by Darnyelle A. Jervey, MBA
Today, as business owners we have access to so much to make building a business easier. But why aren’t more of us building businesses which thrive? According to the Kauffman Foundation, only 6% of all entrepreneurs ever achieve 6 figure business success, only 2% ever achieve 7 figure success and more than 50% of all business owners never exceed $25,000 each year. Why do you think that is?
Mindset, Market and Message. These are the top 3 challenges that stop service based business owners from ever achieving their goals of having a 6 figure or more business.
You are selling yourself short and letting fear stop you from moving forward. You give in to your sabotaging beliefs, staying in a comfortable place and not investing in yourself. When you don’t believe in your ability to build your business, you make careless mistakes and those mistakes cost you your confidence, your content, your connection and your community. Now most business coaches and mentors won’t tell you this but I personally believe that 95% of your success or lack thereof is tied to the 6 inches between your ears.
You are trying to sell to clients who can’t afford to hire you. Not taking the time to get crystal clear about who your ideal clients are and not creating a diversified client mix. Trust me, in the early days, I fell victim to this one as well. It’s so easy to unless you get clear. When you don’t attract the right clients for you, you set yourself up to fail because you are not able to give your clients true transformation because you’re stressed out, burned out or checked out on the level of service you want to be known for in the marketplace. You’re not focused and when your market isn’t right, your money won’t be right either.
Targeting the wrong clients can be the difference between broke and bubbling over with income. When you don’t know your value and your worth in the marketplace, you start discounting your incredible factor which puts you in a horrible position because you can’t build your business, get access to what you need to grow and invest in yourself and your business. So many entrepreneurs just pull prices out of their back pocket and that is not the way to build a 6-figure business.
You’re unclear about how you are different than others who offer the same type of service as you. Social media makes it so easy to jump on a band wagon and become the next so and so, but you weren’t born to be so and so. You were born to be you and there are people right now who are waiting for the real you to show up with the solution they are craving to solve their problem. When you aren’t clear about HOW you can help your ideal clients, you become a commodity. A dime a dozen. And you blend in instead of standing out which means you get limited opportunities and that creates a vicious cycle for you and your business.
While the internet has brought us some of our greatest opportunities for leverage, it also brings us tons of chaos that is distracting and causes us to easily lose focus. Today’s entrepreneur is caught off guard and not focused on what I like to call PPAs or Profit Producing Activities. You know those things that lead you to new clients and income. Regardless of how you are building your business, on or offline, these challenges are most likely the reasons why you’re not experiencing a life and business that brings you joy.
In my upcoming event, Unleash Your Incredible Factor, I’ll share my PROVEN system for breaking through to six figures in 12 months or less. You don’t have to remain in that 94% of entrepreneurs who never make $100,000 or more in their business. You really can create a thriving and profitable business that serves you. THIS YEAR.
Visit www.unleashyourincrediblefactor.com to learn more.
Darnyelle A. Jervey, MBA is anaward winning author, sought after speaker, award-winning certified business coach and marketing consultant, Darnyelle A. Jervey, MBA, is the founder of Incredible One Enterprises, LLC, a full service marketing strategy, empowerment and business optimization consulting firm that specializes in offering business leaders marketing and business optimization strategies, empowerment and executive coaching solutions to individuals and organizations worldwide.
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14 Replies to “Top 3 Reasons Why Most Entrepreneurs Will Never Make 6 Figures in Their Businesses by @DarnyelleJervey”
Can you supply the source of the Kauffman study you cite? (Year? Study title?) I have been all over their website and have been unable to find it. Many thanks!
I replied to you via twitter but thought I’d post it here as well.
The statistics I shared were in my facilitator manual (I am a Kauffman certified facilitator and business coach) which has a copy right of 2008. It doesn’t give me a specific survey name.
A 2013 survey from the SBA states that of the 22,491,080 million non-employer small businesses in the US,20,157,481 made less than $100,000 (90%) and 2,330,145 made more than $100,000 (10%) so it looks like the trend is changing. of that breakdown, .13% exceed 7 figures. The 2008 survey from the SBA shared similar statistics as the Kaufmann Survey. Keep in mind that This is across all industries for all businesses classified as non-employers.
So, under $100,000 = 89.63%
over $100,000 = 10.37%
Between $100,000 and $1,000,000 10.24%
over $1,000,000 .13%
Thanks for asking this question, it made me go see if there was a more recent survey to quote in the future!!!
Although it appears that the trend is shifting there are still far too many solo-preneurs (non-employer businesses) that are not making $100,000 a year.
If you have any other questions, let me know.
“only 6% of all entrepreneurs ever achieve 6 figure business success”
Great info Darnyelle. Really puts things in perspective! A wake up call for many. Can’t wait to hear more success stories from your upcoming event!
One secret to success is this:
It’s not about you or your ideas. Or mine. Business is about business – making profit, paying for it, and selling a product or service to a paying, enthusiastic customer. Of course, have fun, be passionate about it and your customers, and, by all means, do amazing things!
Do you know someone that has a profitable idea and the leadership skills to make it happen? It doesn’t have to be you. But you do have to be able to contribute in a mighty way. If you do know such a person and you can contribute in a mighty way, put yourself at their disposal. With a written promissory note for a share of future spoils – of course.
As an entrepreneur that founded several 7 figures businesses (annual), I can say that it’s a lot worse than your numbers suggest. Less than 1 percent make it to a six figure (annual) business and less than 1 percent of that 1 percent can sustain that for two or more years. Unfortunately, the odds are getting worse as more and more people bet the farm on a hobby horse or unicorn.
Great ideas are a dime a dozen. But the timely and effective execution of even just a good idea is rare, in fact. Hobbies and unicorns, however, abound.
Thanks for sharing. The numbers I share are based on the Kauffman Foundation bi annual reports. And I agree that far too few are making the kind of money that sustains families and communities. Thanks for sharing your thoughts.
You’re right… 95% of success (in my opinion) is tied to our mindset…
Thanks for commenting.
Yes I believe my message applies to both. I work with online and feline businesses! Thanks for sharing your perspective!! Cheers to you as we’ll.
Vernetta R. Freeney
You are so right about a clear message. I suffered from that and had to repair the damage I did. Now things are starting to look up.
Thanks! And congratulations!!
I had not idea that only 6% of entrepreneurs reach the six figure mark. Thanks for writing this article. Mindset, Market, Message….got it!
Great post! Mindset 🙂
Thank you so much for sharing. You are on the right track!! I love that Abe Lincoln quote as well, you can never spend too much time preparing!!
Continued success and let me know if I can help make what you’re doing even more Incredible!!