To be a serious entrepreneur,you have to be prepared to step off the precipice. Yes, it’s dangerous. There can be times, having jumped, when you find yourself in free fall without a parachute…Then you reach out and grab a ledge with your fingertips — and claw your way back to safety.

Life has become too cosy for many, who have their lives mapped out by parents and teachers. It’s all a bit, well, comfortable: off you go to university to study a course.  Land a good job, get a mortgage, find a nice girlfriend, boyfriend, partner. It’s a solid life — a good life in many ways — but when was the last time you took a risk?

Many people reading this book will be affluent. If you don’t feel affluent right now, take a minute and think: the very fact that you could afford this book — the very fact that you are able to read at all — marks you out as one of world history’s richest and most privileged people…Affluence makes us lazy. It makes us complacent. It smothers us in cotton wool. If you job’s well paid, who can blame you if you’re not willing to take a risk and, say, set up your own company?

The vast majority are very happy with this arrangement, and good for them. But if you want smashbuckling action in your life, become an entrepreneur and give it a go. Learn the art of trying to set up your own business.

People have a fear of failure, and while is this perfectly reasonable, it’s also very odd. Because it seems to me that it’s through making mistakes that we learn how to do things.

Now, I grant you that you may hit a limit, beyond which you can’t learn from your mistakes. Don’t expect a chart-topping album from me any time soon, or a recital at Carnegie Hall, or a sequence of sonnets, or any of the billion and one other things I’m never going to be great at. But that’s not failure. That’s finding out what you’re good at. The world is much, much bigger than you, and no amount of worldly success if going to change that fact.

Failure is not giving things a go in the first place. People who fail are those who don’t have a go and don’t make an effort. Failures can’t be bothered. There are few people who’ve tried something and fallen who didn’t get enormous satisfaction from trying, and I’ve learned more from people who have tried and faltered than from the few charmed people for whom success came easy.

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Dan Johnston.

We often hear about the power of thought, of belief, and of knowing without significant differentiation.  This can often lead to individuals failing at tasks before proclaiming “But I said to myself ‘I can do it!’”. What we need to understand is the differing levels of belief. Deep down we all understand these different levels. Lets use Bob as an example. Bob thinks he will one day be rich, believes he could find another job whenever he chooses and knows when he jumps up gravity brings him down.

Let us look at the differences:

Thinking: Bob thinks he will “one day be rich.” Thinking is at an academic, conscious level. Thoughts can be changed by other thoughts, by other people, by other books, and by other experiences. While thought is the first step to the deeper levels of knowing, thought alone is not enough to achieve greatness.

Believing: Belief is much stronger than thought. You can feel a belief in your body. A belief is not easily rattled by a new thought, a new book or a challenging experience. Beliefs are aligned with our identity so they require more to be changed than a thought. Bob believes he can find another job when he decideds and has made this part of his identity. In order for this belief to change he may have to spend months unemployed before his sense of identity would let this belief change.

Knowing: When you know something it starts in your gut and runs through your whole body. There is no need for a fortune teller because what you know will happen, you will make happen regardless of circumstances. Knowing at the deepest level is a force to reckon with. As success minded individuals we must learn to take goals we think of believe we will achieve and turn them into what we KNOW will occur. One of my most difficult jobs as a coach is to take powerful ideas individuals know to be true of themselves (I’m not good enough, no one will ever love me, it is too much) and destroy them.

Consider the ways these 3 levels of belief affect our lives and how we can take beliefs of a certain level and make them stronger or weaker.

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Take Action Today,

Dan Johnston.

