[Note: this article was written along with my friend Tony Tiefenbach]
After talking with hundreds of service-based entrepreneurs we’ve seen the two biggest mistakes holding people back from earning an extra $3,000 to $60,000 a month. The solutions to these common mistakes are simple and will burst you past the $20,000 to $100,000 a year income ceiling. And without the strategies I’m about to reveal to you, it’s very difficult to experience a true freedom based lifestyle from your business.
Massive Mistake #1: Majoring in the Means
Since working with thousands of entrepreneurs around the world I hear it all the time: “I need a list!”, “I need to get into social media”, “I need a brand!”, “I need to re-do my website”, “I need to get into video!”, and on and on.
It’s a trap.
Everyday you see those emails in your inbox saying, “Do this ONE thing and you’ll get rich.” This single tactic, this one single big tip is all you need to be successful. Or you go to an event and see the guru on stage say “I made $1 million dollars in 7 months and so can you!”
It’s a trap.
Maybe you’ve already done “x” number of programs and masterminds that promised abundance once you _______ (fill in the blank: build your list, do Facebook ads, create an info product, launch an info product, etc.)
It’s a trap.
Don’t get me wrong… all these tactics are good. But they are massive distractions, too. They trap good people who want to make a difference in the world and do well financially in what we call “majoring in the means.”
The term “means to an end” refers to any action carried out for the sole purpose of achieving something else. The problem arises when you get sucked into doing mostly means activities in your business… without knowing EXACTLY how it is affecting your bottom line.
It’s as if you want to become a better cook so you go out and buy all those fancy, shinny appliances. You spend tens of thousands of dollars on that chrome plated food processor, that knife that cuts garlic in that special way, that mega-powerful blender, and all the best ingredients you can get your hands on. There you stand in the middle of your kitchen surrounded with all these incredible tools and food when suddenly it dawns on you, “I have no recipe!”
No recipe means you have nothing to link all the great ingredients and appliances together. You didn’t spend all that money to have a bunch of fancy tools. You bought them so you can experience an amazing meal with family and friends.
But this is what a lot of entrepreneurs get trapped into doing… they focus all their efforts on tactic after tactic (means) with no real strategy behind how those tactics should be combined to lead to what we all really want from our businesses…
…Which is money, freedom, and the ability to make a huge impact on the world (ends).
Focus on Profits
We’ve never met an expert who didn’t every tool and ingredient they need to burst past their income ceiling. And it’s probably all sitting right in front of you already, too. You don’t need another info product telling you any “secrets”. Chances are you’re focusing on things in your business right now that you know deep down you don’t need to be doing. What’s the fluff in your business? What activities can you eliminate?
Here’s how to decide what needs to be eliminated…
Take out a sheet of paper and write down everything you did hour by hour for the last 3 days in your business, and ask yourself:
“How did each of these activities specifically move me towards more profits in my business today, next week, and next month?”
If you answered “I don’t know” to any or all of your activities, chances are that thing you where/are doing is a massive distraction and will keep you searching for money in your business “when I get _____ done.” (Fill in the blank: my website, my list, my videos, my product, my ezine, my branding, etc.)
Really think about this, “What is the easiest thing you can do now to make money THIS WEEK?”
Stop focusing on the means (tactics) and start focusing on the ends (profits).
Massive Mistake #2: Ignoring the Numbers
The two most important numbers in business are income and expenses. Here’s a super simple way to maximize both…
Important Number #1: Income
Do this easy exercise. Come up with a baseline number you need right now to live comfortably every month. This means all bills are met, all the basics of living are met, and you can rest at night. What’s your baseline number?
This is the minimum you need to make every month.
But baseline is boring!
We want to experience life to the fullest – no restrictions. So come up with another number… your Lifestyle Number.
What do you need to make to fully enjoy your life? This means buying those nice things, spending quality time with family and friends in cool locations, sending your kids to private school, etc. Come up with a second number that represents what you would REALLY like to make every month… and add 20% as a cushion.
Every month, all your marketing and sales efforts need to strive for your Lifestyle Number. No questions. No excuses.
Important Number #2: Expenses
We see a lot of entrepreneurs throw money at a problem or a product hoping more money will bounce back. It’s time to think like a CEO of your business. The real question you need to ask yourself when preparing in any addition to your business or any program is:
“What kind of return on investment (ROI) can I expect from this?”
How much money are you currently spending a month on XYZ? Do you know for a fact that you are getting a return on that investment? Or is it money you are spending every month with no idea of whether it is furthering your profits or not?
The question you need to ask yourself is, “Where do I need to invest my money so I get a clear ROI?” That determines where and how you spend money to grow your business. Simple!
How to Avoid These Massive Mistakes Forever
Most people have sluggish incomes because of confusion and feeling overwhelmed. There is a clear path customized to fit your unique situation and business. The challenge comes in trying to figure that out on your own. It’s like trying to tickle yourself! Not possible.
That’s why the most successful people have business mentors, not just coaches. A coach is great to give you encouragement and feedback, but a true mentor has traveled the path before you and knows EXACTLY where you need to step next for maximum results.
The top 3 qualities of a great mentor are:
- They’ve done it
- They’ve already helped others do it successfully
- They can help you do it
If you’re ready to break past the $20,000 to $100,000 ceiling in your business, come check out a special online event we’re having that will give you some excellent business models to lever your income even further with less time and stress. Click Here to Find Out More
Leave a Comment Below about the Massive Mistakes
I’d love to hear your a-ha’s and insights from this article. Do you agree? Disagree? What has your experience shown you? Share with the rest of the Roche Marketing community below.