Dan Lok

Is Investing In Real Estate A Good Idea?

February 8, 2020 by Dan Lok Leave a Comment

When I was a younger entrepreneur, I couldn’t help but wonder if investing in real estate was a good idea.

I was raised like a typical Asian. In Hong Kong, which is where I’m from, a lot of people dream of owning a home. I was taught to believe owning a home was an ideal goal. If you want to do what you were raised to do, then you would buy a home, whether it’s a house or a condo. But if you want to have more mobility because your job is not stable and you don’t have a steady income, renting might be wiser.

Which would you rather choose: an unachievable dream or financial suicide? Share on X

Both seem unpleasant, especially in a high-priced real estate market like Vancouver.

People say if you rent, you’re making somebody else rich. You’re paying someone else’s mortgage. You’re throwing money out the window instead of investing in real estate that will be yours.

If you’re from an Asian background, you were taught from a young age to own your home. You want to own the roof over your head, no matter what the cost. If the mortgage was barely affordable, you just worked longer hours or got a second job.

You became what they call “house poor.” You had a beautiful home you could be proud of, but it was also the black hole all your savings disappeared into.

I couldn’t help but wonder if this was at all a good investment.

So, should you buy or should you rent? Now, I believe it’s the wrong question to ask.

Here’s why: It depends on where you are at in life, your income, and also your goal. It’s like asking, “Well, should I buy a condo, or I should I buy a house?” It depends on whether you want a garden. If you want to have a gym. If you want a condo lifestyle, so you deal with less maintenance. Or if you love to spend your spare time gardening and lounging outside.

Investing in real estate and buying a home is a major decision, probably the most important investment that you’ll ever make in your life.

So today I’m going to give you some principles that will help you to make these decisions wisely. I’m going to share some insights with you based on my experience as an entrepreneur and investor.

Watch this video about whether you should rent or buy.

Question 1: Can You Really Afford To Be Investing In Real Estate?

Consider the cost of renting versus buying. If you live in any of the major cities, you know prices of real estate can be very expensive.

With your current income you may not be able to buy at all. It might take you years, maybe decades to save up enough money just for the down payment. And then after that, it’s a stretch to make the monthly mortgage payment.

In this situation, there is too much risk involved. If you can barely afford the mortgage payments, then an emergency, such as a leaky roof, could get you into deep financial trouble.

In this case, don’t buy, rent.

Question 2: Is It Cheaper To Rent Than To Buy?

In a city like Vancouver, the housing prices are so expensive they say you need an income of over $100,000 to buy property there. The mortgage payments and property taxes would be so high that maybe it’s better for you to rent and then buy later when you have more savings.

You might be wondering if you could buy property and make money from it, to help with your mortgage payments. In that case, you would be a landlord renting out a piece of property. Next you would have to decide how much to charge the renter to cover your mortgage. If the rent you charge is not enough to cover your mortgage payments, that’s called negative cash flow.

For a lot of real estate investment properties, there is actually a negative cash flow. You can calculate it. If your monthly mortgage payment is $3500, but you rent out the place for only $2800, as the landlord, you’re losing money. Every month the tenant lives there, you’re losing money. You could raise the rent, but you may also lose the renter, who may not want to pay more.

What you’re counting on is the appreciation of the property over time so by investing in real estate you would get your investment back when you sell it.

As a tenant in Vancouver, you save a few dollars. You don’t have to make a down payment, so you can rent a place that’s not so nice but saves you money. You can use that money towards something else, maybe starting a business, or developing a side hustle so that you can afford to buy in the future.

Question 3: Should You Rent If You Are Still Earning And Learning?

Maybe you just graduated, maybe you just started your own business. You’re trying to figure out out your career, your strengths, the ideal location for you to prosper. You never know, because there may be an opportunity in another city, and then you’ll have to move.

In that situation, I recommend that you rent because you want to be mobile. You want to be flexible, especially if you’re a millennial, and instead of investing in real estate just save that down payment to invest in yourself.

Or if you’re an entrepreneur starting a business, invest that amount in your business, so you can grow it. When that business makes you more money, look into buying. But for now, rent if you’re still earning and you’re still learning.

Question 4: Should You Buy If You’re Stable And Established?

Let’s say you’re close to or over 30 years old, and you have a stable career with a good income. You don’t expect to change your work situation anytime soon, and you won’t be moving from the city you plan to live in. You can afford to buy a home in a good neighborhood, and still have money left over after you buy. In this case, you can afford to buy a home, especially if your mortgage doesn’t exceed 25% of your monthly income.

If you have a significant other, and you and your partner are working on this purchase together, you can think about how much you can spend on a home. If you both have a reliable source of income, either from a job or from the business you’re working on together, then you should buy. Buy because you are starting a family, and you want to have a place where you can watch your kids grow up.

Question 5: Should You Buy If You Are An Entrepreneur And Not Yet An Investor?

Entrepreneurs like to take risks. So do investors. The difference is investors only invest money in an opportunity or business but an entrepreneur invests ideas, time, passion and in some cases, money, in a business.

If you’re an entrepreneur or business owner, you want to look at your home as not an investment, but a savings plan. Your primary residence is your savings account. If you look at it that way, it is a forced savings plan for you. So, in case your business goes through financial ups and downs you’re still putting money aside in your savings account. You’re not betting everything you have on your business.

If you stop paying your mortgage, you’ll be out on the street very quickly, but somehow, as an entrepreneur, you’ll be creative enough that you will find the money. Every month you’re putting money in your mortgage, your savings account, in case something happens to your business. It’s a bit of a buffer so at least you have some equity.

I learned this the hard way. Entrepreneurs are sometimes overly optimistic. We think everything is going to be good, everything is going well, but sometimes you never know. So, if you are an entrepreneur, buy the home that will be your savings plan.

Question 6: Do You Buy If You’re Financially Successful?

If you’re stable and you’re financially successful, buy. I believe when you have your own home, there is a psychological benefit to that.

Knowing that you’ve got a place, and you can design the home exactly the way you want to maximize your productivity. At the same time, your home is your sanctuary, your primary residence. But it’s not an investment, and I’ll explain why in a moment.

If you’re financially successful, I would recommend you spend no more than 20% of your net worth on that primary residence. Some people may say up to 30%. So how would you calculate that amount?

Let’s say your net worth is two million dollars. You wouldn’t spend more than $400,000 on your primary residence because your home is not an investment. You don’t buy your home because you intend to make money from selling it. So you spend 20% of your net worth on a house, and use your extra money to buy more investments, such as real estate.

I spend a very tiny percentage of my overall net worth for my primary residence. That’s my home where I have my sauna, massage chair, home theater, library, man cave, and gym. I have everything in one place, when I designed the ideal home for me. That’s where I feel relaxed and that’s where I recharge.

So if you’re still undecided about renting or buying, ask yourself these questions which I covered in this article:

Can you afford it? No = rent
Is it cheaper to rent or buy? Not enough savings = rent
Should you buy if you’re still learning? Not stable in life = rent
Should you buy if you’re established? Enough savings = buy
Should you buy if you’re an entrepreneur? Have savings account = buy
Should you buy if you’re financially successful? Property is 20% of your net worth = buy

Your home shouldn’t cause you financial ruin. It also shouldn’t be a dream you can never attain. As long as you make wise decisions about your finances and investments, you can become a homeowner.

Grow Your Savings Predictably and Sustainably

If you want to discover how to multiply your savings without losing to inflation, risking your finances to short-term opportunities, and without keeping it in your low-return savings account when investing in real estate, you’re invited to my event in Las Vegas on February 23-24, 2020.

Take control of your financial literacy and reserve your seat before spots run out.

10 Insider Secrets For Creating A Personal Brand Based On Your Unique Superpower

February 7, 2020 by Dan Lok

Are you looking into creating a personal brand, but you don’t know where to start?

I see and hear a lot of bad advice when it comes to creating a personal brand. People who never actually built a successful or powerful personal brand themselves, want to tell you how to do it best.

