[00:00:00] Taylor: [00:00:00] Hello. Welcome back. This is Taylor Darcy coming to you after the last episode talking about your goals as an entrepreneur. Or rather keeping the end in mind. What’s your purpose? Why are you starting a business? What is your goal is to have a disposable income, or is it to have flexibility?
What’s your goal? We’re going to talk about getting to your goal or the mistakes you will inevitably face as you work towards your goal. What do I mean by that? We’re all human. That’s just the reality of it, and you’re going to make mistakes.
And so one of the mantras that I adopt is firm in your goals but flexible in how you get there. Now for most business owners, it’s pretty simple. The greatest strength of any small [00:01:00] business, and I’ve said this repeatedly, is your ability to pivot. If something is working, then obviously you want to keep doing it, but if something is not working and you’ll know what I’m talking about here if something is not working, the last thing you want to do is keep putting time and money into something just because you want it to work.
Now the problem comes from not knowing when those two times are. The wisdom of knowing when to quit or when to keep trying, because it might work out. That’s that is what you need to focus on. That is you, that is the point of that, of looking at that because once you start evaluating it and.
The best metrics I can tell you is there an ROI of return on investment on what you’re doing? Is there value to it, or have you just been putting good money after bad and it not working and you’re getting nowhere? That it’s usually pretty apparent that something is not working. It’s not too much that when you are looking at what you’re [00:02:00] investing your time and money into that, you’re going to be, Oh man, it’s usually your ego. It’s usually your ego that’s keeping you from doing something. It’s not usually money. Like your time, you might love it, but if you’re not making money off of it, why are you doing it? From an entrepreneurial standpoint, then it should be a hobby. If it’s a hobby that’s different, but if you’re trying to make money off of it, then that should be your goal, and so when I was saying earlier about your ability to pivot, what do I mean? Stop doing what’s not working and try something different.
Why is that your greatest strength as an entrepreneur? Because big companies, they have more resources, but their ability to pivot is significantly lower. Think of the Titanic. Think of big, giant airplanes. It takes a lot of space for those to turn around or change course [00:03:00] takes a lot of people moving different pieces and parts.
And that’s what happens with these large companies. Think Apple, think Microsoft thinks Google. And because there are so many people with egos involved and so many people with, Oh, but I want to do this, and I want to do that. And so, they can’t move very fast. Not with the speed at which you as an entrepreneur, as a sole or entrepreneur or, you and your partner.
What do I mean by that? What should that mean for your decision-making process? It’s pretty simple. If changing something, you’ll know faster if it doesn’t work than someone trying to run a massive business because it won’t take so long to implement it. If you can change your business name, right?
If you find that your business name isn’t striking the chord, that you’re hoping it would don’t stop. Don’t go out of business. Change your name? It’s hard. It’s a little challenging, but [00:04:00] it can be done. There’s nothing that says you have to stay with what’s doing because your business name doesn’t work.
Think of, for instance, when they named the Chevy Nova, which in Spanish, if I’m not mistaken and if anybody’s listening to this, I apologize in advance if I’m wrong, but no VA means no go. Eh, imagine naming the car Nova. That means no, go. In Mexico, the sales from what I’ve read and heard are that the Chevy Nova was dead in the water, but they didn’t realize that.
For instance, when working at a credit union, they opened a branch via freeway. It was five miles difference because of the way that the highway had curved and angled. But when you drove at the branch to branch they didn’t; it was only a mile and a half.
That was a pretty decent-sized mistake, and they tried to make it work, and it just never did. And the [00:05:00] branch ended up closing because of it because within a week of the new branch open everybody thought we were out of business, they’d come in because there were no cars in the parking lot. After all, it was so slow. People thought we were closed. And so they just keep kept going to the other branch. And they made a mistake and rather than make better choices they just doubled down and said, let’s just make that the main branch, even though we’d been there 20, 30 years, the branch that I worked at.
What I’m getting here is that when you’re starting a business, use these opportunities to your benefit, use the ability to, your overhead is low, right? Imagine what it takes to run Apple or what it takes to run a Google. If you start your business, your overhead can be fairly minimal.
Think website, think email, address, think real simple marketing, even social media marketing, which can be crazy effective and for meager money, right? You can spend either nothing just telling people about what you do. I do, I’m on [00:06:00] Facebook, Twitter, LinkedIn, that type of thing, and It doesn’t have to be an expensive process.
It used to be, when my parents owned their business, the only way to get your word out was either mixers and business cards, or you had to go to chamber meetings or for instance. My dad used to pass out flyers on people’s doors, and that was a marketing technique.
