13 Rules of Business: From Broke to Multi-Millionaire

The Path to Financial Success: 13 Rules of Business

In the world of business and entrepreneurship, success often seems elusive. Many aspiring entrepreneurs struggle to find their footing, while others achieve remarkable success. What sets apart those who thrive from those who merely survive? The answer lies in understanding and applying certain fundamental rules of business.

In this comprehensive guide, we'll explore 13 essential rules that have helped transform broke 22-year-olds into multi-millionaires. These rules, gleaned from years of entrepreneurial experience and wisdom from high-net-worth individuals, provide a roadmap for anyone looking to achieve financial success in business.

Rule 1: Take the Credit Card - Get Paid

The first and perhaps most crucial rule of business is simple: get paid. Many aspiring entrepreneurs get caught up in the planning and preparation stages, forgetting that a business only truly starts when money changes hands.

The Importance of Monetary Exchange

A business transaction occurs when a stranger gives you money for your product or service. This exchange is not just about receiving payment; it's a validation that your offering solves a real problem for your customer.

Methods of Payment

In today's digital age, accepting payment has never been easier. You can:

• Accept cash
• Use digital payment platforms like Stripe or PayPal
• Utilize peer-to-peer payment apps like Venmo

Avoiding the Free Work Trap

While it's tempting to offer free work to get your foot in the door, this approach can be counterproductive. Without charging, you can't determine if:

• The person actually wants what you're offering
• They're the right customer for your business

Remember, your time is valuable. Charging for your services ensures that you're not wasting time on projects or clients that aren't a good fit.

Rule 2: Under Promise and Over Deliver

One common pitfall for new entrepreneurs is overpromising to secure business. This approach often leads to disappointment and damaged relationships when you can't deliver on your promises.

The Solution: Simplicity and Effectiveness

Instead of trying to do everything, focus on:

1. Identifying one clear problem your potential client has
2. Offering a simple but highly effective solution
3. Delivering beyond expectations

The Power of Going Above and Beyond

That extra 10% effort in delivery can set you apart from competitors. It's not about doing more work, but about exceeding expectations in meaningful ways.

A Real-World Example

Consider the story of Dayton, a car detailer who consistently over-delivered:

• He never asked for anything extra
• Always showed up on time
• Consistently left the car in better condition than expected

This level of service impressed his client so much that they felt compelled to give him a gift as a thank you. This is the power of over-delivering - it creates loyal customers and generates positive word-of-mouth.

Rule 3: Simple Scales, Complex Fails

One of the biggest mistakes first-time entrepreneurs make is overcomplicating their business model or product offerings.

The Danger of Complexity

Complexity in business can lead to:

• Increased management challenges
• More potential points of failure
• Higher costs
• Difficulty in scaling

The Elon Musk Approach

Elon Musk's engineering philosophy provides valuable insight:

• Always look to remove unnecessary parts or requirements
• Simplify until the product barely works
• Add back only what's absolutely necessary

Keeping It Simple

To maintain simplicity in your business:

1. Start with one clear customer segment
2. Offer one clear product or service
3. Use one clear marketing strategy
4. Implement one clear sales process
5. Focus on these four elements for one year

This approach, often referred to as "follow one course until successful" (FOCUS), can significantly increase your chances of success.

Rule 4: Give to Get

The concept of "give to get" is a powerful principle in business and life. It's based on the idea that by providing value to others, you ultimately receive value in return.

The 10% Rule

A useful way to think about this is the 10% rule:

• Your income is roughly 10% of the value you create in the world
• If you're making $1 million, you've likely created $10 million in value for others

Abundance vs. Scarcity Mindset

Many people operate from a scarcity mindset, believing that giving something away means they no longer have it. However, an abundance mindset recognizes that resources are unlimited if you're resourceful.

Personal Development and Income

Your personal income is directly tied to your personal development. To make more money, you need to become more valuable to the world. This means:

• Continuously learning and improving your skills
• Finding ways to create more value for others
• Expanding your capacity to serve and solve problems

Rule 5: Be Impeccable with Your Word

Trust is the foundation of all successful business relationships. Being impeccable with your word means following through on your commitments and maintaining integrity in all your interactions.

The Power of Keeping Your Word

Consistently doing what you say you'll do can transform your business and personal life. It builds trust, enhances your reputation, and opens doors to new opportunities.

Avoiding Negativity

Being impeccable with your word also means avoiding negative speech about others. Remember:

• What you say about others reflects on you
• People will wonder if you speak negatively about them when they're not around

Living as if Everything is Public

A good rule of thumb is to live as if everything you say could be published on the front page of your local newspaper. This mindset encourages:

• Thoughtful communication
• Integrity in all interactions
• Positive energy that attracts success

Rule 6: You Win or You Learn

In business, setbacks and failures are inevitable. The key is to view these experiences not as defeats, but as opportunities for growth and learning.