It’s smarter to listen to people who practice what they preach. That’s why people ask me for advice on creating a personal brand, since I have credibility in the form of success and millions of social media followers.

Personal branding is important because ultimately, your personal brand will differentiate you from your competitors. When creating your personal brand, you want it to stand for something. The last thing you want to do is to be another boring realtor, another pushy sales agent, another coach who lacks that ‘X’ factor. You are unique, and you need to figure out your unique superpower and incorporate what makes you stand out into your branding. Your personal brand should be a reflection of your unique superpower.

I spent a lot of time building my personal brand. And that’s why today, I want to share 10 insider tips on creating a personal brand based on your superpower.

Why Should You Be Creating A Personal Brand?

A personal brand isn’t something you create after you already have millions of followers on social media. Instead, I like to think of your personal brand as your reputation and your image. If you asked others to describe you in three words, what would they say?

Would people say positive things about you and your brand? Would you like what people said? Or would it be negative?

Get some clarity on how you want others to see you. Figure out the three words you wish other people would use to describe you, and your brand. Those three words will become the base of your personal brand.

For example, the three words could be, “Diligent, “Honest”, and “Humorous”. It can be whatever you most desire to be known as.

Now, my personal recommendation is not to stop there. Next, you want to find out what your unique superpower is, and build your personal brand around that.

Why Should Your Personal Brand Be Created Around Your Superpower?

What do superpowers have to do with creating a personal brand? If you’ve followed me for some time, you know that I love superheroes like Iron Man or Batman. Studying comics, I noticed one thing. Superhero characters often have longevity. People remember these characters. Some of these superhero characters have been around for decades. People like to follow the story of superheroes.

That’s why when you are creating a personal brand ,you want to model your brand story after a superhero story. Basically, you are creating a character. The character is you, but maybe not all of you.

In other words, perhaps you tell your audience certain stories from your past, such as things that shaped you, but you don’t tell them about your current private life. That’s perfectly okay. Your personal brand doesn’t need to be based on your full story, or include every little detail of your life. With personal branding, you just have to reveal enough of a story so that you are authentic and people can connect with you.

Focusing on your superpower also has another benefit. Instead of trying to be good at everything, you narrow it down to what you are best at. What you’re best at is your special gift – your unique superpower. You have positioned yourself as an expert on one particular subject.

If you claim to be an expert at everything, nobody will believe you, and nobody will like your brand. That’s why specializing in one thing or one niche creates a lot more credibility. If you position yourself as an expert in one niche subject or field of focus, your brand will garner more respect and attention.

I personally have been using this strategy, and it’s been working. I have positioned myself as an authority figure and established myself as an expert in certain niche fields related to business, copywriting, sales, and closing. That means that my personal brand won’t be for everyone. My brand is for certain kinds of people who are interested in learning what I am an expert at. P

art of developing my personal brand involved telling my story of how I became an expert at these things. I won’t be around forever, but the character of Dan Lok will live on.

Below are 10 insider secrets for creating a personal brand using your unique superpower:

1. Creating A Personal Brand by Discovering Your Superpower

The first thing you need when creating a personal brand based on your superpower is, of course, your superpower. I’m not talking about superhuman strength or the superpower of flying, though.

Your superpower is what you exceed at. You superpower is your special gift, skill, or talent – it’s something you are exceptionally good at.

It could be anything from public speaking to consulting to SEO copywriting. Your superpower is based on your primary skill that you are an expert at.

Focus on a superpower that you enjoy, which will also bring value to the marketplace. Then, communicate your superpower to your target audience.

What if you aren’t sure what your superpower is, exactly? Determining your strengths and weaknesses is an important task to further your growth. So you might want to dig deeper and get to know yourself.

Usually, your superpower feels effortless. It’s what you’re naturally the best at, without trying that hard. You are great at it, and it amazes others. Your superpower can be a skill or something you understand more clearly than others. It could be something you’re so good at, you’re are almost fearless. When you discover your superpower, you will notice because it will feel just right, and you’ll feel very confident doing it.

2. Be Clear on What You Want to be Known For

Tying back to your reputation, what do you want others to say about you?

Maybe there are others that have a similar superpower to yours. For example, there are several motivational speakers out there, but what if your superpower is motivational speaking? How do you break through the noise and stand out from the crowd? You do this by creating a personal brand that is solid, unique, and powerful.

When you are clear on what you want to be known for, you don’t leave anything to chance. If you look at my personal brand, for example, what do people know me for? Possibly things like “Dan Lok is a millionaire”, or “Dan Lok is the King of Closing”, or “Dan Lok is the boss in the Bentley”, or “Dan Lok wears a red suit.” Now, do you think any of that was by accident? No. I made very conscious choices about my personal brand and what I wanted to be known for.

So, what do you want to be known for? What do you want to be viewed as an expert in? Make sure you are clear on this. Then start to communicate it with your actions, words, and personal branding.

3. Creating A Personal Brand By Adding A Face To Your Business

Another reason why personal brands are so powerful is this: When you are creating a personal brand, you are adding a face to your company. Your business isn’t just a logo or a product anymore. That’s important, because people don’t really connect with logos. They connect with humans beings they like and trust. That’s why adding a face to your personal brand can really help you.

Adding your face to your brand adds credibility and increases trust. Why? Because at the end of the day, people buy people. They don’t buy products as much as they buy people.

With a strong personal brand, it’s no problem if your product or career might change. You and your personal brand stay the same. You are so much more than a logo and that’s why you will stand out. If people are connected to your story and you ‘why’, they will follow you. Even if you change careers. They want to know what you as a character will do next.

4. Creating A Personal Brand by Adding Your Backstory

All superheroes have on thing in common. They have a backstory, which tells their audience how they became superheroes in the first place.

There are three very powerful ways to tell your backstory:

The reluctant hero: In this story, the hero is an ordinary person. But something changes in their lives that makes them step up as a hero. In the beginning, they aren’t sure if they can do this though. Only when they find a reason – a strong ‘why’ – they fully pursue their story as a superhero.

An exceptional person who overcame serious obstacles. People aren’t interested in ordinary people. They love to watch people who are great at something and succeed, despite obstacles and challenges in their way. When you build your personal brand on such a story, people will want to follow you, because they are wondering, What will happen next? People also love underdog stories.

Us versus Them. This is another powerful story because people tend to naturally think in belief systems. It’s very powerful if you and your tribe have the same enemy. Use this tip only for good.

Now all you need to do is look back and see which of the three fits best with your story. Are you a reluctant hero who only found your true calling after something significant happened? Or have you always been on your path and overcame big obstacles to get where you are? Or maybe you want to create your personal brand on an us vs. them framework?

Decide which one you are, and start telling your story. Storytelling has infinite power when it comes to marketing. Maybe you heard of the saying, “facts tell and stories sell”?

5. What Do You Stand For?

When you are creating a personal brand based on your superpower you also want to communicate what you are stand for.

If you look at popular superheroes, they all stand for something. People don’t care that much about what you do. They care about why you are doing it. So if you share your story and share why you are doing what you are doing – wouldn’t that add much more power to your personal brand?

Think about successful entrepreneurs or celebrities that you look up to. What do they stand for? What does Elon Musk stand for? Or what about Oprah?

This also ties back to your backstory and your ‘why’. Tell people what you stand for and why. Are you contributing to a good cause? You will be creating a powerful personal brand if you are. Even if others are doing similar things as you, you can find a way to be unique. Even if others have a similar ‘why’, nobody has the same unique backstory as you do. So when you link the two together you will stand for something and nobody else can do it the same way. You will be able to cut through the noise and stand out with your story.

6. Creating A Personal Brand Based On Your Parables

You might be wondering, what are parables? Simply put, parables are your stories. You have your main backstory but you also have other stories that you use to make a point or strengthen your personal brand. So, if you watch my YouTube videos, for example, you will see I have a few stories. I have my copywriting story about my first mentor who taught me the art of copywriting, I have a story about my mother, and a story on how I used to work in a supermarket, and so on.

