The $100 MBA Show — Episode MBA2520: The Cost of Success

Release Date: September 13, 2024
Host: Omar Zenhom

Introduction

In Episode MBA2520 titled "The Cost of Success," Omar Zenhom takes a deep dive into the often-overlooked sacrifices behind entrepreneurial achievements. Unlike his usual tactical lessons, this episode offers a personal and reflective narrative, drawing from his two-decade-long journey in building and selling multi-million dollar businesses.

Understanding the True Cost of Success

Omar begins by addressing a common narrative in the business world: the glorification of success without acknowledging the accompanying hardships. He states:

“We hear a lot about success. We hear people winning. We hear people being acquired... but we don't ever really talk about what did that success cost them.”
— Omar Zenhom [04:30]

He emphasizes that every achievement comes with sacrifices, whether it's personal time, relationships, or even one's health. Drawing from a Harvard Business Review study, Omar notes that the majority of successful entrepreneurs endure significant hardships and make immense sacrifices to reach their goals.

Personal Journey and Reflections

Omar shares his entrepreneurial journey, which began in 2002 while he was still pursuing a career in education. Over a decade, he balanced teaching English as a second language with side hustles, eventually transitioning to full-time entrepreneurship with his partner, Nicole. This transition was fraught with challenges:

“We lived in a very small studio apartment. We had no car, we basically spent nothing on ourselves... It takes time to get momentum.”
— Omar Zenhom [06:15]

The emotional and financial strains were immense, leading Omar to confront the realities of building a business from the ground up. He recounts thoughts of taking a part-time job but resisted, inspired by Kevin O'Leary’s assertion:

“The most addictive drugs in the world are cocaine and a steady paycheck.”
— Omar Zenhom [07:50]

Lessons from Biographies and Inspirational Stories

To navigate these tough times, Omar turned to biographies of successful individuals, finding solace and motivation in their stories of perseverance. He recommends several impactful reads:

• Shoe Dog by Phil Knight
• Hard Things by Ben Horowitz
• Elon Musk by Ashley Vance
• Open by Andre Agassi
• Kitchen Confidential by Anthony Bourdain

These stories reinforced the notion that enduring hardship is a rite of passage in the path to success.

Omar illustrates this with the story of Sylvester Stallone and the creation of Rocky. He highlights Stallone’s unwavering determination to star in his own screenplay despite numerous rejections and personal losses:

“In order for him to be Rocky, he had to stick his ground and just sacrifice everything in his life so he can make it happen.”
— Omar Zenhom [10:45]

The Pillars of Sacrifice

Omar outlines the primary areas where entrepreneurs often sacrifice:

1. Time and Energy: Building a business demands immense dedication, often at the expense of personal time and leisure.

   “If you're building this business, you're going to dedicate a lot of time, a lot of energy... So it's good for you to choose your sacrifices.”
   — Omar Zenhom [14:20]

2. Relationships: Entrepreneurs might experience strained relationships with family and friends due to the intense focus required to grow a business.

   “Choose your sacrifices rather than disappointing people and not being proactive about the things that you're letting go.”
   — Omar Zenhom [16:50]

3. Years of Life: Significant portions of one’s prime years are dedicated to entrepreneurship, which are years that cannot be reclaimed.

   “You are going to sacrifice years of your life. Those years are gone forever.”

— Omar Zenhom [19:30]

He reflects on his own experience with Webinar Ninja, dedicating ten years of his life to build the company, which ultimately led to its successful acquisition. This commitment resulted in personal sacrifices, including limited social life and increased stress, but Omar believes it was worth the cost for his personal growth and business success.

Choosing What to Sacrifice

Omar emphasizes the importance of consciously choosing what to sacrifice rather than making these decisions haphazardly. By prioritizing what matters most, entrepreneurs can align their sacrifices with their long-term goals and values.

“Understand that you can't do this forever. Meaning you can't burn and work and grind forever. So you better make sure you're building something that you know will be successful.”
— Omar Zenhom [21:15]

He advises entrepreneurs to communicate their journey and sacrifices with their loved ones to gain their support and understanding, ensuring that relationships remain strong despite the demanding nature of entrepreneurship.

Conclusion: The Worth of Sacrifice

Omar wraps up the episode by reiterating that while the cost of success is high, the rewards—both tangible and personal—make it worthwhile. He reflects on the transformation he underwent through his entrepreneurial journey, emphasizing that the real value lies in who one becomes during the process.

“The cost of success is expensive, but it's worth it. Pay the price. Make sure that you're doing it for something that you believe in and that will be successful.”
— Omar Zenhom [23:00]

He encourages listeners to embrace the challenges, make informed sacrifices, and pursue their entrepreneurial dreams with dedication and resilience.

Final Thoughts and Resources

Omar concludes by inviting listeners to explore additional resources on his website, 100mba.net, which offers over 2,500 business lessons, worksheets, and templates. He emphasizes the importance of learning from others' experiences to streamline one’s own entrepreneurial journey.

Key Takeaways

• Success Requires Sacrifice: Every significant achievement involves giving up something valuable, whether it's time, relationships, or personal well-being.

• Choose Your Sacrifices Wisely: Prioritize what matters most to maintain alignment with your goals and values.

• Embrace the Journey: The personal growth and resilience developed through overcoming hardships are invaluable.

• Seek Inspiration and Guidance: Learning from the stories of others can provide motivation and strategic insights during tough times.

Notable Quotes

• “If you're going through hell, keep going.” — Omar Zenhom [02:20]

• “The most addictive drugs in the world are cocaine and a steady paycheck.” — Omar Zenhom [07:50]

• “You are going to sacrifice years of your life. Those years are gone forever.” — Omar Zenhom [19:30]

• “The cost of success is expensive, but it's worth it.” — Omar Zenhom [23:00]

This episode serves as a candid exploration of the personal and professional costs associated with entrepreneurial success, offering invaluable insights for both aspiring and seasoned business owners.