MARCH

2012
The Zigzag Principle
The Goal-Setting Strategy That Will Revolutionize Your Business and Your Life
by Rich Christiansen

The Road to Success

How to Reach Your Destination by
Taking Deliberate Detours
QUICK OVERVIEW
Entrepreneurs often fail more times than they succeed. Author Rich Christiansen
says his businesses failed, on average, two times out of three. That is, until he
carefully analyzed his successes. McGraw-Hill
In The Zigzag Principle, Christiansen draws upon his experiences and explains why © 2012, Mountain Grabbers LLC
deliberately altering your course at certain stages of growth actually enhances your ISBN: 9780071774581
256 pages; $20
chances of success in the long run. He provides readers with a step-by-step guide,
replete with actual examples, to lead them through the principles he sets forth. He
also candidly shares his mistakes and failures, alerting readers to pitfalls and obstacles
that often appear along the road to success.
After consciously applying The Zigzag Principle, Christiansen’s own success rate
SUCCESS Points
has increased dramatically. Now, four out of five of his business ventures have In this book you’ll
learn why:
developed into multimillion-dollar enterprises. The insights he shares can help other
entrepreneurs increase their chances of success as well.
• Directional changes are
needed at various stages of
APPLY AND ACHIEVE your company’s growth, and
We are often inclined to charge straight toward our goals. In so doing, we how to make them
may deplete our resources too rapidly as well as run roughshod over others. Our • Your values serve as your
chances of crashing and burning are much greater, and we may lose the love and foundation for everything
respect of those who mean the most to us. you do
Christiansen advocates putting your foundational elements in place before you
begin your journey. Not only do they provide the footing for your success, but • Your relationships are
they also give intention to your zigs and zags. Then, as you reach various points in one of your most valuable
resources
the development of your business, you alter your course accordingly. If you fail to
make these necessary adjustments, it will be much more difficult, if not impossible, • Rewards play an important
to take your business on to the next level. part in both your well-being
Zigzagging is a deliberate and methodical process. It allows you to attain smaller and that of your company
goals first, and then periodically observe where you are so that you can make the

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 The Zigzag Principle

needed corrections and modifications to your course. While the that my most significant accomplishments—whether working
going is often slower, you are much more likely to successfully for someone or for myself—did not come when I charged
reach your goal. directly toward my goal. Rather, they came when I zigged and
zagged my way to success.

N ot long ago, I took my 14-year-old son skiing

for only his third time. In getting off the lift,
we accidentally took a wrong turn and ended
up with nowhere to go but down a ridiculously
steep, black diamond run. As we stood at the top of this cliff,
this inexperienced skier looked down in sheer horror and
I can honestly say that, in most
instances, I failed because I
tried to go straight for my goal
and then ran out of gas before I
exclaimed: “I am going to die!” hit profitability.
In an attempt to calm his understandable fears, I explained
that he didn’t need to head straight down the mountainside, that
even an expert skier would survey the drop and decide to zigzag
down the steep slope. I instructed him not to look at the bottom I realized that the diversions and detours I had often found so
of the run, but to focus on skiing to a point across the hill and, frustrating had actually created more stable and solid businesses.
once there, to turn and ski back across the slope to another On the other hand—and without exception—each time I had
preselected point. raced directly at a target with high velocity, I had failed.
As a concerned father, I knew my son’s chances of getting to This realization came to me several years ago as a business
the bottom without breaking his leg or neck were far greater partner, Ron Porter, and I were writing a book titled Bootstrap
with this approach than if he had just barreled straight down Business: A Step-by-Step Business Survival Guide. As we wrote this
the mountain. No question, it took us a while to make our way book, we decided to start a business in order to test, prove, and
down, but as he stood at the bottom of the run and looked back illustrate for our readers the principles we were writing about.
up to where he had started, he realized the full import of what We each anted up $2,500 for a staggering total of $5,000 in
he had accomplished—and the lesson he had learned. startup capital. We were out to prove that we could bootstrap a
When I graduated some 20 years ago with my MBA, my business and turn it into at least a million-dollar asset.
mindset was the exact opposite of what I had shared with my Originally, in keeping with the mindset I came out of business
son. I was certain I could excel in business by sheer force and school with, we had outlined our starting point and our end
determination. I truly believed that my success would come by goal. It was essentially a straight line. Somewhere along that
setting my sights on a goal and then going straight for it. With line, however, we realized we needed a million to a million and
that as my strategy, I plowed toward my goals no matter what a half dollars to hit our goal. Seeing that our original course was
was in my way. In fact, I plowed through things that had no just not possible, we started drawing a sequential series of steps
business being plowed through. that needed to occur.
While working in corporate America after graduating from As we stepped back, we realized there was a big “Z” on the
business school, I experienced some significant successes. And, board. More specifically, there were three distinct targets we
since striking out on my own, I have founded or co-founded needed to hit in order to meet our first series of goals. First, we
32 businesses. Of these ventures, 11 were ugly failures, 8 had to get to cash. Second, we had to add resources. And, third,
have enjoyed moderate success, 2 are in progress, and 11 have we needed to scale our business. Each of these steps required
become multimillion-dollar wins. It took me a long time to be an entirely different mindset from the one before. This was my
willing to pause at the bottom of the mountain, look back up to moment of full clarity as I realized that—just like skiing down a
the top, and see the epiphany that had been eluding me. I saw ski slope—getting to our goals requires a deliberate set of zigzags.

