Lessons

Lesson Info

Psychology of Business Pt 2

I was actually the filler happens people love hearing my failures so I'm going to go through them the facebook stuff it was tough I got past that things to overcome it that we've talked about it's not you don't have your identity attached to it take your time embrace that it's going to be crappy meet with interesting people right and explore it's a great you have a great opportunity as we said, I think one was powerful things we talked about is no one here wants to go back it's almost like relationships after you recover like dude, I would never be with that person again think about that for yourselves uh and so I just kept failing most doesn't twelve was a lot of failure. Uh this is one of my favorite fails is that weii emailed about steve jobs selling something on the day he died? Yes. Oh, one hundred thousand people we're saying hey by this absolutely product steve jobs loves it all the day he died because it was scheduled before him. Uh I woke up at six a m to go to the bathroom an...

d I did not go back to sleep. It happens and I think one of the big things from this failure was that I was honest we just e mailed everyone saying sorry like hey, this was this happens and we're sorry about this and it's really amazing when you're vulnerable and raw like that and your human versus corporate speak that people are able to relate with you on one and do business with you these are all the people we usedto had um I think one of the most fascinating things we said sixteen plus contractors up to twenty five million dollars last year the most fascinating about it is that I did all this because I want to impress other people was that interesting for you? Well, because it's, what is your motivation? That's exactly right? And if it's to impress other people and you're not doing it because you want tio I think one of the fundamental things have noticed with successful businesses versus not is that people are doing the business they want I've had to businesses that I did what I wanted if another bins that when they started failing, I was like, yes, go down bitch, you know, I'm like, please fail so I could go do something I really want and I've sumo's you know, I didn't do it to make a lot of money I didn't do it so I could have all these people and it took me literally months to figure out what I wanted and I was just being patient exploring india, thinking about what I wanted and I went back to the beginning why did I start this and I started it because I want to have fun working with people I like and I want to promote cool stuff that's it and if I'm able to pay my bills and make a good wage living that perfect so I didn't need all the people it's not that they weren't good people and I love I look I love all them they gave their time to this company but it's not necessarily what I wanted weii test a lot of things that sumo this is our custom built thing that she had built for a b testing uh, we calculated eighty four percent of what we do fails and I think one of the key things is not that it's not that we fail, right? That means, like one out of it, almost like one hour out of eight of my days. One hour out of eight is good our every other hour. Shit. Ok, the point being, though, is that when you know that there's going to be failure, you could plan for it. So like kevin, you failed in your business or starting a business. Well, you said you got stuck. How'd you get started? How'd you get it? If I'm in right now, I do pretty good well, how did you get stuck that, um it just got to a point where I had such an idea that I loved, and I was worried that I didn't want to go out and validated because if it didn't validate my idea failed, you felt yes. Does that make sense? I didn't want people to tell me my idea sucked. I liked my idea so ice instead of going out and validating it or not validating it, I stopped that's powerful man. Uh, my idea is still good because I haven't validated it yet. I would I would disagree with you, what's the idea. Maybe we could do this right now. Basically a greeting card, concierge service basically what's the problem yourself. Um, do you hate sending greeting cards? I don't send greeting cards. Let me take care of that for you that's the problem I'm solving, I'll make sure your mom gets her birthday card, her mother's day card that's my eye. And why do you love this? Because it's fun for me, it's it I'm I'm solving a problem of mine hating. I hate sending cards. So I solved the problem of my own and I said I'll offer this to other people that's the problem I think I'm solving okay and so in terms of you know, we're going to do in the next session a lot of live validation how can you actually just make sure it's the one thing I encourage our course and what I've done with this? How can you go and help one person like one of things you did that I want to point out? Is that you said no, you don't send cards, let me send cards for you it's not high on my totem pole remember how we talked about the totem pole? I agree I don't do cards and that's my thing is that where do I find that audience of the people who want to send cards but don't send them that's where I need to fill in. So I think everything that the uae encourage validation. Where were you know? Failure is good. Is that you could find what people do want, right? So does anyone here said great let's actually. Does anyone here seen greeting cards? Ok, what's, the last green card you sent my father. Ok. And what did you send him? Just I think I think a birthday card I mean is she sends greeting card. So what would you what problem would you sell for her? For? Nina? I didn't say let me take care of this for you, there's a lot you talk to her and I mean let me take care of this for you let sign up with me let me do this for you let me organize everybody for you not just your father in law I'll help you with your nieces, your nephews those people I like to call him the french people the fringe people that you'd like the same card because that you