It is truly possible to achieve your dreams personally and financially. Learn 6 steps we can all take to turn our dreams into reality from franchising guru Terry Powell. Terry Powell has helped over 10,000 people invest in a franchise.Sign Up to Watch
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-Now the third step here IS design a detailed plan. Now this is not just a vagary. We're starting into some detail now. It's starting to take some form, take some shape. Terry, Napoleon Hill, the late, great success author and personal apprentice of at the time Andrew Carnegie, who was one of the world's wealthiest men, he says, he wrote, "Definiteness of plans. The successful leader must plan his work and work his plan. A leader who moves by guesswork, without practical, definite plans, is comparable to a ship without rudder. Sooner or later he will land on the rocks."
How important is for every entrepreneur, in your mind, to actually design a detailed plan for their lives and their businesses when their learning how to start a business? And actually take the time to really write out a plan and not just say, I"I want to be successful," but to actually take the time to write it out and to make some specific details there?
-It's crucial, having pretty much every franchise business, as a byproduct of going into a franchise you'll have a business plan, you'll have a marketing plan. Now all businesses have those, but we know not all businesses are going to be in the top 20 percent of those franchises. So the real shift is understand that a business plan and a marketing plan are sort of pre-wired with batteries included when you go into a franchise.
The next step is what's going to be your motivator as that owner to continually get up every morning and drive yourself to accomplish and grow and turn that vehicle into wealth and equity, not just income and lifestyle? And that's where the visualization of the pictures of the things that you're aspiring to, what's going to be your family life as a result of the vehicle that you're going to invest in? Really getting visual about it so you can see the pictures of the types of homes you are going to have and the cars you're going to drive.
-I want to make sure I'm understanding this here. So one is you're saying you've got to figure out what's going to be your motivator. So you have to visualize it, maybe rip some pictures out of magazines, put pictures of the houses you want, the cars you want, the trips you want to go on, the experiences you want to have. Get the visuals, and maybe a poster board or putting it on a mirror somewhere?
-Vision board, OK. And for those you are not familiar with the vision board, this is going to be like a poster board, like back in the day when you made a project for school or college you put it on the board. Boom. Then you put that where you voulf see it, and then those motivators are what make you have the tenacity needed to actually implement the business plan, the marketing plan that you're buying from the franchise.
-Every time, even your peripheral vision picks up on some of those visuals or note cards with a comment about your future on it, it really brings you back into focus, subconsciously, on where you're going, instead of being caught up in what's going on today. So those types of visuals and that type of writing it down, having it next to your bed, having it on the refrigerator, having it in your car, having your vision board at your office, are really going to create that.
-Can you give a little story time with Terry Powell here about maybe you have a franchise owner that you've worked with over the years that you saw them actually make a dream board and who is now doing something magical? Or somebody that you met years ago, and now they're doing something unbelievable that was pretty pig-headed about making a vision board?
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-There's lots of stories associated with people that visualize and then put it into a vision board and what they've been able to do. But one comes to mind just from a standpoint of challenging themselves around that vision board and to grow their vision to a larger degree. It was a gentleman who was focusing on growing is business 10% the next year and set that goal and came in at 6% and was disappointed. Came back, updated his vision board, set the goal for the next year at 10%. came back at 6%. Was disappointed.
So we had a conversation about it. We talked about as vision board and the vision wasn't empowering enough to drive that business to the next level. So he revamped the vision board with some coaching, and I said, "Now you need to set a target for your year that's in alignment with your vision board." He said, "Well, that would be 10%." I said "No, that was the past vision board. This looks like a 50% increase."
-And he just couldn't believe it. I said, "Well, does your vision board represent you achieving that? And is that motivating you to do it?" He said, "Absolutely." So he set the goal for 50% increase. Unfortunately, he only came in at 42%.
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-I have found this, that countless entrepreneurs have said it in different ways, but if you're a dream does not keep you up at night and wake you up early, you don't feel like your hair's on fire, it's not a little scary, then it's probably not big enough of a motivator for you.
