MBA1042 Is Money That Important? + Free Ride Friday!

Hey there. Today is Free Ride Friday so make sure you hang on to the end of the episode to hear who won this week's Free ride. Every Friday we give away a lifetime membership to one of our programs. This month we're giving away Easy Course. That's our 30 day course on how to build an online course in 30 days. It's a $500 course over at EasyCourse Co, but we're giving it away every Friday to a lucky winner. All you gotta do is leave us an itunes rating and review to enter our weekly random draw. And once you leave us a review, you enter the draw every week automatically until you win. Tune in on Friday to see if you won and stay for the great lesson. It's our way to say thank you for leaving us an itunes rating and review. So go ahead and do that right now. Let's jump into today's episode. Hey O. Welcome to the $100 MBA Show. Business truths you need to hear every single day with our daily 10 minute business less lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm. I'm also the co founder of the hundred dollar MBA, a complete business training and community online over at 100 MBA net and in today's lesson you will learn. Is money that important? Many people start a business because they want to solve a problem in the world. They want to make the world a better place. They're not necessarily in it for the money and they might even associate having lots of money with being greedy or selfish. So in today's lesson we're going to tackle the controversial question, is money important or how important is money and how much you should care about making money. Regardless if you're running a for profit business, a non for profit, a charity school or a small family run business, we're going to talk about how money plays a role in every business than every initiative and how when you don't pay attention to it, it can really be the demise of not only the organization or business, but even your life. We got a lot to cover so let's get into it. Let's get down to business. Today's episode of the $100 MBA show is supported by Podia. Podia helps thousands of creators earn money from their passion. It's an all in one digital storefront that you can sell courses, memberships and digital downloads in one place. It's the most creator friendly platform on the market with zero transaction fees and a super friendly 24.7life support team. No matter what plane you're on. So they're gonna take care of you even if you're just getting started. What's great about Podia is that it eliminates all the technical headaches. It takes care of every aspect of selling your course or membership or digital download. If you've got video courses, they do the video hosting for you. If you want an easy way to charge your members on a reoccurring basis for a membership, Podia takes care of it. You want a secure way for people to download your products. When they pay for them, they take care of that too. They also offer free migrations on their shaker plan. Best of all, Podia puts their money where their mouth is. They have a 30 day free trial with no credit card required. So if you don't love it, you don't pay a penny. If you're looking to start a online course, sell any kind of digital product, or start a membership site, check them out and support the show by going to podia.commba that's P O D I A dot I want to start today's episode with a story I want to relay to you. This is a story that was told by Anthony Robbins. Tony Robbins. Now, if you don't know, Tony Robbins made millions of dollars, became a millionaire at a very young age in his early 20s. And he was so happy when he had money that he wanted to spend it and go on trips with his friends, see the world, ride camels through the pyramids. But his friends kind of perceived it as, hey, are you trying to show off here? You're gonna pay our way to go on these mega trips, these crazy, extravagant strips? Are you just into money? They asked him and his answer was brilliant. He said, it's not that I'm just into money. He said, I'm just not into poverty. You see, Tony Robbins grew up super poor. He was even homeless at one point and worked as a janitor at a local high school. And when he was young, when he was making millions in his early 20s because of the way people treated him when he was trying to give the people closest to him, he associated money with negative feelings. But he soon learned that, hey, money is an enabler in a lot of positive ways and it allows him to do things to make him genuinely happy. And that money isn't a bad thing. One of the things he mentions that money enables him to do to make him happy, that is that he's able to feed hundreds of thousands of families on Thanksgiving through his foundation. Now, I start by sharing this story because we all have A relationship with money. Some of us grew up better off than others. Some of us had a good relationship with money or were taught how to manage our money. Some of us grew up with no money to manage. So then when we start our businesses and we start making profits and making money, we get a little scared, we get a little nervous. We don't even know what to do with that kind of success. So sometimes we'll sabotage ourselves and we'll limit our growth, limit the growth of our business so we don't make too much money so it doesn't feel uncomfortable. I know this sounds crazy, but it's true. If you don't really believe you can make six or seven or eight or ten figures, it's just not going to happen. If you don't see yourself doing it, it's just not going to fall in your lap. You have to really want it, believe it, and see it as a part of your future. Now, when it comes to being an entrepreneur, how important is