Get your head in the game! 5 mental adjustments to improve your wealth.Chia-Li Chien, Ph.D., CFP®, PMP®, CPBC
Chia-Li Chien | Feb. 28, 2013
Need an attitude check? Is your head in the game? Where’s your focus? What are you doing out there? As we go into March Madness, these are the questions a coach may ask his team—or I may ask a client! But I would also add another—how are you getting to a healthier state of mind in order to make your business wealthier?
In our Business Value Drivers (BVD) studies, we have found that 67% of entrepreneurs say are in business because they want to make more money and become financially independent. However, according to the Small Business Administration, less than 5% of small businesses have more than $1 million in annual revenue. The truth is that very few actually build any wealth or value from their businesses either.
If you’ve conducted a reality check lately, you may have admitted, at least to yourself, that your focus is not where it should be. Maybe you are experiencing a little burnout, or just need a vacation. Yet still, you have the drive and desire to build your business and build your wealth. Ultimately, it’s all in your mind, attitude, motivation and vision of the future. It’s realistic to admit, however, that we all get tired.
You don’t have to do everything alone! The value of having good reading materials, colleague support, encouragers and the right team of advisors will greatly enhance the value of your business and your ultimate wealth. Consider my client Eric Sbarge, creator and owner of the Peaceful Dragon.
Eric started the Peaceful Dragon with his wife Debra in 1997. Sbarge was a high school teacher when he first started, running his business on a part-time basis, until the revenue became enough to support the family. After ten years, he began to to work with an industry marketing expert, and in 2006 asked me to work with him in building a foundation toward wealth creation.
With a focus on the Peaceful Dragon mission “to enhance the lives of our students and members of our community by teaching traditional and authentic Chinese health and martial arts, and supporting the marriage of Eastern and Western approaches to health and well-being,” today, The Peaceful Dragon ranks in the top 1% in its industry and was featured in Martial Arts Professional Magazine April 2008.
“It’s all about where your head is,” agrees Sbarge. He went on to share with us Five Mindset Changes to Get Healthy and Wealthy:
- Have a millionaire mindset.
Many people want to be a millionaire and want their businesses to break the million-dollar revenue mark. This means you must build business equity. Your business equity value is not the same as your revenue. Unless you intentionally build your business to a fair market value of a million dollars, you won’t make it to that million mark or build any kind of wealth.
- Have a mentor from your specific industry.
As a business owner, your mentor should be a person who has successfully been through the start-up and exit phases of a business. This person will help guide you through what it takes to become a success and build wealth. Sbarge has been working with an industry mentor since 2004.
- Have a mentor outside your industry.
The best business owners learn from the best business owners—including insights and advice you can’t get from an MBA program. A mentor who is successful in business is equipped in ways an academic program cannot replicate, such as real life experience. Sbarge has two mentors outside his industry.
- Put a consistent marketing process in place.
Most businesses fail to create a marketing plan or strategy in order to weigh tactics against. Sbarge developed his own marketing process internally and set an annual budget and performance monitoring of all marketing tactics. He has followed a marketing plan consistently, adjusting as needed against industry trends, market changes and economic conditions.
- Build wealth by building value in your business.
Sbarge has carefully built additional value inside and outside the business. They own their commercial property needed for this type of brick and mortar business, as well as having built a solid company foundation through processes and vision.
March Madness is a good name for the upcoming NCAA round of tournaments. I love how my friend and client Eric Sbarge’s business name—Peaceful Dragon—is somewhat the antithesis of the craziness surrounding the players and the fans. Don’t let your business drive you crazy. Focus, breathe, have a vision and then—get your head in the game!