You’ll want to create an inventory of stories that you can tell when you are making a certain point. You also want to continuously add more stories to your inventory. Because at the end of the day, marketing is storytelling. Never forget that facts tell and stories sell.

7. Your Secret Language

When you are creating a personal brand, you also want to pay attention to how your target audience is speaking. Maybe they are using certain words and phrases that don’t make much sense to outsiders. But when you use the secret language they will feel connected to you much faster.

So, you might want to do some research on your target audience and see how they speak and what their lingo is. But since you are your personal brand, you want to make sure your secret language also makes sense to you.

You are unique and you want to show that by creating a personal brand. Don’t try to copy others. Don’t try to copy me. There is only one you in this world.

8. Create Your Own Technology

This is very closely linked to your secret language. When you are creating your personal brand you want to come up with your own technology or your own mechanism. What do I mean by this? This means you are creating a system that helps your customers solve a problem, and then you give it a name.

For example, if you are an accountant you most likely already have a system in place. You have some way of how you help your clients. Now all you need to do is give that system a name.

Maybe you hear of the book “S.P.I.N. Selling”. In this book, the author is teaching how to sell following a certain method. He came up with it and called it SPIN.

Now while there are many people that teach sales, he is the founder of the SPIN sale technology. He stands out from the crowd because nobody else uses this kind of technology.

Maybe what he teaches is very similar to other sales methods. But because of the technology, it is special. You could easily do the same for your superpower when creating a personal brand.

9. Creating a Personal Brand For Your Niche

When it comes to marketing and branding, you don’t want to appeal to everyone. Many people think it’s better for sales to try to relate to everyone, but it’s actually not. Trying to market to everyone is counterproductive. You become too vague and you end up selling to nobody. Why? Because consumers in the marketplace would rather buy from someone who specializes in solving the specific problem they’re looking to solve.

Take a look at your current customers – what kind of professions do they have? If a large chunk of your audience are realtors, start by marketing to realtors. If, however, a large part of your audience are entrepreneurs, market to them. You get the idea.

Nobody goes to get a specific surgery from a general practitioner.

It’s the same when creating a personal brand. Maybe there are several things you are good at. Still, you want to start narrow and very specific. If needed you can always go a bit broader later. As I said, your specific superpower also helps you to be more specific. You aren’t an expert in everything. You are the go-to person for one or two very specialized things.

10. Creating a Personal Brand Based on Your Signature Style

When creating a personal brand, your signature style will play a role, too.

Remember my superheroes analogy? All superheroes have a signature style. They all have a special suit or outfit that they wear when they get into their hero persona. That’s also what I did with my red suit. I wear my red suit for special occasions, like when I’m on stage. People easily remember it and it became part of my personal brand identity.

Your signature style means more than the clothes you wear, though. Your signature style incorporates the color themes you use on Instagram, and the general feelings you evoke with your style. Is it luxurious? Sporty? Intellectual? Adventurous?

Your signature style also is formulated by the way you speak. Are you direct and authoritative? Or are you warm and bubbly? How about humorous and sassy? Choose a way to speak to your audience that matches your signature style and helps solidify it.

Again, you want to make very conscious choices about this. Base it off your unique superpower. I also suggest you make sure that your personal brand is congruent. Congruent in itself and congruent with your personality.

Ready To Supercharge Your Personal Brand?

You’ve probably learned a lot about creating a personal brand by reading this article. However, there is still much, much more to consider when it comes to building a powerful personal brand.

Since you are your personal brand, you should always be working on bettering yourself. If you become better, your personal brand becomes better, too. That’s why I always advocate for the importance of lifelong learning.

If you want to supercharge your personal brand and become a better version of yourself, now is the right time.

To celebrate the Lunar New Year, I’m offering a special discount in the Dan Lok Shop. Buy any two of my courses and get one for free. So, for example, you could get my Personal Branding Secrets, my YouTube Secrets and choose one more course for free. Use this package deal to educate yourself and create an even stronger personal brand.

Check out the special Buy 2 Get 1 Free store-wide discount HERE.

How to Succeed In Business As An Introverted Entrepreneur

February 6, 2020 by Dan Lok

Most people agree that being an extrovert is very helpful when running your own business. It’s usually not difficult to make connections and to build relationships with clients. But what do you do if you are an introverted entrepreneur?

To know if you’re an introvert or extrovert, take this quiz.

Have you ever considered how your personality affects your professional success? Are anxiety and shyness standing in the way of maximizing your potential?

You might find the world of entrepreneurship overwhelming. It requires a lot more interactions with others than you may be comfortable. Perhaps you tend to prefer isolation and working alone. Running a business as an introvert can truly be overwhelming. But are you aware of the advantages of being an introverted entrepreneur?

In this article, we will share with you some of the secrets of succeeding in business as an introverted entrepreneur.

Understanding introversion

Introverts usually enjoy thinking, reading, writing. They get their energy from these introverted activities. Extroverts, however, thrive in larger social activities. Thinking is collective discussion; reading is discussing with others, and writing is sharing with others. Extroverts like to be out and about, socializing, and feeding off the energy of others.

Now that’s a very literal and archaic way to look at it.

Today, we know that there are many levels of introversion. Moreover, most people are neither fully extroverted nor fully introverted. We find ourselves somewhere in between and at times, leaning into one side or another.

Many people, especially entrepreneurs, are inherent introverts but tend to adapt. Over time, they develop more balanced personalities. They become ambiverts and exhibit extroversion and introversion.

Perhaps you scroll down entrepreneurs’ social media accounts, seduced by the images of success on luxury. You may even be thinking, “That could never be me – I am too much in my own head.”

But you are very wrong. You are never too introverted to succeed in business – in fact, you may even have certain advantages.

In order to unlock those potentials, you need to first reflect on what you think a leader should be. Can you be one? Why not? You need to envision yourself as a leader – and then, locate the tools and resources you need to thrive.

To do this, you have to identify your power. Then, use the right tools to turn introversion into a powerful advantage.

And the last thing you should do as an introverted entrepreneur is to try to “overcome” your personality. We cannot outgrow ourselves: we can only become better versions of who we have always been.

If you want to see the aspects of being a natural introvert as unique tools for business success, then read on.

Choose your industry wisely

People like J.K. Rowling, Bill Gates, and Steven Spielberg have one thing in common: introversion. Understanding your personality is actually key to success. It is also necessary for the crucial first step: choosing your industry.

Whatever it is you choose to do, you need to have a passion for. However, passion alone is not enough. To reach the peak of our potentials, we need to seek out an environment that will welcome and nourish us.

Forcing yourself to fit in is going to hold you back and could be a source of anxiety and depression.

The first question you need to ask yourself is what kind of work makes me happy? Once you have an idea of what this might be, you will be able to search for your ideal industry.

But identifying the type of work that makes you happy is not enough. You need to also consider how you want to be working – that is, choose your work environment.

Perhaps you prefer quiet, isolated work environments. You may thrive working from home, which is not the case for many people these days.

Online work is just one of the opportunities for you to pursue. As an entrepreneur, working online means less in-person interaction. You can disconnect at your leisure and recharge as needed. You no longer have to feel anxious about turning inward, overthinking what to say, or silence on a regular basis.

In fact, choosing an industry with an anchor online may allow you to excel. This is why most of Dan Lok’s best copywriting students are introverts – they prefer to work alone and in isolation.

Another common thing is looking into studio work. There are many industries out there – such as music production, curation, or design – that may be perfect for introverts.

Now, your success in the chosen industry depends on maximizing your potential. To do so – you must know where your strengths lie.

Play on your strengths

As an introvert, you likely prioritize time alone and self-reflection. This means you have a deeper sense of self and value self-knowledge.

This is crucial because without self-knowledge, you cannot know your natural strengths. Without playing on those strengths, you are not going to reach the height of your potential. You need to know what your power is, to lead. What are your most important strengths?