• Underestimating consumer apathy. Until you have worked on the marketing and sales side of a product campaign you do not realize just how passive our population has become. As a society our natural reaction to advertising has been to shut off our reactions and at least attempt to ignore incoming messages. A more evolved filtration system would be much more effective than apathy, but apathy is what we have developed. Satellite radio offers one of those “I don’t know how I lived without this” experiences which can make for difficult business planning. It brings to mind similar products like the Magic Bullet and Sleep Number Bed. These two companies have managed to be successful where Sirius XM has failed, how come?
• Since the venture capital of the dot com era dried up many amazing companies have been started on 5% of the budget they would have had 2-3 years prior. Often these companies end up being far more financially successful because they are structured to be profitable as soon as possible. Sirius XM is an example of the complete opposite. Starting off with significant capital they signed celebrities like Howard Stern & Oprah to huge contracts in an attempt to attract listeners who would eventually generate the cashflow they needed. Unfortunately, due to point #1, this never happened. Sirius XM has a subscriber base of 18.5 million with, I imagine, an average user fee of $10 per month. That is revenues of $185 million a month. You would think these guys could be turning a profit for that. Unfortunately the debt servicing on money borrowed to support massive contracts, such as the 500 million dollar contract with Stern, chews up these revenues and more. The company should have focused on creating a gradual revenue stream through subscribers to high quality music and news stations first, then used this revenue to purchase celebrity talent once there was a secure user base and profitable business model in place.
• Knowing your market is extremely important. For instance, I am someone who loves music of almost all genres but does not purchase or download a lot of music. I’m also not cool enough to know who is the next best group. Satellite radio is perfect for me, because it allows me to enjoy numerous genres and up and coming bands without anyspecific knowledge or research.

To conclude, be aware of your audience and never underestimate the work required to build a following from them. Whenever possible utilize the strategies of the boot strapper (even if you have the capital) to generate revenue early and build a loyal, referring following. Oh, and don’t sign a contract with one individual work more than 2 years gross revenue.

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Take Action Today,

Dan Johnston.

Gary has a new book coming out that I am very much looking forward to. Its going to be called “Crush It: Cash In On Your Passion.”

You can find Gary on Twitter at: http://twitter.com/garyvee

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Take Action Today,

Dan Johnston.

Needless to say writing a lengthly blog article isn’t in the cards right now, so I thought I would share a video of a presentation I did earlier this year at a Leadership Summit at the University of British Columbia.

While my presentation is professional, the video camera isn’t. Reminds me of watching the classic guru’s earliest movies.

If this is a topic you want to see more articles or videos on please let me know. I’m toying with the idea of a regular video blog and just wrapping my head around it.

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Take Action Today,

Dan Johnston.

This one is really simple. I bought a $500 pair of Logitech THX approved 5.1 speakers when I first moved into my apartment. I mounted 2 above my bed, 1 by the window and the other 2 run to the in suite bathroom. These speakers hook up to my satellite radio or Ipod and I can turn the music on or off easily for the rear (bathroom) speakers.

Coach Dan: Music is one of the best ways to change your mood, get you pumped up and ready to take on the day. You will be amazed how much more enjoyable your morning routine can be with your favourite music or comedy show playing.

Single Dan: So you’ve invited a girl back after a date and she asks to use the bathroom. The night has went well, but it is only a second date and you think the transition from seeing your apartment to rolling around in bed might be too great. What better way to start the mood than turning on some Barry White or Usher while she’s using the bathroom? This move is sure to please.

Business Dan: Time is precious. You’ve got a ton to do in your day and no time to waste. Personally I’m not a news guy but I know many of you need your morning CNBC or CNN before heading off to work. Both of these and about a dozen other news stations are included on XM radio. Why not get your 45 minutes of morning news in while showering, shaving and dressing each morning? Not a big news guy either, I’ve went through a few audiobooks such as Malcolm Gladwell’s Blink while in the shower.

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Take Action Today,

Dan Johnston.

Just Jump & Don’t Look Back

We all feel that urge. We’ve read about Gates, Branson or Jobs and are inspired. We want to say “The hell with it,” burn the boats and leave ourselves with success as our only option. Perhaps you’ve fantasized about telling your boss how horrible her perfume is or sending your friends a postcard from your new European address. While it does take tremendous courage, burning the boats can be an excellent approach to take and will leave you motivated and inspired. You may want to consider the following:

• Having 3-12 months of expenses in a savings account OR
• Insuring you have a good connection with a business owner who will always be willing to take you on for an hourly job (waiter, valet, retail etc) so you have a fall back to pay the bills OR
• You have a friend or family member who, in their support of your venture, agrees that you can live on their couch and out of their fridge if all else fails.

You’ve got where you are because of who you are. That person will only become stronger with failure. The worst case scenario is you try for your dream and fail. It may take you 12-24 months to get back to where you were, probably less.

