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So here's the deal. One of the things that Layla and I were talking about this morning

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was the concept of making it and Grant Herdone was talking about this in one of his videos

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I think a year ago about how they're like we're just like when do we really make it like he was

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talking to Atlanta like yeah but like when are we gonna really make it and so and Layla and I were

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were thinking about this this morning because like you constantly feel the pressure of like wanting

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to stockpile away more money wanting to stockpile away more and you know Layla was like you know you

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said when we had ex-money in the account you would you feel okay and then that tripled and then

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then you said that would be enough and now here we are and we have even more than that and you

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still feel like it's not enough and so I wanted to give you kind of a back-and-backing approach

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of why I think like why we're confronting this or at least for me why I'm confronting this issue

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and why I'm realizing that it's a hopeless attempt and so the reason that you'll never have enough

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is not because of a greed so there's like there's I think there's a mistake in fallacy and this

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is something that I believe was that like I believe that anybody who felt like there was never

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enough was greedy right but the round is that you never feel like you have enough you always feel

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like you're exposed you always feel like you're vulnerable like for me like I'm very security

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driven ironically because I'm an entrepreneur but like I'm very risky I'm risk averse when it comes

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to making money but once I have money I'm very very sorry I'm risk prone when making money

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and risk averse once I have it like I don't want to risk it once I have it right and so what happens

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though is that the size of the business that's necessary in order to make the amount of money that

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you were trying to make and stockpile away and put away to the side continues to grow and so the

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amount of money that in our minds feels comfortable is typically like I mean at least for me the amount

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of money that I said when I had my gyms of like what I wanted to feel really comfortable was like

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three times the yearly revenue of all the facilities that I had like that's what I wanted in the bank

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accounts feel comfortable right now I I got that first number right but the business that I had at

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that point in order to get me to that number was ten times larger and so then the the the number of

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comfort for that business was again even bigger and so what ends up happening is that although you

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make more money and although you put more away the the burden the costs like the stress cost

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of what that business could do because of the overhead etc and because of your response

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for so many employees so many families by extension like you have all this pressure and it just

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doesn't go away there was an interview with Bill Gates and he was with Warren Buffett they were

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both on stage you can like check it out on YouTube and he was talking about how one of his big goals

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was to always have one year of costs for the company in savings right mind you Bill Gates at this

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point was the richest man in the world okay and he's like and we can in the interview he was like we

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just barely got there he's like yeah I think it's you know like 17 billion right and so just think

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about it for a moment because I think in some ways it's it's incredibly stressful to think about

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the fact that you'll never be free but in some ways it's freeing because then you no longer have

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the expectation and so that's kind of my goal for this is like if I can help maybe a couple people

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remove the expectation of ever feeling like you'll have enough then at least you can identify it

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and then put your attention elsewhere rather than feeling like you're always inadequate or you

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always feel like you need more in order to cover yourself right and so a business is a million

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dollars a year let's say you run a 20% margin right like whatever which means that you're going to make

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$200,000 a year but your business costs $800,000 a year which means it would take five years of stock

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piling right to be able to have enough money to cover the cost of that business if something happened

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right and that's kind of the irrational fear we have is like let's say shit hits the van you know

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I don't want to fire on my employees like when I'd be able to float my business while it catches

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up and while we fix things right that's the idea a business that does 10 million dollars a year

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and you have your 20% margin again it's the same thing maybe you make $2 million a year people

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like actually make $2 million a year I mean we make more than that but I'm saying like whatever

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whatever the amount is right like if you were to say someone like hey you make $2 million a year

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you should be comfortable why are you stressed about money it's because if the business hiccups

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for even okay so 8 million divided by let's do the math this is the back of napkin math right

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8 divided by 12 okay so you're looking at $666,000 a month in overhead right and so if you feel

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stressed because if you were like hey man you're making $2 million a year in your mind you're like

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that's only three months overhead real quick guys if you can think about how you found this podcast

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somebody probably tweeted it told you about it shared it on instagram or something like that

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the only way this grows is through word of mouth and so I don't run ads I don't do sponsorships

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I don't sell anything my only ask is that you continue to pay it forward to whoever showed you or

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however you found out about this podcast that you do the exact same thing so if it was a review

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if it was a post if you do that it would mean the world to me and you'll throw some good karma

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for another entrepreneur like I mean I got like 12 like I'm like 12 weeks and being bankrupt

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right like that's that's how we at least that's how I think you know what I mean like I'm 12 weeks away

