Unfortunately for Burger King and Wendy’s, they are not going to get ahead by doing the same old thing, but just being a little bit better at it. In a world with massive competition, businesses need to stand out from the crowd.
They need to un-commoditize. That’s what Burger King and Wendy’s are missing. Next to McDonald’s they’re just commodities, even if they are a little better. So if you can’t be McDonald’s, be Taco Bell or Starbucks instead. Don’t be Wendy’s or Burger King.
The beauty about un-commoditizing your business is that it puts you in a category of your own. When you are in your own category, there’s nothing to compare you with. When there’s nothing to compare you with, then there’s no set expectations for how much you should cost.
When that happens, guess who gets to set the expectations? You do, which means you can set your prices drastically higher and radically increase your profit margins. If you can effectively bring in and keep customers without having to compete on price, then you’re probably going to be rich. Does that sound okay with you?
To help you do that, I’ve included a list of 11 strategies that you can use to un-commoditize your business.
1. Go with a different look
Marketing expert, Perry Belcher tells of a company he worked with that imported heat sealers from China. “Everybody in the world brings in these little heat sealers from one company in China. They’re an aqua blue color and… just scream, I’m a Chinese heat sealer!”
Belcher was able to command a higher price for the exact same heat sealer simply by making it look different. He had the heat sealers painted red instead of blue (which probably didn’t cost him any extra) and sold them through a company with an American sounding name.
Apple does something similar with their shiny white computers that sell for three times the price of a PC. Going with a different look is probably not the only way that you’ll want to stand out, but it might be a great way to start.
“Be the one to stand out in the crowd.” – Joel Osteen
2. Be aggressively devoted to premium quality
Speaking of Apple, how many times have you heard that one of their products just bombed? Answer: Not recently. In fact, it was reported that preorders for their watch sold out in a matter of hours. Compare that with their main competitor, Microsoft, who has had significant problems with two out of the last four Windows updates.
No wonder Apple products cost so much more. And it’s not just Apple. Think of names like:
- The Four Seasons
These are companies that do not compete on price. They get rich competing on quality.
3. Bundle physical products with your information products
Thanks to the Internet, selling information products is easier than ever. As a result, everybody is selling information products. After all, why not? The profit margin can be up to nearly 100%. The downside of this is that it becomes very hard to stand out.
With all this competition we’re seeing much lower prices for certain information products than you would have seen only a few years ago. But, if you’re interested in getting rich, then competing on price is a bad idea. Instead, find a way to stand out and charge even higher prices.
A great way to do this is to bundle information products with physical products. For example: A company that sells a course on how to be a better skier could bundle the course with a set of skis and charge a much higher price.
4. Bundle information with your physical goods
This is the reverse of what I was just talking about. The Internet has created massive competition for sellers of information and physical goods alike. By bundling information products with your physical goods you can drastically increase profit margins.
Using the same type of example as before: Instead of just selling a set of skis, you could sell them along with a course on how to be an expert skier. By using this strategy you can raise the price significantly, without increasing costs very much.
Luckily, information products are not too hard to come by. You can partner with someone who sells information products. You can offer to publish an information product that someone has created or wants to create. Or, if you have the expertise, the time and the interest, you can create your own information products. (Note: Just make sure that the information products you use are always top notch.)
5. Create a subcategory
Charles Lindbergh was the first person to fly the Atlantic solo. That’s fairly common knowledge. Do you happen to know who the second person was? Nobody knows, even though Bert Hinkler actually did a better job. He made the trip in less time and with less fuel.
But, in business poor Bert would have been nothing more than a me-too product that people ignore. The dominating spot in his market had already been taken, and sometimes people just don’t care if you can do the job better. There’s already a name that they trust.
If you’re new to a market that already has a leader, then you need to create your own subcategory that nobody has claimed yet. You’ve possibly heard of the third person who flew the Atlantic solo. Her name was Amelia Earhart. But no one remembers her as the third person to get the job done. She was the first woman to get the job done. She had her own subcategory.
Want an example? Between Apple and Microsoft the personal computer market is pretty competitive. But what if a company came along and created its own computers with an operating system that is designed specifically and exclusively for gamers?
