Transform Your Life Forever With the Dreamlife Ratio

Dreamlife Ratio

What’s your dream life?

Take a moment to think about it…

Where are you?

What are you doing?

Who are you with?

How do you feel?

What is your typical day like?

Now consider this basic fact.

The life you live today is the life you’re living. The life you’ll live tomorrow is going to be determined by two things:

  1. Circumstances external to you
  2. Your behaviours

Some people will argue the factors external to them are overpowering and they are strong.The life you live today is the life you’re living. The life you’ll live tomorrow is going to be determined by two things:

But there’s something unique about humans compared with all other living things…

We have the ability to alter our environment.

I’m writing this from Belgrade Serbia where I’ve been working the last couple weeks and preparing to travel to Bali in a week or so.

Here the average person is very poor. Life is very hard for them with wages around $400 per month it’s amazing they can get by at all.

Maybe your situation is the same or worse or slightly better the point is it would be inaccurate and unfair to suggest that someone in these circumstances has the same access and ability as someone born into a wealthy family in a developed country.

Yet, many people do rise above their circumstances even if this means leaving an environment that makes life harder.

The reason I mention this is it comes back to behaviors.

In other words, our environment will have a powerful impact on us but we have the ability to change our environment over time to better support us.

All of this points to a basic truth.

The quality of your life over time will be determined by the quality of your behaviors. The choices you make and the actions you take.

It’s not exclusively the case but it’s all we can do and the rest is up to a higher power.

Since we’ve been given this one chance, this moment here and now doesn’t it make sense to do the most we can with what we’ve got?

We’re going to talk then specifically about what YOU can do today and every day forward to bring yourself a little closer to your dream life.

The Question of Values

Our time is limited.

As a result, life, whether we admit it or not, is always a matter of picking something over something else.

I choose to go out with my friends so I’m not able to study at home.

I choose to spend money on clothes, so I don’t have the same money to travel.

Constructing your dream life then is all about deciding what’s most valuable to you then optimizing your life for those values.

Your values are unique to you, someone else cannot choose them for you and your happiness will largely be determined by the extent you manage to make your reality align with what you believe is most valuable in life.

Everything we’re going to discuss then pertains to choosing what you value over what you don’t value.

This is what choices are all about you’ve got something even if it’s a potential something and you give it up in exchange for something else.

A good choice or a good life involves choosing to trade away as much of what you don’t value as possible to get as much as possible of what you do value.

Make sense?

For example, you might value the bustle of a city with great conveniences over lower costs so for you moving to New York or London or Tokyo might make sense.

Someone else might value tranquility and calm or a laid back easy life with warm weather so for them it makes sense to move to Greece or Bali or Costa Rica.

You can only be in one place at a time, so you need to choose what you value most.

The worst situation is where you feel trapped, you push the choice off, or you choose something you don’t value over something you do. That’s a recipe for misery.

Growing the Size of the Pot

Some of you might be thinking, “but I want both!”

Others might recite the old line, “you can’t have your cake and eat it too”.

The truth is you might not be able to now but you can often increase your overall, this is key to achieving your dream life.

Think about it like this.

Say you want to be able to travel the world and to afford a nice car.

If you’ve only got a small amount of money you might have to choose between them.

Some people live lives of resignation where they accept this as a fact.

Those who live the greatest lives say, “this is my reality today and I can improve it for tomorrow”.

How do you do this?

It turns out there’s only one way…

You grow the size of the put by getting more for less

In a sense the secret to having more is getting more for less.

So, the secret to the dream life then is two-fold:

  1. Getting more
  2. Trading what you don’t value for what you do value

This goes from “having more”, which isn’t necessarily better, to “having more of what you want and less of what you don’t want” = dreamlife!

What is the Dreamlife Ratio?

At Richucation we talk about what we call the “Dreamlife Ratio”.

This is a simple measurement of what you’re giving up (your inputs) for what you’re getting in exchange (your outputs).

It recognizes that we’ve always got many types of inputs:

  1. Time
  2. Money
  3. Timeframe
  4. Relationships
  5. Reputation
  6. Assets
  7. Risk
  8. Opportunity
  9. Peace of mind
  10. Health
  11. Etc.

And on the other side we’ve got similar outputs.

Most people go through life and don’t measure.

Most people do trades that keep them at roughly the same place.

Most people don’t find ways to make their trades worth progressively more, effectively banking their time (we discuss this in The Free Golden Path training for multiplying your income and it applies everywhere).

