blowin welcome to the Evan Carmichael
show I believe in entrepreneurs and I
want to see you achieve success with
your company every week I deal with
thousands of entrepreneurs who are
frustrated or struggling who think they
have a great product or service but
you’re not getting the results that you
want and I’ve been there I was a guy who
is making 300 bucks a month could barely
survive on my company almost quit
multiple times and I finally cracked the
code I made it through and this radio
show is all about helping you guys do
the same I’m going to pull you with me
we’re going to achieve some success
together I’m excited about the program
today on the agenda did I start smaller
think big how to get in the state of
flow don’t compete on price and what to
do when you’re frustrated I get this
question a lot should I start small or
think big and this is this is such an
important learning to laugh you guys
today if you are starting the business
if you’re trying to think about should I
just start small should i do it stop
this opera or should I go for my big
vision I got a great question that came
in from Peter who’s on my youtube
channel who is thinking about starting
up a gym and he’s not sure if you should
just rent from other gyms and test this
concept or if it just go big and you
know go after the big picture open up
his own gym they got a huge loan and go
for it here’s the thing okay this is
what’s really important I want you to
think big but start small the reason why
it’s so important is because no matter
how great a business plan you have at
the start you’re going to make mistakes
you’re going to have incorrect
assumption if you look at any successful
company you look at the first product or
service that came up with that’s never
the one that they hit it big with they
always have to adapt to the market they
always have to make changes so if my
friend Peter here goes out takes out a
huge loan cashes in his retirement
savings goes all ends open up this huge
gym
it’s going to make huge mistakes and
it’s probably not going to work out it
could there’s a chance it might work out
but it’s such a tiny chance where it’s
much better to start small making
mistakes on a small scale find something
that works and then invest in making
that better I’m an investor in a salsa
dancing company here in Toronto and
we’ll help five six thousand students a
year learn how to dance salsa and the
company was started by a woman who had
no business experience she had never
done anything as an arch firm before
it’s always been corporate work she
worked at the marriott in HR and when
she started the company she started just
renting out of Jim’s the cost of 40
bucks an hour she was the only
instructor she had no overhead no cost
except for her studio at 40 bucks an
hour fast forward to today a few years
later she’s got her own studio at a
popular mall costing a hundred thousand
dollars a year to maintain plus salaries
of instructors bus admin costs bus
marketing costs all these additional
costs but she’s built it up because it
worked at a small scale she tweaked her
model and everything has changed and
when she first started what she teaches
has changed how she taught it has
changed the class structure has changed
who she brings on board has changed
she’s made a lot of mistakes and learn
from them along the way and it’s helped
her quickly build up a highly successful
enterprise that’s why I wanted to be a
part of it if she had gone out and said
you know what I’m going to I’m going to
take out a loan I’m going to go and take
the hundred thousand dollars and the
type of thousands a year for five years
minimum if you’re looking at a corporate
commercial real estate I’m going to go
and take out this loan I’m going to cash
in my retirement savings it wouldn’t
have worked out she would have made too
many mistakes all at once and she would
have failed and she’d be back at her
marry a job and potentially in debt for
the rest of her life
it’s important to think big I want you
to think bigger wanted have a big vision
for yourself that’s what keeps you going
every day but start small test see what
works and continue to apply those
changes to your business that you’ve
success I want to get to called I have
Megan on the line Megan where are you
from and how can I help hi Evan yes hi
how are you today Jared what’s going on
ever has a question it’s not really
about it you know I go a retail or
physical business but my question is in
terms of how much money you put into an
endeavor this particular of business or
personal endeavor I’m talking about is
more they are just the creative line
okay and you know like I failed at it
you know like I keep putting money into
it but I get very little return
monetarily from it so that my question
is how long she wants continue in this
particular you know babe until then
until they start making money meaning if
I put in ten thousand dollars i’m lucky
to see 1,500 back an actual earnings why
are you doing this what is the block
right why do you care about it well I
really like it I find it so say
something that makes me happy I always
wanted to do it it’s very self
actualized what is the vision well it’s
an art business you’re making art I’m
making it but at the same time I’m
making it i’m constantly put it on your
spending money is taking more art more
art classes like you know spend money to
go into art shows and you know what i
get for each of gazing is very very
little right you know versus what I’m
putting into it so I want to know what
company is should I give myself or
should anybody give themselves like one
year two years three years here’s the
thing okay it’s a struggle for every
entrepreneur who starting up nobody
looks back
oh that was so he starting a business
right and you’re you’re in the struggle
mode right now right right what gets you
through right is the love of what you’re
doing and you do it to do it you’re not
I mean it because you think you’re going
to try to make a lot of money of it that
can happen but you’re doing it to do it
if you look at any successful famous
entrepreneur and how they got started
hey they had failure after failure
failure and people told them go back and
get a job this isn’t for you it’s ever
going to work out one of my favorite
examples is kind of close to what you’re
doing is George Lucas you know George
Lucas yeah a producer yeah created Star
Wars Indiana Jones you went to film
school and people thought you’re crazy
why are you going to go to film school
you’re never going to get a job in the
film industry it’s not going to work out
and he spent six years of failure this
failure reserved mediocre work nobody
wanted to find what he was selling it
and he thought constantly about going
back and getting the job but he only
stuck with it because he loves what he
was doing early and eventually it turned
out to be a huge success with star wars
and indiana jones and all the other
films he’s created so the question
really is how much you love your art oh
and is this hard to do that you
can’t was going you’re doing this for
you know what do you think oh well I had
to give you a little more time level 6
to 12 months but funding nurses and so
pro is different anything if you really
love this thing if you love this so much
with all your heart then you would find
other ways even to make money just to do
this because you’ve got this around
running for mayor okay she seems
late and more shows etc what other
Kuiper to do another job no there’s no
tight answer here there’s no hay in six
months of doesn’t work you gotta quit I
it’s listening to your heart and
understanding why you’re doing this
basically and maybe what might help you
is to look at famous entrepreneur
someone you respect and looked up to and
look at their early struggles and see if
there’s a lesson you can learn from
their success all the reminded of Oprah
Winfrey to and when she started he said
that she would she had to do this she
had to keep doing this even if she
didn’t see it because she had to keep
going because she loved it and she would
find other ways to make money to keep
doing this because she loved it so much
I end up in washing for longer aren’t
that much is this just a hobby a side
thing and something to experiment or is
