EntreLeadership – Dave Ramsey

EntreLeadershipDave Ramsey is a financial self-help guru who has a radio show and multiple books. He has been doing this for years and his book is packed with lessons about running and growing a business and is a good reference book. A friend of mine lent this to me and I may buy a copy to keep, but I have pulled some of the most important lessons from the book:

Making Decisions (p.78)
Dave talks about how making decisions relieves you and allows you to move on. He also provides a checklist for making good decisions. Some of the bigger points are below:
1) Make decisions in spite of fear
2) Deciding to wait is a decision
3) Take time equal to the size of the decision
4) Make decisions based on your values

Steps for a Sale (p.166)
There are four steps to selling and buying
1) Qualification – The buyer must have the time, money, want, and power to buy your product. If not, you’re wasting your time
2) Rapport – Build trust, by finding a common grand and knowing about them. Be sure to sell to their style. If they are an engineer, give them the numbers and specs of your product.
3) Education/Information – Know your product, be passionate about it, and know what your competition is. People buy the benefits of the product, not the product itself. Ex) People buy a Rolex not to tell the time, but to make a statement. “No one wants to buy insurance, we buy what insurance does, so sell what it does.”
4) Close – Use the feel, felt, found system. “I understand how you feel, and others felt the same way. What they found was that the product helped them.” You can use the different types of closes such as: Assumptive close, Alternative (This-or-that) close, Calendar Close (2 days left), or the Try and Buy Close. And be sure to not say too much and lose the sale.

Be Generous (p.209)
Dave quotes a story from The Little Red Book of Wisdom about John D Rockefeller. At his first job John made $1.50 a week. His mother required that he give 10% to the church. He said “… if I had not tithed the first dollar I made, I would not have tithed the first million dollars I made.”

Know your KRAs (p.224)
KRAs are Key Results Areas. You need to clearly communicate those things to your team. They will be 3 or 4 things with proper passion, creativity, and attitude. Dave mentions that clearly communicated KRAs are missing from most companies.

Hand your Negatives up and you Positives Down (p.234)
Giving negative us the chain of command show you care and stop gossip before it starts. As Eleanor Roosevelt said, “Small minds talk about people, mediocre minds talk about events, and great minds talk about ideas.”

Recognition (p.241)
Recognize the character traits that you want in your company. Dave once recognized a guy for being radical in a reaction to a situation. After recognizing that behavior, Dave saw it quickly being repeated in the company. “Remember whatever you give recognition for will grow quickly inside your company”

Commission (p.281)
Part of what makes Dave’s employees “entrepreneurs”, is their ability to make their own money and lots of it. He uses an intricate system, mixing salary and commission for different jobs and different departments. He lists them as: Straight Commission, Salary Plus Commission, Draw Plus Commission (Draw means an employee gets a certain amount each payday if they don’t meet the sales goal. This deficit, however, will need to be made up by better sales in the future. They receive normal commission when they go above the sales goal.),

Smaller Lessons
– A billionaire friend of Dave’s said the most important lesson on his life is to always remember, slow and steady wins the race (p.87)
– Always go too far in extending grace in the case of other’s personal problems. You will never have regrets that way (p.150)
– “Business is not that hard. You are, however, required to do the basics or you will not win.” (p.211)
– Many leaders will say this same quote that Dave includes from Ronald Reagan: “Surround yourself with the best people you can find, delegate authority, and don’t interfere.” (p.305)
– Interesting books mentioned: Good to Great, Little Red Book of Wisdom (p.208),  In Search of Excellence (p.224)

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