This is at the core of our Deal ROI training.

In fact it’s at the core of the idea of ROI or Return on Investment in general.

People think of Return on Investment in monetary terms but it applies for time, for energy for relationships, for reputation, etc. as well.

Most people don’t have a full view of their life and all they are giving up or getting in return.

And as a result, most people never live their dream lives.

What’s Next?

If you want to get a little closer to your dream life start by identifying what you really truly value in your heart of hearts.

Not what you give in to pressure from other people on, not what others say you should value but what matters to you.

Figure out what it will take to have it (in our Free Revenue Growth Action Plan we help break through process down).

Then begin measuring what you’ve got and start paying attention to the trades and learn to improve them.

If you need skills to improve this consider our Mastery ROI training.

If you need extra income, consider our Marketing ROI training.

If you need a team, consider our Team ROI training.

If you liked this article check out others we’ve written, reach out to us, we’re available to work with you 1 on 1, in groups or simply to provide you free resources and education to help you get there.

Factors of Disproportionate Influence Can Screw You Or Radically Accelerate Your Success

Disproportionate Influence

When I got started in business the second time I have a distinct memory of sitting in a car thinking to myself I could fail but no one could ever take what I learned away from me.

It was in that moment I decided to dedicate my efforts to what has become an 11+ year fascination with how to create massive financial and business success predictably fast.

In other words why do some people end up as deca-millionaires, centi-millionaires, or even billionaires while others in business do not?

More importantly how can we replicate the big successes?

My first major discovery was you could accelerate success and predictability by identifying and focusing on the essentials.

The second major breakthrough was you could further accelerate this success and predictability by learning and applying the correct sequence.

But nothing was truly as significant as the gradual discovery of factors of disproportionate influence, which probably make success seem extremely unpredictable to anyone who doesn’t understand them, causes us to make a lot of mistakes and also does more than anything else to accelerate success.

It is so significant our work in Richucation has flowed to be dominated by these three things with the highest focus and the biggest lessons we can teach in this area of factors of disproportionate influence.

What Are Factors of Disproportionate Influence?

To understand what these are it helps to understand the landscape of achieving success.

Success is essentially the result of applying the Dreamlife Ratio over time. In other words, minimizing your costs in the pursue of success and maximizing how much each input moves you towards success.

To understand this, it’s perhaps easiest to look at a particular goal or objective let’s say communicating with someone to get them to buy from you.

When working on communicating with that person there are many factors that make a difference starting with for example how you are perceived.

How you’re perceived will have a massive number of factors in itself:

  • How you’re dressed
  • What others say about you
  • How you approached them
  • Your tone of voice
  • Your body language
  • Your race
  • Your height
  • Your age
  • Your attractiveness
  • Your words
  • Etc. etc. etc.

This is true of absolutely anything in the world.

In moving from point A to point B there are many forces exerting themselves on you and the environment.

People who start studying success often catalogue many of these things and start looking for ways to improve them and in the process they often cannibalize success.

Say what?

If they are working on improving success factors how could this cannibalize success?

Herein lies how people can get screwed or can radically accelerate their results.

See, we’ve got a limited amount of results to use as inputs. These resources include our time, attention, focus, intelligence, etc. so we’ve got to make the best use of those resources possible if we want to be successful at a high level quickly.

This is where understanding factors of disproportionate influence comes in.

Not all factors have equal weighting.

What does this mean?

The amount of influence each has isn’t the same.

Think about it like trying to balance a scale and you’ve got a whole bunch of rocks you can place on the one end to do so.

Not all the rocks are the same size or the same weight so which ones you choose makes a big difference.

Where so many people go wrong is they start focusing on small rocks and consume their resources.

If you want to be successful you need to determine, which are the big rocks.

It Goes Beyond Simple Input vs Output Ratios Though

Simple input vs output often gets characterized by the 80/20 principle and the 80/20 principle works well where relevant though doesn’t work when you’re overlooking essentials or sequence.

In a sense you might say the essentials and the sequence can be a big part of a proper 80/20 analysis.

Factors of disproportionate influence are similar to but extend the 80/20 principle.

How come?

Because generally these are factors working for you or against you and their influence is so great as to render many of the other factors either inconsequential or close to it.

This for or against piece is extremely important because often people get the factors of disproportionate influence wrong and then it destroys any chances they have with the other less impactful areas. Whereas, you still get progress in an 80/20 model.

In this sense, the factors of disproportionate influence extend the essentials.

