Today we are going to talk about failure. Most of us have been there – especially if you have ever launched your own business. According to Forbes 80% of all new businesses fail within 18 months. This is a bit concerning but it’s not all bad. Some of the greatest businesses and business success stories were built on the ashes of a previous failure. I know there are some of you listening right now who are struggling with feelings of failure. You’ve been working at this, or whatever, for awhile now and you’re not one of those “success stories” you read and hear about. You go online and see the carefully curated presentations of the successes of others and wonder why it isn’t happening to you. The urge is to just give in to self doubt, conclude that you’re not cut out for this, owning a business, entrepreneurship, and financial freedom just isn’t a part of your destiny. Listen – everyone has been there. Think about the successful people you admire (and perhaps secretly envy). They may ooze confidence and seem to have the perfect life. But I promise you they have dealt with every point I’m going to bring up today and the success they now enjoy came through soul-searching, struggle, some degree of self-doubt, stress, and persistence. It did NOT come to them because of a government program, loan, bailout, or training program. Success arises from within – both the knowledge needed for success and the inner drive that motivates effort.
I see new faces in my meetings every week and I’m always glad to welcome everyone to the party. But I usually know within a few moments of conversation whether someone is going to make it in the real estate business. Why? Because I’ve been observing, noting, learning, correlating certain attitudes and behaviors with success for years now. In a few moments I’m going to break down the top twenty reasons for my own failures and the failures of those I observe.
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Topic: Why We Fail
First let’s do some sorting.
- Testing various solutions to find what works doesn’t equal failure. That’s just a way of finding what doesn’t work on the way to finding what DOES work.
- Failing at one task or skill set doesn’t make you a failure. No one can do everything and everyone is a unique combination of strengths and weaknesses.
- A business failure does not make you a failure. It happens to the best and brightest.
- A relationship failure does not make you a failure.
- A combination of life failures – mistakes – errors – even willful wrong-doing does not necessarily make you a failure.
- Pain is not failure. Neither is suffering.
- Poverty is not failure. And money is not necessarily success.
You are failure only when “failure” is your end result. And if you are listening to this today you are not yet at your end. So hang on and see if we can identify with my top 20 reasons we fail.
- We don’t start. We think about it, dream about. Perhaps even get a website (or 50) and form an LLC. Read, study, talk, get business cards and imprinted shirts. But never launch.
- We have a solution without a problem. There’s no market desire for what we are selling.
- We don’t understand business.
- Startup considerations.
- Making profit
- How to hire,
- How to supervise,
- How to manage
- How to lead
- Financial obligations
- Business planning, forecasting
- We don’t understand THIS business. You don’t know what you don’t know.
- Wrong Team. We start the business with a friend or a significant other and the relationship is the only criteria.
- No team. We try to go it alone. The problem is, no one is good at everything.
- We let our lack of knowledge keep us from taking a chance.
- We are woefully underfunded.
- We stop planning – revising, testing, planning more.
- Unrealistic expectations (check mark projections)
- Time required
- Difficulties encountered
- Actual profits vs. projections
- Lack of self-knowledge. Especially when it comes to weaknesses / blind spots.
- “If I build it they will come” mentality.
- We get out-hustled. We just don’t know what hard work looks like. The hardest thing in your life when you were 5 looks like child’s play to you now. And if you haven’t put in 6 straight weeks of 12 hour days of actual work (not social media surfing in-between meetings), what you call “hard work” is child’s play to someone who is out-hustling you.
- We peck around the edges. Seminar here, meeting there, talk about the future a lot.
- Quest for perfection. Get everything set up just right.
- We ignore the need for marketing.
- We don’t understand or we ignore our customers.
- Surprised by and unprepared for challenges.
- Overconfidence when it starts going well.
- They give up.
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Motivational Thoughts for the day
- “I have not yet reached all my goals. And by far the most important word in that sentence is ‘yet’”.
[0:17] The show that teaches you how to make money in real estate wherever you are whatever your situation there is an opportunity for you flipping America is sponsored in part by American IRA
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and now you’re sad flipping America guy Rodger Blankenship hello everyone today we are going to talk about failure.
[0:55] Most of us have been there especially if you’ve ever launched her own business,
according to Forbes 80% of all new businesses fail within 18 months.
This is a bit concerning but it’s not all bad.
Some of the greatest businesses and business success stories were built on the ashes of a previous failure I know there is some of you listening to this right now,
who are struggling with feelings of failure,
you’ve been working at this business or whatever for a while now and you’re not one of those success stories you read or hear about
you go online and you see the carefully curated presentations of the successes of others and wonder why it isn’t happening to you.