You may not even be aware that some of the most successful people you know of are introverts. And you know some of their stories because they are unusual and against the grain. They found their unique strengths and unlocked their true potentials.

You may be asking – how do I know if I have the potential to unlock?

Chances are, you have already been pursuing your strengths – perhaps only quietly and in private. For example, many introverts tend to be dreamers and to place a lot of value on imagination. Their minds are natural storytellers. These introverts tend to have an affinity for writing. They often seek out industries where they can hone their skill – such as copywriting.

This is also why introverts tend to be natural innovators.

They choose to stand apart from society and try something entirely new. But that does not mean they stand alone. They usually seek out like-minded people to be their partners.

Find an extroverted partner

Innovation is always a fusion of some kind. Most times, “the best of two kinds” is joined to create something larger and exciting. It is important to have like-minded people close, but it is crucial that they have a different approach.

Put simply – a balance of introversion and extroversion is key to business success.

Your strengths should be complementary. If you thrive in quiet and isolation, you might want to partner up with someone who enjoys teamwork.

One of the best examples of what happens when this balance is struck may be right under our noses: Apple. Steve Wozniak (an introvert) and Steve Jobs (an extrovert), brought their personalities together and created Apple. Steve Jobs was in charge of marketing. Wozniak focused primarily on product development. One’s extroversion and the other’s introversion made them strong beyond measure.

You and your partner need to not only make use of your own strengths but to also know when to play on the other’s. You will inspire each other to grow and unlock your higher potential.

Once you build trust with your partner, you will want to work together to build a strong network. You will each have to locate and make use of your own unique resources.

Connect to other introverts in your industry

If you find an extroverted partner, you may think that they will be the ones doing most of the outreach and building connections. This thinking may be your downfall.

What you want to do is build a network on your own end. Reach out to other introverted entrepreneurs in your industry.

If you are first starting out, you may be thinking there aren’t many introverts in your industry – wrong. It is less likely you will meet them at social gatherings and see much on their social media. And this is how you know you want to reach out.

The more you’re out of your comfort zone, the more you learn. The more you learn, the more you grow. Share on X

Be confident that using your natural approach is the best way to go. You do not need to try to outspeak somebody else. Chances are, you are a natural listener and a keen observer. This means your approach will appeal to another such individual.

You will be able to make spontaneous connections with other introverts. This is usually because neither of you seeks out external affirmation. This is important in business. It means you are less likely to base your relationships on the competition. Because of this, you each will be able to see the benefits of a friendship without getting into each other’s way. Connections with other introverts will feel natural. They will also inspire and push you.

These connections will also likely be less exhausting. Being an introverted entrepreneur among extroverts can be draining. It is important for introverts to have time for themselves.

Take time to recharge

Have you ever heard the term introvert hangover? Your feeling the need for a time-out from social environments is a very real thing. It is a consequence of social overstimulation.

Your body and mind may be telling you they’ve had enough, and that you need to retreat into yourself to recharge. But being an entrepreneur, you probably often try to “power through” and satisfy other demands before taking time off.

You may not know that recharging actually works. Your mind may be trying to tell you it needs to process information in solitude. Once you got rid of your ‘introvert hangover,’ you will go back to work with a fresh attitude and new ideas, so you are actually gaining and not losing steam.

Down-time does not have to be dull. You may choose to watch educational movies, write in your journal or meditate. You could also learn more about the power of silence and how to amplify your strengths.

Taking the time to recharge means allowing achievements to set in. It also means unlocking more potential. Share on X

As you unwind and reflect, you may also choose to hone your skills.

One skill all introverts should hone

The ability to seal the deal is what makes a good entrepreneur. As an introvert, you are likely able to reach people on a more personal level. simply because you are a listener. And this is invaluable when it comes to closing. To make sure you can unlock your full potential – you should make sure your closing skills are strong.

For many introverts in business, closing is already a strength – you just need to keep nurturing yours. Dan Lok is also an introvert, which is why he put together The Perfect Closing Script. This is like a cheat sheet that you can just keep in front of you during your next sales conversation and allow yourself to thrive in your chosen industry.

Think of this script as a secret weapon for introverts. The more you practice, the more useful a weapon it becomes.

Updated November 4, 2020.

How To Deal With Gold Diggers, Transactional Relationships and Genuine Friendships When You’re Wealthy

February 5, 2020 by Dan Lok

Do you need help dealing with gold diggers? Many wealthy people have unfulfilling relationships with others. Once your wealth reaches a certain level, relationship dynamics often change. That’s just the way it is.

People who didn’t care for you before, will suddenly want to be your friends when you’re rich. Others will ask you for help but never give anything back. And some people you were genuinely friends with before your wealth, will start demanding your help as if they are entitled to it. Conversations will often feel one-sided and people will seem to care more about your money than they care about you.

You won’t know who you can really trust. Are people just nice to you because they hope to get some of your money? Are they gold diggers or genuine friends?

You’ll need to learn strategies on how to spot genuine friendship and genuine relationships. Do it for your own well-being. You don’t want to go about your day mistrusting everyone. That will only cause you more suffering.

It doesn’t really matter if you are male or female. Gold diggers can be either gender. And they don’t only exist in romantic relationships. Gold diggers can also be among your friends.

In this article, I will go over what gold diggers are, how you can spot them, how to deal with them and how to get the kind of genuine relationships you truly want.

So, how can you deal with gold diggers, transactional relationships, and genuine friendship when you’re wealthy?

What Exactly Are Gold Diggers?

Gold diggers are in a relationship for access to someone’s money, rather than for love or genuine friendship. They might feign feelings of love and affection for you, but in truth, they want to benefit from your wealth.

When you withdraw their access to your money, gold diggers have no problem with leaving the relationship. They are extremely materialistic.

Such a relationship will leave both partners unfulfilled in the long run. You might feel like you are giving, giving, giving . . . but getting nothing back. Gold diggers actually suffer, too, because they have to fake their emotions and fake good intentions each and every day.

Remember that gold diggers can be male or female.

If you are a wealthy female, know that a male gold digger might want to get into a relationship with you. Or, other females might try to be your friend or business partner. Often they are very good at disguising their true motivations – so you only notice when it’s too late.

There are certain characteristics that most gold diggers share. If you pay attention, you might be able to spot the gold diggers in your life.

How Can You Spot Gold Diggers?

I believe that the best way to deal with gold diggers is to avoid them as best as you can. If you are observant, you can spot gold diggers and steer clear of them. So what are some common signs that tell you that a person might be a gold digger?

The Way They Speak

Gold diggers will very likely ask a lot of questions about your money and what you own. How much money do you make? Do you own a house? A car? Do you throw parties? They want to know it all.

So when you talk to a person and they ask a lot of questions about your career, your material possessions and your money – rather than asking about you and getting to know you – they might be gold diggers.

If they know you quite well, they will also ask you to loan them money or buy them something. If they are a business partner of yours they might want you to invest in the business more, instead of sharing the costs equally.

Of course, everybody can be in need sometimes, wanting to ask a friend for money. It can happen. But if they rely on you repeatedly without ever paying anything back or thanking you, that’s a sign they might be a gold digger.

The Way They Act

Gold diggers have certain behaviors that you can spot. When it comes to their job, they might work in lower-level positions. But they aren’t working on themselves or furthering their career. Instead, they try to leech off of somebody who is rich already. They don’t have a growth mentality like a rich person has.

Another typical behavior of gold digger is this:

They don’t appreciate small, inexpensive gifts. Nor do they appreciate acts of service (such as making them dinner). This counts especially for people who are already close to you. What they do appreciate, is expensive, material gifts. They feel very entitled to getting big, expensive gifts from you. So if a gold digger was your partner and you get them a box of chocolates or some flowers, for example, they wouldn’t be very happy. They want expensive, materialistic gifts.

If you get them flowers or something smaller they will make you feel guilty. You will hear, “You don’t appreciate me anymore” or similar complaints. So while you want to put a smile on their face with a lovely gift – they don’t appreciate it unless it’s expensive.

