How Scarcity Can BLOCK or BOOST Your Wealth (Part 1)

Jul 07, 2020

Scarcity will either block your wealth or boost your sales. It’s all in how you use scarcity in your business.

How is it that one concept can both hinder and help you? That’s what we’re going to look at over the next two weeks. In this article, I’ll share how a scarcity mindset can prevent you from reaching your full potential, then in the next post I’ll share how you can use it to boost your sales in an ethical way.

What kind of scarcity do you struggle with?

Where do you feel scarcity in your mindset?

Do you feel scarcity in the amount of money you have in your business or your life?
Do you feel scarcity in your mindset around how many customers, clients, or potential leads you have in your business?

What is it doing to you?

Is the scarcity hindering you?
Is it blocking your wealth and your business?
Is that blocking your revenue and your profits?

If you have a scarcity mindset in your business, you may believe that there aren’t enough clients to go around. Not enough money for everyone. What this ends up doing is putting you in a place where you don't feel your full value because you're constantly doing these things:

1. You get Comparitis: You're constantly comparing yourself to others. And so, rather than focusing on yourself and staying in your lane, you start looking at what other people are doing, what they’re saying, and what they’re selling. You’re pulled into a scarcity mindset that’s distracting you from what you do well and what you really need to focus on.

2. You get desperate: You don't feel like there are enough customers out there and to land these clients you drop your value and prices, thinking that will win you the sale. You get desperate and you think, “I’ve got to charge less for that. I can't really charge as much because there are not enough people out there. I just want people to buy in so I'm going to drop the pricing.” This thinking rarely serves you.

Before the next point, ask yourself:

If you invest $1 and get $2 back, would that be worth it?
If you invest $1 and get $10 back, would you do it?

These two questions should have you respond with a strong “YES!” But the truth is many people are holding onto money and not investing in things that will push their business forward.

3. Your ROI (Return On Investment) with your current money is limited: Scarcity mindset also restricts your behaviour, because chances are you're going to hold onto your money tighter. If you have scarcity in your business, you're going to hesitate or refuse to invest money in working with others to move your business forward. We know that investing in support to delegate tasks or hire employees can help you move your business forward, but if you’re not willing to invest in that help and you choose to do it all yourself, you’re going to get overwhelmed quickly.

That scarcity mindset is going to have you holding on super tight to every little penny that you make and that doesn't keep the world’s economy spinning at all. You're not going to think of it as “investing”, instead you're going to think, “That costs money. I'm spending money. I'm losing money. That money is going away.”

So now it’s super clear how the scarcity mindset is a really great way to block your business & personal success. You’ll compare yourself to others and it will make you devalue yourself. You will block your wealth in many ways and it will lead to you not investing in yourself and your business which is crucial for growth.

So, how can scarcity also be a good thing? I’ll cover this in the next blog.

Until then, stay dynamic!