The 6 Reasons My First Business Failed (and my second one succeeded)
Hello. And welcome, Janet Becker's here and, I have, a very special, episode of romance your tribe radio for you today because. I'm. Gonna be totally, vulnerable. With, you so be kind okay, I am going to share with you the, six reasons, why my first business. Failed. Why. Why. It why. It ended up making it that I lost every single cent, that we, had through, that business and crushed. My confidence. For, years, why. Did that happen and then. Importantly, what. Lessons, did I learn from, that that. Meant but my second, business. Succeeded. Almost straight from the gate out of the gate and has, continued, to grow so. That's, what I'm going to share with you today those six, reasons, that I can see why my business failed, the. Lessons I learned and then what you can do so that you don't make those same mistakes that I made okay. So, just, very quickly the very first, business I had was an internet art gallery, and I, started, that because, at, the, time I was studying this, is about 1516 years ago I was, studying art to, keep me sane while, my children were really little and I. Was living out in western New South Wales and I realized how difficult was for artists to get an opportunity to, exhibit their work, so. That's. When I thought you know what I just, need a way to get to be able to see their work everywhere. Because, you can't just wait for people to come out to Dubbo then. I was also where about this newfangled thing, called. The Internet and I. It. Wasn't you know I wasn't really using it I used email so. That was pretty good and I. Was, learning about the Internet, in fact my current, job at that time was actually. Having. To help other people, you. Know use the internet, you know to be able to with. Projects, that we were doing I didn't know anything about it we brought in a big specialist, so I had heard about the Internet thought it was pretty fancy and I saw the two together and thought I've. Got a business hence. Indigo. Art which, ended up humming the largest, internet art gallery in Australia, at that time before I sold it that, was my first business largest. Internet art gallery in Australia, sounds successful, doesn't it it, was a failure, so. We're, gonna look at why my, second, business for, this example is, wonderful. Web women, when, I started my company niche partners and wonderful. Web women started, off as a quest to find the most successful, women in the world who, had made their money on the internet and share. Their stories with, other women who, were wanting, to grow their businesses, that's. How one that's what wonderful web women was and romance, your tribe which, is where my business has evolved, to grew. Out of, wonderful. Web women and, it was successful right, from the beginning so, we're going to have a look now at the six reasons why, the first business indigo art failed and.
Really. Crushed, my confidence, and, my bank account for a long long time and then. Why wonderful, web women and on, going. Run out your tribe succeeded. So let's get back into it, please. Excuse me I'm gonna refer to my notes because I do not want to miss giving. You any lessons here at all okay. Number, one I didn't test my concept, I had. This really great idea I thought, I could see that artists didn't have anywhere to exhibit their artwork and I. Thought you know what the Internet is this gonna work this is pretty cool so, on the basis, of that I built, a very elaborate. Business. Model I spent a long time thinking. Out. Everything, mapping, it all out creating. Something just truly, truly totally, cool and. You. Know really. Creating, getting elaborate, software, everything. Was Mickey Mickey Mouse, and took a long time to build up I'm. Conceited little I had babies at the same time and but. You know what I didn't. Test the market I went. Straight to. Bead if. I had tested, the market I would have realized I had my business model wrong, and we're going to go into more detail about what that business model was. And, why it was wrong but I would have worked that out quite, quickly. As it. Was it took me years, to. Realize that the business model I had invested so much of my life into it. Was never gonna work never gonna work so, I did not test, the concept, in. The, second business wonderful, web women I tested. The concept, now I'm going to go into detail about how I came up with the business model and, we're going to look at that in the next lessons, but, what. I did do is I. Tested. At first I only, launched. For an eight-week. Project. It, was starting off for eight weeks I was just going to interview eight women, and I had a method that was gonna make it that my I would get sales straight, up and then I would build a mailing list straight up but I was only gonna do it for eight women to see how it went, I, didn't go straight into, building an elaborate membership, site I didn't go straight into programs, into spending a fortune on websites I just. Started with eight weeks it. Took off I can tell you after eight, weeks I thought, wow this. Project, has, now become the whole business, so, that. Was the lesson that I learned so the question to you, do. You have a concept, and then you've gone straight, into planning out the whole thing the big vision and really, putting, all of that into place before, you even put it out to the market if, you haven't test. The market go small first see, what the response is you. Might be completely, off the mark or you might be just slightly off but, that's slightly off if you're investing a lot of time and money it can be enough to make it so that's not gonna work so, you could tweak it if you do that test first, okay. That, was number one. Number. Two which leads on from that I spent. Money on all the wrong things, now. What I did is I. With. This big concept, now this was pre WordPress, so. I went, and spent, a fortune getting a great website made, getting. A very elaborate. Software. Made so, that you, know people could, you. Know choose, their artwork, and then they could get a frame and they could choose the frame and it would show them what they look like and, then then. The freight would be calculated depending, on the frame the size of the artwork, where, the artist was where, the person was getting it shipped to all. Of, this stuff. Elaborate, stuff it cost me tens. And tens and tens of thousands of dollars years. Of development. I went through three developers. Because honestly. I think, I was a bit of a pain in the butt to be honest but. You know I went that was a huge. Investment. And, you know what every time I made a sale people said can, you ring me up cuz I just want to talk to you to see if the artwork was you know what's, the artwork like they wanted to be reassured, I've.