this part of who you are no I I really
you know I really love it and it’s
actually expecting no periphery which is
why I decided to do it because it has
been saving from rental from my other
job don’t you love it when I was working
yeah I do it that much if you have to
find a way to keep going if you love it
if this is part of who you are you’re
making a difference you have to find the
way people you do not means taking on a
part-time job and so intelligent keep
going okay i will i will thank you very
much evidence thank you good luck I
don’t acknowledge everybody has the same
problem I know it’s tough it’s really
tough start in the business especially
if you’re doing something different but
if you love it you owe it to yourself
your family your community to keep going
welcome back to daven Carmichael show I
believe in entrepreneurs and I want d
you have massive success with your
company and part of that is getting into
the state of flow I got a great question
from one of my youtube viewers Donald
who wrote in to say how do I get in the
state of flow that’s when you’re in the
zone that’s when you come for the great
ideas that’s when you are insanely
productive when you are coming in the
computer at nine in the morning and you
look up and it’s five at nine you don’t
even know what happened during the day
it’s so important
that when you are in flow to maintain it
how to get there it’s hard I can’t tell
you how to get there but I can tell you
how not to get there you’re not going to
get in the flow when you’re stressed out
when you’re overworked when you’re not
sleeping well not eating while I’m not
taking care of yourself when you’re just
putting out fires constantly with your
business you have to allow for freedom
and flexibility to be built in think
about when you get your best idea it’s
probably when you’re on vacation when
you’re in the shower when you’re
chilling out when you’re in the park
when you’re walking right that’s when
you get your best ideas it’s never
getting people down in the boardroom
table and saying be creative right now
does it work and so when flow comes you
have to run with it because it’s so
important for your business in my
company will push off any other
deadlines priorities when we’re in the
state of flow I’ve got a great new guy
on my team named Jason who’s working on
some projects he helped me with my
rebrand guys some mad skills and we have
laid out a list of priorities here’s
what we need to work on but what’s more
important than anything is slow because
if he’s feeling an idea the Jason go
running with that do that even if it’s
not on the list because what is going to
make is going to be magical it’s going
to be way better than forcing somebody
to work on a project they’re not
interested in sometimes you feel certain
projects sometimes you don’t if you have
to go with that flow it’s so important
because the work is going to come out
when you are in flow will be
mind-blowing for your business I want to
get to the call I have Sasha on the line
Sasha where are you from and how can I
help hello also simple Florida welcome
to the program what’s going on well my
question will be how did you investigate
what making people not come back to your
store how do you how do you get people
not to come back to your store yes you
don’t want people come into your store
no like I have a small business and I’m
trying to like any help I mean what is
what is your business my business is a
Jewish boy okay I was two years I had I
had this
for two years then nobody coming back
imagery store they coming once but they
don’t come back yes sir why is that do
you think I don’t know I just think
they’ve been also else I just are they
buying from you or they just walk into
they don’t come back they will do they
walk in they buy like who I don’t and
then they’ll say they’ll they’ll say
they coming back but they won’t come
back so I want a little bit quieter
store what’s different what’s different
there’s nothing different the same well
that’s why people are coming back right
you gotta have something different
there’s tons of jewelry stores out there
so what what can I have that’s different
what can you bring that your customers
are interested in that most dealers
don’t provide so think about so
somebody’s coming to buy jewelry right
there buying a diamond earring or ring
or whatever it is right yes you’re
helping them with the actual product but
what other frustrations do they have
that you can help them with well I
didn’t know I renault know says but even
so think about even education okay i
remember when i had to go buy a diamond
ring it’s confusing the first time you
go you have no idea what you’re doing
yes cuz they don’t know what yeah it’s a
lot no idea especially gosh we don’t
know what to buy you can help well I can
suggest them to many other products
that’s that’s basically what I can do
but it did not interested in the item
then I don’t know what the four-stage a
lot of people are looking for simple
solutions okay you know guys might come
in looking for a diamond ring for an
engagement ring and they’re quickly
overwhelmed with all the different
options color cut clarity all that stuff
right they have no idea what they’re
getting into so they want somebody to be
friendly and educate them and teach them
I’ve got to do and give them a critical
option simple Apfel
that’s four guys my what a possible
senior from females they just come on in
and they just choose me well think about
your own experience your female right
what’s your buying experience what do
you look for when you go to a store not
not when you bind Julie but anything
you’re buying clothes for buying shoes
well I look like opening who you respect
like who what’s a fashion company that
you respect their a retailer that you go
to and you love that company barrel is
good old fat dairy okay coat back so
what do they do that’s great that other
coach stores don’t do well they do sales
sales or what else well i like i like i
like the material I like these fabrics I
like to design and everything about the
experience about the salespeople only a
customer service hey cousin the servers
are really great well this is this is a
great model for you because you’re
taking a company a coach store and
there’s tons of code stores all cities
right there’s tons there’s just as many
coats or this jewelry stores kako
they’ve managed to stand out for you in
some way right they have unique products
they have great customer service they
make you want to go back to model that
experience and say I’m going to be the
coat factory of the jewelry world okay
so I have unique products and provide
great service I mean people want to come
back thank you what can you do what’s
like one thing you could do from the
coat factory that you can apply to your
business right now one thing I can do is
first I got a model more products like I
have to ask away Martha model my Pradas
so the people can come back in or you
know he buying for me the unique product
just like the coat factory has unique
products during other pics come up with
some unique products unique I’ll make
you stand out like a show good how about
the service what’s one thing from the
service you love their salespeople
they’re very customer centric what’s
ones you need to take from their
salespeople that you can apply to your
business now well I can apply a good
customer service I can talk to people
you know
I currently get to know the people a
little bit but not know all of them but
like you to know them so you know
however like a great conversation with
them so they I don’t want to come back
and you know is it more it’s great that
you know what the next time you go to
the coat factory really examine how
their sales people treat you think about
like what’s the first thing they say how
do they approach you there’s nobody
likes me and approached by salespeople
well everybody likes to be helped so how
do they approach you and what questions
do they are well when we come to me yeah
oh when they approach me they ask me how
can I help you do you find anything that
you’re interested in oh are you looking
for something like very specific so this
is all great so and keep modeling people
on the planet this is your assignment
