Why Most Entrepreneurs Don’t Make Money

Summary

• An entrepreneur is someone unaware of their skill deficits and often gets stuck in the "wantrepreneur" phase, not executing on their ideas.
• The key to breaking out of being a wantrepreneur is action, not overconsumption of information.
• I've personally fallen into the trap of failing to launch a product — like my Queen Transformation fitness course — due to overthinking and fear of failure.
• To overcome entrepreneurial fears, visualize the worst-case scenario and become comfortable with it, mitigating the fear of the unknown.
• Reframe your goal from winning to learning, as this perspective accelerates growth and removes the paralyzing fear of failure.
• Set low expectations for yourself to increase happiness and satisfaction as you'll likely exceed them and feel more positive about your achievements.
• Adopt an experimental mindset in your entrepreneurial journey to alleviate the pressure of big decisions and remain flexible in changing paths.

Video

How To Take Action

I would suggest focusing on taking action to move beyond the "wantrepreneur" phase. Instead of spending all your time learning, you want to start doing. Remember, the more you do, the more you learn, even if things don't go perfectly. Here's how:

Firstly, think about the worst-case scenario and get comfortable with it. Ask yourself, what's the worst that can happen? If your business idea doesn't work out, you can learn from it and try again. This will help you worry less about failing.

Next, change your goal from winning to learning. Each step you take is a chance to learn something new, and you're not failing if you're learning. You might stumble but you'll pick up valuable lessons along the way.

Also, keep your expectations low at the beginning. This isn't about being negative, but being realistic. If you don't expect too much too soon, every small win will feel like a big victory and keep you motivated.

Finally, try out an experimental mindset. Treat every new idea or change like an experiment. This way, decisions feel less heavy, and you give yourself the freedom to adjust your path if you need to. It's all about learning and adapting.

Remember, you're likely to change your mind and direction many times. By treating it all as an experiment, you keep the pressure off and make it easier to take those important first steps. This way, you'll move from just thinking about entrepreneurship to actually being an entrepreneur.

Quotes by Leila Hormozi

"The secret that entrepreneurs know is that it's all about action"

– Leila Hormozi

"You have to be willing to fail and willing to take imperfect action in order to get what you want"

– Leila Hormozi

"Make sure you're playing a game that sets you up for success"

– Leila Hormozi

"The lower you set your expectations, the more likely it is that you will be elated, excited, happy about your progress"

– Leila Hormozi

"It is an experiment if you can actually believe that, which I truly do, then you'll be much more likely to take that jump"

