the most important financial rule for
entrepreneurs so got a great question
from one of my youtube viewers love you
guys
Albert wrote in the saying what tips are
financial discipline should I adopt as
an upcoming entrepreneur this is a great
question and Albert the number one the
most important financial rule that you
need to adopt as an entrepreneur is
don’t spend money until you’re making
money it’s easy to spend money ok
anybody you can spend money you are
really good at spending money right if I
gave you a million dollars today you
could find a million different ways to
spend money not everybody can make money
and that’s the key difference as I’m
sure is we don’t start off with a lot of
money ok at least I didn’t if you’ve got
some rich Uncle Joe who’s willing to
back everything that you’re doing and
dump all his money into your company
then fine do whatever you want but if
money is important and you don’t have a
lot of it you guys it’s gotta be used
properly and wisely like it was for me
then you have to make sure that you’re
spending it properly ok so a lot of
entrepreneurs do this say hey I’m gonna
launch a t-shirt company so I’m gonna go
out and I’m gonna buy a thousand
t-shirts and spend all my money on that
and you end up with a thousand t-shirts
sitting in your garage because you
picked the wrong product or I’m gonna go
out and I’m gonna start making videos
and I’m gonna get my own camera and I’m
gonna buy all the all the tools and then
you get bored of it after two weeks and
you stopped and you got this equipment
just sitting there in the corner that’s
what a lot of people do they spend
whatever money they have trying to get
something to go but it was the wrong
vision this is the wrong product it
wasn’t the right thing for them and now
you’re out of money or worse you go and
you take out a loan to try to make this
thing happen maybe you put an extra
mortgage on your house and now you’re
forcing this monthly payment back that
you can barely afford let me give an
example so with my with my videos ok I
make these videos right you watch them
every day hopefully when I started my
first videos were just with my my DSLR
camera
that’s how I started I didn’t want to
spend any money on it until I knew that
I had a way to make money and then I was
committed to keep on doing it and then
as I got a little bit of money from
advertising and as I saw some results
and I got a little bit of speaking gigs
here and there I could justify spending
more money on it and spending more time
and I knew I wasn’t getting bored of it
because sometimes you start something
and then you get bored of it and you
invest all those money into it so I’ve
started spending a little bit more and I
started upgrading my camera and I kept
the cheap I went to Costco and my first
camera was gonna be 250 bucks 300 bucks
and I slowly started upgrading my
cameras through Costco and I always went
to Costco because you had 90 days to
test it out before we had to return it
whereas with the camera stores they only
gave you seven so if I didn’t like it
and I didn’t use it if I stopped having
an interest in it I could always just
take it back and get my money refunded
so I slowly started increasing my budget
as I started seeing results and I knew
it was working and I knew I want to
continue it so now how much have I spent
my so I spent $3,000 on my current gear
setup I have my camera I got my tripod I
have my microphone maybe a little over
3000 I have Christina who edits my
videos hey Christina
I’ve got Monsour who does some research
for some of our videos so I was a team
around me so I have salary to pay that
goes into making these videos happen but
this has happened because I’ve invested
along the way into making my product
better as I got results any company that
you start you can start small you can
bootstrap it up to prove that one you’re
still interested in doing this and to
you firing the way to make money at it
if you can get those two things
happening then it’s easy to justify
putting more money into it okay putting
any money into it I think back there I
venture capital days and
easiest deals to fund were the companies
who just needed expansion capital right
so in other words they already built up
a business they already proven their
market maybe they were only selling in
their local area and now they wanted to
take it nationally okay and they needed
marketing they also do it that’s the
easiest kind of money to raise and they
take the the least amount of equity from
you because it’s not as risky right
because you’ve shown that it works you
shown that it works on a small scale and
now you want to build it out that’s
worth spending some money on the hardest
money to raise is the R&D the early
stage the pure startup because it’s just
an idea and who knows maybe you’ll maybe
you’ll get tired of it maybe you’ll try
it for three months and then decide now
this isn’t for you or maybe you’ll make
a ton of mistakes because you’ve never
done this before you haven’t figured out
the right business model and you have to
pivot and pivot and pivot and pivot
until you find it and I don’t want you
wasting your money all along that path
so the number one most important
financial rule for entrepreneurs is
don’t spend money until you’re making
money believe those are watching like
the video you can support me by clicking
in the link in the description below
leave a comment let me know what you
think and click on my face subscribe to
the channel thank you so much I’ll see
you soon