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 The Zigzag Principle

ASSESSING RESOURCES—
The Need for Pacing WHAT’S IN YOUR POCKET?
Most people assume we need to have money to succeed in
From my own experiences, I have found that when
people head directly toward their goal without zigzagging,
business and to reach our goals in life. That view develops a
one of three things will occur: straight-line mentality as we undertake whatever we have set
our sights on. Success is actually the result of identifying and
1. They never do it. There are lots of people who talk
maximizing a couple of foundational resources that have nothing
about their dream, but before they’ve taken their first
step, their knees shake and wobble. They don’t dare to do with our traditional view of “capital” and have everything
take the risk needed to progress toward their goal. I’ve to do with zigzagging toward our intended outcome.
decided that subconsciously they realize there is a Yes, at some point money is often needed if we are to
chance they may fail, so they do not even start. reach our goals. But that form of capital will grow out of the
2. The second group of people race toward their goal full knowledge and the relationships we have, and the pace at which
speed ahead, and when they get halfway there, they it grows will be influenced in large measure by our passion. If
run out of resources and fail. you need proof of this point, consider the businesses that got
3. The third group runs straight toward their goal, but their start in a college dorm room or garage: Apple, Facebook,
by the time they get there, the target has completely Microsoft, Hewlett-Packard, and Google. The founders of each
moved and their great idea is now a lost opportunity. of these companies all began with little more than their smarts
In many cases, if they had taken their blinders off and and their passion to achieve their goals, combined with their
looked from side to side occasionally, they would have networks of friends.
seen the need to adjust their course.
Building relationships is an important and never-ending
opportunity that will set the foundation for your zigzagging.
It will open more doors for you than you could ever imagine.
I would recommend that you remember two important
Since this realization, it has been interesting for me to
principles: First, do the right things for the right reasons.
see that before I defi ned the steps, I would succeed one out
Second, don’t ever use people. Have a genuine concern for
of three times. But, in looking back, I’ve realized I was
others and seek ways to serve those around you.
zigzagging, just without any real structure or discipline. Ever
since my moment of clarity, I have been consciously applying
the formal structure of the Zigzag Principle, and my success BEACONS IN THE FOG
rate has dramatically increased. My partners and I have now Despite my natural inclination to always want to know
had four out of five successes. exactly where I’m headed, I’ve learned that our lives inevitably
I have an associate who has been extremely successful at involve some wandering in the fog. It is one thing to wander
racing directly toward his financial goals. At the point we aimlessly. It’s a very different matter to identify and set our
became acquainted, this man was well respected, a pleasure to sights on what I call a big, audacious goal, which becomes our
be around, and an integral part of the community. Soon after, “beacon in the fog.” With that beacon firmly in mind, we are far
though, he became obsessed with becoming wealthy. better equipped to head into the darkness, knowing we may not
Now, when his name is spoken in public, people recoil. always be able to see where we’re going, but still know where
Why? Because he ran roughshod over anyone and anything that we’re headed.
attempted to divert him from his goal. The end victory proved Every once in a while we hit a smaller goal, which provides
hollow and meaningless as he left behind the important things of a break in the fog that lets us catch sight of our beacon before
life that he should have enjoyed. I would contend that he could we take those next steps into the darkness. The process is
have been successful in all aspects of his life had he traversed his more messy and risky than it is clean, pristine, planned, and
way down the mountain instead. calculated. But if you have a solid, clearly defined beacon in the

