Would you like to know how the cockroach startup mindset can help increase your profits?
To answer a question with a question, are you wondering what a cockroach startup mindset is?
Look no further than the titans of business. Some of these titans of business began with a cockroach startup mindset. It was the mindset that defied the odds for these Titans to dominate and win.
A quick story.
I started my eLearning company Embanet right out of school with no money, experience, or team. Embanet had no business being in business, and it showed.
My new best friend was a failure, as I failed every day. My grit and passion kept me in the game long enough to experience success. Leading the charge was the cockroach startup mindset.
With success came an unsolicited 7-figure offer. I said “no” to the 7-figure offer and “yes” to mastering the art and science of a liquidity event.
The cockroach startup mindset helped me create a system for my liquidity event. Two years later, I said “yes” to a 9-figure offer from a different buyer.
Along the way, Embanet achieved results that were otherwise thought to be impossible.
Today I pay it forward and help business owners grow their profits while preparing for an exit. The magic happens by leveraging the same system I created for my exit.
Would you like to learn the cockroach startup mindset and how to leverage it?
Please keep reading.
What Is The Cockroach Startup Mindset?
A company that cannot self-correct cannot thrive – Carol Dweck
Would you like to know how the cockroach startup mindset can help increase your profits?
To answer a question with a question, are you wondering what a cockroach startup mindset is?
Look no further than the titans of business. Some of these titans of business began with a cockroach startup mindset. It was the mindset that defied the odds for these Titans to dominate and win.
Read “Cockroach Startups: What You Need To Know To Succeed And Prosper.”
A quick story.
I started my eLearning company Embanet right out of school with no money, experience, or team. Embanet had no business being in business, and it showed.
My new best friend was a failure as I failed all day, every day. My grit and passion kept me in the game long enough to experience success. Leading the charge was the cockroach startup mindset.
With success came an unsolicited 7-figure offer. I said “no” to the 7-figure offer and “yes” to mastering the art and science of a liquidity event.
The cockroach startup mindset helped me create a system for my liquidity event. Two years later, I said “yes” to a 9-figure offer from a different buyer.
Along the way, Embanet achieved results that were otherwise thought to be impossible.
Today I pay it forward and help business owners grow their profits while preparing for an exit. The magic happens by leveraging the same system I created for my exit.
Would you like to learn the cockroach startup mindset and how to leverage it?
Please keep reading.
Why The Cockroach Startup Mindset Is Your Rocket Fuel For Profits
Your profits reflect the success of your customers – Ron Kaufman
The cockroach startup mindset is to do whatever it takes to live another day.
Businesses fail not from a lack of money but from running out of time.
Read “Revealed The Mindset Of Successful People That Will Make You Rich.”
My eLearning startup Embanet, which later had the 9-figure deal, provides many examples.
Embanet had two types of competitors. Established competitors and competitors with many zeroes in the bank.
The established competitors were brilliant but had one chink in the armor: complacency. Established competitors stopped innovating and relied on their reputations.
Newer competitors, backed by private equity, bragged about their burn rate. Often activity blurs progress.
It’s the same competitors who took on clients with business models that made no sense. Lavish offices and filled with too many employees and generous expense accounts. Full-page ads in the industry rags were all the rage.
Contrast the above two scenarios with Embanet and its cockroach startup mindset. Embanet’s offices were clean but cramped. Hiring happened as needed and after much discussion. To borrow an expression from a friend, business happened one handshake at a time.
Embanet was neither lazy nor lavish. Doing either of these activities would put Embanet out of business. Instead, Embanet was hungry and had something to prove.
Automation helped keep a headcount down and saved money. Experimentation led the way. Embanet’s so-called failures led to massive breakthroughs.
One Embanet employee was doing the work of 2.6 of its competitors. Profits soared. Embanet was the epitome of a rich and thriving culture.
What did the cockroach startup mindset create for Embanet?
Please keep reading.
Why Resilience Trumps Resources And Unlocks Massive Profits And Success
Resilience trumps resources – Jeffrey Feldberg
After my 9-figure liquidity event, a client asked an interesting question. The client asked, “How successful would you be without bootstrapping?”
The answer is counter-intuitive. If Embanet didn’t bootstrap, there would not have been a 9-figure deal.
Bootstrapping has downsides. Growth is slower, and there are money pressures. But combining bootstrapping with the cockroach startup mindset creates resilience.
Read “Why Bootstrapping Your Business Is The Most Important Thing You Can Do.”
The culture at Embanet was all about resilience. Resilience had the Embanet team think like owners instead of employees. Before any decision, the team asked:
What’s the return on investment, and will Embanet live another day?
As a result, the team said “no” countless times. Even when the answer was “yes,” the team explored how to get the most from the money spent.
For example, Embanet excelled at having its clients’ eLearning programs profitable. Embanet’s 24/7 technical support was legendary through high student retention rates.
The need for technical support is highest at the start of a new semester. Phone calls and emails flood in around the clock. The problem with hiring many employees is that they aren’t needed year-round. Costs escalate from training, management, and infrastructure.