Consider the following metaphor, which shows how most people approach success.

Say you’re driving from one city to another. Arriving there is success.

What factors will influence your results?

There’s a million forces at place such as wind resistance, friction on the road, traffic, temperature, visibility, etc.

However, in most cases only a very small number of factors will be at play in part because of thresholds and in part because of minimal levels of influence.

For example, you’d be a fool to pay attention to wind or temperature because although these will affect your gas mileage they’ll have a comparatively minor influence on the overall outcome.

What is much more likely importance are your direction, quality of the road, and propulsion of the vehicle.

You need to consider the essentials of course such as having enough gas, tires that will work, etc.

You’ll need to consider the sequence of directions where to turn etc.

But those are essentials not huge influencers in the quality of the outcome so long as they are checked.

In other words, the factors of disproportionate influence are mostly quality of the road and force of propulsion of the vehicle.

You can spend a lot of time improving little things like visibility, temperature, etc. but notice how you can only improve those so much and they have diminishing returns.

By contrast you have a massive ability to improve the propulsion of the vehicle (force, speed, durabilitly) with comparatively minor diminishing returns.

These are the factors of disproportionate influence.

The road works against you if it doesn’t work for you and if the propulsion is working against you well…traffic might fit into a similar category.

Keep in mind a factor that’s decisive up to a point isn’t always decisive after that point, usually following a sequence though not always. This is another reason people get thrown off.

Where Does This Leave Us?

When pursuing success in a field, any field whether sports, investing, marketing, relationships, etc. put effort into identifying the factors of disproportionate influence.

What you’ll find is many situations that didn’t make sense previously make a lot of sense when you realize some factors are overwhelming in their influence.

In fact, generally these factors are so decisive they make those other factors almost irrelevant.

For example, a great artist with horrible social skills might thrive because people are willing to tolerate their poor behaviors to work with their genius.

Someone with great connections might get a job without any resume or cover letter or reference checks.

A product everyone loves and wants will sell well even though the people selling it have poor sales skills.

The list goes on.

In the journey to success there is no greater shortcut than factors of disproportionate influence.

Want to PREDICTABLY Become Rich (vs by luck or not at all)?


I set out to become wealthy not because I cared about the money, in fact to this day money isn’t a major concern for me in and of itself.

For me what was important was the lifestyle I wanted to live and the projects I wanted to be able to fund.

Oh sure as a young boy the idea of being rich felt synonymous with being significant, important, and someone with personal power to shape his own destiny and the destiny of the world.

But as I grew older the first constraint to really affect my life was simple. I wanted to be able to travel, I wanted to be able to experience great restaurants and experiences around the world I’d dream of and I couldn’t afford these let alone the time off to do so.

Michael at the Sheikh Zayed Mosque in Adu Dhabi

Michael at the Sheikh Zayed Mosque in Adu Dhabi

Why do I tell you this? Well I imagine you can relate but more importantly because I believe the objective always informs the process. 

In this case because the goal wasn’t to make a lot of money but rather to enjoy the fruits of the money at an early age it meant three things:

  1. I had to do it relatively fast
  2. I had to do it in a way that created freedom of time and location not merely financial abundance
  3. I had to be able to do it predictably (no point in putting in all that energy just to fail)

So the question becomes how do you do this?

At the time I didn’t get it of course but there’s a basic logic I’m going to explain to you and it will make tons of sense to you.

The Simple Logic of Becoming Rich

In your life you do things and things happen to you and these have consequences. These consequences either add to our lives or take away from them.

For example, we might get a disease or be in an accident. Part of this we can influence and part of it is out of our control. What is out of our control we call luck.

So, for example how we drive or whether we practice proper sanitation we can control but what others do around us or what nature does this is mostly beyond us. The best we can do is to adjust what environment we place ourselves in savvy?

Because there are forces beyond our control, an environment having an influence on us we’ll always be somewhat affected by the vestiges of luck.


There’s some probability involved in all of this. For example, if you break the law you might not get caught but over a sufficiently long timeline this will tend to have negative consequences.

On the flip side if you’re good with people playing win-win (not letting them take advantage of you but honoring your commitments and dealing fairly) then over time this will tend to work in your favor as you develop a good reputation.

The important lesson is CONSISTENCY not with anything but with things we can do, which on average will work in our favor.

Consistency is only great if there’s a favorable probability to positive outcomes.

Again, why do I tell you all this?

Because we don’t have certain results on any particular timeframe, things can always happen for or against us but we can get predictable results over time by doing the right things much like how if you keep rolling a pair of dice you’ll eventually get a 12.