Done Everything over the phone if I'd tested, I would have known that the. Other thing I did is I, invested. Thousands, of dollars getting really, beautiful. Greeting. Cards made that featured, these beautiful, artworks, on the site because I thought we'll send out one with every artwork, and, well. You. Know I'll go out and I will, you, know. People. Anybody who gets a gift, or I'll get a certain little packets of these cards these, are so beautiful that people are just gonna share them everywhere, it, was really just going. To my artists. Side of it it was not a business decision it was an artistic decision. The, same reason with business cards you know people will make these beautiful beautiful business, cards. And. They're not necessarily going anywhere to gift them out. So. That. Was a big mistake I went spend a lot of money on things that were not going to work so. In the second business what was the lesson I learned I did, not spend money on things unless I knew it was absolutely, essential and, I did my research to, find out what's the most cost effective way to do it so while. The time I started wonderful web women WordPress. Was not really being used it, was just being used for blogs but not for membership sites so, I found out what membership sites software I wanted to do I was, very, nice to my husband who I talked into helping me, learn how to, put, it all together so we could both do it and. And. I, went and sold. Heaps. Of stuff on eBay, went around our house and just sold stuff on eBay so, that I got the thousand, dollars that I needed to start it up and that's what I did there, were no no business, cards and get business cards for years, there, were you, know none, and nothing of it that was elaborate, so I just, built up until you. Know and I could see that I needed an investment that's, what I would really really look at it now now I'm also very strict you know I had a bookkeeper, before I even had any income, because, I wanted to know exactly where, my expenses, were going how, my cash flow was and. Making. Sure that, I wasn't spending before I had it so. Yeah. That's might so my thing my action. Point for you is have a lot where you're spending your money are you going. For example, well, Janet, uses Infusionsoft. All the big guns using Fusion softs sure it's hundreds of dollars a month I'm, going to I'm going to use that from the beginning even before I've got a customer, this, is a really typical one I'm giving you as an example you, know that's, one of the things I do with my clients as we work out the cheapest, way for you to get started so you can test your concept, then, you'll know if it's gonna be worth while you're spending, money on the. Top of the range, you. Don't need to okay we just I used PayPal. PayPal. And, Aweber, was what I used for years and years and years we did hundreds, of thousands dollars through PayPal before we got a proper shopping cart so.
