The ‘Compound Effect’ is a concept developed by Darren Hardy (The compound Effect – Darren Hardy). It is a very powerful process of behaviour and decision making that can improve and change lives. In the following article we have suggested some of the principles that should be put in practice for small business owners to improve their success rate and achieve their goals.
In simple terms poor decisions and erratic behaviour equals poor performance, whereas good decisions and consistently good behaviour creates success and high achievement.
Albert Einstein described INSANITY as ‘doing the same thing over and over again and expecting a different result’. We all know these people. So how can they change and improve?
This can be clearly demonstrated when you look at some of the poor performing businesses. The business owner is most likely working long hours, but not seeing any improvement in their business and also as a consequence not being fulfilled in their personal life. They are unable to remove themselves from the daily grind and literally just go through the same motions every day without any chance of improving their business prospects.
So what are some of the key things that a business owner can do to improve their business potential.
1. Understand and define your core values. Many business owners do not have a clear vision about who and what they are.
Do some self-analysis.
- Who is the person you most respect
- What are their 3 best qualities, do you reflect those qualities in your behaviour
- What are the 3 most important values that you would pass onto your children
- What 3 people in the world do I dislike and why
When you have determined these core values ensure your attitude and behaviour demonstrates this.
- Does your business reflect your core values?
- Does your team act and behave accordingly?
- How do you engage and behave with your clients and prospects?
2. Behaviour and Habits
Behave in a professional and considered manner. Be consistent with your behaviours and habits so that people can see who you are and know what to expect from you.
You may and probably will need to assess and change some of your bad habits, this may not come easily so be prepared to use your will power and family or friends support to do this.
- Wake early each day
- Prepare for the day
- Listen to your colleagues and respect their views (that does not mean always agree)
- Behave consistently whether things are good or bad.
- Act and behave professionally
Be inspirational and consistent with your actions and you will find that people will be more comfortable around you and be inspired to improve their own behaviour and work ethic. Create an environment that is positive and productive, encourage good habits and discipline within your workforce and reward them appropriately.
3. The Ripple Effect
Study the table below and see how small actions and habits can produce massively different results.
|Watch late night trashy TV||Early to bed|
|Get up late and tired in the morning||Up early and refreshed|
|Ill prepared for the day||Time to plan the day properly|
|Lack of energy and motivation||Energised and motivated|
|Late for work – continually catching up||Early to work – in control and productive|
|Stress and anxiety||Happiness and reassurance|
|Failure||Success and extra income|
This happens when you know you have started to make a difference. You have been through the arduous start up and pain of changing your habits and behaviours, it now becomes instinctive and almost subliminal. Your mind and body will work to expect or even demand the good habits that you have developed.
Get with the rhythm – that is how the momentum works. Like a top athlete gets into the rhythm when they compete, going through the same preparations every day and executing their skills to the best of their ability.
5. Patience and Discipline
This whole process is about taking small considered steps consistently over a long period of time. The small steps will not deliver immediate results, it’s all about belief, consistency and discipline. Gradually you will see the fruits of your labour taking effect and then the momentum kicks in and it becomes an enjoyable and natural process.
Think about a kiddie’s roundabout with 10 children on board. It is a real effort to get the roundabout to start moving, but soon it starts to move more easily until the momentum kicks in and means that you only need a minimum of effort to keep it spinning.
6. Invest in You
In order to succeed with this, as with most things in life, you need:
- The will
- The desire
- The motivation
- The vision