Chi-Square Test With More Than 2 Categories

tableau chi square test

I have just enrolled in a Data Science course on Udemy  and I learned good stuff.

In this article, we will do a Chi-square test with more than 2 categories. We will use the A/B test « Country » which has 3 categories which corresponds to 3 countries : German, Spain and France. Select « Gender Actual » tab, make a copy with a right-click and select « Duplicate ».

tableau chi square test

Name the tab « Gender Actual (2) » by « Country Actual ».

tableau chi square test

In « Dimensions », move the variable « Geography » over « Gender » in « Columns » to replace « Gender » with « Geography ».

tableau chi square test

tableau chi square test

Here’s how to do an A/B statistical test when there are 3 categories. We’ll start with the classic method and then I’ll show you another way to do Chi-square test with any number of categories.

Let’s start with the classical method. In this case, there are 3 categories so we can’t use the online tool of the previous article. In the previous article we used an online tool with only 2 categories « Sample1 » and « Sample2 ». That’s why we’re going to use another online tool, click here  .

tableau chi square test

In this online tool, we can enter the values without using the total values. That is, we enter only the number of observations in each category. We simply need to enter the values that are on our A/B test. And I’m going to show you how to turn our A/B test into a table. In this way, it will be easier to enter the values in the online tool without making any mistakes.

Go to the « Show me » tool at the top right.

tableau chi square test

Click on « text tables »

tableau chi square test

tableau chi square test

Click on « Swap Rows ans Columns » button.

tableau chi square test

tableau chi square test

Cool, now you have a table arranged in exactly the same way as the online tool.

In the online tool, we will select 2 rows and 3 columns.

tableau chi square test

As we have 3 categories and 2 possible results, we enter our values exactly as in the table we just created on Tableau.

tableau chi square test

Perfect, our table is ready. You can click on the « Calculate » button.

tableau chi square test

tableau chi square test

As you can see, we observe the same thing as the other online tool. There is our indicator « p » value which is less than 5%. Which means there is a meaning.

tableau chi square test

This statistical significance means that these results are valid for the total number of the bank’s clients and not just for the sample of 10 000 clients. We observe similar differences with A/B test « Country » whose results are based solely on the sample of 10 000 clients. We can conclude that in the total number of the bank’s clients, it’s the clients in Germany who are more likely to leave the bank. This is how we do things cleanly.

You saw, this online tool limited by 5 by 5 tables so you can’t use this tool when you have 6 categories or more. But fortunately it’s possible to do Chi-square test with any number of categories. It’s a special method and for you to understand that, I’ll give you a theoretical explanation.

Here we have 3 countries : German, Spain and France.

tableau chi square test

What we’re trying to compare is the clients number leaving the bank in each of these countries.

tableau chi square test

With our basic A/B test based on a sample of 10 000 clients, we obtained 16% for France, 32% for Germany and 17% for Spain. Now the question is : « Do we observe the same results on the total clients number of the bank ? », it means : « In general, does the country have a significant effect on the clients number leaving bank ? ». Germany has the largest number of clients leaving the bank so the idea is : « Why would we need to compare the 3 countries at the same time ? ».

tableau chi square test

If we do an A/B test statistical test with Germany and France and we get a significant difference in the clients number leaving the bank between these 2 countries, then that would mean that in general, the country has a significant effect on the clients number who bank. Indeed, if we find by comparing Germany and France that the Germans are more likely to leave the bank than the French, we can consider that Spain will not change anything. Germans will always be more likely to leave the bank than the French. Maybe there will be a different relationship between Germany and Spain but there will always be a statistically significant difference between France and Germany with a larger number of clients leaving the bank in Germany than France.

Here is a way to confirm that this logic is true. There is a test and the participants of this test are German, Spanish and French. Imagine that this test was done without looking at what is happening in Spain. Now you get the result and you ask yourself the question : « Would the results changed if you added Spain ? ». The answer is « no » because there is no interdependence between Germany, Spain and France. That is, the decision to leave the bank in France and Germany doesn’t depend on Spain. And therefore, it’s quite correct to separate the categories by putting 1 aside to compare the 2 others. And as now we have 2 categories, we can do a Chi-square test with the online tool that we used in the previous article.

