If you are in business or considering a new enterprise, you are likely going to have an income goal. That is you want to make $50,000 a year or $500,000 a year. Whatever the number is, is not really the point yet. Let me explain. So let’s say you’ve got 20 years of work left and you want to make $50,000 a year. So what you really want from your business is a million dollars and that’s fantastic.
Okay. What people normally do and here’s the mistake is they have that goal and then they set it aside and then they get busy with the stuff, the little minutiae of creating the product, running the business, et cetera. And I recently spoke about Instagram. Some people get all wrapped up in Instagram for its own sake. Okay. And not with an eye toward getting that 50,000 or $1 million. All right.
And again, this is where entrepreneurs and business owners go wrong. They get all caught up in the machinery, the gears, the grease, the grime, and often, yes, the simple joy of doing what they do. And I would submit that this is very often a recipe for failure. And here’s why in this hypothetical example, your goal is actually $1 million. If someone handed that to you today, it is very likely you would stop doing the business that with a million dollars in hand and your financial issues or concerns answered for the time being, you might look at your business and say, Oh, that was, that was cute, but I don’t need to do it anymore. So here is how I suggest that you actually think, think about the million dollars or whatever your income goal is. Times the number of years you want to operate the business.
And this is why I call money. The clarifying elixir. When you say to yourself, how do I fashion or construct this business so that it generates $1 million in profit to me, you will look at all the activities differently. You will stop doing some things because they won’t contribute to the million dollar situation, or you’ll minimize the amount of time you spend on basically tidying up, right entrepreneurs, small business owners, business owners spend a lot of time sort of rearranging the furniture. And I do it. I was fiddling around with some details in my digital filing system. How should I store it? How should I name things? Where should I put it? What should I call this font sizes, colors. None of that really helps, uh, the million dollar goal. So think about your total income goal, your total dollar amount, and then reassess all your activities.
If the activity you are considering contributes to that million dollar goal, put more energy into it. If you see things that are again, nothing more than rearranging the furniture or, you know, putting fresh flowers out, I would say minimize your time. There’s an old concept about, you know, you shouldn’t be doing $15 an hour work. You should be doing $500 an hour work. So the exercise I’m presenting here is another way to come at this piece of wisdom. And it is wisdom for business owners. If you have a hobby and you just want to make a couple of bucks in your hobby, that is fantastic. And I encourage you. If you have other income, remember a lot of people do business simply for the money simply to make that dollar. It’s not a hobby. You know, big favorite example of mine are these plumbing vans that run around.
I don’t think any owner of a plumbing supply company or service company really considers it, his hobby that is a reflection of his personal worth. He or she has 15 plumbing, trucks and 30 employees. And they’re just grinding out business. It’s what they do. And it’s a very lucrative business. And in that case, in the case of our plumber, all they’re thinking about is that dollar amount, especially when they have employees, because it’s no longer a theoretical exercise. If they have 30 employees and let’s say they make, you know, $5,000 a month, each $150,000 has to come in just to pay those fine people. And then there’s the cost of that fleet of trucks and all the other expenses. So it’s not a luxury for the plumbing service company owner to, uh, think about dollars. And it is a clarifying elixir, especially for solo entrepreneurs.
Think about, Hey, I want to make a million dollars from this enterprise. What’s going to get me there. How many customers do I need? How do I reach the number of prospects that will turn into those customers to get that dollar amount? It is a form or method of strategic thinking. I encourage you to give a, give it a try. Okay. It really is helpful. And it will help you move both faster, more efficiently and with more joy, cause you won’t be so worried or caught up in silly little things that don’t matter. Okay. Thinking about money as the organizing principle of your enterprise will actually free your creativity and make you happier. And I hope for you, that’ll make you more profitable and get you to, in our example, that million dollar amount, even faster. So you can either make that business bigger or go and do a new brand new business. Okay. That’s all for now.