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Breaking Down New Year’s Resolutions: The Power of 1% Improvements

As we approach the New Year, many of us will inevitably make resolutions. And just as inevitably, most of us will abandon them within two weeks, reverting to our old habits. Why? Because we consistently underestimate how challenging it is to anchor new habits into our daily routines.

Recently, in our book club for loan officers and realtors, we explored James Clear’s “Atomic Habits,” which offered fascinating insights into habit formation. Clear introduces the concept of the “aggregation of marginal change” – the practice of seeking tiny, 1% improvements in everything you do. This principle originated from cycling: if you improve every minor aspect of riding a bike by just 1%, the combined effect creates a significant overall enhancement.

Applying This to Real Estate and Lending

Let’s consider your most profitable activity: reaching out to your past database. Any top producer will confirm this. What if you started by calling just one past client, then added one more call each day? In a month, you’d be connecting with 30 people daily – that’s the kind of outreach that defines successful salespeople. Don’t have 30 contacts? Get creative. Reach out to realtors, explore B2B opportunities, contact friends and family, always asking if they know potential home-buyers.

Here’s a fundamental truth: your business is never static. It’s either growing or eroding beneath your feet. The choice is yours.

Why Traditional New Year’s Resolutions Fail

Professional overhauls, as I like to call traditional resolutions, are often recipes for disaster. We tend to overvalue dramatic defining moments while underestimating the power of small, daily improvements. As Clear emphasizes, habits are the compound interest of self-improvement.

Consider this: when implementing a simple strategy like incremental daily calls, you might see minimal results in the initial weeks or even months. It’s similar to compound interest – like doubling a penny each day or the front-loaded interest on a mortgage. The magic happens only after consistent, long-term commitment. When results finally appear, they often explode exponentially.

The Plateau of Latent Potential

Clear describes a phenomenon called the “plateau of latent potential.” We often expect to see immediate results from our 1% daily improvements. We assume the market will instantly recognize and reward our efforts. Unfortunately, it’s not that simple.

Before success, we typically hit what I call the “valley of disappointment.” This is where most people quit, abandoning proven solutions for seemingly greener pastures – only to encounter the same disappointing results elsewhere.

The Consistency Factor

Success comes from sticking with proven strategies. When we constantly jump between different approaches, we never allow any single method to take root and create lasting habit changes. It’s similar to professional sports: the most successful franchises maintain consistent leadership, while struggling teams frequently change coaches.

A Different Approach to Resolutions

Instead of making traditional New Year’s resolutions, try this: commit to one simple strategy and pledge to maintain it until at least the end of Q1 2025. Don’t wait for January 1st – start now, while motivation is high and momentum is building.

Remember, success isn’t about dramatic transformations. It’s about the power of tiny improvements, compounded over time. The path might be slower than you’d like, but it’s sustainable – and that’s what really matters in building a lasting, successful business.