So let’s go back to our worksheet and put a country aside to compare only 2 countries. Select « Country » tab.

tableau chi square test

What we observe is that the difference between Spain and France is very small, so it wouldn’t be interesting to do a Chi-square test between Spain and France. It’s more interesting to do a Chi-square test between Germany and France and to prove that there is a statistically significant difference between these 2 countries. This will be enough to conclude that the country has a statistically significant impact on the clients number who leave the bank.

Selects « Country Actual » tab.

tableau chi square test

We will use the online tool of the previous article, click here  .

We will make a copy of « Country Actual » to have a bar chart with absolute values. Select « Country Actual », right-click and select « Duplicate ».

tableau chi square test

In « Show Me », select « horizontal bars ».

tableau chi square test

tableau chi square test

Removes « SUM (Number of Records )» from « Columns » and removes « Exited » and « Geography » from « Rows ».

tableau chi square test

tableau chi square test

In « Dimensions », move « Geography » in « Columns ».

tableau chi square test

tableau chi square test

In « Measures », move « Number of Records » to « Rows ».

tableau chi square test

tableau chi square test

In « Measures », move « SUM(Number of Records) » in « Label ».

tableau chi square test

tableau chi square test

In « Dimensions », move « Exited » in « Label ».

tableau chi square test

tableau chi square test

In « Dimensions », move « Exited » in « Colors ».

tableau chi square test

tableau chi square test

We also need total absolute values, which means the total number of men and women. There is a very fast way to get that. Right-click on the vertical axis and select « Add Reference Line ».

tableau chi square test

Then in « Value », click on the drop-down on the right and select « Sum » to have the total sum of the observations.

tableau chi square test

And in « Scope », you select « Per Cell » option to specify that you want the total sums for each category, male and female.

tableau chi square test

Now, we have the total sum at the top of the bars. We will modify labels to have the absolute values. In « Label », we will change « Computation » to « Value » and click on the « OK » button.

tableau chi square test

tableau chi square test

tableau chi square test

Here’s how to enter the data :

For « Sample1 » in #success, you enter 810 because there are 810 people who left the bank. For « Sample1 » in #trials, you enter 5014 because there are 5014 people in total.

For « Sample2 » in #success, you enter 814 because there are 814 people who left the bank. For « Sample2 » in #trials, you enter 2509 because there are 2509 people in total.

tableau chi square test

Here is the verdict : « Sample2 is more successful ». « Sample2 » corresponds to German’s clients and #success is :« yes, the client left the bank ». This verdict means that of all the clients from German are more likely to leave the bank than clients from France. And look, there is something important, it’s « p<0.001 ». This means that the « p » is strictly less than 0.001. As you can see, « p » value is very small, which concludes that the tests are statistically significant.

Ooh, there’s another thing I wanted to show you with the tab « age » with the 2 bar charts in parallel.

tableau chi square test

As you can see, there are many categories (more than 5) because each category corresponds to a 5-year ago group with clients of the bank aged from 15 to 90 years old. This is a lot of comparison but it would be a good exercise for you to find what are the 2 categories to compare that shows that there is a significant statistic difference.

I give you a hint, compare slices from 50 to 54 years old or from 35 to 39 years olds. In fact, you should compare all peer categories where you observe difference on this basic A/B test. Do a basic A/B test with absolutes values. Then do a Chi-square test to check if the difference is statistically significant, I mean, if the result is valid for the total number of bank’s clients.

This is a way to statistically validate the insights we see onTableau. You see, it’s not very difficult and it’s effective. Here is a way to find insights on Tableau and validate them.

Subscribe to my newsletter and share this article if you think it can help someone you know. Thank you.

-Steph

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Boost Your Charisma

charisma barack obama

What’s up ? This is THE stephane ANDRE ! I watched an Olivier Roland’s video  and I learned some good stuff.

To increase my charisma, I discovered a completely counterintuitive trick. This trick is a state of mind. This is a trick that Seth Godin shares in his book « Tribes » . In this book Seth Godin explains the importance of internet. Internet isn’t just about doing business with customers/prospects, but it’s a real tool for building a tribe or community.

The principles for building a tribe or community with internet are to share quality content and to clearly explain your values to bring together people who share the same values as you. Seth Godin says something very interesting about charisma, he says that most people think that yow have to have charisma to get the idea when it’s the opposite. The simple fact of having the idea gives charisma. It’s deep right ?

