Lessons From Sun Tzu: How to Use Military Strategy to Build Better Habits 3/5/16 3:46 PM

This story originally appeared on JamesClear.comSun Tzu was a legendary military strategist in ancient China and he is the author of the famous book, The Art of War. He was a master of “soft power” and the father of “agile warfare.” Whenever possible, he preferred to win without fighting or, at the very least, to win the easiest battles first. He wrote, “In war, the victorious strategist only seeks battle after the victory has been won.” He advised his troops to “make your way by unexpected routes and attack unguarded spots.” And he further stated, “Military tactics are like water. For water, in its natural course, runs away from high places and hastens downwards. So, in war, the way is to avoid what is strong and strike at what is weak.”The teachings of Sun Tzu extend far beyond the field of battle because they are focused on finding the easiest way to achieve a specific goal. His approaches can be applied to everything from business growth and goal setting to weight loss and habit formation.Let’s talk about how to apply military strategy to our daily lives.The battle for better habitsToo often, we try to build new habits, achieve big goals, and otherwise “win at life” through sheer force. We fight our battles directly and attack the enemy — in this case, our bad habits — at the point where they are strongest.

For example:We try to follow a strict diet while we are out to dinner with friends.We try to write a book in a noisy environment.We try to eat healthy in a house filled with sweets and sugar.We try to do our homework with the television on.We try to concentrate while using a smartphone filled with social media apps, games, and other distractions.And when we fall off course and fail to achieve our goals, we blame ourselves for “not wanting it badly enough” and for not having enough willpower. In many cases, however, failure is not a result of poor willpower, but a result of poor strategy.

Good military leaders start by winning easy battles and improving their position. They wait until the opposition is weakened and morale is low before they take on their foe directly. Why start a war by fighting battles in areas that are well-defended? Why start new habits in an environment that makes progress difficult?Sun Tzu would never lead his army into a battle where the terrain was not to his advantage. He would not begin by attacking the point where the enemy is strongest. Similarly, we should make easy improvements to our habits first, build our strength, and establish a better position from which to attack the most difficult changes.Sun Tzu, master of habitsLet’s adapt Sun Tzu’s teachings to building better habits.Example 1:Sun Tzu: “You can be sure in succeeding in your attacks if you only attack places which are undefended.”Adapted: “You can be sure in succeeding in your habits if you only build habits which are easy to maintain.”Example 2:Sun Tzu: “He will win who knows when to fight and when not to fight.”Adapted: “He will improve his behavior who knows which habits to start with and which ones to leave for later.”Example 3:Sun Tzu: “A clever general, therefore, avoids an army when its spirit is keen, but attacks it when it is sluggish and inclined to return.”Adapted: “A clever person, therefore, avoids the areas where bad habits are strongest, but attacks them where they are weak and easy to change.”Fight battles you are destined to winBecoming better is not simply a matter of willpower or work ethic. It’s also a matter of strategy. What people assume is a lack of willpower or an unwillingness to change is often a consequence of trying to build good habits in bad environments.If you are trying to read more books, don’t do it in a room filled with video games, Netflix, and a television. Move to a less distracting environment.If you’re very overweight, don’t try to follow a workout program for college athletes. You can get there eventually, but that’s not a battle you need to fight right now. Start with a manageable change.

If you’re surrounded by people who tear down your goals, then work on your projects in a different location or reach out to like-minded people.If you’re trying to stick to a writing habit when your kids are home from school and your house is in chaos, then work on it at a different time. Switch to a time of less resistance.Build your habits where it is easy to do so. Re-define the situation. Create a game where the odds are stacked in your favor.It sounds simple, but how often do you find yourself fighting difficult battles and ignoring easy ones? There is plenty of time to fight the difficult battles. Win the easy battles first.

