The Common Mistake Of New Entrepreneurs
This is one of the biggest mistakes new entrepreneurs make.😮
If you're building a business, profit is what matters most. Don't fall for the guru speaking about "7-figures" in sales revenue. I've known plenty of 7-8 figure business owners that lose money each year.
7-figures, 8-figures, etc... don't mean anything if a business is barely staying in business, or bleeding cash each month.
So how do you maximize your potential to achieve more profit?
Sell expensive things.
As a business owner or hopeful entrepreneur, you've already accepted the fact that you'll have to sell something. That's business.
I see waaay too many of you wasting way too much time promoting and selling tiddlywink little knick-knack products and services that only earn a few bucks per sale.
You won't achieve financial success by focusing on selling low-buck things, unless you've mastered the tactics of generating high volume sales. That means you'll need to spend tens of thousands (maybe hundreds of thousands) per MONTH in advertising in order to generate the typical 10-15% net profit.
The only other alternative here is to have built a huge personal brand with a huge audience of willing buyers. That's great if you've achieved this, but it's not the norm. It's probably not you.
Selling is selling. It's literally the same skillset if you're good at it. It's definitely a skill you SHOULD invest in, and become great at.
It takes the same amount of effort to sell an expensive item or service, as it does to convince some cheap bastard to buy your cheap product or service.
Here's an example I figured out 20 years ago, with one of my own businesses; selling custom wheels for cars.
Back in 2003, I thought it was a good idea to carry a range of wheels, from entry level (then about $999/set) and top-level forged wheels (then about $3000/set). More products the better, right?
Wrong.
Within a year I learned I was wasting much more time on the phone and in emails with the cheap buyers. They were obviously price-shopping, and didn't care as much about service or my knowledge. They'd get info from me, and go buy elsewhere based on price.
Those $999 wheels only created about $150 in profit per sale (15%).
The expensive wheels created $750 in profit per sale (25%).
I would have to sell five sets of the cheap wheels in order to equal the profit of only one set of expensive wheels. Same amount of sales effort for both, actually more effort with the cheap buyers.
I stopped selling the cheap wheels. My business grew faster. I focused on serving only the highest quality brands and my marketing focused on service and expertise. Things high value customers respect.
If you want the potential to earn more profit, look at selling the most expensive things you can. Become an expert in those subjects. Quit competing in the bottom market, with all the others who are too lazy to specialize in a higher product level market.
To those of you with already established businesses, you are likely earning 80% of your profit from only 20% of your best products or services... while wasting time on the other 80% of your products that barely move the needle. Don't be afraid of dropping products off, especially low-performing (non profitable) ones.
-Tony
How To Know If You're In a Business Cult
How to know if you're in a business cult 😮
1. The leader is charismatic and attracts attention. Usually has a level of intrigue or mystery about themselves. Can be unpredictable at times. They'll sometimes label themselves as prophets or that they have almost God-like characteristics or skills.
2. The leader knows how to grow an audience of followers. They understand that it's easier to get people to join when they are in a financial struggle or they feel lonely.
3. There is a defined business model that generates huge profits for the leader, and some of the Lieutenants that report directly to him or her. There are usually defined levels within the membership, starting from a low-priced base, a midrange level, and a top level. Each of these levels seems more prestigious than the level below it, and serve to make members aspire to level up (thus, spend more)
4. The psychology of "Us vs Them" is deployed heavily within the organization. The leader teaches the members to distrust anyone outside of the group. The leader makes the members feel they are part of an elite private club, and that they are better than other people outside of the club. Think about how odd this is, especially if you understand most in the group are struggling or lonely, not actually "elite".
5. The leader introduces "insider speak" within the community. These are trite little phrases or sayings that are often repeated by the leader, and show up in the external words and writings of the members. This insider speak is a way of signaling to other group members that you're in the club. It's the "IYKYK" handshake.
6. Members are manipulated to remain in the club through gained notoriety and acknowledgment within the club. They are led to believe they are better members if they contribute more money and time to the group. They are made to believe they are part of something much bigger than themselves, and that it's unsafe to leave the group. People fear the potential backlash of leaving, so they remain.
7. The leader accepts no criticism, and dissent is punished publicly. Naysayers or skeptics are removed immediately, by shunning or banning them. Those who remain in the group are encouraged to no longer associate or support former members. On social media, they'll block or unfriend you. A former member's stellar reputation may experience a smear campaign, especially if they are a whistle-blower.
