Sometimes I see situations that just make me shake my head in wonder. Situations where a person obviously has their financial priorities out of order.
Here are a few:
- If you know everything about your favorite team or TV show but do not have a financial plan …
- If you pay for your child to participate on a traveling sports team, but have nothing saved for their college education …
- If you’ve purchased 85 video games and 3 different game consoles for your kids, but have nothing saved for their college education …
- If you have worked for 5 years and haven’t saved any money …
- If you have worked for 20 years and have nothing saved for retirement …
- If you say, “I just need to make more money,” …
- If you believe the lottery is the only way you will ever be able to retire …
- If you have not given away any money …
- If you think 401(k) is a radio station …
- If you have purchased a brand new car (that will drop 60% in value in the first 4 years) and have invested nothing …
- If you do not take time to plan the use of your paycheck before you spend a dime of it …
- If you continually blame others for your financial situation …
- If you refuse to talk with your spouse about money …
- If you have regular pedicures/manicures, a smartphone, and cable/satellite TV and say, “I can’t afford to invest or save …”
In the past, many of these items were true for me. Are any of them true for you?
Would you add anything to this list?
I love listening to Dave Ramsey on the radio. He’s a JosephSangl.com Financial Hero. I remember a specific conversation he held with a caller who felt they “deserved” a pay raise. When asked why they felt they deserved increased compensation, the caller could not effectively answer the question. They felt an answer of “I deserve it” should be sufficient. Dave responded with this great statement:
“Your pay raise is effective when you are.”
In other words, when you value to your organization and help them generate more revenue or more profit, you will be in position to receive more revenue.
- If you help your company reduce warranty claims, you reduce their operating costs – which leads to more profit.
- If you sell more products at excellent margins, you yield more profit.
- If you are a manufacturing line worker and reduce a specific defect by 50%, you help the company reduce re-work expenses – which leads to more profit.
- If you are a hair stylist and your work is so good that 95% of your business is repeat/regular customers, you’ve demonstrated the ability to secure profit.
- If you identify a way for your company to increase its business in another field, you’ve added tremendous value to that company.
It is the individual who shows up to work every single day knowing their work is essential to the company’s success that helps the company become wildly effective. And money tends to flow toward wildly effective and innovate people.
- How do you add value to your organization? Can you monetize that value? If so, how much value do you bring?
- How can you add more value to your organization? What idea(s) would help increase revenue and profitability?
This post is part of a Leadership Series here at the wildly popular JosephSangl.com. Click HERE to read more posts in the series.
Having successfully started a few small businesses and acquiring another, I can confidently say that it takes sacrifice to make the dream of a small business come alive.
I worked the equivalent of two full-time jobs for an entire year while I Was Broke. Now I’m Not. launched. I would work all week and then jump into a car and drive to some distant place to speak about personal finances. Usually, I would end up spending more money on gas, hotel, and food than I would receive in income from the event!
As I share in my book, Oxen, you can’t load up a baby ox as soon as it is born, or it will die. Yet, many people do this very thing when birthing their small business. They finance the entire start-up costs and then quit their job as soon as they launch the business – forcing the business to pay them a salary from day one. They “load up the baby ox” with all of the costs of debt, salaries, and rent – causing even great business ideas to collapse before they really had a chance to succeed.
It takes sacrifice. Here are 3 key sacrifices you can expect to make when launching your small business dream.
3 Key Sacrifices Business Owners Make
- Time With Family Starting a business is not a 9am to 5pm, 5 day a week job. Curb the impact of this by being very intentional in the time you do have to spend with your family. Another tip is to include them in the work and decisions of the business. For example, I bring my daughter along with me to help with speaking events. She manages the resource table. Better yet, we have the chance to talk during all of the plane and car rides.
- Money People who are launching their small business venture will have to invest substantial amounts of money in the hopes of a financial return. There is no guarantee of success. I’ve found that investing my own money into the business helped me be very attentive to business expenses. It seems to be much easier to spend borrowed money.
- Other Dreams Because of the enormous consumption of time that a new small business demands, many other hobbies and passions are placed on hold. Saying “yes” to starting a business will mean one must say “no” to other desires.
For those who have successfully started your own small business, what are some other sacrifices you have had to make? Please share in the comments?
This post is part of a Small Business Series here at the wildly popular JosephSangl.com. Click HERE to read more of the posts in the series.
Here are 3 simple lessons you could teach your child this very week:
- How to intentionally give money away to help others.
- How to set a financial goal and establish a plan to achieve it
- The importance of saying “no” right now so later you can say “yes” to something more important
This post is part of a Kids & Money Series here at the wildly popular JosephSangl.com. Click HERE to read all of the posts in the series.
In this week’s Monday Money Tip, I share about a money app I personally use and have found very helpful with managing my personal and business finances. Learn more about it in the below video:
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