entrepreneurs so got a great question
from one of my youtube viewers love you
guys
Albert wrote in the saying what tips are
financial discipline should I adopt as
an upcoming entrepreneur this is a great
question and Albert the number one the
most important financial rule that you
need to adopt as an entrepreneur is
don’t spend money until you’re making
money it’s easy to spend money ok
anybody you can spend money you are
really good at spending money right if I
gave you a million dollars today you
could find a million different ways to
spend money not everybody can make money
and that’s the key difference as I’m
sure is we don’t start off with a lot of
money ok at least I didn’t if you’ve got
some rich Uncle Joe who’s willing to
back everything that you’re doing and
dump all his money into your company
then fine do whatever you want but if
money is important and you don’t have a
lot of it you guys it’s gotta be used
properly and wisely like it was for me
then you have to make sure that you’re
spending it properly ok so a lot of
entrepreneurs do this say hey I’m gonna
launch a t-shirt company so I’m gonna go
out and I’m gonna buy a thousand
t-shirts and spend all my money on that
and you end up with a thousand t-shirts
sitting in your garage because you
picked the wrong product or I’m gonna go
out and I’m gonna start making videos
and I’m gonna get my own camera and I’m
gonna buy all the all the tools and then
you get bored of it after two weeks and
you stopped and you got this equipment
just sitting there in the corner that’s
what a lot of people do they spend
whatever money they have trying to get
something to go but it was the wrong
vision this is the wrong product it
wasn’t the right thing for them and now
you’re out of money or worse you go and
you take out a loan to try to make this
thing happen maybe you put an extra
mortgage on your house and now you’re
forcing this monthly payment back that
you can barely afford let me give an
example so with my with my videos ok I
make these videos right you watch them
every day hopefully when I started my
first videos were just with my my DSLR
camera
that’s how I started I didn’t want to
spend any money on it until I knew that
I had a way to make money and then I was
committed to keep on doing it and then
as I got a little bit of money from
advertising and as I saw some results
and I got a little bit of speaking gigs
here and there I could justify spending
more money on it and spending more time
and I knew I wasn’t getting bored of it
because sometimes you start something
and then you get bored of it and you
invest all those money into it so I’ve
started spending a little bit more and I
started upgrading my camera and I kept
the cheap I went to Costco and my first
camera was gonna be 250 bucks 300 bucks
and I slowly started upgrading my
cameras through Costco and I always went
to Costco because you had 90 days to
test it out before we had to return it
whereas with the camera stores they only
gave you seven so if I didn’t like it
and I didn’t use it if I stopped having
an interest in it I could always just
take it back and get my money refunded
so I slowly started increasing my budget
as I started seeing results and I knew
it was working and I knew I want to
continue it so now how much have I spent
my so I spent $3,000 on my current gear
setup I have my camera I got my tripod I
have my microphone maybe a little over
3000 I have Christina who edits my
videos hey Christina
I’ve got Monsour who does some research
for some of our videos so I was a team
around me so I have salary to pay that
goes into making these videos happen but
this has happened because I’ve invested
along the way into making my product
better as I got results any company that
you start you can start small you can
bootstrap it up to prove that one you’re
still interested in doing this and to
you firing the way to make money at it
if you can get those two things
happening then it’s easy to justify
putting more money into it okay putting
any money into it I think back there I
venture capital days and
easiest deals to fund were the companies
who just needed expansion capital right
so in other words they already built up
a business they already proven their
market maybe they were only selling in
their local area and now they wanted to
take it nationally okay and they needed
marketing they also do it that’s the
easiest kind of money to raise and they
take the the least amount of equity from
you because it’s not as risky right
because you’ve shown that it works you
shown that it works on a small scale and
now you want to build it out that’s
worth spending some money on the hardest
money to raise is the R&D the early
stage the pure startup because it’s just
an idea and who knows maybe you’ll maybe
you’ll get tired of it maybe you’ll try
it for three months and then decide now
this isn’t for you or maybe you’ll make
a ton of mistakes because you’ve never
done this before you haven’t figured out
the right business model and you have to
pivot and pivot and pivot and pivot
until you find it and I don’t want you
wasting your money all along that path
so the number one most important
financial rule for entrepreneurs is
don’t spend money until you’re making
money believe those are watching like
the video you can support me by clicking
in the link in the description below
leave a comment let me know what you
think and click on my face subscribe to
the channel thank you so much I’ll see
you soon
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