What if you could discover something lacking in your business that – once added- would immediately increase your profits?
Would you be interested?
It’s a way of analyzing your biz that you’ve probably never seen before.
Yesterday I talked about the nonsense of being a ‘clueless’ business owner. I talked about competence and confidence in business.
Today I recommend you measure your own confidence and competence [in the context of your daily work].
Because if you strike the right balance of both, you’ll make the most money. You’ll reap the biggest rewards.
Low Confidence & Low Competence
The worst place to be. If you have neither confidence, nor competence, you’ll have a hard time building a profitable and sustainable business.
Interestingly, being low on confidence and competence is a natural starting point whenever you do something new. From here move on to building competence.
High Confidence & Low Competence
The most dangerous place to be – for yourself and for your clients. People who overestimate their competence will easily sell their services to new clients – but they fail to deliver the promised results.
[I cringe thinking of all the freelancers I fired because their competence was way below what they first told me they were capable of.]
There’s all sorts of risks for your client, depending on what your work is.
An incompetent doctor might cause a death, an incompetent marketing consultant might cause a potentially profitable campaign to fail and lose money for the business.
For yourself not being able to deliver the promised results means:
- Losing clients faster than you can add new.
- Having unhappy clients. Not getting referrals.
- Having to work on low fees.
Obviously, your best choice would be to build competence.
Low Confidence & High Competence
The most depressing place to be. It’s a pity. If you’re in this quadrant you have the competence for great success, but you fail to realize your potential.
Lack of confidence in business means you sell yourself short.
- Your fees are too low to finance an even average lifestyle.
- Your fees are too low to finance business growth.
- You’re not fully booked because you’re not confident in selling.
- You’re scared to go for bigger, better paying clients.
Your confidence is on a downward spiral because you’re painfully aware that you’re not utilizing your potential.
High Confidence & High Competence
This is where you want to be. Competence combined with confidence is where all the rewards are.
- You deliver valuable results for your clients.
- You are happy. Your clients are happy.
- You don’t need to worry about selling. Because:
- You can ask higher fees. You can go for bigger clients.
- You’ll have long term customers, and you’ll get referrals.
Now it’s your turn.
Your business grows when you grow.
Where is your bottleneck?
HINT: If your confidence it too low, you’re probably painfully aware of it. If you’re confidence is truly over the top, you probably have no idea you’re lacking something in the area of competence.
Do you need to increase your confidence, or your competence?