The following is a guest blog from national speaker, consultant, speaker, and my colleague Rick Chess. Read Rick’s bio at the end of the article:
Do not wait until you have everything in place to start your “transformative transaction” as success only goes to the bold. You can attract many of the necessary component parts as you move toward your goal. Do though learn from the Boy Scouts to “be prepared” by learning what you need to have in hand before you begin your journey. Start this process with a simple list of what you need and how will you get it.
1. TREASURE How much money do you have in the bank and what lines of credit will still be there when you have tapped all sources of income? Cash flow management is the biggest killer of the bold, as they assume that if they risk, money will follow. The opposite is generally true; when you take obvious risk, your friends and associates all take a giant step back so they won’t be crushed by the earthquake you are creating. Accept that no matter how much money you budget, you will end up with less and your expenses will be more. Why? If you already knew the future, you would be God, and you would not need to work hard to succeed. You are not God. Start today approaching potential funding sources to at least understand how they process, and what drives them to be attracted to, an investment opportunity. Then start your own “fake it till you make it” transformation, to be what they will fund, without losing who you really are. It is not an easy path.
2. TALENT Great talent can find a great home, without participating in the risk you are about to take. They will salute your grand adventure, but if they really have great talent and the stomach for risk, they can find capital for their own company. You need to find those with sufficient talent who need to work with the right someone to complete their search for opportunity. Take your time to do this right. Confirm their current talent, as you will not have the time to train them AND build out your great adventure. Also confirm their stability – mind, body, soul – as you will need to trust them to perform with little margin for error (as there is never enough capital; see above).
3. TIME There are practical limits to the number of productive hours in a day. Once you eliminate hours for sleep, exercise, food, family, transportation and current source of income – you have few hours left for anything else. Everything you cut out, to have more time and energy to devote to your dream, there is a short or long term cost. You will be fired from your source of income if you are taking time off to inspect buildings for potential personal purchase. Your spouse will find comfort in the arms of another if you are not attending to his or her needs. Skip food/exercise/sleep, and you become useless to all around you and will be unable to attract the capital or talent you seek. It is a balancing act; how good are you on the high wire?
THE BOTTOM LINE?
Start with the end in mind – where you want to end up – and back up to where you are today. Building a new enterprise, or rapidly growing an existing operation, will require time, talent and treasure. Those who support you now, often because you are “one of them” will not be there when you grow rapidly, as you are no longer one with them. Do not be afraid of change, but embrace that with transaction comes transformation not only of you, but of your relationships. Understand where you will likely end up,
then be brave and move toward your “transformative transaction”.
Rick Chess has over 30 years of experience in the business of F.I.RE – Finance, Insurance and Real Estate. He is the managing partner of Chess Law Firm, PLC. He has acquired over $2 billion of real estate and has raised over $200 million of equity. He helped form a NYSE REIT and still serves on their board of trustees. Rick wealth of experience also includes serving as a national president of the Real Estate Investment Securities Association (REISA) and as a Pennsylvania state legislator. Find out more about how Rick can put his experience to work for you at RickChess.com. Sign up for his weekly newsletter here.