In this transcript, Tim Redmond (Business Consultant, CPA, and Growth Coach) and Clay Clark (COO and Founder of Thrive15.com) spell out 19 practical steps to becoming wealthy on Thrive15.com, one of the nation's top business schools.
Clay: You know so much, that again, the fire hose of knowledge is just bombarding me, so I'm going to break it into 2 separate questions that just have come up here. One is you said that if you want to grow a business, you want to focus on the quality and the quantity ...
Tim Redmond: Of transactions.
Clay: ... of the transactions, and the second is you talk about the experience. So, let's talk about quality and quantity. You're saying that we want to focus on not just, oh do you want quality or quantity. You're saying both.
Tim Redmond: Yeah, so when people buy from you, in order to get them into a habit where they don't think about buying from anybody else but you, you've got to create a consistency in those transactions.
There's an integrity in those transactions that you're going to do whatever it takes, or hey, we're the lowest price. You're not going to get ... There's no frills with that, but you're going to always get the lowest price.
Whatever angle you're going from, you're going to be consistent with that, and so they're going to rely on that. They're going to get to a point where they don't even think about buying from you. They automatically, it's buy [wrote 00:01:11], they just start buying from you.
Clay: When you say experience, you're referring to like a Whole Foods, or a Trader Joe's, or these Hibachi Grills, or places where you get ... Like a Starbucks, where you don't just get the product, but you get a little bit of an experience with that?
Tim Redmond: I was coaching a CPA, a partner of a very unique boutique CPA firm here in town, and they give their clients an experience with taxes. You can create an experience, which is your heart engaging with their heart in a way that they feel good about themselves when they're with you.
Clay: I will say when you build an experience, people have a little more forgiveness, in terms of loyalty with the product, too. So, if go to Starbucks, I love Starbucks, and because they engage with you, if the coffee wasn't perfect one time, I tend to go back, because I know the people, I've had an experience, I've engaged with them. It's really amazing all the things that can come out of having an experience based business.
Now, back to this topic at hand, here's a stat I want to share with the [thrivers 00:02:12] out there. This research was conducted by W. Randall Jones for his best selling book, The Richest Man in Town, and he says, fully, 96% of the richest men in town that he interviewed, sited reputation as their most important and bankable asset.
How is reputation a bankable asset? How does that affect going to the bank?
Tim Redmond: Well, if you sell a product for money, you take that money and you go to the bank with it. Now, if you have a product, and nobody comes by to buy that, then you don't have a transaction, you don't have money because you didn't ... Nobody bought your product, so you can't go to the bank with nothing. That's what makes it bankable.
So, the more ... I say that tongue in check, what you want to do is you want to convince people that they can rely on the experience they're going to have with you when they buy your product, and they rely on your reputation. This is I'm going to believe that this is good, and so I'm going to give more of my money to you because I want to experience that even more. So, it literally produces cash, you go to the bank with it.
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Clay: Now, Warren Buffett says this. Warren Buffett, he says, and he comes across just a little bit harsh on this one, but he says, "Lose money for the firm and I'll be understanding. Lose a shred of reputation and I'll be ruthless."
Tim Redmond: That's powerful.
Clay: Tim, throughout your career, how have you personally witnessed talented people without integrity, crash and burn?
Tim Redmond: Let me tell about my own experience here. We were growing our software company. We had access to certain information from another source that was completely away from us, and they gave us this information, and it was information, some competitive information, and the CEO checked with our lawyers. Yeah, we're above board, this and that, and it seemed okay for us to take advantage of this information.
So, I took it. I chewed it up, and I destroyed the competitor with it. I mean, I did the marketing, we did the follow up, we did everything there. We destroyed the company here, but in my gut, I didn't feel ... My tug, my gut, is like this is not the right thing to do. I wouldn't want anybody doing this to me, and it turns where that gut feel, and I gave into this thing, we generate all this money and it was awesome, and yet I personally had to repent. I personally had to turn around on this. It ended up costing our company, through a weird thing that happened, that we shouldn't have been caught. It cost us hundreds of thousands of dollars, and to me, a damaged reputation that just ... It was like a permanent tattoo to say this is too costly for me to play with something.
It could have been gone either way with it. We kind of settled in this thing that could have got ugly. We may have won, but it will cost you too much to fall into it. People are not going to trust you, and what you do behind the scenes, someday is going to get revealed.