But the problem was that who knew if they needed their carpets cleaned, who knew that even had carpets, you can narrow your focus down so much with Google ads, Facebook ads, that you can establish this relationship that will help you get the clients and customers that you’re looking for, you can build a million-dollar business through Facebook and Twitter and LinkedIn and all of these different resources and not spending a dime on advertising.
That’s pretty amazing, and now Google ads, obviously there’s money in Facebook ads, there’s money to be spent. But my point is they’re very targeted. They’re not like they used to be like when my [00:07:00] father would throw out flyers, you never knew, really knew who was going to get what you never knew, what they were going to spend. Who was going to respond? So, you could get a thousand flyers printed, for pretty cheap. It was a couple of cents, right? Maybe a penny, a page, and then spend your afternoon walking around a neighborhood, and you might get maybe one job. And but you then had to earn money, right?
So, you spent several hours earning that money or several hours getting it and your actual cost per hour. If you spend, two, if you get paid $200 for a job, and you spent eight hours throwing, pushing out flyers, and then another hour and a half to make it, then your actual cost per appointment, you got to divide that 200 bucks by that nine hours.
And know now versus you can pay Google and started a reasonably low price, 10 cents, a $2, a dollar, $15, $20 a lead, and you follow up them imagine spending $20 and it’s taking you 10 minutes to get. $200. So, you’ve just 10 [00:08:00] extra income, right? and that’s huge. You didn’t, you multiply that by a thousand, and you’ve got some serious cash coming in.
And so the, and that’s kind of, my point is like, for instance, with Google ads, if you’re spending money on Google ads, great. But make sure you’re getting a positive ROI on it. Don’t keep spending money. If it’s not working, like, for instance, my business, I advertised on Facebook, and I saw little to no ROI on it, and I let it go, and I let it go, and I thought, let’s just keep going. Let’s see if I can earn some, one client, that’s all; the logic has got one client will get me what I need. The problem is that I’m spending money that is not getting me money Versus on Google. If you’re advertising on Google, its people are actively searching for what you’re looking for.
And you have that opportunity to push them to a landing page or a website. Now that we’ve talked a little bit about pivoting and making good choices let’s talk about your mistakes. And you’re going to make plenty of them.
That just gets over it. And I don’t mean to be mean or harsh, but making mistakes is number [00:09:00] one, part of being human, but part of life, but also, more importantly, it’s part of being an entrepreneur. If you make a mistake, the worst thing you can do is stop. And what I mean by that?
Yes. Stop making a mistake, but more specifically, stop doing what you’re doing, just because you made a mistake. Dust yourself off, get back up and keep trying and keep moving and keep pivoting it. There are so many. Success stories would never have been success stories if the person would have stopped too soon, and so you, I need to focus on building the strength. In the previous episode, we talked about what happened when my apartment flooded; I’m sitting there underneath the sink, trying to get the water to turn off. And it was everything in me to get in there because the water and the spray, and it wasn’t a mistake.
I did it wasn’t anything, but. That’s how you have to be when you’re an entrepreneur, you have to sit there, and you have to stuff, that. It’s not fun. It’s not enjoyable. I’ll give you a great, for instance, I have an opposing counsel on a [00:10:00] matter I’m working on right now, who is an absolute nightmare.
This guy is unprofessional as they come. He threatened sanctions threatens, going to the da for-perjury charges. He is Julie, the worst opposing counsel that I’ve. I have dealt with, and I’m not looking for sympathy here. I’m merely saying that in your business, you are going to have to learn, do deal with people like that.
How you deal with them. Are you going to sink to their level? Are you going to stoop to their level? Are you going to make better choices? It’s everything in me not to treat them like the two-year-old that he’s acting like. That’s what you want to do. That’s what your, that’s that thing inside of you that says I want to give as good as I get, but I learned long ago that.
And it’s not necessarily taking the high road. It’s about playing the long game. I had a client one time where I’m not even kidding you. I spoke to opposing counsel, and he was belligerent to me, just yelling at me, cussing me out, and I hadn’t even met this person. I’d never known him from anybody.
I had no idea who this guy was, and I, I. Was like, Hey, let’s [00:11:00] calm down. We’re two professionals. And he said I couldn’t take it out on your clients, so I’m taking it out on you. And an attorney gets a bad rap because of stuff like that. And that’s unfortunate too, because not all attorneys are like that, then you get the attorneys that are making choices that are delaying things that are unnecessarily hurting your case, or that are unnecessarily hurting their case just because they want to stick it to you, for no good reason. As business owners, you either need to have a plan to deal with those types of people, because if you, for instance, in the guy telling me, I can’t take it out on your clients, so I’m taking it out on you.
