Today’s blog is a continuation of a series:
Why people fail at business.
Reason #1 was they don’t have a motivating enough WHY.
Reason #2 was they quit too soon.
Reason #3 is they rely on others way too much.
Today is Reason #4:
People fail because they actually want a hobby, not a business.
There’s absolutely nothing wrong with someone who wants a casual hobby.
Make a little product, do craft fairs, sell to friends and family, and maybe have a few regular customers.
The only mistake is in thinking that is a real business. And unfortunately, many people do.
This series is about reasons why businesses fail before they even get off the ground.
So while hobbies are great (I have several of my own when time allows), I want to help you distinguish the difference so you CAN get your business off the ground, and be CERTAIN of success!
Here are a few examples of the difference between a hobby mindset and a business-minded person:
Hobby: No market research required
Business: Intense market research required
Hobby: Sell to friends and family
Business: Sell to a specific kind of customer/market
Hobby: “I have 10 sales – yay I’m in business! I should get some business cards made.”
Business: “I have 10 sales – yay I’m beginning to validate my idea! I won’t spend a dime on non-money-making items until I hit at least $100k in sales.”
Hobby: “I’m just not a numbers person.”
Business: “I need to make sure my COGS (cost of goods sold) allows for at least a 60-80% gross margin.”
Hobby: “I’m just not good at marketing. I hate selling!”
Business: “I’m willing to do whatever it takes to become an expert at marketing, even if it’s uncomfortable. Making sales is exhilarating!”
Hobby: If I put my product out there, people will somehow find me and buy.
Business: I will first build an audience of at least 10,000 people so when I launch my product or promotion, there’s someone to launch TO.
Hobby: I really want financial freedom, but I’m not willing to give up Netflix, Starbucks, Amazon impulse buys, and I definitely don’t want to invest in coaching or mentors.
Business: I really want financial freedom, so I will make a list of things that I’m wasting my time and money on that aren’t giving me any ROI, and I will instead re-invest that money into increasing my knowledge and skill set, so I can get paid back in dividends.
I could probably continue this for another 20 points, but hopefully, this paints a picture of the difference in mindset and choices.
The hobby mindset says they WANT financial freedom and a business, but they aren’t willing to sacrifice anything, they aren’t willing to do whatever it takes, and their focus is on the wrong things. There’s also a STUBBORNNESS in the way they’ve convinced themselves that they’re just not good at something, therefore, that’s just the way it is and nothing will change it. HOGWASH!!! The only problem is the unwillingness to change. The way I see it is they truly just don’t want success that bad. Anyone who is truly motivated will do whatever it takes. But it must be a deep why, and it must motivate you like its life or death.
The business mindset is not willing to accept a mediocre life. The business mindset is willing to give up small comforts and conveniences so they can optimize their time and money investments. There’s a humbleness, a humility, and willingness to admit they need to CHANGE attributes about themselves in order to achieve results. If they are lazy, they not only admit it, but they implement new habits to change their behavior. The world is constantly telling you “You’re perfect just as you are!”. That phrase is the enemy of any entrepreneur. The truth is that you MUST transform yourself. You must change. In your natural state you most likely aren’t going to push yourself. You aren’t perfect as you are, the truth is you’re a work-in-progress. And that doesn’t end until we meet our Maker.
If you have been waffling between Hobbiest and Entrepreneur, it’s time to decide which it is you want to be. There is a WORLD of difference between the two mindsets and the results.
Comment below and let me know!
