Episode Transcript

Hey what’s up, everybody, welcome back to THE a.m guys. Welcome back to five minute rants.

So today guys, I want to talk about monies. I want to talk about it last episode, but I actually end up talking about the myth of professionalism. It’s at least What I call the myth of being professional. Anyways, I want to talk about monies. I think monies are something that’s super important, especially if you’re young in business. And if you’re older in business, this is something you honestly should know. And probably do. By now, I’ve also met a lot of people who are older in business. In other words, they have years in business who don’t do this. And they make enough money to get by and not do this.

But looking at your finances, and just checking your money having a meeting, or you’re talking with your partners, once a month minimum, and I think that is very few and far between is like necessary, right? I do it more often than that I’m looking at monies once a week, I’m looking at monies once a week. And Andrew and I are meeting to talk consistently about that. And Here’s why. The purpose of business is not just to make money, the purpose of business is beyond that, because you want to create something in your life. That is beyond the money. You want the money in order to buy What you’re looking for in life, whatever it is.

For a lot of people, it’s status. It’s nice food, it’s all these things. I think those are shallow, personally and shallow reasons. But there’s this desire of something that is driving normally, oh, it’s proving them the best is out of competition. We’re playing the game of who has more money wins. It’s like, okay, cool. I don’t know how you play that game, when not everybody’s playing that game, like how do you play basketball when people are playing soccer, too, and tennis all in the same place. And it’s not all the same game to everybody. But the point of What I’m trying to make is this money in, in the business is driven by something greater than itself.

But as a result, you still have to look at the money as an owner, if you’re young in business, you need to do the accounting, like your fresh start out, do the accounting, don’t, don’t just go out and hire an accountant. Learn how to categorize your expenses, learn how taxes work, get financial knowledge, because when you have financial knowledge, you are going to be able to understand how the company is working, you’re going to be able to make better decisions, you’re going to be able to know where you need to invest, right?

Like you talk about, you’re able to begin breaking down your finances right you bring in breaking down p&l is by employee p&l is by offering p&l is by processes, right? What profit and loss is being generated by all these different aspects of the company, you’re able to see that you’re able to see your cash flow, and you’re able to see cash on hand, which is different. And you’re able to see profit, which are different, all three of those things are different. And you need to know those things. And if you’re young in business, just starting that stuff, you need to learn read books about money, it’s going to be some of the most boring stuff you’ve ever read. But it’s the most important stuff you’ve ever read.

And there’s a reason why they don’t teach you money in school. And one of the main reasons is nobody really knows about money. Nobody really knows how money works. And money is really simple. It’s not complicated. It’s made complicated. And people make it complicated. Because honestly, everybody’s scared of money. And it’s wise, like we’ve talked with a lot of business owners, they don’t know their numbers. They don’t know their books, they get we get hired for projects. Cool. What’s the projected ROI of this project? I don’t know. That’s a great question. I haven’t thought of that. You’re you’re paying us a good bit of money to build something for you. I think ROI is important. Right? You don’t just want to buy stuff and not have a return on the end. You have people to feed you have lives that are entrusted to you. People are partnered with you to put food on their table pay bills, to really do all these things, right?

I think as that’s important to know, but that comes from, I don’t look. And I’m not saying you got to do anything crazy. And if you’re older and business, don’t look, you start looking if you really want to start be successful. Look, look, it doesn’t matter if your numbers are great. It doesn’t matter if they’re bad look, because the thing is if you start staring at whatever needs to improve, you tend to start improving it. So you’ve always heard the term people like Oh, focus on this focus on that focus on this. One of the biggest keys to focusing is it’s this simple, just look at it.

Oh, I need to do this project. Okay, you just pull the project up in front of you and just look at it. I’m not telling you to do any work yet. Just look at it. Oh, I need to focus on money. Okay, pull up your accounting, pull up your bank accounts, pull up any financial statements and just look at them, and then have a conversation and then before you know it, you’ll have a bunch of action steps. Oh, What if we did this? What if we improved and so looking is the first step and so that’s What I’m saying.

It’s What the whole episode is all about. Just look at your money and for your personal life. Look at your money. Right? I don’t care if you agree with Dave Ramsey or not, but you know What? He’s got a great budgeting tool that helps you look at the money every month, every week, and then you know where stuff is going and it’s worth just looking.

Anyways guys, I’m way over. So I’ll catch you later. Peace.