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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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        Joel Goldstein

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        Last Updated on July 3, 2020

        6 Things To Do Every Day To Ensure You Stick To Your Goals

        6 Things To Do Every Day To Ensure You Stick To Your Goals

        Sticking to your goals can sometimes be challenging. We all want better health, better careers, and better jobs, and we want to cast an impression on everyone that we are living fulfilled lives.

        Yet to reach our goals and make every minute of our time count requires commitment, consistency, and hard work. Setting goals is one thing, but sticking to them is another. We have to observe certain daily practices if we want to get the best out of ourselves.

        Here are 6 things that you have to ensure daily to reach your goals.

        1. Involve Others

        You have to be accountable for the actions you are committing yourself to. Involve everyone around you, get them engaged, and talk to them on how they can help you accomplish your goals.

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        When you involve others you feel, you have a responsibility towards them as well as yourself. Every day, make sure you are accountable for sticking to your goals. By joining groups or engaging others, you have more motivation to reach your goals.

        For example, if you want to read more, try joining a book club. If you want to be a better entrepreneur, join an entrepreneurial organization.

        2. Visualize the Rewards

        Reaching a goal can be challenging and sometimes, it can be overwhelming. When the journey becomes tough and difficult, try to stick to visualizing your successes every day.

        Wake up to visualize what rewards you will get from sticking to meeting your goals. If you want to lose some pounds, visualize yourself already underweight and benefiting from being underweight. The mind has a way of channeling your body and intentions to sticking to your goals and reaching them.

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        3. Break Down Your Goals

        Try to break down your goals into tiny chunks. The smaller the size of the goals, the more willing and prepared you are to meet them.

        For example, if you find it difficult to get out of the house and take a workout at the gym, why not try to break the goal into making sure you are always dressed for the gym daily? By doing this, you demonstrate that you are moving in the right direction, and you can keep this momentum so you can meet the larger goal.

        4. Reward Yourself

        For every progress you make daily towards reaching your goals, try to vindicate and reward yourself. By doing this you appreciate yourself and the hard work you have put in for the day.

        When you reward yourself, you program yourself to benefit from a larger reward in the future. You also propel yourself to gain daily rewards, which can be enticing and motivating. Rewarding yourself serves as a form of positive reinforcement that reinforces your mind and behavior to stick to your goals and stay motivated.

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        5. Measure Your Progress

        It is easy to become frustrated when you are not getting instant results. Change can be slow and rewards are not always immediate. Still, progress can be measured even in tiny bits, so take time to look back at where you are coming from.

        You don’t have to feel depressed about not making that major progress in an instant. But when you journal or snap pictures to document your progress, no matter how small, you will feel grateful and elated to see what difference you have made from where you are coming from up until now.

        6. Believe in the Possibilities

        If you don’t even believe in the possibility of reaching your goals, how can you expect yourself to stick to your goals in the first place?

        By believing in the possibilities of accomplishing a goal or task, you increase your chance of reaching it and eradicating whatever roadblocks or challenges you may face. Believe in what you can achieve.

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        What self-belief has over self-control is that while self-control can be depleted but self-belief cannot. We all have an enormous reservoir of how much we can believe in ourselves.

        With believing in ourselves comes perseverance, determination, and desire to reaching our goals. Every day, understand that what you need to keep going is your belief toward achieving your goals. Your goals are reachable if you think you can reach them!

        Final Words

        Due to circumstances in life, people tend to abandon some of their goals in life. You may also feel this way sometimes. In that case, just come back to this article and remember the 6 ways you can help yourself stick to your goals.

        People don’t always reach their goals, but you will never know if you can reach them if you don’t stick to them in the first place. As long as you stick to your goals, there will always be the possibility of you achieving them!

        More Tips on How to Stick to Your Goals

        Featured photo credit: Kelly Sikkema via unsplash.com

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