Why Entrepreneurs Fail

Tom Corley boats - crop

I interviewed 177 self-made millionaires over a five year period to find out what they did to become rich. . It was an eye opening experience and I wrote a few books about what I learned.

In my study, 51% of the self-made millionaires were entrepreneurs, meaning they made their wealth starting and running their own companies. I not only learned what the rich did to get rich, I also learned about all of their mistakes. And there were a lot of mistakes. I thought I’d share some of the lessons these self-made entrepreneurs were kind enough to share with me:

Pick Your Partners Very Carefully

Success is much easier when you have great partners. Failure is inevitable when you have bad partners. In any new venture pick partners who know what they are doing, have little baggage, have a positive mental outlook, are success-minded and have a hard work ethic. Pick partners who have been there and done that. Never go into any new venture unless your partners have real-world experience in that industry.

Success Requires Risk and Sacrifice

You cannot succeed without taking risk and making sacrifices. The sacrifices you will have to make are many. The most significant will be time away from family and friends.

Trust Your Gut

By gut, I mean your subconscious mind. Your subconscious mind picks up things that are otherwise invisible to you. Always listen to that voice in your head. It is your gut telling you what to do or what not to do. That voice becomes loudest when your emotions are at their greatest.

Success Takes Far Longer Than You Expect

Success takes a long time. Far longer than you expect. See Rule of Three below.

The Pursuit of Success is Very Stressful

Things will go wrong. When they do, they create enormous stress. That stress affects you, your loved ones and your business partners. It will negatively affect your health unless you mitigate it by exercising every day.

Fund Your Business with Your Own Money

When you are the source of your working capital, you are in control. When you depend on others for your working capital, they are in control. You will have to do what they tell you to do. You are their slave.

Assumptions Have No Value

Assumptions can cause you to look at things through rose colored lenses. Most assumptions in a business plan are wrong almost 100% of the time. Always pilot test every assumption before you accept it as fact.

The Pursuit of Success is Exhilarating

There will be ups and downs along your path towards success. More downs than ups. But the ups make it all worthwhile.

Success Requires Good Luck

In the pursuit of success, unexpected things happen. Sometimes they are good and sometimes they are bad. To some extent, success and failure are outside your control. Luck plays a critical role in success.

Failure is Humbling – It Can Drag You to Your Knees

Failure is an emotional experience. It can take the financial legs out from underneath you and your family. It can destroy your life..

You Must Overcome Adversity

Obstacles, pitfalls, wrong assumptions, mistakes and the unexpected can stop you in your tracks. Sometimes you can overcome those hurdles and sometimes you cannot. Those who succeed are able to overcome adversity. Those who are unable to overcome adversity, fail.

Be in Control of Your Business

Control means owning more than 50% of your business. Those who have ownership control of your business, control your business, your future and your life.

Pilot Every New Idea

Test new concepts first before diving in full-time into any venture. Dive in full-time only when the business model has been proven to work.

Have Fallback Savings

In every start-up, things will go wrong. Make sure you have set aside funds to help you and your family survive if you fail.

Understand the Rule of Three

It takes three times as long as you think, costs three times as much as you expect and revenue and profits will be one-third as much as you anticipated.

Business Plans are Worthless

Business plans are not worth the paper they written on. Never go into any venture solely on the basis of a business plan.

Have a Powerfully Strong Marriage

If you are married, make sure you have a strong marriage before pursuing any venture. If you have a weak marriage and things go wrong, it can jeopardize your marriage.

Go Lean

Don’t hire anyone. Use subcontractors. Don’t rent. Work out of your home.Only hire employees when you are succeeding and the business model has been proven to work. Work out of a shack if you have to until you have a steady revenue stream.

Keep in Constant Contact with Your Network

Pursuing success demands a great deal of your time. It’s easy to lose contact with your friends and former colleagues. Don’t ignore your relationships. You will be calling them to help you find a job if the business fails.

 

Rich Habits Poor Habits Episode 3 | Do the Rich Work More or Less Than the Poor?

Believe it or not – the more you work the richer you become

In Tom Corley’s 5 year Rich Habits research he discovered that one of the reasons the wealthy accumulated so much wealth was due to the fact that they worked more hours than those who were not rich, or those who were poor.