Between Microsoft having had way too many problems in the last few years and Apple not really focusing on the videogame market, a company who did a great job creating and marketing a computer exclusively for gamers might be very successful.
“Today we’re living in an anti-Waldo world, where you don’t want to blend in and have people struggle to find you. You want your personal brand to stand out like you’re wearing a red and white sweater, and everyone else has on black.” – Jarod Kintz
6. Create a better guarantee
With so many swindlers out there your customers obviously need to know that they’re not stepping into a trap they can’t get out of. Hopefully that’s not news to you. Unfortunately, in many markets having a 60 day 100% money back guarantee is more of a given than a bonus these days.
Just about everyone has some type of guarantee. If you want to stand out, why not try offering something much better than everyone else. For example you could try offering to refund 110% of your price to any unsatisfied customer. Obviously your risk is slightly higher with such a guarantee.
But your likelihood of losing money instead of gaining much more money with this kind of guarantee is extremely low, assuming you’re offering a quality product or service. What type of superior guarantee could you offer in your business?
7. Be a contrarian brand
Whether it be corporate giants, big government, the media or even some charity organizations, people just don’t trust the mainstream establishment anymore. There’s been one too many stories about corporate deception, political bribes and media coverups.
Sometimes to be successful, you can’t just be a little different than everyone else. You have to be the opposite. In The 22 Immutable Laws Of Marketing Al Ries and Jack Trout write:
“A good No. 2 [brand] can’t afford to be timid. Burger King’s most successful years came when it was on the attack. It opened with “Have it your way,” which twitted McDonald’s mass-manufacturing approach to hamburgers. Then for some unknown reason Burger King got timid and stopped attacking McDonald’s. It even started a program to attract little kids, the mainstay of McDonald’s strength. Burger King’s sales per unit declined and have never returned to the level they were when it was on the attack.”
How could you attack the status quo and make your business an opposite brand? Remember: What you’re offering doesn’t have to be the exact opposite or even necessarily very different. What has to be opposite is your message and how you position yourself.(Note: After all, Burger King was never really that different from McDonald’s.)
8. Create an outstanding acquisition offer
Thanks to the Internet creating a global marketplace, small businesses can reach more customers than ever before. But the Internet is a mixed blessing. Yes, you can reach a vastly increased pool of potential customers. But, you are also placed next to a vastly increased number of competitors.
Add this to the fact that today’s buyers are more skeptical than ever, and you may have a real problem on your hands. The good news is that all your competitors face that same dilemma, which gives you a chance to get ahead of them… if you use smart strategies.
Today’s buyers are so skeptical, they tend to stick with brands that they know and trust. But, how are they ever going to trust you if they never give you a chance? The trick is getting that first sale which allows you to knock their socks off and prove that your brand is the one that deserves their business.
A great way to do this is with an acquisition offer. An acquisition offer is a high-value, low priced offer that allows you to acquire a new customer and prove to them the quality of your brand. If you can prove to them that your brand offers great quality and service, then they’ll probably keep on buying from you in the future.
Cable/Internet companies have a tendency to do this by offering a deeply discounted rate for a limited time. During that discounted phase they’re hoping to prove how great their service is, so that you’ll stay with them long-term.
An example of a similar strategy is McDonald’s dollar menu. Maybe you go there just to buy that one dollar burger. But what do they do once you’re there? They ask “Would you like fries and coke with that?” I guarantee you, they’re not getting rich off the sale of one dollar burgers. They’re getting rich off the sale of side dishes and soft drinks.
9. Focus on a benefit your competitors don’t talk about
Sometimes what you sell doesn’t actually have to be different. Sometimes what is different is what you say and who you say it to. Let’s say there are five different companies that buy the same type of soap from the same manufacturer.
One company emphasizes how good their soap is for dry skin. One company emphasizes the powerful germ killing effect of their soap. Another company tells people that they offer THE soap to use if you want to smell and feel like an attractive lady. One company emphasizes how refreshed and clean their customers will feel after they get out of a shower with this soap. The last company emphasizes how effective their soap is at eliminating body odor.
Now, these companies might have asked for a bit of customization. Maybe they each have their logos on the bars of soap. Maybe one company asked for their soap to be colored blue while another asked for pink, but they are all selling the same exact soap!