In everyday life

 

everyday

 

I’m sure you’ve seen this situation :

  • There is a person who loses consciousness on the sidewalk Quickly a person must take responsibility for the idea of caring for the person who has lost consciousness

  • There is a car accident. Quickly a person must take responsibility for the idea of dealing with traffic to secure the area.

In situation where there is no designated leader, a person must take the initiative, without permission, to take responsibility for the idea of managing the situation.

As you can see, it does give charisma to this person and the others will naturally accept him/her as a leader and listen his/her orders, until the situation returns to normal.

The question, I’m asking you is : « In the project that is important to you, could you take responsibility for the idea of taking care of your tribe or community that shares the same values as you and to do evolve the project ? ». Tell me your answer in the comments section.

Subscribe to my newsletter and share this article if you think it can help someone you know.

-Steph

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Validate Data Mining In Tableau With A Chi-Square Test

validate validation

I have just enrolled in a Data Science course on Udemy  and I learned good stuff.

In this article we will start using statistics. Don’t worry we’ll do something simple, we’ll use the Chi-square test in a basic way. There is a special section to learn how to do statistics at an advanced level.

I’ll explain why we’re going to learn how to use the Chi-square test. The results we have with theses 2 bar charts are good. We see on theses 2 bar charts that age has a significant impact on the rate of client leaving the bank. We also see in which age groups the clients leaves the bank the most and which age groups the clients leave the bank the least. With that we have good insights.

In the A/B test « Gender », we can see that there is a correlation between the male and female sex and the choice to leave the bank. But as I said before, this A/B test is basic. The results of a basic A/B test visually shows us what is probably happenning in reality but we aren’t 100% sure of these results. To validate these results, we need do to use statistical tests like Chi-square test.

Doing a report based on basic A/B test is very risky and you can have completely false insights. I don’t advise you to do it (unless you want to leave your job). It’s for this reason that using Chi-square will help us to have strong insights.

Chi-square will allow us to know if our results are statistically significant. Our results are based on a sample of 10 000 clients and Chi-square test will tell us if these results are due to chance effects or if these results can represent all the client of the bank.

For example in our A/B test « Gender », we observed that in our sample of 10 000 clients, women are more likely to leave the bank compared to men.

tableau data mining science chi square test a/b test

Now, we aren’t sure if the results of this sample represent the behavior of all the bank’s clients.

To use basic Chi-square test, we use an online tool. Click here  .

tableau data mining science chi square test a/b test

On internet, there are plenty of websites to do a Chi-square test but we’ll use this one so that you can understand how it works. To do a Chi-square test, we need to use absolute values and in our A/B test we have percentage.

Let’s go back to Tableau. We’ll create a new tab with a version of A/B test with absolute values. In this way, we keep the A/B test with the percentages. Do a right-click on the « Gender » tab and select « Duplicate ».

tableau data mining science chi square test a/b test

Name the new tab « Gender Actual » to specify that it’s absolute values.

tableau data mining science chi square test a/b test

To have the absolute values, move « Number of Records » in « Measures » to the « Marks » area and put it over top of « SUM(Number of Records ».

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Move « Number of Records » in « Measures » to « Rows » over « SUM(Number of Records ».

tableau data mining science chi square test a/b test

Cool, we have our absolute values.

tableau data mining science chi square test a/b test

We also need total absolute values, which means the total number of men and women. There is a very fast way to get that. Right-click on the vertical axis and select « Add Reference Line ».

tableau data mining science chi square test a/b test

Then in « Value », click on the drop-down on the right and select « Sum » to have the total sum of the observations.

tableau data mining science chi square test a/b test

And in « Scope », you select « Per Cell » option to specify that you want the total sums for each category, male and female.

tableau data mining science chi square test a/b test

Now, we have the total sum at the top of the bars. We will modify labels to have the absolute values. In « Label », we will change « Computation » to « Value » and click on the « OK » button.

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Perfect, we have the total amount of observation at the top of each bar : 4543 women and 5457 men. We have what we need to use our online tool.

tableau data mining science chi square test a/b test

OK, I’ll explain how this tool works. « Sample1 » and « Sample2 » correspond to the independent variable « Gender ». You choose in which order you enter the data, « Sample1 » for men or the opposite. In our case, we use « Sample1 » for women and « Sample2 » for men.

« #success » corresponds to the result Y=1, which means in our case « yes, the client left the bank ».