Embracing Setbacks

Even successful entrepreneurs face regular challenges. The difference is in how they perceive and respond to these situations.

Learning from Million-Dollar Mistakes

Consider the example of losing a million dollars on a company acquisition. Instead of viewing it as a catastrophic failure, ask:

• What did this experience teach me?
• How can I improve my due diligence process?
• What systems do I need to put in place to prevent similar issues in the future?

The Seed of Equal or Greater Benefit

Napoleon Hill's quote from "Think and Grow Rich" encapsulates this principle well: "Every adversity, every failure, every heartache carries with it the seed of an equal or greater benefit."

Reframing Challenges

Instead of being frustrated by challenges, try viewing them as:

• Opportunities for growth
• Chances to learn valuable lessons
• Ways to become more resilient and adaptable

Rule 7: You Don't Manage Time, You Manage Energy

Many entrepreneurs fall into the trap of working long hours, believing that more time equals more productivity. However, the key to true productivity is managing your energy, not just your time.

The Pitfalls of Overworking

Working excessive hours can lead to:

• Decreased productivity
• Burnout
• Reduced quality of work
• Neglect of personal life and health

Aligning Your Calendar with Your Energy

To maximize productivity:

1. Identify your peak energy times
2. Schedule your most important and challenging tasks during these periods
3. Use lower energy periods for less demanding tasks or meetings

Example Energy Management Schedule

• Early Morning: Tackle big, creative projects
• Late Morning: Handle strategic planning
• Afternoon: Schedule meetings and collaborative work
• Evening: Wind down with lighter tasks or personal time

Creating Flow States

By aligning your work with your natural energy rhythms, you can achieve more in less time. This approach allows you to enter flow states more easily, where you're fully immersed and highly productive.

Rule 8: Play to Win, Don't Play Not to Lose

The mindset you bring to your business can significantly impact your success. Playing to win involves focusing on growth and opportunity, while playing not to lose often leads to a defensive, risk-averse approach.

Wealth Creation vs. Wealth Preservation

Many entrepreneurs shift from a wealth creation mindset to a wealth preservation mindset as they achieve some success. This shift can stifle further growth and innovation.

Expanding vs. Contracting

Ask yourself:

• Am I working to expand my business or just protect what I have?
• Am I focused on creating more value or minimizing potential losses?

The Tax Mindset Example

Consider the difference between:

• Focusing on minimizing taxes paid
• Focusing on increasing overall income (which may result in higher taxes, but also higher net profit)

Creating Opportunities for Others

Playing to win often involves:

• Setting bigger goals
• Creating a vision that inspires your team
• Focusing on value creation rather than cost-cutting

The Power of Mindset

Remember: Your inner conversation creates your outer world. Cultivate a growth-oriented, opportunity-focused mindset to drive your business forward.

Rule 9: Spend Money to Save Time, Not Time to Save Money

One of the key differences between wealthy and broke individuals is how they value and allocate their time and money.

The False Economy of Saving Money

Many people prioritize saving small amounts of money at the expense of their time. For example:

• Driving long distances to save a few cents on gas
• Spending hours comparison shopping to save a small percentage on a purchase

Valuing Time as a Precious Resource

Wealthy individuals understand that time is their most valuable asset. They often:

• Hire help for tasks that don't require their expertise
• Invest in tools and services that increase their productivity
• Delegate lower-value tasks to focus on high-impact activities

Putting a Dollar Value on Your Time

To make better decisions about how to allocate your time:

1. Estimate the hourly value of your time (e.g., $100, $500, $1000)
2. Evaluate each time commitment against this value
3. Consider whether tasks can be delegated or eliminated

Reinvesting Saved Time

Once you've freed up time by spending money wisely, reinvest it in:

• Activities that directly increase your income
• Personal development and skill-building
• Strategic planning and big-picture thinking
• Rest and rejuvenation to maintain high performance

Rule 10: 80% Done by Somebody Else is 100% Awesome

Many entrepreneurs struggle with delegation, feeling that no one can do the job as well as they can. However, learning to delegate effectively is crucial for scaling your business and freeing up your time for high-value activities.

Overcoming Delegation Challenges

Common objections to delegation include:

• "It takes more time to teach someone than to do it myself"
• "They won't do it as well as I would"
• "I can't find good employees"

The Importance of Systems and Processes

Effective delegation often requires:

• Clear documentation of processes
• Well-defined checklists
• Proper training and onboarding procedures

The 10-80-10 Rule for Creative Work

For tasks that seem too specialized or creative to delegate, consider the 10-80-10 approach:

1. 10% Up Front: Provide initial direction and guidelines
2. 80% Execution: Allow your team to do the bulk of the work
3. 10% Integration: Review and refine the final product

Examples of Tasks to Delegate

• House cleaning
• Lawn maintenance
• Meal preparation
• Administrative tasks
• Research and data gathering

The Compounding Effect of Delegation

By delegating effectively, you free up time to focus on high-value activities that can significantly grow your business. This compounds over time, allowing for exponential growth and success.

