Does Success Create Deficits?


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Does success cause deficits? We recently listened to a presentation and this topic came up a few times, so we thought we’d dive into it and talk about how it applies to the reselling business.

It’s About Balance

We first heard that success causes deficits from Alex Charfen at a conference presentation that was about business and different levels of business. He mentioned it but didn’t elaborate so Melissa tagged him in a post and asked if he had podcast episodes about the topic. He runs the podcast Momentum. She was curious, how is growing a negative? So we dove into those on our run, and now we can talk more about how it impacts our flipping business. 

This can be applied to anything, whether it’s flipping, your side hustle or your full-time gig. It’s about getting in momentum. He broke it down like this, when you’re creating success you’re imbalanced in another area. 

For example, for us, we’re creating more sales which is the positive, but then the negative is we have a hole that we’ve created. I do all of the finding, picking, listing, shipping, all of that stuff. And I’ll dive deep into that, get excited, motivated, clean list, whole bunch of stuff. Then five sales come in and I have to focus on palleting and shipping, so then I’m getting away from the sourcing and listing. It’s just a big cycle. So then after that week of shipping, sales slow down and the cycle keeps repeating. The deficit is when you get a sale and I haven’t listed in two weeks.

Melissa actually brought this to my attention, and that is exactly true with the cycle of listing. So that’s what we realized. And we’ve known this for a while. We’ve never just related it to our business this way. And after we heard that podcast it totally made sense, but it relates to everybody. 

You can figure out the highs and the low. It’s more of, okay, when you do have success in this area, did something else drop and is it a direct result of that success that you had?

It’s important to know what is happening so you can address it. For us, the bottleneck is listing and cleaning. I’m really good at finding deals, I could do that any day of the week, so maybe we need to hire someone to do the listing and cleaning so I can focus on finding more items to sell.

Creating systems to address the holes or deficits is what Charpin talks about on his podcast. 

Another thing we heard recently was some people get stuck thinking they are the only one who can do something, but you can train people to do it just as good or a lot better than you can. So you should build up your team to have people working with you. Don’t be afraid to outsource or delegate tasks if it’s going to help you continue to grow.

Prioritize Your Time

When you are really driving your business towards success, something else is going to suffer or you won’t have enough time for it. For us, we wanted more time to work on our business and earlier this year we recognized that TV was a big time suck for us. Every night I’d watch an hour or two of TV so we decided to do a 90-day sprint to hit our goals where we did not have the TV on the wall. We took it down and put it into storage. We only lasted 45 days because I bought something I had to test with a TV, and then we started watching it again, but I was willing to give that up to try to get to that next goal, because I knew of the imbalance.

Wherever you are in your business, think about what you may have to change or give up to get to that next level. If you want to spend more time on the business, but don’t have enough time in your day, something has to give, so think about what that could be. It could be social media, TV, or maybe something else.

Show Notes

Alex Charfin Podcast Momentum

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Robert Stephenson

I grew up in Central Florida and have lived here my whole life. I first got into buying and selling items when I was 16 years old, and have been hooked ever since. It has mostly been a hobby that makes some extra cash, but sometimes it serves as my main income as well. I don't plan on stopping any time soon. I find too many fun toys for my family (or myself), and just love the whole process.

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