[1:41] The urge is sometimes to just give in to self-doubt conclude that you’re not cut out for this,
owning a business entrepreneurship and Financial Freedom just isn’t a part of your destiny listen everyone has been there.
Think about the successful people you admire and perhaps secretly Envy they may lose confidence and seem to have the perfect life.
But I promise you they have dealt with every point I’m going to bring up today and the success they now enjoy came through soul-searching struggle,
some degree of self-doubt stress and persistence.
It did not come to them because of a government program or a government loan or a government bailout or training program.
True success arises from within both from the knowledge needed for success.
And the inner drive that motivates effort.
[2:46] I see new faces in my meetings every week and I’m always glad to welcome everyone to the party but I usually know within a few moments of conversation whether someone is going to make it in this or any other business,
why because I’ve been observing noting learning,
and correlating certain attitudes and behaviors with success for many years now.
In a few minutes I’m going to break down the top 20 reasons for my own failures and the failures of those I observe.
When I was contemplating the title for the show today I thought about.
Just making it why entrepreneurs fail but that seems a little impersonal and third person you know so then I thought I would title the show why you fail.
[3:40] And I thought what I would get your attention
and it may cause some people to click on it later on but I realize that can also come across as somewhat are again with the trying to give the impression that I have never failed all my friends I have failed I have failed at life I have I have failed
when I didn’t know what I was doing I failed when I knew better all right I want you to know that,
and if you think of the flipping America guy as a success just know that whatever success there is now is built on the ashes of my own failures
and I’m here today not to preach to you but to encourage you to inform you to educate you and to help you move
out of this emotional state that has that is now holding you back.
[4:31] We’re going to get to that in just a few minutes but first let me tell you how to contact this year at the show and thank you for listening and thank you so much for
all of the kind things that you said and for the good reviews on the various social media platforms I just thank you I can’t thank you enough that motivates me to try even harder to bring you excellence and great information and and useful and interesting shows and so thank you again
you can reach out to me you can find us on the web at Rodger Blankenship. Com that’s Rodger blank
e n s h i p
dot-com Roger Blankenship. Calm and you can send questions about real estate or anything real estate related to.
Roger questions at Roger Blankenship. Calm and you can find us on Facebook,
just look for this show of course I’m on Facebook to not very often but I’m on it but I’m Facebook look up flipping America media and you’ll find the show page.
[5:37] On Twitter and Instagram please follow us at flipping America and I know that some of you listening and I hear you folks in villages of Ocala I hear you you’re not interested in the social media that you don’t care what your neighbors had for supper or all of that that’s fine
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and how you found out about us a couple of announcements we meet every Wednesday and every Thursday here in Atlanta Georgia we’re calling them to flipping America local meetings.
[6:46] Just because you know it’s a local meeting of the flipping America group and maybe we’ll have flipping America local meetings in other places later on but now
every Wednesday for lunch at boronda Italian restaurant at the corner of Peachtree and 3rd Street right in the heart of midtown Atlanta if you are ever in town on a Wednesday looking for something to do come have lunch with us and tell us that
you’re a listener and you’re from out of state and your lunch is on me
then every every Thursday evening we meet at the City Tap,
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and it’s just the topic there is whatever you come talk about that that both of these meetings that’s the case now once a month on the second Thursday of the month we plan a little bit of a special program and we try to bring that to you every month and sometimes will even take the
the microphones over there and do this show in front of a live audience so if you ever want to be a part of that
second Thursday of every month is a good time to be in Atlanta.
[7:54] If you are listening to this on the radio or if you’re listening on iTunes we thank you so much but I want to let you know that you can download the free flipping America app there’s never an in-app charge or upsell or purchase everything is free in the app the benefit of listening in the app
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Failure why we fail.
[8:47] I know what’s around the corner
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[10:23] Alright let’s talk about why we fail first let’s do some sorting out.
[10:29] Testing various solutions to find what works doesn’t equal failure that’s just a way of finding what doesn’t work on the way to finding what does work and I say this to all of you my dear internet marketing friends.
Whether you’re selling a
a course whether you’re selling a product whatever it is you’re selling if you try something it doesn’t work that doesn’t mean you’re a failure doesn’t even mean you have failed this means you found one thing that didn’t work at this particular time and that thing may work later on and they work with just a very minor tweak
it’s but testing is not failure testing is testing,
okay now let’s go a little bit deeper sailing at 1 task or skill set doesn’t make you a failure,
maybe you’re not good at communication maybe you’re not good at details maybe you’re not good with vision maybe you’re not good with
execution maybe you’ve got some weaknesses out there that become apparent when you try to do something listen relax.
Okay no one can do everything and everyone is a unique combination of strengths and weaknesses.