Resilience had the team create “Embanet Reserves.” The idea for Embanet Reserves took its lead from the US Army. During the busy season, former support members helped answer calls and emails.
A win-win occurred. Embanet saved money by not needing to hire and train. Faculty and students received world-class support. Being on the front lines, Embanet Reserves saw where our service could improve.
Innovation, efficiency, and world-class service were the result.
Resilience trumps resources. All day. Every day.
How To Thrive Through Change
Change your thoughts and you change your world – Norman Vincent Peale
It’s ironic that within success today are the seeds of failure tomorrow.
Countless Titans of business are no more. Blockbuster, Kodak, and My Space are a few of many examples.
In the Deep Wealth 9-step Roadmap is Step 1 Big Picture. Through Step 1, you’re looking for inflection points, otherwise known as blind spots.
Read “Why You Need To Create Market Disruption To Lead, Succeed, And Prosper.”
An inflection point missed puts you out of business. Leveraging an inflection point puts you out of business to go into a bigger business.
The cockroach startup mindset through company culture is the answer. The team always looks for new opportunities, never resting on yesterday’s success.
A quick story.
Leveraging the Deep Wealth 9-Step Roadmap, we came upon an inflection point. Online programs began to have lower enrollments as competition increased through technology.
Embanet picked up on the inflection point and created “Embanet 2.” Whereas Embanet 1 kept the seats filled, Embanet 2 filled the seats.
Before Embanet 2, the only marketing Embanet did was for itself. Through Embanet 2, Embanet became an all-inclusive solution. Embanet 2 filled the seats and kept them filled. While we were at it, we changed our business model.
As a result, Embanet’s growth sky-rocketed, as did profits. Had Embanet overlooked the inflection point, it would have gone out of business.
The only thing constant is change. The cockroach startup mindset is the game changer.
The Cockroach Startup Mindset Success Formula
Remember, slow and steady wins the race – Ieyasu Tokugawa
There are three pillars to the cockroach startup mindset.
First, play the long game through sustainable growth. Cash flow and expenses are front and center. The cockroach startup mindset has you say “no” more than “yes” to initiatives.
Saying “yes,” welcomes the second pillar, resiliency. Being resilient is how the company spends its time, and capital is essential. A culture based on creativity and frugality wins the day.
Read “Want Honest Advice? You Are Not Ready To Sell Your Business.”
Here’s one of many examples. Embanet’s first office was in a medical building. The back story is that my father’s pharmacy operated out of the medical building. I worked in my father’s pharmacy in high school and knew the building well. The building always had a vacant doctor’s office.
As a board member, my father shared my proposal to rent office space. The board accepted my proposal for $500 per month with a 30-day notice.
My proposal was low-risk and a high-reward for all involved. With our below-market monthly rent of $500, Embanet saved $2,500 each month.
The third pillar, profits, build off sustainable growth and resilience synergies. Profitability, in turn, ensures the company lives another day.
Every $1 of revenue Embanet earned had a net profit of $0.53. From a profit perspective, Embanet was up to three times larger than the competition. Our focus was not on being the biggest company but the most profitable.
Embanet 2, for example, came from patience, resilience, and long-term vision. Embanet 2 created a market disruption that renewed the cycle while catapulting profits.
Conclusion
The cockroach startup mindset ensures resiliency, frugality, and leveraging changes in the market. Inflection points become your new best friend through a change in the marketplace.
Most companies, including your competitors, are happy with a 10% year-over-year growth. The cockroach startup mindset has you focused on 10X growth and higher. As a result, you’re in a league of your own.
Embanet’s secret formula is what we now call the Deep Wealth 9-step Roadmap. Each of the steps focuses on resiliency, frugality, and leveraging change. As a bonus, while you grow profits, you’re also prepared for a future liquidity event.
Keep your thriving and profitable business forever, or sell it tomorrow. The point is you have a choice, and both are great choices.
What do you do, and where do you start?
Ask yourself three questions:
First, are you playing the long game, and if not, how can you change?
Second, is finding and leveraging inflection points baked into your culture? If not, what must change in your culture?
Third, what needs to happen to put yourself out of business to go into a bigger business?
The intersection of the art and science of business is where success happens. The cockroach startup mindset and the Deep Wealth 9-step Roadmap unlock massive success. You not only survive, but you thrive and prosper.
You can do it. I know you can.
Here’s to you and your success!
Jeffrey Feldberg
Do you want to unlock your financial freedom? Learn how to grow your business and, at the same time, prepare for a future liquidity event. Master the same system I created for my 9-figure liquidity event. Visit www.deepwealth.com/success to learn more.
Today, Feldberg's passion is helping you extract your deep wealth. The 90-day Deep Wealth Mastery program helps create a solid foundation for three areas: increasing profits to enterprise value and optimizing post-exit life. Deep Wealth Mastery offers strategies and insights drawn from Feldberg's rich experience. The strategies from the trenches get results. Jeffrey's vision is to increase the social fabric of society one entrepreneur at a time.
Learn more through https://iapdw.com/prosper
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