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fog to move toward—and a foundation to travel on—then you grant, a small business loan, or help from family, it’s easy to
will arrive at your destination. bypass this first step. But at some point the wells of easy cash will
dry up, and you’ll find yourself at a day of reckoning where if you
don’t have real cash coming in, you’re going to be stopped dead in
Money cannot build intelligence, your tracks.
When I am starting a business, the first question I ask myself is,
relationships, or passion. But “What skills do I have that can get me to profitability the fastest?”
intelligence, relationships, and The answer doesn’t have to be perfectly aligned with your beacon
in the fog, just something that is close enough and is an inch or
passion can always yield money. two up from where you currently are.
The 80/20 Rule
Many people fail at this stage because they try to be great and
VALUES—A FIRM FOUNDATION have everything perfect and buttoned up. You need to think,
instead, about the 80/20 rule. In general, 20 percent of the effort
Any organization that is going to be successful must have a set
yields 80 percent of the results. The key to success is not to do
of values to work from; otherwise, it will end up wandering into
anything that isn’t geared toward the 80 percent success ratio.
the weeds. Values go well beyond what we may typically think
You’re not striving for perfection. You’re striving for profitability.
of when we hear that word. They are the infrastructure you are
Fail Efficiently
going to use as you build toward your goal. Values include the
Failing efficiently means that unless you hit profitability in
behavior you are going to exhibit, the culture you want to create,
whatever time you’ve allocated, you are done! You need to
and the rules you will follow. Identifying your values, based on
stop. If you do, you’ve failed efficiently and life goes on. If you
your purposes and objectives, is essential so you can clearly define
aren’t willing to stop, you will fail at a level that may have
where you’re headed with your venture.
devastating consequences.
After you have established your values, do not let anyone
into your intimate circle that does not fit with your values.
Of course, it’s naive to think that you will never have to deal
with anyone who doesn’t share exactly the same values, but
Remember two important
I’m talking about your inside circle or trust relationships. That principles: First, do the right
means your important hires, your friends, your partnerships.
These values help you surround yourself with people who align
things for the right reasons.
closely with you. Second, don’t ever use people.

ZIG NUMBER 1—DRIVE TO ZAG NUMBER 2—ADDING

PROFITABILITY PROCESSES AND RESOURCES
The principle of driving toward profitability has application in Once you have enough cash from the first zig, you can use it
all aspects of our lives, whether we’re bootstrapping a business, to add those people, equipment, and other resources that you
building a family, or overseeing a multimillion-dollar enterprise. need. A key reason many people have a hard time doing this is
While it’s true that money can’t buy happiness, being broke can they have become accustomed to micromanaging every aspect of
sure cause a lot of headaches. their business. As hard as it can be to let go of control, as you hire
Your first zig always needs to take you toward profitability. the right people to fill in the gaps of knowledge or skill that you
Profitability means you’re able to pay all of your bills and have don’t have, and then as you help them learn your processes, your
enough cash to move forward with your plans. Given the ease company will begin to reach its full potential. In zag number 2,
of finding money, whether it’s from a credit card, a government you also have to document the processes that led to your initial

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 The
BookZigzag
Title Principle