Test The Waters

Try it out. If you’re considering starting a business around your passion find 1 client and work with them to see how you like it. If you’re dream is around living somewhere else, take an extended vacation (See Vagabonding: An Uncommon Guide To The Art Of Long Term Travel for guides to negotiating extended time off work) and see how you like it. Hiring and training an employee is expensive, when faced with the choice between giving you a 3 month vacation or losing you employers will pick the former.

When setting this up you’ll get scared and have your doubts. Your employer will warn of lost seniority or missed opportunities. Be strong and follow through.

Don’t Quit Your Day Job

Do both. There is no rule that says you can’t live your dream part time, for the time being. Spend your weekends at the beach or building a business. This strategy is particularly effective because it shuts everyone up. Since there is no serious risk your unconscious doesn’t bother creating any big issues to stop you and your friends and family will have too must trouble coming up with reasons to hate on your plans.

If this article has inspired you to take action and move towards your dreams I am honoured. If you are looking for help in that journey, it would be a privilege to serve you.

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Take Action Today,

Dan Johnston.

In his book The Monk & The Riddle Randy Komisar discusses the “Deferred Life Plan” as follows:

Step One: Do What You Have To Do
Step Two: Do What You Want To Do

The idea of this plan is drilled into us from childhood. Themes of putting your time in, earning your dessert or learning to walk before you run are common. The truth is the deferred life plan is a game of carrot and stick that doesn’t need to be played.

So why do we put off what we want to do indefinitely? If you believe we’re all rational beings, which I do, it really makes no sense that we would delay what we claim we really want to do in order to live an existence we don’t really enjoy. So what’s really going on here?

Our unconscious mind is immensely powerful and is committed to our own preservation. This commitment to avoiding pain is often short sighted or mislead. Now don’t get mad just yet, your unconscious really does have your best intentions at heart. For instance, what if what you want to do is retire in Costa Rica on a beach and surf all day? At the age of 40, with a possible retirement at 64 (it was 61 before the economic celebration of the past 6 months), Toby is focused on the end goal. He is able to pull himself through the hard, boring, and frustrating days by thinking about that beach in Costa Rica. This sounds like a great plan that will reward Toby for his years of hard work with an amazing retirement, right?

WHOA HOLD UP.  I hope my readers threw their hands in the air at that last comment. Lets think logically about this. Toby is going to dedicate 24 MORE years of his life in order to spend 11 years (based on the average male lifespan) doing something that teenagers and beach bums are able to do whenever they want!?

I think it was Tony Robbins whom I saw telling a story about a seminar he was hosting on his island in Fiji. The story was a conversation between a local island resident and a hard working American businessman attending the seminar.

Islander: You are always on the go, working so hard, how come?

Businessman: Well I need to be to grow my business and make money.

Islander: How come?

Businessman:  Isn’t it obvious. I need to work hard to grow my business so I can sell it and spend the rest of my days in the sun on a beach!

Islander: But I spend all my days in the sun and on the beach.

Us Westerners have an amazing ability to create convoluted stories in our own minds that justify ridiculous actions when in reality what we seek is often so simple.  We do this to avoid facing our fears and because we’re temporarily lacking courage. We value certainty and consistency in our lives and will do just about anything to preserve it. Change can be scary. A predictible, somewhat pathetic life, is less terrifying than a new and exciting future that could become anything.

Oh, your unconscious isn’t your only enemy. See, your friend’s and family’s unconscious minds are just as dedicated to protecting them and can’t risk your actions breaking the mold. If they see you break the rules and do incredible, fulfilling things with your life they may have to break their own routines and change is scary. To protect their asses expect to be told to grow up, be realistic, or stop acting like a kid.

So lets get back to Toby. We’ve determined his plan is stupid (I use such a basic word intentionally) and his unconscious really isn’t doing him justice, but why? How is his unconscious protecting him? His unconscious is protecting him from change, from uncertainty.

Lets say Toby negotiates a one month vacation as part of a new plan with his employer to allow him to start living for the present. He takes his month and flies to Costa Rica to begin his surfing adventure. Here are 3 of the possible outcomes his unconscious wants to protect him from:

1. He absolutely loves the surf and can not return to work. He knows he will be much happier quitting his job and finding a new way to live. While this solution will provide Toby with much long term happiness and fulfillment, in the short run it will result in instability, pain, and fear of the unknown. This is what his unconscious is trying to protect him from.
2. He hates surfing. The sand bugs him, the water tastes horrible and beach food isn’t his thing. Now Toby is left with no light at the end of the tunnel. He experiences massive pain as his life loses direction. This is what his unconscious is trying to protect him from.
3. Toby breaks his neck on a zip-lining tour and to pay the medical bills has to fly home and return to work early.

