Biggest Reasons Why Businesses Fail (And How to Avoid Them) with Isabelle Mercier

Key Takeaways

[Music] who here has woken up one morning decided to build their business wanting to feel more overwhelmed overworked and underpaid did you really really now I don't think so no for 22 years I've been working with small business owners and when I asked them why did you start your business this is the norm what I hear the most is I wanted to have more freedom I wanted to have more flexibility I want to do it my way I'm tired of following someone else's way and I want the opportunity to create more impact am I right or am I right right exactly however after a few years sometimes even sadly after a few months what happens overwhelmed overworked and underpaid bankruptcy comes after that so why does that happen why do we have this amazing Vision to start something awesome and why does it end up being overwhelmed overworked and underpaid you have your hand up doesn't Prov doesn't project enough value for business like like the target audience not even if only it was that simple that would be nice if it was that simple it is because most people are really really good at what they do you know they're good graphic designers good financial planners good pie Bakers cabinet makers bookkeepers what they're not good at is understanding that there's a set of rules in business you need to have a right the right business model the right ingredients the right boundaries to actually be able to create a business that is not only fun but sustainable and most of all scalable when I ask people would you like to double your sales they go I would love to however I'm kind of maxed out right now and doubling my Revenue would mean doubling my efforts and that is not true when you're set up properly when you're not set up prop L then you will probably the business will the the being in business will kill your spark before your business actually makes it to the point that you really want it to make does that make sense okay so I want to share with you some pretty ugly stats 6% of all entrepreneurs will ever make it to six figures 6% now I'm going to be bold and I'm going to ask your show of hands who is already in the 6% a few of us who is really working to get to the 6% okay awesome open eyes and ears because this is going to help a lot um an even worst that is 0.1% ever make it to seven figures and a business architecture that is giving you a six fig is not the same as one that's going to give you the seven figure and one that's giving you less than six figures is not quite the same either as one that's going to give you the six so you got to you got to actually work that another stat is more than 50% of all small business owners check this out will never actually exceed $25,000 now we're not talking per day per month per per week here we're talking per year and I don't know about you but if I worked the way I work in my small business for $25,000 per year I would rather go work at McDonald's not that it's healthy but you know those fries smell good and um but at least I would enjoy free evenings and free weekends no thinking I'm not going to worry about those fries on the weekend that's for sure right um now if it's your goal to make 25,000 there's nothing wrong with that stat if that's what you want most people can have that by just having a job somewhere so why go through the trouble 90% of all small business owners discount their offer discount their services discount their products because people don't get their true value people don't understand the value that they bring on the table and again DJ was talking about an irresistible offer well it goes a lot deeper than that but at the same time a great product and a great service without an irresistible offer won't work a great irresistible offer without a kick but value and kickb process and um and product or service won't last people will buy it once but never buy it again now what is the biggest objection for people to buy on the planet what's the biggest objection I don't have the money right now correct correct is this mostly true never it is maybe 0.1% true and again here's what I say where there's a will there's a way and DJ said it earlier people don't buy what they need they buy what they want so you do have to sell what they want sell them what they want first now when people tell you that oh I don't have the money right now I want you to call and truly dig dig deeper because it's not about the money it's about them not understanding the value that you are bringing for the money or maybe they don't connect with exactly what you're talking about you know um my trainer my Jim my fitness trainer she was to train a guy that was getting married and he needed to lose 50 or 60 pounds and um he was gung-ho totally happy really wanted to do it and to look beautiful for his bride when he found out that it's going to be that it was going to be six grand what do you think he did I don't have that kind of money right now I'm getting married da da da da da meanwhile thanks to Facebook she leared a few weeks later that he bought a $10,000 Entertainment System people buy what they want not what they need right all right oh and by the way this one here 90% of the the discounting you are losing a minimum of $10,000 per year and that's at the minimum I've ever seen all the way to well above $100,000 if you're less than uh in the mid six figures just because people don't understand the value that you bring therefore for your discounting or discounting doesn't always mean discounting as in oh here's a discount if you buy today it means I actually worked website right I worked 30 hours on this but I can only Bill 17 my business increased by at the time Years Ago by 43% solely by stopping not billing my full value or my full time makes a big difference yeah isn't it also because like I got like mental conditioning oh something selling discount there is some of that absolutely there's definitely some of that and there's nothing wrong with discounting if you want to 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