Rolling Dice

I’m sure you get it pretty obviously there are two important things for us if we want predictable wealth:

  1. Doing those things with consistency that will get us FAR ahead with HIGH probability
  2. Changing our environment (you might add to this learning to respond effectively to your environment the “if life gives you lemons make lemonade” logic)

This is one reason I’ve become critical of a lot of the businesses and tactics people take. Because even though they might be getting good results now the probability is over time this will break down for them.

Does it mean they shouldn’t take advantage of a short-term opportunity? Not at all, it simply means they should learn to protect their gains and ideally given the choice should pursue something that will work in their favor more with time vs less with time.

To have power over our lives we must accept certain key beliefs:

  1. Different behaviors have different consequences and although there are external factors these behaviors have relatively predictable consequences so we can learn to do better behaviors to get better results (in Richucation we call this developing skills)
  2. Not all aspects of the world have the same input to output ratio and as a result we can find places with better outputs for lower inputs (optimizing this is what we in Richucation call “The Dream Life Ratio”)

Let’s start with the consequences of the first since it’s the root of all personal change.

We Change Our Lives Predictably Through Skills

If you think about any field of sport, of art, of science, etc. we can gain knowledge and we can translate this knowledge into our bodies, so we consistently apply it in real time and this gives us an advantage.

The reason this works is because the universe is governed by various laws of physics, of chemistry, of biology, etc. so it doesn’t matter if you’re the great golfer Tiger Woods or not if you hit the ball at the same angle as him with the same force as him assuming the same environment (wind, etc.) it’s going to go to the same place.

To me this is super empowering and exciting because it means I can figure out the formula and I can get results accordingly. 

The challenging part is figuring out the formula or how to apply it (it’s not just measuring the angle and speed Tiger hits the ball it’s developing the muscles, precision, and muscle memory to consistently hit it in this way and even more knowing in the moment how to it the ball from one place on the course to another). 

With some rare exceptions anyone can do this. Have you ever met someone who knew the right things to say? Were you capable of saying those things? Of course you were! You just needed to learn what those things were. 

Becoming rich, building wealth, etc. is no different. Some people consistently make lots of money and invest well, other people consistently lose lots of money. With the exception of environment, which we can also change gradually you could do the same things if you knew what they were.

In other words it all comes down to developing skills and our mission at Richucation is to help you develop the particular skills no one is teaching in school or life, the ones not devoted to making you a good welder or doctor or musician but instead make you successfully financially.

This brings us to our second belief about inputs and outputs.

The Dream Life Ratio will literally give you your “Dream Life”

What does it mean to be rich?

Rich = abundant in other words to have a lot.

You have a lot through three basic processes:

  1. By getting a lot
  2. By keeping a lot
  3. By having this lots grow into more lots

It works like this in life each day we get plenty some earned such as our wages and some mostly unearned such as good wealth or good family or good health.

Some people get more than others, which is due in part to luck but in large part to what they give in return and to whom they give it in return.

In other words, it’s not luck that a doctor makes more than a plumber, a doctor is doing a more technical job and saving lives, while the plumber is doing a relatively simple job and saving you from bad smell.

So, we can do different things to get more out, HOWEVER, there’s almost always an input as well.

For example, the doctor has to go to school for a lot longer than a plumber (higher input).

You might say there’s a price we pay in life. The ratio between the input and the output determines how “profitable” it is to us. We want to maximize profit by finding places where there are lower inputs and higher outputs.

Almost the entire Richucation training, coaching, community, etc. is dedicated to helping you find ways to improve this ratio.

This is how we get a lot more.

Some of those inputs are necessary for the outputs but then a lot usually are not such as travel, leisure, partying, etc. so this determines how much we keep.

Why is what we keep so important?

Because it protects us from when things go wrong AND it allows us to reinvest it, which creates a compounding effect and in essence gives us more.

Very simply here’s how it works. Say you did something and earned $1000 for this effort. If you spend it you earned $1000. But if you could invest it and it grows to $4000 it just increased your output dramatically by meaning in a sense you just made 4 times as much for the same input.

You multiply your outputs by reinvesting them.

What Skills?

This leads us to the final question. If behaviors are how we influence our financial destiny and skills are the mastery of those particular behaviors so we get better results then what are the skills we need in order to become rich?

