Why is the Failure Rate of Launching a Peer Group So High?
# 1: It’s the Industry, Not You.
One of the top reasons business mastermind groups fail is that the person starting the group is not qualified to do so and is not properly screened for the right fit to start and lead a group. Many organizations that offer training are only concerned with getting your money for training. They do not take into consideration the qualities required for success. It’s no different than a company searching for the right fit candidate with the soft and hard skills to hire for their open position. Therefore, this issue starts with those organizations responsible for supporting and educating those who aspire to start a mastermind group.
Why Business Mastermind Groups Fail
#2: The Moderator Lacks Business Experience
Having diverse business expertise to do all the functions in running your business mastermind business is underrated. Functions specifically required are marketing, sales, client management, accounting, administrative, and the ability to moderate. Having the experience that relates to the type of group gives you credibility. Being proficient in all aspects of running a small company gives you an edge because this is a business, your business.
#3: Ineffective Marketing and Sales
Having an effective marketing approach is essential to launching quickly and having the selection to put the right members together. Common marketing issues to launching are:
· No solid marketing strategy covering multiple angles.
· Not enough connections to send an invitation to explore membership.
· Failure to devote time to do the heavy lifting of planning and execution.
· Believing you can do it all alone.
· Don’t have centers of influence, referral partners, or sponsorships to help reach prospects.
· Make assumptions: people got their invite, call, email, etc.
· Not being quick to follow up with good sales practices.
#4: Lack of Discipline
Launching a group takes time, persistence, resilience, trust, and a positive mindset. The biggest mistake an entrepreneur will make is not being disciplined in the process. There are distinct methods that work and those that don’t. Don’t question or think your process will be better if you have never done this before. Take it from the book of those who have paved the way and taken the hard knocks for you. It is not necessary to reinvent the wheel.
Are There Certain Industries or Profiles That Aren’t Ideal for a Business Mastermind Group?
Yes, there are industries and characteristics to generally stay away from when creating your mastermind group. Typically, industries that have the following characteristics are not ideal fits (note: there are always exceptions):
The owners are the technicians of the business. They are sole practitioners like doctors who are performing the services they sell. They can never get away to attend a meeting let alone implement any suggestions from the group. Traditionally they don’t “work on their business”. They work “in the business” by design.
Companies with advisory boards of their own, particularly due to funding from outside investors like Private Equity or Venture Capitalists. Those investors expect the CEO to get their advice from the ones who invested in the company.
Companies are so small that the owner can’t take time for a meeting without the business coming to a stop.
Local business is controlled by larger public companies where most decisions are made. Examples: Hotels, restaurants, retail stores.
Other industries include:
Government and public agencies
Museums
Gambling venues
Entertainment venues
Military
Education
Individual and Family Services
International Affairs
Other Mastermind and Peer Group Challenges: 4 Myths
There are nuances to launching and running successful mastermind peer groups that are rarely discussed. The conversation seems to always center on the short term what to expect vs the long term. Here are a few myths to consider before embarking on your journey to start a mastermind group.
Myth #1: Once I learn to moderate, I’m good to go. You will never master perfectly being a moderator. Moderating is an art and a science. You can get very good at it, but it’s a continuous journey. The longer you run a mastermind group, the more you’ll understand this.
Myth #2: I have to be a hard closer to get members. This is a consultative sale. There is no need to use hard closing techniques. It will never work out positively. This is a relationship sale, one which you are searching for the reasons being in your group would be of value to them and the other members. It’s an interview. Pretend you are a recruiter who is looking to match a company with a candidate and the candidate to the company. Find the match both ways and you have success!
Myth #3: I can do this as a hobby. Treat this like a business, a chance to leave a legacy. You have members' financial well-being at stake especially if your group is a CEO business group. They are counting on their personal participation to protect their biggest asset, their business. To enable them to make better decisions and create greater wealth. Treat this endeavor with the respect and seriousness it deserves.
Myth #4: I can learn this on my own, it can’t be that hard. Don’t go it alone. The essence of why members join a group is to not go it alone. You should not either. Find other peers or an organization to align with so you get answers to starting and running groups successfully. Peers you can learn from, trust, and lean on as well as reciprocate with.
