4 Business Myths that Trip Entrepreneurs Up
Chances are you have heard business coaches spread at least one of the myths I am addressing in this post. While there may be SOME truth to them, they definitely are not one-size-fits-all solutions. As a seasoned and skilled business strategist, I can look at a business and diagnose its problems.
That is most likely false because sometimes you just don’t understand the numbers in business. Telling you that you have money mindset issues can be a flawed excuse to doing the work and becoming knowledgeable about money, finance, profit, pricing, and the mathematical side of running a business. When you learn about these things, you cure that mindset issue.
Well, duh! But when you are just getting your business started, don’t allow people to bleed you of all of your early income by insisting that you can’t do it without them. Determine a certain percentage of your income to invest and earn the income you desire to invest. Most importantly, do the math. Don’t irrationally bleed your business because marketers and coaches tell you that you’ll be unable to succeed unless you do this. I’m proof that is untrue because my business brought in approximately $180k before I invested my first $27k in a coach.
Wrong! You are able to generate a profit from your first year. The only exception to this is if your business is capital intensive and requires you to invest heavily in leases, equipment and overhead. If you don’t have a capital intensive business and you don’t turn a profit in the first year, you possibly have a math problem and bought into Myth #2 a little too much. Your business model should have profit margin stacked into it. If it doesn’t, you have a problem and growing that problem through top-line sales doesn’t change anything.
No, raising your fees is not the solution to every problem. You need an understanding of supply and demand. If you are raising your fees, you need to deliver value for whatever you charge. I’ve seen several people who have followed the “raise your fees” myth, only to find themselves without customers and an awful reputation because they charge too much and are unable to deliver the results that they promised. The more money you charge, the more value you will be held to delivering.
As I mentioned from the start, you may need to improve your mindset, increase your fees, invest in yourself or be patient when it comes to earning money. Just do your homework before jumping onboard with any of these solutions.
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