8. Each cult has regular gatherings and ceremonies. These are opportunities to publicly praise the best members, encourage more donations or leveling-up ranks by investing more, and to allow the members to visually see they aren't alone. Expect "insider speak" in most member conversations, especially from the leader on stage.
9. The leader eventually earns enough to invest in real estate, a formal gathering place or compound. A place where they can teach others to enroll more members, have private gatherings, and indoctrinate their beliefs into members and staff.
There are other tactics being used, but these are the main ones to identify. If you've found value in this article, share it with others.
-Tony
Unspoken Truth About Building Personal Brands
Building a recognized personal brand takes years, but so many expect results in only months.
Just because others make it look easy, or the fact that you could likely produce similar quality content, doesn't mean you get to skip the time factor.
Your first goal should be to become someone of value worth listening to. Demonstrate your expertise and proven results in something. Answer the question of "Why?" an audience should pay attention.
There are too many that just want to claim they are the best, but have nothing to show for it. The real experts create proven results first, then speak about them long afterwards.
Just understand that you are playing the lifetime game, and be committed to creating content, while at the same time being patient with getting results.
Years, not months!
You can certainly shorten the time for gaining your tactical education, by hiring a coach or an agency. Knowledge related to messaging, positioning, copywriting, content creation, formats and editing. Social media skills, etc...
But, having the knowledge of tactics doesn't mean you'll get to skip the years of putting yourself out there, doing the work. Plenty of people know *what* to do, but aren't doing it. Most give up too soon.
Years, not months!
Everyone starts with zero audience, and zero followers. Don't be hard on yourself if you're just beginning.
It's better to become the right person with the right message, instead of the right message coming from the wrong person.
Years, not months.
-Tony
The Importance of Emotion in Messaging
If you are a coach or consultant and you're struggling to get clients, maybe it's just your message.
First of all, there is the question of integrity and authenticity.
There are people selling the promise of earning a lot of money, who don't seem to have a lot of money.
There are people selling the promise of building your influence or fame, who haven't demonstrated it, themselves. They don't even have a Google knowledge panel for their own name.
There are people selling the hope of a happy and enlightened life, who seem to be drama magnets and basket cases.
There are relationship and dating experts who are divorced a couple times, and are single. But they keep giving advice on it.
If you've made it past the authenticity checks, then there is something more important about your message that you may not understand.
It is the emotion that you are known for providing to your audience.
It's not about what you do, it's about what emotion they feel when they interact with you.
While the amateurs waste a lot of time pitching their products and services, the experts are keyed into the overall emotion that their content is known for.
What ONE emotion do you consistently provide to your audience? Do you know it? Let's hear it.
-Tony
Don't Listen to Comparisons
Don't listen to them. Your business doesn't have to be stressful. You don't have to work insane hours and sacrifice what truly matters to you.
Sometimes you'll see other business owners stand on their digital soapbox and try to talk down to you. They'll say things like:
"You aren't working as hard as me."
"You aren't sacrificing as much as me."
"Your business model isn't as great as mine."
"I'm better at business because I have more employees than you."
"My business is legit because I have a physical location."
"I'm better than you because I do 7-figures, 8-figures, All-the-figures."
In business, all of these lines are bullshit. They are usually sourced from their uncontrolled ego and insecurities.
I know this, because I've used a few of them in the past, when I was seeking external validation and approval. I grew up without money or social status, so I felt I had something to prove.
Back then I also mistakenly linked someone's social status and self-worth with their net worth. If they are more successful, surely they rank higher on the imaginary human status scale, right?
Some of you are thinking "I'd never do that, I'm not like that. I treat everyone as equals." But your subconscious still plays these stacking games, it's how we were taught. It's what we believe.
Need proof? When you meet someone new, there are often general questions asked.
"What's your name?"
"Where are you from?"
"What do you do?"
Although these questions seem harmless (and boring), that last question is our passive attempt to categorize someone based on status. If someone responds they are a brain surgeon, you automatically elevate them in your mind. If they respond with a lower income career, you rank them lower in your status stack-up.
Well, these entrepreneurs that hit social media with their comparison phrases are doing the exact same thing. They are making an attempt to climb to a higher (to themselves) status by downplaying those who they think do less, struggle less, and sacrifice less.