[11:42] Next a business failure does not make you a failure business failures happened to the best and brightest.
[11:52] We could name names here but you get it you understand.
[11:57] A relationship failure does not make you a failure who Among Us hasn’t had some type of relationship failure,
all of us have experienced failure in our lives the key is whether or not we get up dust yourself off learn from it and continue on and that’s what we’re going to be talking about today.
Okay but I’ve got to get a little bit more personal hear a combination of Life failures mistakes errors.
Even willful wrongdoing does not necessarily make you a failure.
[12:38] Pain is not failure neither is suffering poverty is not failure.
And on the other hand money is not necessarily success.
You are a failure only when failure is your end and final result and if you’re listening to this today you’re not yet at your end.
No one is promised tomorrow but you do have today so hang on and see if you can identify with my top 20 reasons we fail.
[13:13] Perhaps you can see a little bit of yourself in this and I honestly don’t know,
weather just this information is going to fix what fails you,
but I do believe that if you listen and if you really have a strong desire to not end up a failure I think you can overcome it
now that doesn’t mean that everyone is going to have the skill set of some of the most dazzlingly successful people you know.
I wanted to play in the National Basketball Association when I was a young man I wanted it really badly but no matter how much I work I was never going to be Michael Jordan or Lebron James or any anything like that.
I have dreams seriously as old as I am I have the occasional dream about having finally made an NBA team even if I’m just sitting on the bench hey I’m on the team
Listen to I was never good enough to even play Division 1 basketball just in case you’re wondering
I am 6 foot 5 and I was a pretty good shooter but I was slow of foot then suffered a little bit from what I call caca jumping oh goddess so if
the standard for my success in life is making the NBA than I am a failure and I will die a failure but.
[14:34] I am only a failure if that’s the only way I choose to look at myself no one can do everything.
Everyone has strengths everyone has weaknesses.
[14:49] So let’s begin now with my top 20 list and I ranked ranked ordered them a little bit and but really the only significant ranking here is the one did I end up with.
It is the last one is the the number one reason people fail and I’m saving it for last you know for dramatic impact and also to keep you listening all right so I’m going to never them one through 20 but number 20 is the most important one.
Alright here’s number one the first reason I could think of why people fail we don’t start.
[15:27] That seems kind of obvious and.
People that well yeah but that’s not that doesn’t even count yes it does because people believe that they have started a business when they really haven’t started.
We talked about it we dream about it.
We might even go get a website or we might get 50 URLs while we’re at it and just you know killing time Surf and GoDaddy and looking for websites and seeing cool domain names it we can get maybe we can build a business around someday.
We might even form an LLC that’s Advanced that’s that’s sophisticated none starting right there,
we read we study we get business cards we get shirts and printed with our logo but we never launched we never do the things that drive us to success.
I see this in the real estate world with people who go to seminars and and get books and read things and they even spend time looking at potential deals on their computer.
But they never go knock on the door they never talked to a potential seller they never execute a marketing plan they just wanted to come to them.
And they wonder why it doesn’t.
[16:46] I’m going to let you in a little secret I’ve had students that have done well and I’ve had students that have not done well and,
as I look at the ones that have done well in the ones that have not done well the the main difference is the ones that have done well have gone out there and gone after deals the ones that have not done well sat there and looked at their computer and wonder why deals didn’t come to them.
[17:08] Yeah you don’t you’re you’re going to fail at this if you don’t start.
And the way to start is to get up and I’m talking to Real Estate Investors get up get out from behind your computer get in your car and go find a house to make an offer on
make an offer go find a realtor to make offers for you find a bunch of Realtors one of them is going to be good at it.
Just get involved in some activity okay that’s number one number two.
Reason I see businesses fail and even real estate businesses fail we have a solution without a problem.
In other words there’s no Market desire for what we are selling,
this is why a lot of businesses fail but fortunately in the real estate business as one of the great things about real estate is if you are
dealing with houses that is Places work for people to live
people always want some place to live one of the things about modern society is this idea of living indoors with a roof over our head it seems to be something that everyone wants okay well if everyone wants it,
then you got something that people want.
[18:22] Know if you have an idea for some sort of an application or a software solution or something like that related to real estate you owe it to yourself to find out whether anybody really wants what you’re about to sell.
Number three this is so much of their so much here about why I see people fail in business in general and in the real estate business we don’t understand business.
I’ve seen this so many times it’s it’s almost sad that it’s so predictable.
[18:56] Here’s a person who has had a job.
It doesn’t matter what the industry and I don’t want to name one because it would seem like I’m picking on one bit I’m not but they’ve had a job for 25 years.
