How Much “Skin” Do You Have In The Game?
Rosemary and I just returned from the beautiful Dominican Republic, where we were taking in some sun and relaxing, followed by our company’s Private Wealth Conference.
With Natalie Stahl at the Paradisius Resort
At the Conference, we met up with our good friend and fellow entrepreneur, Natalie Stahl. Natalie is CEO of Platinum 7 Profits and a very seasoned business owner.
We sat down over a few drinks in the lobby and were discussing some joint projects we are working on, when the subject of SUCCESS came up. More specifically….
What does it take to “make it” when starting a new business?
Natalie made a point that makes a lot of sense. She told me that, in her experience, any new business owner doesn’t have a chance unless they have “skin in the game.”
If this saying is not familiar to you, it means that you’ve got to have a lot at stake when starting a business, namely money.
Not money you could make, but money you’ve put in to your business as start up capital.
Why?
Anyone who has their own business understands that the obstacles are plenty and the urge to give up can be fierce. This is especially true at the beginning, when one usually makes mistake after mistake before they “get it.”
And if you don’t have a lot at stake, a lot of SKIN in the game ($$$), then giving up is WAY TOO EASY.
I’ve been a student of human nature for quite some time, and I am coming to the belief the GIVING UP may just be part of human nature. Maybe that’s too strong, but my point is this. Most people (97%) of new home business owners will quit before they come to profit.
Why? Because most home businesses, especially MLM require relatively little capital to get started, less than $1-2000. This amount of money is not enough to keep people from throwing in the towel when times get tough, when results don’t come fast enough, and when quitting seems easier than the work needed to make your business profitable.
Rosemary and I are good examples.
Our first business was in MLM. It was a decent company with good products. But we were very green, and knew nothing about starting a business. Our start up capital was about $1500, pennies when you consider that it can take hundreds of thousands of dollars to start a brick and mortar business or franchise.
The obstacles came fast and often when we started. We gave it a good try, but within a year it was easier to justify quitting than spending the time and energy needed to see a profit. WE QUIT.
A while later we were ready to try again, but this time we got involved not in MLM, but in a Direct Sales company. We were drawn in by the products, the marketing system, and the lucrative compensation plan. But to be at the top of the plan, to make the most profit per sale, we needed to put down $20,000.
This was a lot of money to us back then. We hesitated, kicked the idea around, and came up with all the pros and cons. But the bottom line was this….
We knew that, with that much money at stake, we would never give up. It was just too much money to give up.
We had “skin in the game”.
It was admittedly a leap of faith, a big risk to take.
But no business was ever started without risk.
To your success!
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