regularly time out so I'm glad you talked to her I think what happens when we're starting businesses that we talked the other person how much did you ask her what she wanted in and ask a single question I know much ask her is there anything I could do for you to help you with your greeting cards? I think that the idea is intriguing I mean for create is especially like the group that I run with like everybody is outdoing themselves with the customized and the you know it's like the hand quality nature and so we have I think people are you know really going back to that in least again in the in the creative designer field are going back to like anything like cards that you need help with their anything that you've been showing like how do you find your greeting card? Well I think teo I do send them but then like the nature of what why it's a value to me or I think it's valuable for this global it's because I'm doing it and it's like if there's make them or I'll find this perfect card and I looked for it or sometimes I just go through the card I'll and actually look for cards that I don't send for, like six months and so I have a card file so it's like I'm doing it but I think if I take out the automate if I made an automated I don't know that it would have the same effect so I think here's the greatest part about what we just experienced its not that one person said no so you should give up and I like that you like your job but now with validation we can actually find what people do want I want to report a little with this but I think with who here is married married one, two, three four who here randomly sends gifts to their partners sometimes that's kind of interesting right? So greeting card is something that this person that they want to do but what if you were able to help them send gives randomly to their partners where'd you go you know that's like what is that according to think the problem with having greeting card sent by third party is that if anyone detects that it's not a personal intent, then it could backfire whereas random gifts if you sign up to then get random gifts sent and I think that has a little more I don't know I think that she randomness of it might make it more personal I mean that's actually really interesting surface of the problem is that it's so like a lot of people when I have nice gifts for their partners but they don't always know what to get like what if it was? I love my wife box dot com then fbi website but what if you could actually figure out gifts to get people's wives or for their husbands it's an ideas are all easy right in the desert are married but alex diesen gives your wife khalfani send gifts um probably every couple of months like a box of a box of chocolates or flowers is nothing like that and how much you spend on those box er be like forty to sixty dollars range ones the mexican month coming up uh when I hate profitability but in the next couple of months or so is that something that you'd want to have someone else handle for you? Maybe it's a personal thing for me? And so I like to know what I'm sending okay? Yeah it's very personal for me because I buy strange things like those are things that I think it's hilarious or you know something you could wear benny man also you know, we had things, but you know, if I reminded came up and said, you know here's some crazy things maybe, maybe if it came a reminder came up from you and there were a couple of different things and it's a possibility that I would just get that that makes it easy. So the point is not like we don't we're going to figure something out, we're going to it's just basically exploring and through validation will actually understand what is something that people want to pay for it. Maybe it's actually companies like creative live or ab sumo that once to send gifts to our customers, right? I said cookie store customers a lot are over is a good partner, but maybe you could actually just figure it out for me that I'd be pretty interesting and so it's not necessarily being there, it's not that you gotta let go of being married to the idea and exploring what problems can you solve that people are excited to pay for? And then when people say I'm not really is exciting cards tried a few more times and then start exploring what they are excited about. I mean, is there things that you need? Guys need help with the two ladies with your husband? You guys know the latest gadgets to get him? Brianna here online is liking that if you had a website ahead, like ten to twenty options, she could if you'd already pre selected you know your way, your interest life and she would probably pick one of your choices. Would you pay for it right now? It's easy for people to find out for the cards or for the for the like, gets point being. I think we should see if she'll actually pay because it's easy, that's one of the things that's. So, did you like it's so easy like, yeah, sure, that sounds great once you build it and then show me what you're gonna do, how do you actually make sure that people are gonna pay for it? Let's, come back to what she says, but I think what we can do is come back in the next phase as well and explore more with you, uh, ten thousand dollars before spend it on a business coach uh does a day I did it a few times, it wasn't it wasn't super helpful, but it was just like I didn't know what I wanted, so I wanted someone else to tell me what to do. Ah hired amanda assistant who is amazing, but I stopped going to the grocery store. I stopped doing a lot had her do pretty much everything go to the post office, give me returns everything, and I actually really lazy, I just stopped working and I realized that when I gave it to other people and then do myself, it became dull. I lost my edge, so notice that when you're delegating or you're asking someone to do something versus just owning it, we sold products that I wasn't proud of. This product alone made about one hundred thousand profit, but you could see is rated really should he right? I was so obsessed with the ego of