Nailing down your MBA could help give you the business savvy you need to launch your startup or rise in the ranks of your current company. But not having that celebrated diploma hanging on your office wall doesn’t mean you can’t find your path to success.
CNBC reported on research from Wealth-X which found that only 13 percent of today’s global billionaires have an MBA. That’s not all: Only 30 percent of those billionaires have a bachelor’s degree. Those statistics indicate there is something else at play for these billionaires besides a formal education.
I have found this to be true for my own life. While I am certainly not a billionaire, I am a college dropout, and everything I’ve learned, I’ve learned by execution. It’s paid off: By the time my friends were out of school, I was already earning six figures and had four different investments making money for me. While those buddies were in college, I hustled; and by age 23, my income was already $140,000. By the time I was 25, my company had passed $1 million in revenue.
So, the message here is that there’s no right path to success, but there is more to learn in business than lessons on strategic differentiation. If you’re waiting to step into a role as a great business leader, with an MBA in hand, you could be taking a detour to success. Instead, focus on some of the leadership lessons you can acquire right now.
Here are four leadership lessons you won’t learn in business school.
1Scale slowly and organically
Jeff Haynie, writing for Recode, nailed it when he described how impossible it is to scale quickly as a start-up: “You need a lot of things,” he wrote, “to make scaling fast work that are inherently a mismatch at a start-up, including well-defined processes and people that work well with and know those processes well.”
In other words, a strict structure isn’t exactly the hallmark of a startup. Nor is a strict structure a priority for most small businesses looking to launch into a cycle of rapid growth.
Instead, start scaling by automating your business processes first; for example, create training videos to onboard new hires quickly. Then, use that time you’ve earned, putting it back into your workweek, to focus on more client-relationship building, and organically add services and new clients.
The time to scale is when you have revenue in place to sustain the growth. Scale too fast without a solid process and revenue model in place, and your business will topple like a house of cards built too quickly.
2Get ready to sacrifice
In theory, anyone familiar with hard work and growing with a company knows that sacrifice is required to realise success. The reality of what those late nights in the office and missed moments with your family really means only starts to sink in long after you’ve gotten your MBA.
Take some comfort in knowing that you’ll at least be in good company as you’re figuring out what you’ll need to sacrifice. Success interviewed accomplished entrepreneurs, including Barbara Corcoran, about their sacrifices. Corcoran described how she took a full-time job and left her company in the hands of a partner while she paid down her looming six-figure debt.
While her bosses loved her, she said, she hated being an employee. Yet, in the end, she recognized that swallowing her pride and making the sacrifice was a good move and helped save her company.
Be prepared to make your own sacrifices to capture the success you’re looking for. That might mean sacrifices, like Corcoran’s, of working for someone else or moving back in with your parents – as 30 percent of today’s millennials are doing. Just remember that these sacrifices are temporary, and can make your success more satisfying in the long run.
3Diversify early and often
Business school might tell you to monetise early, but that doesn’t always mean what you might think. For example, instead of focusing strictly on trying to turn your freemium SaaS project into a premium model, think about your income stream with the big picture in mind.
As a SaaS developer, you could offer consulting on the side, create a coding course for your peers or get paid to speak on the future of the SaaS industry.
The point is, diversify early and often. Recognise that you may need to launch side gigs just to make ends meet to get your business up and running – because unfortunately, securing funding isn’t always a reality for business owners and entrepreneurs. But using your income streams to bootstrap your business is within your control.
As a 23-year-old, I worked hard to diversify and increase my revenue through investments and by bootstrapping my successes. I invested in stocks, a commercial apartment complex and five startups (one of which tripled my investment).
There’s no reason why you can’t do the same. For example, today’s investors can crowdfund their way to a robust commercial real estate investment with a service like RealtyMogul for just a few thousand dollars down.
The income streams you develop now could end up opening the door to a new business in real estate or a position as a silent partner in a start-up that you never considered before.
Turning gratitude into a daily practice isn’t on the radar of enough of today’s business leaders, despite the immeasurable professional and personal benefits. But, according to Psychology Today, gratitude opens the door to more relationships. I’ve discovered that relationship-building is a big factor in success, and so make a habit of helping others, as a way to network and forge more personal connections.
