MUCH MONEY YOU DON’T KNOW HOW MUCH YOU HAVE
LET YOUR EMPLOYEES ALONE. LET THEM DO THE WORK. THEY KNOW IT BETTER.
YOU, AS THE CEO, JUST FOCUS ON FINDING DEALS, FINDING ADDITIONAL SOURCES OF REVENUE,
AND FINDING ADDITIONAL SOURCES OF FINANCING. THAT’S IT. NOTHING ELSE.
MOST OF US ARE CONTROL FREAKS. BECAUSE WE ARE INSECURE. WE LACK SELF-ESTEEM. WE LACK
SELF-WORTH. STOP CONTROLLING MICRO THINGS LIKE MANAGING/RUNNING BUSINESS.
STRUCTURE SHOULD FOLLOW STRATEGY
UNLESS YOU UNDERSTAND WHAT YOU’RE DOING, WHERE YOU ARE AND WHERE YOU WANT TO GO,
MERE MARKETING WON’T NOT WORK.
YOU MUST BECOME A DELIVERY BOY. DELIVERING THE QLA PRODUCT, WHICH IS FINDING THE NEED
(MOTIVATED SELLER), AND DELIVERING HELP (ACQUISITION)
WHY YOU HAVE A WEAK DREAM TEAM IS THAT YOU THINK YOU CAN GET SOMETHING FOR
NOTHING, WHICH IS BULLSHIT. YOU MUST PAY YOUR LAWYERS AND ACCOUNTANTS WELL TO HAVE
A TOP NOTCH DREAM TEAM.
YOU GET WHAT YOU PAY FOR IN LIFE. THE BEST THINGS ARE EXPENSIVE.
USE LITIGATION AND LAWYERS AS A BUSINESS TOOL. PAY YOUR LAWYERS HEFTY AMOUNT SO THAT
YOU CAN WIN THE CASE TO STAY RICH.
NEGOTIATIONS IN THE DEALS SHOULD BECOME A PART OF YOU. DO IT SO MANY TIMES THAT YOU
GET COMFORTABLE NEGOTIATING. DAN HAS DONE HUNDREDS AND THOUSANDS OF DEAL. HE CAN
NOW DO IT WHILE SLEEPING.
IT’S BETTER TO PAY SOMEONE ELSE TO DO ALL THE MICRO THINGS SO THAT YOU HAVE MORE TIME
TO GET MORE BUSINESS
DON’T ASSOCIATE WITH PEOPLE WHO BITCH ABOUT THE CHUMP CHANGE
MAKING MONEY SHOULD BE LIKE A HOBBY. IT SHOULD BE FUN. YOU SHOULD BE COMFORTABLE
SPENDING AS MUCH AS YOU WANT WHENEVER YOU WANT.
STORY OF NAPOLEON HILL. HOW HE USED TO VISUALIZE WEALTH AS A POOR BOY.
HIGH JUMPERS, BASEBALL PLAYERS, PROFESSIONAL ATHLETES, THEY ALL ANCHOR AND VISUALIZE.
SPORTS PSYCHOLOGISTS TEACH YOU HOW TO ANCHOR THE SUCCESS.
DAN HAS PICTURES ALL OVER HIS HOUSE OF THE THINGS THAT HE DID THAT REMIND HIM OF HIS
SUCCESS.
VISUALIZATION ISN’T ANY GOOD UNLESS YOU HAVE AN ANCHOR.
IT IS SAID THAT IF YOU WILL DO THINGS YOU FEAR, DEATH OF FEAR IS CERTAIN. COURAGE IS NOT
THE ABSENCE OF FEAR AND ANXIETY. IT IS PROCEEDING IN SPITE OF THOSE FEELINGS.
YOU CAN MAKE A LOT OF MONEY IF YOU DO THINGS THAT MAKE MOST PEOPLE UNCOMFORTABLE.
DAN HAS LOST THE FEELING OR FEAR OR KNOWLEDGE THAT HE COULD LOSE IN COURT. IT DOESN’T
EVEN ENTER HIS MIND. THAT TAKES PRACTICE. PUT YOURSELF IN SITUATIONS THAT MAKE YOU
UNCOMFORTABLE.
A FEARLESS MAN THRIVES ON FIVE HORIZONS
WHY PEOPLE WANT TO DO DEALS WITH PEOPLE LIKE DAN AND RICK SCOTT IS BECAUSE PEOPLE
WANT TO FOLLOW THE FELLOW WHO FOLLOWS A DREAM.
MOST PEOPLE CONFUSE WISHING AND WANTING WITH PURSUING. THEIR DESIRE FOR A DREAM
MAYBE DESPERATE AND DEEP BUT WHEN THE DESIRE FAILS TO PRODUCE THEY CONCLUDE THAT
THE DREAM CANNOT BE THEIRS. Actually, THE ONLY PROOF THEY HAVE IS THAT THE LONGING IS
NOT ENOUGH. THE DATA AT HAND MERELY PROVED THAT DESIRE ALONE DOES NOT AND CANNOT
DELIVER.
YOU HAVE TO KISS A LOT OF FROGS.
YOU HAVE TO HAVE THAT LEAP IN FAITH.
DAN WANTS PEOPLE THAT ARE SMARTER THAN HIM. PEOPLE THAT ARE CLEARLY A STEP ABOVE DAN
INTELLECTUALLY. MOST PEOPLE CAN’T LIVE WITH THAT. PEOPLE THAT WORK WITH DAN COULD
TELL HIM THAT HE IS FULL OF SHIT. HE LIKES IT.
