Almost 170 years ago, Alex de Tocqueville, an insightful French traveler, was amazed by America, a nation without royalty. He was especially surprised by the American practice of forming voluntary associations to solve common problems.

Mastermind groups are a contemporary example. Typically, 6-12 business leaders meet regularly. Each leader owns or operates a firm in a different craft or trade, so they do not compete directly. Successful groups have several things in common.

How Mastermind Groups Work

Often, there is an organizer. He or she might also be a mentor or a counselor to some or all the owners. The individual members must like and trust the organizer enough to be willing to join the group. Frequently, the organizer collects a fee from each member.

A group might meet once a month for half a day. Each month, there may be a different topic, such as: How can we utilize artificial intelligence in the next two years? In some groups, an individual member has half the time to discuss a current problem or opportunity and seek input and perspective from other members.

What Makes Mastermind Groups Successful

Candor, compassion, and wisdom go a long way. Wiser members may ask questions without trying to lead the presenter to the solution that the questioner is certain is the only correct answer. Instead, wise questions can evoke awareness in the presenter, generating extra options.

Confidentiality is absolutely required. A breach of confidentiality often results in eviction or, in the worst case, the termination of the group. Accountability is a benefit of a mastermind group. Members tend to be achievers and go-to leaders. Most members do homework assignments before the meeting. They depend on each other to come prepared for each session.

Positive Results

Friendships often develop. Side conversations and friendships outside the monthly meetings can signify health and engagement.

I was part of a national mastermind group for years, where the person closest lived four miles away. We had different specialties, and the closest apartment broker was two time zones away. The distance meant we could discuss what we had tried, what worked, what failed, what we hoped, and what we feared. There was no risk in sharing.

Another mastermind group I was a part of called the HalfTime Institute, focused on creating positive impacts outside of business success. HalfTime Institute emphasized talking out your confusion among your peers. That phrase sounded like gibberish at first, yet within four months, I realized it was one of the best benefits for people exploring substantially different adventures that were new to most of us.

What could go wrong?

Some people might pose to be someone they are not or might not have enough trust to deal with a truly important topic. They might squander dollar time on penny problems. A know-it-all blowhard could waste others’ time.

Prudence, due diligence, and caution are all appropriate. Trust takes a long time to build. Mature people won’t be surprised when one is cautious about the disclosure of sensitive, confidential information. Members learn to tell the truth gently and clearly. Knowing that the other person is sometimes wrong but never malicious is precious.

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So how about you?

If you have experience with a mastermind group, I’d love to know about it.

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Terry Moore, CCIM, is the author of Building Legacy Wealth: How to Build Wealth and Live a Life Worth Imitating. Read his “Welcome to My Blog.”

Click here and find out how Terry and his team can help you make the most important financial decision of your next decade.