In other words, for gold diggers, it’s not the thought that counts. It’s the price tag that counts.

This could leave you feeling hurt or emotionally unbalanced. Because while you truly care about them, they don’t give back, nor do they appreciate your thoughtful gestures if money isn’t involved.

Gold diggers add no real value to your life.

Most gold diggers are well-dressed and stylish. Appearance matters to them – which is a good thing generally – however, this is often a sign that they are quite materialistic. So don’t let their appearance alone lure you into thinking that they are wealthy too.

They Ask You For Money

Another common trait of gold diggers is that they will ask you for money, or often ask you to pick up the bill. They will rely on you lending them your money and never pay it back. They basically use you as a human ATM machine.

The problem is, even if you see through them and you decide not to lend them any money anymore, they have their ways to push you. They even have their ways of subtly manipulating you into spending money on them or giving them money. Especially if they are a loved one who you truly care for. That’s why many wealthy people feel trapped and stay with gold diggers. Even if there is no logical reason for it. It’s more like emotional manipulation. It’s very hard to detect at times.

Gold diggers usually don’t ask you for money once. They want financial support from you again and again. They refuse to do the work themselves and would rather utilize your resources. Some gold diggers will even convince their rich partner to give them an allowance.

The Power of Environment

If you want to spot gold diggers, it’s a good idea to have a look at their friends. How do they behave? Are they gold diggers too? People are often very similar to their friends. That’s why your environment is so important. If all your friends behave a certain way, you will act similar to them. So, if all their friends are gold diggers, they likely will be too.

For you, as a wealthy person, the power of the environment has other consequences. You can’t allow people into your life that tear you down.

Take me as an example. When I was in my teens, I would hang out with the wrong people. My friends weren’t good for me and my teachers and parents got worried that I would turn criminal. So, my parents got me out of it by moving to another city – Vancouver. If I had stayed in the same environment as I had before, I would never be where I am today.

So, I urge you to ask yourself. Do the people you surround yourself further your growth? Or do they only make you feel drained?

Why Are Relationships With Gold Diggers Bad For You?

The problem with relationships with gold diggers is that these toxic relationships will affect your mental health. Some people argue that being in such a relationship isn’t that bad. I like to disagree. Relationships with gold diggers don’t add any value to your life. You are only wasting each other’s time.

Relationships with gold diggers are unhealthy relationships.

Once you are sure that they are only after your money you will feel betrayed. You will be mad at yourself for trusting them. I have seen wealthy people who went as far as hiding their money from their spouse, so they wouldn’t blow it on their next shopping trip. It’s a sad reality for many people.

Would They Stay If You Had No Money?

The final question to ask yourself in order to spot a gold digger in your life is this: would they stay by your side if you had less money or not much money at all? How much does your income matter to them? Is there anything beyond the money that is keeping the relationship together? Do you share the same values? Can you work as a team? Do you enjoy each other’s company? Does this person genuinely like you as a person, on a deeper level?

Really look beyond the surface, to see if they want you because of who you are as a person, or if they’re attracted to your money.

If money is truly the only thing that keeps the relationship alive, then you are in trouble. Even if you hope that they will change and become genuine, know that it's very unlikely. Share on X

How Can You Deal With Gold Diggers in Your Life?

Perhaps you are suspicious that there are some gold diggers in your life. They way they act and talk makes you suspect that they are after your money. You suspect that they don’t even see who you really are as a person, or care.

Now how do you deal with that?

You will be hurt. Especially if you really loved and trusted this person.

You’ll be mad at them for betraying you. And mad at yourself for trusting the wrong person.

But you can get out of this. Becoming successful might mean that some people don’t grow with you. They only drain your energy.

The only way forward is to remove them from your life. Cut ties. Because after all, you want genuine and healthy relationships that fulfill you.

Get Clarity on the Type of Relationships You Want

So if you are suspicious that a person is a gold digger, find clarity on what your relationship with them is like. Do you talk mostly about money? Are they interested in growing as a person? Do they tend to manipulate you, however subtly?

You might want to have a talk with them. But I wouldn’t expect much from it. People rarely change. Most of us only change if we experience a lot of discomforts. Imagine you are sitting in a chair, you won’t move until your position gets uncomfortable. Most people are like that in life.

So, if gold diggers can comfortably live off your money then why should they change? There might be no reason for them to do so.

That’s why in my opinion, the only way to deal with them is to stop seeing them. Instead, get a circle of friends or a relationship where the other person is actually supporting you. Find a relationship where you each value who the other is on a human level, and you are truly able to grow together.

Now you might think, “Trading my resources for their love doesn’t sound that bad.” At least you will always feel loved, right? Let me explain why I think that such relationships don’t work.

Relationships with gold diggers are mostly transactional relationships. What exactly does that mean?

What Are Transactional Relationships?

Transactional relationships are relationships we have out of necessity. It almost feels like the two people are making a trade. Share on X

A common mentality of gold diggers is, “I will make you feel like you are loved and in exchange, you will buy me nice things.” For some people, that works well enough and feels acceptable.

I don’t like transactional relationships because they lack depth. I believe that staying in such a relationship for a long time will take a toll on your mental health. How can you truly feel loved when you know they only stay with you because of your money?

As human beings, we are social animals and we need relationships and human connection. To be truly happy, our relationships need to fulfill us and inspire us. That type of fulfillment is usually not going to occur within transactional relationships. Transactional relationships lack genuine feelings.

I have had to learn this as I became wealthier and more successful. Your relationships are your environment. And your environment is key when it comes to growth or stagnation.

So, in transactional relationships, at least one side expects that they will get something from the other. Real relationships are meaningful because you learn and grow together. These healthy relationships that lead to growth for both people are often referred to as “transformational” relationships rather than transactional relationships.

In a transformational relationship, both sides are open and giving because it just feels right, and they genuinely care about each other’s happiness. These relationships are based on real human connection. You add value to each other’s life but you do it without expecting anything in return. It’s genuine. Doesn’t that sound far more ideal?

How To Find Genuine Relationships

If you want genuine relationships in your life – no matter if it’s a romantic relationship or a genuine friendship – you need one thing. You need to be clear about what you want from the other person.

I recommend making a list of the traits you want the other person to have. For example, you could write down five ‘must-haves’. Those are the qualities that the other person must absolutely fulfill. If they don’t, they aren’t for you. You should also have a list of a few ‘no-goes’. Those are the deal-breakers that you can’t accept in a spouse or friend. For example, a deal-breaker could be smoking, excessive spending, or drinking.

Have that list handy so that you are clear on what you want in a relationship. Then, communicate what’s on that list clearly with the other person. My wife Jennie and I did that. At the beginning of our relationship, we had a long talk and I told her what I need my partner to be like. I decided to tell her clearly and openly, so we wouldn’t waste each other’s time. If she would have said no to these things, at least we would have clarity and could move on. Back then, Jennie didn’t know if she could be that person for me. But she was very grateful that I told her and she tried. Today, Jennie and I are genuine partners in everything in life.

When it comes to genuine friendships, it’s very similar. Have clarity for yourself on what kind of friends you want. If you are an entrepreneur, for example, it’s unlikely that you would want friends that hang out in bars each day. You want friends who are also working on themselves, so that you can motivate each other and grow together. You don’t want friends who are gold diggers who want your money. Find people who are interested in your ideas and will support you instead of trying to benefit from you.

How To Master Your Relationships

I don’t want you to go out and distrust everyone. The point of this article isn’t to have you think that everybody out there is after your money. My goal is to help you see where you maybe had blinders on before.

You might have been so caught up in your relationship that you didn’t fully notice what was going on. You may have missed the signs that someone was a gold digger, and this article helped you see clearly.

Never forget that your environment and the people in your life have a big influence on you.

As a wealthy, successful person, I want you to value yourself and your time, and commit to your health and your success.

On my YouTube channel, I’m continuously giving advice on how to shift your mindset and become an even more successful entrepreneur. What would it mean to you to develop the mindset of a millionaire?

