The Personal MBA: A World-Class Business Education in a Single Volume

Speaking—to yourself or to another person—is another effective method of Externalization. Vocal Externalization explains why most of us have had the experience of solving our own problems while talking with a friend or colleague. By the time you’re done talking, you’re likely to have more insight into your problem—even if your listener didn’t say a

To track your Goals, any simple notebook or reference system will do. Personally, I capture all of my Goals in a simple text file, which I print out and keep in my to-do notebook. Whenever I’m thinking about what I need to do, I have my list of Goals handy for easy reference, which makes it easy to determine which tasks are most important.

Desperation is a subtle signal that other people don’t find your offer desirable, and Social Proof (discussed later) starts working against you.

Leverage ratios indicate how your company uses debt. “Debt-to-Equity” ratios, which are calculated by dividing total liabilities by shareholders’ equity, tell you how many dollars a company has borrowed for every $1 in owner’s equity. If the ratio is high, it’s a signal the company is highly Leveraged, which could be a bad sign.

If you want to create something that you can sell without your direct involvement, the ability to Duplicate your offer is essential. If you have to be personally involved with every customer, there’s an upper limit on the number of customers you can serve in a given amount of time.

The test drive is used to sell cars all over the world for a very good reason: it works.

Since Framing is an ever-present part of communication, it pays to be conscious of it.

As a business professional, it’s important to understand that status considerations are present in every level of the Core Human Drives.

the desire to Reciprocate is not necessarily in proportion to the original benefit provided. In Influence: The Psychology of Persuasion, Robert Cialdini provides an example of reciprocation in car sales. Car salesmen typically offer prospects a small gift up front. “Can I get you a coffee? Would you like a soda? Some water? Cookies? Is there anythi