The 5 Stages of Entrepreneurship

Summary

• Don't switch business opportunities merely because you think the new one will bring success quicker; such changes often lead to repeating a frustrating cycle.
• Be aware of the five-step cycle that can trap you when switching: Step One is uninformed optimism where an idea seems promising because others are successful or it's well-marketed.
• Step Two, informed pessimism, hits when you realize the new opportunity isn't as easy or lucrative as you believed.
• Step Three, the valley of despair, is where you feel regret and consider abandoning the venture after facing the hard reality.
• Avoid repeatedly cycling through steps 1 to 3 with different opportunities, as it leads to stunted growth and a decade can pass without significant progress.
• Stick with your current path unless there's a highly certain and compelling reason to pivot, as persistence is often what leads to breaking through revenue plateaus.

Video

How To Take Action

I would suggest sticking with your current business instead of jumping to new opportunities that look better at first. It's easy to see a friend making money or to hear from a marketer about a great chance, but it's often not as good as it seems. You get excited at first, but then you learn more and it gets tough. You might want to quit, but if you keep changing paths, you won't get far.

A good way of doing things is to stay where you are and keep working hard, unless you are really sure that changing is better. Most of the time, being patient and not giving up is what helps you make more money.

To make this work, first take a hard look at why you want to change. Is it just because it seems easier? If that's the reason, it's not good enough. Next, remember that learning something new always starts fun, then gets less fun as you see the real work. If you're in the middle of this tough part, that's normal. Don't give up now.

Also, think about how much you've already put into your current business. You've learned a lot and it's worth it to keep going. Only change if there's a really, really strong reason.

Last, set up a plan with clear goals for your business. Stick to it. This will help you move past hard times and start making more money. Remember, most successful people had to work hard for a long time before things got better.

Quotes by Alex Hormozi

"Do I push or do I pivot"

– Alex Hormozi

"You better have a high degree of certainty because most of the time you're going through the same five-step cycle"

– Alex Hormozi

"Step One uninformed optimism"

– Alex Hormozi

"Step Two which is informed pessimism"

– Alex Hormozi

"Step Three which is valley of despair"

– Alex Hormozi

Full Transcript

do I push or do I pivot if the only reason you want to jump ship to another opportunity is because you think it's faster you better have a high degree of certainty because most of the time you're going through the same five-step cycle of Step One uninformed optimism a friend of yours is making money or you found out about some other thing from a marketer who makes more of his money pretending to do it than actually doing it and then you jump in you go to step two which is informed pessimism because then you find out that it's not as good as you thought it was and now you're aware of it and then you're like well shoot now I did it well I might as well keep going then you go step three which is value despair everything sucks I thought this would be way better I should have just stuck with the first thing that I was doing at this point most people just jump back to step one again which is well let me jump ship try another shiny object and they just do 1 2 3 one 2 3 over and over again and then 10 years go byy and they pretty much hit the same level of Revenue they can't pass it