Winning through in­tim­i­da­tion

The theories explained in this section are the basic groundwork of a business philosophy. There are four cornerstone theories, which are all firmly anchored to a foundation theory. The foundation theory is the Theory of Reality. Reality isn't the way you wish things to be, nor the way things appear to be, but the way they actually are. Either you acknowledge reality and use it to your benefit or it will automatically work against you.

Most people pay lip service to reality but fail to acknowledge it in actual practice. They confuse the way they'd like things to be with the way they actually are. It's wish vs. reality. For example, many people do deals on a handshake instead of insisting on a clear written agreement. When the deal unravels, it's always the other person who did them a disservice. Some people do one good deed after another, concentrating on the other person's best interests and believing that somewhere somehow they'll be appropriately rewarded. Many people wish the game of business took place on a school playground. The reality is business has always taken place in a jungle under "survival of the fittest" rules at best or more often no rules whatsoever.

The first cornerstone theory is the Theory of Relativity. Few people take the trouble to consider facts in a relative light. Until this is done, you cannot intelligently settle on the correct course of action. Standing alone, many business terms have no absolute definition. They can only be considered in the perspective of someone's mental framework, and are therefore entirely relative.

Consider some examples of this theory: "Honesty" - everyone tailors their definition of honesty to suit their own actions, so that they are "honest" and people they deal with are "dishonest". This is another of society's subjective terms. In reality, a person can only be "honest" or "dishonest" relative to the facts in any given situation, or relative to their own arbitrary set of standards. "Success" - again this is entirely arbitrary. When someone talks to you about "success", you usually have an entirely different mental picture of what that means.

The theory of intimidation suggests that a person's achievements are inversely proportional to the degree of intimidation they experience. In business transactions, the most intimidated person tends to make the least amount of money. Therefore, positioning oneself as the intimidator is key to making money.

In any business field, there exists a "Discouragement Fraternity" - individuals already active in your chosen field who will tell you how tough it is, how difficult it is to get started, how exceptional one must be to survive, and why you shouldn't enter that field. In reality, these people are simply trying to boost their own egos due to a lack of accomplishment. They are hiding behind their own insecurities.

To overcome the discouragement fraternity, one should employ the "Tortoise and Hare Theory" and the "Court-Holder Theory." The Tortoise and Hare Theory emphasizes that the speed at which you start is irrelevant; what matters is where you are at the end. Life is like a nine-inning baseball game, and winning the war is more important than winning individual battles. The Court-Holder Theory advises against being intimidated by know-it-alls who try to impose their knowledge on insecure individuals. Focus on your own knowledge and actions, disregarding what others claim to know.

The general principles of intimidation can be applied to any situation in the business world. From this philosophical base, specific techniques can be developed to fit your own personality and business objectives. The key lies in realizing the underlying realities, not in specific techniques geared towards one specific career field or another.

Getting paid can be divided into five basic steps: Obtain a product to sell, locate a market for that product, implement a marketing method, be able to close the sale, and get paid for making that sale.

The first rule of business is to avoid working with other salesmen. Many people derive their thrills by talking about deals rather than facing the hard realities of trying to do one of these deals themselves. Never try to avoid the arena - the place where the real action is happening all the time. The shortest distance between two points is a straight line. The odds against closing a deal can be staggering, but when you introduce a third person, you make a triangle and the odds against success can become even more overwhelming. To create an impressive posture in your business field, look for powerful ways to do the opposite of what everyone else is doing. For example, you might create an expensive brochure that makes a subtle statement about who you are and what you can achieve.

Expend your efforts in working hard to find a few makeable deals rather than working hard on an endless number of unmakeable deals and clinging to the hope that somehow one will close. This is the opposite approach followed by many businesses who hope that the law of averages will bring them success sooner or later. Find the key factors that distinguish makeable deals, and focus on those factors alone. In real estate, it is cash flow and net income, with tax loss being the frosting on the cake. If someone dwells on the tax shelter aspect or quality of construction, it generally means the deal is unmakeable. It's far better to identify an unmakeable deal before expending energy, funds and time.