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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 April 9, 2020

        10 Things High Achievers Do to Attain Greatness

        10 Things High Achievers Do to Attain Greatness

        Do you ever secretly wish that you could achieve more with your time? You are not alone. Most people want more from their lives but simply don’t know where to start.

        The good news is that learning to accomplish greatness in your life is totally possible if you learn to study other successful high achievers.

        Find out what sparkling new patterns you want to implement in your own life by studying what real high achievers do in the round up below.

        1. They Know What They Want.

        That seems pretty obvious, but if you don’t have a clear goal, dream or desire in mind, how will you know when you’ve gotten where you wanted to be?

        Successful people have clear goals and a clear vision for how to get there.

        For example, Albert Einstein remained obsessed with the big questions and problems of physics, and he knew exactly what he wanted to do: he wanted to answer the questions and solve the problems that no one else had been able to. And guess what? He did just that.

        High achievers dream specific, plan smart, and confidently strive toward success.

        2. They Focus on Their Goals.

        Once achievers know what they want, they are tenacious and focused on forward progress toward their goals. They don’t run over people or deliberately hurt people to get what they want, but they do stay focused on the end goal in all their interactions and daily tasks.

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        Elon Musk, with a net worth of $21.2 billion, is considered revolutionary.[1] Some might have seen his plans to totally reinvent transportation methods, including fantasy-like transportation methods in outer space, a little silly. But Musk proved them all wrong by staying focused on his goals with hawk-like attention to detail. He spends hours and hours at the office focusing on his goals in order to achieve them.

        Learn How to Stay Focused on Your Goals in a Distracting World.

        3. They Are Passionate.

        It’s very helpful when reaching for a big goal to not just get excited by it, but to truly be passionate about it.

        High achievers often talk about how much fun they are having, or say that they would do what they do even if they weren’t getting paid (and in the beginning, they probably weren’t). That’s the kind of passion and positive outlook you need to achieve your highest goals.

        Bill Gates, creator of Microsoft, began his successful career early in life by simply being excited about things like video games and computers. You can be like Gates too. Identify your passions and pursue them in your career.

        4. They Don’t Procrastinate.

        Some of the things we have to do to meet our goals or achieve our dreams are not very easy, but high achievers are able to focus on what needs to get done and actually do it instead of living in a world of dreams. They have a plan and they can follow it starting right now.

        Even though you may not be into arts, you must have heard of Vincent van Gogh, one of the most influential artists of all time. He is a perfect example of someone who not only dared to dream, but also dared to act.

        Instead of procrastinating or staying in a rut, he made a choice to pursue art and dove in head-first. Although he only worked for about ten years due to a tragically short life, van Gogh produced an estimated 900 paintings and more than 1,000 drawings.[2]

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        If you want to get more out of your life, then stop dreaming and start taking actions today, not tomorrow: How to Stop Procrastinating: 11 Practical Ways for Procrastinators

        5. They Create Their Own Opportunities.

        True achievers know that they don’t have to be stuck in a box – they can create their own story through hard work.

        Brené Brown is a respected social researcher and increasingly popular speaker and author. She has been hosted on Oprah. She has written and published a slew of popular self-help books, and she has one of the most-watched TEDx talks in history.

        Interestingly, Brown didn’t start her story in a glamorous way. In fact, many social sciences professionals scoffed at her unusual methods of research and her passion for the topic of vulnerability and shame. Brown, however, continued forging her own path until she reached her destination: greatness.

        Brown is a striking example of a person who knew what she wanted and paved her way into her own story of success with dedication. High achievers know that nothing good comes without hard work. They are willing to create their own opportunities and don’t expect to be handed cookie-cutter dreams in life.

        6. They Have Positive Attitudes.

        Studies of high-performing students find that the happiest students are those who excel most academically.[3] The same holds true for adults in business and in life.

        If you have a good attitude, enjoy what you’re doing and remember that setbacks are temporary, it’s a lot easier to be successful. Without negativity, there’s nothing to hold you back from achieving whatever it is you want to achieve.

        A positive attitude also helps people to think of what they are doing as important, which is a great way to stay motivated and working toward a goal.

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        Jim Carey, the famous comedian and actor, began looking for gigs as a teenager. At age fifteen, he performed onstage and completely disappointed the crowd with a less-than-successful first performance. Carey ultimately succeeded, though, by maintaining a positive outlook. He is known for visualizing success, staying positive, and continuing to work hard.

        7. They Have a Team They Can Count On.

        High achievers know they can’t do everything themselves. There’s a time very early on when you can go it alone, but even the smallest startups need help. It’s actually easier for a company‒or a dream‒to grow more quickly if there are more people engaged in making it work.

        Your team could even be one or two trusted individuals who have your back when things get hard. Stephen King, an iconic author, submitted one of his first novels, “Carrie”, to more than 30 publishers. He received rejection after rejection and even threw his manuscript in the trash. His wife was his team; she pulled the manuscript out of the trash and asked him to try again. “Carrie” was a hit and became a springboard to a successful writing career spanning more than 50 bestsellers.

        High achievers are able to foster great relationships and build teams that can help them achieve what they want even faster. They tend to have an eye for talent and are good at attracting the right people to their teams.

        If you want to be a better leader, these tips can help: How to Master Your Management Skills and Build a Strong Team

        8. They Take Time for Themselves.

        Amid all this hard work, multitasking and big dreaming, high achievers know they need to take care of themselves too. Getting sick in the middle of a major launch isn’t good for anyone.

        So a lot of stories you read about people who’ve had a lot of success will note that they eat well, exercise regularly, try to get enough sleep and even occasionally take time away from the office to refuel.

        Emma Stone, a highly esteemed actress, is open with the media about her struggle with anxiety and stress.[4] She reportedly practices self-compassion, meditation, and self-kindness to take care of herself.

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        Successful people know that sacrifice is often required for success, but they understand what they need to do to keep their bodies and minds performing well.

        9. They Don’t Bad-Mouth Others.

        High achievers know better than to burn bridges. They practice the advice that you shouldn’t say bad things about others, and they usually listen more than they speak.

        They also tend not to compare themselves to others or get envious. They’re so focused on what they want to do that they don’t stop to look around at what others are doing.

        10. They Never Quit.

        Tyler Perry, an accomplished director, writer, and performer, faced early failures in both his personal life and professional life. Perry pushed through these personal challenges and dealt with failure after failure with his first production. Finally, his production gained momentum, and he is now successful because he never gave up.

        High achievers are tenacious, sticking to their plans and goals as long as they need to in order to get where they want to be. If they didn’t stick with it, they wouldn’t achieve anything.

        Final Thoughts

        Success and achievement are not just for the people mentioned above — they are for you, too!

        Unlock your future by finding your passions and goals, and working hard. Pay attention to what other high achievers around you are doing, and follow suit.

        Before you know it, you will be creating your own famous success story.

        More Tips About Achieving Success

        Featured photo credit: Fabrizio Verrecchia via unsplash.com

        Reference

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