5. You Don’t Understand the Psychology Behind Why People Actually Buy Anything
Making money is a fantastic thing, but if you have no idea what drives people to buy, then you will not get far. People often know when you are trying to make money off of them, and it’s why many entrepreneurs who, although could be excellent innovators and businessmen, are often bad salesmen – they sound like they are only acting on their own interests.
Always remember the following solid marketing principle when making your next big entrepreneurial goals: people are inspired to take action (translate: BUY) either out of a desire to gain or because of fear.
Just think about how these two emotions play into why you have ever bought anything ever in your entire life. Let’s frame this in a really simple example – you choose to buy your friend a gift for his birthday. What drove you to buy that gift? In the end, it boils down to one of two options. One, you wanted to gain the feeling of being a good person who thinks about others; two, you may have feared that, if you did not buy your friend a gift for his birthday, he would think of you as a cheap person, and you may fear losing his acquaintance by not buying him anything.
The same principle goes for more practical things, like weekly grocery shopping; you buy this food for two reasons. One, you want to gain food for your upcoming week, and two, you inherently and biologically fear the feeling of being hungry and unhealthy. I promise you that the ideal of gain and the prospect of fear are the two basic reasons you have bought anything in your entire life.
4. Ideas That Are Sterile and Inanimate
People love to experience a wide range of emotions, and that should be a critical factor to keep in mind when choosing how to present your next venture to the world. Your ideas should be brimming with excitement, innovation, and passion, and should always demonstrate a worth of high value.
When your next big venture sounds like something that has been done a thousand times already to other people, it will probably feel sterile to them. Working with technology, blogging platforms to connect to your audience, interesting niches, and producing exhilarating, convincing videos that demonstrate your product will make your ideas come to life.
Also, your ideas will always need seemingly inhuman conviction – by setting driven, animated goals, others will note the passion behind your ventures, which can be utterly infectious.
3. Following the Ultra Lame Doctrine of “Doing What You Are Told”
It’s a fantastic accomplishment if you have networked with other entrepreneurs and start-up businesses. Especially if these people take on a mentor-mentee role with you, the advice they can provide for you can translate into instant value for your upcoming business.
Successful businessmen, professors, and mentors are incredible resources that are likely able to provide not only excellent lessons, but also savvy tips for being a creative, successful entrepreneur. That said, just because your mentor tells you that you should do something does not mean you always have to do it. Being independent is one of the tenets of true entrepreneurialism, and seeking the permission of a teacher for your next big entrepreneurial project is hardly a qualifying factor for the ultimate prize: monetary autonomy.
2. Your Business Model Makes No Sense
Anyone can choose to start any company, create any product, and go “into business” in America – that is the beauty of having freedom and democracy as a cornerstone of your life. But, in order to make it to the depths of successful, wealthy entrepreneurialism, you simply have to have a very profitable business model. A business model is so much than just about “selling a product and making money.” You have to work to acquire customers, develop a mailing list, get your product into the appropriate venues for selling, create an automated purchasing system from your web site, strategize your sales, sell your inexpensive products to entice your customers into buying your expensive products, and that’s just the beginning.
Sometimes, an entrepreneur’s business model does not make any sense; such was the case of Rolo Doc, a digital platform that brought doctors together with social media, which Mark Cuban decidedly claimed was the “Worst” pitch he ever heard. The reason? The only business model these guys had was “bringing doctors together with social media,” which is not a business model. Bringing together your audience with doctors via social media sounds ok on its own, but they never explained the benefit of adding social media to the medical community. In their pitch, they finally said one thing about their business model, which was “targeted advertisements.” True, targeted advertisements are the basis of many businesses, but two words cannot sufficiently summarize an entire business model.
1. You Are Not Good At Managing Time, People, and Money
If you want to be an entrepreneur, there is no doubt about it – you absolutely have to be an incredibly efficient manager. Time is possibly the only commodity worth more to you as an entrepreneur than money, but if you are not able to manage your time and work on your business every single day, then there is no reason for other people to pay attention to your business as well. In addition, you likely will have people working for you, money to sort out, and a whole number of other issues that require excellent managing from the owner every single day.
If you are absolutely not able, no matter how hard you try, to manage your own resources, then you have two options. One, give up, or two, hire someone who is excellent at managing, and provide for them salary and/or equity in your business. Trust me when I say this, you absolutely need to manage your resources as efficiently as possible when you are an entrepreneur.
So those are ten reasons why many entrepreneurs never make it, and always remain in the mystical purgatory of “fake entrepreneurialism,” otherwise known as wantrepreneurialism. If you need some advice on how to follow through on your entrepreneurial dreams, then shoot me an email.