for the next week is to go to the coat
factory model success applies here does
that make sense yeah well alright good
luck let me know how it goes i’m on
every two weeks hi thank you go back to
the Carmichael show I believe in
entrepreneurs and I’m about to put some
more money in your pocket don’t compete
on price as entrepreneurs we tend
undervalue the service that we’re
providing and we undercut our prices and
we think it’s the only way to get new
businesses to deep discount our prices
to get Justin to come in the door the
problem here is you’re not going to get
ideal customers right you don’t want
customers buying from you only because
of price they’re not going to tell their
friends are not going to be long term
loyal customers because as soon as you
start increasing your prices they’re
gone and there’s always going to be
somebody who’s hungrier who’s going to
undercut your price it’s just a race to
the bottom the challenge for
entrepreneurs is you have to think about
what more added value you can provide to
your customers make them pay not even
average price but a premium price you
should be master class you should be one
of the best in the world of what you do
and if you are you deserve to get paid
so I had a question come in from Colin
who has a rental property and he was
trying to figure out how do I make more
money than I rental property every time
I drop my price I get business and every
time I increase it it sits empty so
here’s the thing always competing on his
location and his price it’s not a
winning strategy you ought to think
about other ways to add value to the
customer experience think about other
frustrations they have that they’re
coming to you for that you could
potentially help solve for them why do
people pay thousand dollars a night to
stay out of Four Seasons room when they
can go to a fifty dollar night hotel
room you’re still getting a bed and a
place to sleep but you’re getting a lot
more added value by going to the fourth
season they they’re selling the
convenience they’re selling the fact
that you’re going to get a hassle free
trip for a business person who’s on a
big deal they’re about to close a
multi-million dollar deal where they
going to stay they want to know that
they’re going to be at the top of their
game they want a good night’s sleep and
they’re going to go and pay an extra
couple hundred bucks to stay at the four
seasons because they get that added
value so for Colin who has a rental
property again think about what people
are coming for one of the problems do
they have can you tell them about the
city that you’re in and you give them a
tour can you tell them about upcoming
events that are happening what else can
you do think about their challenges and
it doesn’t have to cost a lot of money
it just has to have high perceived value
high perceived value but it doesn’t have
to cost you a lot or anything a great
example is uh I work with some some
brand clients are trying to reach
entrepreneurs and what I do with them is
every quarter I sit down and I explained
here’s what’s happening in the
entrepreneur space from all of my
research I collect tons of data
questions are coming from you guys on
YouTube Twitter everywhere and I get a
sense of where the entrepreneur market
is going I collect this information
anyway for my stuff for my own purposes
it helps guide the content for this
program it helps guide my youtube videos
I’m already doing this but these big
brands that are my client they have no
way of act in this data like give it to
them for free I give this to them for
free to build the relationship and then
when they hire me for program they know
that I know what I’m talking about and I
can charge five times as much as the
next guy so I’m a ton of value but again
it’s not cost mating because i’ve
already doing it so think about the
frustration that your customers
currently have beyond what you’re
helping them solve and go the extra mile
to give them more value and start
increasing your prices and get paid for
your worth I have Sarah on the line
they’re aware your thumb and how can I
help hi I’m from New York City of them
actually calling about my little
brother’s business he’s starting in the
Northern Virginia DC area I was
listening to your show and I love what
you’re saying about thinking big but
starting small and my brother is under
starting a bakery that does like what
he’s my delivery and cookies with the
idea that it would reach out to you know
the party skiing or the canvases there’s
a lot of colleges in the DC area that
they think they could tap into but they
have absolutely zero capital and they’re
trying to figure out how to get their
products out there fast even if it means
investing a little bit up front but they
don’t they’re not in the position to
take out a loan or anything crazy they’d
like you to food trucks but that even
seems really expensive at first tho i
guess my question is how do they take
that first small step that’s a great
question and congrats and wanting to
start small and build it up does he
really have connections into that
university market um they I think of the
three of them were starting this I one
of them definitely works like with the
campus and universities and they do
already have a friend who has a bakery
and but she’s been doing with these
things from home and they’re looking to
collaborate with her and sort of expand
from there and really reach campus so
what what you really needs to do is
prove that this model can work
a bakery if you’re like the actual cost
my bakery aren’t that much to get a
physical location is expensive but the
material cost is really cheap right to
make bread and cookies you’re not going
out and spending a ton of money yeah do
this from home or they can work with
that Baker and use their place off hours
to test it the biggest thing to see is
do people want this late night delivery
service right nobody’s done this before
it could be a great idea could totally
tanked great so the biggest thing is not
on how to produce this thing is more in
the marketing side okay how do I see if
people want to spend on how do I expose
this to the University crowd so
listening to what you’re saying before
like they shouldn’t be going to
universities there are places and just
giving away free products or starting
fall or should they just be doing
anything they can to get the name out
there and the concept you can do
sampling and again when the costs are
not high like for them to make cookies
is not going to cost them a lot of money
is going to be mostly on right so you
have to invest a lot of hospital and
getting that out but it’s really tapping
into the university market and seeing
how you can get involved in campus life
so that people know about you want to
try you out ok I see much more the
marketing exercise and actually
producing the stuff because it doesn’t
need to go out and get a store to create
his first product right and if it works
and you start making some money then you
can invest that back into business and
get your own location if you want to
expand to multiple universities and take
this thing nationwide and take over the
world got it so should they target maybe
like one college specifically first and
see how that goes and then jump from
there should they be hitting as many
different possible marcus’s they can I
try to look for whatever the lowest
hanging fruit is to start whatever
colleges they went to or we know that
partner whatever you know college
they’re part of right now working that
then that’s your easiest connection in
okay get the ball rolling and and test
the concept right if people love this
idea of late night delivery of cookies
then then you roll with it probably
what’s going to happen is and this is
typical with with motors in the first
getting started there’s something to the
idea but it’s not perfect yet you have
to tweak it so the delivery model might
be great but they may need to change
their hours or people may not like
cookies about maybe they want donut
maybe they won’t take or something else
so yeah play with the model until you
get a working really well and the
tighter you are to your customer so the
closer they are to those universities
and can get some real feedback because
the first experience probably won’t be