None of them are lying. All the soap being sold by these companies is good for dry skin, eliminating B.O., killing germs and so on. Yet these five companies are able to sell the exact same product to different target markets simply by emphasizing different benefits.
The beauty is that all five might end up being very successful even if they charge high prices, because they’re just selling next to each other. They’re not competing with each other.
10. Describe your process and why it’s good (even if it’s not unique)
Let’s take that last soap example a little bit further. Let’s say that there is a sixth company that starts buying some of the same soap from the soap manufacturer. They’re just passionate about the germ killing effects of this soap and they don’t want to come up with a different angle to use to sell to a different target market.
Their problem is that there is already another company, with an established brand, selling that same product to that same market. The new company will want to find a way to differentiate itself. This can actually be as simple as telling their customers why their product works so well.
Instead of just saying: “Our soap is THE soap to use to kill germs.” They can say: “Our soap is THE soap to use to kill germs because we include powerful, state-of-the-art antibiotics in our formula. The germs won’t stand a chance.”
By saying this, they are able to differentiate themselves and sell the exact same product to the exact same market for the exact same reason. If they sell their product using this message they may be able to get a serious advantage over the company that was already selling to the germ killing market.
Because they sell it as a product using state-of-the-art science, they could likely charge an even higher price than the already established company. It doesn’t matter that the first company has those antibiotics too, because the customer doesn’t know that.
And the first company can’t suddenly start talking about the powerful antibiotics in their formula, because they will then look like the me-too company. They’ll have to come up with a new reason why they are still the best germ killing soap company.
11. Offer out of this world customer service
Am I the only one who hates having to call help or customer support at companies? First you have to wait forever to actually talk to a person. You never know if they’re actually going to know what they’re doing and be helpful or if they will be ignorant, stubborn or rude.
So why not be the company that blows their customers away with how good they are treated? Try these:
- Try guaranteeing to answer the phone by the third ring.
- Try offering to have someone come out to your customer’s home or office to help them assemble your product and/or teach them how to use it.
- Follow up after a purchase with a friendly phone call and make sure everything is alright. Ask if they have any questions or anything else you can help them with.
- Be relentlessly helpful, friendly and generous every step of the way.
Un-commoditizing your business is not only possible. It’s essential if you want to compete and win in a competitive global marketplace.
Once you un-commoditize your business, you’ll have the power to drastically raise prices and increase profit margins without getting compared to cheaper alternatives. If you truly and successfully un-commoditize your business then there are no alternatives.
These 11 strategies can help you stand out in business. So, which un-commoditizing strategy are you going to try first?
5 Ways to Deal With Startup Uncertainty
Starting your own company may sound like a dream come true in your mind, on social media, and to all the people looking on in envy from their office jobs. But when the fantasy fades, you realize how much uncertainty you now have in your life. The inherent risk in any startup is that you are trading the certainty of a normal job for real growth and freedom. What people get from office jobs is much more than a steady pay check and free coffee. It’s a sense of certainty that their lives, work, and finances are in order.
You will have to give up certainty to fully take on the risks of this lifestyle. It will be roller-coaster and something you need to prepare for. Logically, it’s easy to know that. But emotionally, there are so many ups and downs in an entrepreneur’s life. Stress, frustration, and decreased motivation are inevitable.
Here are 5 ways you can deal with startup uncertainty:
1. Stick to a morning routine
There’s many ways to start a morning routine. What’s important is to have a stable, predictable routine. This centers your mind and gives you some order to your day. You manage your business and you can do whatever you want. No boss and no one telling you what to do, it can be mix of productive to outright messy days. By giving yourself some stability, you start the day off in a predictable way so that you can jump into work each day.
It’s as easy as taking your dog to the park, having a cup of coffee, and listening to a motivating audiobook for 20 minutes. You may need meditation to get into the state. Whatever it is that you need to get from a sleepy/hungover mindset to that of taking on the day.
“If you win the morning, you win the day.” – Tim Ferriss
2. Make time for high performance books
Speaking of audiobooks, everyone – especially entrepreneurs, need motivation. Get a few motivating books from other business leaders. This will do incredible things for your mindset and the way you think. Most of them help by keeping you excited for bigger goals. Look for classics from Jim Rohn and Tony Robbins. Or the newer motivational personalities like David Goggins and Rachel Hollis. You’ll be surprised at how much hearing someone’s hardships on their journey will help you on your own.
