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11 Mistakes Billionaires Learned the Hard Way

11 Mistakes Billionaires Learned the Hard Way

It’s been said it’s easier to learn from your mistakes, but you don’t always have to, particularly in business. Working your way to the top can be extremely difficult and mistakes in the business world can be costly. It is important for the entrepreneur to learn not only from their successes, but also from their failures. Although there’s much to gain when it comes to experience, you can save a lot of time and money by learning through the mistakes of others.

Even today’s top grossers have had their dull moments. Here are 11 mistakes billionaires learned to avoid the hard way:

The 1 Percent
    1. Failure to research.

    When making an acquisition or starting a new business, research is essential. Is there competition? Is there a big enough market? Is your acquisition worthwhile? In 1999, the world’s richest man, Carlos Slim, did not do his research and acquired CompUSA for $800 million, only to see the company’s value plummet because desktop computers were quickly being replaced by laptop computers and other emerging technology.

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    2. Fixation on the wrong investments.

    Few things are worse than a missed opportunity. Focusing on the wrong investments can bring disastrous results. Take Bill Gate’s mistake of ignoring search engines, for example. Focusing on the loss of profit that came from piracy lead Microsoft to completely ignore the development of the search engine. This neglect left plenty of space for other companies, such as Google and Yahoo, to fill the gap. By the time Gates realized he had made a mistake, it was too late. Presently Bing has picked up some of the search engine market, but in 2011 it cost Microsoft $2.5 million more than it earned.

    3. Lack of communication.

    When offering goods or services, communication from the top directors to the employee team and from the employees to the customers is vital. You cannot expect the members of your team to immediately know what you are thinking and this is a mistake billionaire Larry Ellison experienced first hand. After acquiring Island Air, Paul Casey was quickly appointed as CEO. The lack of communication that ensued regarding the changes resulted in various flight delays (one of which was seven hours long) and many disgruntled customers.

    4. Cutting vital costs.

    Maximizing profits and cutting unnecessary costs is a natural part of business. However, it’s easy to get lost in the profit frenzy and so one should be careful such costs do not damage quality or the brand. Take for example the case of billion-dollar company Hewlett Packard. Once known for innovation, everything started to go wrong once innovation was replaced by cost cutting. Current owner and CEO Meg Whitman has seen stock price plummet 39% from one year ago.

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    Billionaire Status

      5. Letting good opportunities go.

      If you think you have a good idea or your research has proven your idea to be a sound choice, go for it. Do not let a good opportunity go by, because just like you are capable of coming up with great ideas, so are other people. Larry Page of Google learned this the hard way. In 2003, after he noticed the success of Friendster, he offered to purchase the then social media giant instead of focusing on developing his own. The offer was turned down and the result was disastrous, as Facebook swooped in to take the social media market by storm. Google+ was eventually released in 2011, and to this day has yet to match the social capital and earnings of Zuckerberg’s giant.

      6. Refusing to explore other options.

      Not all acquisitions are in great shape, and sometimes the industry you want to focus on may be shrinking. These things can difficult to accept but it is important to know when to explore other ventures. Billionaire Warren Buffet admits to having made this mistake when purchasing Berkshire Hathaway on emotional impulse in 1964. A New England textile company at the time, he kept the original business running at a loss for 20 years, before finally giving up and focusing on the company’s other, more profitable ventures.

      7. Cultivating a negative image.

      When you are a billionaire and have a brand to protect, you must behave like it. Anything negative that is said about you will reflect badly in your company and this is a mistake Alice Walton, heiress of the Walmart empire, has committed. Walmart is already involved in numerous controversies regarding the giant’s effect on small businesses and wages paid to workers. Walton’s own Texas escapades, which included a DWI, are negative publicity and include a mug shot no PR executive can wipe from Walmart’s already negative record.

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      8. Allowing credibility to plummet.

      A lot of business ventures depend on credit lines. It is important to remember that this is not only about paying your bills, but also about paying them on time. Used-to-be billionaire Eike Batista saw his oil and mineral empire plummet from more than $30 billion to a mere $200 million once key stakeholders lost trust in him after he failed to deliver the results he’d promised. Once Batista lost credibility in one area, he quickly lost it in all of them, and was forced to watch his empire shrink.

      9. Hiring the wrong people.

      Hiring is an important part of every business. Human capital is what makes a company prosper, but when hiring, keep in mind the ideals of each new hire and whether or not they fit with the company. A bad hire in an important position could be disastrous. Billionaire philanthropist Manoj Bhargava admits the worst business mistake he’s ever made is hiring the wrong people—those who enter his charity wholesale business hoping to help themselves instead of helping others.

