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7 Terrible Traps Entrepreneurs Fall Into (And How to Get Out of Them) | Smart Passive Income Podcast

Check out the Smart Passive Income Podcast Episode Page & Show Notes

Key Takeaways

  • Almost all overnight successes took years of grinding behind the scenes before the pieces clicked into place
  • Every great business idea starts with the belief in one’s own self, but that alone isn’t enough
    • Once you have a good idea you have to move forward with the process of validating that idea with concrete evidence
  • Your belief in what you sell will take you much farther than a desire for profit
    • If all you care about is profit, there are easier ways of making money than being an entrepreneur
  • “A lot of times seeing something new and exciting is easy to go toward because it’s new and exciting. When you get into the grind, and you’re actually in the inner workings of this business that you once said yes to, well, that starts to become a drag” – Pat Flynn
  • The time you save by outsourcing tasks to people who are more efficient at it will make you more money than the money you save by doing it yourself
  • Comparison is incredibly useful in discerning different experiences and lessons other people have learned, but not when it’s used to minimize your own successes
    • Every single person is at a different point in the journey of their life
  • Nonstop work may put you ahead in the short term, but if you pass the breaking point the time it takes to recover will put you further behind than someone who took time to recharge

Books Mentioned

Intro

Expecting Results too Soon

  • Almost all overnight successes took years of grinding behind the scenes before the pieces clicked into place
    • There are thunderbolts of success that appear out of nowhere occasionally, but without the process of failure and learning it can be difficult to maintain success. 
    • Just look at most lottery winners. In 5 years they’re usually bankrupt.
  • “Oftentimes, we give up right at the inflection point” – Pat Flynn
    • The greatest entrepreneurial filter is whether or not someone has the grit to push through the hard times 

Bias and Assumptions

  • Every great business idea starts with the belief in one’s own self, but you can’t just stop at pure belief 
    • Once you have a good idea you have to move forward with the process of validating that idea with concrete evidence
  • “The number one thing you can do is to dive deep into discovering what the problems, and the pains, and the concerns are, of your target audience. And this means yes, doing some research upfront.” – Pat Flynn
    • “This is removing the guesswork. It’s sharpening your axe for hours so that when you cut down that tree, it’s going to be a lot easier.”
  • The most cost-effective method of diving deep is simply having conversations with your target market to see if they like what you’re thinking about
    • “The more niche down you can get, the much easier it will be to A) not have as much competition, but B) stand out and become the go-to person for that particular industry.” – Pat Flynn
  • On the flip side, some people are too cautious and will research their market without taking decisive action thinking that they must prepare for every possible scenario
    • The biggest lessons often come from being in the field rather than strategizing  plans from the arm chair

Doing It Just for the Money

  • If all you care about is profit, there are easier ways of making money than being an entrepreneur 
    • Focusing primarily on the money is just as big of a blinder as believing all your business decisions are impeccable 
  • Your belief in what you sell will take you much farther than a desire for profit
    • “Your earnings are a byproduct of how well you serve your audience” – Pat Flynn

Losing Focus

  • “A lot of times seeing something new and exciting is easy to go toward because it’s new and exciting. When you get into the grind, and you’re actually in the inner workings of this business that you once said yes to, well, that starts to become a drag” – Pat Flynn
    • The appearance of bright flashing lights has little to do with how those lights actually operate
  • Saying yes to one opportunity means that you’re saying no to all the other endeavors you could be pursuing
    • In today’s society, it’s more important than ever to not be distracted and focus on your long-term goals
  • Just-in-time learning:
    • Pat learned this heuristic for determining what to focus on after being laid off in 2008
    • “Just-in-time learning means allowing yourself to only learn about the things, and get excited about the things are related to the next thing that’s on your list” – Pat Flynn
  • But then, how do we prevent ourselves from missing out on potentially lucrative opportunities?
    • Simple: bookmark those ideas for later and after your current goal you can delve into them
    • “In most cases, you’re not going to go back to them. By the time you’re ready to move on to something else; guess what? There’s even better and newer material that’s come out.” – Pat Flynn

Doing Everything Yourself

  • The time you save by outsourcing tasks to people who are more efficient at it will make you more money than the money you save by doing it yourself
    • Say you run a digital marketing agency. If you hire someone to take care of the administrative tasks you can free up time to focus on expanding and being even more successful.
  • “You have to understand that your time is precious and that there are likely other and more important things to do”Pat Flynn
  • If you’re a business owner, make a list of everything that you do down to the mundane
    • You may not even realize all the time you’re spending on minor things, but once you write it down it’s impossible to look away from
    • This applies to non-business related activities too. You may not even realize the time you’re spending on social media every day, every week until you have the numbers staring at you.

Negative Comparisons

  • Comparison is incredibly useful in discerning different experiences and lessons other people have learned, but not when it’s used for negative purposes
    • When you get involved in a business community, especially in the beginning, you may wonder why you’re not as successful
    • Avoid that sort of thinking
  • Every single person is at a different point in the journey of their life
    • A college basketball player doesn’t look at Michael Jordan and get down on himself for not being as good, he looks at Michael Jordan and wonders “what can I learn from his success?”
  • “We need to be comparing ourselves to ourselves yesterday, to ourselves last week, to ourselves last month. How are you improving and getting better each day?”Pat Flynn
    • You don’t have to go from amateur to master immediately; a 1% improvement every day will lead to exponential results

Overclocking Yourself

  • Entrepreneurs don’t have a true ‘clock-out’ time and that’s why it’s mandatory to enforce it yourself
    • Even supremely confident entrepreneurs who view themselves as unstoppable machines must recognize that machines must be maintained or they break down
    • This doesn’t mean you can’t occasionally put the pedal to the metal when the time calls for it though
  • Nonstop work may put you ahead in the short term, but if you pass the breaking point the time it takes to recover will put you further behind than someone who took time to recharge
    • Taking care of yourself properly will also make you more productive during your working hours
  • Taking time off isn’t just about being healthy. It also includes taking care of relationships and simply enjoying one’s self.
    • Think about stories of people who devoted themselves to success, but end up unhappy at the end of their life despite being materially well off because they didn’t spend time with friends/family or partake in life’s simple pleasures
  • Create boundaries between your business and personal life
Smart Passive Income with Pat Flynn : , , , , , , ,
Notes By TD

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