Rule 11: Be Incompetent

While it may seem counterintuitive, being "incompetent" in certain areas can actually be a superpower in business. This rule is about recognizing where your true value lies and empowering others to handle the rest.

The Danger of Doing Everything

Many entrepreneurs fall into the trap of trying to do everything themselves. This approach:

• Limits business growth
• Creates bottlenecks
• Prevents the development of a strong team

Building the Machine vs. Operating in the Machine

As a business owner, your job is to:

• Build systems and processes (the machine)
• Hire and develop people to run those systems
• Focus on strategic growth and innovation

The Restaurant Example

If you own a restaurant and the chef quits, your job isn't to jump in the kitchen. Instead:

• Find a new chef
• Address any systemic issues that led to the previous chef leaving
• Improve processes to prevent similar issues in the future

Empowering Your Team

Being "incompetent" means:

• Allowing your team to take ownership of their roles
• Providing guidance and resources rather than micromanaging
• Focusing on results rather than methods

Building a Sellable Business

By creating a business that can run without your constant involvement, you:

• Increase its value
• Create more freedom for yourself
• Build a more resilient and scalable organization

The Power of Not Knowing

Remember: You don't need to have all the answers. Sometimes, not knowing allows for:

• Creative problem-solving from your team
• Emergence of new leaders within your organization
• Innovation and fresh perspectives

Rule 12: Be Patient with Results, Impatient with Action

Success in business often requires a delicate balance between patience and urgency. This rule emphasizes the importance of consistent action while maintaining a long-term perspective on results.

The Danger of Short-Term Thinking

Many entrepreneurs give up too soon because:

• They expect immediate results
• They underestimate the time required for significant growth
• They lose motivation when faced with initial challenges

The Power of Consistency

Success often comes from:

• Showing up every day
• Continuously iterating and improving
• Persisting through challenges and setbacks

Setting Realistic Timelines

When starting a new venture or project:

• Think in terms of 6 months, 1 year, or even 2 years for significant results
• Break long-term goals into daily and weekly action steps
• Focus on progress rather than perfection

Balancing Patience and Urgency

Be patient with:

• Overall business growth
• Market penetration
• Brand recognition

Be impatient with:

• Daily tasks and responsibilities
• Learning and skill development
• Addressing problems and inefficiencies

The Journey vs. Destination Mindset

Remember: "The man who loves walking will walk further than the one who loves the destination." Embrace the process of building your business, not just the end goal.

Rule 13: Protect Your Reputation

In the world of business, your reputation is one of your most valuable assets. It can open doors, create opportunities, and significantly impact your long-term success.

The Two Pillars of Success: Reach and Reputation

Achieving your business goals often depends on:

1. Reach: Your ability to connect with and influence others
2. Reputation: How you're perceived in your industry and by your audience

Building a Strong Brand

Your brand is essentially the association people have with you or your business. A strong brand can:

• Increase pricing power
• Attract better opportunities
• Create customer loyalty

Being Known Well vs. Being Well-Known

Focus on being "known well" rather than just being "well-known." This means:

• Building a positive reputation among the right people
• Consistently delivering value
• Maintaining integrity in all interactions

Key Elements of a Strong Reputation

1. Deliver on Promises: Always follow through on commitments
2. Go All In: Commit fully to your chosen path or industry
3. Establish Clear Values: Know what you stand for and act accordingly
4. Maintain Integrity: Respond well when things go wrong
5. Be Authentic: Focus on being the best version of yourself

The Niche Approach

Instead of trying to appeal to everyone:

• Focus on becoming the go-to expert in a specific niche
• Develop a unique voice and perspective
• Build a loyal following within your chosen area

The Power of Authenticity

Remember: You are the original. By being authentically yourself and consistently delivering value, you'll attract the right opportunities and build a reputation that opens doors.

Conclusion: Implementing the 13 Rules of Business

These 13 rules of business provide a comprehensive framework for entrepreneurial success. From getting paid and managing your energy to protecting your reputation and embracing a growth mindset, each rule offers valuable insights for building a thriving business.

Remember, success in business is not just about knowledge or IQ. It's about consistently applying these principles, learning from your experiences, and continually evolving as an entrepreneur. By internalizing and implementing these rules, you can transform your financial future and build a business that not only generates wealth but also creates value for others.

As you embark on your entrepreneurial journey, keep these rules in mind, but also be open to learning and adapting. The business world is constantly changing, and the most successful entrepreneurs are those who can apply timeless principles while remaining flexible and innovative.

Your path from broke to multi-millionaire starts with taking action. Begin implementing these rules today, and watch as your business and financial life transform. Remember, every successful entrepreneur started somewhere, and with dedication, persistence, and the right mindset, you too can achieve remarkable success in business.

Article created from: https://www.youtube.com/watch?v=34nXkdR755M