      10. Being afraid of postponing.

      It is important to jump in to big opportunities; however, it is also important to do self-assessment to know whether or not you and your team are prepared for the next move. Billionaire Oprah Winfrey cites her TV network, OWN, as one of her biggest mistakes. Her blunder? Launching when she wasn’t ready to launch and doing so only because she said she would.

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      11. Taxes? What taxes?

      It hasn’t been proven whether or not billionaires avoid taxes more than the average citizen. However, a tax scandal is one of the most difficult things to recuperate from. The Beanie Baby creator, billionaire Ty Warner, barely escaped jail for allegedly owing $25 million in taxes, a report that will undoubtedly damage both his brand and reputation.

      Billionaire Make It Rain

        These are 11 mistakes that forced billionaires to clean up their act. As an aspiring billionaire, you should be able to learn from the mistakes of others and take these eleven points to heart as you continue your journey.

        Have you hit a stumbling block before that taught you a valuable lesson? If so, I would love to hear about them in the comments below.

        Featured photo credit: Flickr via flickr.com

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        Last Updated on December 13, 2018

        There Is More to Life Than  ____________

        There Is More to Life Than  ____________

        I decided to leave the title of this article open ended, because I’d like you to fill in what words best fit that blank. We’re all unique individuals from different walks of life, and in different stages of life; so, that sentence will have a different meaning for each of us.

        If you’re a busy working professional, why are you working in the job that you have now?

        Is it because it’s something you’re passionate about and brings you a lot of satisfaction? Or, is it because you studied that in college and just found a job that hired you for those skills? Perhaps it’s because of the money that you’re earning, or know you can earn down the line?

        What if you’re about to retire? You’ve got, say, 2 to 3 more years before you hit your ‘deadline’ for retiring. Have you done all that you’ve wanted to do in the past 30-40 years? Any unfulfilled goals or dreams? Are you happy with the outcome of your life to date, all the decisions and/or risks that you’ve made thus far?

        I’m sure many of us started working after college in hopes of earning a good living–to be financially stable and able to afford the ability to experience and do things that we love. We start establishing a career, and with time, tick off boxes on our bucket or ambition list. As you look back on the last couple of years, just how much of your time has been spent doing things that you enjoy and love–the things that give you a great sense of fulfillment and meaning?

        Have you become a slave to the economy, a slave to your work, or a slave to your kids? Or have you found a balance between work and pleasure?

        When is Enough Ever Enough?

        Sadly, many of us live to work.

        Realists would argue that if you truly want to work to live, you still need the finances to back that up. No money no talk. That is how the world runs today. So if you don’t earn or make enough dough, it’s hard to truly enjoy life; it’s hard to be happy without money.

        So, in this quest to provide just that, many of us end up spending our whole lives pursuing wealth and a life of status and material wants. But, is it ever enough? Is there such a thing as having too much money? And, at what expense?

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        Many wealthy entrepreneurs, millionaires and even billionaires have come to agree that money doesn’t bring you all the happiness in the world. It’s good to have, but it doesn’t truly satisfy all desires. There comes a point where you would have ‘had it all’ and still feel a sense of emptiness: an empty void that needs to be filled, not with money or material possessions.

        So the question is then, what more is there to life if not for financial stability, status or material possessions?

        How do we make work a part of life instead of having it consume our life entirely? Perhaps we need to go back to look at the word life itself.

        What is Your Purpose in Life?

        What is the nature of life? What does life mean to you? Is there a purpose?

        If we seek jobs, all we will find are jobs. But if we have a sense of purpose in how we are productive; if we seek a calling, then we will find more than a job. We will find our contribution to humanity and we will find more to life. Would you agree?

        Research has shown that having purpose and meaning in life increases overall well-being and life satisfaction, improves mental and physical health, enhances resiliency, enhances self-esteem, and decreases the chances of depression. So it should be noted that to be happy in life isn’t always enough, because happiness is a surge of emotions that does not last. Instead, it’s more important to find and have meaning in life.

        Meaning is not only about transcending the self, but also about transcending the present moment. While happiness is an emotion felt in the here and now, it ultimately fades away, just as all emotions do; positive affect and feelings of pleasure are fleeting. The amount of time people report feeling good or bad correlates with happiness, but not at all with meaning.

        Have You Been Going on a Wild Goose Chase?

