Paul Kingsman

Just because something is simple to understand, doesn’t mean it’s easy to do.

When we hear explanations that are straight-forward and uncomplicated, often we move quickly to assume that doing them will be easy. When we find that it’s not, we become angry – even frustrated. This is compounded by the fact that we then feel worse for failing at something that initially looked effortless.

Let’s use weight loss as an example.

Think about losing weight. Losing weight can be boiled down the following formula: Expend more calories than you consume.

Simple.

Yet apparently anything but easy. Weight Watchers 2009 revenues alone were $1.5 billion with the entire US weight-loss market exceeding $55 billion.

While expending more calories than you consume (losing weight) might be simple to describe and understand, doing it successfully and safely is not easy.

When we assume we know the amount of effort required to reach a goal or objective based upon our ease of understanding, we can open ourselves up for disappointment. Ease of achievement is not necessarily correlated with ease of understanding. Simple is more of a cognitive response, still requiring a physical and emotional doing and result. Just because cognitively we can understand it, doesn’t mean physically make it a cake walk.

We often revert to breaking things down into smaller pieces, thinking that by making them more understandable, they will become easier to execute. Don’t be fooled and frustrated by this.

When you’re pursuing goals:

Understand that even when things sound simple i.e. picking up the phone and dialing, it is not necessarily so.

Don’t diminish your assumption of the effort needed to achieve the task just because it can be articulated briefly and with few words.

Don’t get discouraged by what sounds simple turning out to be difficult.

Instead,

Realize that the main thing is getting the task done.

See that because it’s not easy, most people will not carry through and complete the task properly.

Understand that by you doing so, you deepen conviction for what you’re doing and increase your chances to grow your business and deepen and develop as a person.

In 1990, Keith Bell wrote a book for competitive swimmers with a great title.

While the title, “Winning Isn’t Normal” is easy to say, it’s a lot tougher to do but definitely worth thinking about.

Obviously we could write and speak all day about what constitutes winning. It is subjective so let’s keep it simple and define it as succeeding at what you want to achieve.

The reality is that most people will not achieve their deepest desires before they die; winning and succeeding is indeed unusual.

People who succeed in life, who achieve their objectives and who truly triumph, do stuff that the majority of people won’t.

Whether it’s in business, sport, personal relationships, fitness -whatever the instance, people who set objectives and targets typically get what they want because they’ll push harder, strive longer, contend further than most. That’s usually all that separates them.

So why won’t more people do this?

Over the next several weeks, amongst other business-building ideas, we’ll look at this.

The first reason that so many people have dreams, New Year’s resolutions and desires, yet fail to reach them, is that they don’t count the initial cost after they have the vision of what it is they wish to achieve.

For instance, if you wish to get fit and lose weight, there is initial losses on several fronts.

To begin eating more correctly,maybe you’ll need to change some eating habits. You’ll need to plan meals better, drink more water and structure your day so your maximizing the effectiveness of your metabolism.

If you wish to get fit, you’ll need to do exercise. Therefore, you’ll need the correct gear, maybe a gym membership, and you’ll come away with sore muscles. It’ll cost you money, time, and effort.

You’ll be tired for the first few weeks as your body adjusts to your new routine. You’ll need to go to bed earlier, meaning that schedules will need to be altered.

While getting fitter, losing weight, getting healthier and living better has clear advantages, the reality is that the first step after the goal has been set is loss.

It’s the same with building a great practice. You might want 40 clients with the correct amount of assets and right attitude, but finsing them will take time, perseverance and sometimes frustration.

Moving from generating money transactionally, and embracing a fee-based model will take time and explaining to your clients. Some won’t get it. There maybe financial loss…initially.

Maybe to reach your objectives, you’re going to have to bring on some part-time admin help. This will take time to do the numbers to make sure fiscally it is a prudent move. You’ll have to spend time trying to find the person then train them in your system, explaining to them why and how you do what you do.

To move forward, there is a cost. Often people overlook this or underestimate it. Once you’ve set your pathway for what you intend to reach, anticipate the cost or sense of loss that may come about. Then, keeping your objectives front and center, continue taking those incremental steps toward your final destination.

-Paul

While advisers are provided with a load of information about the importance of focusing on relationships, the most important thing is to know the ‘X’ number of perfect relationships you need based upon the assets you need to manage to enjoy the lifestyle you want – it’s that simple.

It sounds great to talk about deep relationships, but you can have 5 awesome relationships and chances are, unless one of them is Warren Buffet or someone of his bank balance ilk, you’re going to starve to death. You have to know the ‘X’ number of people you need at that particular asset value, then go relentlessly hunting, find them and bag them.

There’s nothing wrong with getting clinical. In fact, by getting clinical about exactly what you need, you’ll more quickly set up strategies to then find the people you wish to work with.

If you intend to charge 1% on AUM, and are on an 85% payout structure, you’ll gross (without office, admin. and other operating costs being removed) $8,500 for every $1mm client you find – $4,250 for every $500K client.
If you want to make $85K annually, you’ll need to find 10 of these people if you average $1mm each time – 20 of these people if you average $500K.

If you want to be generating $340K in 4 years, you’ll need to find 40 people who have $1mm, or 80 people who have $500K.
You could find 10 or 20 per year for the next 4 years straight and there’s your $340K!!

Not bad.

Whether you need 40 or 80 clients, who gives a rip – once you’ve got them, there’s you’re $340k. That’s pretty good and I say worth shooting for.

Yes, first you must know why you want what you want. But after that, once you have your dream TARGET goal locked in your mind, go and get it.

It’s that easy…well actually, the next steps take some effort, but they’re worth it.

Stay tuned to learn them.

Great article this morning in WSJ about the US running program vs. the African approach.

Basically the African runners, who have been winning bucket-loads more events than anyone else, not just over the US runners, enjoy the race and don’t get caught up in the endless pursuit of trying to find what works and what doesn’t. They know the objective of any race is to win, and they seem to be doing that pretty effectively.

While they learn from the process, they don’t let the search for the ideal training conditions rob them of their passion to run, nor hinder them from doing what they set out to do. They especially don’t let the quest to run faster prevent them from doing the one thing that will probably guarantee them of greater results – tough, focused, training and racing.

It made me think of the financial services industry and building a business. Advisers can spend more time trying to find the allusive ‘magic bullet’ in order to minimize the amount of work needed to be done to ensure success, instead of learning how to enjoy doing the work, and doing it! There’s a fine line between wise problem-solving and simple work avoidance under the guise of continual efficiency-hunting.

True, you want to ensure you’re doing the right stuff, but you also actually need to do the stuff and try and perfect it first. Only then will you really know what works best for you and what doesn’t.

People are too much about work minimization than practice, practice, practice. While you don’t want to practice mistakes, you do need to spend time repeating over and over and over again, the activities that will ultimately lead you to achieving great results.

Happy Hunting.