money? Here's the raw truth. It's very important. If you don't have the money to keep your business going, you're in trouble. Money enables you to at least keep your business going so you can keep living your life. Keep, you know, paying your employees, paying your suppliers, serve your customers. So you gotta make sure you, you get this money equation right, or you're going to be in trouble real soon. Yes, there is challenges when it comes to having money or making money or being profitable, but it's nowhere near the challenges of lack of money. If you don't have funding, if you don't have revenue, there's no way for you to grow. There's no way for you to acquire new customers. There's no way for you to be able to sustain yourself as a business. So you have to start thinking that money is really important. I can't put it on the back burner. I can't just say to myself, hey, if I create great things, the money will come. No, I have to have an action plan to how I'm going to make money. How am I going to make sales? How am I going to attract the right customers and keep my customers? Now, let's talk about money in terms of actual numbers. A lot of us say, I need money. Money is important. I need money to have a successful business. Well, how much money you got to get specific here. How much revenue do you need to make? How much profit are you looking to get? Are we talking $100,000 in profit? Are we talking $500,000? Are we talking a million? Are we talking 10 million? You got to have some hard figures that you're aiming for and you got to break down how you're going to get there. What's the cost of your product? How many customers do you need in order to hit those target numbers? You can't just open for business and hope for the best. You have to have a game plan, you have to have stepping stones, you have to have stages or milestones you have to hit to hit those targets. If you want a 10 million dollar business, then work backwards. How many years is it going to take for you to get there? How many users do you need every single day? How many new customers do you need every single day to get to that goal in X amount of years? Work backwards so this becomes a tangible goal. So you know exactly what your number is, what you're trying to achieve. I need money is too general. How much money do you need? I need more revenue is too general. How much more revenue do you need? Write down the numbers. Now you hear me saying profit, revenue. These are two different things. Of course revenue is the amount of sales you make, amount of money you make through sales, but revenue is what you make after your expenses. So remember, as you're growing your business, you're going to have more and more expenses. Your expenses are not going to stay the same for the most part. Even if you're running a very slim business, a very lean kind of startup, with every new customer, with every new user, you're going to need more server power, you're getting more traffic to your site, that's going to be an extra cost. You have to factor that in. This is especially important if you're not funded. You know, if you're a bootstrap company, if you're a self funded company like ours, the bottom line is profit, not revenue. How much money I actually taking home? You know, if you're a funded company, if you have investors, they want to see growth, maybe revenue is the number they're looking at and profitability is something that they can hold off on if they want to see explosive growth. So know your goals, know you're looking for, know your numbers. There's plenty of apps to track your revenue. Barometrics is one over@baremetrics.com ProfWell is another. These are great apps that will help you track your data via a stripe integration or braintree integration, something like that. It basically hooks up to your pay on processor so it can give you those numbers, your reoccurring revenue, your churn rates, all that kind of stuff. Now, when we talk about money, a lot of people think about physical things like a new house, a new car, a boat. You don't need to want to make more money or to take home more money to have physical things. You may want experiences. You may want to travel the world, you may want to learn new languages in the native country. You may want to be more charitable. You may want to start a charity or not for profit. Or maybe you want to afford the time off to write a book. Some of us would just love to be able to take a year off from our company, from our life, but simply just can't afford it because we're not making enough money. Most people just don't have a year's salary in the bank that they can just use for a year off. So maybe your goal for making more money could be as simple as just say, hey, I need some time off to work on a project I've been wanting to do for a long time. Whatever it is, you got to find your reason, you got to find your why. You want to make more money. And that will be your fuel to prioritize revenue and profit. So you don't put making money on the back burner so that you're on top of this topic. So you don't find your business struggling. Money is like oxygen when it comes to businesses, without it simply can't survive. So if you need to tell yourself or you need to set yourself some external goals to motivate yourself to prioritize it, to take sales and marketing to another level in your business, then do so. Do what you got to do. Guys, I got more on today's topic. But before that, let me give love to today's sponsor. Payroll and benefits are super hard, especially for small businesses. You don't have the time to be an expert at things like taxes and regulation. You got a business to run and old school payroll providers are just not built the way