Poor business management has been the cause of more business failures than any other single issue. And it’s no wonder. We aren’t born knowing how to manage money. Most of us aren’t taught how to handle it either. We figure it out along the way, through much trial and error.
Those same mindset issues and bad habits that wreak havoc in our personal lives can plague our businesses as well if we’re not careful.
Catching Shiny Object Syndrome
Some things are just hard to resist—especially when your friends and colleagues are all jumping on board! New tools, training, group coaching programs, and even business models can all have a strong pull, and if you aren’t careful, these shiny objects can quickly distract you from your current goals.
If you find yourself catching shiny object syndrome frequently, try this two-step plan instead:
- For “too good to refuse” offers, make a plan for achieving a positive ROI before you purchase. If you cannot find a (realistic) way to make the purchase pay for itself, don’t buy it.
- For exciting new business ideas, create a “someday” list. Jot down your idea and a basic outline, then get back to the task at hand. Now that great idea won’t be lost, but it also won’t join the ranks of half-finished business plans that litter the internet.
Falling for the Sunk Costs Fallacy
If you’ve ever said to yourself, “I’m not using this subscription, but I can’t give it up! I’m still paying the launch price and now it’s much more expensive!” Then you’ve fallen for the sunk costs fallacy.
This common mistake we all fall victim to it from time to time. Simply put, the sunk costs fallacy is what makes us justify investing more money or time in something—even though we’re not seeing results—because we’ve already spent so much. It’s what encourages us to repair the car one more time (after all, you just put new tires on it), eat a meal we don’t enjoy (simply because you’ve paid for it), and yes, continue to pay for tools and resources you’re not using.
Take a few minutes and examine your current business expenses. What are you paying for month after month that you’re not using? Either make a plan to put them to work for you, or cancel them. Stop falling for the sunk costs fallacy.
Too Much Penny Pinching
You thought this was all going to be about overspending, didn’t you? Here’s the kicker: Spending too little is just as bad for business.
When you’re constantly on the lookout for free and low-cost tools or working 16-hour days because you “can’t afford to outsource,” you’re not doing your business any favors. Sure, it looks like you’re bootstrapping and working really hard to make something from nothing, but what you’re really doing is digging yourself a rut it will be nearly impossible to climb out of. Not only that, but you’re reinforcing a scarcity mindset that will continue to plague you for years if you let it.
Rather than pinching pennies, learn to spend money strategically. Buy what you need, when you need it. Invest in top-quality coaches and programs rather than settling for the low-ticket, free downloads. Just like quality clothes, cars, and furniture, quality services and software last longer and work better. And unlike that car, good quality business tools will pay for themselves.
You are the problem
The ONE other thing you need to watch out for is YOU!! Yes, YOU!! What you are spending your time and money on, and how you feel about it. Building your business is HARD, don’t let any of those; “Make 6 figures in 6 days!” ads make you doubt your worth.
Three was to create the opportunity for success!
- Continue to provide REAL value for your clients and customers.
- Be an action taker who follows directions but remains coachable, decisive, and resourceful.
- Make REAL connections with your list and following, nurture them.
It’s all about the connection.
Here’s how it typically works. Your ideal client searches for a solution to a problem. They come across a post by you, or a resource you’ve put out (free or paid); or discovers your website, or sees your ad or boosted post on Facebook.
They sign up to get your solution … and they might sign up to stay in touch, if you’ve wowed them with your information.
If you haven’t yet nurtured your list, they might find a post by you that helps them but if you don’t have some way and incentive for them to sign up, they will quickly forget you and will probably not find you again. Not providing “sign-up” opportunities with every “appearance” on the internet is the number one—and most easily remedied—mistake people make that prevents them from growing their lists.
So write this down:
Make sure that every place your ideal visitor encounters you, you provide a reason to join your list and a way they can do so.
That’s just the beginning they will find you because of:
- An image quote you wrote or provided that inspired them
- A tip you’ve shared in a Facebook group or on Twitter
- A post you’ve shared (written by someone else) that helps them with what they are grappling with at the moment
- A post you wrote that gave them the information she was searching for
- The joke or cartoon you shared that made them laugh—and share it themselves
- The story on your website in your about section that really resonated with them; that they could identify with
- Stumbling across you by accident
This will save you months of wasted time and help you tackle building your business one step at a time. Yes, it’s probably going to feel more like a chore at first, as you invest in new habits. It will be a while before your mix really catches on—but do take active steps every day to build and nurture your list, and you will be surprised at the growth you do see.
And there is nothing like seeing new subscribers sign up in response to your efforts to encourage and inspire you even more.
So start today. Create a list. Feed it. Plan for it. Nurture it daily.
You can do it—and your people are waiting.
For more support, make an appt with me to talk about what’s holding you back from scaling your business using MEDIA & STRATEGY!!
Get in my calendar: http://www.calendly.com/bethnydick/20min