Maybe they were a schoolteacher maybe they were a bus driver maybe they were
manager at a warehouse maybe they were whatever fill-in-the-blank but their job has been to do a job and to get a paycheck and they’ve been doing it for years and years and years
you think that you could run the business better but.
Many many people fail because they don’t understand business.
They don’t understand startup considerations they they just don’t know what’s involved in starting the business and look books I’m I’m telling you.
As long as you are aware that you don’t know these things and are willing to learn them don’t learn them all before you start
okay because an action is another reason for failure remember that was the first thing I mentioned okay they don’t understand startup considerations they don’t understand
what prophet really is they believe that Revenue equals profit they don’t know the difference between profit number and profit margin there so many things about,
profit profitability and Reporting profit and actually making profit that perhaps just we are perhaps just not ready to be in business.
[20:23] I see people fail because they don’t know how to scale their business from beginning points to
other points where they become more profitable now there’s a difference between scale and growth
Gates growth is where your bottom line increases but your cost increase at the same proportion that doesn’t necessarily lead to a higher level of profit ability scaling is when you achieve a,
higher bottom line with a disproportionately increase a disproportionate increase in the activity in your expense.
[20:59] So you have to understand scaling and what do you have a scalable business and and one of the best two examples of that is not original with me I got it out of a book I read but it goes like this
chills mechanical pencils he has a very good mechanical pencil one day he gets an order for 10,000 mechanical pencils he’s having a very good day all he has to do is call his supplier in order 10,000 mechanical pencils and he’s really having a great week.
Bob is a personal life coach.
And he develops his skills and he’s very good at it and one day 50 new people show up and need a personal life coach but that’s more hours and Bob has to give them so what does Bob do.
On that day Bob wishes he was yelling mechanical pencils.
[21:44] You see the mechanical pencil business is scalable anything that solely depends on your investment of your time is not scalable.
So you have to understand some things about scalability real estate can be a scalable business but it is not going to be scalable if you’re painting every house it’s not going to be scalable if you’re intimately involved with the details of every deal
so you have to understand what
scaling is and how to do it and I have actually had friends who made fun of me because I talked about scalability and portability when it comes to the real estate business they made fun of me.
[22:23] Yeah well mine song going to say about that.
Another thing about business that we don’t understand is Staffing and boy this is one that kicked me in the fanny how to hire how to supervise how to manage and how to lead there’s a difference between managing staff and leading staff and
the right ways to do it if you want to know all the wrong ways to do it just watch the office now you know you find it on Netflix and you’ll see every wrong way to manage and lead a staff team and you can probably learn some things just know that everything that he does is wrong
and obnoxious but anyway,
Staffing is a big part of what we don’t know about and even even when to add staff and how to strategically place staff.
And I’ll say more a little bit about Staffing in a minute but Financial Obligations what are the financial obligations of the business in a business owner there more than you think and not necessarily what you think
if you don’t know that means it means we got to take a break we’ll be right back.
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[25:24] We’re back on Rodger Blankenship and I teach people how to make money in real estate today I’m teaching you why we fail.
And we were talking about the things we don’t understand about business when we went to the break and,
what we don’t understand about business that’s review startup considerations making profit scaling Staffing how to hire how to supervise how to manage out a lead Financial Obligations of an Angel obligations of a business just little things like payroll taxes that
unless you run a business you don’t really know what’s involved and I see so many people with these Rosy scenarios,
who forget that there are there’s a lot of money that’s going to go to the government when they start making this kind of money and that brings us to taxation taxation tax planning business planning and forecasting there so many things that we don’t know and you know.
[26:17] Someone asked me a few weeks ago what’s the key to being a good real estate business person my initial answer was be a good business person,
this is a business,
now I understand you could do this as a hobby and that’s fine I’m not really talking about you I’m talking about the people who want to leave their career and do real estate full time,
I know a lot of them are listening right now a lot of them come to my meetings and I’m telling you,
you owe it to yourself and you must must must find out what it takes to run a business I’m not going to teach you in the next five minutes I couldn’t teach you in the next 5 hours
you owe it to yourself to get out there get the knowledge get some books subscribe to some people listen to this show a lot but
find out what you need in order to run a business.
Okay so that’s actually reason number three we don’t understand business.
[27:13] Reason number four is we don’t understand this business.
[27:22] Apart from knowing general principles about running a business when you got to know the business that you’re in and this is a real estate show so we’re going to talk about real estate here it is amazing to me
what how people want to dive into this business and they don’t know anything about real estate they don’t understand look all right,
most of us who have just you know bought and sold houses as adults they know maybe four or five as we moved around we don’t understand all the things that are in that closing package even though the settlement agent or the closing attorney May kind of explain to us what it is we’re signing
we don’t really understand it
and we not our head like we do because we’re too embarrassed to admit that we don’t that’s 90% of the people that go to these closings,
maybe 95 but the the small percentage of people who do want to understand I want to read all the documents we just go oh my goodness.