It’s easy to get a packed calendar working an office job. Everyone else in the company seems to be demanding your time for one meeting or another. Pointless meetings are even the reason some people leave their jobs in the first place. The issue with having your own startup is that while the pointless meetings are gone, so too is any semblance of structure from a filled up calendar.
Spend one evening and fill the upcoming week as much as possible. I recommend Sunday afternoons to think about your goals. Plan big tasks every day throughout the week. That way you always know what you should be working on and stay on track.
4. Hit the gym
This one is actually part of my morning routine and it’s benefits can’t be overstated. Exercise helps fight off anxiety and stress. There’s no better way to funnel your business frustrations more than into the weights. By the time you’re done, your body and mind will be much more relaxed. A necessity when it comes to the tension of being an entrepreneur. Whether that’s staring at your laptop or making sales calls.
“Daily exercise is an insurance policy for future illness.” – Robin Sharma
5. Be grateful
Gratitude was one of the feel good things that I always used to skip whenever it was mentioned. I wanted cold, calculated strategy or tools I could use to build a business as fast as possible. Many brilliant minds in not only self help but also in business, speak about the need for gratitude.
Here’s why it helps me when the business is going through growing pains or everything seems like it is going wrong. I get filled with doubt and uncertainty and gratitude is the quickest way to relief.
Yes, starting your own business is a massive effort, but there is always some job out there. You decided to launch something of your own because you don’t want a baseline existence. You want to grow and build with the freedom someone can only give themselves.
That alone is enough to be grateful. But if you need more, how about that most people are too scared to do what you’re doing. Or that you are taking the time to believe in yourself and live a life of taking chances.
That speaks to your character and self-worth. Much more than the life of quiet misery so many people in the world allow to decide their entire lifestyle. Be grateful you have this opportunity and make the most of it.
The Best Side Hustle You Can Start Today In Just 15 Minutes
The best side hustle you can start in 15 minutes is blogging.
It can be writing, making videos or speaking about topics you love through a regular podcast show. All of these acts are a form of blogging.
15 minutes is not long
That’s why blogging is a good choice.
A video that’s less than 15 minutes is easy to make and will work well.
A short piece of writing can be written in under 15 minutes.
A 10-minute audio conversation on one single question will give people heaps of value and detail in one particular area.
Starting is not where the power lies. Doing this side hustle every single day is how you get what you’re really looking for.
Many successful people are doing this
Whether it’s Hollywood actors like Will Smith or writers like Tim Ferriss or musicians like Ariana Grande — everyone is doing it.
Why is everyone doing the side hustle of blogging?
- It’s how we connect with each other.
- It actually works.
- It’s a way to create an audience which can become a business.
I didn’t invent this side hustle
I just tried it for myself and saw how powerful it was.
It got me:
- New clients for my 9–5
- A new 4 day a week day job
- Clients to coach via Skype
- Features in major publications like CNBC
- The opportunity to meet amazing human beings like LinkedIn influencer Michael Chapman
The side hustle of blogging gave me meaning for my life
Before this side hustle, I was washed up, uninspired, negative and pissed off with the world.
Spending 15 minutes to start the habit of blogging got me out of my head. It forced me to search all over the internet and find things to talk about. Pretty soon I was spending 2+ hours a night researching personal development and figuring out what I wanted to blog about.
Blogging led me to want to help the homeless, share my very private battle with mental illness, come to grips with my startup failures and share the lessons, and even overcome my fear of public speaking in the process.
Now I have a meaning for my life thanks to the side hustle of blogging. I reckon it can do the same to help you grow and get you to the next level. You can blog about whatever you want and then watch it grow from there.
Why is blogging the best side hustle?
It’s how you be creative.
It’s how you express yourself.
It’s how you grow.
It’s how you attract the right people into your life.
There are many side hustles you could choose. Blogging is one of many. In my opinion and based on my experience, it’s the best. There are so many avenues you can go down.
