Episode 421: Thinking Time - You'll Burn It To The Ground

So evaluate your own financial health as a business owner. Recognize that paying yourself is not selfish. It's necessary for sustainable leadership. And make sure you have a plan that your business supports both you and your team. And I really do believe that the most selfless thing that you can do is to show up as your best self.

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Hey everyone. So imagine a lifeguard who's struggling to stay afloat themselves, trying to save someone else. From drowning. Well, that's exactly what we see with business owners who aren't paying themselves. And over the past week and a half, I've seen this 3 different times, although maybe slightly different versions of the same story. One owner in particular has not paid themselves since July of this year, nearly 6 months. And I need to tell you why this is more dangerous than even what you may think. Look, just like the lifeguard, a business owner who's drowning financially can't effectively save or lead anyone else on their team. And I believe you'll burn that business to the ground before you let that go on for too long. And here's why that matters. I'm going to give you 5 key points in today's message. Number 1, just simple leadership foundation. No, I talk often about managing energy and creating a perfect repeatable week for you to be able to follow. Managing time, sure, but even energy management is even, I think, for a business owner, more important than time management. But number 2, financial health is just is crucial for leadership stability and growth. Just like the US Army teaches, commanders must ensure their own readiness first. Southwest Airlines, they proved this during the 2008 crisis so that they can maintain healthy financial margins. When they had those healthy financial margins, that meant they were able to take care of more employees long term. Point number 2, there's really a hidden, almost insidious danger. I think number 1, financial sacrifice, it happens gradually. Small decisions really begin to compound. Rarely is it one big financial disaster of a decision for small business owners. Number 2, you can often become resentful of your own business. 3, you're often the last one to get paid. 4, the stress seeps into every decision you seem to make. Things almost hang in the balance. This has to work. This new person has to work out. This new marketing strategy has to be a home run. You know, studies on healthcare workers show that sacrificing your own well-being as a healthcare worker often leads to worse care for others. Number 1, just leadership foundations. Number 2, there's just hidden dangers. Number 3, there's a real impact on your team. They feel your stress even when you think that they don't. They also, I don't believe that they should carry your financial stress. You decided to hire them. You ultimately made the final decision to go one way strategy-wise or marketing-wise, etc. I also think it's difficult to hold them accountable effectively when you're stressed about money. And lastly, just like a depleted coach can't properly train athletes, it's hard to attract, develop, and retain some of the team members on your team when you're stressed and when you're on edge. Number 4, Let's get into, so what is part of the solution? You know, this isn't about luxury. This is about basic financial stability. You know, as revenue and profits grow in the business, owner compensation should grow too. Henry Ford himself proved this in 1914 because he took care of himself. First, which enabled him to double workers' wages. It's like that airline oxygen mask analogy. Put your oxygen mask on first, then begin to help others. And I think that having a plan that as revenue and profits grow throughout the years, how will your compensation grow accordingly. You know, I had one business owner, this was years ago, they were doing about $400,000 when we started working together in 2019, and they had just crossed a million. So almost tripled the company. And I remember the comment they said, our household is not making any more money, even though the business is 3 times larger than what it was. I asked, did you ever have a plan in place that as revenue and profits increase, so would your owner compensation? He's a smart business owner. He said no, and I get it. That makes sense. Look, I've been there. I've sacrificed my own pay thinking I was doing the right thing. I'm sure if you're early on, I get it, but it's more about long-term. It's more about What happens over a long period of time, not just short-term. I didn't realize how it really was affecting my leadership and the resentment builds. It builds slowly at first, but surely it continues to build. You think my team just doesn't understand and you're right. They don't. It's not their fault that they don't understand. That's your role. So evaluate your own financial health. As a business owner. Recognize that paying yourself is not selfish. It's necessary for sustainable leadership. And make sure you have a plan that your business supports both you and your team. And I really do believe that the most selfless thing that you can do is to show up as your best self. In closing, I really genuinely believe your team wants you to be healthy. Financially, emotionally, and, you know, obviously health-wise as well. Because when you're good and you're able to pay your bills, when you're not stressed about money, then you're able to effectively lead, you're able to effectively inspire and build something that truly lasts. That's not selfish, that's smart leadership. I hope this served you today. Maybe for somebody out there, if this impacts one person out there to make sure that they are taking care of themselves so that they can ultimately go and affect positively, influen— impact other people in their lives, then it was worth it. All right, everyone, lead well and go be great.

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