perfect with the customer real having
somebody to to kind of sit there with
you and be patient and say hey I’d
really love it if you could do XYZ and
dr. you the business that really help
them take off got it that’s great I love
that what’s your role in all of this Joe
is my little brother and I she was
listening to the show and he’s been
racking his brain and really stretched
out because he just proposed to his
girlfriend who he’s been really busy but
this is something that he really thinks
to take off and he still got a side job
and so as I keep hearing all these
things I was listening to the show as I
clean it’s like you’re really good
opportunity to get some get searched for
him just a lot of big sister I what I do
we should it’s great it’s great for him
to start part time it’s gripping in the
test is out see if it works eep and
really just listen to the customers
listen to what they walk because they
will tell him what needs to be changed
for this business to actually work great
and if you want to call in let me know
I’m on every two weeks I’d love to hear
from through the progress that sounds
great I’ll definitely tell them about it
alright thanks Sarah thank you so much
no problem so for everybody listening
this is a great model to follow start
small and test your concept if he goes
out and he buys a bakery and invest all
of his money into this and takes on a
loan is probably going to fail who knows
if people even want late night delivery
right instead of testing your
assumptions on a big scale tested on the
sauce count people works get some
feedback foot that he brought back into
your business and you’re on the path or
successful enterprise welcome back to
the Evan Carmichael show I believe in
entrepreneurs and I want to see you have
massive success with your company and
part of that is going to come by
breaking through the frustration I’m
frustrated with my business constantly I
wanted to be going faster I want to hit
our goals more quickly I want things to
happen now I want things that happen
yesterday and that’s part of life as an
entrepreneur and it’s okay to be there
it’s one of the things that we don’t
talk about you know you read magazines
and books and listen to radio programs
and everybody’s saying do these three
things you’ll be successful right you
have to bust through tons of frustration
and just stick with it you’ll to get you
through so if you’re frustrated right
now with your business you’re not alone
here’s a few things you can do to help
you bust through the first thing that
really helped me was model success I
researched entrepreneurs who had made it
to its done what I want to do but really
hit it hard and looked at how they got
started and found the day off struggled
to all of these guys they struggled
nobody had it easy from the start they
struggled and struggled and were
frustrated and they push through and
researching those stories of your
favorite famous entrepreneur or somebody
in you that you look up to will not only
give you strategies and what to do you
know they did this so I can do it too
but they’ll give you the motivation to
keep going and busts through the
frustration
the second thing is remember why you’re
doing this why did you start this
business what are you trying to
accomplish one thing that really helped
me early on was I would go and I would
do presentations entrepreneurs I would
go and I would meet entrepreneurs and
give a great presentation and feel
inspired and change their lives and then
I wake up the next day like I had to
start all over again like my motivation
has disappeared where did it go some
days you just wake up and you don’t want
to do anything as to what i would do is
read the testimonials of people would
left for me i would look at the emails
people right into me and it would keep
me motivated to keep going because i saw
the impact and i have I kept wanting to
do it and the third thing you can do is
use frustration at school when you get
so frustrated with your company two
things are going to happen either one
you’re going to quit you’re going to
give up shut down go off and get a job
or you’re going to use that as fuel to
keep going to remember that when you’re
frustrated you’re not alone and this is
something that that really hurt me early
on because I felt like I was the only
one going through all these problems
like it was super easy for everybody
else and I was the idiot who couldn’t
get it you know why was a reading
stories about these guys who came from
nothing I made it big and here I was
struggling to get clients you know I had
a great product I had a great team why
was this so hard and I almost quit
multiple times I remember one time I was
on the call with with my business
partner this is the worst period of my
life and my business career it was a
family event and we had been through so
much pain and struggle trying to get our
company launched and I took a call from
my partner and I went upstairs and at
the end of it was I told him I quit i
got i had had it i had enough this was
too much I feel like I need to be doing
something where I can get some results
the same way I was taking so long and
maybe we’re just not meant to do this
that’s it I’m done I quit no more i’m
doing something else and then I hung up
the phone and I just cried I bawled my
eyes out you know tears streaming down
my face through my nose everything I was
just a total mess and my mom came up she
heard me crying and she put her hand on
my shoulder and I couldn’t even say
anything to her I was just so frustrated
and so upset and so disappointed in
myself and so ashamed and embarrassed
you know I had so much confidence going
into this thing and to be at this point
that you’re mean say that I quit was so
so embarrassing now I couldn’t say
anything I just SAT there and cried and
I ended up going to sleep that night and
just feeling terrible for myself and I
woke up the next day I went back to work
because that’s what I needed to do I had
a business to build and I almost quit
that was the first time that I actually
you know threatened to quit and I meant
it at the time I wanted to quit I wanted
to go do something else I was so
frustrated with this business mega not
going well but I kept going to the
frustration the next day I woke up and
remembered those three things one
Pauline success I looked at
entrepreneurs like George Lucas and
Oprah Winfrey and saw all the struggles
that they had when they got started and
I didn’t want to regret for the rest of
my life that I quit too soon I looked at
their success and I research what made
them so successful walk gotten to that
point and applied it to my business but
more importantly was just knowing that I
wasn’t alone in this like other people
are struggling to everybody struggles
with their business from your local dry
cleaner local pizza shop all the way up
to Donald Trump and Bill Gates these
guys are all struggling at times in the
business the frustration can be used as
a tool to get you through the model
success work the second one again was
remember why do
and I looked at my customers and I
looked at the great feedback that we got
I wasn’t giving a lot of customers I
wasn’t making a lot of money but I had
some customers and they liked it and it
was helping them and reading their
stories and reading their emails made me
want to keep going you know like I feel
like it let these guys down and we had a
noble purpose for this business if I
needed to keep it going and in the last
part is using it as fuel I didn’t want
to quit you know I was facing huge
resistance but I didn’t want to quit I
didn’t want that mark on me I didn’t
want to regret this for the rest of my
life and so I kept going and it was hard
it was brutally hard and you’re going to
go through something similar if you
haven’t already multiple times but know
that you’re not alone everybody goes
through these phases completely natural
and you can break through thank you guys
so much for joining me for another great
show I want to thank especially my
producers for NASA and Doc Ock is back
love you guys so much and I’m on every
two weeks I’m back love to hear you guys
at the sink hit me up on Twitter I’m
asked Evan Carmichael thank you so much
and I’ll see you in two weeks
