The Value of Mastermind Groups

The first Thursday of every month is reserved for my Mastermind Group. This is a collective of 10 different CEOs from10 different industries. Each of us has a company ranging in size from about $3 Million USD to $50 Million USD in annual sales. None of us compete with each other and there are no conflicts of interest. We gather to discuss business in general and problems and challenges within our companies as a whole. I joined the group over 5 years ago and rarely miss a meeting.

What would cause a person to give up one business day a month to a group of guys that sit around and talk business? The answer to this question lies in the value each of us derives from the group.

Someone once told me your annual income can be loosely calculated to equal the average incomes of the five most influential people you associate with. If this is true, we can also look at the annual income of our companies in the same way. If you do business with a lot of small, local businesses, your business volume will reflect this. If you work with larger corporations, the size of your orders and your annual volume will reflect that as well.

The point here is, if you want to grow, you have to associate with those who are where you want to be. They’ve overcome the challenges you have and achieved a higher level. We can learn from their mistakes and experiences along the way. They can help us with insights on hiring, sales, production, administration, finance, and so forth.

Why would a bunch of larger companies want to hang out with a bunch of small guys? This is a very good question, and the answer lies in “agility.” Small companies tend to be very innovative and responsive. The larger a company gets, the more out of touch it becomes with its workers and the markets. This isn’t always the case, but for the most part the generalization holds true. These big companies are envious of the smaller companies innovative capabilities and their ability to capitalize and implement quickly. So their motivation is to see if they can gleen any wisdom or tricks that will speed up their own innovation cycle.

Napoleon Hill, in his landmark classic business book that everyone should be required to read Think and Grow Rich, proposed the concept of a Mastermind Group. He correctly theorized when you surround yourself with smart, successful, wealthy, experienced, knowledgeable individuals, their skills and influence would rub off on you. As a result, your overall skill set and capabilities rise as well.

It is a brilliant concept I fully endorse. Without outside perspective, we tend to become mired in our own thoughts and circumstances. We can’t seem to make out the difference of the forest for the trees. We become confused and lost in circular thinking. Solutions to problems evade us. What we need is fresh perspective. A Mastermind Group fulfills this purpose beautifully. Every business (or individual for that matter,) should be a part of such a group. The benefits are amazing as are the “AH HAH” moments or realization.

Finally, the Mastermind Group provides another valuable asset. It is accountabilitiy. This group of effective leaders holds each other accountable for things they’ve said and committed to. This need for accountability is crucial for entrepreneurs and business owners who do not report to anyone but themselves. They can’t run and hide behind anything to escape the scruntiny of the other group members. It can be uncomfortable at times, but it is a huge advantage to have this forced accountability. It speeds things up and makes it easier to get things done within the time frame you have budgeted.

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