You know what I want to talk to you about? I want to talk to you about the most fundamental rule in business that there can ever exist.
Check this out: earlier, I was talking to a guy whose company I’m looking to invest in.
He’s made about fifty, sixty thousand dollars in sales of this new product.
It’s a physical product that he sold on the Internet but it can be sold through Home Shopping Network and QVC, through the Web and even in stores. Electronic stores, Best Buys, Bed Bath and Beyond, places like that.
Of course, we got to talk and he’s really excited to bring me on board as an investor. A mutual friend introduced us and I vetted the company out. I vetted him out. He’s a solid dude.
You know what his number one problem is?
Now that we’re about to put ink on paper and I’m about to put my money in for equity, his number one problem is him.
Here’s what I mean. Rather than working in the three-foot space that he has…
Now, let me explain to you where the three-foot space law comes from.
See, recently I’ve been doing a lot of rock climbing. I’ve gotten pretty decent actually and it’s one of my six-week challenges that turned into a hobby.
I was at Joshua Tree. If you know your way around California, you know Joshua Tree’s a beautiful place, and there’s lots of amazing rocks to climb. I was out there with my guide. His name is Rick and he’s a really cool cat.
One of the best pieces of advice that he ever gave me when I started panicking was this:
“Don’t look way up there where you’re headed and don’t bother looking down. Just work in your three-foot space. All you need to do is figure out how you can go higher in your three-foot space. Don’t look for the next big hold that’s going to be way up there.”
That rule applies for business, I believe, more than rock climbing.
Our friend here whose company I’m going to invest in, we worked out our deal. We sent the agreement to him, for me to take equity and invest money into his company, and he’s been dragging his feet.
Thing number one is, procrastination sets in. Fear sets in. I know what’s running through his mind.
“Am I good enough? Am I going to screw Bedros over accidentally by losing his money, by not following through on my end, by having a product that’s inferior, by not having the product delivered on time? Am I going to miss out on an opportunity to work with Bedros by screwing this thing up?”
Now, the reality is he’s a brand new entrepreneur. He came up with a really good idea. It’s in the process of getting patented and it’s going to do fine. We’re going to guide him through it.
He’s having a lot of these negative self-talks. So instead of signing the agreement, he’s subconsciously distracting himself.
That’s why he comes to me saying things like this:
“Well, you know, I’m a California company right now. Let me talk to my attorney and see if I should become a Delaware company because we can save on taxes and since we’re going to create a new corporation together, I might as well see if I should become a Delaware company instead of a California company and I might even see if we should become a Florida company because the taxes, corporate taxes, they are low as well.”
“Listen,” I told him. “I run an eight-figure business. I have an international franchise, I have software and coaching programs, and I make millions of dollars every year. I’m a California company. If there were true massive benefits to being a Delaware company, wouldn’t I have one?”
The reality is that he’s using these things as distractions to procrastinate.
All of a sudden, he’ll start looking way forward into the future and he’ll say, “Hey, look. I know you know all these other people in different industries and on television, like Home Shopping Network, et cetera. What if, just what if you can get us on these networks, on these channels or whatever?”
I said, “Look. I’m going to try. I know these people. I’m pretty well connected. I’m going to do my best but I can’t promise you that. What I can do is give you a hundred percent of my effort and my team’s resources to help sell more of these things.”
The bottom line here is that when you are in business, you have to stay within your three-foot space. His three-foot space is to sign that agreement and then to take his marching orders from me after depositing my check in the bank account so that we can use it to grow the business.
Instead, he’s looking way too far into the future.
I tell him, “Listen, man, you’ve only sold fifty or sixty thousand dollars’ worth of your product in a test launch.”
Then he ran out of money before coming to me. It’s a good product, but the business still needs work.
How about this:
“We go into business, we make millions, and then we figure out whether we should be a Delaware company or a Florida company or, say, a California company.”
That’s the advice to you here, man. You’ve got to work in your three-foot space, the space that’s right in front of you.
You don’t want to look way too far ahead because guess what’s happening?
Just like driving a car, if I look way too far ahead of me, three hundred, four hundred, five hundred yards ahead of me, guess what happens? I rear-end the car right in front of me because I don’t notice it.
If I start looking back behind me in my rear-view mirror and wondering what’s going on behind me, I can’t be looking backwards and driving forwards. That doesn’t happen. I’ll be crashing into that car in front of me again, won’t I?
I’ve got to work in my three-foot space.
When I’m driving, I probably have to work in my, what is it, maybe seventy-five, a hundred yard foot space, scanning left and right. That’s the only space that matters to me.
That’s the lesson here for you in life, in business, in relationships.
If you want to keep moving forward, you have to operate in the three-foot space. You have to be present right where you are.
You look too far ahead, you’re going to rear-end someone.
If you’re looking in the rear-view mirror thinking about what could have been, what was, the reasons that caused you to end up poor and broke and here instead of abundant and rich, then you’re going to crash again.
Be present, be present, be present in business, in life, in relationships and everything will work out in the long run.
Committed to your success,