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Will You Please Do Me a Favor?

 

Trust-Hands-Heart-PeopleToolsHow do you respond when a friend asks you for a favor? While this situation may seem quite ordinary, your answer actually says a lot about the level of trust between the two of you.

When asked for a favor, most of us will reply, “It depends on what you want.”  After all, an immediate “Yes” seems like signing a blank check on which the other person can fill in whatever amount they like.  Despite this possibility, I decided years ago that I would always answer with a smile and say, “Sure.  I would be happy to do you a favor.”

Have I ever been sorry?  Has anyone ever asked for a loan of ten thousand dollars?  Or to borrow my new car for a two-week road trip across the country?  Or to help them rob a bank?  These things have never happened.  Not once.  I find that people who ask me for a favor always have a clear idea of what I will and will not do for them. I have never had to change my answer or turn anyone down.

By saying “Sure,” even before I know what the favor is, they know that I trust them to ask me for something reasonable.  Trust is the indispensable glue that connects us to each other. It is the same glue that holds our entire society together.

Think about it.  If I didn’t trust other drivers I would never ride in a car.  If I didn’t trust a pilot I would never board an airplane.  If I didn’t trust my bank I would keep cash under my mattress.  (This assumes that I trust the government to back up their promise that my dollar bills will be worth something.)  Every day we trust people we have never met.  So why shouldn’t I trust a friend?

But the issue goes deeper than that.  When someone asks for a favor, to me the underlying question is really this:  “Do I trust myself?”  Do I trust that I will be able to deal appropriately with a situation in which I may have to reverse myself even after previously saying “Sure”?

When we get married we each say “I do,” and we mean it.  We intend to be together for the rest of our lives.  For better or for worse.  For richer or for poorer.  But sometimes we can’t keep that commitment. Very few decisions in life are final.

Of course, there are some people who just plain lie.  They borrow money with no intention of repaying it.  They promise to meet you for lunch but cancel if a better opportunity comes along.  They accept a job, then quit two weeks later.

This is why trust grows between two people only with time and experience.  Every successful encounter creates greater confidence. This is why large companies spend billions of dollars to establish their brands. They are building trust with the consumer. We trust Apple, or MacDonald’s, or Jiff Peanut Butter based upon our previous experiences.  Or we don’t trust them.  Our personal experience, favorable or unfavorable, is what counts.

I choose to trust other people, including strangers, but I also keep in mind the words of Ronald Reagan who, when talking about a treaty with a foreign power, said, “Trust, but verify.”

open-door-peopletoolsI choose to be open to new people and new experiences.  I like to say, “Sure.”  I enjoy opening new doors to intimacy and adventure.  My policy has worked well for me and for those who know me.  It can also open doors for you.

So will you please do me a favor?  Next time someone asks for a favor, seize the opportunity.  Smile and say, “Sure.  I’d be happy to.”

Thanks.

Alan

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A Surprise Appearance on the Steve Harvey Show

This past Friday, January 16th, Alan appeared as a surprise guest on The Steve Harvey Show. Watch the clip below to find out what the surprise was!


Alan continued his appearance on the show after the commercial break in an interview with Steve about his new book, People Tools for Business. Check out Part 2 below.

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Avoid the Investment Road to Ruin

 

Caught in the StormWhen considering an investment, most of us focus on potential profit.  After all, profit is what we’re after.  But if in our quest for profit we ignore potential loss, we have already put one foot squarely on the investment road to Ruin.

This principle applies equally to an investment in people, but let’s look at the financial context first.

Suppose you have $100,000 to invest.  You decide to diversify (generally a good idea) and put $20,000 into each of five stocks.

Four out of your five selections turn out to be excellent. They earn a return of fifteen percent the first year.  This means that on your first $80,000 you are ahead $12,000.  So far, so good.

But your fifth investment, in Disaster, Inc., turns out to be a blunder.  In fact, Disaster loses eighty percent of its value.  That’s a $16,000 loss on your final $20,000 investment.  Ouch!

And double ouch.  On your first four investments you ended up with a profit of $12,000, but on Disaster you lost $16,000.  So your net result is a loss of $4,000, which means that in the first year your $100,000 shrank to $96,000.

If you do just as well, or poorly, the second year you will end up with $92,160.  The same performance for ten consecutive years will leave you with $66,483.

To summarize, if four out of five of your financial investments perform really well but your fifth is Disaster, in ten years you could lose more than one third of your stake.  Even worse, had you earned seven percent each year for ten years on all five of your investments you would have ended up with $196,715, which is almost double your original capital.

This is why, in my business, I live by a simple rule, “Avoid Disasters.”  I focus just as much on avoiding bad investments as I do on finding profitable possibilities.  In the long run, this strategy generates far greater rewards. Of course, I have invested in more than one Disaster myself in the past fifty years, but I’ve learned a lot from my own mistakes.

The same rule applies to people.  One person named Dismal can devastate your life for years.  When I was practicing law one of my first clients called me after their bookkeeper had stolen more than $100,000.  We recovered a minor portion of the money from one bank, and the ex-bookkeeper even began to repay a small amount each month—until she was arrested for stealing from her next employer and thrown into prison for five years.  It took my client one year to pay my bill, and three years to recover from the loss.

trusting-Relationships-peopletoolsBoth in business and in my personal life I want to be surrounded by people who I can trust and who are happy and enthusiastic.  Why should I invest my time, which is more valuable to me than money, in Mr. or Ms. Dismal?  Moods and attitudes are contagious. For that reason I choose to hang out with people who are both positive and trustworthy, and it takes time to earn my trust.  The best and most rewarding relationships I have are those based on consistent and enjoyable experiences.

Let us stroll then, you and I, along the road to riches and rewarding relationships, leaving Dismal and Disaster to totter down the road to Ruin by themselves.

Alan

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