what other people expected of us that I never actually said, do I really? Are we actually selling great things now have simone, we have about ten products, ok? Insert the rest of them, so we're all going to fail and you know where I didn't really know what to do, and as I mentioned earlier, I basically in and that's what I encourage a lot of us to do is I went back to why I started it I gotta work with my friends and just promote the coolest products that was it, right? So we started out just doing that and that's what worked and what here's the one of the fascinating things I really want everyone to take home all night into you, how many times have you done thing that's working, and then you change it, we talked about that a little bit with your design business it has got a design business and it's working but maybe sound is fast enough so she wants to go to something completely new does anyone else relate to that? Yeah, what do you have the business that we're working on? We're always trying to come up with new ways to, you know, provide different services and things like that were asking people what they want but my distract us from what we need to do, which is just provide good service yeah, I mean it's funny we you know, as we did it, absolutely we're growing I was like people wanted a mission and purpose and I never had it it was just have fun and promote cool stuff and I kind of got distracted because everyone else wanted things and it wasn't what I wanted like we even had it, we came up with a vision to help a million entrepreneurs and I think we all know internally in that that's not what we want that's not what I wanted, but when something's not it's a little off, you know, I'm talking about it's a little of you like, oh, that's not liking the island, I'm sure people there have you ever had something like, you know, it's not the right thing to be doing, but you're still doing it and it's really just trusting that internal gut of yourself and knowing that man this is this feels weird. Something is weird. Um and so I went back to that over time, you know, went from zero dollars, to half a million and now we're about half of that, maybe even less. We're able to pay ourselves decently, were able to serve our customers. Well, create things we want to be creating. Uh, we hired. You know, we got one from sixteen and then we actually went down to four. All right? Things bad still happen. It's not bad issues. What you gonna do about it? So we went down to six, and then two people quit in the past two months and a lot of businesses. How resourceful are you? How much do you want to make this happen? Right. That's the psychology of how do you you know, is this what you really want to be doing? Because this is where it's really easy to quit when I get back from a trip and guy quit the day and I gotta quit two weeks before that. It's also understand why your people quitting. How can I make the environment better? But also saying, this is what I want to be doing I'm gonna make sure this works like adam he's gonna spend seven years trying to get me to work with them having good people around you, this is kind of how we've evolved with epsom of from, you know, starting kind of starting from the bottom now we're here it's a drake song uh having not really what we wanted to business, then coming back to our true core, our true essence and so having a great partner like chad having another guy, eric, who is amazing as well and having that support system makes me reduce my fear of having sabotage like my father, you guys have things about feeling like your parents ever are, like becoming like them, what would your parents feel like? I don't find lawns washing I don't think she is, but I'm she would probably understand if I explain this I think my parents, my mom in particular like she's really passionate about business like she likes or she lives business, but she's always into something new it's like, uh, you know, legal services online and, like kind of, you know, just always finding something. And I, um but it's, like nothing ever sticks and needed, she loses interest and then it's like multi level marketing, and I think my fear is to be like is to be like that of it is tio, you know, it feels like activity because you're signing up for a course or your you know you're enrolling and something new and it feels like you're doing, you're moving forward, but you never get traction and I think that's my and she's brilliant she's incredibly intelligent, amazing, like off operations business, but then, you know, just hasn't ever really stayed the course with something, so I think what overall is that? When you're doing your businesses were working someone else and you're doing your health and your on your love life? Are you doing what you're wanting our what's expected of others just like susan? Is it doing what her parents or tiger mom wants or what? Susan ones? And so we came back that, you know, and luckily I had great people around me we made things a lot simpler, we focused on less things to do this is just our goal that's it this is a goal for, of course, which is to help three thousand two hundred thirty three people that was it that's all we're focusing this our whole dash murder, that's what the whole company is run on and this is really interesting because I don't know what this craft is anyone's guess, you know, before yesterday this is actually my happiness craft mapped against our revenue, so as our revenue went up, I actually don't get as excited, I'm not motivated by the money but money doesn't motivate me kind of talking about the course it's like I'm not here to just get money to try to teach people that it's like I get satisfaction seeing the results and so as we kind of came back down and hit reality actually start feeling really better because I was doing what I wanted to do and it's what's really fascinating is that now it's going back up again? And so I have to be aware that hey, when the money starts going up, you've got to remember why you're doing this yeah, it