[28:17] And we’re going to be here for hours because there is so much well,
even if you get an understanding of it at the closing table you don’t really remember it but much longer because you don’t have enough repetition with it there people that are trying to do this business that don’t know how don’t know what
is involved in a contract they really don’t know how to use a contract they don’t know what it’s for what it protects what the pieces of it should be they don’t know how to even write up a simple agreement
they don’t understand real estate terminology they don’t know the difference between a deed and a title.
[28:53] And it’s it’s remarkable that they want to try to do this business with what they do not know if you.
I have met so many people who are just interested in the shortcut just get to the bottom line and we’ll figure it out as we go now there’s there’s a good place for some of that but at some point or another.
[29:17] You’ve got to come across as a credible professional and you got to know a thing or two about this business,
you got to know the terminology you got to know how deals get done and you got to know what to look for because there are certain people out there that will take advantages and take advantage of you if you don’t.
How do I know this School of Hard Knocks baby all right so.
Reason number three we fail is we don’t understand business number for we don’t understand this business number 5 we,
end up bar start out with the wrong team.
Don’t raise your hand are but how many of us have started a business with a friend or significant other end the relationship with that person is the only criteria for beginning this business together.
Yep did it in well usually not.
[30:09] As I look back over my experience in the business world it is littered with the
failed and broken relationships from former friends who tried to be partners not just me but people other people that I’ve observed and realize they that when it came to doing business they were incompatible and when money,
becomes a factor Everything Changes.
[30:33] It’s amazing you think it wouldn’t but it does and if it is and it affects,
sometimes the wrong team means you pick somebody who really doesn’t have a complementary skill set
the worst thing you could do is pick someone on your team and they know have a team of two people and the other person is just like you.
That leaves some pretty glaring blind spots in your business I don’t know what those blind spots are but if they’re just like you they’re the same and neither one of you can probably see them,
Is as important as it is to get the right team it’s also important to have a team number 6 reason for failure is no team we try to go It Alone.
Now when you start this business you are going to go It Alone just accept that and you have to.
Compensate for your own weaknesses the problem is no one is good at everything and so it’s going to help you if you understand your weaknesses and.
Can ultimately staff to them I’m going to say more about that in a minute number 7.
[31:43] We understand there are things that we don’t know and we let our lack of knowledge keep us from taking a chance this is a.
Top reason I see people fail they get a little bit of knowledge and then they get overwhelmed because they have enough knowledge to know what they don’t know and then they let that stop them from diving in.
There’s a balance to life that.
Tips in favor of success or failure and this balance is always between you know being appropriately persistent for example and not being in full meltdown overdrive mode 24/7
there’s a balance between getting the knowledge you need and then taking the action that you must.
And there’s a balance between knowing what you know and and being aware that there’s stuff you don’t know and go and head anyway.
The planning to learn as you go always a balance and.
Striving for balance is a good place to be but don’t let your lack of knowledge keep you from diving in.
[32:51] And you know that sounds a little contradictory doesn’t it because we don’t know anything about business and we don’t know anything about our business and I’m telling you you need to know some things and then I tell you don’t let your lack of knowledge keep you from driving in well I’m talking about the balance there,
get a little bit of knowledge take a little bit of action get some more knowledge take more action get more knowledge take more action and there you go pretty soon you’ll have your own radio show with hundreds of thousands of listeners and you’ll be telling people what I’m telling you now it’s a step-by-step process.
Another reason I see businesses fail is we are woefully underfunded.
Now it is possible in real estate to buy houses with no money of your own it is,
and you can get the courses on that and you can take the so-called boot camps or whatever on buying property with no money of your own
not your money not your credit blah blah blah blah blah those deals exist but I I’m telling you you’re going to pass a hundred good deals to find one you can buy that way.
[33:56] And if you are if you think you’re going to make a living on one out of a hundred deals look up it’s a hundred to one,
deals that we do we look we review a hundred deals before we
find one that we can do and that happens every week and we’re trying to do multiple deals every week which means the team here is reviewing a lot of deals every week and if you can only do the ones that require no cash from you then.
[34:23] Well you’re not going to make a living you’re not going to build a successful business.
[34:30] Okay so you’re saying but I don’t have any money I thought I could start this business without any money you can,
okay there are some things you can do you can wholesale some properties you can Burdock some properties you can do something just don’t repeat the mistake that I see ninety-five 98% of the time
people will bird dog and wholesale some properties and they make some money.
