3 Ways Scarcity Mindset Nearly Killed Me and My Business

My friend, I would be lying if I said I haven’t been negatively affected by scarcity mindset, many times, since I started my business in 2012.

Just to give you an example, I’ve…

  • Accepted clients who were willing to pay only a quarter of my asking rate (not anymore!)
  • Taken on clients who were so far outside my ideal client avatar they may as well have been from another planet
  • Said “yes” to more work than I possibly had time for, because I was worried there would be an immediate work drought if I said “no.”

Have you done any of these? If yes, then maybe you understand a few of the ways my business suffered as a result. Today, I’m surprised my business survived the season(s) of scarcity mindset.

3 Ways Scarcity Mindset Nearly Killed Me and My Business

 

80/20 Rule the WRONG Way

I had to work four times as long for the under-paying clients, giving them more attention than the higher paying clients.

The Problem: While my lower paying clients were happy, I didn’t want referrals from clients paying at a lower grade and knowing they were getting a deal, if not a steal. When they sent their friends, they told them what they were paying, not my expected rate. And the vicious cycle started again.

In the meantime, clients who had agreed to the higher pay rate were getting jilted. Although I wanted referrals from them, they were not getting the service they expected, and therefore did not send referrals.

I invite you to listen to my episode with Perry Marshall on the Positive Productivity Podcast to learn more about the 80/20 Rule!

Working with Non-Ideal Clients Provides Non-Optimal Work

I love to be inspired by the work I’m doing, and when I’m working with non-ideal clients, my work is anything BUT inspired.

As a strategist and mentor, my strategic well of ideas runs dry when — to put it 100% bluntly — I don’t care about the work my client is doing.

So, working with non-ideal clients provides non-optimal work.

Did I want the referrals non-ideal clients provided? Well, only if they were referring ideals. But, most the time, they weren’t.

The Problem: Just like the clients who I took on at lower rates, working outside my genius zone brought in referrals for more work outside my area of interest — if it brought in referrals at all.

Would you rather become a known expert in the area you LOVE working in and build a waiting list of clients who want to work for you there? Or would you like to have a never-ending stream of clients you don’t give care for outside of them being a person?

You decide.

No Time + Too Much Work = Lots of Stress and Not Enough Action

Saying yes to every project that came my way resulted in me having way too much work. While I only wanted to work 6-8 hours a day (max), by July 2016 I was working 20-22 hours a day, EVERY day.

Don’t let these increased hours of “work” make you think I was getting more work done. If anything, I was getting LESS done. Sleep deprivation greatly affects our productivity, and tasks which should have been taking me two hours were taking eight, just because I was sleeping two hours instead of eight.

The Problem: The work piled up, clients became increasingly unhappy, I became more discontent, and I slept even less.

What a vicious cycle.

The Breaking Point

In July 2016, I reached my breaking point. I was working 20-22 hours a day, and a good month was bringing in $2000/month, max. I was exhausted, my family was struggling financially, and I was trying to do everything in my business myself. Note the word, “trying.”

I invite you to read this article to find out what happened that changed me, but I will tell you now that making changes in my mindset has changed my life in more ways than you can possibly imagine.

  • Saying “no” to non-ideal clients and rates QUADRUPLED my income.
  • I sleep 6-8 hours a night EVERY night.
  • My team now has TEN amazing individuals supporting each other and the business.
  • I’m building products and programs I LOVE.
  • There’s time to work on MY areas of passions rather than devote 100% of my time on client work.

And…

  • Our income has grown from barely $2,000/month to multiple five figures.

 

It’s Time For YOU to Break Free from Scarcity Mindset!

If you’re struggling with figuring out how to escape scarcity mode, I want you to start with sleep first, and saying “no” second. Sleep will provide greater clarity, reduce anxiousness, and increase focus and productivity.

I would love to hear how scarcity mode has affected you, and the steps you have or are taken to get out of it. Would you leave a comment below and let me know?