Financial Mistake #3 Income vs Business Focused

This is the 3rd Mistake in the "13 Financial Blunders Newly Successful Internet Entrepreneurs Almost ALWAYS Make" series.

3) Income Opportunity Focused vs Business Focused

In our Nitro Blueprint System training coming out later this year I say, "Build A Business, Not An Income."

Most people when starting out in business are focused on generating income and lose site of their long-term objective of having a successful, sustainable business.

Logically it makes sense. You need money to pay the bills. And for you to eventually quit your day job you need the income from your business to exceed your job's income. (The "going full time" is plagued with problems as well and is one of the upcoming 13 mistakes we will be covering.)

However if you are only focused on building an income online, you will always be chasing the next income opportunity and never build a true business that provides for you over the long-term.

For example, the previous few years the common form of Mistake #3… was building (useless junk) sites using automated software, getting free traffic by tricking the search engines and then slapping adsense on the sites to make pennies from the visitors who have the misfortune to visit your website.

This worked for some people and many people were able to build up monthly incomes of $5000, $10,000, $30,000 or more.

BUT it always came crashing down and they were left with little or no income coming in and all the work they did and skills they gained were now useless.

And of course they were Future Spending (Mistake #1)and they were assuming that money would keep coming in. So when it stopped they were devastated.

I remember meeting a waiter in Dallas who recognized me and we talked for awhile. Previously he was making over $10,000 a month and living the good life. Then one month his sites were de-listed from the search engines and he made $500 a month. He lost everything and had to get a job waiting tables to try and survive while he recovered from the shell shock.

Another variation…

It is common for people to be focused on a "great idea" for a website or a product. Many times they fall in love with this idea and devote months, even years trying to make it happen.

Then when they go live and try to make money with it they realize there never was a market for their product and nobody buys it!

In the Nitro Blueprint System we drill home the importance of first doing the market research using our two-part formula to verify there is a market and having a plan in place to make it a successful business.

The great Gary Halbert said it best, the most important piece is having a hungry crowd willing and ready to spend money.

Let me share a real life story.

I was talking with my uncle this weekend who just sold his small fishing lake resort business and was looking for a new business to start.

From his research he saw an opportunity to buy cheap, never used mobile homes from the Katrina efforts for a fraction of the cost. Then there was a piece of land he could place those trailers and also came with a house for him to live in. And from his research he saw there was demand for affordable rental housing in the area in the form of mobile homes.

It would cost $100,000 to buy the land, another $8000 per home and $20,000 to put in utilities. He was looking at a cost of $250,000 to get it going.

In return he could rent them out for $500 a month. It wouldn't take long before he would recoup his investment (just $8000 for each mobile home) and pocketing a nice profit every month.

Most people would jump at this income opportunity idea, but he was smart. He is running an ad in the local paper to see how many people are interested in renting a mobile home in that area for that price. Then, based on the response he will know if it is a valid business or just a good sounding but unproven wild idea.

A 3rd variation…

Is the people who always coming up with new ideas start. They will rush off, start it but never really stay with it to make it successful. (A previous blog post talked about this Entrepreneurial ADD)

Then one day they look at their life and see they have a lot of little websites, some making money but they are like the monkey sitting in the middle of it all stuck grinding the wheel to make it work.

Don't be the monkey grinder!

Take one idea and build it up until it is successful and THEN go back and decide on what to do next.

At the end of the day…

We want a business that will provide for us, our family and our dreams and desires for the long-term. We want it to be successful today, tomorrow, next year, 5 years and beyond.

We definitely don't want to exchange the treadmill of a job for a treadmill of a business. You don't want to always have to be chasing the next dollar and looking over our shoulder to make sure you will have money to buy groceries.

In the next post of this series, Mistake #4, we will talk about the solution to this problem and a common mistake people make when trying to overcome Mistake #3 we talked about today.

~Kevin

business, entrepreneur, income opportunity, internet marketing, mistakes, nitro blueprint system, online business, tips

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