I took the high road, and I wanted to lash back and yell at him and do what you know the natural thing to do. But I realized by keeping my cool that I would get a better deal for my clients. And. So I sat there, and I took it, and then I went back to him, and I talked with my clients about everything that was going on and it’s true.
I ended up getting a great deal for my clients because they, because he. I didn’t restore it. I didn’t fight back. [00:12:00] And so sometimes you have to do that, I’m not saying to be a pushover. Don’t misinterpret my words. I’m saying be strategic, right? Be strategic in your thinking.
Be strategic in how you react to the inevitable. The inevitable is you’re never going to have your; I shouldn’t say. You’re going to have things come up. You’re going to have supplier as if you’re buying and selling things that aren’t going to play nice. You’re going to have people that want to put weird stuff in contracts.
By the time I have clients, I see that I can’t believe someone’s trying to put something in a contract. It’s good that I’m reviewing it because otherwise, they would be getting screwed, and I have to bring it back to this, my parents’ business would have been significant, would’ve been significantly more.
Had they’ve had someone like me. That’s why I do what I do because nobody reviewed their contract. They didn’t know that they shouldn’t have put something in there or that they should have put something in there. It wasn’t their fault. They weren’t attorneys. That wasn’t their goal.
That wasn’t their objective. And so, by having someone, and I’m not saying me, I’m just saying in general, having someone on your side that can advocate [00:13:00] for you and help you see those potential errors coming your way. I would have counseled my clients entirely differently. I would have said; it’s not worth signing that contract.
And I’ve said that before and my clients are free to listen or not. Listen. And I’ve had that happen, where they choose, yeah, listen to me and that’s perfectly fine, but at least they know the consequences. And in one instance that happened, had a client that was pre-COVID-19 signed a lease with the personal guarantee; for those of you who don’t know what that means, it means that if you own a business entity, such as a corporation or an LLC, when you’re especially new.
Then, a lot of landlords especially will ask you to guarantee personally. And what that does is it goes around the liability shield that we set up for you to make it so that you’re personally liable for that contract. And I told them that you shouldn’t sign that. And he said, it’s the perfect place it’s the ideal business. And not more than two weeks later, COVID-19 it. Now talk about bad timing, and now he’s struggling immensely to get, to work on his business. And that’s a terrible place to be in. Knew what [00:14:00] he was doing. I advised him differently, and he made a choice, and all he has to do. I never say I told you so because that’s unhelpful, right. Nobody ever has benefited by saying that. So, you’re going to make mistakes. How do you address those mistakes? Are you do you take responsibility for them? Do you complain? Do you give up just because it gets difficult, or do you take a moment, take a deep breath, and then get back at it.
Do you have someone that? Hurts you, do you sue them back, or do you move on with your life now? And I’m not trying to counsel you on what to do because I’m not in your shoes, but I’m saying be strategic.
There are people like Martha Stewart, for instance, you don’t mess with her intellectual property, she will sue you, and she has no issue with it. And it doesn’t matter what you did. Some people out there will just sue, no matter what, because they don’t want ever to be perceived as weak. And so, they come off as being problematic. And every business has to find their groove.
Some people will not enforce a contract to save their lives. That’s their choice, [00:15:00] but be strategic. Make your plans outside of Mo the moment, right? Don’t make its plans when someone makes a wrong choice that hurts you because you’re reacting instead of acting. When you sit down and develop your goals, the key is to be flexible in that approach.
And I talked about that earlier, be flexible on how you get there, right? Set your long-term goals. What do you want to make in a year? What do you need to make in a year? Here’s what you need and what you want, and then get it. Then, a lot of people are afraid. And they, they make decisions based on fear, right?
If you have a strategy, you don’t have to make a decision based on fear anymore. You’re making a decision based on your plan, right? And so, emotion no longer has the same effect on you. And I’ll give you a great for instance, When I’m part of a group of people, called Leda or live every day, August and it’s for going live streaming, and a lot of people are afraid of being on camera. Many people are scared that people will hurt [00:16:00] them or misjudge them or let’s take a more relevant issue. Let’s talk about podcasting, right? I’m starting a podcast. This is my second episode. Here’s a lot of people that let fear dictate what they do.