you work today. Luckily, Gusto is making payroll, benefits and HR easy for small businesses. PC Mag and Fit Small Business Business have called Gusto the best payroll for small businesses. They make payroll a breeze. Get this, 9 out of 10 users say Gusto is easier to use than other payroll solutions. Not to mention, 72% of customers spend less than five minutes to run payroll. That's incredible. I mean, if you've ever run payroll before, it doesn't take five minutes. So Gusto is going to be saving you a ton of time. And four out of five customers actually reduce payroll errors after switching Listen, don't take my word for it. Google them. People love Gusto. How often do you actually love your payroll provider? You no longer have to be a big company to get great technology, great benefits, and great service for your team. Focus on your business, not payroll and paperwork. And to help support the show, Gusto is offering listeners an exclusive lifetime deal. Sign up today and get three free months. Once you run your first payroll, just go to Gusto.com MBA that's Gusto.com MBA a great piece of advice I want to pass on to you is that when it comes to money, as an entrepreneur, you need to raise your expectations, but in stages. A lot of new entrepreneurs, when they start a business, their expectations of making money are super ambitious, Too ambitious. They go from not being able to pay their rent to saying, next month, I'm going to make $100,000. When you've never had a track record of making $1,000 in one month. So what you want to do is say, I want to make $1,000 this month, but I want to double it the next month, and by the end of the quarter, I want to make $4,000. Incremental growth, incremental expectations. And you're going to learn to do this subconsciously. Once you start setting your goals like this. And all great entrepreneurs do this, they look back and say, man, I made more this month than I made the entire year three years ago. And then when they hit that milestone, their next ambition is, hey, maybe I can make a year's salary in a week. But the point is, is that you want to challenge yourself in steps. There's nothing wrong with being ambitious, but you gotta get a win. You gotta feel what it feels like to make money and to be profitable so you can be encouraged and know that you can do it. Often what happens is that we set our goals so high and our expectations are huge that we tend to not even try because we're afraid to fail, because we know it's really hard to hit that target. Instead, what I try to say is that, you know, as an entrepreneur, when you start selling a product or a service, just focus on making that first sale. Make one sale and then make that two sales, then three sales and then 10 sales, and then hit that monthly revenue goal and then hit that two month revenue goal and then keep increasing that. You have to learn how to snowball. Momentum is very powerful, but momentum happens in stages, little by little. It doesn't happen all at once. So is money that important? Of course it is. This is business, people. I'M not going to sugarcoat it. You need money to run a business. You need to make money to keep a business going, and you need more of it to keep it growing. So if you're not making money in sales and growth and revenue and profit a priority, please do so today. I respect your craft, I respect what you build, I respect your art. But understand that you're not going to be able to continue to do what you love without that fuel, without that oxygen we call money. Thank you so much for listening to the $100 MBA show. Today's lesson is over, but the episode is not because it's Free Ride Friday. I gotta give away a lifetime membership to one of our courses. This month we're giving away Easy Course, a 30 day course on how to build an online course in 30 days over at EasyCourse Co $500 course we're giving away for free today to somebody who left us a rating and review on itunes. If you want to enter the weekly random drill, just leave us an iTunes rating and review and you enter the draw automatically. Let's see who won this week's Free ride and the winner is. Cracked out on Trivia. That's the handle. Cracked out on Trivia. Cracked out on Trivia says Short but informative. Five stars. I've been listening to a lot of podcasts, but the Hundred Dollar MBA is a great standout. The podcast has great topics and it's very informative. As a business student, it's refreshing to listen to it. He delivers in a way that's more entertaining and informative than a standard classroom. Well, thank you so much Cracked out ontaria for that great review. You are our winner. Make sure you email me over at omar100nba.net so I can hook you up with the Free Ride to Easy Course. If you want to win a free ride, just leave us an iTunes rating and review and you enter our weekly random draw. Thank you so much for listening to today's episode. Love having you with me every single day. Before I go, I want to leave you with this. There's a lot of things you need to focus on in business. There's sales, there's marketing, there's hiring, there's hr, there's personal development. There's all this stuff you got to think about, right? But sometimes we get overwhelmed and we don't prioritize. And sometimes what gets pushed in the back burner is critical. Like making money. Make sure you prioritize the things you need to focus on on your business. Remember, money is the oxygen that keeps your business breathing. All right, I'll check you in Monday's episode, A guest teacher episode we can't wait for. Dan Stone is going to be teaching five steps to building an unbeatable team culture hit. Subscribe so you don't miss it. I'll check you then. Take care, Sam.