Starting. Off small where are you spending your money, okay. Let's. Look at the, next month oh. Now. Listen. Number three why. My first business failed and, my second one that succeeded, this. Was the death Knoll I got my target, market all. Wrong. I, thought. That, my target market were the artists, now, the, model was the artist paid me 50, bucks and that would get all of their artworks up on the site and then, when I made a sale I would get 40% Commission now that's the standard Commission, what it was then for, art. Galleries to take off you know when they sold out for artists, like their retail out of art, galleries are, shops. They're retail shops so that was their markup so, I used exactly the same model but, you know what the. Artists, were not my. Target markets, my. Target market were the people who were going to buy the. Artwork, like dough, you. Know I had this whole thing about I will build it they will come, now, that, was a huge, mistake I confused. My. Suppliers. With. My customers, this. Was the death mole of that, business. You. Know I made a huge mistake. And I. Didn't really realize it until I was broke and it. Wasn't until, then that I started really listening and to. What my clients wanted and it was too late by. Then you, know I had already lost, the money and you. Know I had, already lost. The energy and the enthusiasm for, the business so, this was a big one now with the second, one I did not make this mistake again. In fact I was probably cautious. For a long time because I was not, making, this mistake again so. The very first thing that I spent a lot of time doing competitor. Research. With. My first business you know I was too soon you, know there weren't any there every. Time I got anybody that started, up online as a competitor, I would ring them up and thank them because. Nobody. Ever, thought about buying out on the internet there were too many hurdles to it so. You. Know I started, too early but. I was. Being really really careful when I said a wonderful women I spent a lot of time doing competitor. Research, I also. And, this, is a classic if this is pre Facebook, so. I didn't really have any way to be able to find my target market so my. Target market was, also, at these events, that I was going to learn how to market, online I. Was, going to those events, where, there's lots of speakers talking, about how they built their business on the internet and. My. Target market was they're getting, frustrated, because there weren't any chicks on stage and, wanting to know you know what do win what's women's concept, how do they do this how. Do they do it differently and. So. That's where my target market was and where. Do you think my target, market was when. They, were at these, events well. I can tell you at lunchtime they were all lined up it's a big long. Line trying, to get into the women's toilets and of course along. That line they would be stopping and they'd be talking to each other, so. I was. Not making that mistake again and I had no pride so, I went along that, a line of women who were queued. Up for ages a captive audience with, my mp3 recorder, because I didn't even have a phone back then and I. Went along and recorded them saying, tell me what's your biggest frustration when, it comes to building your business on the Internet. If. I could find the most successful, women in the world what. Would you like me to ask them, so. I, did. That for months after months after, months and all of these events, I knew, my market, exceptionally. Well. I knew, who my target market was I knew that there was a demand so. That's. Why when the first business, when, wonderful web women took off, man. Did it go well, okay. So my question to you. Have. You got the right target market have. You really got the right target market or if you've got the people who you think need you but, are they gonna spend the money are, they hungry enough, for what you can help help, them with now, this is one of the things that I do with my programs, in fact I've, developed a really, unique system, called profitable, avatar Quadrant that gets you super, clear on your for. Avatar. Types and will help you and you will know exactly which ones are the most profitable and, what. To offer them now, every, time I take people through this particular system, they. Have huge, hours, and can, restructure, their business and their, marketing, is so much more spot-on ain't. Nobody gonna make that mistake again around, me, okay. So, that's. My question to you have. You got the right target market.
Okay. The, third mistake, that, was the third my fourth, mistake. That, I made is. I assumed, that, I. Knew. What my real customers, wanted and. What they didn't want you. Know I. Really. Did not do, any research on the people who were buying I thought, I had you, know I did you, know, a bit of you know really like looking at you know reports, that are being done on the state of art in Australia, blah blah blah but it was really superficial stuff and I was really just looking for information that reinforced. That I had a good idea I was very very biased, if. I had taken the time to really get to know them, I would. Have had a lot of greater insights, I didn't start doing that until about the third year in when, I started, going out to the people who buy arts I started going out to companies that buy, arts, you know that would buy buying out say for hotels and things it, wasn't till then that I started talking to them and realize you. Know this is what I've set up is not going to make their life easy. You. Know and one of the things I did discover at the end was. People, were really interested in renting art, especially. If they were doing up their homes and if they were renting their. Art in, order to be able to do their home up to sell and they, are the moved or they didn't they're not selling they would buy that artwork, because. They got to live with it and they wanted it so, it. Was that was right near the end when I found that that was that actually started to work so, there you go that's an idea for you if you're in that market dad actually back then worked. Really really well by that stage though I had discovered, that. There were much easy ways to make money online and, so, I sold the business and with. That idea, to, be able to give to the next person, you promptly. Run it into the ground. Okay, so, with. Me I. I. You. Know I told, your dad already done that research, there in the toilets and what, I also do, is I. Continually. As soon as people join my mailing list I had a quick survey that asked them what their biggest frustrations, were I continued. To survey. My email. List at least once, per year really, getting a good idea on what it is that are their issues and, responded. To that that's, how I knew, that. After about eight weeks my, clients, want to know, not. Just from all of these women who had been interviewing never want to know how I did it how did I manage to do that in eight weeks so. I developed my first $2,000, program because I listened to what my clients wanted, the. Romance route ride program, and, my. Romantic, tribe system, has, come specifically. From, listening, to my clients, who were saying I want, to know step by step how to do what you do Janet in the, way that you do it, let's. Only come from listening to clients. And that's, why my business has changed quite a bit over the years has always been, in response to what my clients, want so. My question to you is are, you, continuing, to, survey your clients are you listening, to them are you analyzing, then, what, they're asking, for and to see if this fits in with what you can be doing is your, market changing, are, you on top of it how connected. Are you to, your customers, and your potential customers, so this is one of the things that I do with, my clients. In my attractor. Tribe coaching, programs is you, know we're going to get super clear I'm really. Getting, to know your target market, so that you, know that you will hear saying things like man it's like you're in my mind you, know exactly what I'm thinking, it's, course you should so.