There was a saying, I can’t remember the specific, but fear has killed more dreams than anything else. So, the opposite fear is action. An acronym for fear is false evidence appearing. Real. I want you to think about that for just a second, false evidence appearing real.
That’s pretty interesting, right? Because. We all have fears. That’s just the reality we live in. Some people are afraid of Heights. I would guarantee that most of you listening are fearful of failure. So, what’s the solution? Fail faster. Try it. If it doesn’t work, move on, keep trying something else.
Don’t be afraid of failure. Because when you’re scared of failure, you lose out on a lot of opportunities. You lose out on opportunities for success. What do I mean by that? There’s a lot of conservative approaches out there to business. There’s a lot of risky [00:17:00] approaches out there to trade. And the magic and I’m not suggesting, mortgage your house to start your business.
I’m not saying you don’t; I’m just saying, be comfortable with risk. You need to be satisfied with some trouble in your life. I’m not talking bungee jumping or skydiving risk. I’m talking about having faith in yourself, having confidence in your product, having faith in your abilities, succeed. Don’t get lost in the weeds, right?
Don’t let that false evidence that’s hurting. You appear real. Take a step back; an answer is what you’re enduring fear or fact, which is why I said earlier about using metrics, return on investment to make your decisions not based on your ego. There’s a lot of people out there that they want to run their own business forego.
They want to put a title behind their name, and I’ll tell you, most people don’t care about labels. It’s just not, it. Most people care about how you treat them. Most people care about the product that you deliver the substance. That’s what people care about. They don’t care that you, look, 90, when you are 50, they don’t care [00:18:00] that you’re not the most beautiful person in the world.
They care that you do a good job that your product solves a problem. I solve a problem for my clients. I don’t, and I do it in a way that lets them know that problems can be solved. Now I can’t solve every problem, but I do my best to solve every problem my client has within the law’s confines and the confines of decisions.
So, when you’re, looking at your goals, if you identify your client’s problems and you’re working on solving them, then I can guarantee you. There will be minimal risk, and you will meet your goals. And that’s very important because when you are making these choices as a business owner.
If you get too [00:19:00] stuck in something, your failure comes, think Blockbuster. They passed on Netflix. Talk about kicking themselves now, not even kidding you. They gave on Netflix because they decided that they felt that people liked coming to the store. Now, they’ve been out of business or will be out of business for years because of the online market or just buying things instead of over renting them.
But think about what would have happened if they’d have been in business during COVID-19; how would they stay in business? They wouldn’t, that’s just the reality. They can’t; I can’t stay in business doing, Doing that, right? Because they need that physical product. Netflix is booming, think Disney plus.
[00:20:00] Disney released Disney plus right before the pandemic started, and then they started releasing films that had just been out. And I guarantee you that they began to making bank of that then to close Disneyland, Disney World, all that stuff. But they started making bank because they made an excellent strategic choice, right?
They didn’t make it based on emotion. They made it based on current reality. There are so many people like friends right now during COVID-19 people think I’m crazy, but I promise you that now is a great time to start a business. In my previous episode, we talked about that the barrier to entry is low right now because you have more time.
All the time that you save from going to your regular job or all the time that you save from having to waste time in meetings, that you shouldn’t have even been wasting time in meetings, in the first place. What do I, so you’ve got this situation where you’ve got an opportunity here? I’m not saying the pandemic is an [00:21:00] opportunity.
I’m saying what you do in the context of the pandemic is your opportunity. Why? Because you know how you now have choices that you did not have, or you have options that you did not have six months ago, a year ago, and some people that look at this. Some people will look at it in any bad situation, no matter how bad.
And we’ll find every reason in the book why they can’t do anything. And then you’ll have people that find the least difficult situation and still find an excuse, and the magic is the people that look and see the opportunities—the opportunities to help.
I’m not saying to do anything unethical, like the guy in, back East in a, what was it I want to say Baltimore area, who hoarded all of the hand sanitizers and he, although smart [00:22:00] strategically, he was charging $150 an ounce. That’s, that’s unconscionable, in my opinion, in the middle of a pandemic, I’m not talking about doing that, not talking about making that decision.
I’m talking about making a decision that helps people during these moments, That, I’ve said this to many people many times, but here’s the exciting thing. People show you their true colors when the chips are down, all right, look at a business when they make good choices, and they’ve got tons of cash flow, and there are no issues; it’s easy to be good.
For instance, customer service, this is what my things, there’s never a perfect company, right? Companies make mistakes, and people within the company make mistakes. And here’s the issue, though? What happens then? How do you treat your customer when you make a mistake?
