EP225: What Got You Here Will Fail You Now

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How in the world did a company that once pulled in a staggering $5.9 billion across a mind-blowing 9,000 global stores end up shrinking down to a single humble store tucked away in a small, forgotten town?

And what in the name of business sorcery led to the downfall of a company that used to be the undisputed kingpin of the mobile phone market, boasting a colossal 51% of the global market share, only to witness a jaw-dropping 90% revenue nosedive within a mere four years?

Guys, take a moment to ponder these two colossal companies. 

Once hailed as the almighty rulers of their domains, they went from dominating the scene to fading into obscurity in just a short decade or less. 

We’re talking about Blockbuster and Nokia. These giants, these titans of industry, were reduced to relics of the past. It’s a stark reminder that no business, no matter how big or powerful, is immune to the winds of change.

Now, the crucial question you should be asking yourself right now is this: If it can happen to these behemoths, what’s preventing it from happening to your business? 

In today’s episode, we’re going to unearth those common threads, those patterns that apply not just to these giant corporations but to any business out there.

But here’s where it gets exciting – we won’t just stop at dissecting their failures; we’ll figure out how you can take these hard-earned lessons and apply them to your own business. We’re talking about ensuring that your business not only survives but thrives with longevity and adaptability. So buckle up, because we’ve got a lot to cover!

Let’s first talk about Blockbuster.

Now, when you think about them, what’s the first thing that pops into your head? Renting out DVDs, am I right?

Picture this: Back in the year 2000, when Blockbuster was riding high on their throne, the founder of Netflix walked into their boardroom with a proposal to partner with them. And you know what happened? They practically laughed him out of the room! Can you believe it?

Fast forward to today, Netflix isn’t just another fledging company trying to latch on; it’s a juggernaut. Its valuation? A staggering $200+ billion! And get this – they’re not just distributing other people’s content anymore. Nope, they’ve evolved into an entertainment powerhouse. They’re calling the shots, producing their own movies and TV shows.

See, here’s the key takeaway: Netflix was never just a mail-order DVD company, and they weren’t satisfied with being just another streaming service. They had their eyes on the big prize – becoming an entertainment titan.  

So what’s the major pattern that can be used to apply to your business? 

Let’s use the Multifamily Apartments business since it’s near and dear to our hearts.

Now, listen up, because this is a game-changer: Your past success in a different business doesn’t guarantee success in the MF (Multi-Family) arena. Why? Because it requires a complete transformation. You’ve got to become a whole new version of yourself.

You see, here’s the deal – you’re just one skill away from making your dreams a reality. But let us tell you, sitting around and watching TV won’t get you there. 

Our traditional education system often misleads us into thinking that learning is all about knowing stuff. And that mindset can be a real roadblock. It makes us believe we already know everything, which, in turn, stops us from learning new things.

Now, here’s a story for you: We often hear from newer general partners and capital raisers, and they often say, “I’m raising my first million, and it’s tough as nails. Raising money is no joke. 

How do you guys make it look like a walk in the park?” So, we dig a bit deeper, and guess what we find?

 Some of them are trying to raise money by having dinner with a handful of friends who happen to have some cash.

But here’s the twist – despite their best efforts, these friends are dodging investment pitches and ignoring information requests. 

And you know what they’re doing to solve this? They’re sticking to the same friends, over and over again, without any success. Honestly, this approach is like trying to swim upstream with bricks in your backpack. It’s stressful, exhausting, and can even damage your friendships.

When you rely solely on your inner circle as potential investors, you’re setting yourself up for a tough battle. 

And unless you’re willing to shift your mindset and reinvent your identity, going from one-on-one pitches to a broader audience, you’ll keep hitting that brick wall. To successfully raise millions, you’ve got to break free from your current identity.

Here’s the game plan: You need to create a magnetism that naturally draws investors to you, instead of you constantly chasing after them. 

And let us tell you, when you chase investors, they can smell the desperation a mile away, and there’s nothing more repelling to them than a desperate fundraiser.

So, what will it take to create a long-lasting successful business?

We hold our father in high regard as a remarkable businessman. He put in tireless effort, ventured into a foreign land with no knowledge of the language, and managed to establish a successful business from scratch. However, the challenge emerged when economic dynamics began shifting, and globalization became the new norm. Regrettably, he didn’t embrace these changes; instead, he clung to his traditional ways, repeatedly drawing from the same source until it eventually dried up. He struggled to embrace a new identity, and the outcomes he achieved were a reflection of this reluctance to adapt.  He lost it all.

Listen up, because this is a “you should write this down moment”: Your identity should never be tied solely to your possessions and achievements – your fancy cars, your luxurious homes, or your bank account stacked with cash or your past success. 

The moment your identity becomes all about what you have, you’re in deep trouble. You lose sight of the real secret sauce – the person you’ve become and the skill sets you’ve acquired along the way.

You see, Blockbuster made this same mistake. They saw themselves as only a DVD company. 

When new technology came knocking, they got left in the dust. But imagine if they had identified themselves as an entertainment or movie company? They’d probably still be thriving today.

For you and your business, you are listening to us, that means you are quite successful in your own right.  You’ve made it this far in the game and then what?

But here’s the deal: Success today doesn’t guarantee a darn thing for tomorrow. Success requires intention, action, and continuous growth. But entropy, that sneaky decline or decay, creeps in when you do nothing.

It’s like people who hit a certain level of success and then coast. They stop doing the very things that got them there in the first place. 

It’s a pattern that keeps repeating, all because they’ve tied their identity to their possessions and their achievements, not their actions and the qualities that made them successful.

Think about it – you could be running miles today, but take a break for just a few days, and your ability to run those miles fades away. 

The endurance disappears because to truly intend to be a runner, you’ve got to keep running.

The same goes for being a top-notch general partner and capital raiser. You’ve got to keep innovating, keep being the person who takes the necessary actions to ensure a constant flow of money. The moment you stop, you become irrelevant. 

The old ways of doing things won’t cut it anymore. You can’t rely on your existing list of investors because the game has changed.

Think about it for a moment – there’s a sea of people out there, all trying to raise money using the exact same methods as you. Now, what are the odds of you standing out? How can you ascend above this sea of sameness and truly shine?

In order to have all that you want with capital raising or your other business success, you have to reverse engineer the process.

Ask yourself, what new identity must I possess… that will allow me to do the things necessary so that I can have the type of success I desire?

You see, we’re all in agreement that as our businesses evolve, we need fresh strategies and tactics. No doubt about it. But here’s where some folks take a misstep – they leap ahead, hunting for all sorts of fancy tricks and hacks that promise to set them apart. They want to be ahead of the curve, but they miss a crucial point.

You have to look in the mirror and reflect, whether or not you presently are the kind of person who can truly execute those new strategies or tactics? Do you possess the know-how, the skillset or the capability? Or do you need to become that person first – the one who can confidently put those strategies into action?

This is where a lot of folks stumble. They’re eager to get the goods, but they forget that in order to have those things, they must first embody a new identity. It’s that shift in identity that empowers them to take the necessary actions, to do what it takes to achieve their goals.

So now that you understand that what got you here will fail you now, tune into this episode.