show I believe in entrepreneurs and I
want to see you achieve success with
your company every week I deal with
thousands of entrepreneurs who are
frustrated or struggling who think they
have a great product or service but
you’re not getting the results that you
want and I’ve been there I was a guy who
is making 300 bucks a month could barely
survive on my company almost quit
multiple times and I finally cracked the
code I made it through and this radio
show is all about helping you guys do
the same I’m going to pull you with me
we’re going to achieve some success
together I’m excited about the program
today on the agenda did I start smaller
think big how to get in the state of
flow don’t compete on price and what to
do when you’re frustrated I get this
question a lot should I start small or
think big and this is this is such an
important learning to laugh you guys
today if you are starting the business
if you’re trying to think about should I
just start small should i do it stop
this opera or should I go for my big
vision I got a great question that came
in from Peter who’s on my youtube
channel who is thinking about starting
up a gym and he’s not sure if you should
just rent from other gyms and test this
concept or if it just go big and you
know go after the big picture open up
his own gym they got a huge loan and go
for it here’s the thing okay this is
what’s really important I want you to
think big but start small the reason why
it’s so important is because no matter
how great a business plan you have at
the start you’re going to make mistakes
you’re going to have incorrect
assumption if you look at any successful
company you look at the first product or
service that came up with that’s never
the one that they hit it big with they
always have to adapt to the market they
always have to make changes so if my
friend Peter here goes out takes out a
huge loan cashes in his retirement
savings goes all ends open up this huge
gym
it’s going to make huge mistakes and
it’s probably not going to work out it
could there’s a chance it might work out
but it’s such a tiny chance where it’s
much better to start small making
mistakes on a small scale find something
that works and then invest in making
that better I’m an investor in a salsa
dancing company here in Toronto and
we’ll help five six thousand students a
year learn how to dance salsa and the
company was started by a woman who had
no business experience she had never
done anything as an arch firm before
it’s always been corporate work she
worked at the marriott in HR and when
she started the company she started just
renting out of Jim’s the cost of 40
bucks an hour she was the only
instructor she had no overhead no cost
except for her studio at 40 bucks an
hour fast forward to today a few years
later she’s got her own studio at a
popular mall costing a hundred thousand
dollars a year to maintain plus salaries
of instructors bus admin costs bus
marketing costs all these additional
costs but she’s built it up because it
worked at a small scale she tweaked her
model and everything has changed and
when she first started what she teaches
has changed how she taught it has
changed the class structure has changed
who she brings on board has changed
she’s made a lot of mistakes and learn
from them along the way and it’s helped
her quickly build up a highly successful
enterprise that’s why I wanted to be a
part of it if she had gone out and said
you know what I’m going to I’m going to
take out a loan I’m going to go and take
the hundred thousand dollars and the
type of thousands a year for five years
minimum if you’re looking at a corporate
commercial real estate I’m going to go
and take out this loan I’m going to cash
in my retirement savings it wouldn’t
have worked out she would have made too
many mistakes all at once and she would
have failed and she’d be back at her
marry a job and potentially in debt for
the rest of her life
it’s important to think big I want you
to think bigger wanted have a big vision
for yourself that’s what keeps you going
every day but start small test see what
works and continue to apply those
changes to your business that you’ve
success I want to get to called I have
Megan on the line Megan where are you
from and how can I help hi Evan yes hi
how are you today Jared what’s going on
ever has a question it’s not really
about it you know I go a retail or
physical business but my question is in
terms of how much money you put into an
endeavor this particular of business or
personal endeavor I’m talking about is
more they are just the creative line
okay and you know like I failed at it
you know like I keep putting money into
it but I get very little return
monetarily from it so that my question
is how long she wants continue in this
particular you know babe until then
until they start making money meaning if
I put in ten thousand dollars i’m lucky
to see 1,500 back an actual earnings why
are you doing this what is the block
right why do you care about it well I
really like it I find it so say
something that makes me happy I always
wanted to do it it’s very self
actualized what is the vision well it’s
an art business you’re making art I’m
making it but at the same time I’m
making it i’m constantly put it on your
spending money is taking more art more
art classes like you know spend money to
go into art shows and you know what i
get for each of gazing is very very
little right you know versus what I’m
putting into it so I want to know what
company is should I give myself or
should anybody give themselves like one
year two years three years here’s the
thing okay it’s a struggle for every
entrepreneur who starting up nobody
looks back
oh that was so he starting a business
right and you’re you’re in the struggle
mode right now right right what gets you
through right is the love of what you’re
doing and you do it to do it you’re not
I mean it because you think you’re going
to try to make a lot of money of it that
can happen but you’re doing it to do it
if you look at any successful famous
entrepreneur and how they got started
hey they had failure after failure
failure and people told them go back and
get a job this isn’t for you it’s ever
going to work out one of my favorite
examples is kind of close to what you’re
doing is George Lucas you know George
Lucas yeah a producer yeah created Star
Wars Indiana Jones you went to film
school and people thought you’re crazy
why are you going to go to film school
you’re never going to get a job in the
film industry it’s not going to work out
and he spent six years of failure this
failure reserved mediocre work nobody
wanted to find what he was selling it
and he thought constantly about going
back and getting the job but he only
stuck with it because he loves what he
was doing early and eventually it turned
out to be a huge success with star wars
and indiana jones and all the other
films he’s created so the question
really is how much you love your art oh
and is this hard to do that you
can’t was going you’re doing this for
you know what do you think oh well I had
to give you a little more time level 6
to 12 months but funding nurses and so
pro is different anything if you really
love this thing if you love this so much
with all your heart then you would find
other ways even to make money just to do
this because you’ve got this around
running for mayor okay she seems
late and more shows etc what other
Kuiper to do another job no there’s no
tight answer here there’s no hay in six
months of doesn’t work you gotta quit I
it’s listening to your heart and
understanding why you’re doing this
basically and maybe what might help you
is to look at famous entrepreneur
someone you respect and looked up to and
look at their early struggles and see if
there’s a lesson you can learn from
their success all the reminded of Oprah
Winfrey to and when she started he said
that she would she had to do this she
had to keep doing this even if she
didn’t see it because she had to keep
going because she loved it and she would
find other ways to make money to keep
doing this because she loved it so much
I end up in washing for longer aren’t
that much is this just a hobby a side
thing and something to experiment or is
this part of who you are no I I really