And it’s bonus money because they have a job and they’re doing other things but you know what they do they go out and buy toys they spend that money on one thing or another.
And they don’t build up the cash they need to create the success because to be truly successful in the real estate business requires some cash now you can use other people’s cash but you’re going to be better off using your own.
[35:19] Number 9 we stopped planning revising testing in planning more.
You know I think that most people that want to start their own business or aware that they have to do some planning and some people love the planning part they dive into the planning Park but we,
create the plan and we’ve got this plan for this business and we set it all out there with our goals and then we assume the planning part is over.
That is a recipe for disaster okay we’ll be back with 11 more in just a minute.
[35:59] If you’re a real estate investor.
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all you have to do is tell us what you’re looking for your profile includes your cell phone number which will verify and when a property is posted in the zip code you’re interested in your going to get a text message that says,
look what just hit the fan everyone should register,
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[36:56] You can download the app will anyone can download the app and in the App Store it’s called flipping America Network all one word no spaces you download the app flipping America Network,
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Immediately that property will get texted,
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[38:13] Number 10 unrealistic expectations.
If you’ve ever set in one of those meetings where people are pitching businesses looking for a angel or VC funding you’ll see it
a repeated pattern of what we call the check mark projections yeah we’re going to start out here but then it’s going to take off and boom and
some of you will say man I can make $30,000 by flipping the house okay so,
I think I’ll do 10 this year and I think I’ll do 25 next year and wow are we making $750,000 next year this is amazing.
Yeah that is an example of unrealistic expectations because to do 10 houses in one year is in your first year is a pretty remarkable challenge.
We don’t understand the time required.
The difficulties we will encounter and what the actual profits will be versus our projections,
now I’m saying we an hour because it just seemed like it would be unkind for me to say you and your.
I have been there on most of these I’ve been guilty on most of these and I’ve I’ve participated in the activities that have led to failure on more than one occasion.
[39:36] I’m putting them out because I see them all the time and I want you to be aware of them and not engage them number 11.
We fail because of a lack of self-knowledge now I alluded to this back in the in the Staffing area but.
A lack of self-knowledge especially when it comes to weaknesses are blind spots I recently met a brilliant inventor.
Who advised near De product who has pioneered a product that could be revolutionary and we met at some point featured on the show.
But this person gave me a business card that was indicative of kind of a scattered approach to.
Business and life you did it’s just all over the place the business card has four different logos on the front and back multiple websites and full of words,
and slogans and ways to describe this incredible product that he has developed and all of these ideas but there’s one thing missing on his business card.
His name his name is not on his card nor is there a phone number that you can call to get him.
[40:55] It is amazing and I see this a lot.
I asked him if I could give him some constructive feedback and he said yes and I said you know I believe in your product I think it’s great but I think you’re a little bit scattered and I was.
Kind of distress by his response no I’m not.
This is a recipe for one reason people struggle and fail we don’t understand ourselves is nothing wrong.
There’s nothing wrong with this individual and there’s nothing wrong with the product the only issue here is the unwillingness to listen to other people.
We all we all.
Must let other people speak into our lives and help us know where.
[41:51] We are blind where we are weak I think I know some of mine now.
And that’s why the people that are on my team one of the things that they have to be is a person who pays attention to details so that way.
And I’m pretty good with the planning of the details but after we’ve got the planning session done with comes implementation and management of those details I really want someone else on board.
And our business hums along when I’ve got those people in place.
Okay so lack of self-knowledge number 12 the mentality that says if I build it they will come.
If I announce that I’m in the real estate business wanting to flip houses then deals will just come to me.
It’s just going to happen because I’ve seen it just happen for so many people if I develop a product
and let people know that is for sale it will sell.
All of my closest friends will by and then they’ll tell all their friends and then here goes to check mark projection we’re going to see this rapid increase in sales and it’s going to take off and pretty soon I’ll be,
driving the car or spending time on the beach whatever it is that we envision and we envision the,
whatever our picture of success is without seeing what has to come between their if I build it they will come that was a movie.
All right and they’re really only happens in the movie.
[43:20] After I had flipped about 750 houses I started teaching people how to flip houses and I thought that I could put out that word hey this guy is done 750 Oz come hear what he has to say
and I thought with a minimal
amount of effort and marketing just letting some people know who Adele other people that we would fill a room that surely a hundred people would come out to here.
22 people came that first time.
Right just because you build it doesn’t mean they will come never 13 we get out hustle.
We just don’t know what hard work looks like the hardest thing in your life when your 5 looks like Child’s Play to you now and.
If you have never put in six straight weeks of 12-hour days of actual work and I’m not talking about social media surfing in between meetings while you’re at the office kind of work I’m talking about actual work on a project that took you,
12 hours a day for six straight weeks what you call hard work is Child’s Play to someone who is out hustling you.
