***Experience and Learning: The Guided Path to Perfection

You've heard the saying, "practice makes perfect." That's the central idea behind Trump University's educational mission, only we call it "learning by doing." Learning by doing, though, doesn't just mean practice (i.e. doing). It also means monitoring, gathering feedback, and adapting to what you learn. Learning by doing, then, actually means guided practice makes perfect.nnSome business practitioners boast 20 years of experience. But really, they might have had only one year of experience 20 times over. I know an owner of a paint and wallpaper store who complained about the failure of his business to make a big profit. This owner blamed his "cheapskate" customers, he blamed government taxes and regulations, and he blamed the weather. He blamed anything and anyone but himself.nnDuring the 22 years this small business owner struggled to survive, he never read a book on sales or marketing, never enrolled in any type of professional development course, never conducted a customer survey, and never shopped his competition to gain insight from their practices and operating procedures. Yet, whenever I suggested that he should try these or other methods to improve, he would respond with something like,"I've been in this business for years, ain't nobody going to teach me nothing I don't already know."nnThis owner erred in the worst way possible. He violated the cardinal rule of learning by doing. He failed to acknowledge his own ignorance. He failed to ask probing questions like:n

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• How can I improve?n
• Are there better ways to run this business?n
• How can I generate new ideas?n
• What am I doing that I should change?n
• How might I better serve my customers?n

nThis owner fooled himself into believing that "doing" alone would give him the ability and experience necessary to grow his business to the level he wanted. He was unwilling to understand that to learn by doing you must first admit imperfect knowledge and imperfect practice. Then you must experiment, measure results, and compare them against ideal standards and principles. You must consciously work to improve. Even if you achieve Nirvana today, you must prepare for change tomorrow. What worked in the past won't likely work in the same way in the future.nnnA Personal Odyssey of LearningnnI have owned rental properties since I was an undergraduate in college. I have consulted with Fortune 500 companies. I have written two dozen books. I have taught in the graduate business programs of top-ranked universities. Nevertheless, I am always trying to learn more. I read widely, attend seminars, speak with other professionals and, most importantly, I listen closely to my customers.nnFor example, if I lose a tenant, I want to learn why. If market vacancy rates weaken (or tighten), I want to learn why. I persistently look for ways to cut my properties' operating expenses, increase my rental rates, and offer my tenants a better value for the money they pay. Instead of blaming others for my weaknesses and shortcomings, I realize that by devoting attention to my ventures, I can consistently improve my performance - and so can everyone.nnI learned this lesson years back when I first became a college professor and was leasing many of my rental apartments and houses to college students. These students routinely complained that their landlords treated them poorly and offered less than desirable rental units. To me, these complaints signaled an opportunity.nnI discovered that most landlords not only ignored such complaints, but they firmly believed that the student tenants deserved what they got. "They will just tear the place up" was the common attitude that experience had supposedly taught these owners. So why worry about student-tenant complaints and protests? These owners had learned by doing, but they learned the wrong lesson - much to my benefit.nnI figured that if I listened more closely to the students' comments, they would tell me what they really wanted. In response, I could fashion a rental property that would "wow" my tenants. With a better, more competitive property, I would attract a higher quality tenant, and at the same time charge higher rents and have lower vacancies and lower turnover.nnThis strategy worked. My experimental apartment building soon established itself as one of the most desirable places for students to live. When residents did move, their units were nearly always filled with referrals. All in all, my changes boosted the value of the property and at the same time greatly reduced the time and effort spent managing that property.nnYou can achieve similar results with whatever business ventures you pursue. Just remember, experience often confirms our preconceived biases. Other property owners used their experience to justify treating their tenants poorly. My friend who owned the paint and wallpaper store used his experience to blame everyone but himself for his failure. You will always learn by doing, but what you learn depends greatly on the mindset you bring to the learning experience.nnSo I encourage you to open your mind, experiment, discover the best practices and principles and seek feedback. Then put what you learn into practice. In that way, you will not only learn by doing, you will learn to improve by doing, and that is your ultimate goal.nnnn

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nGary W. Eldred, PhD, has been involved in hundreds of real estate transactions as buyer, seller and consultant. He is author of many best-selling books on real estate. Dr. Eldred created The Real Estate Investor Training Program for Trump University.