Gratitude also improves your overall psychological mindset. This can be crucial for entrepreneurs and business leaders who all too often suffer from depression and chronic stress in silence. Entrepreneurship and growing a business is not for the faint of heart, and we could all use more gratitude to help us remember why we were optimistic enough to jump into this arena in the first place.
Then, what I personally love about gratitude is how it anchors you to the present to fully embrace and benefit from each experience. It’s like that new business inspiration that popped into your head when you were paying close attention to a speaker at a conference. It helps you gain a foothold on the work-life balance we all need in our lives.
So . . . an MBA? A diploma can be beneficial for someone who needs a solid understanding of business principles and making new connections. But earning one doesn’t necessarily turn you into a great leader.
Instead, you can reach out to mentors in your industry to help guide you through the process, and seek out people who know more than you and have been there before. At the end of the day, true leaders surround themselves with the talent that can help drive them forward. That’s not something you can do in a bubble, because a bubble will only put you on the slow route to success.
This article was originally posted here on Entrepreneur.com.
Do You Have What It Takes To Be A Great Leader?
Because it takes everything you’ve got.
I recently hosted the Next Level Leadership Summit in Connecticut, where the main focus was answering the following question: What does it take to lead?
The attendees were seasoned businessmen who ran multiple 7-figure businesses. They had a chance to hear from entrepreneurs in industries like real estate, finance, tech and health. The stories from each presenter gave proof that it doesn’t matter what business you are in – we all have similar struggles. But the biggest insight was the difference between the chase of success versus the pursuit of greatness.
A leader doesn’t chase success, because he knows the chase is never-ending. He doesn’t care what others think, because he knows judgment kills growth. A leader doesn’t worry about how he’s going to make things happen, because he’s focused on the why that drives him to find a way.
Anyone can achieve success, but it takes a certain type of individual to be crazy enough to pursue greatness. This message hit home for me because five years ago, I got tired of chasing success. I had hit a wall in my life, and everything seemed meaningless. The path I had chosen was no longer fulfilling, and I felt empty.
It made no sense for me to feel that way. After all, I had everything anyone could ever want – a growing real estate business, a beautiful family and money in the bank. I thought I had reached success! So, what was wrong with me?
Was I being ungrateful? No. Was I depressed? I didn’t think so. Sometimes I would ask myself, “What if I ceased to exist?” Would anyone care besides my family? What impact have I made on the world?
It became clear to me that it wasn’t success I was seeking. I wanted to make an impact. I wanted to join the ranks of those whose deepest desire wasn’t the chase of success, but rather the pursuit of greatness. The only way to do it was to become a leader.
Today, we oftentimes confuse financial success and leadership. Just because a man knows how to make money doesn’t mean he’s a good leader. I was making money, but I wasn’t a leader, and all my success didn’t mean I was making an impact.
Too many times as successful businessmen, we can’t figure out how to transfer the skills we use at work into the other areas of our lives. Many of us settle for an average relationship with our significant other when we could have more if we simply applied some of the passion that fuels us at our business. The same goes for our health. We often take it for granted. If the same low-maintenance approach were taken with our work, most of us would be out of business. And, what about making an impact – our higher purpose? Most of us settle for higher revenues and move through life like zombies without a purpose. We eventually burn out.
Greatness comes with a price. You have to be willing to lose it all. At that crucial point in my life, I made a decision to pursue my passion.
I decided to create the Next Level Experience. It was my passion business where I would help businessmen find the edge in their lives, and start living with purpose. I had to start from the beginning, and it was frightening and invigorating all at the same time. For the first time in long while, I felt like I was on the right path. My real estate partners thought I was crazy for putting so much time and resources behind it. They told me if I just put the same amount of effort, I would make 10 times the investment. But I was done chasing success. I wanted to create something that mattered, and I was willing to lose everything to make an impact. It was through that experience I learned I was ready to lead.
Related: What Kind Of Leader Are You?
There’s something about the fear of losing everything that shifts your focus. You turn the switch. I had no other choice but to lead. Five years later I’ve helped thousands of men find their edge and turned my passion business into multiple 7-figures.
