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All of us have dreamed of becoming a millionaire, but aside from a lucky lottery win many people have no idea how to achieve such status. What do accomplished business people do differently than the rest of us? Do they have higher IQs? Is it because they’ve received the best education? Did they spend all their money in the pursuit of success?
For six years author and consultant Lewis Schiff pondered just that, leading a study of millionaires who came from middle-class families. He’s compiled his findings in a new book, Business Brilliant: Surprising Lessons from the Greatest Self-Made Business Icons. And what he discovered may surprise you.
Schiff found the wealthy subscribe to a different set of guidelines, effectively becoming “Business Brilliant” while others continue to struggle. He identified the Top 7 traits to explain their success, offering a snapshot of what sets them apart.
Let’s take a look at seven attributes of the ultra wealthy.
1. Passion. It is widely believed if you love what you do, you will reap the financial benefits. However, many millionaires in the study didn’t agree with this concept. Schiff uses the example of Cirque du Soleil founder Guy Laliberte, who realized there was a niche in the market for circus-as-a-theater and then exploited it to his advantage. Though he lost much of his original team, he pushed on, positioned himself well, and today Cirque is one of the most profitable entertainment brands in the world. Sometimes it’s not about doing what you love, it’s about satisfying a demand and ensuring you benefit from it.
2. Opportunities. Make opportunities count, not pennies, advises Schiff. Instead of saving your way to wealth, focus on earning more money. Don’t be afraid to exploit weaknesses in others along the way. Too often we fear rejection and don’t negotiate aggressively, something reflected in our wages. Nine out of 10 hiring managers are willing to pay more, but most candidates accept their first offer with a handshake and a smile.
3. Innovation. You don’t have to create an original product or service to make it big. Consider Bill Gates who bought operating software from a company for $25,000, turned it into MS-DOS, flipped it to IBM and made billions. A Harvard study of the fastest growing firms in the U.S. found only six percent attribute their growth to unique products or services, but a whopping 88 percent credit “exceptional execution of an ordinary idea” as the reason for their success.
4. Risk. Don’t invest your own money – find other people who are willing to invest in your ideas. Warren Buffet learned this lesson early on when he lost $2,000 he invested in a gas station with a friend. He contributed only $100 of his own money to his next venture while raising $70,000 from others. That investment partnership was the start of Berkshire Hathaway, one of the world’s most successful investment companies.
5. Making Deals. It may seem counterintuitive, but to negotiate your way to the top you must convince the other person you don’t need the deal. Basically, the weaker your interest, the stronger your leverage, states Schiff. Use the Wish-Want-Walk system: Set your goal, determine what information you need and go about finding it, and establish when you’ll walk away if things do not come together as planned.
6. Delegation. Did you know about 35 percent of American small business owners are dyslexic? Some speculate their success is a direct result of their ability to ask for assistance. Famous dyslexics include Sir Richard Branson, Kinko’s founder Paul Orfalea and investor Charles Schwab. Self-made millionaires tend to delegate more than others. They also focus on exploiting their strengths rather than obsessing over their weaknesses.
7. Learning. Most of us are terrified of failure, yet it is something embraced by the majority of self-made millionaires. Instead of backing off when things don’t go your way, attack it with tenacity and learn from each failure. The greatest return comes from risky projects, and failure can sometimes produce unexpectedly positive results.
Schiff also points out the wealthy practice the LEAP Methodology effectively and consistently. Learn what you do best, earn some dollars with it, get assistance when needed and persist to overcome.
“Business Brilliance and making your own luck are really the same thing,” wrote Schiff. “They both draw upon the ordinary, mundane practices laid out by LEAP: Learning, Earning, Assistance and Persistence. LEAP, at long last, is just another way to spell LUCK.”