bwagy, the blog of Ben Young

“The temptation to quit will be greatest just before you are about to succeed” ~Chinese Proverb

Risk Homeostasis is a theory that humans have a certain level of acceptable risk and we will seek to keep that in equilibrium.

If we take high risk in one part of our life we will seek to minimise it in another part.

For example, in a Munich Case Study two groups of taxis were monitored for accidents.  One group had ABS brakes installed, the others stayed with the regular breaks.  You would think then that the ABS guys had less accidents right?

Wrong.  What they found was the accident rate was about the same, the group with ABS having gained better braking would take other risks (ie braking late).

Have a read over at WikiPedia.  Watch my video below on RadioWammo discussing it:

httpv://www.youtube.com/watch?v=nqMQ7yAVNSg

It has interesting implications for all change, innovation and risk when you think about it.

Thanks to Malcolm Gladwell for the inspiration in his latest book What the Dog Saw.

I have a bit of a theory around running

The first run is completely all about what you think you can do.  It doesn’t matter how you fit you are – it’s more about how far you go till your brain says hey buddy it’s time to stop.

The second run (and this can be the very next day) you can magically run up to 1/3 even further.

It’s not that you got more fit overnight – it’s that you realise what you can do and are able to push through it.

Each run for the first week or so is just about stretching ‘what you can do’.

Then you hit your actual limit.  You run at that limit for a few runs.  Take a break.  Come back and own it.

Apply this to most things.  Your performance undoubtedly is what you think you can do rather than what you’re actually capable of.

Never, ever underestimate your potential.

Please read about the Crazies, they will surely change your perspective (and grow yourself) very rapidly.

Start a blog – even if you don’t share it (although you are missing out) it’ll improve everything you do. Significantly.

What’s happening in the Long Term? The bigger picture? Are your moves of the chess pieces this month helping improve the playing field for your next move?

Rethink your networking ability.

Have you thought about your sales copy? Have you brought it back to the basics? Copy 101.

Thinking about going out on your own? Or plan to one day.  Read my Going out on your own: Pursuing the passion blog post series (hey it’s been going 8 months now) there are some real gems there.

Do not quash the clever guy.

Finally (and most importantly) turn up.  And keep turning up.

If you want to get from A to B and can’t find a path.

Create one.

#44: Put some good karma out there
Do work for free, help another company that’s growing, if you don’t expect a return and it’s just for fun, much more rewarding, plus it’s free marketing for you.

#45: Leverage your communications
Leverage your story! Blog, podcast, write. Creating media that you write once but that can be read many times is the only way to truly build your business. There is only one you, so leverage your skills.

#46: Testimonials
Don’t be shy to get testimonials, these are a great way to enhance your brand but also when you ask you remind your client how good you actually are.  They also provide reassurance to potential customers and minimise perceived risk.

What makes an idea worth sharing? The fact that you’re asking the question.

I have dozens of Adwords hacks but here’s one that’s hugely valuable for startups that helps you identify very quickly which markets you should be targeting.

• Set up a Google Adwords campaign using keywords that describe your customers pain points
• Break it up into regions, measure which get the highest impressions & click throughs, also note the level of competition (important in a crowded market)
• Run it for a month

You can then narrow it down by region after collecting some data to find the market with the most potential.

I’ve done this numerous times but most recently for a client in an ultra niche market.  Their product is very innovative and only some segments of the market are worth talking to in the early days (the rest require education).  Thus we ran the campaign for a month, found very quickly (for under $200) where the main interest was – a specific country.

We also found out, that there was no competition in the market but also the level of interest which was approximately four times the next highest in the world.

Great – now our client can target an area where there is the absolute most interest.  Thus making growth a bit easier.

If I gave you $40,000 to go buy a new car, you’d probably go away, scan the car yards and come back with a few options.

You can pretty much guarantee a certain level of safety standards, fuel economy and performance.

Unless you’re looking at Luxury Cars the car itself is a commodity.  You buy it for the brand; experience, status…

This is the exact play that firms are using once their product slips into the commodity category.

You see when everything else is the same firms need to focus on the marginal value, the base value is assumed (safety, fuel economy, performance) – but what is the secret sauce? It may seem trivial but it’s the little things which can swing consumer preference.

You need to focus on that marginal value and stretch it, reposition it, make it meaningful to your consumer base.

Clearly the experience is a start, is being your customer a real experience worth sharing?

Photo Credit: Alex4981

How often do you find yourself without a pen and having to then ask to borrow one?

You think you have a pen on you but you really don’t, or you’ve absentmindedly left it at your last meeting.

This used to bug me, however it doesn’t anymore, and hasn’t for the last 5 years.

So what did I do?

Simple I created two rules.

Rule #1: I am only allowed to write with a Blue Bic Pen.

Rule#2: I am only allowed one pen per quarter.  When it runs out of ink, I break it in half, throw it out (so I don’t pick up a pen that doesn’t work).

I picked up a box of blue bic pens (and do so every couple of years now).  In 5 years I’ve lost my pen twice (first time as I was quite sick and second time travelling).

Once you put the constraint that you only have one pen, if you loan a pen you expect it back, also if you pick up another kind of pen you realise immediately (hey this isn’t my pen) so put it down.

Also you actually keep a track of your one pen (ideally keeping on you most of the time).

That’s how I stopped losing Pens.  Slightly irrelevant but a nice little life hack.

If you’re not making mistakes you’re probably not doing something worth your time.

How mobile is your business?

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Can it be run off a mobile phone?

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Should it be able to?

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What’s stopping you?

Why do we indicate when we drive? Some infer the person in front of me indicating means I don’t need to; it’s a short turn no need, or there are lots of cars I’d better indicate.

The interesting thing is indicators aren’t for us.  They’re for others, we know where we’re going.

Except when we perceive a high risk, we will definitely indicate.  This is where I’m going.  Please don’t hit me.

That’s like a lot of things, if we think things are high risk (or stressful) we will panic a bit, make sure people know what we’re doing.  If it’s low risk we’ll let things slide. However it’s when things are carefree that you probably need to indicate.

I did a bit of an article over at the NZHerald about it.  Go have a read.

#41: Sell products with low (or no) variable cost
Aim to build products that you can sell with no extra cost per unit, if you can write some ultra niche ebooks, provide some training materials, videos, the cost of selling an extra copy is nill. It is so refreshing to wake up and find you have supplemented your income with no additional effort.

#42: Implement Investing Ethos
Take a portfolio approach to your clients, have some casual month to month steady income clients, some mid risk clients (risk as in non consistent cashflow) and high risk. My magic number is 7, I can have 7 projects total being worked on, in the works, or wrapping up. Often it is 2 steady income, 2 ‘projects’ or semi risk and 3 in the works. (My rough rule of thumb) Depending on your type of business you may need to have less.

#43: Upskill
Upskill yourself constantly and share your new skills (hint heres where a blog comes in handy).