Why Side Hustlers, Startups, and Solos Struggle
I recorded this training for the 2023 Maid Service Success SummitFundamental #1: FinancialStart with the Stats!90% don't know their numbers (Life After Sale YT)98% don't know the value of their business (cnbc.com)72% don't know their credit score (smallbiztrends.com)73.6% of all statistics are made up (businessinsider.com) Notes from the Talk!Me – I knew my numbers and optimized every 90 days with SMART goals from 2014-2017 to go from 5-6 days solo cleaning per week to 2 days all while earning the same profit! We started at $60k profit and ended at $60k profit. This is the ISO Model.Kate – I was helping a friend running a $1.2M residential cleaning company. She has 375 clients. We analyzed her business with numbers and calculated that her average biweekly client is paying $130/visit. She recognized an opportunity to grow that average to $160/visit. I coached her to use the 80/20 rule and assume 20% of her clients are leading to 80% of the high drama and low profit costing her business money. This amounts to 75 clients. We used numbers to determine the potential of her business with the SAME number of clients (375) but replacing the 75 with great ones. It was an additional $50k-$100k per year in profit! When we increased every client from $130 to $160/visit, it added an additional $150k-$250k per year in profit! Same business, same size, better numbers! Mind-blowing.Fundamental #2: MindsetStart with the Stats!60% have a fixed mindset (Dweck).98% don't pursue their dreams with confidence and excitment (2% Mindset).33% are held back by fear (Smallbiztrends.com).Notes from the Talk!Fixed vs Growth Mindset – "This is the idea behind a growth mindset: we believe our intelligence and abilities can be developed over time. Growth mindsets are one end of the spectrum of how we think about ourselves, with fixed mindsets on the opposite end. Having a growth mindset means we are eager to learn, adaptive, find value in embracing challenges, and believe that being effortful can improve certain skills, compared to the fixed mindset’s belief that our abilities are unchangeable." A fixed mind sees limited opportunity and the cards they were dealt are the ones they must keep. A growth mind can change and must change as nothing in life ever stays the same. It either grows or dies. So the irony of the fixed mindset is that it is decaying or dying over time. You have to grow a little to "stay the same". (Carol Dweck, "Mindset")A growth and business-owners mindset sees investment, not cost. They see delayed gratification vs immediate. They see long-term thinking and planning vs. immediate. They seek mentors, coaches, and value life-long learning.If you don't believe you can grow your mind, you're right. And if you are fixed in your mindset, you better know your numbers because you'll be holding onto whatever you've got as the only way to grow your income in to grow your mind.How do you acquire a Growth Mindset? First, you must believe it for you. Second, become a reader of personal development books and NEVER stop. Get around those that stretch you. Stretching your mind shows you the gap and forces you to want to grow to fill the gap.Read the rest of this article at the Smart Cleaning School website