was big eye, it was how I felt it was more like during this time period that's how I was feeling emotionally, I think one of the things is like you could write for yourself every day I don't think there's a magic answer how you can objectively do it, but I know for sure that when we weren't making money was really fun had nothing to lose and I got scared as it got higher but it wasn't necessary like ok, I want to keep making more money I didn't want that other people do and that's fine she's not what I want no, we've got one here from dawn who's saying we're talking about a new parents maybe being the influence he's saying my dad was always a gang, how entrepreneur and he opened my eyes but I've also seen him fail over and over again which is hard to watch and now I get scared about filing into my sixties like him there's a spot on the one hand but also the apprehensive that that might trump yeah um so here's the thing so I had a lot of worry for the past years of my father who made hundreds of thousands selling copiers who to drugs and alcohol ended up losing a lot of that I don't that's common for everyone but that was definitely like a big fear of doing that especially upset when we're making less money and guess what it's going down I'm like holy shit it's actually happening the reality is happening um and so I'd say that the key things that were helping me go past that our number one what can they learn from him? Not that so the number one was what can I learn from that experience? And what I learned is that he didn't actually have the greatest support people that's why I have chad there so I have anton and eric so what can I learn from what he didn't do right? And secondly with this guy what can I embrace that he did? Well, my father hustled really hard he came to america with no money, no english and made it right and so I wanted to embrace those things and be aware that I'm not him that guy's not his dad, but take away the good parts of it. I love the word practicing because you were asking me earlier like, what did I change? What helped and it's really is focusing on the fact that all these things is a practice that's always going to be and you have to remember that's why yoga is a practice or that's why meditation is a practice that you're always going to have to be. Yeah, very similar to yoga and business it's not the end let's say you get that passive income, you're still yourself you're still gonna probably be unhappy so it's the journey along that that actually is exciting part like it's like titanic I always joke about it's like why go titanic? I already know the ending, right? Don't you guys another any titanic? I could spoil it for you, but we go because it's all the middle part that's the most interesting so common fears these air entrepreneur fears I just want to make you aware of them so that you don't have them happen too many ideas too few ideas anybody have that? Yeah, I love my idea it's the golden idea I finally found it it's gonna work I'm nervous about embarrassing myself, I'm nervous about getting rejected spent money but haven't made a profit very common pitfall I don't know how to code has anyone got that one never you know that saying I don't know I need a coder where's my monkey I need a co founder who damon no one's ever said that anyone online yeah online what else any other ones they're comin wants your traps watch for someone who wants to start a business but lets these things stop them and that's what we're going to focus on in the next part of showing you actual ways of overcoming it so anything else that's held you back I think people think they need a lot of investment capital they need any funding funding I think another one along that funding or I need to read a book that's going to have that one answer that one thing is finally gonna tell me answer and it will never come so here's to us to overcome fear and you know obviously this is a simplification um it practice it start businesses stop reading books go practice because I guarantee you learn more from that than any book will tell you you know when I try to do a jerky business I'd challenge myself kind try to make a thousand dollars selling jerk in an hour and give us the link up similar com slash sumo desk turkey and I thought I'd be really easy for me like I have started businesses this is easy and you know what it's hard it was really was one of the hardest days I've had in a while is one most challenging but also rewarding and so doing validation not spending a lot of money and time to start a business was really helpful uh and that's what? These air kind of the things within business that have really helped validates you you know what with your greeting cards thing let's explore when we come back and figure out how do we actually make that work? So this is something I'm sure and let's bring down on stage um to hear or online has spent over a thousand dollars in a business that didn't make a profit yeah anybody else I have for sure you guys all you have spent any money the greeting card business shonda not a online in the chat room for sure people have spent money so what I want to explore now is someone who's failed so that people can realize the common traps uh then we'll have a live activity come back and bring you some live validations so you know a lot of common things bought a domain but let's let's hear what? Dan so what have you done that sort of business that did not work? So right after I got out of the navy I started a gourmet desert business with my partner in new york and we spent about a year doing it and it was just brutal the whole way was more did you do for the year? It was marginally profitable, so we kind of were floating ourselves, but it was it was just we just were making these very stereotypical mistakes the whole way like water, something mistakes. Well, the first time we got the idea to make pies, my partner called me and she's like this is what we're going to want to make pies and were to make a million dollars and was, like, perfect did you start? Does