Not enough entrepreneurs are earning what they should be. Learn why that is and what you can do to get above the $100,000 mark.
By Maureen Considine
In this article, I look at research as well as my own experience along with what I have seen in my clients and therefore what I teach. Most small businesses will fail in the first year, and then again in 5 years. These statistics do not speak well for the success of entrepreneurs and it’s just sad. It hasn’t really changed all that much over the last 10 years, even more.
Let’s first take a look at why? Why businesses don’t make it to 6 figures.
Research cites a lack of cash flow! This is the biggest reason that businesses fail, due to lack of cash flow. A lack of funds in the business and a lack of funds coming in.
1. I have found in my business that most entrepreneurs do not understand what cash flow even is! So first they need to be taught the details of cash flow so they have a beginning understanding of it.
Business owners resist looking at their finances, whether personal or business. I mean really looking at them, to know what is going out and what is coming in. Why? Most people think it’s because they don’t want to see what isn’t there. Not true! They actually resist seeing how much money they have and are making. Sounds counterintuitive and yet still true.
2. I have also found, I think this one is more significant, the vast majority of entrepreneurs don’t know how to bring money into the business. That’s right. They don’t know how; don’t realize they don’t know how and therefore have a large amount of resistance towards it. More on this to come.
They focus on being busy, rather than being busy doing the right things. For example, a website may or may not be necessary for your business; thing is, it is not guaranteed to bring in clients or to generate income. You still need to make sales.
3. Entrepreneurs as a whole don’t know how to make sales, that’s right, they don’t know how. There are so many limiting beliefs running through their minds keeping them stuck and from growing, they don’t even realize it.
For example, in the beginning many are taught to go to networking events and meet other business owners, that being around others who are running businesses can be helpful. This is true. Along with this advice comes the idea that it can take time to build the relationships, to get any business coming in. This idea and belief can be the exact thing that is causing the problem. It does not have to be this way!
4. Money doesn’t come into the business fast enough for it to be sustainable either, in order to grow their business and keep it growing. This is another part of the belief system as well as a common idea taught to business owners, professionals that it takes time to build a business. It doesn’t have to.
These are the main reasons why. So many more stem from them that we cannot go into in an article.
Let’s dive into what you can do to get to 6 figures.
#1. Develop a growth mindset. Work on your limiting beliefs that are holding you back. This is the #1 thing that is keeping their business from growing and from making the money that it could is the mindset of the entrepreneurs themselves.
This mindset is going to make them less likely to invest in themselves or their business. Both of which are necessary to grow the business and its revenue. Most people don’t know that.
It is this mindset, this collection of beliefs around money, business, work and time that keeps them at a low-income level and struggling in their business. And. It is the best action an entrepreneur can take to build it.
An example of this lack mindset is that it takes a long time to make money, especially in a new business. That one has to build a network, build relationships before they will see sales. Not true! The only result of this way of thinking is a business that makes little or no money fast enough to grow and therefore doesn’t thrive.
#1. Hire a mentor. Working with a mentor who can help you organize and grow your business, and get results quickly is also the #1 thing you can do to get your business to 6 figures. Even when you don’t have all the money upfront. This too seems counterintuitive, however, in my experience and that of my clients, it is the game changer.
It was for me. I was struggling in my business, having some success and not nearly as much as I knew I could. Once I began working with a mentor, and continuing to do so and following his advice, it changed everything. It is exactly why I do what I do now.
It can be the best decision you make!
What keeps people from hiring a mentor? Money. Time. And the lack of both. Except these are just excuses, to keep you from growing.
#2. See money spent to grow your business, including and especially hiring that mentor, as an investment rather than an expense. That thinking actually keeps them from doing it. They see money spent as an expense rather than an investment. If you want to grow your business, to make any money, you are going to have to grow, and invest in yourself. To grow! That requires a mentor, a business coach. So few people do that.
Hiring the best mentor was the single most important thing that I did for my business. Even when I did not have the money to pay for it!
This is by far the single most significant factor that contributed to my success along with my doing the work, which is critical too. It is partially why I do what I do today. More women, and more business owners in general need to and deserve to have far greater success than they currently do.
#3. Learn the truth about marketing. Correctly. Marketing is often taught by those who do this for a living and it isn’t always accurate. It can get business owners, especially new ones, focusing on the wrong things in their business. Like a website, or an email newsletter, or social media advertising. All of these are good opportunities and often necessary for a business, however, they can eat up so much time and keep you from making any money.
It’s a catch 22, because most people either don’t know how to make sales or don’t want to because so much negative perception is wrapped up in their minds about sales people that they don’t want to be, so they don’t do them. Sounds a bit counter intuitive again, and still true. Call it the fear of rejection, most people will say they don’t have it, all that means is it’s lying underground, hiding and still keeping you broke or not where you want to be. It’s incredibly true, until you get past it. Most business owners do not.
#4. Become good at sales. Most entrepreneurs don’t learn sales. That’s right. First off, they think that if they start a business, have a website, go to networking events, clients will come. Wrong! Not necessarily. No one teaches that, until it’s obvious and you either quit or seek out help.
It was true for me. In the beginning I thought I was not good at sales, until I realized that was the problem in itself. Once I switched that, I still wasn’t doing all that great, until I hired a mentor!
Hire a mentor. Shameless plug? 100% and it’s necessary. Nothing wrong with that. You are going to have to be willing to promote your business. So many people do not want to have to do that. It goes back to mindset, it can be one of the hardest things for entrepreneurs to work through too.
Maureen Considine is Founder and CEO of Finding Your Way Coaching. A Master Coach with expertise in Income Acceleration, Business Development, Sales and Mindset, she is the Wealth Health Creation Strategist for entrepreneurs, executives, and other high performers. Maureen has over 25 years of experience in sales and marketing. She has helped hundreds of clients grow their businesses and reach their true potential using her unique, intuitive, and holistic approach. Maureen has a B.A. in Psychology, with training in mindset and the Psychology of Sales.