10 Signs You're Burning Out (And How To Stop It)3/5/16 3:46 PM

Even the best jobs can lead to burnout. The harder you work and the more motivated you are to succeed, the easier it is to get in over your head.The prevalence of burnout is increasing as technology further blurs the line between work and home. New research from the American Psychological Association and the National Opinion Research Center at the University of Chicago reported the following:48 percent of Americans experienced increased stress over the past 5 years31 percent of employed adults have difficulty managing their work and family responsibilities53 percent say work leaves them "overtired and overwhelmed."A Society for Human Resource Management (SHRM) poll found that “burnout from my current job” was one of the top reasons that people quit.Related: Breaking These 13 Bad Habits Will Make You Happier

Burnout can get the better of you, even when you have great passion for your work. Arianna Huffington experienced this first hand when she almost lost an eye from burnout. She was so tired at work that she passed out, hitting her face on her desk. She broke her cheek bone and had to get four stitches on her eye.“I wish I could go back and tell myself that not only is there no trade-off between living a well-rounded life and high performance, performance is actually improved when our lives include time for renewal, wisdom, wonder and giving. That would have saved me a lot of unnecessary stress, burnout and exhaustion.”   –Arianna HuffingtonBurnout often results from a misalignment of input and output; you get burnt out when you feel like you’re putting more into your work than you’re getting out of it. Sometimes this happens when a job isn’t rewarding, but more often than not it’s because you aren’t taking care of yourself.Before you can treat and even prevent burnout, you need to recognize the warning signs so that you’ll know when it’s time to take action. Here they are, in no particular order.1. Health problems. 

Burnout has a massive, negative impact upon your physical and mental health. Whether you’re experiencing back pain, depression, heart disease, obesity, or you’re just getting sick a lot, you need to consider the role your work is playing in this. You’ll know when burnout is affecting your health, and you’ll just have to decide whether your approach to work is worth the consequences.Related: 10 Rules for Beating Stress2. Cognitive difficulties. Research shows that stress hammers the prefrontal cortex, the part of the brain responsible for executive function. Executive function impacts your memory, decision-making abilities, emotional control, and focus. When you notice that you’re making silly mistakes, forgetting important things, having outbursts of emotion, or making poor decisions, you’re likely burning out.3. Difficulty with work and personal relationships. Stress bleeds over into everything you do, particularly how you interact with people. Even when you feel that you’re keeping your stress under control at work, it can rear its ugly head at home. Often it’s your relationships that suffer. Stress makes many people more likely to snap at others, lose their cool, and get involved in silly, unnecessary conflicts. Others are more inclined to withdraw and avoid people they care about. 4. Taking your work home with you. 

You know that sickening feeling when you’re lying in bed thinking about all the work that you didn’t get done and hoping that you didn’t miss something important? When you can’t stop thinking about work when you’re at home, it’s a strong sign that you're burning out.5. Fatigue. Burnout often leads to exhaustion because of the toll stress takes on your mind and body. The hallmarks of burnout fatigue are waking up with no energy after a good night’s sleep, drinking large amounts of caffeine to get you through the day, or having trouble staying awake at work.6. Negativity. Burnout can turn you very negative, even when you’re usually a positive person. If you find yourself focusing on the down side of situations, judging others and feeling cynical, it’s clear that negativity has taken hold and it’s time for you to do something about it.Related: You Should Spend Your Money on Experiences, Not Things7. Decreased satisfaction. Burnout almost always leads to a nagging sense of dissatisfaction. Projects and people that used to get you excited no longer do so. This dip in satisfaction makes work very difficult, because no matter what you’re putting into your job, you don’t feel like you’re getting much out of it.8. Losing your motivation. We begin jobs in a honeymoon phase, seeing everything through rose-colored glasses. When you’re in this phase, motivation comes naturally. In a burnout state, you struggle to find the motivation to get the job done. You may complete tasks, and even complete them well, but the motivation that used to drive you is gone. Instead of doing work for the sake of the work itself, your motivation stems from fear—of missing deadlines, letting people down, or getting fired.9. Performance issues. People who burn out are often high achievers, so when their performance begins to slip, others don’t always notice. It’s crucial to monitor your slippage. How were you performing a month ago? Six months ago? A year ago? If you see a dip in your performance, it’s time to determine if burnout is behind it.10. Poor self-care. 