        Ironically, the single-minded pursuit of happiness is leaving people less happy. “It is the very pursuit of happiness, that thwarts happiness”, according to Viktor Frankl, a famous Austrian Neurologist and Holocaust survivor. Going back to the common example of pursuing riches in order to be happy is exactly what makes many so unhappy.

        So again, look at the statement “There is more to life than ______.”

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        Have you answered it meaningfully? If you’ve read on this far, and are now wondering how to take that first step to figuring out what your true purpose is in life, fret not; I’m here to help you reframe your mind and actions, so that you can embark on a journey of finding true meaning to your life.

        Everything that you can do and accomplish in life are bounded by 7 Cornerstone Skills. These are the true essentials needed to achieve excellence. They’ll put you on a path that gives great meaning and satisfaction in life. And, the best thing of all? They already exist in each of us. We just don’t always make the most of it, or sometimes we aren’t even aware of the power that each of these skills have to help us in life.

        On it’s own, each skill is unique and can help you through different stages of life, or problems. But as a whole set, these 7 Cornerstone Skills will give you full transformation over any situation. No matter what phase of life you’re in, what you’re striving to achieve, or what feel you’re lacking, your pursuit of meaning in life will be much faster when you’re able to make use of not one, not two, but all 7 Cornerstone Skills.

        The 7 Cornerstone Skills

        So let me give you a glimpse into what these 7 Cornerstone skills are.

        Creativity

        Creativity empowers you to find unique solutions to problems, and see things in ways that you least expect.

        It goes beyond the artistic impressions and aesthetics, and is a crucial building block of change.

        Learning

        Without Learning, you will not be able to advance and progress in life. Yet, there are many of us who always fall behind not because they don’t have the intellectual ability, but because they don’t know how to learn effectively.

        Memory

        And then we have Memory, one of the most vital components, because without that you have nothing to fall back on, nothing to gain from all the learning or experiences that you’re exposed to on this earth.

        And with an ever increasing amount of information available, how can you store up as much knowledge as you can without overloading?

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        Focus

        And with any and everything that you do, a certain amount of Focus is always given.

        Whether it’s the career ladder that you’ve been climbing, or the responsibility of being a parent, Focus is a flow that allows you to push towards the progress that you’re striving for.

        Without focus, we find ourselves lost, demotivated and stuck in a rut.

        Motivation

        Many of us aren’t happy in life or with our jobs and responsibilities because we lack Motivation, and an overarching purpose as I already mentioned earlier. Motivation helps drive you forward, and gives you the focus achieve your purpose.

        Habits

        If you realize, every new day that comes is filled with routines. Whether it’s getting ready for work in the morning, putting your kids to bed in the evening, or setting aside time during the weekends for family time and activities, it all happens as a result of habits that you’ve built over time.

        Therefore Habits dictate a big part of your life. Pursuing happiness, money or meaning all have a dependency on your habits. If you find yourself being controlled by bad or negative habits, it’s more likely to hinder you from being productive and reaching those goals.

        Time

        This also ends up leading to bad use of Time, or poor time management.

        You might feel like you haven’t built a stable career yet because you lack proper time management. You find yourself spending a lot of time being busy, yet producing little outcomes.

        Or certain habits might be consuming time that you can be using for other more productive tasks.

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        Perhaps you’re on your way to retirement, and feel like it’s too late to find new meaning to your life. There’s not much time left to embark on a new journey again.

        Are You Ready to Live Your Best Life?

        The simple fact is, that if you can sharpen these 7 Cornerstone skills, you will realize that finding meaning in life, or reaching the goals and ambitions that you’ve set out for yourself, no matter what stage of life you’re in, is very attainable.

        There is no magical method to having life figured out. The skills have always been there since day 1, you just need to know how to use it to the best of your advantage.

        And I’m here to show you just how you can do that. Lifehack is all about equipping you with the best and most effective ways to increase your productivity, motivation and focus to achieve true Purpose in life, in as little time as possible.

        Embark on a transformational journey with us as we show you how to learn and improve your 7 Cornerstone Skills so that you’ll come out a new person, ready to either pursue your existing goals at a much quicker rate, or to find new goals to pursue without being limited by time, age or responsibilities.

        If you’ve been wanting a change, or been stuck in a rut for a while now, here is your chance to get started on pushing towards progress again.

        Anyone can transform, anyone can change. Are you ready to live your best life? Click here to start your journey!

         

        Featured photo credit: Caroline Hernandez via unsplash.com

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