« #trials » is the total number of observations, which means the total number of women in « Sample1 » and the total number of men « Sample2 ».

That’s how you enter the data :

  • For « Sample1 » in #success, you enter 1139 because there are 1139 women who left the bank. For « Sample1 » in #trials, you enter 4543 because there are 4543 women in total.

 

  • For « Sample2 » in #success, you enter 898 because there are 898 men who left the bank. For « Sample2 » in #trials, you enter 5457 because there are 5457 men in total.

tableau data mining science chi square test a/b test

Here is the verdict : « Sample1 is more successful ». « Sample1 » corresponds to women and #success is :« yes, the client left the bank ». This verdict means that of all the bank’s client, women are more likely to leave the bank than men. And look, there is something important, it’s « p<0.001 ». This means that the « p » is strictly less than 0.001.

tableau data mining science chi square test a/b test

« p » is the value that indicates whether an independent variable has a statistically significant effect on a dependent variable. In our case, the independent variable is « Gender » and the dependent variable is « Exited », which is : « yes, the client left the bank ». So « p » is strictly less than 0.001, which means that the independent variable « Gender » has a statistically significant effect on the dependent variable « Exited ». This shows us that out of the total number of bank’s clients, women are more likely to leave the bank than men.

This is how we use Chi-square test with this online tool. This is the same principle on all online tools that you can find on Google or DuckDuckGo . You can repeat these instructions that I gave you with other tools, you will get the same results.

It’s cool with the Chi-square we validated the A/B test and to specify that this A/B test is validated, we’ll color the tab in green.

Right-click on the tab, select « Color » and select « Green ».

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Perfect, now we’ll validate another A/B test. Selects « HasCreditCard » tab.

tableau data mining science chi square test a/b test

We’re going to create an A/B test « HasCreditCard » only with absolute values. To save time, right-click on « Gender Actual » tab and select « Duplicate ».

tableau data mining science chi square test a/b test

We’ll remove the green color on the tab « Gender Actual (2) ». Right-click on the tab and select « Color » and « None ».

tableau data mining science chi square test a/b test

You rename the tab « HasCreditCard Actual ».

tableau data mining science chi square test a/b test

Move the variable « HasCrCard » over « Gender » in « Columns ».

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Excellent, everything is ready to do a Chi-square test. We’ll remove « Exited » labels to better see the absolutes values. Make a click and drag out.

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Perfect, let’s go back to our online tool. In this case, « Sample1 » is « no », which means client who don’t have credit card and « Sample2 » for « yes », which means clients who have a credit card.

That’s how you enter the data :

  • For « Sample1 » in #success, you enter 613 because there are 613 clients who left the bank. For « Sample1 » in #trials, you enter 2945 because there are 2945 clients who don’t have a credit card.
  • For « Sample2 » in #success, you enter 1424 because there are 1424 clients who left the bank. For « Sample2 » in #trials, you enter 7055 because there are 7055 clients who have a credit card.

tableau data mining science chi square test a/b test

Let’s look at the verdict, it’s « No significant difference ». « p » value is very high, it’s above 5%. This confirms that the independent variable « HasCrCard » has no statistically significant effect on the dependent variable « Exited ». That was the conclusion we had made when we had done the A/B test with percentages.

We had seen that there was 21% of « Exited » (clients who left the bank) in the category « no » and 20% in the category « yes ». With these results we concluded that most likely the variable « HasCrCard » had no impact on the rate of clients who left the bank. Chi-square test confirms our conclusion and we can put the tab « HasCrCard » in green to say that it’s OK.

Right-click on the tab « HasCreditCard » => « Color » => « Green ».

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Excellent, now, you can do a statistical A/B test with 2 categories. Soon, we will do statistical A/B tests with more than 2 categories.

Share this article if you think it can help someone you know. Thank you.

-Steph

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An Extraordinary Tool To Solve All Your Problems

tool box

What’s up ? This is THE stephane ANDRE ! I watched an Olivier Roland’s video  and I learned some good stuff.

Nature has given an extraordinary tool to every human being. This tool has different performance depending on the people but it’s the best for solving problems compared to the tools invented by humans.

This tool is our brain. This tool is better than a computer because a computer needs a human to work. For now, artificial intelligence has lower performance than the human brain.