you know I really love it and it’s
actually expecting no periphery which is
why I decided to do it because it has
been saving from rental from my other
job don’t you love it when I was working
yeah I do it that much if you have to
find a way to keep going if you love it
if this is part of who you are you’re
making a difference you have to find the
way people you do not means taking on a
part-time job and so intelligent keep
going okay i will i will thank you very
much evidence thank you good luck I
don’t acknowledge everybody has the same
problem I know it’s tough it’s really
tough start in the business especially
if you’re doing something different but
if you love it you owe it to yourself
your family your community to keep going
welcome back to daven Carmichael show I
believe in entrepreneurs and I want d
you have massive success with your
company and part of that is getting into
the state of flow I got a great question
from one of my youtube viewers Donald
who wrote in to say how do I get in the
state of flow that’s when you’re in the
zone that’s when you come for the great
ideas that’s when you are insanely
productive when you are coming in the
computer at nine in the morning and you
look up and it’s five at nine you don’t
even know what happened during the day
it’s so important
that when you are in flow to maintain it
how to get there it’s hard I can’t tell
you how to get there but I can tell you
how not to get there you’re not going to
get in the flow when you’re stressed out
when you’re overworked when you’re not
sleeping well not eating while I’m not
taking care of yourself when you’re just
putting out fires constantly with your
business you have to allow for freedom
and flexibility to be built in think
about when you get your best idea it’s
probably when you’re on vacation when
you’re in the shower when you’re
chilling out when you’re in the park
when you’re walking right that’s when
you get your best ideas it’s never
getting people down in the boardroom
table and saying be creative right now
does it work and so when flow comes you
have to run with it because it’s so
important for your business in my
company will push off any other
deadlines priorities when we’re in the
state of flow I’ve got a great new guy
on my team named Jason who’s working on
some projects he helped me with my
rebrand guys some mad skills and we have
laid out a list of priorities here’s
what we need to work on but what’s more
important than anything is slow because
if he’s feeling an idea the Jason go
running with that do that even if it’s
not on the list because what is going to
make is going to be magical it’s going
to be way better than forcing somebody
to work on a project they’re not
interested in sometimes you feel certain
projects sometimes you don’t if you have
to go with that flow it’s so important
because the work is going to come out
when you are in flow will be
mind-blowing for your business I want to
get to the call I have Sasha on the line
Sasha where are you from and how can I
help hello also simple Florida welcome
to the program what’s going on well my
question will be how did you investigate
what making people not come back to your
store how do you how do you get people
not to come back to your store yes you
don’t want people come into your store
no like I have a small business and I’m
trying to like any help I mean what is
what is your business my business is a
Jewish boy okay I was two years I had I
had this
for two years then nobody coming back
imagery store they coming once but they
don’t come back yes sir why is that do
you think I don’t know I just think
they’ve been also else I just are they
buying from you or they just walk into
they don’t come back they will do they
walk in they buy like who I don’t and
then they’ll say they’ll they’ll say
they coming back but they won’t come
back so I want a little bit quieter
store what’s different what’s different
there’s nothing different the same well
that’s why people are coming back right
you gotta have something different
there’s tons of jewelry stores out there
so what what can I have that’s different
what can you bring that your customers
are interested in that most dealers
don’t provide so think about so
somebody’s coming to buy jewelry right
there buying a diamond earring or ring
or whatever it is right yes you’re
helping them with the actual product but
what other frustrations do they have
that you can help them with well I
didn’t know I renault know says but even
so think about even education okay i
remember when i had to go buy a diamond
ring it’s confusing the first time you
go you have no idea what you’re doing
yes cuz they don’t know what yeah it’s a
lot no idea especially gosh we don’t
know what to buy you can help well I can
suggest them to many other products
that’s that’s basically what I can do
but it did not interested in the item
then I don’t know what the four-stage a
lot of people are looking for simple
solutions okay you know guys might come
in looking for a diamond ring for an
engagement ring and they’re quickly
overwhelmed with all the different
options color cut clarity all that stuff
right they have no idea what they’re
getting into so they want somebody to be
friendly and educate them and teach them
I’ve got to do and give them a critical
option simple Apfel
that’s four guys my what a possible
senior from females they just come on in
and they just choose me well think about
your own experience your female right
what’s your buying experience what do
you look for when you go to a store not
not when you bind Julie but anything
you’re buying clothes for buying shoes
well I look like opening who you respect
like who what’s a fashion company that
you respect their a retailer that you go
to and you love that company barrel is
good old fat dairy okay coat back so
what do they do that’s great that other
coach stores don’t do well they do sales
sales or what else well i like i like i
like the material I like these fabrics I
like to design and everything about the
experience about the salespeople only a
customer service hey cousin the servers
are really great well this is this is a
great model for you because you’re
taking a company a coach store and
there’s tons of code stores all cities
right there’s tons there’s just as many
coats or this jewelry stores kako
they’ve managed to stand out for you in
some way right they have unique products
they have great customer service they
make you want to go back to model that
experience and say I’m going to be the
coat factory of the jewelry world okay
so I have unique products and provide
great service I mean people want to come
back thank you what can you do what’s
like one thing you could do from the
coat factory that you can apply to your
business right now one thing I can do is
first I got a model more products like I
have to ask away Martha model my Pradas
so the people can come back in or you
know he buying for me the unique product
just like the coat factory has unique
products during other pics come up with
some unique products unique I’ll make
you stand out like a show good how about
the service what’s one thing from the
service you love their salespeople
they’re very customer centric what’s
ones you need to take from their
salespeople that you can apply to your
business now well I can apply a good
customer service I can talk to people
you know
I currently get to know the people a
little bit but not know all of them but
like you to know them so you know
however like a great conversation with
them so they I don’t want to come back
and you know is it more it’s great that
you know what the next time you go to
the coat factory really examine how
their sales people treat you think about
like what’s the first thing they say how
do they approach you there’s nobody
likes me and approached by salespeople
well everybody likes to be helped so how
do they approach you and what questions
do they are well when we come to me yeah
oh when they approach me they ask me how
can I help you do you find anything that
you’re interested in oh are you looking
for something like very specific so this
is all great so and keep modeling people
on the planet this is your assignment
for the next week is to go to the coat
factory model success applies here does
