“Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals.” –Jim Rohn
Growth is scary for small businesses. You must know when to grow, how to grow, and if your company can handle growth. If you go through these 7 essential Ps, growth will come naturally, and you will gain “home service millionaire” status in no time.
An interesting fact in the comparison of the terms rich and wealth is wealth is a noun where rich is an adjective. Now, you may not be an English major, or over the years you may have forgotten the significance of these words, but a noun is a specific person, place or thing where an adjective is something that describes a noun. That means that wealth is an actual tangible thing, where rich can only be used to describe it. So, going from rich and having riches to being wealthy stems from the 6 major differences I have listed below.
1. Wealth is a mindset, a way of thinking, so anybody can become incredibly wealthy. If you have a negative belief about your abilities, change it. YOU CAN MAKE MONEY, and a lot of it. Take that first step, believe in yourself, never stop optimizing on your opportunities. The only person that can limit you is yourself. Generally speaking, a wealthy person believes that they can create their own life instead of constantly being stuck in the mindset of their life happens to them. Focus on the opportunities instead of the obstacles. Remember that it is ok to think big, you do not have to limit the size of your dream, and overcome your fears. Through making milestones and planning, no rational goal is unattainable. I have always been a firm believer that wealth is what you make of it. A person who is considered may be financially poor but rich in another way. So, if a poor person can be wealthy, than how you manage your money and how you think of your money can make a rich person wealthy as well.
a. Tommy Mello gave a great example of this in an interview recently. I asked him when he saw his company $50,000 in debt, what motivated him to move forward and keep going rather than just cut ties and accept the loss. His answer was that it was never an option. He listed the options he knew he had, rationally walked through all he could change to move his company towards a profit. Look at his success now, 7 years later, multiple companies, over 300 employees, and known as a home service millionaire.
2. You need to be different than the majority because the majority of people are not home service millionaires. Remember the old saying “walk to the beat of a different drum”? When starting your business you knew to grow it you had to optimize on your differences from your competitors. This is also true in life and finances. The majority of people are not wealthy and do not own their own home service business. Take advice from others, by all means, but consider where it is coming from. Finding mentors in the market you are in, people who have already “made it”, their advice is crucial because they have been where you are. You have to be committed and take action, take control of your life and finances. Make sure that emotions are not in control of your financial decisions.
a. It takes a certain type of person to create and grow a home service business. The main characteristic would have to be you are motivated. You cannot give up and just walk away. Sit down when making financial decisions and rationally look at your options. For me, I love sitting down with a pad of notebook paper and a pencil (so I can make changes if necessary). If you don’t like taking the time to write, record yourself, talk it out. Come to a logical and rational conclusion before making choices that have to do with money and you will save yourself a lot of financial heartache.
3. Instead of thinking you have to work hard from your money, make that money work even harder for you. Make a plan for your money. I’m not saying plan out every dollar, but think about money kind of like an ever increasing web. You take a dollar and invest it and make ten. Then do that with nine more dollars and you have made one-hundred. Investing in your business is a great place to start because it will help make your business more lucrative, but there are other options as well. Even putting money into different options that banks have such as CDs make money through interest. “The rich get richer by continually reinvesting asset profits back into assets.” Robert Kiyosaki. While making smart goals means making them achievable, you may not know what you are actually able to achieve and therefore make your goals without giving yourself credit. Having KPIs in place, having a way to measure your progress may help you change that goal when you see that you are capable of more. Such as you may think that you will be financially free and able to retire at 65 through your business. However, when your
business grows, that end number may come sooner rather than later and you can adjust you goal accordingly. The goal is always the destination. The journey, however, is ever changing.
4. You can’t always live like you imagine a rich person would. You need to be patient, it may be a bit boring, but the outcome is massive wealth. In his book The Millionaire Next Door, Thomas Stanley found very fascinating statistics. “ A typical American millionaire never spent more than $399 on a suit for himself. Over 95% of millionaires have 20% of their income entirely in stocks. 85% were self made and never worked a typical 9-5 job.” As you increase your income through multiple streams or even just through your growing business, your financial choices need to make sense. If you throw a lot of money at “looking rich” you’re not always going to come out actually being wealthy. You need to learn how to own a massive amount of money and manage it responsibly. “Through small, manageable changes to behaviors and slightly different decisions, they can greatly improve their chances of being wealthy as opposed to being rich or poor in their life.” Living within your means can create wealth before actually being wealthy. Focus on the actual price to run your company, your actual price to live, and then ensure that your income is more than that through budgeting.
a. There are many millionaires who live in modest houses driving regular vehicles wearing clothing bought at Walmart or Target. What you don’t spend now you will have later. You do not need a fancy car or a brand new expensive suit to be taken seriously at your business. Your personal characteristics are far more important there than your physical appearance.
5. The more you own, the more massive the wealth. I do not mean materialistically, I mean businesses, passive income streams, side-projects, royalties, investments, etc.. Owning multiple streams of income increases your money’s ability to work for you. You do not need to invest all of your money and time into creating these multiple streams of revenue, but as your business grows, invest your money wisely and keep your mind open. Always know your surroundings and look for opportunities. Make sure that you seize the
ones that will actually benefit you and increase your income stream, and do your research.
a. During an interview, Tommy Mello listed the 14 different companies that he owns. Some of them have nothing to do with the others, but many are interrelated. He owns a truck wrapping company whose main client is his A1 Garage Door Service. However, this company being its own entity can have other clients and have more of an income. He doesn’t have it there just to suit his other companies, making this another revenue stream.
6. You must have better financial literacy and understanding. If you understand all the concepts of money, it will be much easier to produce more. “Your level of success will rarely exceed your level of personal development, because success is something you attract by the person you become.” Ryan Holiday. The concept of “rich” is more of a number such as a bank statement or an amount associated with the value of something, and it comes with no real security. Becoming wealthy, living with wealth means you can live the life you want to live, take the chances you want to take, seize those opportunities other people would never think possible. You are able to live your life your way.
While you are growing your business or even just starting, keep these thoughts in mind. The main determining factors that hold the wealthy separate from the rich are how you handle your money, how you think of yourself and your abilities, the financial decisions that you make, and your ability to plan for the future with your financial goals. Find that freedom that comes with wealth, make the changes, and if you have any questions at all, reach out and I will be sure to answer them.
Here are 8 great books to read that go a little deeper into the subject:
- The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas Stanley
- Think and Grow Rich by Napoleon Hill
- The Science of Getting Rich by Wallace Wattles
- The Richest Man in Babylon by George Clason
- The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
- I Will Teach You To Be Rich by Ramit Sethi
- Rich Dad Poor Dad by Robert Kiyosaki
- The Thin Green Line: The Money Secrets of the Super Wealthy by Paul Sullivan
If you have any questions, please comment below and I will answer as soon as possible. Remember, when making financial decisions, think, plan, work through it, but keep emotions out of it. The money you save today will pay for the future you want tomorrow.