Want to Start a Business - Listen to This First!

Hey, credit heroes. Do you know why 20% of all businesses fail in their first year? Well, today I'm going to explain the five most common mistakes that kill businesses and how to prevent your business from becoming one of them. So you better stick around. So the big question is, how can we take our passion for helping people with their credit and turn it into a successful business without taking loans, without spending a fortune by bootstrapping it from nothing so we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets. Okay, if this is your first time listening to my podcast, every week I cover industry news, financial tips, and entrepreneurial advice for bootstrapping your business from nothing. This show is the very best how to guide for business owners. And there's no other podcast like it. So be sure to click that subscribe button now and get ready to start changing lives. Okay, so According to the SBA, the Small Business Administration, 20% of all businesses fail in their first year, 50% fail within five years, and only 33% last 10 years or more. But it's important to know that the majority of businesses that do fail, they always fail for the very same reasons. That's why today I'm going to go over the five most common mistakes that kill businesses, how to avoid them, and how to set yourself up for success in year one. But before we get started, this podcast is brought to you by Credit Hero Score. Credit Hero Score is the only credit monitoring service that integrates directly with credit repair cloud. Get instant access to your credit reports and scores by signing up for a seven day trial for only $1. Sign up right now at creditheroscore.com okay, let's get into this. Starting a business, it's never easy. And in my case, I struggled for many years. My business went backwards and in circles and I starved for over 10 years. I didn't know if I would ever be successful. And we've all heard discouraging statistics about how many companies fail over time. Some businesses last one year, others last five years. Some prosper for 10 years or more, and then they fail. But these statistics, they miss the whole point. When a business failed isn't as important as why it failed. And I say this because no matter when it happens, they always fail for the very same reasons. So how does this relate to you? Well, if you are a new entrepreneur, it's true that your first year is going to be the most challenging year for your business. But that shouldn't surprise you. If you've ever read the first chapter of a book or watched the first episode of a TV show and thought, this isn't for me, I'm out. Well, the very same thing happens in business. A lot of people that don't commit to the process and don't realize that it takes consistency every day, they often decide early that this lifestyle isn't for them and they quit. So this factor, it messes up the statistics during year one. But that doesn't mean year one is going to be easy. No, year one is still very difficult for new business owners because you're having to learn everything and you're going to make a lot of mistakes, which is a good thing. And I'll get to that later. But this all leads to my point. There are no guarantees in business. So the very best thing that you can do to minimize the risk of failure is to study and prepare and know that you are going to make a lot of mistakes. But if you learn the most common mistakes that cause businesses to fail, then you've got the greatest possible chance to succeed through year one and beyond. Here's what you need to remember. There are so many reasons why businesses fail. But when you look closely, the main reasons, they can be sorted into just five. The product or service, the market, the business plan, the money, and the leadership. Here's why this is important. All of these categories, they need your attention. And if any of them are neglected, you may be setting yourself up for failure. So let's break them down. Here's what you need to know. The first mistake that can kill a business is your product or service. And this is probably the most obvious reason why a business might fail. If your product or service doesn't over deliver value to your customer, if it isn't high quality or it doesn't stand out from your competitors, and if you don't provide an amazing experience, your business may fail. My old manager, Rick Marcelli, when I was back in show business, he would always say, sell the sizzle, not the steak. Rick was my manager for 20 years. He worked with David Copperfield, Jenny Jones, the Smothers Brothers, George Lopez, Edward James Olmos, the Beach Boys, and all kinds of stars over the years. And Rick, he taught me the most important things that I needed to know about business. Unfortunately, he got angry at me when I quit show business to start this software company and we haven't talked since, which makes me really sad because he was my best friend and I think about him every day because the things that he taught me. They apply to everything that I'm doing today. See, running a business is exactly the same as show business. It's about standing out. It's about calling attention to yourself. Sure, you have to have talent, which is the product, but you also have to try to look cooler than everybody else and stand out. And that's why Rick always said, sell the sizzle, not the steak. But in this case, if your steak is rotten, the best sales team in the world won't be able to sell that sizzle. So whatever your product or service is, you got to study it, you got to perfect it, you got to believe in it and make sure that it provides value and stands out in the marketplace. Now, the second mistake that can kill a business is the market. There are many reasons why small businesses fail in the marketplace, but it's never the market's fault. The company either didn't know who their target customer was, or they didn't know how to find their customers. They didn't understand how to communicate their product or their service to their customers, or the company didn't produce a product that their customers wanted or needed. Now, it might shock you to learn that according to the business analytics company CB Insights, 42% of businesses fail because there was no market need for their product at all. And that's unbelievable to me. It's like trying to compete with M and Ms. By making chocolate that melts in your hand. Of course it's going to fail. It's a bad product and nobody asked for it. Now, in my own experience, I started Credit Repair cloud out of necessity because I had a credit issue of my own that nearly destroyed my life. And I was too broke to hire a credit repair company. So I learned how to fix my own credit. And. And then I started helping family and friends. And along the way, I realized that the credit system is designed to hurt people, and there are a lot of people out there hurting. And I also realized that there was no product to make credit repair easier. And when I did my research, I learned that 8 out of 10 people in America have errors on their credit reports. That's a lot of people that need credit repair, and 10 out of 10 people need credit monitoring. So I knew that this was a fit. The point is, if you understand who your customers are, where to find them, how to communicate with them, like on social media, and if you have a valuable product that your customers want or need, then you have a really good shot at being successful in year one and beyond. Now, the third mistake that can kill A business is the business plan. The great basketball coach John Wooden once said, failing to prepare is preparing to fail. And when a