The Scarcity Mentality Is Destroying Your Business

ID-100263931Whether you’re new or an established business, there are often situations where you don’t want to take on a particular client but feel like you can’t turn away the money. I was chatting with a young entrepreneur recently who was struggling with this very problem and wanted some advice.

In his particular case, he already has a “prize pony” client that hits all the marks for what anyone would consider a great client but the issue begins with some of the other leads coming in, as they tend to have smaller budgets and higher demands.

Different sized companies will have different sized budgets but are you and your services a fit for that particular company? That is the question you need to answer.

Scarcity Vs. Abundance

Not everyone is the right client for you and you aren’t the right service provider for every client out there. When you get to the point that you have enough of the right kind of business, that’s a decision you have to make and it’s an acceptable one.

That’s the biggest thing for any entrepreneur…if you believe in the law of abundance, then you can actually say no to people. You know that there is more than enough business to go around and that there’s a win-win out there for you and the perfect client. This mentality serves you and your business well.

If you don’t believe in the law of abundance, you never say no. It’s a vicious world and you’ve got to take anything you can get, undercutting your prices just to compete. All decisions are made for short-term leaving you constantly spinning your wheels trying to get enough volume to move the needle. This mentality does a great disservice to you and your business.

The Law of Abundance

It’s really important that you understand the difference between the law of abundance and the law of scarcity because the latter will erode everything that breeds success in business.

What is the law of abundance? Evan Tarver does a great job of defining it at his website:

When you are first starting out in moving toward a goal, you’re in scarcity. You have minimal opportunities, and you’re looking for something, anything, to push you in the direction of your goal. As you remain focused on your end-goal, and begin to take action, you pick up momentum as you get closer and closer.

Then, once you attain your goal, you move from scarcity to abundance. Through the positive action you took, and the confidence and self-awareness gained by your first success, you begin to attract more opportunities. It’s as if before you had zero opportunity, and now you have too many opportunities.

Through the confidence and positivity gained in abundance, you communicate to the world that you are deserving of more, and people will believe it and act accordingly.

Bad Leads? Move On.

The law of abundance ensures that the reward you gain is equal to the value you’re able to provide for others. Yes, you still have to go through the sales process but if you don’t get hired after you’ve answered all their questions and done the dog and pony show, it’s time to consider the possibility that you probably don’t want that individual as a client. If you’re going to constantly be challenged on the work you do for a particular client, it’s not worth it for you or them.

Create Urgency With The Right Leads

Now that you know who you don’t want to work with, it’s time to figure out how to convert more of the leads you do want to work with. Part of this relies on your ability to create urgency with an individual because if you have something somebody wants, they will be prepared to pay for it. Remember, what they are prepared to pay for that product or service is directly influenced by the value they gain from it.

Before they hire you to do the job, they need to feel like they will get the value they’re looking for and that you’re capable of delivering it. It has to be a win-win.

When I think about the most successful businesses, they aren’t just successful at creating results for themselves but also the partners and clients they work with. That is the essence of great entrepreneurship.


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