Like the title says, you’re not going to like this advice, and only a very few business owners take it, but here it is:
Quit Buying Useless Stuff.
Look, I get some of the consumerism – we all like nice things, and for the tradesmen out there? Yes, buy good tools – they’ll help you get more jobs done faster. For the web designer? Yes, buy a faster machine – again, it serves your business.
Do you “need” the $1500/month car payment? Maybe, but maybe not, too. Sure, a construction contractor might find a “heavy” truck, like a one-ton, more useful if they haul a trailer, and there are times when it does pay to have the Audi instead of the Honda, depending on your business, but 90% of the time?
The flashy car is just sucking up money.
The expensive vacation is wasted money.
The name-brand “business” clothes are just to satisfy your ego.
I’ve got an acquaintance, not a friend (sadly) who is among the most wealthy people I know, and I’ve never seen him in anything more than flip-flops and shorts. He drives an ancient Volvo, but he puts his money to work.
He owns a lot of assets – real estate and oil wells, mostly – and they generate incredible returns for him.
…But to pass him on the street? You’d think he was simply another old blue-collar dude who had the day off.
The point of this email isn’t to venerate the wealthy, but to point out that the truly wealthy – those who’ve made their money, and not just inherited it – don’t flaunt it and they don’t waste it … and yet, many business owners wear their income like a badge, paying for the home in the upscale neighborhood (that they have precious little equity in) and the “nice” car (again, that they don’t own…).
Let me give you an example of what I mean…
Recently, a client who owns a small business began researching how he could market his small business locally using Facebook. He read up on it a great deal, watched countless videos, and even bought a small program. Finally, he scraped up $250 for his advertising budget.
That single ad brought in nearly $3,000 in new business in a month. Yet, when I mention his success to other clients, they point out “how busy they are” both in their business AND spending the profits of that business – going out to dinner, playing golf, taking a weekend with the spouse, picking up the kids from another special event.
Take a step back and ask yourself, “If I could turn a few hours of study and my weekly budget for lunch and dinner into $3,000, would I?”
Be honest, because the truth is? A lot of small business owners actually might not do it.
If you’re truly ready to grow, though, you’ll commit to putting your money to work, not just commit to throwing it away.
Let’s talk soon,