Life is a constant struggle against the things that feel good momentarily but aren’t good for you. When you experience burnout, your self-control wanes and you find yourself succumbing to temptations more easily. This is largely due to the way that stress compromises your decision-making and self-control and also partially due to lower levels of confidence and motivation.Related: 8 Unrealistic Expectations That Can Harm YouFighting BurnoutIf you recognize many of these symptoms in yourself, don’t worry. Fighting burnout is a simple matter of self-care. You need good ways to separate yourself from your work so that you can recharge and find balance. The following will help you to accomplish this.1. Disconnect. Disconnecting is the most important burnout strategy on this list, because if you can’t find time to remove yourself electronically from your work, then you’ve never really left work. Making yourself available to your work 24/7 exposes you to a constant barrage of stressors that prevent you from refocusing and recharging. If taking the entire evening or weekend off from handling work e-mails and calls isn’t realistic, try designating specific times to check in on emails and respond to voicemails. For example, on weekday evenings, you may check emails after dinner, and on the weekend you may check your messages on Saturday afternoon while your kids are playing sports. Scheduling such short blocks of time alleviates stress without sacrificing your availability.2. Pay attention to your body signals. It’s easy to think that a headache is the result of dehydration, that a stomachache is the result of something you ate, and that an aching neck is from sleeping on it wrong, but that’s not always the case. Oftentimes, aches and pains are an accumulation of stress and anxiety. Burnout manifests in your body, so learn to pay attention to your body’s signals so that you can nip burnout in the bud. Your body is always talking, but you have to listen.3. Schedule relaxation. It’s just as important to plan out your relaxation time as it is to plan out when you work. Even scheduling something as simple as “read for 30 minutes” benefits you greatly. Scheduling relaxing activities makes certain they happen as well as gives you something to look forward to.Related: 10 Troubling Habits of Unhappy People

4. Stay away from sleeping pills. When I say sleeping pills, I mean anything you take that sedates you so that you can sleep. Whether it's alcohol, Nyquil, Benadryl, Valium, Ambien, or what have you, these substances greatly disrupt your brain's natural sleep process. Have you ever noticed that sedatives can give you some really strange dreams? As you sleep and your brain removes harmful toxins, it cycles through an elaborate series of stages, at times shuffling through the day’s memories and storing or discarding them (which causes dreams). Sedation interferes with these cycles, altering the brain's natural process. Anything that interferes with the brain's natural sleep process has dire consequences for the quality of your sleep, and you need adequate, quality sleep to avoid burnout.5. Get organized. Much of the stress we experience on a daily basis doesn’t stem from having too much work; it stems from being too disorganized to handle the work effectively. When you take the time to get organized, the load feels much more manageable.6. Take regular breaks during the workday. Physiologically, we work best in spurts of an hour to an hour and a half, followed by 15-minute breaks. If you wait until you feel tired to take a break, it’s too late -- you’ve already missed the window of peak productivity and fatigued yourself unnecessarily in the process. Keeping to a schedule ensures that you work when you’re the most productive and that you rest during times that would otherwise be unproductive.7. Lean on your support system. It’s tempting to withdraw from other people when you’re feeling stressed, but they can be powerful allies in the war against burnout. Sympathetic family and friends are capable of helping you. Spending time with people who care about you helps you to remove yourself from the stresses of work and reminds you to live a little and have fun.Related: Stress Literally Shrinks Your Brain. Here Are 7 Ways To Reverse This Effect.Bringing It All TogetherIf these strategies don't work for you, then the problem might be your job. The wrong job can cause burnout in and of itself. In that case you'll have to decide what's more important: your work or your health.

