Business Profit Maximizer #2 – Financial Literacy Made Simple



profit maximizer number two financial literacy what is it funny is the key to lifelong financial success I learned this the hard way I learned this the hard way financial literacy is the key to lifelong financial success on average research shows 50% of the business owners and entrepreneurs do not read the financial statements they don't even though they get their tax return you show them what does that mean I don't know I just pay whatever in taxes my accountant handles that they don't understand financials they just don't and I don't blame them because I use it before I didn't understand financials either and it cost me dearly because I was always a always always been a revenue guy I'm the guy focus on bringing in making generating more revenue revenue is the would solve all problems that was my belief until you know DJ not the co-founder of Benji BG you know then DJ told me that I learned from DJ and did you say whatever I put up in details of you know yeah so DJ told me that damn is that how much money you make is how much money you keep and I thought oh come on buddy we can always make money cuz I'm good at making money I can always generate more revenue and then when he showed me some of the numbers when I'm writing in some of these checks okay maybe we should look at a numbers a little bit just to see when we're running this big check something it's wrong that you know I'm paying everybody else like for any kind of like for this let's say for this project well everybody everybody else gets paid more than me something is wrong here don't like those numbers how many have been there done that before do a project if everybody gets paid more than you right something is wrong something is wrong so Warren Buffett said accounting is a language is what language of business accounting is the language of business accounting is the language of business so if you don't speak the language how do you expect to win the game of business how to expected win the game in business and that's come work coming from Warren Buffett has Warren Buffett earn the right to teach some of this stuff oh yeah oh yeah love one buffer you see today I have a lot of quotes from one Buffett actually so imagine this how many might be non-air playing before okay how many of you been on there playing well you walk up to the plane I see you you know you have your luggage your hand hell and then you walk by paths when you when you enter the plane and sometimes you see the pilot there yes he's greeting the people right say you know welcome welcome to West yeah welcome to wait welcome here's the seat great and it's all good let me ask you a question what if you are walking by and you the pilot said hey welcome shaking your hair and then suddenly the pilot turns over to the cockpit and say look at all those dials man good luck now what would you do you'll be like stop you know get me off the damn plane right so you think in terms of what what does that mean what does that mean so a lot of entrepreneurs they are flying that's the business they're flying this plane they have no idea if they're off course they're at the wrong aptitude and they're running out of field which is cash and they don't even know because they're not looking at the dials they are flying blindly and they don't understand what dowse they need to understand it look for they just look at this stuff like do I push here that I do and they and you wonder why 95 percent of small pieces fail within the first 10 years think about it so the stability comes from knowing knowing what you are doing and measuring your progress write this down if you want to build sustainable business you have to know what you're doing and measure your progress measure your progress in fact repeat after me you can't improve something you don't measure one more time you can improve something you don't measure because you don't even know if he has improved you're guessing you're like I think it is but I'm no good I don't know I hope it is if you won't do a sustainable business here's what I've learned the goal is not to get rich it's just a rich it's actually not too difficult to become successful it's actually way more difficult to stay successful now for some of you I know you are new to business you may be at the initial startup stage you can you're not quite there yet you may not we will understand that the Papa fan this is yet take it for someone I've almost been financially dared twice twice no bankruptcy but I've been offended at almost twice that because I was over confident that I could always make money and then over span over invest made some bad decisions made some bad investments my money my money lost my place so now my philosophy is a much more conservative that I am I used to be this crazy stupid optimist I'm always very optimistic oh yeah it's gonna work yes no problem we can always make it happen yes you know we'll come through now my philosophy is not like that at all now I'm very conservative I look at risk there very differently before I would think of in terms of any deals that I do the first thing comes to mind is how much money would I make how many you think about that sometimes we wait again yes be honest how much money would I make okay now I look at any of you I get involved with how much money cannot afford to loose for how long what is the downside can I live with the downside there are differently I'm more much a more realistic so take that for me it's not to get rich is to stay rich the whole name of the game because you notice what happens is business usually if you study successful guys usually it goes to a cycle how many can see the economy goes through a cycle yes when economy is good a whole bunch of people even stupid entrepreneurs they make money because the tire or at the trend you'll need to be this one you'll make money what happens is you're a ten year period of time and then they lose it and then they I try to build it they try to build again and a whole bunch of money and then it lose it again very very common very common what happens is you what you want to do is you want to minimize it you want to make the money minimize a lot and then go from there and that's easier said than done easier said than done because when you are making money you think you're invisible I've been there I thought my doesn't stink I thought I had a my dispatch wonderboy smart as hell right and that's when you know and then usually usually you lose it way faster than you make it back so the whole point is do you want to minimize you don't want to have so many of these do-overs look at Warren Buffett did Warren Buffett make his money overnight yes or no no he made it through a workshop your time a long period of time he hasn't had that many do-overs it's like even lost very very little very very little now earlier have something to say right share your story actually from this yeah you all make cuz they're all has their come in come in come in come in come on all of us here hear from her you ever know some some painful lessons man but share that with them in Vegas II let me ask you a question when you lost it how long did you stay here okay three six months okay so you can just lose your money you lost one yes yes which is good but it's also the Achilles heel of these times because these people have been very successful times few examples some people that rent some information people that mean almost 100 million dollars in one year and within 18 months of that time they are flat broke okay they're smart they're making a lot of money

