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You Risk Everything You Have To Create A New Business!

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Thomas PlummerThomas Plummer

You raise money, build your vision, take the risk of being in business, and yet, nowhere has anyone guaranteed you will make this dream a financial success this time. Yet, when the business struggles, we often get angry at the universe because there is always a sense of entitlement within us; since we took the risk, we should be entitled to succeed. Not so.

This sense of entitlement often masks the real issue. The real issue is the business never had a chance to be successful in the first place! Often, our vision of this business just doesn't match what the consumer wants to buy. While this seems so irritatingly obvious, this is why so many fitness businesses, along with thousands of other small businesses in this country, continue to fail year-after-year. You simply built something that no one wants to buy.

The majority of these failures are actually very much alike, although each one may be from a different industry. These failures often represent someone trying to copy a successful business too late in that business' lifecycle timeline for success. Put another way, being the 50th person to copy Curves back in the '90s probably didn't turn out too well, as will copying the $10 model 20+ years after its inception will turn out to be too late.

Every business concept has a lifecycle. There is a long slow growth period, there is a rapid growth phase as the new business concept takes off and there is a long, and sometimes, but not always, slow, decline period. This is called, the "S Curve Theory," and it can be applied to most business concepts. But, it works particularly well for the fitness industry.

Used wisely, the S Curve is the modern equivalent of having someone back in the day read your tea leaves to predict your future. The numbers in business simply never lie. But, our emotional connection, maybe this sense of, "I built the damn thing, and of course my idea/business concept is what the consumer wants!" entitlement mentality blocks our ability to see the future that's so clearly directly in front of us.

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