For more free, life-changing advice, subscribe to my free YouTube channel here.

10 Detrimental Mistakes To Avoid When Starting A Business In A Crowded Marketplace

February 3, 2020 by Dan Lok

Have you been making these mistakes when you’re starting a business? It can be overwhelmed in a crowded marketplace. What are the mistakes you can avoid?

Here are 10 detrimental mistakes to avoid when starting a business in a crowded marketplace

The truth is… everyone makes mistakes and it’s obvious that it’s no different for business owners.

Unless your mistakes can turn into huge advantages in your business and life – avoid it when you’re starting a business.

There are many common mistakes and it’s natural getting a little tripped up here and there. But some of these common mistakes are detrimental when you’re starting a business.

It means, it can become costly down the line.

So, it’s better to avoid them at the beginning itself.

With effective planning, you can avoid typical stumbling blocks that may potentially lead to failure.

Starting a business is not a consequence of good genes or being lucky. It can be engineered by following the right methods and strategies – it can be taught.

A crowded marketplace can be overwhelmed, and you’ll sometimes get overconfident with enthusiasm. However, enthusiasm can be both a blessing and a curse when you’re starting a business.

Why? That’s because it drives the passion for your business that can fuel your success – and financially ruin you if don’t think through your decisions.

Here’s a video I want to share with you. About what I learned and some costly mistakes you can avoid.

I’ve started and failed in 13 businesses – lost thousands and millions of dollars. If you don’t navigate those potholes. You’ll most likely won’t see success.

If I could turn back time, I’d do things differently…

10 Detrimental Mistakes To Avoid When Starting A Business

No Goals And Commitment
Avoid Micromanaging When Starting A Business – Delegate
No Understanding Of Marketplace
Not Having The Right Mindset
Technology Ignorance Isn’t Bliss
Starting A Business Without A Plan
Neglect Marketing Investment
Accidentally Create Leverage
Spending Lavishly
Hiring the wrong people

No Goals And Commitment

When you’re aiming in the dark – you can’t hit a target that you can’t see. You’re going to miss 99% of your target.

It’s the same with everything we do in life. Without a clear goal, you won’t have any motivation to improve your business continuously. You drift along and taking things as they come – hoping for the best.

And because you’re not putting in the time, energy and focus into growing your business, eventually it’ll fail.

When starting a business, set a clear goal and commit to making things happen. With that said, be very specific with your goals – not being a generalist.

Instead of saying “I will improve next quarter’s revenue”, say “ I will increase sales by at least 20% each month until the next quarter”.

When you be specific about where you want to go from the beginning, you’ve created a much clearer image in your mind of how to achieve your goals.

On another note, observe your motivation. Because this can lead to emotional baggage and this baggage slows us down and hinders our growth.

Not only you’re going to miss most of your target. What’s worse is you’re also stuck in this vicious cycle of emotional baggage.

Or maybe the regrets you have will demotivate you to achieve your goals.

Avoid Micromanaging When Starting A Business- Delegate

Delegating is a powerful tool when starting a business. But you must know when to spend your money before you create your high-performance team.

There’s sometimes a lack of self-awareness when starting a business. Some business owners in the early stage are not great at delegating work to their team members.

So, if you’re not good at certain things, avoid doing everything just because you want to cut costs.

Focused on your strength in specific work tasks and delegate the rest will help in the long run.

While most employees don’t appreciate being micromanaged – as a business owner, when stating a business – curb this behavior before it leads to negative effects.

Here are some pointers on how to let go:

Reflect on your behavior. Most likely it’s because of some insecurity – if your team doesn’t perform exactly the way you wanted – you’re afraid it’ll reflect badly on you.
Prioritize what matters and what doesn’t. Regardless of how important the task is – you can’t do that if you want to control everything. Avoid being a control freak. Create a To-Do list and start determining what work is critical and delegate those that are less important. For example, strategic planning vs presentation.
Talk to your team. Once you’ve determined the importance – the next step is communication. Have a conversation with your team about what really matters to you and how you want to be kept in the loop.
Built trust. Have a pep talk with your team members. Because they’re used to you not trusting them, they might come to you for approval on each and every project. So, give your team members the psychological power to lead. Show them you trust and have faith in their abilities.

Editorial Credit: Stephane Bidouze / Shutterstock.com

No Understanding Of Marketplace

Most Entrepreneurs are an expert in their own product or services. When we talk about the marketplace – it can be billions and billions of people but with your product – will the majority pay for your product or service?

Exactly – NO! Not everyone will pay. So how exactly can you understand the marketplace or at least understand your market?

That means If you have a certain product or service, where and what types of customers will pay for it.

When you understand your marketplace or customers – not only it’ll increase your sales, but also increase your chances of attracting the kind of customers you want Share on X

Do you see what I mean?

And sometimes, you come out with a new product or service. With that said, testing your product is critical to your success or failure – your product-market fit can be tested in small ways.

Why do you need to test it?

Because a product that works for you may not work for others.

So, by testing it in smaller ways can help you save time and money. At the same time, you are generating feedback and answers to your growth success.

Only then, you will understand your marketplace and customers better.

Maybe you need to modify and fine-tune your product according to your feedback…

Or perhaps, you need to remove some funky and complicated product or service that initially you thought it was cool to combine – but not in the eyes of the marketplace.

So, when starting a business… and to avoid these detrimental mistakes.

You need to make sure what works best for your clients. And this is one of the main factors most online entrepreneur/s fail to succeed

Watch this video on how to choose your niche and target market.

Not Having The Right Mindset

Do you have confidence in yourself? Or confidence in your product or service…

Don’t expect customers to show up at your doorstep or website to buy from you.

You need to put yourself out there by branding your business, marketing your offers and networking.

I know many brilliant business owners with exceptional product or service – but lacking in confidence.

You see, starting a business is no easy task…

You need to have the right mindset even before you start a business. If you’re lacking confidence, you need to learn how to be more confident.

So, what do I mean by not having the right mindset?

Is it the level of confidence or having a combination of mindset which includes leveraging your money mindset to create more money?

When we portray confidence in anything we do... that’s a positive mindset Share on X

It’ll constantly motivate you towards success. And leveraging money mindset is like, instead of having a saving mindset and trying to salvage every dollar – focus on making more money with your money.

Now, does that make sense?

When you’re starting a business, think of how you can use your mind to create wealth – use the money you currently have to help you generate more money.

With that said… doesn’t mean that you need to spend every single penny on marketing or product development.

Plan according to your goals and commitment and then take massive action Share on X

Develop a millionaire’s mindset and be a “Doer” instead of a “Talker”. Most unsuccessful people like to talk about things and tend to have a lot of opinions.

They dwell and complain about their struggles and problems.

So, if you’re reading this article right now…

I know you are a “Doer”. You want to avoid mistakes when starting a business.

You want to achieve your goals and generate results.

Technology Ignorance Isn’t Bliss

The digital landscape is rapidly growing and constantly evolving. As a business owner, if you don’t leverage the current technology in your business, you’re considered as laid back.

If you’re a young entrepreneur just starting a business…

Here’s a question you might be asking; How can I use technology in my business?

Simple!

I spoke about micromanagement earlier, about delegating certain things and avoid doing everything by yourself.

You see, tasks like data entry, posting updates and generating leads on your website can be delegated and those are all the things that can be done with technology.

It’ll save you hours on trivial tasks if you know how to leverage it. This useful tool gives you the time and freedom to attend to more important matters in your business.

If you don’t want your competitors to run you out of business – find the time to learn how to leverage technology Share on X

Now, this is where the mindset comes in…

If you’ve been a stubborn business owner and refuse to learn, you’ll most likely lose out to your competitors and more likely to see failure instead of success.

Don’t adopt the old school traditional mindset, it’s one of the deadliest mistakes business owners make – especially if you’re starting a business.

Starting A Business Without A Plan

A business plan is your roadmap to success!

