“Truths” You Learned from the Lemonade Stand Go SOUR in the Real World!
This could be the most important article you read about business success, making money, increasing profit and why so VERY FEW businesses ever reach their true profit potential — EVER.
Before I go on, I want to apologize for being too timid about this in the past. I’ve touched on it, hinted at it, and insinuated a lot about this topic. And in not being more courageous, I’ve done you a disservice. On that note, I’m preparing a report that will be mailed to all of my clients, past and present, that delves into far more eye-opening and practical detail than here.
So, YES — I had lemonade stands. As a young kid and as an older kid. They taught me a lot. I learned to set up a lemonade stand when I knew thirsty people would be around. (For me this meant hot days when the cyclists were in my area.) I learned to keep my sales prevention department at bay. (Her name was Princess and she would bark and chase my customers away in a hurry.) I learned how to upsell… and how to serve. And I am grateful for all of these lessons.
But, the lemonade stand was a business mirage… much like overstock.com and other big names we’ve come to recognize as “giants” in the business world today.
You see, I counted every penny as profit. I didn’t account for my true expenses and overhead. I allowed my “investors” (i.e. my parents) to eat that. As I proudly counted my dollar bills, I was ignorant of the KEY word that should drive business: PROFIT.
I’m too deliberate to make a unified enemy out of the business gurus that are most visible in today’s business arena by pointing them all out here, on the internet where all can see. =) Instead, I offer you the following:
- One staggering, but certainly not isolated, fact that you’ll MISS in the smoke and mirrors clouding the judgement of even the BEST and SAVVIEST business owners today.
- A few BEWARE THE B.S. Warnings to heed.
- A few REAL WORLD gurus that — I believe — you can trust. (This is obviously not an exhaustive list and someone’s name NOT being on here doesn’t at all insinuate they’re on the “not to be trusted” list. My circle of influencers is small… so, it’s very possible I don’t even know the name of the guru you may be looking for on my list!)
One Staggering Fact to Get You Thinking About What LOOKS Profitable
and What IS Profitable.
- Overstock.com can legitimately boast sales numbers in the hundreds of millions. Impressive, right? I have nothing against Overstock.com except for this: I had a past client who came to me after investing over six figures of her own savings trying to “emulate” their “success.” You see, they are such a “big name” she didn’t know that then (in 2010, when we met) they hadn’t make one nickel in profit. Nor have they (overstock) made a profit today. Lots of “brand recognition.” Lots of “fame.” Zero profit.
Beware the B.S.
Warnings to Heed
To preface these warnings, I’m going to quote Dan Kennedy for two reasons. One, I can’t say it better myself and second — to keep myself out of some “hot water” in terms of backlash. lol..
“Today it’s easy to go green with envy over seeing some online marketing “guru” bragging about making multi-millions in minutes via a “launch” or flaunting his “new metrics” of social media mega-prominence. But more often than not, the profit is nil or nominal, there’s no stability, there’s no real business at all…. Flights of fancy have their place, for children, for fun, being entertained by a storyteller or magician… but not in your business… There IS a tendency to believe because something or someone is Big and Visible and Applauded, they are also smart and should be emulated. Such an idea cannot be trusted. Only facts can be trusted.”
Side note: If you’re not listening to DanKennedy.com,
you should be. The sooner the better. Now back to those warnings.
- Beware the ‘guru’ pitching you six-figure paydays if the “roadmap” includes events with over 100 people and a heavy focus on jv (joint venture) relationships to fill it. Six figures is the MINIMUM you’ll need to make — and this is simply not to go in the hole financially. Forget the payday. Make much less than six figures for the events these gurus are describing, and you’re toast. PROFIT. Focus on profit.
- Beware the guru pitching you fame and “getting known” as the secret to profit. Being famous is NOT synonymous with profit. Can they both happen? Yes. But you need NOT have one to get the other. NOR is one a precursor to the other. Whoa to the business owner heavily invested (monetarily and emotionally) in becoming famous as a way to being profitable. There’s too much evidence to the contrary. Don’t ignore facts.
- Beware the guru preaching about how secure they are — as you watch them hustle from hub to hub to hub in a chaotic ‘launch’ with crazy numbers of partners and wild bonuses and “please buy now” pushes. Let’s face it, the more financially secure I become, the less I live life according to someone else’s terms. I once lived the hustle bustle hub to hub life. I was FAR more “known” and recognizable with it — but far more profitable without it. WATCH the gurus who you KNOW are profitable. This money is buying them freedom. As we speak, I’m deliberately extricating myself from one of my own brands. Why? Because money freedom buys time freedom. Because I can. Those “gurus” constantly in pitch mode are living that life because they HAVE to. Fight the tendency to emulate them — as they may just scoop you up in their frenzied pace with very little to show for it.
- Beware the brands, personalities and companies desperate to “SHOW” how “BIG” they are. I honestly don’t remember who posted this, but the other day I saw someone announce her NEW “Manhattan” office space. Now, this small town company is “going global.” Woohoo. Truth be told, this person isn’t REALLY getting an office in NYC. She’s getting a NYC phone number and address through one of those shared office space places. But here’s what’s most important… First: Knowingly and deliberately paying NYC prices for much of anything is stupid. Once, when faced with a bill for a boxed lunch — multiplied by roughly 160 people in the room — my partner had to talk me out of faking some catering snafu and handing out power bars with an apology instead. And this was after she rescued me from shock. It won’t happen again. =) Second: when someone is going out of their way to show how BIG and GLOBAL they are, be suspect. Be very very suspect.
Real World Gurus
Running REAL Businesses, with REALLY impressive Bottom lines
Living Life on THEIR Terms
Again, this list isn’t exhaustive. Many times, I’m asked about this guru and that and — frankly — I’ve never heard of them or looked them up. The circle of people I trust enough to influence me is small. I encourage you to take a similar approach. On that note, thank you for making me part of YOUR circle. It’s an honor and a privilege and I DO NOT take your trust in me lightly. I covet it and will protect our relationship as it grows. Here are some other “gurus,” brands and companies I watch and trust:
- Steve Chandler — a provocative thinker and my first and best REAL business mentor. He is a truth teller, has a quick and dry sense of humor that I love and also has a “spiritual” side to him.
- Dan Kennedy — If you’ve heard nothing else about him, read the quote above and visit his site. He’s dogged in his determination to be a millionaire maker — and has a ruthless focus on business. He’s rough around the edges and offends many. But, if you’re here with me… you won’t be one of them! I’ve watched him for more than a decade now. I’ve seen him predict many things in the realm of business, economics and politics. And I’ve never seen him get it wrong. So, listen to him.
- Barry Moltz — is a genius when it comes to business success. I love his books and encourage you to read them. He’s entirely un-phased by what’s popular or hyped or who’s famous. He posts the truth.
- Barbara Winter — wrote the first business book I ever read — and changed my life forever. She made business simple for me by making it about making money. She is a straight shooter and I encourage you to watch what she writes, buy her book, “Making a Living Without Having a Job” and pay attention to how she “does” business.
- I also watch the following “brands” and companies to study their example: amazon.com; disney.com; and a handful of small, niche sites that are clearly enjoying wild profit without the hype.
There are more… but if you MUST LEAVE my blog, lol… go to one of these sites and dig around. Not a minute of your time will be wasted.