Here’s some of the data from Tom’s Study:

  • 44% of the wealthy worked 11 hours more each week than the poor. 18341166_l
  • 86% of the wealthy who had full time jobs worked 50 hours or more each week, whereas 57% of the poor who had full-time jobs worked less than 50 hours each week.
  • 88% of the wealthy took fewer sick days than the poor.
  • 79% of the wealthy, on top of their robust work hours, networked 5 or more hours each month. 55% of this networking was done during their lunch hour.
  • 65% of the wealthy were working so many hours, in part, because they had 3 sources of income to manage.
  • 45% had 4 sources of income. Only 6% of the poor had more than one source of income.
  • 67% of the wealthy watched less than an hour of T.V. a day, whereas 77% of the poor watched more than an hour of T.V. a day.
  • 63% of the wealthy spent less than an hour a day on the Internet whereas 74% of the poor spent more than an hour a day on the Internet.

 

 

 

 

Rich Habits Poor Habits Episode 2 | Super Parents Raise Kids Who Become the 1%

Ever wonder where the Rich learned their Rich Habits?

In Tom Corley’s 5 year Rich Habits research he uncovered one overriding fact: Parents are responsible for poverty, the wealth gap and income inequality.

Not Wall Street, not the economy, not the 1%, not government policies, not your life’s circumstances – Parents!

Watch as we chat and learn more:

Some data from Tom’s study

  • Super Parents make their kids read every day for self-education. Thirty minutes or more of self-education reading was the minimum.
  • Super Parents enroll their kids in mentoring groups such as: The Boys or Girls Club, Boy Scouts or Girl Scouts, Big Brother or Big Sister.
  • Super Parents withhold 50% or more of any money their children receive and put this money into savings.
  • Super Parents review their kids homework. They become their child’s Accountability Partner.
  • Super Parents limit the consumption of T.V., use of Internet and video game playtime to one hour or less every day.
  • Super Parents make their kids exercise aerobically for 30 minutes, four days a week.
  • Super Parents punish their kids for losing their temper.
  • Super Parents punish their kids for saying inappropriate things.
  • Super Parents attend every Parent-Teacher conference. kids money learn teach coin child lesson school piggy bank mum mother parent
  • Super Parents instill in their children individual responsibility for their life circumstances. Excuses or blaming others for life’s circumstances were not allowed.
  • Super Parents instill in their kids a positive mental outlook. They embrace the American Dream, positivity and embolden their kids with a sense that life has unlimited opportunity, irrespective of current circumstances. Consequently, their kids are positive, optimistic and enthusiastic about life.
  • Super Parents teach their kids the importance of goal-setting, creating a vision for their life and pursing their dreams.
  • Super Parents teach their kids that they create their own good luck in life.
  • Super Parents continuously expose their kids to different activities in order to help them uncover hidden talents and passions.
  • Super Parents are loving, caring mentors to their children. They provide a foundation for success that gives their kids a head start in life. Consequently, their kids enter the adult world with confidence and an optimistic mindset, both of which are critical to success

 

 

 

 

Vox Populi (The People Have Spoken)

The American Dream has been around since the founding of our country. It became a reality to millions in the mid-1800′s during the Industrial Revolution. Poor, starving families left their farms and agrarian way of life in search of opportunities in the booming cities of America. Millions relocated into these thriving cities in search of opportunities that not only enabled them to avoid starvation, but to prosper. As the American Dream rewarded those courageous souls, the economy grew into the largest economy in the world.

Andrew Carnegie is perhaps one of the best examples of the American Dream at work during that time period. A poor Scottish immigrant who, in spite of his abject poverty, worked hard and smart to pull himself out of poverty and into the history books, to become at the time, the wealthiest man in the world.

The American Dream made that possible. It offered every American, and every welcomed immigrant, hope for a better life. Those who embrace the American Dream believe every generation will be better off than the last. They believe that, no matter the circumstances you were born into, you have the opportunity to rise above those circumstances.

Our founders created a Constitutional Republic which virtually guaranteed that the forces of evil who seek to undermine and destroy the American Dream, would ultimately be vanquished by a seemingly innocuous right built into the fabric of the Constitution – the [Read more…]

Rich Habits Poor Habits Episode 1 | The Results of a 5-Year Study Discovering Why the Rich Keep Getting Richer

Almost everyone wants to become rich.42794377_l

According to Tom Corley’s 5 year Rich Habits research, being rich eliminates 67% of the problems that plague most people.

So, besides being able to buy that house by the beach, a Rolex watch or travel to exotic places, being rich means fewer problems in life.

Fewer problems equals less stress.

Less stress equals a healthier and happier life.

Watch this video as Tom and I chat about his 5 year study into the success habits of the rich – and it we discussed what I think was some intriguing information.

You’ll learn about:

    • The difference between rich habits and poor habits
    • What the rich do to become…rich
    • How your Reticular Activating System controls your thoughts and habits
    • How habits are formed and how to change hem

 

 

 

 

Rich Habits Poor Habits Episode 23 | Common Habits Stopping People From Getting Rich Part 1

Are your habits preventing you from getting rich?