[44:29] M14 is like it we pack around the edges.
We do a seminar hear a meeting there we talk about the future a lot I got involved in a National Association one-time of nonprofit.
And I was on the board and I watched these board members who meant well.
Realizing that they had a problem or an issue and so they would appoint a panel to discuss the issue to address the issue and once the panel was appointed and they had had a conversation about the issues they felt like it had been
addressed when actually,
no panel is needed this solution was pretty clear as right in front of mother had to do is take the action and I’ve never been able to understand this but I,
I understand why it is but I do now understand that this is how government actually functions they believe that they appoint a blue ribbon commission to talk about the issue they’ve addressed it.
Nothing ever changes nothing ever happens but they’ve addressed it.
[45:36] Well that may work in government but that’s not going to work in business if you go to a seminar here and get all excited and Monday you get back to your life and don’t do anything different
then 2 weeks later you go to another seminar and maybe you go to some networking groups and you talk about it and you and you tell people what your plan is for the future but really you don’t have a plan you just have a dream cuz you’re not
doing anything you just packing around the edges number 15 the Quest for perfection.
We got to get everything set up just right we’ve got to answer every question we’ve got to have every little bit of knowledge we’ve got to have every little thing we’ve got to do this we got to do that when we’ve got all these things that we cannot launch until we got it all,
I’m telling you folks Perfection is the enemy of the good.
[46:24] And perfection in this sense is not the best it will derail you it will destroy you and it will lead to failure.
Number 16 we ignore the need for marketing.
[46:39] This cannot be overstated I don’t know how often I need to repeat it how many examples I need to give you betamax for those of you that remember video cassette betamax was clearly the superior technology to VHS clearly,
I didn’t care I was just listening to the people that that I knew who were all into the technology betamax was so far superior to VHS betamax got creamed.
Because of marketing.
[47:09] And you can find many many examples where Superior ideas languished and failed because they didn’t mark it you may have.
A great approach you may have a wonderful personality and the ability to negotiate with sellers of houses but if you don’t get in front of them you’re never going to be able to use those skills.
You must Market whatever it is you’re doing you must must Market number 17.
[47:44] We don’t understand or we ignore our customers you would think that anybody would be.
Willing to pay attention to their customers and would try to understand them and understand who they are but it would surprise you.
To know how few businesses understand or pay attention to their customers as Real Estate Investors.
Do you know who your real customer is,
now if your a landlord and you’re renting houses in one sense your tenants are your customers but if you’re a Fix and Flip person and you’re actually is just selling houses to end users.
If you think that the people buying your houses are your customers you’re making a mistake.
Because those people aren’t really paying you they’re buying your product but they’re paying an agent they are your agents customers.
So is your agent your customer know your agent is not really your employee but a contract labor they’re not your customer,
who is your customer if you’re a Fix and Flip investor your customer is whoever is providing the capital for you to do what you do,
your customer is your private lender or your hard money lender or your investor that is your customer that’s who you need to understand and that’s who you need to not ignore.
[49:13] Now I’m not saying you should ignore your Realtors because they’re your contract labor and I’m not and I’m saying you should not ignore your people who are buying your house is because that is what makes your business hum.
But those are not your customers your customers are your investors.
[49:37] Number 18 as we wrap it up here with these I’m getting into the the things that I see most often the reasons for failure.
[49:46] We’re surprised by and unprepared for challenges.
When I look at my own and everyone else has three year plan one year plan and quarterly plans I never ever have seen and don’t expect I ever will see someone to put in there
one-year or three-year plan and right here I’m I’m going to make a
for the critically bad decision that’s going to run my company off the rails or right here I’m predicting that the economy is going to take an unexpected turn for the worst and I’m going to end up sitting with properties that I cannot sell.
We don’t plan for difficulties in Challenge and the interesting thing is
life is a continual progression of difficulty in challenge but we never planned for it and we always seem to be surprised by it when it happens that’s one of the befuddling things and you know what folks I’m I’m looking in the mirror and I’m pointing fingers at myself too because.
I I sometimes
I quite often I’m surprised once have to be so hard why did that happen all I bought one of these small houses and it turns out there was a hole in the roof in the back of the house that we couldn’t see from the pictures and the auction company didn’t see it now we got water damage in the house and I’m going to have to unload this house
baby for less than what I paid for it oh me that’s so terrible well why should we be surprised when we encounter challenges,
it’s a part of life.
[51:13] You know you have the ability to anticipate 98% of the conversations that you’re going to have and you can prepare your responses in advance for those conversations in the questions you’re going to get you also
can anticipate if you’ll just think about it you can anticipate that you challenges
most of the challenges that you’re going to face and you can prepare for them in advance.