TERRY POWELL: Absolutely.
-So we have to set big goals. And I know that for me, an example of what not to do. I remember working at Target-- nothing wrong with working at Target, we all start somewhere. I was working at Target, at the minimum wage, and I started to set little goals for myself, realistic goals of well, if I could just make an extra $0.25 an hour, or another $0.30 an hour, maybe a year from now I could be making an extra $0.50 an hour, instead of thinking, well, how can I double? And luckily, I read Think and Grow Rich by Napoleon Hill, and it just shocked me out of that thinking, where I could have got in that rut.
But if you're watching this right now and you feel like, gosh, I am guilty of having some small, small, small goals, you heard an example here. This is a guy who had 10% annual growth goal, and missed, hit 6%. But then he shot for 50%, and came short at 42%. So aim for the stars, because worst case scenario you miss, and you maybe hit the outer atmosphere, or you at least get to pretty high altitude, there.
-Now, moving on here to step number four. Determine if your current employment will help you reach your goals. Now, I am particularly passionate about this, because I do not believe that every single person watching this needs to immediately quit their job and start a franchise, or start a business. I also believe there's a lot of people who are watching this who definitely need to get out of that stuck in a rut job you're at now. But walk me through this, what it means to determine if your current employment will help you reach your goal.
-Well, that's basically an ongoing career evaluation. And that's looking at what's happened in the last several years, and what's predictable about what will change, going forward. We talk a lot about the definition of insanity, doing the same thing over and over, and expecting or hoping that the results will be different. That's not a good plan. So if that's what you're basing your current decision to stay employed, it's just because you have a predictable paycheck-- and even that's questionable today-- you really have to determine what you're aspiring to accomplish, and whether just income is going to be enough for you.
In today's employment environment, income is pretty much all that comes with it. There used to be lifestyle. Some employment situations still have lifestyle. But rarely do they have wealth and equity. And that's the key. Unless you have all four, you're really not self-sufficient.
-So let's say this. Let's say that I'm working at a job right now. I could think of one example. There's a gentleman I met, a very, very successful guy. He stayed in a company, and the company said, well hey, if you work with us for a given period of time, we're going to give you a percentage of ownership, or you can earn some equity. And for him, he stayed in that corporate environment and did very, very well. And I think of other people who have been in a job where they know for sure they're not going to get wealth, they're not going to get equity, they're not going to get-- but they just stay, year after year after year. Is that kind of what you're talking about, if you're not getting wealth or equity, you need to probably move on?
-Yeah. I worked with a client who was number six employee for Home Depot, and retired at 32 years of age with a nice little nest egg, and then decided to go into his own franchise business. So there are situations where that happens, but he was smart. He didn't stay with it. He was able to accomplish that, cashed out, and went to do his own thing.
-So not everybody-- but you're right, not everybody is well suited for a franchise or business ownership, either.
-I just encourage you to be honest with yourself, self-evaluate yourself, and really ask yourself, is the current job I'm at, is that going to help me reach my goals? And if the answer is no, you don't need to quit tomorrow. You just need to-- you can actually buy, and we'll get into that in some different trainings we have, but you can actually buy a franchise if you wanted to, and stay at the job.
TERRY POWELL: Yes, you can.
-You can do that. So don't feel like we're saying that you have to be crazy, and all or nothing. I mean, there's ways to do a little bit of both.
Now, moving on to step number five. Determine if self-employment will help you reach your goals. Now, I'm going to give an example here of a story that I tell often. And it's sort of sad, but I see it a lot. It's the business owner-- met with a gentleman years ago. He asked me to help him with consulting. And I sat down and I said, when you sell a product, how much money do you make? He says, well, about $85. And I said, OK, how many days of prospecting does it take you to sell a product? He says, well, about two.
I said, so you're going to make about $170 to $250 a week? And he's like, well, yeah. Yeah, that is just extra. I work at this other job, full time, and I work here just part time, and I'm able to make that. And I said, well, what if you devoted your full time and energy into that? And he says, well, I could probably make $400 a week.
