In this environment who would ever be willing to give away accounts in order to participate in Supernova? Only those that are willing to grow. You see, growth is a choice. We call it choosing growth over fear. Playing to win versus playing not to lose. “Playing to win” is defined as going as far as you can with all that you’ve got. Playing not to lose is hoping to keep what you have and in the end not die. “Awful-izing,” or focusing on the worst-case senario, is taking ‘playing not to lose’ to the extreme. For example, a Financial Advisor may feel that if he gives away even one account he will lose revenues. If he loses revenues, he might lose his office, his status, his CA, or even his job. If he loses his job, he will lose his house, family, and all his money. If he loses his money, he will be homeless, starve, and die. Therefore if he gives away one account, he will die. Fear is an amazingly debilitating emotion. We know, rationally, that if we give away one account we will not die, but we are not thinking rationally when we are scared.
According to John Leach, survival psychology expert, when faced with a life threatening event 80% of people freeze. They are literally unable to move. Ten percent completely lose it and go berserk. Only 10% of people stay calm, think rationally, and take positive action in their best interest. This has been documented during and after plane crashes, ship wrecks, and other disasters. The 10% who acted calmly and deliberately are usually professionally trained to handle emergencies. These are usually military personnel, trauma teams, police and firemen, pilots and their crew, and others who have undergone extensive training in emergency procedures and have developed rituals for these events that have been practiced repeatedly.
So, how well prepared were you for the 2008 financial tsunami? There have been 20 recessions since 1914. That is one every 5 years. The average bull market has lasted 3 years and 7 months and the S&P 500 Composite Index has increased 189% while the average bear market has lasted 1 year and 2 months and declined 32.7%. These trends are fairly predictable. People in North Dakota living in the Red River Valley have some of the richest farm land in the world. That is because the Red River flows north and floods the valley about every 10 years. Since the town is actually below the river, there tends to be a great deal of destruction and sadness when the heavy rains come. This is, however, a very predictable event and one that can be anticipated. I live on an island in Florida’s Gulf Coast, and we can pretty much count on a seriously destructive hurricane every ten years. We have insurance and chosen to live there. I lost my home on August 13, 2004 to Hurricane Charlie. I was OK with that and rebuilt because as we like to say, “it is the price of paradise.” Some people were wiped out because they had no insurance. Some couldn’t take the uncertainty and left.
How well prepared will you be for the next financial disaster? Will you be part of the 80% that are frozen, or will you be a highly-trained leader of your flight crew that has anticipated every possibility and has regularly prepared for that event? Plan for the best, prepare for the worst. Will you get your passengers out of your plane safely if you lose an engine and have to put it down in a river. Not if you have 300 passengers crammed into a plane designed to carry 100. Not if you have an asset allocation model designed only for fair weather. Not if the exit rows are jammed by untrained, panicking passengers trampling others on the way to the exits.
Supernova will prepare you, your team, and your passengers for the next crisis. You will learn to work as a team to maximize your talents, leverage your time, and give your passengers the best service they have ever received. You will grow your revenues without growing your number of clients. You will increase your income while reducing your headaches. You will like every client and have time to take a personal interest in their lives. No more chaos.. just plan, process, and rituals. You choose…Growth or Fear?