that make sense yeah well alright good
luck let me know how it goes i’m on
every two weeks hi thank you go back to
the Carmichael show I believe in
entrepreneurs and I’m about to put some
more money in your pocket don’t compete
on price as entrepreneurs we tend
undervalue the service that we’re
providing and we undercut our prices and
we think it’s the only way to get new
businesses to deep discount our prices
to get Justin to come in the door the
problem here is you’re not going to get
ideal customers right you don’t want
customers buying from you only because
of price they’re not going to tell their
friends are not going to be long term
loyal customers because as soon as you
start increasing your prices they’re
gone and there’s always going to be
somebody who’s hungrier who’s going to
undercut your price it’s just a race to
the bottom the challenge for
entrepreneurs is you have to think about
what more added value you can provide to
your customers make them pay not even
average price but a premium price you
should be master class you should be one
of the best in the world of what you do
and if you are you deserve to get paid
so I had a question come in from Colin
who has a rental property and he was
trying to figure out how do I make more
money than I rental property every time
I drop my price I get business and every
time I increase it it sits empty so
here’s the thing always competing on his
location and his price it’s not a
winning strategy you ought to think
about other ways to add value to the
customer experience think about other
frustrations they have that they’re
coming to you for that you could
potentially help solve for them why do
people pay thousand dollars a night to
stay out of Four Seasons room when they
can go to a fifty dollar night hotel
room you’re still getting a bed and a
place to sleep but you’re getting a lot
more added value by going to the fourth
season they they’re selling the
convenience they’re selling the fact
that you’re going to get a hassle free
trip for a business person who’s on a
big deal they’re about to close a
multi-million dollar deal where they
going to stay they want to know that
they’re going to be at the top of their
game they want a good night’s sleep and
they’re going to go and pay an extra
couple hundred bucks to stay at the four
seasons because they get that added
value so for Colin who has a rental
property again think about what people
are coming for one of the problems do
they have can you tell them about the
city that you’re in and you give them a
tour can you tell them about upcoming
events that are happening what else can
you do think about their challenges and
it doesn’t have to cost a lot of money
it just has to have high perceived value
high perceived value but it doesn’t have
to cost you a lot or anything a great
example is uh I work with some some
brand clients are trying to reach
entrepreneurs and what I do with them is
every quarter I sit down and I explained
here’s what’s happening in the
entrepreneur space from all of my
research I collect tons of data
questions are coming from you guys on
YouTube Twitter everywhere and I get a
sense of where the entrepreneur market
is going I collect this information
anyway for my stuff for my own purposes
it helps guide the content for this
program it helps guide my youtube videos
I’m already doing this but these big
brands that are my client they have no
way of act in this data like give it to
them for free I give this to them for
free to build the relationship and then
when they hire me for program they know
that I know what I’m talking about and I
can charge five times as much as the
next guy so I’m a ton of value but again
it’s not cost mating because i’ve
already doing it so think about the
frustration that your customers
currently have beyond what you’re
helping them solve and go the extra mile
to give them more value and start
increasing your prices and get paid for
your worth I have Sarah on the line
they’re aware your thumb and how can I
help hi I’m from New York City of them
actually calling about my little
brother’s business he’s starting in the
Northern Virginia DC area I was
listening to your show and I love what
you’re saying about thinking big but
starting small and my brother is under
starting a bakery that does like what
he’s my delivery and cookies with the
idea that it would reach out to you know
the party skiing or the canvases there’s
a lot of colleges in the DC area that
they think they could tap into but they
have absolutely zero capital and they’re
trying to figure out how to get their
products out there fast even if it means
investing a little bit up front but they
don’t they’re not in the position to
take out a loan or anything crazy they’d
like you to food trucks but that even
seems really expensive at first tho i
guess my question is how do they take
that first small step that’s a great
question and congrats and wanting to
start small and build it up does he
really have connections into that
university market um they I think of the
three of them were starting this I one
of them definitely works like with the
campus and universities and they do
already have a friend who has a bakery
and but she’s been doing with these
things from home and they’re looking to
collaborate with her and sort of expand
from there and really reach campus so
what what you really needs to do is
prove that this model can work
a bakery if you’re like the actual cost
my bakery aren’t that much to get a
physical location is expensive but the
material cost is really cheap right to
make bread and cookies you’re not going
out and spending a ton of money yeah do
this from home or they can work with
that Baker and use their place off hours
to test it the biggest thing to see is
do people want this late night delivery
service right nobody’s done this before
it could be a great idea could totally
tanked great so the biggest thing is not
on how to produce this thing is more in
the marketing side okay how do I see if
people want to spend on how do I expose
this to the University crowd so
listening to what you’re saying before
like they shouldn’t be going to
universities there are places and just
giving away free products or starting
fall or should they just be doing
anything they can to get the name out
there and the concept you can do
sampling and again when the costs are
not high like for them to make cookies
is not going to cost them a lot of money
is going to be mostly on right so you
have to invest a lot of hospital and
getting that out but it’s really tapping
into the university market and seeing
how you can get involved in campus life
so that people know about you want to
try you out ok I see much more the
marketing exercise and actually
producing the stuff because it doesn’t
need to go out and get a store to create
his first product right and if it works
and you start making some money then you
can invest that back into business and
get your own location if you want to
expand to multiple universities and take
this thing nationwide and take over the
world got it so should they target maybe
like one college specifically first and
see how that goes and then jump from
there should they be hitting as many
different possible marcus’s they can I
try to look for whatever the lowest
hanging fruit is to start whatever
colleges they went to or we know that
partner whatever you know college
they’re part of right now working that
then that’s your easiest connection in
okay get the ball rolling and and test
the concept right if people love this
idea of late night delivery of cookies
then then you roll with it probably
what’s going to happen is and this is
typical with with motors in the first
getting started there’s something to the
idea but it’s not perfect yet you have
to tweak it so the delivery model might
be great but they may need to change
their hours or people may not like
cookies about maybe they want donut
maybe they won’t take or something else
so yeah play with the model until you
get a working really well and the
tighter you are to your customer so the
closer they are to those universities
and can get some real feedback because
the first experience probably won’t be
perfect with the customer real having
