the #1 Reason Businesses Fail!
Whenever someone is trying to start a business, most of the time they want to know “why do businesses fail?”
Now often an entrepreneur or a business failing can be attributed to a few different things, however all of these failures have one thing in common.
In this video I discuss why most people fail in business, why it’s hard to start a business, and how you can make sure your business adapts.
This video not only gives you the reason why most businesses fail, but also actionable steps you can take to be among the few who “make it.”
This business failure advice can also be used in relationships, health, and spiritual goals.
Become The Entrepreneur You Always Wanted To Be
[00:00:01] Follow the fish model and become a fish yourself. And once you’re a fish yourself, well, then you can get swallowed up by a bigger fish. But what happens at that point is you can then morph into the bigger fish. And life is all about a box of chocolates. And if you can get a fish to eat a box of chocolates, well, then you have a circus act on your hands, which is a feasible business model. And at that point, what you’re going to do is go to the circus. Show them the fish that’s eating the box of chocolates. It’s going to throw up because fish don’t eat boxes of chocolates. And what is it going to throw up? It’s going to throw you in the little fish version from the beginning of the story.
[00:00:39] What’s going on everyone? Ravi Abuvala here in beautiful Cabo San Lucas, Mexico. And in this video, I’m gonna be walking you through why most entrepreneurs and businesses fail. Now, don’t worry. This isn’t some high level video where I tell you, try harder or be more. I’m actually measuring some interesting diagrams that took me about two and a half years and hundreds of books that I’ve read to really understand what is this characteristics and the actions that lead to success. I’ve also worked with close to 650 entrepreneurs, help them scale their company to six, seven, even eight figures. So I do have a good idea as far as what works and what doesn’t. So anytime you are starting something new, whether it’s a new offer, a new industry, a new business, a new relationship, a new fitness program, you’re going to have costs and you’re going to have results. Now, the issue is in the very beginning, the costs are going to be greater than your results. And that’s what we call the fish model, which I’m going to show you right here.
[00:01:31] So in the fish model, as you can imagine, looks like a fish, right? That is one good looking fish right there. Now, in the fish model, you have two different variables here. One, you have is cost and the other you’re gonna have is results. Now, just like whenever you start something new. Most people don’t realize, but the costs are going to be greater than the results at scaling with systems we do help people scale online businesses ridiculously fast. So their fish is going to be a lot thinner. But this is gonna be a fat fish because most people don’t have the guidance or most people, whenever they’re starting something, they don’t look for help and so it’s going to be a larger learning curve. Now, let’s use business as an example inside of us. Whenever you start a business, your costs are gonna be pretty high. Whether the cost is the amount of time that you’re spending, starting the business up, the amount of time you’re spending, doing regeneration on cold calls, the amount of time you’re doing researching the business, the amount of time that you’re spending, talking to other people that are potentially going to work for your business. The amount of money that you’re spending on software, on websites, on domain names, on advertising, whatever it is, and the very beginning, most likely your costs are going to be greater than your results.
[00:02:43] Now, as you can see on the result, access down here, like I said a second ago, your costs are going to be much higher than what your results are. So you’re gonna be very deflated. It’s gonna be annoying. It’s going to be frustrating because you feel like I’m spending all this time, all this money, all this energy, and I’m not getting jack squat from it. And I’ll say that most people in business, in my experience, will quit somewhere along this route here. Right. They’ll quit somewhere here, kind of at the peak between the costs and the results where they just feel like there’s no way I’ll be profitable, there’s no way I can make a business, everybody’s a scam, this coaching program doesn’t work, this business model doesn’t work, this workout program doesn’t work – so I’m going to quit here when my costs are at the highest and my results are at the lowest. However, the traits that I do see of the most successful entrepreneurs that I personally know and the autobiographies and biographies that I read, they make it past this point to what’s known as a point of inflection, which is going to be right here. And this is where things get really exciting. Okay, this is where your costs start to decrease relative to the amount of results that you’re getting here. So this is where the fun and the magic really start to happen. This is where the slight edge, the compound effect. All that stuff starts kicking in and all of a sudden you’re closing one client, two clients, three clients all of a sudden working out is getting easier, benching one hundred thirty five pounds, getting easier. All of a sudden, this relationship that you had started and you’re the get to know this person, do they have the same interest as I do? Do they have the same values that I do? It’s costing you money to go on dates. It’s costing you money to avoid working on your business, whatever it is.
[00:04:10] At this point the person that you’re with is significant other, they understand how to support you. They know what you like. They know what you don’t like. They know what makes you happy. To know what makes you sad. And now the costs of the relationship, the cost of the business is now going down in relation to the results that you’re actually getting. And that’s why it’s a fish. Because at this point, my friends, your costs are going up, up, up. You’re seeing the hockey stick growth. And relatively speaking, your your costs should be going down, right? Obviously, there’s always going to be going down. But in relative to the amounts of results that you’re getting, it will be less. And that is the secret, guys. It’s called the fish model. OK, so understand this. Your costs will be greater in the very beginning whenever you start something. OK. Now, for a lot of Skilling with systems clients, it could be looking something a little more like this, right, where costs are going to be greater than the results you’re getting. And that just has, no matter what, whenever you buy. Let’s say someone that buys into my program, there’s going to be as soon as they pay that amount, they’re not going to get it. Why? I mean, we’ve had someone make eighteen thousand dollars within three days after they joined our program. I’ve had someone close ten thousand dollars the second day they joined our program. But still, they had to put money upfront and then they got the results after that. OK.
[00:05:16] So just understand, guys, whenever you’re in a hard place, whenever things are tough, whatever it is, you’re most likely going to be somewhere in between here and here. And I know a lot of you that watch my channel, they’re entrepreneurs or business owners they’re trying to scale. Whenever you’re trying out paid ads, whenever you’re trying out new outbound methods, whenever you’re trying out – another really great example of this is employees. Right. If you hire a virtual assistant like we give, at Scaling With Systems our clients fully trained virtual assistants, well, their cost is going to be great in the beginning because they’re coming in. And even though they come fully trained from scaling with systems, anytime you onboard a new employee in your company, there’s going to be associated costs. Right. No matter what. And so in the beginning, it’s a little bit difficult. But if you’re willing to work through it, if you’re willing to ask for help, if you’re willing to look online, look for help, if you’re willing to communicate. Eventually your costs will go down and your results are going to sky rocket up.
[00:06:01] Hey, guys, my camera overheated. I guess it’s this Cabo San Lucas on, but hopefully found this valuable. You understand what the fish model is and you can apply it into your business if you guys got some value out of this. And you want to see more videos like this, please give me a quick favor. Give me a thumbs up comment down below what kind of other video you want me to create and make sure you hit the subscribe button. Thank you guys so much for your time. And I’ll talk to you soon.