It turns out there are 6 essential financial skills that will move the needle for you and in combination give you predictable results:

  1. Getting Deals – if you can pay less for things then you keep more of what you get so you automatically end up further ahead than your peers. There’s 3 basic sets of skills for getting all great deals.
  2. Profitable ​Marketing – in other words getting more people to pay you more for what you’ve got to offer is the biggest predictor of financial success since it plays a massive role in answering the question “how much do you get?” We call this process marketing. There are 7 models of marketing to understand to get the most
  3. Grow Impact – after you’ve achieved a level of profitability you move the deal by scaling up, doing bigger deals, affecting more people, etc. This is where most people, entrepreneurs, and small businesses get stuck…how do you go from thousands to millions?
  4. Leverage Team – you need to be able to offer something to others and you can only do so much yourself so in order to grow big enough you need others. Of course people can be your greatest benefit or your greatest liability so mastering how to find the right people and work with them to get the most out of them is where the real skill lies.
  5. Multiply Ownership – this is where you learn to have what you’ve got grow into A LOT more. It’s one of the key areas involved in buying your freedom.
  6. Value Mastery – in order to do anything and in order to develop not just these skills but the skills you’ll offer to others you need to answer two questions: what is valuable? And how do I learn it as fast as possible and at as high a level as possible? This is a whole skill set in itself.

There’s one more very important point to consider, which we see as the most common mistake people make in pursuing wealth or really success of any kind…SEQUENCE. The right thing at the wrong time is the wrong thing so you need to know what order to do.

​Where Are You In the Wealth Journey and What’s the Highest Impact Objective For You Next?

Wealth Formula Booklet

, , ,

The Importance of the Rules and Dangers of Breaking Them

There’s a harmful statement many entrepreneurs are fond of listening to “rules are made to be broken”.

If that’s the case you’re following the wrong set of rules.

Effective rules are designed to give you the best results.

Consider traffic laws if you started driving on the opposite side of the street what would happen?  It would create chaos and slow everyone down, it might work in a small situation but on average respecting and following the traffic rules helps traffic to flow better for everyone.  The same is true for business and investing.

At Richucation we make a point of teaching the universal rules.

Lots of sources preach rules that are a bit like “don’t put your elbows on the table”, they might be conventionally accepted by they aren’t truly important in the modern age at least not in most situations.

But there are essential rules in business and investing, rules designed to ensure you are consistently growing and making money, you can break them now and again and get away with it but it’s unwise because in the aggregate you’ll end up losing out.

All too often I’ve made this mistake, allowing an employee to do something that breaks the rules to encourage them to take risks, unfortunately they were risking my money not their own, we lost money and I should have intervened.

Getting involved in a business whose foundation wasn’t solid, at first it seemed great, the lie I’d allowed myself to believe, and ultimately it lost money.

Skipping the process of acquiring security on an investment relying on the integrity of the participants and strength of the venture to move forward.

Or failing to put something in writing for mutual agreement, or proceeding without getting an agreement signed and then discovering the terms I expected weren’t honored.

The list goes on, the point is rules such as these, unwritten and even unknown though they might be for most are designed to facilitate success and it’s unwise to violate them.

What are some examples of these rules?

  • Buy/engage with a margin of safety
  • Don’t get involved in something you don’t understand, increase expertise to expand where you operate
  • Test small then scale
  • Get great quality data and use it to make your decisions

As you explore business and investing, wealth building, you’ll learn there are certain foundational essentials and that you shouldn’t avoid these.

Don’t get involved in a non-repeat business.  Get involved in businesses based on growth first, only then consider price, people with high integrity have no problems putting agreements in writing.

The list goes on, suffice to say there are rules, but more importantly you must stick to these rules, at times there will be emotional pressure or perhaps a sense of rebellion to break them but don’t, they are meant to be followed not to restrict you, but to enhance your success.  When you don’t follow them, the tendency is to lose time, opportunity, and money, you might gain a little in some way that’s easy to rationalize, but it’s nothing compared to what could have been gained if you’d just followed them.

Have a question about the fundamental rules of business and wealth building?  Want to run a question, thought or idea by us?  Feel free to contact us by clicking “Ask a Business Question” in the lower right corner of the screen.

, , , , , ,

What is Credit?

Credit is used every day often without us even knowing it.  If you’ve got a tab at the bar they have essentially provided you with credit even though it’s very short term credit.  There’s an illusion that only banks can create credit and some conspiracy theorists who decry the unfairness of this system.  Nothing could be further from the truth.

Credit is incredibly important and in other articles we’ll examine how it works to create cycles within the economy.  The question is what is it?