“Attracting what you want in your life has a lot to do with what you’re putting out into the world”
Blogging is a fantastic way to put out more of what’s important to you, into the world. Like a magnet, blogging attracts more of what you put out into your life.
Oh and don’t forget the income
Investing, giving back and making an income are all possible through blogging too. Part of my monthly income comes from blogging.
This allows me to back causes that help those in need, invest in stocks that provide me with a passive income and have money to spend on the occasional treat such as dinner dates and drinks with my co-workers.
That money comes from:
- Ghostwriting for other people
- Posting on Medium.com
- Coaching clients via Skype
- Consulting to businesses on how they can create content that aligns with their brand
There aren’t too many side hustles that can do that for you
Seriously, blogging is a game-changer. It’s a habit you can start in 15 minutes and repeat daily without much effort. Choose your poison — writing, video or audio — and then get started.
Do it for around twelve months and then send me an email with what you experience. I already know, having challenged lots of people already to start this side hustle, that it will work. It just requires patience and the habit of doing it daily.
15 minutes to start today.
And then 15 minutes every day for the rest of your life.
You Are The Problem With Your Business
A great way to screw up your company is to get into the habit of blaming your suppliers, the market, your staff or your product for your failures.
I recently heard a story of a business that had set up a website. They sold various products and services focusing on helping people with psychological issues. The business owner was smart. The product solved a problem.
Unfortunately, the company was making almost no money. They’d hired someone to help them with their digital marketing and it wasn’t working.
Plenty of traffic was coming to the site, users were having a look around and then not buying a single thing. Who’s fault was this?
Well, according to the business owner it was the person running their digital marketing. As a result, they wasted approximately eight months marketing a website that couldn’t make any sales. The reason the business was failing according to the owner was because of the keywords that were being targeted in the marketing campaign. This is a horrible excuse.
The reason your business fails is because you’re blaming someone other than yourself. It’s the quickest way to bankruptcy. Don’t do that.
Your company is a reflection of you.
It took me a long time to figure out that a company is a reflection of its founder.
One of the businesses I had, had a toxic culture and a bunch of people that were rude to customers, arrogant and not nice people. That was a reflection of exactly who I was at the time.
The company was reflecting the flaws of my own life and what I refused to admit.
In the case of the business owner above, what was obvious is that they were good at telling lies to themselves. It was easy not to change as a business owner and insist that the change needed was nothing to do with their vision.
The issue of their company was not the digital marketing strategy but their lack of understanding around what their customer wanted.
The thought that their products were too complicated, not solving a real problem or priced incorrectly was an admission of guilt they wanted no part in. Hence the eventual demise of their company.
Take responsibility and it will change.
When you own the business, everything is your fault.
You have the power to solve any problem you choose. It starts with you being brave enough to admit that there’s a problem, and then secondly, being bold enough to insist it’s your fault and that you can change it.
The problems in your business can all be solved. That’s what it took me a very long time to understand. When I changed as a person and faced up to my hidden battle with mental illness that I didn’t want to talk about, the odds turned in my favor.
Had I have not taken responsibility for my mental illness, I would have never become a leader in a business or started another side hustle. I would have been crippled by the big, bad world that I thought I could control.
Control came from responsibility, and responsibility solved the major problem in my business: me.
Change is a must.
Not with your digital marketing strategy.
Not with hiring new people.
Not with developing a new product.
“Changing yourself is the *must* because YOU attract the problems and the solutions into your business”
You can’t find the solutions or stop the never-ending problems until you stop the cause of it all: you. You’re the problem with your business. The good news is that it’s entirely within your control to fix.
Not the business.
The Different Ways of Measuring the Success of Your Start-Up
You’ve probably heard people use the term “unicorn” in a business context. This means a privately held start-up whose value has grown to at least one billion American dollars. Think Airbnb, Uber, and so forth. There is no doubt that some start-ups have been major financial successes. And many smaller-scale start-ups are doing great as well, working hard and turning a steady profit. But that begs the question of whether finances are the only way to measure the success of a start-up. As it turns out, they might not be. At least, not always and not on their own.
How to Evaluate Success
As anyone who’s been involved with start-ups knows, you need a fair amount of flexibility to do well in this environment. Take the division of labour for example – rather than strict roles, you’ll often see everyone do a bit of everything. The same principle extends to measuring success. It can be vague and mean different things to different people, and it can change over time.
