Franziska: Hi and welcome back to Basic Bananas TV. I’m here in Kuala Lumpur at the Mindvalley offices. I’m here with Ajit. The legendary Adjit. We just finished recording a course with Ajit, and I asked him; Can I quickly grab you to share some of your knowledge. This guy is an incredible mastermind. He is amazing at marketing, and business.
I asked him if he could maybe share something. I just thought maybe you could share something about decisions, and making challenging decisions.
Ajit: Sure definitely. What usually happens as entrepreneurs is we get so many ideas that always come to us. There’s a new strategy, there’s a new label, there’s this new thing, and that is happening. There’s always something new that’s happening out in the world.
What happens as an entrepreneur you have to be able to make the right decision. To be able to say no, on what to no do. It’s as important as what to do. Right? It’s kind of hard to be able to know what’s going to work, and what’s not going to work.
Usually what I do, and what I suggest my students to do; Is that they follow a structure of actually making decisions when you have actually many things that you can choose from. Right? What I call it is LERR system. Which is L is for leverage. E is for ease. R is for risk, and R is for return. It’s very easy to remember. It’s L-E-R-R every single time.
What you do is you weigh each of the item, or each of the options that you have on a scale of 1 to 5 on the LERR model. For example let’s say you have Facebook adds versus LinkedIn. Let’s say you have to pick 1 as to what is the real [inaudible 00:01:49] strategy that you want to go for. You go Facebook app what is it leveraged? Is it something that you can build on? If you have a really good [plan page 00:01:55] for example it’s leveraged already. As LinkedIn, let’s say if you were starting low you would rank it low. Facebook might be 5, and LinkedIn might be 3, or 2. Whatever, right.
Franziska: [crosstalk 00:02:06]
Ajit: The E again. You’ll go what’s easier for you to execute? Maybe Facebook already created videos. All that kind of stuff. It will be higher ranked. Maybe LinkedIn is easier for you, because maybe you have an employee that could take care of all that stuff, and you don’t have to do it. It becomes easy. What are the ranks? Again stage 1 to 5. Number 1 to 5.
Then you go risk. The lower the risk the higher the number you give it. For example, let’s say Facebook is less for you, or LinkedIn is less risk for you. That risk is really defined by how much money you have to put in, and what’s the risk of you losing it all. What has the lowest risk get’s a higher number there.
Return is whatever gets the higher return from the business gets the higher number. Then you total up, and sum up the numbers. You’ll essentially find something that weighs out of the 2 ideas out of the 10 ideas. That give me, and entrepreneurs that leeway to always be able to make a decision, but they don’t have to ponder, and kill themselves on it. There’s a structure. There’s a number. You just go through it [crosstalk 00:03:07].
Franziska: That’s interesting, because it kind of works … I was thinking in my head, okay that’s a need or decision making process. It actually also works if somebody comes with a great proposal to you, and you think; Should I do it, or should I not do it? LERR for doing it, and LERR for not doing it. Yes, or no. It can apply too.
Ajit: Our businesses are … How successful we get into our business is lots defined by the quality of no’s we get, right?
Franziska: Yeah.
Ajit: Those are more important most of the time then our yes’s. We like to say yes to everything.
Franziska: Absolutely.
Ajit: LERR kind of helps you do that.