First Steps: Writing the Financials Section of Your Business Plan 3/5/16 3:46 PM

In their book Write Your Business Plan, the staff of Entrepreneur Media, Inc. offer an in-depth understanding of what’s essential to any business plan, what’s appropriate for your venture, and what it takes to ensure success. In this edited excerpt, the authors outline what type of information you should include in the financials section of your business plan.Financial data is always at the back of the business plan, but that doesn’t mean it’s any less important than such up-front material as the description of the business concept and the management team. Astute investors look carefully at the charts, tables, formulas and spreadsheets in the financial section because they know this information is like the pulse, respiration rate and blood pressure in a human being—it shows the condition of the patient. In fact, you’ll find many potential investors taking a quick peak at the numbers before reading the plan.Financial statements come in threes: income statement, balance sheet, and cash flow statement. Taken together they provide an accurate picture of a company’s current value, plus its ability to pay its bills today and earn a profit going forward. This information is very important to business plan readers.You can typically gather information and use Excel or another financial program to create your spreadsheets. You'll also find them available in most business plan software; these programs also do the calculations.Income statement.An income statement shows whether you're making any money. It adds up all your revenue from sales and other sources, subtracts all your costs, and comes up with the net income figure, also known as the bottom line.

Income statements are called various names—profit and loss statement (P&L) and earnings statement are two common alternatives. They can get pretty complicated in their attempt to capture sources of income, such as interest, and expenses, such as depreciation. But the basic idea is pretty simple: If you subtract costs from income, what you have left is profit.To figure your income statement, you need to gather a bunch of numbers, including your gross revenue, which is made up of sales and any income from interest or sales of assets; your sales, general and administrative (SG&A) expenses; what you paid out in interest and dividends, if anything; and your corporate tax rate. If you have those, you’re ready to go.

If you’re a startup and don’t have any prior years’ figures to look at, look for statistics about other businesses within your industry. The most important question to ask is: What has been the experience of similar companies? If you know that car dealers across the nation have averaged 12 percent annual sales gains, that’s a good starting point for figuring your company’s projections.Balance sheet.If the income sheet shows what you’re earning, the balance sheet shows what you’re worth. A balance sheet can help an investor see that a company owns valuable assets that don’t show up on the income statement or that it may be profitable but is heavily in debt. It adds up everything your business owns, subtracts everything the business owes, and shows the difference as the net worth of the business.Actually, accountants put it differently and, of course, use different names. The things you own are called assets. The things you owe money on are called liabilities. And net worth is referred to as equity.A balance sheet shows your condition on a given date, usually the end of your fiscal year. Sometimes balance sheets are compared. That is, next to the figures for the end of the most recent year, you place the entries for the end of the prior period. This gives you a snapshot of how and where your financial position has changed.A balance sheet also places a value on the owner’s equity in the business. When you subtract liabilities from assets, what’s left is the value of the equity in the business owned by you and any partners. Tracking changes in this number will tell you whether you’re getting richer or poorer.Balance sheets can also be projected into the future, and the projections can serve as targets to aim for or benchmarks to compare against actual results. Balance sheets are affected by sales, too. If your accounts receivable go up or inventory increases, your balance sheet reflects this. And, of course, increases in cash show up on the balance sheet. So it’s important to look ahead to see how your balance sheet will appear given your sales forecast.Cash flow statement.The cash flow statement monitors the flow of cash over a period of time (a year, a quarter, a month) and shows you how much cash you have on hand at the moment.

The cash flow statement, also called the statement of changes in financial position, probes and analyzes changes that have occurred on the balance sheet. It’s different from the income statement, which describes sales and profits but doesn’t necessarily tell you where your cash came from or how it’s being used.A cash flow statement consists of two parts. One follows the flow of cash into and out of the company. The other shows how the funds were spent. The two parts are called, respectively, sources of funds and uses of funds. At the bottom is, naturally, the bottom line, called net changes in cash position. It shows whether you improved your cash position and by how much during the period.Other Financial InformationIf you’re seeking investors for your company, you’ll probably need to provide quite a bit more financial information than what is in the income statement, balance sheet and cash flow statements. For instance, a personal finance statement may be needed if you’re guaranteeing loans yourself. Applying business data to other ratios and formulas will yield important information on what your profit margin is and what level of sales it will take for you to reach profitability. Still other figures, such as the various ratios, will help predict whether you’ll be able to pay your bills for long. These bits of information are helpful to you as well as to investors, it should be noted. Understanding and, if possible, mastering them, will help you run your business more smoothly.

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