18 thoughts on “Business Profit Maximizer #2 – Financial Literacy Made Simple”

  1. इदमेव हि पाण्डित्यं चातुर्यमिदमेव हि ।

    इदमेव सुबुद्धित्वम् आयादल्पतरो व्ययः ॥

    – समयोचितपद्यमालिका

    Transliteration:

    idameva hi pāṇḍityaṃ cāturyamidameva hi ।

    idameva subuddhitvam āyādalpataro vyayaḥ ॥

    – samayocitapadyamālikā

    Meaning of the subhAShita:

    This alone is erudition, this alone is dexterity, this alone is good intellect – expense less than revenue.

    Commentary:

    Not stretching beyond means!

    What one possesses, only that he can expend. What one owns, only that he can give. What one earns, only that he can spend. Isn't this a straightforward philosophy? The poet opines that this alone is erudition, dexterity and good intellect. Although all these, are different facets of decision making, the emphasis here is 'all these have to give the same end result'. There is no choice about it. For, owing to someone is a burden of the heaviest kind. Even enslaving someone may be a better choice, for only the person is pawned for that. But to a debtor, the heaviest interest one pays are his dignity and self-respect!

    The most sensible way to avoid getting into this scenario is – living within one's means. Not stretching beyond what one can afford… Always having some stored for a rainy day… Even ants do that! Shouldn't humans do this more ardently :)?

    Spending is quick, earning is slow. Beware! Earn slowly, spend even more slowly :).

    pada vigrahaH:

    इदम् एव हि पाण्डित्यं चातुर्यम् इदम् एव हि ।

    idam eva hi pāṇḍityaṃ cāturyam idam eva hi ।

    इदम् एव सु-बुद्धित्वम् आयात् अल्पतरः व्ययः ॥

    idam eva su-buddhitvam āyāt alpataraḥ vyayaḥ ॥

  2. Financial Literacy = financial success,
    Goal in financial is to Stay rich for a long period of time.maintain rich success and minimize loss

  3. "Look at all those dials man!" Ha haaa! Great knowledge with a great sense of humour! Thanks for sharing Dan.

  4. How do I get to know when a market shifts or changes? Thank you! ( I’m 17 and I really like your videos Dan!) If anyone could answer I’m happy to listen 👂.

  5. 1:52 I’ve been there. I’m there now. I can see why you recommend these videos to me. AND MAN I need it.

    The pilot analogy made sense. Not running my acquisition cost monthly almost flat lined my business (and my revenue was good).

    The goal is not get rich. It’s to stay rich .

    Wow! There’s so much here. I always joked with people if I’m ever in trouble, I’ll just do some more deals and it’ll be okay. (This mindset is NOT one of a rich owner). Minimize loss.

  6. Well said, Dan. I've been completely over enthusiastic about different business ideas and similar to you I'm now more conservative on where I invest to minimize risk.

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