This is Why You’re Losing Money!

In this episode, Matt Haycox is getting real about the common money traps entrepreneurs fall into, and most importantly, how to avoid them. Entrepreneurs often trip up when they venture into new areas or expand too quickly in their current business. It's like thinking you're a pro at one thing, so you'll automatically nail something else—totally not true! The key here is to keep learning and really know every bit of your business, even the stuff you let others handle. Stick to what you're best at and make smart moves like investing in things that are safe and steady, like property or stock market tracker funds. That way, you can cut down on risks and make the most out of your money in the long run. Tune in for some solid strategies to grow your business smart and make those financial gains!

Timestamps
0:00 - Intro
0:09 - No Experience
1:27 - It's Within The Business They Have Already
2:31 - Summary

Chapters

• 0:00 Intro
• 0:09 No Experience
• 1:27 It's Within The Business They Have Already
• 2:31 Summary

Transcript

When it comes to how do entrepreneurs lose money? Or particularly where do entrepreneurs lose money?

For me, it always boils down to areas where they haven't got experience. Now, this can be one or two ways. This can be in completely different business models, you know, business models away from where entrepreneurs of got their experience or it can be in particular areas within the business that they actually operate. For me, both are very similar, but normally come about from two separate  reasons. When entrepreneurs become successful and listen, I'm very guilty of this as well, know, I think because we are successful in one area, we think that that qualifies us to be successful in many areas. And it's you know, it's an arrogance and I guess probably the arrogance and confidence that we need to make you successful entrepreneurs in the first place. But I think what we then do is we get cocky and we think, well, I've been successful in that area so I can go and apply my skills and my success into many other areas. And invariably we fail and I say we because I want to include me in this in this mistake making arena. I'm trying to think of the first thing that I was particularly disastrous in. And it it doesn't particularly spring to mind. But, you know, we think that the skill sets are transportable from one business to another. And obviously many, many skill sets are transferable, you know, with us sales or marketing or finance, etc.. But every business has its own intricacies.

So big area that people make mistakes then lose money is by going into a different field to soon or unnecessarily. Secondly is within the business that they have already. Now I'm a massive advocate for learning. You know, anyone who's followed me for a while, I'm always talking about how you should be learning as many things as possible, about as many different areas of your business as possible. And for me, that is so no one can ever pull the wool over your eyes in any particular area, whatever it is, even if it's a feel, even if it's an aspect of your business that you're not going to be doing yourself, that you're not going to be very hands on. And it's always imperative that you know as much about that as you can It might be to do with marketing. For example, and you may never be the person who's going to do the SEO for your business or you may not be the person who's going to do the the paid campaigns, but it's still really important to have as much knowledge of each of those different areas as possible, because when it comes to hiring staff, when it comes to employing external agencies, you need to know if the bullshitting you. I guarantee you that nine times out of ten somebody will be bullshitting you about something. if you can give yourself enough knowledge to stop yourself from being bullshit, it is going to make sure that you are the don't lose or lose as little as possible in these areas.

So entrepreneurs lose money when they go into fields that they don't understand. Could be a completely different business model, could be areas of the business that they're operating. And the way to combat this is to make sure you're always learning, to make sure that you've got a wider skill set as possible and to always learn the tasks that you need other people within your business to be able to do. And secondly, when you've been successful in your business, double down on it, triple down on it, quadruple down on it, and see, you've got nowhere left to go with it. Don't get bored, don't get shiny object syndrome and try to move from your business into another business just because you've got the cockiness and the confidence to think, I've been successful in this, so I'm going to go and be successful in something else because nine times out of ten entrepreneurs aren't and they've made the mistake and they should have stuck to what they know and just double down on that skill sets.