Last week my buddy Chris McCombs asked me to write up a post for his blog. I agreed and got to writing and created a blog post called “7 stupid mistakes rookie entrepreneurs make to mess up their profits.”
Turns out it was one of the most popular posts on his blog – ever.
Here’s part two: 7 MORE stupid mistakes rookie entrepreneurs make to mess up their profits.”
I guess I could have called it “14 stupid mistakes from the get go…”
The know it all – Off all the dumb, profit killing, business bankrupting mistakes this is the one that, for the most part, can’t be fixed because it’s not a mistake – it’s a character flaw. There’s nothing worse than a know-it-all. And in business, a know-it-all mentality is like the… kiss of death. (Unless you really do know-it-all)
See, the know-it-all is too proud, stubborn, and stupid to ask for help and seek out information. Instead they’ll continue to do the same stupid thing over and over again expecting a different result. Isn’t that the definition of insanity?
I know a wannabe entrepreneur like this. He owns a personal training studio nearby and it’s a train wreck to watch. At first he had his studio in a strip mall. Then as profits tanked he closed down and reopened in an industrial location, then he stopped running ads because it was costing him too much. I guess that’s a good thing because they were grossly underperforming anyway.
The list of mistakes this guy is making is a mile long.
And he won’t accept help. A couple of times he showed interest in my products and services but decided against it. In the mean time my other client, Saman Bakhtiar, who owns a studio in a less desirable location nearby is generating 7 figures annually – even in this economy, running two pages ads that are pulling tons of leads and has at least five other reliable online and off line fitness marketing funnels going.
Soon, the know-it-all guy will be out of business and he’ll blame circumstance, the economy, his location – never his underdeveloped entrepreneurial skills.
The dollar trader – It’s 2009, and if you’re still trading hours for dollars then you need to kick yourself in the shin – hard. Even if you charge a premium, even if you deliver your service one-on-many and not one-on-one you still can’t justify trading time for dollars.
Today the most successful, the most profitable, and the most lifestyle oriented able -to-do-what they-want-when-they-want entrepreneurs know how to duplicate themselves and leverage staff, systems and technology allowing them to work ON their business and never IN it.
The tire kicker– This is the person who can never stay focused on one thing and ends up always running to the next shiny object in the corner. By default the tire kicker is never committed finishing what he started, therefore his business may generate some income but it will NEVER have legs and reach its full potential.
The “my business is different” – I can’t raise my rate, create info products, run boot camps, open a studio, market like that, use EFT, sell big packages because my business is different.
Bullshit… your business is not different.
There’s not a single business, fitness or otherwise, that can’t raise their rates, generate multiple income streams, sell bigger – long term programs, and create continuity (EFT) income, info products, boot camps, studios, or whatever.
Limited thinking leads to limited results. The formula is the same in California, Louisiana, New York and overseas. If you don’t have the resources – get resourceful. But I can tell you this with irrefutable certainty – YOUR BUSINESS IS NOT DIFFERENT.
The linear income problem – My dad made linear income. He was a tailor and owned his own shop. One job, one income stream – that’s it. Those days are long gone. There’s no security in linear income.
When big department stores started offering alteration services my dad’s income was cut by a third. His bills and mortgage stayed the same, but his income didn’t. I remember those days… they sucked.
Today it’s about DIVERSIFIED multiple income streams. I’ve created several streams for myself like continuity income from software and membership sites, big chunk income from coaching and consulting programs, steady sales income from info products, equity income from rental properties, dividend and compounding interest income from stocks and mutual funds (though they’re in the crapper right now) and I’m diversifying my skills into other industries.
There’s a huge problem with linear income. Break away. If you’re doing one-on-one training now then replace yourself with an employee and start your another income stream like boot camps, a studio, info products, corporate wellness, affiliate programs, internet income, ect…
The missing systems – This is an easy one – but so overlooked. Your business needs to run on systems and not by random acts. You need systems for marketing, appointment setting, selling, up selling, referral generating, retention, back end selling… you get the picture… nuff said.
The one at a timer – Agrrr, this one really drives me nuts! Too many wannabe entrepreneurs do things one at a time…S-L-O-W-L-Y. That’s NOT entrepreneurship that’s employeeism.
If you want massive success in a relatively short period of time then you need to get things done simultaneously not sequentially. NEVER give birth to a great idea and allow it to just sit there without working on it EVERY DAY.
Wealth is attracted to speed and action. The biggest determining factor between success and failure is the time spent between idea and action.
Entrepreneurs do things simultaneously. Employees do them sequentially. Remember that.
Want to read the other 7 stupid mistake entrepreneurs make to mess of their profits?
Check it out here: Kick Back Life
Let me know what you think. Leave me your feedback and comments below.