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How To achieve Financial Freedom: Does It Really Matter What Business You’re In?

This week on the blog Joe takes a look at how to achieve financial freedom, what it means and how to realise it through building a successful business.

Given the nature of business I’ve chosen to be in, I see people in business from a financial perspective every single day. Some of them are financially successful, some of them are not. Some of them have figured out how to achieve financial freedom and some of them have not.

And something is strange about all of that because it seems to me the type of business or the market doesn’t appear to be a relevant factor in their apparent success or failure.

Here’s what I mean…

Firstly, it’s good to realise that success is relative. Everyone want’s to figure out how to achieve financial freedom but the route is different for everyone. We’ll leave the numbers aside here, because it’s the same feeling of freedom everyone is after not the same number.

Many commentators would suggest that when opening a new business you must have the right skills, build a good brand, market yourself effectively, choose the right location and so on.

And that’s fair enough, but I’ve witnessed business succeed where these things were not given a primary position. I’ve seen businesses where success just seems to follow them.

Here’s a hypothetical example;

Let’s take two florists – Both are skilled and proficient at their craft and both decide to open a flower shop in a busy area. One is successful, but the other is not and has to close down in the first year.

They both know their stuff, they both have access to lots of people, they both secured a startup loan from the bank, they both built a website and marketed their business well.

All other things being equal, one succeeds and the other fails.

Why is that?

Here’s another example (a real life one!)…

You might see a new coffee shop opening right next door to an existing coffee shop in a not so busy area. Some might say that’s a crazy move, there’s not enough business for both. But that second coffee shop is thriving two years on.

Some businesses defy popular business advice and succeed despite what is accepted as good business practice, others follow good business practice and fail.

So there’s got to be something else at work.

The Factor That Determines Financial Freedom & Success

There are lots of processes that you can follow that can help you figure out how to achieve financial freedom and success in your business, and I would encourage you to adopt those processes.

In our 11 Secrets To Achieving Financial Freedom eBook, we suggest that financial freedom is having the financial resources to choose to live your life without constraints or the need for assistance from others and we offer you a system of processes to help make that happen.

However, I believe from working with many many business people and witnessing all levels of success and failure over the years, something else needs to be in place first.

Let’s take a look at the real life example of the coffee shop. Here’s a few facts;

  • They are based in a location close to Dublin City where there would be footfall but not too much.
  • They opened right next door to an existing coffee shop.
  • They charged 50¢ more for a cup of coffee than they guys next door
  • They didn’t do food to begin with, just scones and pastries. The other guys did full breakfast and lunches etc
  • They had very little sit-in facilities

If you were to look at these factors you might be forgiven for advising these guys to rethink their business plan. But two years later they are still there and doing very well by all accounts.

Now, it’s likely that they haven’t figured out how to achieve financial freedom yet, but they are mixing things up and they are certainly on their way. They are building a good reputation, a strong brand and becoming well known.

They are succeeding.

State Of Mind: The Secret To Financial Freedom & Success.

The fundamental element in the success of that coffee shop or any business is the state of mind, the focus, determination, positive expectation and willingness to do whatever it takes to succeed on the part of the owners.

A predominant focus on what could go wrong, the possible pitfalls and a fear of failure is bound to bring failure. How could any business owner possibly succeed when they choose to focus on negative outcomes?

It’s just not possible to achieve a positive result from a negative journey and therefore the most important work for us business owners in the pursuit of business success and financial freedom, is on ourselves.

The primary, most fundamental process is a mental one. It is a process of working ourselves into such a positive expectation that no other result is possible.

Regardless of circumstances we’ve got to see ourselves in a positive light when thousands of others do not. For some of us it’s automatic, but for most of us we need to work to develop this mindset.

From the outside looking in at our coffee shop friends, it’s clear that they were focused. They are young, maybe late twenties and so experience was limited. But they knew something. They knew enough to launch their idea and to make it a success.

But how could they know?

The answer is they managed to know without having the experience and that’s the key. They chose to focus on making their dream come true and together they made it happen.

They have a great brand, The shop is clean and their processes are sharp. They are friendly and nice to deal with. Their product is good and the entire experience is very different from the guy next door.

They are selling a positive experience and it’s one that locals have chosen to be a part of. For a while it was just an idea but they created it and made it happen. Without positive expectation that simply would not have been possible.

Everything else came as a result.

I buy coffee from that coffee shop any time I’m in the area and on one recent occasion, close to their second anniversary of their opening, I asked them were they not concerned about their competition next door.

The guy’s answer was simple;

“He’s got his customers and we’ve got ours”.

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