Yeah. That's that has been core, to. The, success of wonderful web woman and then romance your tribe, absolutely. Core, because. I met that was I'm not making that mistake again, now. Let's. Look at what. Else have I got here, in my notes, two. More things that I did wrong. Okay. Now. You might do this this. Is. This. Didn't make the business fail but. It made me. Not have the resilience, to. Continue, which. Ultimately, leads to failing is, I tied, my personal, identity to, my business identity, now I'm not talking about personal, branding here I'm talking, about self-worth. So. I, stuck. With a business that my if I had been stepping, back, and not, seeing my, identity. As being, related. To how, successful the business was I would. Have recognized, that the business was not working and I. Would have approached, it in a much more detached. Local logical way to see why but. At the time I. Was. Cooled you know I was. This Janet, that was really arty and had this really, really awesome, online. Business. To do with art I mean that's very very affirming, and. It was a core part of my ego hey I told, you I was gonna be transparent, and honorable here um, but. When the business didn't work if I was going to be tying my, identity, in my super, coolness, with that, business when, the business didn't work, who, was I my. Confidence. Talked such a serious. Serious blow, and I'm, a I'm, a very very persistent resilient, person so I kept on going but, if I didn't have so much ego and identity, attached to that I would have been able to be detached, and make wiser decisions. So. What lessons did I learn from that, now. With my business sure it's a it's a personal brand so I am still very associated. With it but I. Now. Let my system. My models. Are the star that's why this is romance, your tribe not. Janet Becker's because. It is my romance, you'll try model, that. Is get successful, people I stand. Back and treat it like an experiment, I I mean truly it is still very much a. Core, part of who I am but, the, business success or failure, is not, my success, or failure my not my self-worth if something, doesn't work well, that. Means that I can look at it dispassionately and, see why and change, it you. Know you, may not realize so for example my cool cats video Academy which, you know has been responsible. For helping, hundreds, of people to be able to create great. You. Know great videos, get confident, you know it's a successful program when. I first launched, it, zero. Sales. But. Because I could look at as an experiment, and dispassionately, I was, then able to see what went wrong with the marketing, tweak. It and, then. It took off so. You, can't do that if you've got so much of your ego because you're just going to go and hide underneath the Doudna because. It's all about you so my, question to you is how, much, are you tying your self-worth to. Your. Business how much of your ego, is associated. With saying, what it is that you do in your business, because. This is going to make it very very difficult for you to make the tough decisions. In your business and. You know what if that's happening in your butt and your confidence has been crushed it's okay, it's, okay that's, a call, that I do in my programs, is all that, mindset stuff because I know at. What point in, the progress in your business certain mind things are going to come up and there's. Ways around that there's, ways around that, so you, know be. Kind to yourself and, step, back and. The. Last one, number. Six is you know what I did it all on my own. What. A crazy slow. Way to do it you. Know I did, a one-day workshop that. Was run from the local, you. Know business enterprise center on how to do a business plan that's. The, training that. I had for. Starting up and. Then, I just, try to work out everything, else myself, you know about. Branding, about going, online about. Marketing. All of. That sort of stuff no wonder, I made so many mistakes no, wonder, I lost, hundreds, of thousands of dollars of poor. Pauly invested, money and at. Least, six. Years, of. Really. Hard, work, that. Could have been spent on something that, was making me money you. Know if I had got a mentor. If, I had invested in.