In Tom Corley’s five-year Rich Habits study of 233 rich people and 128 poor people he discovered that your habits dictate your circumstances in life.

In this week’s video we discuss 5 common habits holding people back from being Rich.

These include:

1. Gambling

There is no such thing as getting rich quick.

Financial success takes time, takes initiative, and requires relentless effort

Those who gamble are deluded into thinking there is a shortcut to success.

In his study, 52% of poor people gambled on sports at least once a week and 77% played the lottery every week.

Conversely, 84% of rich people did not bet on sports and 94% did not play the lottery.

Self-made millionaires don’t pursue any get-rich quick schemes.

Instead, they make a habit of pursuing their dreams and their goals.

2. Eating an unhealthy diet

Poor health habits create detrimental luck.

In his study, 97% of poor people ate over three hundred junk food calories each day, 69% ate fast food three or more times a week, 69% ate candy more than twice a week, and 66% were overweight by at least 30 pounds.

Wealthy people value their health.

In addition to eating healthy, they exercise consistently, sleep seven or more hours every night, and make a daily habit out of flossing.

3. Drinking too much alcohol wine drink alcohol

While the occasional glass of wine or beer is fine, drinking too much could impede your chances of financial success.

Fifty-four percent of the poor in my study drank more than two glasses of beer, wine, or alcohol each day.

Eighty-four percent of the self-made millionaires in my study drank less than that.

Drinking too much could affect your memory and ability to think clearly.

Plus, it’s a lot of extra calories and isn’t part of a healthy diet.

4. Hanging out with toxic people

Who you hang out with matters more than you may think.

Eighty-six percent of the rich people in Corley’s study made a habit out of associating with other success-minded individuals.

They also make a point to limit their exposure to toxic, negative people.

On the flip side, only four percent of the poor in my study associated with success-minded individuals.

Ninety-six percent associated with negative, toxic individuals.

You are only going to succeed in life if you surround yourself with the right type of people.

5. Watching too much TV

Seventy-seven percent of the poor in my study watched more than an hour of TV every day. children-403582_1280

Sixty-seven percent of the self-made millionaires in my study watched less than an hour of TV every day.

The rich would rather be educated than entertained.

They replace TV time with reading, thinking, exercising, or any other form of self-education.

Making productive use of time is a hallmark of self-made millionaires

Wasting time is a hallmark of poor people.

You can catch up with past episodes of this weekly webcast here Rich Habit, Poor Habits – Tom Corley & Michael Yardney

You may also be interested in viewing:

RICH HABITS POOR HABITS EPISODE 22 | WHAT DOES IT TAKE TO BE SUCCESSFUL PART 2

RICH HABITS POOR HABITS EPISODE 21 | WHAT DOES IT TAKE TO BE SUCCESSFUL PART 1

RICH HABITS POOR HABITS EPISODE 20 | NO IS A RICH HABIT

RICH HABITS POOR HABITS EPISODE 19 | IS BEING RICH OR POOR A CHOICE?

 

 

 

 

SUCCESS Magazine Audio Interview With Darren Hardy – 16 Habits of the Very Rich

Success Magazine Cover

 

 

 

 

If you want to hear more of these amazing SUCCESS Magazine interviews you can find them here, at SUCCESS Podcasts.

 

Top 6 Habits of Successful Entrepreneurs

Tom Corley boats - crop

The life of an entrepreneur isn’t easy. The early stages of every start-up is fraught with obstacles, potholes, dead ends and wrong turns. I know a lot about successful entrepreneurs because I studied 177 self-made millionaires over a five year period in order to find out exactly what they did to become successful. I share much of that research in my book, Change Your Habits Change Your Life. One of the things I share in my book is that entrepreneurs have certain routines that enable them to navigate around or overcome the many obstructions that get in their way. Below is a snapshot of six of the top habits, the successful entrepreneurs from my study, had in common:

#1 They Are Obsessed With Self-Education

Successful entrepreneurs educate themselves like their life depended on it. They read books, articles and blogs. The listen to podcasts and audio books. They watch TEDx talk, educational videos and YouTube interviews of successful people. According to my research, 88% of self-made millionaires read thirty minutes or more every day solely for self-education.

#2 They Seek Out Expert Mentors

Successful entrepreneurs find mentors who are experts at what they do. They ask them questions, tapping their knowledge and experience. Finding a mentor is the fast track to wealth accumulation according to my study. Ninety-three percent of the rich in my study who had success mentors attributed their wealth to those mentors. Since the average rich person in my study was worth $4.3 million, this means finding a mentor is like having someone deposit $4.3 million into your bank account. Mentors smooth out the path towards success. They help you avoid making mistakes.

