Why are YOU in business?
I was listening to a Dan Kennedy seminar the other day, and as often happens when I listen to Dan, I was reminded of one of the most powerful "money-keeping" secrets in existence.
Here it is: the purpose of a business is NOT to put money into it, it's to take money out of it. A lot of business people are confused about this. Why? Because they don't have a clearly defined purpose for being in business, a tool that helps them make financial decisions.
Let's be clear on this: the purpose of being in business is to create permanent and lasting wealth for the business owner. It is not to create jobs, or to build communities or to promote causes.
Nothing wrong with any of those, but a business is not the vehicle to do that with. If you want to do that, start a church or a non-profit, or a mass movement, but not a business.
The purpose of business is the getting and keeping of money on a long term basis. To be a complete businessperson you need to realize this and make all your long term decisions accordingly.
Most businesspeople don't or won't do this.
Why? Because it involves doing stuff that is not fun. Hey, writing a sales letter, doing a mailing, or sending out an email blast can be a lot of fun. But paying bills on time, making sure the accounting is done right, taking care of your taxes, and setting up wealth building vehicles like IRA's can be downright boring. But it's where the money is.
Consider this: if you have $500 in late fees each month, how much do you have to spend to make the money to cover them? A lot. Why? Because that $500.00 comes out of net, and in many businesses you have to bring in $8 of gross to make $1 of net. But if you cut the late fees by simply paying your bills on time, you have an extra $500.00 of net a month, an extra $6,000.00 a year.
And if you're a smart business person you can do a lot with an extra $6,000 a year--at the bare minimum you can be a hard money lender, and get close to 30% a year on your money with no time invested. Do that year after year, and a person can get pretty wealthy.
Look, it's not the fun, flashy stuff that builds wealth. It's the boring, nitty gritty details of managing every dollar OUT of your business that brings you true riches. And when you think about it like that, the "boring stuff" actually becomes pretty exciting.
Let's get to it...
Mr. X.
Group M Marketing
Kimble and Kennedy Publishing
Here it is: the purpose of a business is NOT to put money into it, it's to take money out of it. A lot of business people are confused about this. Why? Because they don't have a clearly defined purpose for being in business, a tool that helps them make financial decisions.
Let's be clear on this: the purpose of being in business is to create permanent and lasting wealth for the business owner. It is not to create jobs, or to build communities or to promote causes.
Nothing wrong with any of those, but a business is not the vehicle to do that with. If you want to do that, start a church or a non-profit, or a mass movement, but not a business.
The purpose of business is the getting and keeping of money on a long term basis. To be a complete businessperson you need to realize this and make all your long term decisions accordingly.
Most businesspeople don't or won't do this.
Why? Because it involves doing stuff that is not fun. Hey, writing a sales letter, doing a mailing, or sending out an email blast can be a lot of fun. But paying bills on time, making sure the accounting is done right, taking care of your taxes, and setting up wealth building vehicles like IRA's can be downright boring. But it's where the money is.
Consider this: if you have $500 in late fees each month, how much do you have to spend to make the money to cover them? A lot. Why? Because that $500.00 comes out of net, and in many businesses you have to bring in $8 of gross to make $1 of net. But if you cut the late fees by simply paying your bills on time, you have an extra $500.00 of net a month, an extra $6,000.00 a year.
And if you're a smart business person you can do a lot with an extra $6,000 a year--at the bare minimum you can be a hard money lender, and get close to 30% a year on your money with no time invested. Do that year after year, and a person can get pretty wealthy.
Look, it's not the fun, flashy stuff that builds wealth. It's the boring, nitty gritty details of managing every dollar OUT of your business that brings you true riches. And when you think about it like that, the "boring stuff" actually becomes pretty exciting.
Let's get to it...
Mr. X.
Group M Marketing
Kimble and Kennedy Publishing