Scary stuff. Almost as scary as ignoring your true purpose or dying without passion or fulfillment.

So our unconscious is trying to protect us from the unknown and our friends and family are inadvertently holding themselves and us back by doing the same. When we gain the strength to sit back and look at our situation logically we realize it is wrong, and should be changed but we can’t find the right solution to change it.

I’m sorry that’s all the time we have for tonight’s programming. Tune in next week for part 2: Ideas To Change The Deferred Life Plan.

As always, your comments and feedback are loved and appreciated. I’m particularly encouraging everyone to share their thoughts on Part 1 of this article so I can address any questions you have in Part 2.

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Take Action Today,

Dan Johnston.

So that brings us to the point of this article. What have I learnt about my peers and identity role from this experience.

Do Not Underestimate People
There is a lot of talk in coaching circles about the power of peer groups. The concept that others will try and bring you down to their level or spread the misery is thrown around often. Examples are told of the fat friend who will always encourage  you to have dessert or the single friend who will sabotage your relationships. The other part of this discussion is that we have a certain identity within a peer group. For instance you might be the one who is always funny or boring, early or late, failing or succeeding. These roles are constantly reinforced and become a self fulfilling prophecy, making change much more difficult.

**Note: I am not dismissing the idea of pruning your peer group. There ARE individuals who are perpetual downers, enablers or just plain self destructive you should avoid. I would rather like to point out that I have discovered the majority of people in my life to be even more awesome than I give them credit for. Often as we change it takes time to see that those in our lives were actually a step or two a head of us and were waiting for us to catch up. **

When looking for an example of peer group influence and identity change there is no better example than my own. During my undergraduate I became a member of the Sigma Chi Fraternity. This was actually the beginning of my leadership experience and I have since realized many of the values I coach have roots in the lessons taught to me throughout my undergraduate.  That being said, the stereotypes about Fraternity Men and their love of alcohol are far from false. This past weekend was Sigma Chi’s Province Leadership Conference and as an Alumnus I took part in many of the activities and social functions. As an individual who was always leading the social, and drinking, charge in my undergraduate days I should have encountered many difficult situations based on the lessons described above. This was not the case.

By giving up alcohol for one year I was defying two of the peer group roles by changing my identity within a group and doing something that others may want to bring you down for (it is always more fun if every one’s drinking!). Did I find individuals encouraging me to have a drink or ragging on my resolution to bring me down? Absolutely not. In fact since committing to this outcome I have been blown away by the support of my peers: Individuals have congratulated me on it, told me they were very impressed or considering the same thing and glad to see I was doing it. To have spent the last 2 evenings in a night club with some of my closest friends and old drinking buddies and only receiving positive support is simply amazing.

I now sincerely believe that much of the peer group lessons taught by other professionals is false. Below are my lessons on how to make massive, lasting change within an existing peer group.

Set Big, Public Goals
When you write a goal down and share it publicly it does two things. Firstly it makes it clear that you are serious about achieving it and that it is something important to you. Secondly it gets the word out so you do not need to re explain yourself constantly. While drinking 0% beer I have been approached by half a dozen people questioning why I broke my resolution: Amazingly I hadn’t spoken to any of them since setting the resolution. Facebook is a very powerful tool for this. Write a note and explain the change you are making and why you are doing so.

Be Consistent & Show You Are Serious
If on Tuesday you’re never drinking again, on Thursday you’re on a diet and on Friday you’re having Wine & Lobster people won’t take you seriously. If you have a new goal every week and rarely follow through you can’t expect a lot peer support, trust me I used to do this. When you make a decision to make a change people like to test your conviction before accepting it: Survive the first month and you start to inspire change in others and build momentum.

If You Want To Change Your Identity Within A Group Do Something Dramatic
It takes time to change your reputation or identity within a group but can be done. Consider large gestures and stick with them. If you’ve lived as Scrooge and have sincerely decided to start giving back donate your time and money publicly and consistently. When others keep seeing your name pop up related to Philanthropy their opinion of you will change to the Philanthropist and you will start to encounter more and more opportunities to give.

