Your Next Five Moves: Master the Art of Business Strategy – Patrick Bet-David
Your Next Five Moves explores how you can improve your business and your life by learning how to strategize.
Running Out Of Your Drive
People often feel lost after a big deadline because their driver is suddenly gone.
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To solve this, you need to dive deeper into your Purpose.
Define your purpose by asking:
- How do you want to be remembered?
- How do you want to make an impact on other people’s lives?
- What does the greatest version of yourself look like?
Don’t complain that the game is rigged. Instead, find a game in which you have a differential advantage.
Master The Ability To Reason: The Power Of Processing Issues
Before you act on a problem, you must first “process” what’s happening. The key to success at all levels of business is to know how to process issues:
What Is Optimal Processing?
The ability to make effective decisions based on access to information at hand with the highest odds in your favour
Subjecting every difficult choice, problem, or opportunity you face to a rigorous mental analysis
Playing out strategies, seeing the hidden consequences, and sequencing a series of moves to permanently solve problems
But to be great at processing problems, you need to take responsibility whenever you can.
Eight traits to become a great processor
- Ask lots of questions. Having more data leads to making better assumptions
- Don’t care about being right or wrong. Be only interested in the truth.
- Don’t make excuses. Wasting time and effort on why things went wrong is not productive
- Embrace challenges
- Be curious. You can’t solve problems without knowledge
- Prevent more problems than you solve. Spot yellow flags before they turn red
- Learn to negotiate
- Focus on permanently solving a problem. Don’t put band-aids on problems
Investment Time Return (ITR)
Instead of reacting emotionally to problems, use the Investment Time Return (ITR) formula to reach an objective conclusion.
Investment Time Return formula:
Investment. How much will it cost or save
Time. How much time will it take or save
Return. Return on the money and time involved in the decision
Decide Using Investment Time Return (ITR)
Find at least 3 alternative solutions to a given problem. The more choices you have, the better are your decisions
Determine the money investment of each solution
Determine the time investment of each solution. Is it a 3-month project or a 6-month project?
Calculate the return for each solution.
What are the impacts on your revenue and cost?
Figure out the breakeven point of each project
Make a list of the blind spots or things that could go wrong with each decision. If you only think about what could go right, you will overlook the downside.
Master Building The Right Team: Fundamentals
Working effectively with others will mean the difference between enjoying the process and desperately seeking a day job while hiding under your desk.
Instead of being selfish and looking to see what you could take from others, focus on what you could give them.
What To Define:
What benefits are you currently offering to others?
In what way do people improve by associating with you?
How many lives have you changed positively in the past year?
Think about who you need to help you achieve your long-term objectives. Take care of them, and they’ll back you up.
The less your business depends on you, the more valuable it is.
Learn Each Individual’s Love Language
Ways you give and receive love into 5 categories:
- Quality Time. One-on-one time of undivided attention
- Words of Affirmation. Appreciate the effort verbally
- Gifts. Offer something to symbolize your appreciation
- Acts of Service. Be at their disposal when they need you
- Physical Touch. Non-verbal use of body language and touch to show appreciation
Show people that you take the time and care needed to understand what they want.
A simple rule of business is that in order to get, you have to give. Most amateurs are experts at making demands. What they fail to do is offer value first. When you put yourself into the other party’s shoes and lead with how they will win and make money, it will be natural for them to give you what you want.