Coaching. Programs, or in products, that we're gonna help me to specifically, learn the thing that I needed to do I would, have saved myself a lot of money in a lot of time and I would be a lot further ahead now. Then. I would, have been not, as wise of course, but. You, know now, so, what did I do in the second business right. From the very beginning I identified. Where, were the gaps in my knowledge and, in my skills, and then, I sought out who was the best person who, knew how to do that and I, paid them I paid. For programs to get coaching, I paid, for people who could help me on very specific. Technical, things, I paid. Or. I did contras for. Things that, I knew, that I needed the help with and so. You. Know that. Made the big difference because, I knew, that if I had to try to work it all out myself, it. Was gonna be a really really slow path and it was gonna cost me more in the long run so, now you, know I spend thousands, of dollars every year sometimes some years tens of thousands, of dollars on. Mentoring, on coaching, in purchasing. Programs, for me to master a specific. Technique on programs. That have got to do all mentors that have got to do with my mindset, and keeping, me strong and, with. My self-development, I don't. See those as and. You. Know as luxuries. These are absolute. Necessities, for. Me to be able to move. Faster. So, but they're all wisely, chosen it's not just on anything there are always the things that I need but I continue, to invest in that because I know the. Fastest, way for me to get from A to B is, to find somebody who's already gone there and made the mistakes already and can show me the shortcuts, so, that's. My question to you you. Know are you I just sent a see if I've made. My notes here yeah are you doing that are you going to workshops, are you finding. The people who can help you or are you trying to do it all on your own telling, yourself that you. Know this, is the, cheaper way to do it because. I can tell you now it, doesn't end up cheap in the long run it truly, does not. Yes. So they, were the six main, mistakes that I made that meant that my first business failed, and. My. Second, business took, off straight, away like within eight weeks of, launching. Wonderful, web women I had already replaced my previous twelve months income I had. Already had a list of, thousands. Of people, I had already sold. This. Program that people were asking for. I had. Already sold, memberships. To something when people signed into the membership area there was nothing there yet because I still just testing, to see if they'd buy it you know it worked right out you know I had won an award for, this membership site in this first eight weeks I had. You. Know I had people contacting, me from around the world asking me to coach them and I didn't even know what coaching was all. Within eight weeks because, I took, those lessons, from that first failed business and these, six lessons and I did, those changes.
That I've just shared with you so, it makes a huge difference, so. Now. Let's. Do a recap, on what were those lessons, and what can you do so, number one is test, your, concepts, start small don't. Waste, your time using. A lot of energy and a lot of money building up the big business, unless you've actually tested that you've got the right business model and you've got the right marketing. Number. To be, super, careful, with. Your money don't. Spend it on frivolous things that. Aren't gonna result in your getting sales, so. When you're starting out make sure that everything, that you spend is. Actually going to result in you making money faster. Or at least testing, your concept, faster. So you fail faster, and move on, so, be very very careful with your money and keep a track of that. Market. Research, absolutely. Do. Not, scrimp. On doing your market research and your competitor research you, need to know that, you know your market. Number. Four keep. On asking. Your, customers keep. On, not. Just doing the market research once, continue. To do that keep on listening keep. Adapting otherwise. You, will be left behind if. You're not changing and adapting with your clients, and you're just staying stagnant you're. Actually falling behind. Number. Five, treat. Your business like an experiment you. Know an experiment, that you care about but treat it as an experiment, so that your ego is not so wrapped up in what. Your business is, you. Can do better in your business if you treat it like a fun experiment, and, number. Six is. Shortcut. Shortcut the, heartache, and the loss of money by, getting, mentoring, and finding, a community now. That's where I can help you. You. Can check, out the free training that I've got you can come and join our romance or tribe. Free. Facebook, group you, can come and join me as as, a as a paid mentor as part of my programs, in, you. Know the rising stars in our attract to your tribe in any other programs, that I have developed, probably by the time you're watching this so you. Know make, sure that, you're, going to be making the most of resources, are available to you whether, that is short cutting through, paid. Coaching, and mentoring or whether. You're at least going to be taking part in what. Kind of community, has been around so you can tap into other people to help you as well and so, I've got great resources there to help you to do that so do it just make the most of all. Of the opportunities that you've got to, short cut, your. Your success, because you know what you do not have to be on your own you, don't have to be making these mistakes on your own, and there. Are people here that are going to help you, so. That's. My six, reasons why my first business failed and why, my second, business, succeeded. And I do hope, that this has helped you to. Being able to make sure that your, business is, not, going to have to go through that heartache and that you are, gonna be able to keep those goals and create. That business that's going to make a difference, in your life and the. Lives of the people who you help okay as, always please I'd love to hear from you this has been a particularly. Vulnerable. Episode. For me to cut to create so I would truly appreciate, if you would take some time to give, me some feedback and, and. Tell me any hours that you've had from, what I've shared with you today okay, bye.
2018-04-26 11:41
