How To Start a Mastermind Group
Why Start a Business Mastermind Group?
The many benefits and reasons to start a Mastermind Group of your own are both rewarding personally and financially. As a moderator you will experience immense satisfaction from simply watching a CEO, in a single meeting, transform from harboring a high level of stress to relief all because of the insights from fellow peers. You will see CEOs make unprecedented changes and advances in their business due to the feedback and confidence derived from their peer group meetings.
Creating mastermind groups makes a difference in the lives of many and particularly the local community in which they reside. How? When CEOs have a mastermind group in their arsenal, they create healthier, growing businesses that enable more opportunities for their employees and their families leading to a stronger community to which they live and give back.
There are more reasons to start a Business Mastermind Group. If you answer yes to these questions, then you have “your” personal why in doing so.
Would you like to leverage your business expertise and help CEOs of privately held companies unlock their full potential?
Are you interested in a business model that helps you capture a predictable and ongoing revenue stream?
Would you love to leverage the business relationships you have cultivated over the years?
Would you like to not have to continually sell new clients?
Would you like to create a business that can be financially rewarding in a relatively short period?
Would you like to know you built a business that could eventually be sold for 1-1.5 times the revenue it generates each year or even be transitioned to someone to run for you?
Are you energized by working with people that not only want to learn but challenge you to continually learn as well?
Would you like to run a business that is not only recession-proof but is proven to experience its greatest growth during times of uncertainty, giving you peace of mind?
What Experience Do I Need to Start a BMG?
Ever experienced trying something that looked easy but when you tried it wasn't easy at all. You were surprised. You found out there were hidden nuances that made it more of a science and an art both. That is exactly the case with starting a Business Mastermind Group.
Certain skill sets and experience are required to be successful. The more you have from the list below the better. And if you don’t possess one, that’s okay, many times they can be filled by an alternative means, like hiring that experience. Don’t let not having a skill set listed below deter you from pursuing peer groups. It just means that you will need to compensate in that area and it can be done. Now, see how many you check yes to:
Past experience being a CEO or senior-level leader with P&L responsibility
Experience facilitating meetings
Ability to listen and not play the role of “consultant”
Have worked with or are working with CEOs of privately held companies
Already have a business that has CEO clients that this concept compliments
Ability to be persuasive
Are connected in the business community you wish to have a group (s) whether virtual or in-person
Enjoy building something new and putting teams together
What are the Risks of Starting a Mastermind Group?
The biggest risk of starting a mastermind group is not starting a mastermind group. What do I mean? The biggest issue in this industry is the failure to launch. The inability to put a group of non-competing business owners together with synergies that are true peers. Remember my comment earlier, it looks easier than it is? Venturing out on your own thinking you can just do it and figure it out along the way is not wise. It’s no different than any profession. There is a reason there is certification, training, and education required to be proficient. This industry is the same. Do not risk your reputation, your time, or your money without getting educated and putting a plan together on how to put together, run and maintain a mastermind group.
What are the nuances of these risks?
Risk #1: The inability to assemble a full group of usually 10-12 members. A group of 5-6 is not sustainable and it is very risky to stay at that level. One missing member of a group of 5 impacts more exponentially the quality of the meeting versus one missing member of a group of 10. This holds true as well for when a member terminates, particularly unexpectedly. Eventually, a small group runs its course because the level of experience and insights is limited.
Risk #2: The quality of the organization if you are joining a franchise or any other organization that has upfront fees to go through training. You will want to screen their success rate with their program, how they increase the odds of your success, what is the level of continued support and overall match of culture and values with yours.
Risk #3: You don't have the time upfront required for the heavy lifting to get started. To get a group off the ground, it will take some time upfront to do so. I've estimated consistently it takes nearly 200 hours of work to learn the industry, prepare your model, market, sell, and get a group up and running. Having a full schedule with other activities or work that doesn't allow for extra time to start your group, will not produce success.
Risk #4: Can you be persuasive? You will be selling yourself, the concept of a business mastermind group, why they should join a group as well as why your group. This is not to be a hard sell. It is an emotional sell. Being a great moderator of the meetings is essential once the group is put together but if you can't persuade CEOs to be part of your group and why you'll never get to moderating.
How Much Does It Cost to Start a Business Mastermind Group?
The costs to start a group vary greatly both in your time, level of effort, and investment. All three have to be considered in making a good decision and the right decision for you.
Decisions that impact the cost to start a peer group are:
Do you want to own your group or work for someone who owns it?
How much time do you have to devote to starting a group?
Do you believe you already have the prospects to start a group?
Do you need marketing support to help build a group?
How much money can you afford to invest?
When do you need to see an income from starting a group?
How important is your brand or/and being associated with a brand already in this industry?
How much ongoing support is important to you?
Is your goal to run this as a business or a hobby?
Your answers to these questions determine your investment. If you have all the time in the world to educate yourself, take an online class, and can afford to make some mistakes while relying on your brand, then it can cost <$1000 not including the cost of your time. If time is money to you, you must associate with an organization with a proven track record that can give you the blueprint to success and you want to build a business you own, then the costs can be from $5000 up to $80,000 to get started with ongoing annual fees from $6000 to $30000+. The makeup of the fees is either franchise fees, licensing fees, or commission fees.
Theoretically, the more paid for training and support will equate to savings in time and a higher return on your investment. The concept of a franchise or licensing program is that you are paying for a proven model with ongoing support and a community to learn from that gives you a higher probability of success. Thereby saving you time and money from mistakes, launching a group faster and as a result, making you money sooner. And you own it.
Another factor playing into your decision is whether you want to own your group or be part of another organization where they own your group but you are responsible for putting it together. Financially you are then paid a commission for running the group.
Questions to Ask Yourself to Find a Right-Fit Model
Rank on a scale of 1-5, with 1 = low and 5 = high
How Much Is Your Time Worth
Level of Marketing Help Needed
How Important is Being Associated with a Proven Model
Do You Want to be part of a Community
Is Ownership Important
How Much Can You Afford to Invest
How Quickly do You Want to Get Your Return on Investment
How Critical is it That You Don’t Make Mistakes
Do You Want to Build a Saleable Business
The higher your score the more aligned a franchise or licensing model is. The lower the score the more a training program or building a group under an organization is the right fit for you.
Other start-up costs to consider:
If you are already not in business for yourself, then you will have costs to properly establish yourself like:
Legal fees to set up your entity
Liability insurance to protect you
Website (can be included with some franchises or licensing programs)
Other: URL, marketing materials, etc.
Ready to Launch a Mastermind Group of Your Own?
Now that you have a feel for what type of model could be a good fit for you, do some research on that model and set up calls to learn more. Meeting the organization is important. You are interviewing them for a fit. And they should be interviewing you as well. Be wary if they do not. Not everyone is suited to build mastermind groups and if they care about your success, they will also want to be sure you are qualified for their program.