In business, we each have our own desires. No answer is correct, or better than others. Some are fulfilled earning less than six figures, where others believe they require millions.
Struggle is a choice. Sacrifice is a choice. Spending time away from your family is a choice. Feeling stressed and anxious is a choice. Wanting more employees is a choice. Not having time or location freedom is a choice.
I've built online businesses. I've built physical location businesses. I've built teams and staff businesses. I've done retail. I've done services. Each model has its pros and cons. I don't consider any of them "better" than the other. That's because "better" changes, based on what you want your life to be, in this period of your life.
Nowadays I define my idea of a successful business based on a combination of things I value. I value time the most. Minimal time, maximum net profit. Minimal stress, maximum fulfillment.
I don't care about other entrepreneurs with revenue humblebrags, because it doesn't always portray their net profit, time sacrifices, family sacrifices, mental and physical health sacrifices... and more importantly; Their sacrifice of fulfilment and happiness in life.
You don't need to justify your business choice to anyone. You simply need to decide what matters most to you, and build it for yourself.
-Tony
Before I Became a Business Coach
Before I became a business coach:
Corporate Experience
- I put myself through engineering school while working full-time construction jobs.
- Led multi-national teams of up to 75 people.
- Managed up to $200M joint ventures and global projects, with $1M operational daily burn rates.
- Joined a startup and led the technical bidding strategy which resulted in $1 Billion in awarded contracts in the first year.
- Utilized legal contracts expertise to successfully reject 96% of unsolicited change orders, protecting my client from $4.8M in one year.
- I’ve received over $1M in corporate training in leadership, operational development, contracts, processes, risk management, communications, and Human Resources.
- Worked extended months in UK, France, Italy, Angola, and Rep of Congo.
- Member of three M&A project teams, resulting in a 9-figure and two 8-figure acquisitions.
Personal Experience
- Active entrepreneur since my first LLC in 2001.
- Started 9 companies/ brands, failed at 5, succeeded in 4.
- Built and led two online communities with hundreds of thousands of registered members.
- Built a digital marketing creative agency which consisted of website design, logo design, cart implementations, and marketing creative.
- Built multiple 7-figure companies with zero loans, zero capital raises, zero debt.
- Sold two assets for millions net. LS1tech and PerformanceTrucks
- Nominated to serve on the SEMA marketing advisory team, still active there.
- Helped/ advised 12 of my former staff members and friends build 7, 8, and 9 figure businesses over the last 20 years.
This is why I’m qualified to do what I do. It’s who I am, and always have been.
-Tony
The Truth About Alex Hormozi
I see a lot of you copying the caption style that Alex Hormozi uses. I hate to inform you, but your caption style isn't why your content isn't trending like his. 😭
It's a combination of several things that have placed the Hormozi's as the fastest growing business influencers in 2022.
First, he and his wife Leila Hormozi have established proven business results. The couple has exited companies in the 8-figures, and built a portfolio of joint ventures and equity partnerships up to over $100M annual revenue. People take advice from those who've achieved things.
They are also very articulate and intelligent, combined with certainty behind their message. Rather than repeating what others say, they both speak from their own personal experience.
Alex' appearance also breaks the traditional "look" of multi-millionaire business owners. He dresses like the gym bro that he's always been. He doesn't try to look like other people in the space. Plaid, muscles, tank tops, Crocs, jean jorts, and a scruffy beard. He just owns who he is, while most try to emulate others.
The other reason you perceive them as "blowing up" is because they both spend nearly $100K per month on their content creation team. They drop several videos daily, on every platform. You don't have the budget to compete at that level.
Lose the copycat captions. If that's the reason you believe your content is struggling, hopefully I saved you some time and money.
Just focus on:
1) Create measurable results and success in what you wish to be known for.
2) Be yourself. The best version of you, not some watered-down version of someone else.
3) Create content with consistency and quality, over long periods of time. This means years, not weeks.
You cannot skip steps!
-Tony
Why You Should Be Using LinkedIn
"LinkedIn Sucks."
"LinkedIn is Boring."
I often hear phrases like this, but I want my 365 Driven family to be better informed than the others.
Yes, the OLD version of LinkedIn sucked. It was a boring cesspool of snooze-fest corporate updates and press releases, and thousands of people job-seeking. It was basically an online resume storage site, where recruiters mostly hung out.