business fails, there's a very good chance that the seed of that failure was planted somewhere in the initial plan. A business plan is all about answering questions. And if those questions aren't answered realistically and unemotionally, mistakes are going to happen. You need to be able to answer basic questions like what is your product or service? What makes it unique compared to your competitors? Who are your competitors? Who are your customers? Why did you choose that customer group? How do you plan to communicate with them? How much do you plan to charge? What are your startup costs? How much revenue do you need to break even? What are your year end goals? And how much revenue do you need before you can start hiring help? Because when you start to have some success, you're going to need some help. The more questions that you can ask yourself before you start your business, the more problems you can avoid when it's up and running. A realistic and well thought out business plan will help to guide you from where you are to where you want to be. And it's going to help you to avoid so many other mistakes from happening. Now, the fourth mistake that can kill a business is the money. According to that Same study by CB Insights, 29% of businesses fail because they lack funds and go bankrupt. Now all businesses cost money, but if your costs are more than your revenue, then eventually your business will fail. So you want to make it part of your business plan to keep your expenses low and to stay as efficient as possible during your first years of business. Now if your sales go beyond your expectations, congratulations. But be cautious and make sure that you didn't just have one great month, but when you have sustained sales month after month after month, that's when you want to prepare to take your business to the next level and and start to hire some help. You want to get an assistant or hire a VA so you're not doing everything. Now if your sales drop below expectations, that's concerning. But if you have a quality product or service and you over deliver value, you believe in your business plan and you think it's just a matter of time before the market responds, then don't panic. Just hang in there and try everything you can. And this leads us to the fifth mistake that can kill a business. The leadership. Mike Tyson once said, everyone has a plan until they get punched in the mouth. And when it comes to business, I've been punched in the mouth, I've been kicked in the groin again and again and again. And that's how business is. You might have a perfect plan, but sometimes life happens. And that can change everything overnight. And that's when leadership either hits a home run or strikes out. Why did the pandemic destroy some businesses, but others in the same industry survived and thrived? Why is that? Both groups had the same limited information and neither were prepared for what happened. So what separated them? The answer is leadership. You have to be an amazing leader who takes action. Taking action is the foundation of entrepreneurship. You see a need and you work to fill it, or you see a problem and you work to solve it. But if a leader just sits there and takes no action, or they overreact, or they try to do everything themselves, or they don't learn from their mistakes, or they refuse to change and pivot in the face of data, the business is going to fail. Entrepreneurs tend to be very confident and stubborn people. But if mistakes are made, especially during your first year, you need to be able to admit them and move fast before it's too late. My business failed for the first 10 years, and it failed because I was arrogant. I didn't learn from my mistakes. I wouldn't ask for help. I thought everyone else was wrong. But when I finally. When I finally started learning from my mistakes and started making little tiny changes and adjustments based on those mistakes, that is when my business started to grow. The mark of a great entrepreneur and a great leader is when you can learn from your mistakes as well as the mistakes of others. And that's how you can put yourself into the best possible position to succeed. See, entrepreneurship is not easy, but it can be the most rewarding experience of your life. But don't just take my word for it. The accounting software company FreshBooks, they found that 97% of people who own their own businesses, they said that they would never go back to traditional employment. And neither would I. Entrepreneurship is awesome. It's not for everyone, but it is the most fulfilling thing that I have ever done. And just a reminder, this podcast is brought to you by Credit Hero Score. Credit Hero Score is the only credit monitoring service that integrates directly with Credit Repair Cloud. Get instant access to your credit reports and scores by signing up for a seven day trial for only $1. Sign up right now at creditheroscore.com and now for my favorite part of the episode, our community highlight. Every week I'm featuring one of our credit heroes inside our Credit Repair Cloud Facebook community so that you can see firsthand what real people are doing as they launch and grow their business and today's spotlight is on Marcel Jackson. A few weeks ago I saw a post that said Laugh at bad Credit. And I love that name. It just stood out and it was Marcel. And he explained why he was laughing. He said, in May I joined CRC and I did myself and one other person to just test out my skills and have myself as a testimonial. My scores went up 90 to 95 points for each bureau. We launched our business today and signed up 10 paid customers and we have 28 leads. Looking forward to hitting the Millionaires club sooner than later. Isn't Marcel amazing? From May until the end of June, he boosted his own credit. He proved to himself that he could do the job. He started his business, signed up a whole bunch of customers and generated even more leads. Keep up the great work Marcel. You are amazing. And I'll end by saying if you don't already have a credit repair cloud account, check it out. It's the software that most credit repair businesses in America run on. Just sign up. Sign up for a 30 day free trial at creditrepaircloud.com freetrial and if you'd like me to hold you by the hand as you launch your very own profitable credit repair business, check out our Credit Hero Challenge. It's a live experience that has helped tons of credit heroes to get their first clients, to get certified in disputing and to gain confidence as they launch their credit repair business on a solid foundation so they can change a whole lot of lives and make a great living in the process. We're starting the next challenge very soon and you want to join before the doors close. Or you can have a long wait until the next one. So sign up right now@creditherochallenge.com and if you're finding value in the things that I share on this podcast, click below to subscribe and also leave me your comments and your questions down below because I read each and every one of them and remember to learn from your mistakes and the mistakes of others and keep changing lives. Want a fast track to creating an amazing business that helps people, changes lives and makes you a great living in the process? Then I'd like to invite you to my free online training@creditrepaircloud.com freetraining. In this free training you will learn how to get clients willing to pay you even if you're just starting out, how to get easy credit repair results without being an expert, and how to get all the clients you'll ever need without paying for advertising. Again, this training is absolutely free. Just visit creditrepaircloud.com freetraining.