ANXIETY IS FEAR’S LITTLE BROTHER.
FOR MOST PEOPLE, SUCCESS IS AS FRIGHTENING AS FAILURE BECAUSE TO BE SUPER SUCCESSFUL
MEANS A LOT OF PRESSURE THAT YOU HAVE TO PUT ON YOURSELF. SUPER SUCCESSFUL PEOPLE
DON’T LOOK LIKE YOU.
DAN FEELS COMFORTABLE WRITING CHECKS AND SPENDING MONEY BECAUSE HE THINKS IT’S EASY
TO MAKE A LOT OF MONEY.
“SUCCESS IS NEVER FINAL.” – WINSTON CHURCHILL
GLORY IS FLEETING. NOTHING IS FOREVER. SUCCESS OR FAILURE.
YOU HAVE TO SUCK UP YOUR PANTYHOSE AND PUT YOUR ENTIRE NET WORTH ON RISK. BUT IT’S
NOT ALWAYS MONEY. SOMETIMES IT’S TIME. MORE THAN MONEY IT’S A COMMITMENT TO A
MINDSET CHANGE. IT’S A COMMITMENT TO NOT HANG AROUND DOOFUSES, TO NOT BE
REPRESENTED BY MORONS, TO SURROUND YOURSELF WITH WINNERS. THAT’S MUCH HARDER
THAN PUTTING YOUR NET WORTH ON RISK BECAUSE THAT’S PART OF YOUR EMOTIONAL
CHECKBOOK, NOT THE FINANCIAL CHECKBOOK. FINANCIAL CHECKBOOK IS EASY. IT’S THE
EMOTIONAL CHECKBOOK TO CHANGE YOUR WHOLE LIFE AROUND. DAN NEVER TALKS TO HIS
NEIGHBORS. REASON WHY IT’S HARD, DIFFICULT AND ALMOST IMPOSSIBLE TO MAKE THAT
EMOTIONAL COMMITMENT IS THAT WE KNOW INTELLECTUALLY IN OUR HEARTS THAT SUCCESS IS
NEVER FINAL. NO MATTER HOW SUCCESSFUL WE ARE WE KNOW THAT THERE’S A CHANCE THAT
SOMEBODY’S GOING TO TAKE IT AWAY. THAT’S WHY WE RATIONALLY CHOOSE NOT TO WRITE THAT
EMOTIONAL CHECK AND THEN NOT TO WRITE THE FINANCIAL CHECK BECAUSE WE REALLY CAN’T
TAKE IT EMOTIONALLY. YOU ARE AFRAID OF BANKRUPTCY. THAT’S WHY YOU DON’T DO IT. YOU
ALSO ARE NOT SURE WHETHER THE SUCCESS YOU GOT IS SOMETHING YOU DESERVE OR IF YOU DID
IT BY ACCIDENT OR YOU DID IT BY DESIGN.
GUARANTOR IS A FOOL WITH A PEN.
TALKING ABOUT THE FOLLOWING THINGS IS CRAP:
ORGANIZATION
GLOBAL ECONOMY
SOCIAL TRENDS
TECHNOLOGICAL DEVELOPMENTS
POLITICAL CLIMATE
GENERAL ENVIRONMENT
CUSTOMERS
COMPETITORS
SUPPLIERS
UNIONS
STOCKHOLDERS
REGULARS
INTEREST GROUPS
GLOBAL WARMING
RECESSION
POLITICS
UNTIL YOU ARE RICK SCOTT, THE ABOVE THINGS DON’T MEAN SHIT.
IT DOESN’T MATTER WHAT THE MORONS SAY.
STOP READING BULLSHIT BOOKS OTHER THAN WHAT DAN PENA RECOMMENDS.
YOU ARE THE PROBLEM IN YOUR BUSINESS. YOU ARE THE MORONIC DOOFUS. YOU ARE THE SHORT
HITTER. YOU ARE THE WEAK STICK. YOU ARE THE IDIOT LEADING THE TROOPS. ALL COMPANIES GO
OUT OF BUSINESS BECAUSE OF MISMANAGEMENT.
ONE OF YOUR MAIN THOUGHTS AFTER STUDYING QLA SHOULD BE:
THE REASON WHY I AM NOT A HIGH-PERFORMANCE PERSON IS THAT I REALLY DON’T FEEL GOOD
ABOUT MYSELF. CUT ALL THE BULLSHIT. THIS IS THE REASON.
THE ENEMY IS HERE AND IT’S ME. I AM NOT WHERE I WANT TO BE OR WHERE I SAY/THINK/WISH I
WANT TO BE IS ME BECAUSE I AM NOT WILLING TO PAY THE PRICE – THE EMOTIONAL CHECK.
BECOME A MONOMANIAC – A LEADER WITH EXTREME PASSION, DESIRE & VISION.
EXTREME PASSION, DESIRE & VISION DOESN’T SAY ANYTHING ABOUT DETAILS OR MICRO
MANAGEMENT, OR SIGNING CHECKS, OR BUYING INVENTORY, OR ANY OF THE CRAP THAT YOU DO
EVERYDAY. DON’T BE A DETAILED ORIENTED PERSON.
BECOME A MANAGEMENT BY WANDERING AROUND.