But amongst all that vagueness, one thing has become clear. Predicting the success of a start-up is very difficult for external observers. As a matter of fact, it’s often impossible. Therefore, in order to evaluate how successful a start-up has truly been, we need to know the goals of its founder(s).
“Success means we go to sleep at night knowing that our talents and abilities were used in a way that served others.” – Marianne Williamson
When people think about business, it’s common to boil matters down to the finances. And it certainly is possible to use numbers to measure and predict the performance of a start-up business. Net worth, gross margin, customer acquisition cost – these can all be indicators of success. But, a start-up can post impressive numbers for a while, perhaps even attract large investors, and still shut down in the end. So does this make it a failure?
The answer to this depends. If the founders wanted to start a lasting business, then yes, they failed to meet their goal. However, that isn’t always the case. If they were looking for a short-term solution and came out with more money than they had coming in, a closed-down start-up needn’t be unsuccessful. It can actually be the opposite of that.
So, looking at the figures isn’t enough, and there are different perspectives to consider. When they start planning their business venture, start-up founders may not have any particular numbers in mind when it comes to profit. Instead, they can judge their success according to some of the following criteria.
1. Happy Customers and Solving Problems
The story of a start-up often begins with a problem. The desire to help people overcome a specific issue can be the spark which ignites the creation of an entire business. And in the end, that may be all that matters to the founders.
This is closely connected to the happiness of the customers. If the resulting product or service has made people happy by helping them solve a problem, that is all that may be required for a start-up to be a success. Now, no business wants unsatisfied customers. But in cases like this, happy customers aren’t the way toward the ultimate goal – they are that goal.
In other words, some start-up founders don’t just use financial reports to measure how much they’ve achieved. To them, the one metric which stands above all others is the quantity of positive feedback they’ve received. The main area of focus is customers who use the start-up’s products or services to solve a problem they were having.
Every start-up founder likes doing well in terms of revenue. But for some of these entrepreneurs, the profit is merely a side effect of what they actually set out to do – impact the world in a positive manner. You can see an example of this line of thought with Elon Musk. He said that back in college, he had wanted to be a part of things that could end up changing the world. The continuation of this philosophy is evident in his electric cars (which aim to reduce pollution) and the SpaceX program (which strives to break down some of the barriers of space exploration).
In both cases, the furthering of mankind is the ultimate goal. Many other start-up founders feel the same, even if they have smaller goals in mind. To these people, there is no greater proof of success than if their company has had a positive impact on society or even a small segment of it. In their view, to make a difference is to succeed.
“The only limit to your impact is your imagination and commitment.” – Tony Robbins
For some, starting up their own business is less about getting rich and more about gaining the freedom to conduct their business the way they want to. In this case, financial success is just a means to an end. The endgame is to be your own boss.
The fact is, some people don’t do well when they’re constantly receiving orders. They are simply hardwired to be free thinkers and they require an environment that allows them to do things in their own way.
Being in a position where you hold all the cards can be exhilarating. The knowledge that your decisions are final is very empowering, and many strive for such freedom. If a start-up can allow such people to go from being a regular employee to being in charge of making all the decisions, then it has already achieved all the success that it needs to.
4. Time for Friends and Family
As many people know all too well, a job can easily turn into the focal point of your daily life. Instead of being a way to support your lifestyle, your work dominates your time. And when that happens, the time you have to dedicate to your loved ones becomes scarce. Combating this is precisely what some have in mind when they decide to take the leap and start their own business.
Now, running your own company is no mean feat and it will require a lot of effort. But the beginning is the most time-consuming part of the process. Later on, it can be possible to create a system which leaves you with a lot more time on your hands. You can spend this time with your significant other, your children, or your friends. A start-up which gives you this opportunity is perhaps the greatest success of all.
A start-up is an extension of its founders and so are that company’s goals. Some entrepreneurs are in it for the profit, but not all of them. In the end, there is no single way to measure the success of a start-up. It all comes down to the specific aims of those who established it. But if the founders can end their day on a happy note, then the venture is a success even if it doesn’t fit some standard definition of the term.
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