Unfortunately, many of us don’t use our brains to find solutions and solve problems that are important to us. Many of us consume a lot of distractions. The question is : « Are we asking enough questions to our brain to find solution ? ». If you don’t give problems to your brain, your brain will be less and less efficient. It’s the same principle for your body.

If you give junk food to your body all day long, you will be fat, bitter, you will not have any more energy, you will not have any more libido. Everything that will comes out of you brain will be diminished in quality and quantity. If you will give healthy food to your body all day long, you will be slim, you will have more energy, you will have a better libido. Everything that comes out of your brain will be increased in quality and quantity.

Training your brain

training brain

To improve the brain to solve problems, it’s necessary to ask questions. A question is the interface between our brain and reality. This is what will put the brain in mode : « search for solutions ». By asking questions, you will look for different angles of approach to deal with the problem. The better the question and the better the solution to the reality of the world.

To have a good quality of question, it’s necessary to learn to educate oneself with books, trainings, meeting people who share their experiences, etc. Realize that you have to dedicate time to solve problems, allows you to organize your days. It’s like dedicating a few hours in your day to play sports. There is a method that I advise you to test, it’s to have a diary.

Attention, it’s a special diary because you’ll ask yourself questions. The first thing is that you’ll tell events of your life and this will allow you to better understand them and better understand yourself. And the second thing is that you’re going to ask yourself questions. There will be general questions like: «  How can I become happier ? ». And more specific questions like : « How can I become happier with the 80/20’s law (Pareto’s principle)  from today and see a measurable result next week ? ».

With questions, you put your brain in mode : « search for solutions » and you find several ideas to test to solve the problem. It’s the human process to find a solution since first hominids. Imagine, millions years ago, first hominids already found solutions because of a constraint. Imagine this scene, a hominid finds an animal with a carapace that is dead. The hominid is hungry and seeing the animal dead, he’s even more hungry. He asks himself this question : « How can I eat this animal that I can’t eat ? ». His brain goes into mode : « search for solutions ». After a few minutes, he remembers that by tapping a stone on something, the stone become sharper. After several tests, he manages to cut the animal with a carapace that dead to eat it.

Virtuous circle

virtuous circle

This human process is a virtuous circle. You ask yourself questions to find solutions to problems. These solutions create other constraints that lead to others problems. So you have to ask yourself other questions to find a solutions. To evolve, we need challenges and there are always challenges in the world. Do you realize that millions of years ago, first hominids created tools with stones and wood and today we have internet technology ? With internet, people from distant country can read my blog’s articles 24/24 7/7, it’s incredible.

Among these questions, there will always be questions that will have different answers depending on what the situation you’re in your life. For example the question : « How can I become happier ? ». When you’re single, you have a solution. When you’re in a relationship, you have another solution and when you have children, you have another different solution. Solutions are influenced by different variants in your life and it’s important to ask yourself this question throughout your life.

Reserve some time in you day to ask yourself questions to solve problems. It’s a kind of physical activity for your brain. It’s a good process to become a better version of yourself. But beware, there are solutions that you will find quickly and others, it will be necessary to work on for months or years to find the solution.

Subscribe to my newsletter and share this article if you think it can help someone you know. Thank you.

-Steph

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Be A Curious Entrepreneur To Boost Sales

be curious

I watched an Olivier Roland’s video  and I learned good stuff.

I read an article about Otzi, a man who died about 3255 or 3300 BCE. It’s been over 5000 years. Otzi is the name given to a frozen and dehydrated human being discovered on 19 September 1991 at an altitude of 3210 meters nears Hauslabjoch on the border between Austria and Italy. Otzi discovered with his axe in wooden handle and a copper blade. But why a copper blade because copper is soft ?

Apart from gold, the first metal used by men to make tools was cooper. It’s just because at the time, they didn’t know that by adding tin, it made a stronger alloy, bronze.

Now, it seems obvious to people with knowledge of metallurgy but for a long time nobody knew this alloy.

What I mean is that we’re all ignorant of something. This may be something that a small minority of the population knows or something everyone knows. I’m talking about it in a broad sense, it goes to confidential discoveries to widespread discoveries. We’re ignorant of many of these discoveries, no matter how popular these discoveries are.