Although it could evolve as you go along. But when you’re starting a business – a proper business plan leads you on the course with a structured approach.

You can document your business thoughts and ideas you want and need to accomplish. And then, formulate a strategy and tactics for how you plan to get there.

Successful Start-up entrepreneurs are often those who have strategies in placed to deal with challenges as they occur Share on X

While being flexible and adaptable to the changes in today’s marketplace – you can’t sidestep planning if want to succeed.

While the mindset plays the biggest role in our life – exercising self-control to avoid these mistakes when starting a business – doesn’t mean you need to re-consider your whole idea of having your own business.

The thing about having your own business is, it requires both patience and passion.

This may sound troublesome to some business owners. But my point is…

If you could avoid these detrimental mistakes with proven strategies, wouldn’t you make use of that opportunity?

Neglect Marketing Investment

If you have a mindset of, “I’m already doing well, I don’t need to invest in any marketing” but you expect to increase your revenue…

You’re most likely won’t be successful forever.

Most business owners who are already successful have this mindset.

You see, the thing is…

You’re going to slowly lag if you’re aren’t bringing in new business – especially from today’s competitive marketplace.

In one of my recent articles, I spoke about “The Future Of Marketing Automation” and in one of the sections in that article, customers want a more satisfying journey when they are searching for a particular product or service.

To survive and thrive in the future of marketing – you don’t want to neglect marketing investment when you’re starting a business Share on X

On top of that, people are talking about customer experience (CX). Research from PWC said, 86% of buyers are willing to pay more for GREATER customer experience.

So, if you neglect your marketing investment – you’re likely to lose out a lot.

Now, as you already know, in this new decade, we’re all moving towards “Digital”. And with all the variety of technology tools available, you can always start with some free marketing tools to help you grow.

By doing that, you can maximize your return on investment (ROI).

So, don’t neglect it – thinking you’re already successful and don’t need any investment in your marketing.

Accidentally Create Leverage

Who owns your company’s intellectual property (IP)? This includes the brand name, designs, domains, and technology. Ensuring vital IP owned by the company is critical.

Because, in the event of a dispute between two partners, and If one partner owns the domain names personally – this means he or she has not assigned the right to any intellectual property.

Now, what does this mean when someone has not assigned any IP rights?

It means, they can leverage in any negotiation.

Here’s the thing I don’t want you to miss…

When registering domain names and assets in the name of the company – it’s straightforward.

But… when it comes to Intellectual creation, you need to understand the most important point.

For example, when an employee of your company creates a logo, it means, it’s owned and assigned by the company.

However, if it’s being created by a freelancer – it needs to be assigned in writing.

Now, you don’t actually need to engage a lawyer to do this. There are plenty of standard intellectual property documents online where you can get your team to prepare.

This might be one of the biggest mistakes for young entrepreneurs.

That’s why it’s crucial to know what are the mistakes to avoid when starting a business.

Spending Lavishly

Your first-quarter sales were good – business is going well. Second-quarter was even better and now you have some extra cash to splurge.

Typically, most of us would make a few purchases to help with future scaling.

Investing in new software, doubling your ad spend, redesigned a new company logo, or maybe a small renovation for the office.

What happens if the following month, your projected revenue isn’t as much as what you’d expect?

All of a sudden – you find yourself in debt.

You’ve spent too much money too soon on unnecessary things. And these things can turn your business profits into additional business expenses.

On top of that, you are not in a position to utilize them yet.

So, before you spend lavishly on unnecessary things, ask yourself this: “ Is this important and going to be used immediately to grow your business?”

And by asking yourself certain questions, not only it helps you avoid crucial mistakes, but to also make a decision to achieve your goals faster.

Hiring The Wrong People

Hiring the wrong people is like having a bad team. If you select the wrong people to be on board, not only you’ve made a mistake. But also closer to failure than you know it.

When you have the wrong people on your team, it harms your business reputation Share on X

Before you hire anyone – think about what that person is like. If it’s possible, find out about their goals, beliefs, and mindset. This is crucial because it has to be aligned with your vision and mission.

Let’s take a salesperson for an example. Many companies hire salespeople because they want to generate more revenue. However, a salesperson, they only look at their own income and sales quota.

They don’t care about things like integrity and morals…

With that said, at the beginning of their career, they might bring in more sales but subsequent months, their sales get lower and lower.

This is because most salespeople are not properly trained. Instead of building a long-term relationship with your customers – they resort to being a slimy salesperson with pushy tactics.

As a result, you’ll only get a “one-time purchase” from your customers. What’s worse?

You spend years generating and nurturing leads…

And because you hire the wrong people, your customers lose trust in the company and they go to your competitors.

So, to see success faster, create a high-performance team that’s aligned with your goals.

Want To Scale Your Coaching Business?

So, is it time to scale your business? – Especially for coaches and consultants.

As your business grows – knowing when to hire, when to automate the tedious process, strategizing techniques and tactics effectively is crucial when starting a business.

I said this in the beginning – you can avoid typical stumbling blocks that may potentially lead to failure.

I’ve started and failed 13 businesses – I have seen startup companies moving too fast without proper planning and crumbled before they can achieve their goals…

The thing is, all this can be avoided.

Why would you create a new success strategy when there are already several proven strategies?

Discover the method and strategies that you can use to scale your coaching business online.

You see, I knew little to nothing about starting a business. This was when I was younger. I was heavily in debt and failed 13 businesses.

Today, you can discover the method I used to scale my coaching business from zero to $1,000,000 a month in less than 8 months…

Now you must be thinking what did I do to achieve that?

Well, it’s by doing the opposite of every other coach! Get your resources here and maximize your “Personal Media Platform”.

Call To Action

If you want to avoid these mistakes, subscribe to my private mailing list and get your personal copy of videos and guide on how you can use our system and strategies to grow your coaching business too. You’ll also get my free eBook and you’ll never miss any valuable life hacks.

Click here to subscribe right now!

5 Crucial Things To Look For Before You Invest In Startups

February 3, 2020 by Dan Lok

Are you looking to invest in startups but you aren’t sure what to look for? How do you determine if a startup is a good investment idea? How do you know it’s the right thing for you?

When you want to invest in startups there are plenty to choose from. Almost all startups need money. That’s why it looks like a promising investment sector too many.

It seems so easy, find a startup. Invest your money. Watch them grow and multiply your money. But, in reality, it isn’t quite that easy.

Not every startup will be the next Uber. Not every startup succeeds and grows rapidly. Often it’s hard to tell if their product and offer are any good.

That’s a problem because if you are investing in a startup you want to make sure it pays off. You want to get returns on your investment sooner or later. Investing in the wrong startup can be a risk.

And there are also other factors you have to consider before you put your money into anything. So before you go ahead and invests your money into a startup, check for these 5 crucial things first.

1. Is There A Hungry Market for Their Product?

Before you invest in startups you want to make sure there is an actual market for their product or service.

Let’s imagine you can choose between startups. One has an advantage in capital, on has the best product or service, another one has the best team. Or maybe they have the perfect timing or the latest technology. Which one would you choose?

If I would invest in a startup I would always choose one thing: A hungry market. I would choose that every. single. time. Share on X

Their product or service might change, but a hungry market will always buy from them.

So many startups fail because they focus so much on their product or service. But they completely forget about their customers. They focus more on their own needs than on the needs of the marketplace.

They put all this effort into building the perfect product…that nobody wants. Instead of their product, look at their offer. What is the irresistible offer that they bring to the marketplace?

An offer contains their product plus the value. If the perceived value is high enough people will want to by. You can imagine the offer almost like a bait. Like if you go fishing, you want to choose the right bait. So the fish would actually bite. Using a stone as a bait won’t do you any good. You have to understand what they want.

Why Is The Market So Important?

So many startups make one mistake. They offer what they think the market wants. Instead of finding out what the market actually wants.

You only want to invest in startups that actually have an irresistible offer of some kind. It should be more than a crazy idea in their mind.

