When being interviewed recently, I was asked what I thought was the #1 mistake business owners make.  (Watch the interview here!)  Anyway, the mistake is THIS: listening to their peers.  Doing what they see others do.  The BLIND leading the BLIND.

A couple of years ago, I posted something about a wealth / abundance author and coach putting out a desperate “fire sale” of his materials — all of which taught you how to amass great wealth.  He honestly (and admirably) confided his reason:  he needed the money to pay for a $4K home repair.  I admire his honesty, but he’s been teaching and preaching wealth and abundance… So the fact that he needed money urgently for a home repair was in direct contradiction to what he was trying to sell you.  I wonder how many people noticed.

**In his defense, I’m not sure he “needed” the money… I think he actually WAS quite wealthy, but had been advised to have a “reason” for a sale.   The advice was good.   But, the implementation of that advice fell way short of what would have been ideal.**

Moving on.  TODAY, I saw something FAR more eye-opening.  I see this coach posting constantly across social media platforms.  Last week, this person exposed that they needed to “wait for cash” to buy a new release DVD.  Today, the coach is showing others how to have a five-figure month.  (??)  (HEY– I’ve been there.  I once went three days without power — in college, because I couldn’t pay a $73 power bill — and early in my business, remember  not having $6 to buy saline solution and using water.  I’m not judging… but WHICH IS IT?  Are you making gobs of money and showing others how to do the same, or are you too strapped to by a DVD?)

Another example, again from an expert…   BOTH POSTS the same day:

The first complaining about not being able to lose weight, and having gained BACK all they lost… and another offering a weight loss product.

I stand amazed.

OVER-assuming your target market’s “intelligence” or “sophistication” is bad.  BUT under-assuming their ability to see direct contradictions… far worse.  IMO.  =) Happy Hump Day!

So, if you’ve been with me for any time at all, you know that I began this journey of entrepreneurship as a way to stay at home with my first baby.   THAT was what was most important for me. No childcare.  No babysitters.  Just replace my corporate income, but work from home around my baby’s schedule.  Somewhere along the line, I made a very personal declaration about my work — and that simple decision has made all the difference.  I hope it encourages you! Happy Valentine’s Day!

 So, I want to share with you two of the TOP mistakes made by small business owners.  These mistakes cost us time, energy, opportunity and money.  I know, because they’ve cost me dearly.

1) We put too much stock in what we “feel like ” doing.  Yes, we’re the boss.  Yes, we make the hours, rules, prices, etc.  We can pick (and fire) our clients, choose what we wear to the office, decide on our commute, and more.  And I think we should revel in and celebrate these perks.  However, we must also  have a strategic plan to grow our business, and we must execute that plan REGARDLESS of how we feel.  What I ask my clients to tell me is what they can COMMIT to… what they’ll do regardless.  

Think of business like your weekly “long run.”  When you’re sitting on the couch, comfy and warm, it never FEELS like a good time to go running.  However, once you get moving… you’re glad you did.  Business is the same way.  Be strategic.  Be consistent.  Have a list of non-negotiables that you’re committed to — regardless.

Oh — and throw that emotional thermometer away.  It’s of no use to you anymore.  =)

2) We listen to too much of the wrong advice and we IGNORE the one guru we should embrace, follow, and listen to  without exception. The wrong advice is typically that of academics and theorists, the biased B.S. clogging up the airwaves on national news stations,  and the opinions of your peers.   None of this matters.  Most of it is wrong.  A lot of it can cause your business harm, should you take action on it. So, be safe and ignore it.

Instead, pay attention to — and take detailed notes on — anything the top business guru shares with you… because this guru is ALWAYS pointing you in the right direction.  The guru’s name?  RESULTS.   Yep.  Results.  We need to put more stock in the results we’re seeing than any other indicator in business.  Look at all you’re doing.  What results are being created in your business?

Learn to track your results.  Measure them.  And then, learn to take direction from RESULTS.  Success leaves a trail, but only every time.  Wondering if something is working or not, look at your numbers. Look at your sales, your bottom line, your incoming inquiries, your  closing ratio, whatever is most important to you.  Look at the results.  What do THEY say?

Your numbers are your business mirror.  Trust them.  They’ll never lie to you, never steer you wrong.  =)

As a side — probably preliminary — issue:  What ARE you tracking and measuring in your business?  The key to your success lies here.

I see way too many business owners pushing their goals further and further into the future — and I’ve seen it in myself.  After a bad day, we’ll say, “Don’t be so hard on yourself, Michelle.  Tomorrow will be better.”

And we’re even willing to let an entire WEEK go by without substantial production, income or progress towards our goals.  We’ll say, “Oh– you know… it was the week before a holiday.” or ” Give yourself a break. You were under the weather.”

Here’s what I realized — I mean, really, truly realized and embraced —  almost exactly one year ago today.  A WEEK is a LONG TIME in the grand scheme of things. We only have 52 of them to reach our income and business goals.  If your business income goal is even MODERATE, you can’t afford one week without sales.

And, you know, while I’m on a roll… a day is a pretty substantial investment in your business too.  EVERY DAY counts.  Which means  – you should hold EVERY DAY accountable.  Because, today is all you have. Period.   Look at your business goals.  What must you do / accomplish TODAY in order to move measurably closer to whatever you’re after?  Where have YOU been too easy on yourself?  =)

In my experience — and that of my clients — slashing prices trains your clients to come to you ONLY when there’s a sale.  It also attracts the deal seeker, otherwise known as the cheapskate. Never good.

So, for those of you still thinking that I’ve lost either my mind  – or, alternatively — my connection with reality, I’ve composed a two question “TEST” that will help YOU decide whether or not YOU should be competing on PRICE.

1) Can you be SURE — or, are you WiLLING to be sure — that you are the absolute CHEAPEST option your target market can find?

Now, most people will say, NO.  They aren’t willing to be the ABSOLUTE CHEAPEST option. I mean, how can you compete with those big box retailers and on-line giants?  Okay, then… you’re right. So, let’s move on to question TWO:

2) Is there ANY VALUE AT ALL in being 2nd cheapest?

The answer, always, is NO.

**There ARE some ways to use discounting… BUT — discounting is like a loaded gun.  Use it with extreme caution and even MORE strategy.