And I thought, well, why are you doing it? And he went on and on, and he listed all these things about how he's helping the community, and he's helping-- he believes in the product, and he's helping the community, and he believe in the product, and he's helping the community, and this sort of logic, over and over. And I said, but financially, are you ever going to get to your goals? Have you thought about this? And he says, no, but I am helping the community, and I'm--
And so I think there's a lot of people that have built their own wage cage in their own business. They've bought a business model that isn't replicatable, scalable, profitable, all that. How often do you see that, where you're coaching a client who owned their own business, or who owns one that's not profitable, and can never be?
-In franchising, it's not that common. But in non-franchise businesses, which we do a lot of coaching in small to medium sized businesses, that's pretty common in an entrepreneurial environment. Even the ones to drive success early on get to that point of ceiling of complexity, where the business doesn't really continue to grow. And they get frustrated by it, and it's time to really either take that business to a new level, or shift to another business.
-Forbes wrote an article. There was an article that appeared in Forbes, by Eric Wagner. And it says, as of 2013-- this is about a year back now-- it's said that eight out of ten businesses will fail within the first 18 months. And, one of the things that they found and the researchers find when they look into these business models, is some of them couldn't possibly work. I'll give you one more example.
Years ago there it was a dessert business that I had ended up not doing work with. But they were in the west coast. And I remember meeting this person at a franchise. It was a business model discovery conference, where people could discover whether franchises were right for them. It was put on by a local chamber. And, I remember talking to her and she was so jazzed about the products. But I did the math, and I was like, you'd have to sell 1500 to 1600 of your products a week in order to just break even. Is that possible? And she-- nope, it's not possible.
And sometimes we don't take the time out to think about it, because we're so-- we don't think about the potential profitability-- because we're so passionate about that dessert item, or about that business model. Do you see this a lot when you're coaching independent business owners? Where they're so passionate about the baseball card shop, or the whatever the company is that they don't even stop to think about whether they could actually make a profitable living?
-Well, that's one of the joys of being an entrepreneur is that you constantly have new ideas. And the downside of that is you believe every new idea is plausible and will be successful. And that's never the case. I've had--
-Every new idea.
-Yeah, I have a lot of ideas, over the years, that weren't successful. And it's about making sure that you're exploring enough of those and deploying on those that are. But you're right. People get entrenched in their ideas, and they're passionate about something, or their excitement about it. And don't think through whether or not it's plausible from a business model.
-The guy who invented Skyy Vodka, Maurice Kanbar, I had an opportunity to work with him for awhile. And he was explaining in his book, called The Inventors-- it's called Inventors Handbook. He was explaining that he had come up with a system to make organic cheese, some kind of organic cheese. And when he did the math, he realized under no circumstance could it ever be profitable. So he immediately just quit. He said, I'm not doing that. I'll move on to another invention. But that's why he's been so successful is because he's always asked the question, is it potentially a profitable thing.
Thomas Edison was a master of that-- asking is this invention potentially profitable. So if you're watching this and you have an invention, or an idea, that can't work maybe we need to just get over that and move on to another idea here. Now moving on to Step 6-- Choosing To Have Faith and To Reject Doubt. Now, Martin Luther King, Jr., famous civil rights leader, a guy who a lot of people credit as having helped really bridge the inequality gap in America, just unbelievable, inspirational leader. He once described faith by saying, "Faith is taking the first step even when you don't see the whole staircase."
How would you describe what it means to have faith in the context of owning your own business?
-It's critical to have faith in what you're doing in any type of situation, business or otherwise. But, if you don't have faith, you're typically functioning from a concept that we refer to as you'll only believe it when you see it. So you are constantly looking to see it being proven or results before you believe in it. And that continually pushes out the results, because you don't have the belief in it. People are being drawn to you and your business when your faith and your belief in what you're doing is much higher. So the downside of that is needing to see proof before you actually execute or drive something.
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