somebody to to kind of sit there with
you and be patient and say hey I’d
really love it if you could do XYZ and
dr. you the business that really help
them take off got it that’s great I love
that what’s your role in all of this Joe
is my little brother and I she was
listening to the show and he’s been
racking his brain and really stretched
out because he just proposed to his
girlfriend who he’s been really busy but
this is something that he really thinks
to take off and he still got a side job
and so as I keep hearing all these
things I was listening to the show as I
clean it’s like you’re really good
opportunity to get some get searched for
him just a lot of big sister I what I do
we should it’s great it’s great for him
to start part time it’s gripping in the
test is out see if it works eep and
really just listen to the customers
listen to what they walk because they
will tell him what needs to be changed
for this business to actually work great
and if you want to call in let me know
I’m on every two weeks I’d love to hear
from through the progress that sounds
great I’ll definitely tell them about it
alright thanks Sarah thank you so much
no problem so for everybody listening
this is a great model to follow start
small and test your concept if he goes
out and he buys a bakery and invest all
of his money into this and takes on a
loan is probably going to fail who knows
if people even want late night delivery
right instead of testing your
assumptions on a big scale tested on the
sauce count people works get some
feedback foot that he brought back into
your business and you’re on the path or
successful enterprise welcome back to
the Evan Carmichael show I believe in
entrepreneurs and I want to see you have
massive success with your company and
part of that is going to come by
breaking through the frustration I’m
frustrated with my business constantly I
wanted to be going faster I want to hit
our goals more quickly I want things to
happen now I want things that happen
yesterday and that’s part of life as an
entrepreneur and it’s okay to be there
it’s one of the things that we don’t
talk about you know you read magazines
and books and listen to radio programs
and everybody’s saying do these three
things you’ll be successful right you
have to bust through tons of frustration
and just stick with it you’ll to get you
through so if you’re frustrated right
now with your business you’re not alone
here’s a few things you can do to help
you bust through the first thing that
really helped me was model success I
researched entrepreneurs who had made it
to its done what I want to do but really
hit it hard and looked at how they got
started and found the day off struggled
to all of these guys they struggled
nobody had it easy from the start they
struggled and struggled and were
frustrated and they push through and
researching those stories of your
favorite famous entrepreneur or somebody
in you that you look up to will not only
give you strategies and what to do you
know they did this so I can do it too
but they’ll give you the motivation to
keep going and busts through the
frustration
the second thing is remember why you’re
doing this why did you start this
business what are you trying to
accomplish one thing that really helped
me early on was I would go and I would
do presentations entrepreneurs I would
go and I would meet entrepreneurs and
give a great presentation and feel
inspired and change their lives and then
I wake up the next day like I had to
start all over again like my motivation
has disappeared where did it go some
days you just wake up and you don’t want
to do anything as to what i would do is
read the testimonials of people would
left for me i would look at the emails
people right into me and it would keep
me motivated to keep going because i saw
the impact and i have I kept wanting to
do it and the third thing you can do is
use frustration at school when you get
so frustrated with your company two
things are going to happen either one
you’re going to quit you’re going to
give up shut down go off and get a job
or you’re going to use that as fuel to
keep going to remember that when you’re
frustrated you’re not alone and this is
something that that really hurt me early
on because I felt like I was the only
one going through all these problems
like it was super easy for everybody
else and I was the idiot who couldn’t
get it you know why was a reading
stories about these guys who came from
nothing I made it big and here I was
struggling to get clients you know I had
a great product I had a great team why
was this so hard and I almost quit
multiple times I remember one time I was
on the call with with my business
partner this is the worst period of my
life and my business career it was a
family event and we had been through so
much pain and struggle trying to get our
company launched and I took a call from
my partner and I went upstairs and at
the end of it was I told him I quit i
got i had had it i had enough this was
too much I feel like I need to be doing
something where I can get some results
the same way I was taking so long and
maybe we’re just not meant to do this
that’s it I’m done I quit no more i’m
doing something else and then I hung up
the phone and I just cried I bawled my
eyes out you know tears streaming down
my face through my nose everything I was
just a total mess and my mom came up she
heard me crying and she put her hand on
my shoulder and I couldn’t even say
anything to her I was just so frustrated
and so upset and so disappointed in
myself and so ashamed and embarrassed
you know I had so much confidence going
into this thing and to be at this point
that you’re mean say that I quit was so
so embarrassing now I couldn’t say
anything I just SAT there and cried and
I ended up going to sleep that night and
just feeling terrible for myself and I
woke up the next day I went back to work
because that’s what I needed to do I had
a business to build and I almost quit
that was the first time that I actually
you know threatened to quit and I meant
it at the time I wanted to quit I wanted
to go do something else I was so
frustrated with this business mega not
going well but I kept going to the
frustration the next day I woke up and
remembered those three things one
Pauline success I looked at
entrepreneurs like George Lucas and
Oprah Winfrey and saw all the struggles
that they had when they got started and
I didn’t want to regret for the rest of
my life that I quit too soon I looked at
their success and I research what made
them so successful walk gotten to that
point and applied it to my business but
more importantly was just knowing that I
wasn’t alone in this like other people
are struggling to everybody struggles
with their business from your local dry
cleaner local pizza shop all the way up
to Donald Trump and Bill Gates these
guys are all struggling at times in the
business the frustration can be used as
a tool to get you through the model
success work the second one again was
remember why do
and I looked at my customers and I
looked at the great feedback that we got
I wasn’t giving a lot of customers I
wasn’t making a lot of money but I had
some customers and they liked it and it
was helping them and reading their
stories and reading their emails made me
want to keep going you know like I feel
like it let these guys down and we had a
noble purpose for this business if I
needed to keep it going and in the last
part is using it as fuel I didn’t want
to quit you know I was facing huge
resistance but I didn’t want to quit I
didn’t want that mark on me I didn’t
want to regret this for the rest of my
life and so I kept going and it was hard
it was brutally hard and you’re going to
go through something similar if you
haven’t already multiple times but know
that you’re not alone everybody goes
through these phases completely natural
and you can break through thank you guys
so much for joining me for another great
show I want to thank especially my
producers for NASA and Doc Ock is back
love you guys so much and I’m on every
two weeks I’m back love to hear you guys
at the sink hit me up on Twitter I’m
asked Evan Carmichael thank you so much
and I’ll see you in two weeks
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