#3 They Are Real Life Action Heroes

Successful entrepreneurs are a lot like action heroes in that they take action that makes most people cower in fear. They take action because they know that only by taking action will you figure out what works and what doesn’t work. Action leads to knowledge, learning and growth. Successful entrepreneurs understand that in order to become successful they need to grow into the person they need to be in order for success to happen.

#4 They Are Process Oriented

Once they figure out what works, successful entrepreneurs document it. They create written processes for everyone on their team to follow. These processes automate success and minimize mistakes and errors.

#5 They Find Apostles for Their Cause

Successful entrepreneurs spend years finding and building a team of talented individuals. According to my research, it takes an average of three years to find the right team. Successful entrepreneurs are quick to fire and slow to hire, because most have very limited working capital starting out. They don’t have the luxury to carry anyone who isn’t adding value and helping them pull the cart. The successful entrepreneurs diligently search for talented individuals who buy into their dreams and goals.

#6 They Don’t Follow the Herd

Successful entrepreneurs are not followers. They’re trailblazers. Because they are pursuing a dream, they are forced to separate themselves from the herd. The herd is risk-averse. They avoid anything that’s outside their comfort zone. Successful entrepreneurs embrace the new and the different. Those entrepreneurs who succeed, soon find themselves with their own herd. Success brings more and more people into the herd of successful entrepreneurs. These entrepreneurs understand that the more people they bring into their herd, the more successful they will be and the more wealth they will accumulate. Millionaires have hundreds in their herd, deca-millionaires have thousands, and billionaires have millions in their herd.

 

How This Indie Author Landed a Big Time Publisher

Tom Corley boats - crop

Being a self-published author is not a choice for most authors. Rather, it’s a fallback option for authors who are ignored or rejected by the publishing establishment – literary agents and traditional publishers.

It costs money to self-publish I found out. I spent close to $20,000 to self-publish my books. I spent another $50,000 for PR companies, publicists, book promotions, book giveaways, travel (speaking engagements), website revamping/tweaking, and many other costs, too painful to recount.

I’ve been a self-published author since 2008. My first book, Rich Habits. went on to become an Amazon bestseller in the U.S., Canada, the UK, Australia and India. Two subsequent books also went on to become bestsellers. One of them, Rich Kids, even won an award from Writer’s Digest, a well-respected trade publication for writers.

But, none of my success came easy. I encountered many obstacles, yet, despite all the obstacles, I persevered. I learned that success in the author business requires daily dedication. In defense of publishing establishment, they  know most self-published authors won’t do the things they need to do in order to succeed. Those few who are committed to becoming successful authors, do three things every day for many many years.

The Three Daily Habits of Successful Authors [Read more…]

Rich Habits Poor Habits Episode 22 | What Does it Take to be Successful Part 2

Is success just a matter of luck?
expert leader chess game strategy business win success lose think mind psychology

Despite most people thinking that successful people just got lucky – the reality is it take much more than that.

Rich successful people have developed certain habits and beliefs that have guided them through their.

In Tom Corley’s five-year Rich Habits study of 233 rich people and 128 poor people he discovered that your beliefs dictate your circumstances in life.

The wealthy adopt certain beliefs that promote success.

In this week’s video we discuss 10 habits that successful people posses

These include:

  1. All success requires an optimistic, positive mental outlook
  2. All success requires the development of processes that work
  3. All success requires adding value to the lives of others
  4. All success requires creating a herd of followers
  5. All success requires stepping outside your comfort zone
  6. All success requires laser-like focus
  7. All success requires developing unique skills and the acquisition of knowledge specific to your industry
  8. All success requires creating the opportunity for luck to occur
  9. All success requires the ability to pivot around obstacles, pitfalls, mistakes and failures
  10. All success requires the ability to survive until you thrive

You can catch up with past episodes of this weekly webcast here Rich Habit, Poor Habits – Tom Corley & Michael Yardney

You may also be interested in viewing:

RICH HABITS POOR HABITS EPISODE 21 | WHAT DOES IT TAKE TO BE SUCCESSFUL PART 1

RICH HABITS POOR HABITS EPISODE 20 | NO IS A RICH HABIT

RICH HABITS POOR HABITS EPISODE 19 | IS BEING RICH OR POOR A CHOICE?

RICH HABITS POOR HABITS EPISODE 18 | FEARLESS HABITS OF ENTREPRENEURS