[51:40] I see people getting hit with challenges and the unexpected and then throwing it hands up and saying this wasn’t meant for me I’ll come on I want to say.
[51:53] The challenges in the surprises and the difficulties are just a normal part of life and business.
You must anticipate them you must not be surprised by them in fact I would encourage you to embrace them because when challenges and difficulties come your way.
You’ll know that you’re running a normal business.
When you’re not having any challenges when you’re not having any difficulties when everything is going smoothly that’s when you really ought to be looking around because something is about to whack you in the rear end.
And you need to be ready for it and don’t get derailed Buy It Now.
[52:39] Number 19 is one of the sneakiest ones but also what I’ve seen and personally experienced one of the most devastating.
[52:49] Overconfidence overconfidence when things are going well is one of the top reasons businesses fail.
[53:01] It’s just human nature I suppose.
When things are going well you start feeling Bulletproof and it’s not just individual sometimes it’s large corporations.
I featured a story about a a pretty successful Regional Airline few years ago a couple years ago I did the story and they decided that they were going to buy a resort property and get into the resort business.
Colossal failure they were good at being an airline not so good at managing Resort.
[53:38] I’ve had people on my show.
Who have experienced enormous failure and very large bankruptcies we didn’t necessarily talk about it on the show but you you should just know if you go back to the whole Library.
A lot of the people that have had on the show have experienced failure in life and business but some of them have been huge.
And I’m not going to reveal any confidences now but I’m going to tell you that you should know that your humble host has gone through business failure because of overconfidence.
It’s a story that I tell when I speak at some of the reasons I have a talk called how I made and lost $2000000 in real estate and you can to accept without the losing part.
I do that because I want you to avoid this critical mistake.
[54:34] When things are going well the thing for you to do is to find a way to keep yourself humble.
[54:44] Don’t begin to believe that you are too big to fail too smart to fail.
Or that you can take on other challenges that’s going to put you on the sidelines.
[55:02] And now we come to the number 20.
I mention this last because I have saved for last the most critical reason we fail.
[55:17] Are you ready it’s because we give up.
[55:23] One of my favorite people that I’ve ever met and had the privilege to have a couple conversations with is Truett Cathy.
[55:33] He was a prince of a gentleman a good man and I cherish every moment they were few
but every moment that I ever had in his presence where I could ask him questions and I just talked to him we shared a stage a couple of times and I had the privilege of speaking at Chick-fil-A corporate Chapel
I’m several years ago and it each of those occasions in just a few minutes I,
I picked up so much from him but the last time we were together in this was several years ago it was more than 15 years ago we were together on a stage he gave me a copy of the book you just released called.
It’s easier to succeed than fail.
And in the book he told the story over and over again of people who failed because they quit right before they were about to succeed we all know the story about the the you know the field where,
the guy was digging for gold and he gave up and he sold it to someone else Dig Dug the next 6 in or whatever in and hit the mother lode and became wealthy.
We all know that we hear these stories and we know those things but.
Sadly as each week goes by I talk to a person or two nearly every week who has quit or is ready to quit.
[56:55] Because they’ve been trying and it just isn’t working.
And they’re tired of beating their head against the wall they’re tired of looking for deals in the can’t find them they’re tired of being outbid by the competition they’re tired of whatever this or that.
Sometimes it’s students in my program,
who are just weary of being so picky about what we buy because I insist that what we buy is a good deal that doesn’t a good chance of making us money and and.
Mitigates all of the risk that are involved in this business but that means that we routinely get out bid on properties we understand this,
but if you haven’t done your first deal yet and you’re you’re watching this happen over and over again it’s so easy to want to give up.
[57:45] Listen I know what it’s like to want to give up I’ve been there.
[57:53] I can’t say been there done that because so far I haven’t.
Okay and you may have even given up but it’s not too late to change your mind don’t give up.
No honestly maybe being a business owner and an entrepreneur isn’t for you but there is something that is for you.
And there is a life for you.
[58:17] That is consistent with your abilities and your skills just don’t give up Don’t Stop.
[58:50] For today is from your humble host I have not yet reached all my goals and by far the most important word in that sentence is yet.
[59:01] This thought has brought to you today by the foundation for Renewal working together with families across the country to bring lasting life change and impact,
find them on the web at renewal fund. Net and is always your gift in any amount is very much appreciated and tax deductible will see you soon.
[59:31] You’ve been listening to flipping America real estate investing for everyone if you have any questions about real estate send them two questions at flipping America network.com,
listen three times a week on stations across the country or on the flipping America app free in the App Store,
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