– Leila Hormozi

Full Transcript

what is a entrepreneur an entrepreneur is someone who is dabbling yet unaware of their skill deficits that are needed to start a business so in this video today what i want to talk to you about is how to stop being a entrepreneur the phase of being an entrepreneur is like you're literally wading through the swamp of unconscious incompetence what is unconscious incompetence that is essentially when you are unaware of how incompetent you are in terms of your ability to start the business this feeling of being very lost very unaware and very unassuming and so what does this look like you consistently have an idea and then you work on that idea maybe you build a product you build some kind of marketing campaign you get something built and then when it comes down to actually shipping that thing out and selling it to customers that never happens if i could have one word that i could associate with it that i see very commonly amongst most people that are in the stage is like over consuming and overthinking so you spend all your time consuming all the stuff like right now you're consuming my content which i'm literally putting out there so hopefully you can break the cycle of consuming but like you don't need more content the secret that entrepreneurs know is that it's all about action it's not about over consuming you don't need any more information to win you have to be willing to fail and willing to take imperfect action in order to get what you want what i did is i spent so much time completely looping in my mind i want to launch this thing i could do a little bit of this oh it's not perfect yet go back to square one not perfect yet i can't do anything with it because it's not perfect basically the fear of failure well one time i built out this course i called it queen transformation it was gonna be my online fitness course five six months building out this huge course with all these training videos all this time i spent every weekend working on it and i never did anything with it that is why i consider to be a entrepreneur it's somebody who really wants to be an entrepreneur but they don't have the discipline to break through those mental habits to get to the other side i've really broken down four mental frameworks that have helped me break through from being an entrepreneur to an entrepreneur visualizing worst case scenario people often talk about visualizing positive scenarios it's almost like people think that if you visualize the worst case scenario that you're gonna end up there but that's actually not the truth at all what you're doing is you're creating almost like exposure therapy in your mind to that worst case scenario so you're becoming familiar enough with it that you're comfortable with that scenario for me that scenario was quit my job i get rid of all my clients and then i start this business what if it fails what happens next i don't have too much money left i don't have my job anymore my clients have probably all gone to new people i'm still 23 i have to rebuild a client roster so i can get some cash flow so that then eventually i can restart a business and try again okay well maybe i can't pay rent so we have to live with my dad living with my dad's actually not all that bad you know they do laundry they cook food i get to spend more time with my family what am i so scared of like what actually will happen for most people is not going to be that bad you're not going to be homeless and starving on the streets the worst case scenario is that you harshly judge yourself for the fact that you failed you realize that it's not so bad after all the thing that feels bad is when you judge yourself for it and so every time i would like feel that pang of anxiety in my stomach when i was leaping forward and making these decisions and i would like want to retreat back to my safe place i'd be like wait let's just play out worst case scenario what is it again and i was like oh that's not even that bad no i'm fine keep going the second mental framework that i used was i switched my goal so a lot of people are afraid of going from having a business idea to starting a business because they're afraid of losing instead of the goal being to win whatever that means i said okay my goal is just to learn trying to become an entrepreneur will accelerate my learning faster than keeping this job well and so if my goal is to learn then this will take me there faster does that mean i will probably fail more yes but that doesn't matter because i'm learning a lot of people are so afraid they're like they have these huge audacious goals they set for themselves you can set those later when you've actually made the leap for right now if you need to trick yourself which is essentially i tricked myself into taking the leap by making my goal something that if i failed i still want make sure you're playing a game that sets you up for success you can change the game later on you can change in three months six months 12 months once you get in the game but right now you're on the sidelines and so you have to do whatever you need to do in your mind to get yourself from the sidelines into the game robert kiyosaki talked about this he's like you want to work to learn not earn me failing at something is more information which is more learnings and so if you can make that mental switch it'll make it a lot easier for you setting low expectations if you set your expectations low then any condition that is above low in your mind is going to feel good to you it's going to feel like a win in my mind i wasn't going to be married or have much money at all until i was 30 to 32. and ironically what it did was it relieved so much pressure from me that i was actually able to make better decisions and also feel more delighted and excited about the things that were happening sooner than expected i talked to a woman when i was on the live the other day she was six months into learning how to do wholesaling she said i'm just having a really hard time and i said are you making money and she said yes seven thousand dollars a month and i was like i don't understand what the problem is i thought i'd be making maybe twenty thousand dollars a month by now the problem is not the number of how much money you're making the problem is that you set an expectation in your mind because she was comparing herself to people with all this real estate experience and all the sales experience all this marketing experience she'd been a waitress in a small town the lower you set your expectations the more likely it is that you will be elated excited happy about your progress because anytime real life conditions exceed expectations you'll be happy the experimental mindset any time i want to make a big change in life it feels almost like really tough to make that decision because you feel like all this weight on your shoulders where do i want to live do i want to move cities and you see so many people get stuck what if you said this is an experiment i'm going to try living somewhere for six to 12 months and i'm just going to experiment see if i like it i don't move somewhere and think i'm living here forever i mean that would be horrible and who wants to live somewhere forever and what that does is it gets me to take the first step you're just experimenting you're just gaining feedback for some reason in our minds it's so black and white it's either all or nothing it's like we're going all in on this path it's like the worst case scenario is you just go back to what you're doing before if you can adopt that within your entrepreneurial journey then you can say like i'm just going to experiment with wholesaling an online training business online finance whatever it may be we're going to change our minds and we're going to change our paths in life so many times but it is an experiment if you can actually believe that which i truly do then you'll be much more likely to take that jump than you are if you tell yourself this is a huge life commitment and if you fail you have nothing to go back to because it's not reality if you like this video and you feel like you are ready to take action i have a video the four steps to get from zero to one million so if you enjoyed this one check that one out and also let me know what you think in the comments