We’re fed the BS line and a BS formula of like sales minus expenses equals profit, meaning I make a sale, I pay everyone else in their mother and what I have leftover, hopefully, I get something leftover. That’s how we live as entrepreneurs and investors like we live broke, you know, all the time, we just love that we, we think we’re risky. And we think we’re, it’s like this badge of honor. But it’s like you’re living on the edge all the time. And one deal could put you out of business. And it’s like, that’s not where I want you, I don’t want you thinking you’re reinvesting every dollar when all that code for is like, I’m just gonna pile my expenses up, and hopefully I don’t get burned. And hopefully the deal as long as the deals keep coming in, we’ll be okay.
You know, it’s like, just crazy. Take a breath, like slow down, like, this is what we need to learn the fundamentals of business, which I was just at an event and someone else put it a different way. And I love how they put it. Like, we think we’re in the real estate game, right? Like we get into the real estate investing. And we’re like all we’re awesome at wholesaling, or fixing and flipping or buying the rentals or doing the deals, but you’re not in the real estate game, you’re in the game of money, you real estate is your vehicle. There’s lots of vehicles, there’s lots of different types of businesses out there literally 1000s of different just types of businesses, but you chose real estate as your vehicle to get money.
And if you even if you have hang-ups, like from the past of like, I don’t think you know, like no, it’s not about the money. It’s about the impact and the people I can, yes, it is all about all that. But that’s your why that’s your why that’s not the purpose of the business, the purpose of the business is to produce a profit. That is the sole purpose of it. But a lot of people think they’re in real estate, but they think it but they’re not thinking I that I’m actually playing the game of money, I need to know the rules of the game, I need to know what I can do, what I can’t do and how it flows through, you know,
Mike my hand and how I make sure that I keep it active inside of my business. And a lot of people don’t think that way. So that’s why we get mired in that mindset and start paying everyone else because we’re just like, oh, as long as I can keep buying deals, but it’s not about the buying of deals. It’s about making sure you have a profitable business that you’re running. That’s why I like Profit First, the formula and the you know, the brain space up here where it says and it flips the it flips the formula on its head. It’s sales minus profit equals expenses. That’s the profit first formula. I make a sale I take my profit first and then what’s left over is the expenses for the business tenants making sure to focus on the right things first
