One of the biggest mistakes I made starting out in business
was chasing money. The focus, the driver and the motivator was money and thats wasnt the best thing to do it alienated a lot of opportunity. The opportunity to grow and expand this one because the numbers werent solid.
Because the direction my business partner and I were considering taking didnt have a proven track record and didnt make financial sense we missed the opportunity to pounce on the emerging gap in the market.
Money as a key metric in business isnt a good stat to be building a business around. Revenue and monthly reoccurring revenue and annual reoccurring revenue are great metrics to use to make data driven decisions for your business. Having the numbers visible is a great motivator when you track the right things.
“I don’t ever recommend just chasing the growth of the bank balance.”
When you make money as your primary metric you may develop tunnel vision on a number a very specific number. If you hit that number or dont come close you become fixated on that number and dont take in other variables that might be more profitable than pursing the magic number.
I am not a bean counter of the finance guy in any of my businesses. Ive been in more finance and accounting meetings than I have wanted in my time. While extremely boring and hard to focus during these meeting they were really beneficial for me to upskill my finance intelligence.
My experience with money is that outside of the business we dont talk about it with competitors, partners, affiliates and keep our cards to our chest. This helped me keep focus on our goals and not worry about competitor ABC who was chasing $500K MRR or what ever dick measuring number that they had fixed as their success metric.
I honestly can not stand loud mouth marketers or business owners who boast and brag about who much their business makes in revenue. This places a big fat red target on your chest. I also just as a human with good manners be bragging about myself. Be humble and know you are doing well without shouting it across the room.
If you do attend conferences you can look around and see these same people in deep financial substance abuse and trying every which way to find happiness outside their business. They focus on money because they dont have anything else to contribute.
Your business should be your dream hobby that you can not wait to get started on each day. The people you do it with should be your favourite people. Ive built many businesses with this in mind, who do I want to work with and does this fulfil me.
My success indicator is knowing we have a steady flow of money coming in, the number monthly and yearly is increasing gradually. Then when we are stable or growing I dont have money as a motivator because our system to grow that is working. This is where I have time to look for an emerging business or brand and speak with them about how they can do more and pass on some of our tips and strategies that helped push our business into the green.
Thats my success metric, being free enough to share my knowledge with others who are just starting out.
I did’nt come from money and Ive never had big capital injections to buy and start businesses. I would grind and hustle my skills to build momentum and steadily grow a seed money allocation for new ideas or acquisitions. It takes a bit longer but I dont owe anyone anything and I am free to make what ever decisions I need to to grow that business without reporting into a board or a JV partner. This is not the method for everyone it takes commitment and dedication to the goal.
Ever since I built my first company Ive wanted to take an opportunity where I would have a job that provided fulfilment and made me feel satisfied. Ive got this thing where I need to be doing something all the time. I move fast and I am easily bored if theres no movement or anything for me to do. I often found myself after the growth period of a business and things had started to plateau a bit, I would start buying crap that I didn’t need or hiring people I didn’t really need just to keep busy.
I wasnt looking for new opportunities, I got a little com-placement. In one of my physical service businesses I was extremely passionate about building it and we actually grew it to 5,000 employees and one day I just lost all attachment to that business. I felt it had done its dash and I couldn’t give it anything else. I was bored and I was not enjoying the business that last week I was so excited to get to work.
My recap is we were so busy building relationships that we had taken our eye off the ball of business growth and just the day to day operations had worn me down. It was so sad losing all that organic energy where I could do everything everyday sucked down to the bare minimums and I struggled even filling the weekly roster.