Why copying your competitors is slowly killing your business

Just because other businesses are paying their employees on a commission basis does not mean you also need to.

Tough love today, friend.

Looking left and right when making big strategic decisions will not lead you down a path of success in your business.

When you’re an unsure entrepreneur, it’s tempting to copy what you think successful competitors are doing. But here’s the truth: you literally have no idea what the Income Statement of Competitor A or Business B actually looks like.

Maybe you’re feeling stuck because you think competitors are doing better than your business. Maybe you’re a lost business owner trying to find your next step. Maybe you feel like you can’t make a decision because everyone else seems to have it “figured out.”

Here’s what you need to know:

Example 1: Commission Splits Aren’t Always What They Seem

Competitor A might be paying their employees a 60/40 commission split. Cool.

This means they have 40% left over for overhead and owner profit.

But wait — if it’s a commission employee with 4 weeks of vacation, that very quickly becomes a 68/32 split because they’re paying vacation time too.

You can’t tell me this works long term without another line of business propping this up — for example, an owner putting in at least 30 chargeable hours per week.

Example 2: Renting Rooms Sounds Good… Until It Isn’t

Business B could be renting out rooms for $1,500/month.

Awesome. Maybe that works — if they have 6 rooms, pay their landlord $4,500/month, and keep overhead nicely managed at $2,700/month.

Or maybe it actually doesn’t work at all.

If their rent expense is $7k and their rental income is only $9k/month, overhead will put them in the negative most months by around $700.

As in, Business B needs to re-evaluate things. Stat.

The Real Problem

The point here is simple:

You cannot make decisions about what’s right for the inside of your business by looking at the outside of someone else’s.

You simply don’t have enough information to know if what they are doing is actually leading to long-term sustainability or profitability — or if they’re running a deficit every single month and only have five months of runway ahead of them.

And I say this with love:

If you aren’t ready to make big strategic decisions without following whatever way the wind is blowing this week, you aren’t ready to make big strategic decisions.

Honestly — that’s okay.

It takes time to find your voice, your values, and your unique path forward.

But if you are a lost business owner who feels like you can’t pay yourself properly or an unsure entrepreneur stuck in decision paralysis, copying others will never be the solution.

The Formula: Your Path to Clarity

If you’re ready to stop guessing, stop side-eyeing your competitors, and actually build a business that feels stable, profitable, and aligned with YOUR goals — let’s talk.

Inside The Formula, we tackle exactly this:

✅ Strategic decision-making that’s grounded in facts, not fear

✅ Profit-first planning so you can pay yourself like the CEO you are

✅ Building a business model that doesn’t crumble every time the industry changes its mind

If you’re serious about stepping into the next version of your business — the one that can afford to take a two-week unplugged vacation at the Fogo Island Inn without everything falling apart — book a call with me today.

This is your sign to stop playing small.

Let’s get you set up properly.