Save yourself from investing in startups that spend years on things that nobody wants to buy. As sad as it is, that happens too often. 8 out of 10 businesses fail after 20 years. Half a million businesses are created every month. 30% of those go out of business within two years.

What to Look for in a Market?

You also want to check how big the market is before you invest in startups.

Is it a very local market only in the direct neighborhood? Or is the market the whole world?

Don’t get me wrong the market doesn’t have to be huge for them to be successful. But it has to be some good size so they can expand later. Simply put, is the market big enough so their offer is scalable? What are the chances of this offer getting bought now and also in the future?

And finally, when it comes to invest in startups, there is one more thing about the market. How saturated is it? Are they targeting an existing market with lots of competition? Or a completely new one?

What if their chosen market is very competitive? Do they have a defining factor that makes them different? How is their solution different from existing ones and is there a market that needs that? There is also the question of how powerful their competition is.

I once had a guy tell me he wants to start a coffee company and compete with Starbucks. How can a small startup compete with a huge chain?

Of course, the founders are very passionate about their ideas. But you have to stay cool and check if their business actually makes sense.

What to do if you invest in startups that market to a completely new market? You have to make very educated guesses if it is possible. Will the market be big enough? Is the crowd hungry for this?

2. Do They Have Some Money Already?

When you invest in startups, you don’t want them to fully rely on only your money.

If they can only start out because of your investment, that’s actually very dangerous. If they need your money so urgently, the founders aren’t entrepreneurs yet.

Making money from business takes time and effort. If they expect to find one single investor (you) and suddenly make all the money…they don’t understand what it means to have a business.

Building up a successful business needs time, effort and money. You don’t create a startup because you want to work less and hate your job. If you do that, your business will fail.

That’s why I advise all my students to take care of their cash flow needs first. First, they need a stable income. Only then they should even think about becoming an entrepreneur.

So, if you want to invest in startups what out. Pick those that have a great work ethic and are resourceful enough to generate money – before they are looking for investors.

There is nothing wrong with looking for investors, but it can’t be their income stream.

How resourceful are they?

Their resourcefulness to getting money shows you what they are willing to do in order to succeed. Do they tilt because an idea didn’t work? Or are they looking for solutions and create results?

Believe it or not, there are startup founders that only want to put their money in after the startup has reached in size. They don’t have any skin in the game. Rather, they try to build their business and get wealthy by a miracle.

They have this idea and think it will make them rich. But a business without money is just an idea…it’s not even a startup.

So don’t get swooned owner by fancy looking business plan and market analysis. Those are great things to have but if there is no starting capital, how will they succeed?

I’m very careful about such things. You don’t want them to run off with your money. You want to invest in startups that are resourceful enough to have some money already. Your investment might help them to get more scale.

Being resourceful also means they don’t lose hope after hearing no several times. They have the stamina to go on because they know there is a demand for their product or service.

3. Are Their Team Members Complementing Each Other?

The next crucial thing you want to look for before you invest in a startup is their team.

Before the investment, you will likely get in contact with the founders of the startup. You will discuss the strategy, business plan and other things.

But I highly advise you to also have a look at their team. Who else is working on the startup? What skills do they bring to the table? And, likely most important, how do the founders lead their team?

Are their skills working together? Do the founders mentor the teammates? Do they really have successful chemistry?

All these are pointers to look out for. The team is an important metric to measure the success of a startup.

But, you only want to look at this, after you’ve checked the market! Again, the best team in the world won’t help, if there is no hungry market for the product.

If they have the market and a great team, those are good signs to invest in startups.

Some startups have quite small teams because they are saving on costs this way. But they absolutely need people in all the key positions, so the whole business can actually run.

What Does a Great Team Look Like?

Their team has to be able to execute. Too many founders try to get everything done themselves and give no trust to their team. Instead of delegating they work tons of hours to get everything done.

When really, all their team members should be experts in their field and get the job done themselves. They should also have some operating systems in place already. That shows they are serious about this business. Do the founders have the vision while the team is taking big parts in executing that vision?

Another very important thing: don’t invest in startups that don’t have an expert on their niche on their team. Let’s say the startup is a lead generation agency. But nobody on the team ever worked with lead generation. All they do is guessing how it works…How likely will that team succeed?

A well-built team should have the skills that the founders lack. They are balancing each other’s strengths and weaknesses. You don’t want to invest in a startup where all team members have the same skills. It means they have huge weaknesses too.

4. Did They Create Results Already?

This is another great point to look into before you invest in startups. Did they already get in contact with their market somehow?

Are the customers already engaging in with the product? Maybe there were some test runs and the testers are giving feedback. Or maybe the founders did a survey of what customers expect a certain product to do.

Looking at this shows you how serious the founders are. Do they just have ideas or are they willing to execute? Are they still working on the basic concept or are they already developing tangible results?

Are they committed to making this happen and work out for them? Or is it just an idea and if it doesn’t work they jump onto the next idea?

If you get in contact with them and they want to win you over as an investor,

watch out if they can present any real data. Does the data support their idea? These early calculations are a great proof of concept.

So what does a promising startup look like? They have a hungry market and some data collected already. If they have the data but the market is non-existent or too small you don’t want to put your money there.

When it comes to data, also make sure that their measuring is actually realistic. Some startups run into the trap of measuring too much. Or the use numbers too early. While data is important, it’s not the only factor that determines their success (and as a result the success of your investment).

How do Others React to their Idea?

A great way to see if the startup’s offer creates the desired results is this:

Show it to strangers on the street and see their reaction.

If they say “ok, yeah that’s good” then the idea actually isn’t good! You want them to go “wow this is great, where do I buy.”

If the offer can’t win over people, it won’t stand a chance in the marketplace.

4. Are You Actually Ready?

The final thing you want to consider before you invest in startups is a little bit different.

It’s less about the startup, the founders, the product or even the market…

It is about you. Are you actually ready to invest in startups?

To invest in startups might sound like a good idea but it’s only one investment type of many, many more. So, ask yourself why you want to invest in startups. Share on X

Are you actually passionate about startups? Are you an expert on the field? Or did you just hear about other people who successfully invested in startups? Are you looking for a quick way to get rich?

The problem with that is that, if you suddenly jump into investments without knowing anything about it, you are taking huge risks.

You risk making a mistake and losing all your hard-earned money. I’m not saying investments are a bad thing…I’m saying investment without knowledge is not a very smart thing to do.

See, wealthy people, invest in what they understand. And they have their ways of checking and evaluating if an investment is a good idea.

If you don’t know how to successfully invest in startups – and only do it because it worked for others – reading a few blog posts about it won’t help you much. So what should you do?

How To Prepare Yourself for Any Investment

Before you invest in startups – or do any other investment really – you want to do a few things.

First, you can’t invest if your daily cash flow needs aren’t met. Meaning, if you don’t have enough money to pay your bills, you aren’t in a position to go out there and start investing. Raise your income first (have a look hat I teach about high-income skills).

Now you want to be in a position where you can invest at least a few hundred bucks. And lastly, really understand which investment type suits for you. What do you really like? Is it really startups? Or stocks, or real estate?

I personally love two types of investments. Investing in myself and real estate. Why? Because I understand it. I would never advise anyone to invest in something they don’t understand.

What if I told you there is a chance to learn the investment strategies of the rich?

My fans and students kept asking me about investments. When to do it, how to do it right and so on. Exactly for that reason, I’m offering a once in a lifetime event. What is it about? It’s called “Secrets Of The Rich” and it will take place from February 23rd to 24th.

The rich have these crazy strategies that give them stable returns – sometimes up to 24%. Those investments are low-risk and high-return. But you can’t find it in any book and it’s not taught at seminars. At least until now.

The event is really a once in a lifetime chance. It’s unlikely that it will ever be repeated. If you want to educate yourself on investing as the rich do, this is your chance.

Unfortunately, the event is now sold out. But I have a special offer for you. You can get lifestream access that comes with a full recording too. This way you can learn the investment strategies of the rich, even if you missed out on the seats.

Check out the details HERE.