Hiring Two People Can Cut Your Profit in Half

0:00A million in profit is like it's it's truly it's funny cuz somebody um messaged us like, "I just barely didn't meet the minimum. I'm at 900k. Like I would like to be considered." I was like, "It's the minimum because like if you meet the minimum, you're still probably not big enough, but we will take a look above the minimum. It's actually a minimum. It's not Like cuz if you move it to 900, then a million isn't the minimum. 900 is the minimum. You know what I mean? It's everything's perspective. Like it's like if you are if you have a normal 9-5 job and you hear like $100,000 a month in profit, you're like, "Holy this thing's huge." But like from a business perspective, like you can hiccup and and lose $100,000 a month in in profit. We definitely prefer businesses like two, three plus million in profit as like a comfortable starting point cuz think about it this way. If you want to grow the business, if you have more profit, then you can use that profit to accelerate growth faster.

1:02If someone has a you know 80k a month in in in profit, there's not a lot of cushion. One for volatility, but two for reinvesting in growth in the business. And so if we want to hire two people who are good, it's like, "Oh, well we just cut the profit in half of this business by hiring two people." You know, that's it's tough. And it's also tough cuz founders oftentimes at that size are like this is their primary This is they they make all their money by taking all the money out of the business. And so they then say, "Oh, I'm making half as much money. I'm myself worth has now diminished to 50% of what it was last month." The business is more volatile and so then their emotions are more volatile. And both of those things make for a much more stressful experience for both parties. Especially first-time founders. I would say that's the biggest one, too, It's first-time founders because it's it's your only experience and so you you have failed, failed, failed, failed, failed, failed and then you have succeeded. And so you were like, "I was a failure. I was a failure.

2:08I was a failure. I am now successful. So this business equals my success. And so all of the positive things about your life have come from this business. And so you have all of your eggs in that basket. And so like even though cuz one of the the harder parts with like entrepreneurs is especially when they're like founded and and run the company is understanding the difference between owning a business and running a business.

2:35And those are two separate things. But when your only experience for your entire life is I own business I own businesses and I run the businesses I own. Then when you hear like I am CEO / owner, a lot of people say that. It's like those are two separate roles that are just often combined into one person because they just don't know how to separate them. Like the person who runs the business can very well not be the person who owns the business. If you enjoy painting and you know how much effort you expend into making yourself better at painting, that's awesome. If painting if a painting gets sold one month and doesn't get sold the next month, if your worth is in the effort that you put into the work, the attention to detail, that means that that is under your control.

3:21Whether the painting sells or not, which you can just correlate to profit, revenue, whatever. Those things are more volatile. Espe- And the thing is especially when you're small. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I just took every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling road map that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out.

3:47Again, absolutely free. And since you're business owner, I appreciate you and enjoy.