My Business Was $1.06 Away From Failing

Introduction

Five years into my business, I found myself with just $ 1.06 in my bank accounts and a dozen staff. I was stressed out of my mind, staying up late with anxiety, wondering if we were going to make it. In this episode, I want to walk you through how we turned our brutally painful situation around. We grew a portfolio of millions of dollars in real estate and found the freedom I truly craved, without being a slave to the business. If a goofy, pale white guy from Ohio can do it, so can you.

Recently, I've talked to several entrepreneur friends who are going through tough times in their businesses. They're working incredibly hard but live in constant financial stress. They're putting money in and taking money out, working long hours, hoping it pays off, but barely breaking even and not taking home an income. I know exactly how this feels—the anxiety of living payroll to payroll.

I want you to hold on and keep pushing forward because real entrepreneurs are made through adversity. When things are easy, we don't become better. When times are tough, we need to think creatively, fight, endure, and grow. Adversity can be a Launchpad for a new version of you.

In 2013, we started our business. By 2018, five years in, we were still living payroll to payroll. I had a dozen staff, was working six to seven days a week, and had outsourced all our profits. We were spread too thin. Although I tried to delegate and elevate, the next month was never the month we would get back on track.

During a family vacation in 2018, everyone was having fun while I was working to make payroll. We had only six pennies between our accounts, with tens of thousands in debt. I was a phony, flaunting a lavish vacation on social media but struggling internally.

Despite these challenges, I remained optimistic. I read 30 books a year and thought that with 10,000 hours of entrepreneurship, I should master it. But without the right techniques, those hours can be detrimental. A great quote by Jim Rohn reminded me that one tweak in philosophy can ruin you in the long term if it's wrong.

At my lowest moment, I knew I had to change something. Since then, I retrained my brain and unlearned bad habits that kept us poor. This journey helped us turn things around, grow to a seven-figure company, and purchase nearly $ 2 million in real estate, which positively cash flows. Today, we're tracking for eight figures in the next few years.

I want to share with you the five practical things that helped me and can help you too:

Create a Better Plan for Your Money: The best way to run a successful business is to be good with money. If you aren't, you will live in a state of scarcity. Check your bank balances daily and allocate dollars properly. A great resource is the book "Profit First," which teaches you how to allocate your money efficiently.
Track Your Numbers Daily: Have unbelievable clarity on the direction you're moving. Use a CEO dashboard to track daily, weekly, and monthly numbers. Make decisions based on transparency, not emotion.
Determine the 20% That Produces 80% of Sales: Focus on the activities that produce the majority of sales. For us, that was ads and email. Get hyper-focused on what works and avoid shiny objects.
Invest in You: Investing in yourself yields faster returns than nearly anything else. I hired a business coach, and it changed my life. Books, courses, and workshops can also help lift your ceiling as a leader.
Kill, Cut, Delegate, and Automate Tasks: Focus on high-leverage tasks. Kill or delegate tasks that aren't contributing significantly to your progress. Use tools to automate processes whenever possible.

If you feel stuck in a rut, here are five things that can help you: Create a better plan for your money, track your numbers daily, determine the 20% that produces 80% of sales, invest in yourself, and kill, cut, delegate, or automate low-leverage tasks. By doing these, you'll push through adversity and come out stronger on the other side.

Keywords

Financial Stress
Entrepreneurship
Adversity
Money Management
Tracking Numbers
High-Leverage Activities
Personal Investment
Delegation
Automation

FAQ

Q: How can I get better with my business finances? A: To improve your business finances, you need to check your bank balances daily and allocate funds properly. A highly recommended resource is the book "Profit First" by Mike Michalowicz.

Q: What is the CEO dashboard and how does it work? A: The CEO dashboard is a spreadsheet where you track daily, weekly, and monthly financial data for your business. It helps you make decisions based on numbers and trends, not emotions.

Q: What does it mean to determine the 20% that produces 80% of sales? A: This is the Pareto Principle. In business, it means identifying the small set of activities or products that generate the majority of your revenue, then focusing on optimizing these key areas.

Q: Why is personal investment important in business? A: Investing in yourself can yield faster returns than any other investment. It improves your skills, knowledge, and leadership capabilities, which in turn benefits your business.

Q: How can I effectively delegate or automate tasks? A: Prioritize high-leverage tasks that scale, like marketing, and delegate or automate low-leverage activities, such as admin work and customer support, using tools and team members.