So, what does it take to lead? Everything you have. The world doesn’t need more millionaires and billionaires chasing success. The world needs leaders who are willing to do whatever it takes to help others along the way to greatness.
This article was originally posted here on Entrepreneur.com.
Albert Einstein: An Influencer To This Day
Say the word genius and immediately Albert Einstein springs to mind. To this day his influence remains across not only science, humanity and education but popular culture too.
Albert Einstein had the same mentality as an entrepreneur; he was a discoverer, an educator, a revolutionary and incredibly creative. Below are some of the few more reasons why entrepreneurs can learn from him:
1. Even geniuses get it wrong
Einstein wasn’t always right. The best example of Einstein getting it wrong, was when he had trouble accepting that the universe is based on probabilities, not absolutes. In a famous Einstein/Bohr debate, Einstein stated, “God does not play dice with the universe,” with Bohr retorting:
“Einstein, stop telling God what to do!”
2. One should read
When you find the right book, at the right time, it can have an incredible impact on your mindset. I have learned so much from books, and many have helped me as an entrepreneur. Not only does reading give you quiet time and space to look after yourself, but it’s also exciting to keep discovering incredible insights, and being surprised by their impact.
Now I don’t think I will ever dream up a concept that will have world-changing implications like Einstein did, but reading can open new doors for you and your mind, and take you places you never thought possible.
3. Enjoy the challenge
Einstein didn’t pluck remarkable theories out of thin air. He made many mistakes, he persisted and proved his theories worked.
Einstein would ask challenging questions and ask them in different ways. By doing this, he was able to address the unknown from different angles and eventually unveil some of the most perplexing universal secrets.
4. Your weaknesses are your strengths
Experts such have hypothesised that Einstein might have suffered from Asperger’s Syndrome; a condition where sufferers are described as socially aloof, emotionally detached and exhibit inappropriate social behaviour. But on the flip side, those with Asperger’s Syndrome can display an obsessive interest in a single topic or object. So, while Einstein wasn’t the best at socialising, he relished solitude and made incredible use of his mind.
By embracing his playfulness, curiosity and laser-like focus, Einstein decoded the universe. Not so much of a weakness when you think of it like that, hey?
5. Find your tribe
His professors often criticised Einstein’s ideas; professors who were accustomed to conformity. It was only when Einstein worked as a clerk at the patent office that he made significant strides in his thinking within physics, mathematics and philosophy. The point being, make sure you surround yourself with people who get your creative juices flowing and fuel rather than deplete you.
Your Narcissism Is Killing Your Employees’ Productivity. How To Avoid The Pitfalls
The key is to understand how your narcissism is affecting others and actively work to adjust and adapt your behaviour.
Narcissism appears to be on the rise among today’s business and entrepreneurial leaders, if you read the business pages and academic research on a regular basis. And this isn’t always a bad thing: Narcissists can be compelling leaders capable of executing grand strategic visions.
But all too often they are described as highly self-absorbed individuals who believe they are superior to those around them.
And while successful entrepreneurs tend to have high levels of self-confidence and an intense drive for success, often they’ll fall prey to the problems associated with the darker aspects of narcissism: Specifically, they take unnecessary risks, hold too tightly to their vision when change is needed and fail to recognise the work and sacrifices of those around them.
In our new study, which was published in May in Organizational Behavior and Human Decision Processes, my research partners and I sought to gain a better understanding of just how problematic narcissistic leaders are, and what they might do to lessen the negative outcomes. We surveyed 262 employees and their (262) direct supervising managers over a four-week period at a large Chinese technology company.
Overall, we found the harmful consequences of narcissistic leaders to be wide-ranging.
Just how harmful is a harmful narcissistic leader?
We began by asking leaders at the tech company we targeted to complete a widely used Narcissistic Personality Inventory test. Employees, meanwhile, were asked to report on their organisation-based self-esteem, meaning the degree to which they felt they belonged in their organisation.
As researchers we were operating on the understanding that the need to belong is a fundamental human need and motivator, but that narcissistic leaders fail to satisfy this need among their employees because of their high levels of self-concern.