LinkedIn isn't like that any longer. In the last two years, it has dramatically changed.
Some of you may not know that Microsoft owns LinkedIn as of 2016. It now has a huge financial backing.
Microsoft wants to play ball against social media titans like Facebook and Google (YouTube).
They started changing LinkedIn to operate more like a social media platform, rather than an article post dump. Like buttons, share buttons, video upload capability.
There are now thousands of people creating informative content around the topic of business and professional careers.
Think of LinkedIn as becoming the Business Social Media.
But here is why you should be on LinkedIn...
The main advantage on LinkedIn is the tremendous organic reach potential of your posts. This means far more people will see the posts and content that you create. This won't last forever. Social platforms reward us with huge organic reach potential to entice us to participate more. They control this with their algorithm.
Think of these social media sites as crack dealers. They give you some free product to try, and then you get addicted and want more. They start out by charging you a little, and then the price continues to increase over time.
Right now, that crack is basically FREE on LinkedIn. Very similar to how Facebook was, about 5-6 years ago.
I get it, you want some hard data to review...
Now for some split test results. You need to see hard data to fully comprehend why you should be spending more time on LinkedIn, vs other social platforms.
Compare the images attached. I posted the exact same post on the exact same day. These are where they stand this morning.
Facebook Business Page (6K followers) = 484 reach / 33 engage
Facebook Personal Page (7K followers) = unknown reach / 162 engage
Instagram Business Page (9.3K followers) = 2063 reach / 210 engage
LinkedIn Personal Page (4.2K followers) = 2130 reach / 39 engage
Results divided by follower count, shown in percentages:
FB Business = 8% reach / 0.05% engage (super weak!)
FB Personal = unknown reach / 2.3% engage
Instagram = 22% reach / 2.2% engage
LinkedIn = 51% reach / 0.9% engage
If you are a business owner, you really should be putting some effort into building your presence on LinkedIn, especially in 2020. You won't find cheaper attention for your business or personal brand.
While you are there, connect with me at https://www.linkedin.com/in/tonywhatley/
-Tony
Stop Wasting Time With Meetings
Seeking New Opportunities
I really dislike the phrase used in the title of this article. I've used it, before.
"Seeking New Opportunities"
This phrase can be found on numerous LinkedIn profile descriptions, on any given day. Corporate roles come and go, as sure as the sunrise and sunset happen each day. Thousands of good people eventually lose their jobs. The reasons are many; Industry downturns, weak corporate leadership, mergers, or poor financial performance.
Many times, the catalyst that leaves you unemployed is something beyond your control. It was someone else's decision. You feel helpless, and cannot do anything about it.
Your response to this unfortunate event is typical. You've been here, before. Driven by desperation and anxiety, you review your resume and update it, in hopes of including some magic that will attract the eye of potential employers. You freshen up your LinkedIn account. You comb through your social media accounts, to be sure no red flags are present. You begin reaching out to people you haven't spoken to in years, feeling awkward about it, asking them for leads or possible jobs.
We hate experiencing this. Yet, so many of us keep placing ourselves into the same situation, time and time again. We keep allowing our livelihood to be controlled by other people. We are always one decision away from being jobless. We are brainwashed by society, and our peers, that this is our only option. We must "find a job" and go work for someone.
I grew up watching my dad getting laid-off a few times, during his oil industry career. I saw the pain and felt the stress levels increase within our household. I've been part of three oil downturns myself, in my 25-year career in oil. It seems that every 5-7 years, another wave of cuts comes around, and employees are forced into survival mode. It is such a terrible mindset to have to exist and operate within.
You need to start betting on yourself. You need to stop allowing your career to be someone else's decision. You've invested in yourself. You've gained experience and skills. The world needs those from you. Invest in yourself, and learn even more skills and knowledge. This is a never-ending process.
In 2001, I started my first LLC company. There were many years that my income from that side business, exceeded that of my corporate salary. In almost 20 years now, I've never had to worry about the downturns. I never had to worry about my bills being paid. I worked corporate roles because I enjoyed many aspects of it. But, I always had a parachute in the form of personal businesses.
You can do this. You need to believe in yourself. Quit focusing on building the dreams of others, and work towards your own. Life is way too short, to just pay bills and die.
Tony