Do you blame it on the customer? or do you make the choice that says I screwed up? How do I fix this, right? Take responsibility in that respect, especially for your company, especially [00:23:00] when you’re in that position of power. So, don’t think that people expect you to be perfect, but more importantly, make sure that your decisions are based on evidence, right?
Not emotion. Should you start a business? I don’t know. Is there a market for it? Maybe find out, use some of the things, use a Google survey, right? Google forms for free, literally no money out of pocket. You could send that Google forms to all of your friends on Facebook, Twitter, LinkedIn, asking them what they want. Crazy.
Don’t think because you think it’s something that somebody wants that they want it, because that might not be the thing that’s important to them. The thing that’s important to them could be something completely different and if you try selling sand at the beach. Nobody wants that. Of course, you’re going to go out of business. [00:24:00] no, duh. If you try to sell sand at the beach, you’re done, but if you sell sunscreen at the beach, you’re in business, you re’ making some money, some serious cash, selling sunscreen at the beach makes sense. Selling sand doesn’t. So, when you’re thinking about whatever it is that you want to build as a business, take a step back. And find out what people want. You’ll be a hundred times more successful by finding out what people want.
Don’t try to sell people sand when they’re at the beach, don’t try to sell them snow when you’re in the middle of winter; they want hot cocoa. Then what coffee they want tea. Hey, that’s what you want to sell somebody. That’s when you make your money. And if you look at almost every success story, nearly every success story, [00:25:00] it’s about selling people, the things they want when they want them.
People will find amazing ways to spend money on things that they want. You ever noticed that they would rationalize that heck out of buying it because they want it. They want the status, the money, the feeling that it gives them; people are very emotionally driven. People want to either go towards something or avoid something.
It’s quite binary. It’s either, or it’s not both. They want something to happen, or they don’t want something to happen. Think of the sunscreen example, somebody is out there, they’re sitting there, and they got their kids in the car, and they forgot all about sunscreen, and they get to the beach, and they forgot to sunscreen, and their kids are crying [00:26:00], and they want to go to the beach and are like, sorry. Little through the, we can’t go to the beach. Mommy. I forgot. It happens. It’s natural. So, at that moment, that mother wants to satisfy her kid.
By going to the beach, I spent a day watching him play in the sand, enjoying playing with the waves crashing around them, and enjoying sometime in the sun. But she can’t in good conscience subject her kids getting sunburned. That he’s, he or she is a lobster, that’s just, people start throwing around child abuse and neglect.
When you do stuff like that, so you’re at the beach, and you’re like, Hey, I got these extra tubes of sunscreen, and there’s little, there’s mommy over there with little Suzy to stay, but she can’t all look, I’ve got sunscreen for. And you know what? She probably paid 20 bucks because then she would not find the Walmart.
Even at Walmart, it’s 10 [00:27:00] bucks; you bought it, you thought it was a great idea. There you go. You just doubled your money. That’s magic. Selling to somebody that wants something. So that’s another good point to bring up. How do you know what they want to ask? You’re not omniscient.
You’re a business owner. You’re a human being just like they are using your Google ad, Google forums. Sorry, use Google. You can even use Google ads, find out which person is clicking on what ads you might have a target demographic that you can do. I recommend having someone help you set it up, but for very little money, you could do market research that used to cost thousands.
People put polls in the field that will cost thousands. So, you could start with your free resource of Google forms to you all your friends. All right. Narrow it down to an idea and then take that idea and then use a [00:28:00] couple hundred bucks and find out what sells very easy.
So, you’ve got your demographics over here with Google forms. You got your questions. You’ve got the problems you think you want to have solved, but now you take it to the next step, and you’re yeah, you pay for a couple of hundred bucks worth of Google ads to those same demographics see what resonates with them.
And then when you see what does resonate, what hits that key in there? The dog whistle, I liked to call it, right? If you could find your marketing dog whistle, the thing that only speaks to your target market, right? Your target market is going to be where your magic is. If you’re selling Lamborghinis to somebody or as a dealership, your market isn’t somebody that can’t afford it.
You want somebody that can spend money on it. So, you wouldn’t market to people that can’t afford your services. You’re wasting your money. If you try to over market or try to blanket market, [00:29:00] is the biggest mistake. I see a lot of entrepreneurs making, what if they know somebody?
Guess what? That’s not the way you market to those people. You want to market to build those types of relationships. That’s an entirely different marketing point. But if you’re trying to make a point to point, Think advertisement in the newspaper old school, right? You d