BOUNDARIES AND GUARDRAILS

Staying Out of the Weeds When you are beginning to head toward your beacon in the
fog, you want to concentrate on three zigs and zags at a time. That
Weeds are diversions, inefficiencies, and even short-
will keep you focused and under control. To help you with that,
term successes that distract you from the course you have
set for yourself. Setting up guardrails will help keep you
think in terms of devoting 65 percent of your time and resources
out of the weeds and are just as important as establishing on zig number 1 (driving to profitability), with 25 percent spent
the values that serve as your road map. They are very on planning and preparing for zag number 2 (adding resources
personal and will differ according to your circumstances and processes once you get to cash). The final 10 percent of your
and objectives. time and resources should be spent planning how you want to
It’s important to give careful, specific thought to your scale your undertaking in zig number 3 (creating scale).
guardrails now, rather than attempting to put them in place
when you’re in the middle of heading over the cliff. Here
are a few of mine:
Do not let anyone into your intimate
• I will not jeopardize the financial stability of my home
or family or mortgage my house for my business. circle that does not fit with your
• I will be very careful in taking venture capital. I want to values.
retain ownership in my companies.
• I must control the finances of my business.
Once you have hit zig number 1 and your business is profitable,
• I will not sign personal guarantees on a business I do you need to turn and head toward zag number 2. It’s easy, once
not personally control. you have cash coming in, to think you can skip making the turn.
• I will not get involved in a business that goes against But if you just stay in zig number 1, you may miss out on the
my personal moral values. dreams and goals defined as your true beacon in the fog. (And
• I will not work with people I do not enjoy. Whether it is remember, cash alone is not a beacon worth pursuing.)
a customer, a vendor, or an employee, life is too short Now you should spend about 65 percent of your time and
to work with miserable people. energy on zag number 2, with 25 percent of your time spent on
planning and preparing for zig number 3. Again, if you do not
make this next turn, you may find yourself with a lot of resources,
but never hitting that big goal. The last 10 percent of your time
and efforts can then go toward setting another series of zigs that
success. You need to put these into bite-sized processes that other will help you get even closer to your beacon in the fog.
people can follow. It will probably take you more than three zigs and zags to get
to your final beacon in the fog, but only look out at three at one
time. As you complete each goal, take a minute to celebrate, but
ZIG NUMBER 3—ADDING SCALE then climb a tree and look out above the fog toward your beacon,
In zig number 3, you need to figure out a model that you can making certain you are still on course. Then set another zig that
replicate quickly and get your product out to the masses. This is will lead you in the direction you need to go.
the “scaling it” part. Zig number 3 requires yet another shift in
mind-set. In zig number 1 you are doing everything, and you are
working hard. In zag number 2, you become the head cheerleader,
and you are defining processes. Zig number 3 requires deliberate
planning. It is very cerebral. It is the academic part. It’s a shift that
is hard for many people to go through.

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 The
BookZigzag
Title Principle

ACTION STEPS
Get more out of this SUCCESS Book
Summary by applying what you’ve learned
to your life. Here are a few thoughts and
questions to get you started.
1. Your financial capital will grow from using your mental
and relationship capital. Take the time to assess both:
your mental capital, meaning your knowledge, skills,
talents and passions; and your relationship capital,
meaning the quality of your relationships with friends and
associates. What resources do you have right now and
where can they take you?

2. Identify your destination. Where do you want to go? What is

your beacon in the fog that helps you keep your bearings?
About the Author
3. What are your values? Articulate them and write them Rich Christiansen spent 20 years in the
down. They will help you clearly define where you’re headed
technology industry, where he became an
with your venture.
accomplished executive and market innovator.
4. What boundaries do you refuse to cross? These should During his time in corporate America, he worked with
always be aligned with your values. They form your
guardrails to keep you from crashing into a tree or going Novell, ran the PC division of Mitsubishi Electronics
over a cliff. and became the general manager at About.com. To
date, Christiansen has founded or co-founded 32
5. Realize that you don’t have to bet the farm or give away
your soul in order to succeed as an entrepreneur. Examine businesses, all with very little startup capital.
your thinking so you can avoid the all-or-nothing trap. While writing his first book, Bootstrap Business:
A Step-by-Step Business Survival Guide, with his
6. Rewards keep us motivated. How can you use small
rewards during the day to keep you going? Be sure to plan associate and co-author, Ron Porter, the Zigzag
intermediate rewards as you achieve each zig or zag, along Principle was discovered and formally defined. Rich
with a celebratory reward for when you achieve your long-
has gone on to apply this principle to every facet of
term goals.
his life in order to optimize his chances for success
7. Passion provides the fuel to sustain your efforts. What are and minimize failures.
you passionate about? Does your passion dovetail with your
Today Rich lives in the mountains of Utah with
goals? If not, you may run out of steam before reaching
your goal. his family. He is passionate about educating youth in
Third World countries and has set a personal goal to
help educate 1,000 young men and women before he
Recommended Reading
turns 50.
If you enjoyed this summary of The ZigZag Principle,
you may also want to check out:

Bootstrap Business by Rich Christiansen and Ron E. Porter

© 2012 SUCCESS Media. All rights reserved. Materials may not be reproduced in whole or in part
EntreLeadership by Dave Ramsey in any form without prior written permission. Published by SUCCESS Media, 200 Swisher Rd.,
Lake Dallas, TX 75065, USA. SUCCESS.com.
Summarized by permission of the publisher, McGraw-Hill. The Zigzag Principle: The Goal-Setting
The Lean Startup by Eric Ries Strategy That Will Revolutionize Your Business and Your Life by Rich Christiansen. © 2012 by
Mountain Grabbers LLC.

Page 6 SUCCESS.com SUCCESS BOOK SUMMARIES