How Long is Your Time Horizon?

You want to succeed.

But will you recognize success when it happens?

What will be its indicators? How will you measure it?

Most importantly, how long are you willing to pursue it?

You probably overestimate what you can accomplish in a year, and underestimate what you can accomplish in ten years.

How many years have you been pursuing your dream?

Experience is the name you are allowed give to your mistakes, but only if you have learned from them.

1. Some people have ten years of experience.
2. Most people have one year of experience ten times.

Ninety-nine percent of business owners* will continue to defend their marketing beliefs and management practices even when those beliefs and practices continue to underperform year after year.

These business owners underperform because traditional wisdom often feels like common sense.

The problem with traditional wisdom is that it is usually more tradition than wisdom.

Here’s how that happens:

1. Your goal is lead generation.
2. You create an ad that mixes urgency – a limited-time offer – with a strong value proposition. The features-and-benefits of your limited-time-offer dramatically outweigh the price.
3. Your plan is to upsell the customer after they allow you into their home.

This is called “transactional advertising” because you are advertising a transaction.

Here’s the problem: Transactional ads don’t differentiate you. In fact, they blur you into your category, making you indistinguishable from your competitors.

This is Today’s Traditional Wisdom:

STEP 1: Give Google most of your profits and keep your fingers crossed. Keep a sharp eye on your cost-per-lead, your conversion rate, and your gross profit per sale.

STEP 2: Keep doing this, week after week, month after month.

STEP 3: Once a year, calculate how much your cost-per-sale has increased.

STEP 4: Contact the people in your peer group to see if their experience has been the same as yours.

STEP 5: Yes. Their experience has been the same as yours.

STEP 6: Tell yourself, “Everyone else in our category is experiencing exactly what we have been experiencing. This means that everything is under control.”

STEP 7: Continue to do this. In 9 more years, you will have had one year’s experience 10 times.

Roy H. Williams

PS – A smart person makes a mistake, learns from it, and never makes that mistake again. But a wise person finds a smart person and learns how to avoid that mistake altogether.

A wise person discovers relational marketing.

HOORAY! One of the earliest graduates of Wizard Academy – our famous friend Greg Farrell – has been named Executive Director of the Pelham Examiner. This is a worthy endeavor for an AcadGrad. The mission of the Examiner is to train the next generation of serious journalists. Prior to his appointment, Greg held important positions at Adweek, USA Today, and the Financial Times. He was at Bloomberg News from 2011 until his retirement.

*ADDENDUM

We gathered data from 64 reputable sources. It can reasonably be estimated that there are about 117,000 companies in the US that provide HVAC services, 132,000 provide plumbing services, and 252,000 provide electrical services. (117,000 + 132,000 + 252,000 = 501,000).

Let’s assume for the sake of this example that those numbers are elevated. A lot of home service companies offer two or more services.

Let’s further assume that a lot of them are going to be commercial, not residential. So we will reduce the aggregate estimate of 501,000 companies down to just 100,000 companies competing for the opportunity to serve homeowners across America.

Here is the fascinating part: we know for a fact that only 638 of those companies have a top line of $20,000,000 or more each year, and just 280 of the 638 will do $40,000,000 or more.

Having worked with several of those over-performing companies prior to their sale to private equity, I can assure you that none of them were built on traditional wisdom. – RHW

Jackie Lapin’s passion was for traveling the world and taking photos. But Jackie’s passion has now blossomed into a thriving business with an impressive community of members. She is providing blog posts, photos, curated reading lists, historical insights, and exclusive travel resources with people who share her wanderlust. In this marvelously candid interview with deputy roving reporter Maxwell Rotbart, Jackie will convince you that turning your passion into a thriving business isn’t just possible; it may be the most direct and rewarding path to a robust income stream. MondayMorningRadio.com