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I can cover us for 12 weeks if shit hits the fan right and so that's why a having low margin

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businesses is really really hard because you really never feel like you make it in general so

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for anyone who's on here like always trying to increase your margins and increase your prices like

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be mindful of the profit not just making money like if you sell something for a thousand

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thousand dollars they cost you 900 it's really stressful because if something happens you still

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have that 900 that weighs on you right it weighs on your attention it weighs on your mind and so

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do I have a solution for this besides what I just said about trying to have as high of a

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profit margin as possible so that you have less operational drag so like let's give the 10 million

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dollar example or let's use the million dollar example if you make a million dollars a year but

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you're making a 50% margin right now you're making half a million here in in one year you have

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enough to cover the next year right you see how how that like we always did it was increased the

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margin by 30% right now it's deceptive by saying that we increased it by 30% because we really

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increased it by two and a half acts going from 20 to 50 right so it's deceptive with numbers but

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if you go from a 20% margin to a 50% margin with a 20% margin you feel like it would take you four

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years of saving and not spending any money which let's be real like if you're making 20,000 you're

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probably gonna spend half of it on your life right that would mean so like if you're spending half

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of it on your life let's use that example to go even further with this you're making a hundred

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thousand it would cost you take you eight years to save up 800,000 dollars that would cover you

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just for a year and that's why as entrepreneurs make more money they never feel like they've

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made it it's because you always have more like as the business grows you always have more operational

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overhead that grows with you and so I guess the the ask is if you ever do see one of those entrepreneurs

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just making more and you're like man I can't believe like how is he stressed about money how is she

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stressed about money they're doing so much it also costs them a lot more and so it's kind of like

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the employee who's like well we made a million dollars this year here like dog like there's

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things called margins and like not all the revenue that comes in goes to my pocket as much as I love

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that I mean you have your mortgage which the business pays for right and so to the same extent from

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one entrepreneur to another don't look at the other entrepreneurs that you see and think oh they're

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making two million a year they're making ten million a year if they're making ten million a year

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it probably means that they have an operational drag that's really high and like they probably still

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don't feel comfortable and they probably never will and I think the only way that entrepreneurs end

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up getting out and escaping that is actually by selling the business and having sold businesses

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I think it's the only way that you get out but here's the hook is that the moment you stop feeling

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the pressure that you've felt your entire life you then seek it again and that's what's kind of

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messed up and I was talking to an entrepreneur who has he's got a huge restaurant business that you

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like a hundred million plus a year in restaurant stuff and he's like I've noticed that a lot of

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entrepreneurs come from really like like you know messed up childhoods and whatnot you know like

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really stressful childhoods is like and I think what we do is entrepreneurs is we like try and recreate

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the environment that we had by creating chaos in our own lives and creating the pressure and creating

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the stress for ourselves because that's actually what we were raised in as much as we say we don't

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like it if you look at our behavior it's literally all we do and so sure you can escape the the

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pressure by eventually selling the business and then that's when you get your 5x multiple 6x you

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know whatever and then you also you take away the operational drag so you get the big plus side you

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take away the operational drag you have your big lump sum but then at that point you're like well

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shit what am I here for and then you go back and start doing it again so anyways that is my

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message for everyone you will never make it and be okay with that because it's all part of the

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ride and as a small point of small consolidation or consolation because you never make it we fear

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the whole like what if I have to float my business for a year the reality is that it's very rare

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that you would actually ever float your business for a year because you'd probably end up dramatically

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cutting down on things and decreasing people you know to cover cashburn so as much as like I

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still do this this math in my head when I'm like this is how much the business costs and like I

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want to have that for two year you know I still do that myself but I know that it's irrational

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because rationally if we started being cashful negative I'd be making really drastic you know

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decisions and and you can just look at history of businesses to see that happen people don't

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actually just like let's keep fool up let's keep a full sales team that has no one to sell to

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like it doesn't really make sense let's keep a fool you know all these all these onboarding

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you know people all of this customer service and we don't have customers like you wouldn't really

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be doing that so it is totally irrational but I'm with you I feel the same way so anyways guys

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lots of love hope you hope this message made you feel good knowing that you will never make it

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but that way you can at least put your attention on other stuff and realizing that no matter what

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you're gonna end up playing the game again even if you do end up selling your business because

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we're crazy so have an amazing day have an amazing week drop a like drop a comment and you guys

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are amazing thank you so much for your attention this morning you with fall bye