Wealth is not finite! It’s infinite and created every day! How? By doing things and creating things that are more valuable than what people are willing to pay for them – maximizing value.
An example: McD’s Burger cost $1 but for you to buy it, it has to be worth more than $1 for you to decide to buy it. The difference between what they charge for it and it’s value to you is the wealth being created. If you would have paid $2 for that burger that cost $1, that’s $1 of wealth that got created. By doing business, both YOU and McD’s is wealthier because you both got something that was more valuable than what you had.
Second example: Employee value – bought at wholesale, sold at retail. There are two value trades here and wealth created between them. The employer “buys” the employee because they’re worth more than what they cost. The customer buys the services of the company because they’re worth more than they cost. Everybody wins in good business.
So, where’s the BIG money? It’s in maximizing value to your customers in each sale and making small money that gets repeated and scaled.
How do you do it? Start with a business budget.
Wait. Actually, start with a personal budget so your bad personal financial decisions aren’t robbing your business. Then, do a business budget.
The sheet has areas for Fixed and Variable expenses – many categories like: Equipment, Sales, Direct Marketing, Taxes, Operations, Vehicles, Tools, Legal and Accounting, Brand Marketing, Professional Fees, Employees, Office/Shop. It also has a place to put your revenue and record your net earnings.
John Israel, the cohost of the Cowboys of HVAC podcast posted a brave “ask” to the community. His doctor has recently recommended he have bariatric surgery to help him manage his weight which will improve his health in several ways. He’s at a point now where he has to do something to get healthy. Click on the link to check out his GoFundMe campaign and if you’d like, you can help John by donating on that page.
If you have questions or complaints, contact me.