Those high levels mean leaders like these ignore the feelings of others. Former Yahoo CEO Marissa Mayer, for example, was often described as highly self-absorbed and inconsiderate of others. She was often criticised for being habitually late to meetings and dismissive of her constituents’ ideas and suggestions.
Elon Musk, CEO of Tesla Motors and SpaceX, is also said to be highly abrasive, and to tend to berate employees who fail to live up to his impossibly high standards. One former engineer at the company referred to critical interactions with the SpaceX CEO as an “Elon ass-kicking” and said some employees felt “crushed under the weight” of those interactions. Not surprisingly, both Musk and Mayer have been recognised as some of the most narcissistic CEOs in the tech industry.
Our study found that 51 percent of employees with narcissistic leaders disagreed or strongly disagreed with statements asking if they felt valuable in the workplace. Moreover, this diminished sense of belonging had wide-ranging consequences on these employees’ behaviour. Specifically:
- 34 percent of employees surveyed disagreed or strongly disagreed with statements asking if they helped other group members with their responsibilities
- 31 percent of employees disagreed or strongly disagreed with statements asking if they spoke up to their leader about their own improvement-oriented suggestions
- 37 percent of employees agreed or strongly agreed with statements asking if they badmouthed their leader to their coworkers
- 18 percent of employees agreed or strongly agreed with statements asking if they intentionally tried to disrupt task completion by ignoring their leader’s requests.
Such behaviours are troublesome enough for established companies, but for start-ups – whose survival depends on quick action and cooperation from all employees – the consequences can be dire.
How can narcissistic leaders avoid the pitfalls of their personalities?
We asked employees to report whether their leader consulted with them before making decisions. While this kind of consultation is an influence tactic leaders use to gain employee support, it can also signal to employees that their contributions are valued.
We found that among narcissistic leaders, 27 percent frequently consulted with employees while another 43 percent consulted with employees to some extent.
Importantly, we found that when narcissistic leaders consulted with employees, the detrimental outcomes stemming from such leadership were not simply reduced, but eliminated completely. Here are three takeaways:
Active listening means that you concentrate on the message being communicated; you don’t just passively “receive” the message. Unfortunately, most narcissistic leaders have difficulty focusing on what others are saying and often ignore their advice.
One classic example of a narcissistic leader who altered his behavior to more attentively listen to others was Steve Jobs. Much of Jobs’ success upon returning to the helm at Apple in 1997 was attributed to the drastic change in his interpersonal behavior from his prior tenure in 1985.
Not only was he more willing to listen to his employees, but he was described as someone who “seemed to relish other people’s ideas.” Our research indicated that employees are likely to discount their narcissistic leaders’ more abrasive qualities when those leaders take the time to actively listen to their suggestions.
Don’t just listen. Invite employees’ involvement in the making and development of decisions. Our study demonstrated that when narcissistic leaders invite employees to participate in leadership processes, those employees experience a sense of ownership in the process that can help alleviate the leader’s more harmful tendencies.
In particular, such behaviour signals to employees that their narcissistic leader is not only willing to listen when they, the employees, have concerns or suggestions, but actually desire to receive those employee contributions.
According to Jack Welch, former CEO of General Electric, the best leaders “make a religion out of being accessible.” Likewise, our research emphasised the importance of narcissistic leaders making themselves accessible to individual employees.
Despite his narcissism, Welch often sent personal notes to his executives and met one-on-one with employees at all levels. Such behaviours were part of the programs Welch instituted to enhance employees’ “feelings of ownership and self-worth” in the GE culture. We found that the individual attention employees receive when they’re consulted provides the interpersonal interaction they crave, but rarely receive, from their narcissistic leader.
Due to the dynamic environment of the typical entrepreneurial venture, communication and cooperation from employees is a necessity for continued growth and survival. Although entrepreneurial leaders may be more narcissistic than their counterparts in non-entrepreneurial vocations, the pitfalls associated with their tendencies may be avoidable.
The key is for such leaders to understand how their narcissism is affecting others and actively work to adjust and adapt their behavioir.
This article was originally posted here on Entrepreneur.com.
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