There are two million black owned businesses in America. Of that two million, only about 107,000 have employees. That is 5%. So 95% of black businesses don’t actually have employees.
These black businesses generate an annual revenue in total of $127.9 billion, compared to $11.6 trillion for white businesses and $814 billion for Asians.
I bring this up because I believe there is a correlation between your income and the amount of people you employ. Not in the way you would think though.
See I think we have it all wrong. We think you scale and then you hire. I have learned that it is the opposite. Hiring will allow you to scale.
A few months back we went through some turmoil in the Options Community. That turmoil pushed me to hire admins. At the point of turmoil we had 1000 members. After hiring admins we have grown our group to 4800 people.
The collaborative effect of multiple people working exclusively on your business will scale your business. Your efforts alone will keep your business flat and only generating job level income.
I had this thought because right now I am taking on another admin. Young entrepreneur me used to do it all myself. I didn’t realize it but I was getting in my own way.
Your job as a boss is to set up the system and then step aside. Then bring in people to run that system.
As you do this, you will start to see the business grow. If you are wondering why your business isn’t growing, its probably because you turned it into a job. Since it is a job, it can by default only generate enough income to support one human.
When you bring in more humans, you compound efforts and amplify your income. You turn 20k months into 95k months. Not having employees and not having income go hand in hand. If you want high income you need more people.
Don’t see it as you earning less money but instead see it as you opening yourself up to making even more money. If you earned 100k as a solo you probably think bringing on an employee means you will make 50k. Not true. You will likely double your income and now you are grossing 200k with 50k expenses and a 150k net income. This is being modest. Now think about if you were to add on two employees. Now you have 100k in payroll and 300k in revenue, you earn 200k.
The kicker is you aren’t in the trenches anymore. You are free. Part of the appeal of business is the massive income and the massive time freedom. You won’t get that time freedom on the job.
How do yo do this? Well if you are a CPA its not your job to do all the taxes and handle customer service and make phone calls and do conference calls. The secret to scaling is hiring things like that out. You have tax pros report to you. You focus on bringing in more clients than you could handle yourself and then getting that work done by others.
One key is to look for a problem that you alone can’t solve. That is how you explode.
Another thing is getting in over your head. When I first opened my office I could afford it, but now I can REALLY afford it. The pressure pushed me to really boss up. Now I am looking at getting a second space and I am hesitant to do so. However, doing so would then help me get actual in person employees in place who do nothing but find deals and find financing. That would 10X our operations on multiple levels.
The problem is I can’t really touch that until I leap into the abyss. I have to leap and then the success will catch me. YOU have to leap and let success catch you. I can’t afford not to take on more expenses. Neither can you.
So the point of this post was to flip your thinking on its head. Its not that you can’t afford to expand, you can’t afford not to expand. Not expanding is causing you to leave money on the table and wealth on the table.
Get people before you need them. Get space before you need it. Get homes you need to rehab before you can rehab them and then grow into your greatness. Get clients before you know how to service them. Your focus needs to be on client acquisition not customer service. Customer service only bogs you down. You don’t see Bezos or Elon in the call center.
During these crazy times I want to encourage you to expand while others are retracting. They are retreating and we are advancing. They are hiding and we are creating and promoting and doing. We will be so much further ahead because we used this time to advance our agenda before the world was ready for us. Press on and the money and resources will find you.
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