Money. It’s such a strange topic. We are supposed to want more of it, yet it is the one topic very few people are real about. We don’t know about you, but growing up, we were taught that it is something you shouldn’t talk about. Well – we are sooooo past that. In this episode, we are going to talk – really talk – about the state of your money.
Money doesn’t have to be this mysterious, super-complicated thing. We will tell you why you don’t have to be afraid of…money. For the next month, our episodes are going to focus on all things money as it related to your services business.
Here’s the scoop from Episode #57:
If you have been an entrepreneur for longer than 5 minutes, you know that the online world is rampant with all these promises of 6 figure incomes and making money while you sleep. We HATE those! Let’s dive into those right away.
Income Claim Marketing
- So what is this? This is the idea that someone tells you that they made X amount of money and they can help you do the same.
- Trust us – this isn’t true. There are soo many variables that affect your income that no one can promise you that.
- Question what you see or hear. You know the old adage….if it’s too good to be true…
- Creative Accounting: Beware those that claim they make a huge amount of money per month. For example, if that money is coming in over a year, that is booked income, not actual income. But that isn’t nearly as sexy when you say it.
- Consider the “Shark Test”. If it wouldn’t make it past the guys in TV’s Shark Tank, then it isn’t true.
- Same goes for your bookkeeper. If they can’t support the accounting approach, then don’t do it.
Aspirational Marketing
- This is less about the income claim and more about what you should want to make.
- You don’t have to want to live the life of luxury. Whatever level of luxury you want is just that – the life you want. Don’t try to make lot’s more money just because someone thinks you should.
Economy
- Everyone talks about the top 1% in the US. To get into that, your household income needs to top $450 K annually.
- That means only 1% of the WHOLE country reaches that! Including the CEO’s of Fortune 500 companies and those who come from wealthy families. So it is statistically impossible that every person online who claims that they are making that much every month could POSSIBLY be telling the truth. Numbers don’t lie!
- Also, just because your company makes multi-million dollars a year, doesn’t mean the CEO does.
Security and Stability
- Treat your business bank account separately than your personal one. Trust us – this is really, really important.
- The more stable you are with your personal finances, they better you are going to feel about the state of your business’ finances. They are very much intertwined.
While this episode has been mostly about theory, this is the foundation you need for the next podcasts. And we encourage you to take some time over the next couple of weeks to look at your bank accounts and figure out what you really want. Stay tuned for more concrete things to help you around cool things like budgeting. In the meantime, check out our express episodes where next time we talk all about your website and the weird and wonderful things you need to consider.
And finally, booking out your services can be fun too! To get our handy Booking Out Your Services guide – for free – you can text BOOKOUT to 44222 (if you are in the US).
Links for this show:
- If you missed any podcasts and want to get caught up, you can click here to find all of our previous episodes on the Podcast landing page.
- Join the Services Business Success Facebook group for all of the latest updates here.
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