Think about the small kid being picked on in Elementary school. His identity at that school changes instantly when he clocks the bully square across the face: He will never be picked on again.

Find The Diamonds
As you grow and evolve you will discover new things about those around you. Those who viewed you as a casual drinking buddy may be  an entirely different person when they now see you as someone with more important priorities in their life. There are those in your life who have just been waiting for you to step up.

When your goals and priorities change you should look at your peer group through a fresh set of eyes. Within any company, organization or social circle there is always a diverse range of individuals. You don’t necessary need to change your company, organization or social circle instead change your position within it.

In Conclusion….
So often we feel trapped in our identities. How others perceive us really is a self-fulfilling prophecy. Ironically this can be destructive or  powerful and the choice is up to you. Create an empowering identity and those around you will reinforce it and make life easier. Initially change will be difficult and you will encounter hardship but if you are strong and follow my advice you can create massive, lasting change within your life.

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Take Action Today,

Dan Johnston.

In poker there is a term sunk cost. It refers to money you have already bet that can not be recovered unless you win the hand. Good poker players know that you need to bet based on the following factors: Your odds of winning, how much you will win, and how much you must bet to play. Each bet must be looked at as an individual decision with no emotional attachment to money previously bet. The idea is that often players will keep betting and lose significant money because they are emotionally attached to money they have already bet when they should actually cut their loses and accept their previous bets as a sunk cost. 

I learnt about this poker rule during my days living in my Fraternity days and have since applied it to all aspects of my life. It is one of the most important lessons I have to teach you and will fundamentally change how you view business and relationships. Everyday is a new bet.

Are you firm with your romantic break ups or reflective of an elastic band? Many couples will “break up” and get back together dozens of times in what I would consider a doomed relationship. There are many reasons people do this: One of the main reasons is the idea that they have invested too much time in the relationship to just let it end. I have news for you: If you consider the time you spend with your spouse, lover, boyfriend or girlfriend an investment you should take significant time to reflect on the quality of your relationship. Love is when you enjoy spending time with the other person and wouldn’t rather be anywhere else. If this is the case, there isn’t even a need to apply this concept of invested time because the time spent with a partner was the most enjoyable use of your time at the moment. When this is no longer the case, it is time to move on.

If your end goal is simply to get married to someone, to have someone and therefore not die alone then your perspective of time invested is a valid one. You have invested significant time into a relationship and when it is apparent that the relationship is no longer successful you must consider this a sunk cost and cut yourself loose!

I applied this lesson recently when facing some difficult lifestyle decisions. I spent the bulk of 2008 living, as most of us do, beyond my meanings with little anticipation of an approaching economic shift. In December of 2008 I made the tough choice to do a 180 and rapidly reduce my living expenses and outstanding debts. One of the largest debt components was $12,500 still owed for personal development courses not yet taken. I signed up for the courses on credit, it was no interest no payments for 6 months how could I resist? Despite a despicable refund policy that would cost me thousands I decided owing $5000 and getting nothing in return was better than owing $12,500 and taking an array of courses. The $5000 was a sunk cost, there was no way to recover it. What I had to consider was whether I should spend an additional $7,500 on courses now that my priority had shifted away from spending. Looking at it in these eyes the decision was easy and I sought a refund. If I looked at the decision simply as spending $5000 for nothing or $12,500 for $12,500 worth of courses I would not have made the same decision. Looking at it from the sunk cost perspective left me in a far better financial situation.

The principal can and should be applied to one’s career. The idea that a career change is impossible after a certain age or amount of time in an industry is ludicrous. The most prized assets in the business world are leadership and people abilities which are highly transferable skills. A little gray hair never hurt in the promotions department either.

Looking at decisions through the lenses of sunk cost forces me to live in the present. It is never too late to change your path. The past is the past and the future is completely unrelated to it. What you have done, the time you have invested in a particular job, relationship or business is not relevant for your current decisions. Your actions should be guided by what will make you happiest and most fulfilled in the present moment.

I work with entrepreneurs to provide them with the confidence, focus and strategies needed to successfully build their first business.

Take Action Today,

Dan Johnston.