To be clear, we’re not referring to credit scores here.  What we’re referring to is a means of payment.  You pay with either cash or credit, again not referring to credit cards in this case.  So what is it?

In any transaction there is an exchange a good or service for cash or credit.  Let’s consider what happens in a cash transaction (not referring to physical bills here but where there is no debt created).  In a case such as this I pay you money and you give me a good or service.  Look at our balance sheets.  At the start I’ve got an asset and you’ve got cash.  Then when the transaction goes through we swap.

Before the Transaction


Me You
Cash Goods

After the Transaction

Me You
Goods Cash

Now let’s see what happens if we change this process and instead of paying with cash.

Before the Transaction

Me You
Assets Liabilities Assets Liabilities
None None Goods None

After the Transaction

Me You
Assets Liabilities Assets Liabilities
Goods Debt (payable) Debt (receivable) None


Notice what happened here.  Instead of paying cash debt was created.  What is debt?  Debt is an asset for the person who is going to collect the debt and a liability for the person who has to pay the debt.

In other words, credit is when we create out of thin air an asset on one person’s balance sheet with a corresponding exactly equal liability on the other person’s balance sheet.  When the debt is paid off you’ll go back to the way it was in the cash transaction with just cash on the balance sheet of the person who was paid and no liability on the balance sheet of the person who paid.  What’s important about this?  A lot of people confuse credit for money because it can be used as such but credit, which can be issued to an unlimited extent within the confines of physical resources is not really the same as creating money.  It is treated as money in many cases to exchange goods and services but the difference is there is no net growth in wealth because credit cancels itself out.  What it does is it allows transactions to take place sooner, which can help to increase productivity and activate resources in the economy that would normally just be sitting.

Hopefully that gives you a basic understanding of what credit is and how it works.  There’s a lot more to it of course but we’ll cover those nuances in future posts.

If you’re interested in a deeper understanding of credit or any other business or wealth building issue please contact us and we’d be happy to assist you.

, ,

How Money LIES

A little over a year ago I sat with a friend who extolled the virtues of his company.  He spoke of how profitable it was, all the great success they were having and how easy it was to make that profit.  He was working very little.  I’d previously given him the assessment that the business model was poor and unsustainable/unscalable.  Here we learn a valuable lesson of how money lies.

It was difficult for him, sitting with profits in his pocket to believe me, the money provided a sort of credibility, a sense of proof that it worked.  Six months later, looking over the financial position of the company he discovered something very different and though not all the factors had remained consistent during that period the basic truths behind the company, the same root causes of disaster, were dooming the venture.

The company and his assessment of the company and its prospects failed on two fronts:

  1. There was no repeat business – it was a one-time capital purchase with no related products the consequence being even if they could manage to sell the product profitably during a given period of time their lead cost and consequently customer acquisition cost would inevitably rise and ultimately erode the margins, which is exactly the opposite of what needs to happen in a sustainable business.
  2. Lying about expenses – the only expenses they were accounting for were the cost of goods sold and the advertising, they didn’t factor in cost of product storage, the cost of money to carry what amounted to huge amounts of inventory, didn’t account for the cost of excess inventory, the cost of product defect replacements, the cost of sales staff, accounting, merchant processing, legal, rent, etc. By lying about the expenses not to me but to himself he was creating the illusion of profit where none would exist in a comparable model at scale.

What needed to happen to make the business sustainable was to turn it from an organization that sold a product to a brand with relationships with clients to provide them with many products on a repetitive basis in order to grow those clients into long term profits.  It also required being honest about the expenses to plan scale and efficiency into the model, but it was only later when demands for capital in other areas forced a detailed review of the actual finances during the subsequent months and as sales began to fall as the market reached a saturation point that these factors became apparent and by then there was trouble.

It’s often said that when you have every reason to be proud and arrogant is the most important time to remind yourself to be humble, to ask the question “what am I missing?  What am I not seeing?”  Money in our pocket especially seemingly easy money flowing can mislead us in these cases.  It is very often that easy money shows up in a bit of a short term torrent and causes us to believe we are better than we are, it is why consistency in results over a long period of time are king.  Don’t be deceived by the short term wins someone experiences, keep in mind the fundamentals, diligence will pay off in the long term every time.

If you’ve got questions about the soundness or long term viability of a business model or any other business, investing, or wealth building question contact us by clicking “Ask a Business Question” in the lower right corner of the screen.  We’ll be happy to help.