The Investor Mindset In Business
Why having an investor mindset is key to being successful in luxury or premium
This article is for all the business owners who think that reducing cost and getting cheap labour is the key to building an empire. Let’s analyze why this is, in reality, can never work.
Cheap people buy twice (Old Russian Proverb)
Most entrepreneurs in the luxury or premium space who have an economic buyer mindset just look for the cheapest solution possible. They always have something more important on their list, be it their own salary, this other side project, this specific trade show or this wonderful opportunity that is going to make their brand instantly successful through magically meeting that one special buyer. So eventually they start thinking, ok I have to save money on my branding, my website, my copywriting, my marketing and channel management.
That stuff is not that important anyway when it comes to attracting a constant stream of business, isn’t it? So I need to find the cheapest providers that are out there. Marketing is not effective anyway, it’s just something to do later when you are big and successful. Real startups are built by doing phone calls, emailing people and making the right connections, right?
COMPLETE AND UTTERLY FALSE!
These people obviously don’t realize that successful companies become big BECAUSE they have an investor mindset instead of a shopper mindset. Sometimes these people will even try to keep up appearances by hiding the fact they use ultra-cheap outsourcing platforms or exploit their workers, so their customers and business partners don’t realize how little they actually care about quality…
Cheap labour when it comes to business services has to mean one of two things without exception in most cases: 1) the professional is a beginner with little academic or professional experience, so he or she has to charge a discount rate to be able to survive 2) the professional is from a third world country and most likely is a generalist who serves 50 or more clients at the same time to make a living. Would you like to work with either of those and trust them with the success and growth of your company? How much integrity will either of these people have when it comes achieving above and beyond results?
The Investor Mindset and why it is superior
Investors know that taking risks is what makes them money. They also know that assets usually take some time to produce a return and that investing in quality will usually yield the most stable returns. If an investor doesn’t have the capital to get into an asset class (for example, starting a luxury/fashion/premium brand) he will wait until he has the means to do so. He will not try to find a stockbroker that sells him quality stocks that are 80% discounted, a smart investor would run from this kind of offer faster than you can say “penny stocks” (Wolf of Wallstreet, anyone?).
Now let’s apply that mindset to being a luxury entrepreneur. A real entrepreneur will secure the funds first, at a realistic scale for his goals, set a decent portion for marketing and promotion aside and then find quality people to manage his funds for him, so he can minimize risk and involvement. He will then wait for the returns and re-invest some of these into the asset class (the marketing channels and service providers) that make him the most money.
This little story that we recorded recently showcases the real difference between a person who thinks that he is saving money but is actually just losing and destroying his business VS a person that knows that to make money you have to spend some money:
So what if I have a shopper mindset David, being cheap means being smart?
Leave this blog, unsubscribe from our list, don’t watch our content and definitely don’t apply to work with us. We had enough of your shenanigans…
We recently started an effort to phase out or fire all the clients who have a shopping mindset. At some point, you realize, that you can only do great work and achieve something with people that are willing to invest, not with people who are looking for a bargain or to do everything themselves.
If you are willing to take a deep breath and reflect on the economics of marketing since this article opened your eyes, then you are invited to stay. We will release more content that can help investor mindset entrepreneurs scale their business. Because we want to see more people succeed in the luxury or premium brand space, now is the greatest time to start something new after all, with technology and advertising costs being at an all-time low. So think like an investor and prosper, we are doing the same!
The post The Investor Mindset In Business appeared first on Fashion Mythology.
from Fashion Mythology
0 Comments