Here is an example. Since 1977, it has been scientifically proven that when you make a request to a person (no matter the demand), if you touch the forearm or the shoulder of this person, you can even double your chance that the person tells you « yes ». There are still plenty of people who don’t know this and there are also people who know that but don’t use it. When you become aware of this, you realize that staying alone in you corner doesn’t help you to know the discoveries that there are in the world. And over time, you’ll become the last person to know what everyone starts to learn.

Stay in touch with innovations/discoveries

innovation discovery

What is important to understand for an entrepreneur is that it’s a duty, a philosophy and a way of life to always be in touch with innovations in the scientific field and also in other fields.

Today, there are many techniques or methods that have been used and proven in thousands of sectors to sell effectively on internet. What I find amazing is that there are still a lot of entrepreneurs who don’t know that selling their products on internet is possible. It’s almost a malpractice of theirs because they cut themselves off from an enormous potential for growth.

We all know people who have recently learned things that everyone knew. We have already discovered something and realize that everyone already knew that (or almost).

What is necessary for you to be successful in the long term and build your legacy is that you need to be constantly on a process of meeting people in your field and outside of your field to learn all the time from new things. Which means that you have to read books, follow trainings, follow Youtube educational channel. You also have to go to place to meet people who inspire you and people who motivate you.

Think about it : « If you’re always in a room where you’re the smartest person, you’re in the wrong room ». It may work for a while, but soon you will not evolve and during this time, the world is moving very fast. Be part of the people who take a few steps forward to learn and execute new things and let others stand-still.

Share this article if you think it can help someone you know. Thank you .

-Steph

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Work Effectively And Earn More (Part1)

work effectively

I watched an Olivier Roland’s video  and I learned good stuff.

Everyone wants to work more efficiently to save time and make more money. There are 2 books to learn how to do this and I’m going to do a synthesis of 2. Maybe you already know theses 2 books, it’s « 4 Hours Workweek  » by Tim Ferriss  and « The One Minute Millionaire » by Mark Victor and Robert Allen.

Before you start, it’s important that you know that there is a special relationship between time and money. The idea is to better manage your time in your day to make your money work for you and make more money. There are several actions to put in place to do this and these actions based on 3 laws :

  • Leverage – Leverage gives you the speed to reach your goals faster. With a lever, you can control several elements. There are 5 types of leverage in 5 forms. We’ll see this in detail.

  • Pareto’s law.

  • Parkinson’s law

Lever

lever effect leverage

Let’s start with the leverage and its different points of support. There is a very interesting quote from Archimedes :

« Give me a place to stand, and a lever long enough and I will move the world »

Leverage allows you to reach your financial goals more easily and quickly. The higher the fulcrum is, the higher you can go up and far.

5 points of support

Money from others

Very useful in the real estate because the money of the banks and the tenant can allow you to have an additional income and a heritage. This heritage is largely financed by the money of others.

Skills of others

By meeting professionals who have more experience than you and mentors on your professional field, you can follow their examples. This allow you to access years of knowledge in a very short time, and avoid making mistakes that can cost you a lot of money and waste a lot of time.

Ideas of others

Find a partner who is willing to share ideas. For example to create your business instead of reinventing the wheel, you can join a franchise network to use and implement a business model that has been proven.

Time of others

Use the skills of someone who has more experience than you, by this way you can save. Delegate tasks.

Work of others

Support a team that is capable to manage things for you without you need to give last minutes instructions. Create a team with a list of instructions so that they are as autonomous as possible.

5 forms of support points

 

Mentors

Mentors are an incredible source of information. Select the people who inspire you from the people who have succeeded in the field you want to master.

Team

It’s known to many we can accomplish more than alone. A team makes it possible to work in synergy and to find solutions more quickly. Find people who have the same values as you and who have complementary skills.

One of the best example of a successful team is the team Steve Wozniak and Steve Jobs who together created Apple. Steve Wozniak is a computer genius, he created the first Apple computer, the Apple 1 and he largely created the Apple 2 that made the success of Apple. Steve Wozniak is a very nice person but at the time, he didn’t have the skills to sell these computers. Steve Jobs was a sales genius but he didn’t have the skills to create these computers.

Steve Wozniak and Steve Jobs separately have never been able to create something as impressive as Apple, the association of these 2 people who shared the same values and the desire to offer people computers easier to use have marked the history of computer with Apple.

Networks

The more professional relationships you have, the greater the leverage will be. Grow your network in the areas where you want to share and work.