anyone ever do this? We have a business like I'm gonna pick out the color of my ferraris. Yeah, we're like, oh, I'm definitely take that one vacation. Yeah, well, way were dumb and we actually just went about business cards and even develop on rest city yet for pies and we're like, we need two or five hundred business cards. You guys get a domain, we gotta domain. I started teaching myself to build websites for shooting. Of course I did, we hadn't made a single pie yet, so it was like six, six weeks before we actually tried to make pies, which worked actually turned out ok, they were very delicious, but we had no idea who to sell him to. We had no idea like we just it was just a total win, you know, so it's really interesting is how we spent six weeks preparing and playing business called is playing versus finally, six weeks later it's like, oh, where the hell of the customers and coming back to kevin and I solving a problem people want to pay for, right? And so what happened from the six weeks on? Well, from those six weeks on, we started schlepping these fags of pies toe like farmers, markets and stuff and, like, panhandling these pies base later people and, you know, they were received with moderate satisfaction, but they were priced too high. We had no idea what we were doing, our costs were extremely high. Um basically, it was just it was a disaster the whole time it was fun, but we just were burned out and didn't make any money and how much did you spend? Overall? I think justin probably a little bit under ten thousand dollars just just to get it started and going and like making making pies that before we even had even made a dollar making pies, how long you work about a year? Yeah, well, we worked on the business for a year because it was starting to show some kind of promise, but it was just it was brutal I can't even relate to this story especially the group in the online chat this is sound from than anyone else because I know it does I've done this twice where I've spent money on idea that is gonna work yeah for sure this is it I'm done I'm cashing out going to go to thailand whatever it is I'm done anything chat rooms, the chat rooms they're still a still inspiring each other on books, links and advice to get them started so ok I think seeing lots of shouting place online right now trapped though right you can read the book still your black and blue right? The biggest reward you'll get is when you start experiencing it like I can tell people to do things with the business like oh, you should have done this but only when you've actually experienced it will that change really happened the learning the improvement and getting what you want so let's come back to the pie business and we'll get to a lot of activity so let's say we're starting a pie business today maybe let's start with uh what would you what would you tell yourself now that you've had a little experience? Well, I would first immediately try to figure out who wood who's going to want to buy a five dollars four inch pie like who is already making things like this where our who's a demographic that were specifically do so I would immediately start looking for bakeries so we were doing it on long island for clinton bakeries or close by I would look at bakeries and see who is selling pie first of all, who? So who was selling pie? And is it popular first of our people buying by second of all, how much are they charging for this pie? Are people like looking very pirate? No, I was making like we're making all these gore made flavors like ten or twelve, right? Like bacon? What kind of government? Yeah, well, like burnt sugar and like candy corn, all these have been crazy things like basically was just ok, so you're do anything that's very common as well. Is that it's easy get rejected by others and that's why we focus on going to a bakery versus what may be an easier method of that think about it, you're going out to others who it's either you're rejected what would be an easier way to actually see if you can get people to buy this panhandle I really don't hand handle takes no, you don't have a pie louder friends like many will say, I wantto make some pies anybody interested here's the flavors here's the price all right, so the point is, is that let's but let's explore that, maybe with anyone they want to pay for how much of the place they were like anywhere from three to five dollars, depending on the size but five dollars for a pipe as a sweeter is it sweet yet sweet little deserved prize like they're actually pretty good you're getting excited. Okay, so what? Maybe do jointly by pies or sweets? I don't, but that's why I like the flavors you said were interesting and I'm like five bucks try candy corn by how many wives you want after my let's just say one is your friend. Is adam still here? Just one no adam's gone ok tio, are you you want to make pies? I mean, sure, I don't know. Look that's actually really fascinating. What just happened right there? There's hesitation. Yeah, right. And so you're making pies? Well, yeah. And look, I don't want this is the most important part one of the most important things I want you to do what you want. Sure. And if it's not making pies like what? You know what? If someone started pie, this is exactly what you do. You don't make anything, okay? You're right. You say I'm going to surprise it's five dollars a pie you see if your friends or those people that you have available to you well by okay and if it's not going to do that, you don't do it that's fine, but we almost had to sales here. If someone wants to make pies. Sure did you guys don't feel that you see the hesitation, don't don't avoid that. I think that's really great don't say, oh, I'm going to do it just because that's, what others want, right, that's, what we just spent, like the whole phase of psychology, talking about great, yeah, I definitely wouldn't make it was such a brutal year. I mean, I would I would if I had to. Okay, all right, thank you, dan yesterday. Also, really, what it's going for, dan.