Skills and tools

Having essential tools to reach the goal and mastering the operation of theses tools increase success. Skills to master are the power of persuasion, rhetoric and humor.

Systems

Using a good system increases the chances of success. To make money, there are millions of systems (there are so many on internet). The perfect system has 5 characteristics :

  1. No need to liquidity

  2. No risk or little

  3. Require no time

  4. Require no management

  5. Require little effort

The truth is that is very, very, very difficult to find an investment system that has these 5 characteristics, but you have to try to get as close as possible to work less and earn more money.

Pareto’s law

pareto law 20 80

Parkinson’s law or the 20/80’s law discovered by the economist and sociologist Vilfredo Pareto. This principle explains that 20% of the countries of the world share 80% of the wealth and that within these countries 20% of the people share 80% of the wealth. Here is the basis of this principle : « 80% of effects come from 20% of the causes », which means that a minimum of causes create a maximum of effects. Always try to identify in your actions or in your company, the 20% of actions which bring 80% of results.

Parkinson’s law

parkinson law time effort

Parkinson’s law discovered by historian and essayist Cyril Northcote Parkinson. This principle explain that the work extends so as to occupy the time available for the completion of a task. For example, if you put 2 hours to do a task that can be done in 1 hour, you still go for 2 hours. To have more time, we must force ourselves to have less. The basis of this principle is to do a task at 50% or 75% of the recommended time to do it.

In this section, we saw leverage, Pareto’s law and Parkinson’s law. In the 2nd part, we’ll see the 5 actions to be effective and the 4 actions to make more money.

Share this article if you think it can help someone you know. Thank you.

-Steph

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Business Ideas From Abroad

world map drawing

I watched an Oliver Roland’s video  and I learned good stuff.

It’s very interesting to be part of a group of entrepreneurs (mastermind or other) to see what they do in your country but also internationally. Being part of a group of entrepreneurs makes it possible to share good methods/techniques.

There is an extraordinary rewarding to be part of an entreprenarial group because there are people from all over the world. It’s true that often half of the people come from English speaking countries (United States, United Kingdom, Australia, Canada ) but there are many people from different continents and that is a phenomenal force.

It’s a bit complicated when you start your company and you’re in an international business group, but it’s interesting to know what’s happening in your industry in another country. To start, you can be part of a entrepreneurs group who speak the same language as you but who live in others cities and other countries.

Once you master a foreign languange, you may be interested in seeing what is happenig in other countries.

Case study

Imagine that you have a turtle shop. You sell turtles, turtle accessories and you have a turtle blog. It’s interesting to see what happens in English speaking or Spanish speaking countries. Tu vas sur Google.com (United States verision) , Google.ca (Canada version), Google.co.uk (United Kingdom version ), Google.com.mx (Mexico version), Google.com.ar (Argentina version), Google.com.co (Colombia version). You write keywords related to your professional field and you look at websites,forums, social media. You look at what competitors are doing, but in others areas.

Language

language diffrent language foreign

Despite the incredible progress of Google Translate or other translation tools, markets are very isolated. The majority of people are interested only in their own market and their own language. This is a shame because it means that good methods will be used in one country and these good methods will be completely hallucinating and innovative for another country. And because of that, there is a loss of knowledge because there is no exchange between countries, there is no transfer of knowledge.

We entrepreneurs, we are not artists. There is no point in saying : « I’ll be the first to invent the wheel ! ». Once the wheel has been invented, it’s done and you can’t do anything. On the other hand, you can bring the wheel in your country and improve the wheel to find other use with. There is no shame in seeing good ideas in other countries and bringing them to your country. It allows you to create opportunities.

It’s true that the first interesting market to see is United States. Often this country is 4-5 years ahead of other countries in several different areas. But beware, new countries that are very dynamic have interesting innovation like Bresil (Google.com.br)  or several countries in Africa like Nigeria (https://www.google.com.ng ), Angola (https://www.google.pt ), Algeria, South Africa (https://www.googl.co.za ) and Asia like China (a tool to translate Baidu in english => http://www.baiduinenglish.com ), Singapore (https://www.google.com.sg ), South Korea (https://www.google.co.kr ).

What I want to tell you is that there is a lot to learn from other countries in the world. You need do be curious and to meet entrepreneurs from other countries with an exchange of ideas or innovations to create opportunities.

Share this article if you think it can help someone you know. Thank you.

-Steph

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