When I was growing up, the Chicago Bulls and New York Yankees were the kings of sports. While I admired how hard they worked to get to the top, one of the most overlooked actions they took every time they won a big series or a championship was just how much they celebrated. They celebrated hard, maybe too hard some would say, but no one can say they didn’t acknowledge their accomplishments and themselves at the same time.
That is why I am telling practice owners how absolutely critical it is to ensure they recognize their financial victories as they progress towards full financial freedom.
Winning the money game is hard. There are countless barriers of taxes, organizational difficulties, debt repayments, lack of cash flow, inconsistent investment performance, following incorrect advice, and getting lost in financial complexities. There are pulls on your money from so many sources that obtaining control of your cash flow seems more like fairytale then a reality.
So when you ARE able to achieve financial victories, you have GOT to celebrate them. Now when I say celebrate I am not talking about going out and buying a $95k Range Rover because you were able to pay off your credit card. I am simply talking about taking the time to acknowledge yourself for the accomplishment of hitting your financial target.
In our financial planning system, we make it a point to give our practice owners very stiff financial targets. I will routinely plot out exactly how that practice should create revenue, how much cash flow should be retained for the benefit of the household, as well as how much debt should be reduced that year. We help the practice owner track these key stats along the way.
I routinely see practice owners increase their revenue 15-20%, watch their household reserves increase tens to hundreds of thousands of dollars, and watch the same amount in debt decrease just by simply identifying and tracking certain key targets. And when I see an owner reach a target, you bet that I tell him to celebrate. Why? Because celebrating blows off steam, it blows off mental stress that builds up when you are in the grind of trying to run a business AND take care of your financial future. Celebrating is what reminds you that no matter how much pain, heartache, and effort it takes to run a successful practice, it is all worth it in the end because of how much wealth can be created from practice ownership.
So here are few major financial targets you should make sure you celebrate.
- Saving your first $50k in your Wealth Building Plan. If you have followed us at all, you know that EVERY practice owner should be taking 10% of their PRACTICE revenue and systematically setting it aside in a household Wealth Building Plan. It is the single most important action you can do to ensure there is a necessity of income for the business, and a that a portion of the revenue is going to help the household expand their financial resources. I have every practice owner take $1-3k after they have built up $50k and go out and BLOW IT. Have a fancy dinner, take a weekend trip, whatever it is, have FUN.
- Paying off your home or a significant debt. I have never met anyone who went to bed upset because their house was paid off. Americans owe more than 8.8 trillion in mortgage debt. It is a minority of us who have gotten out of the house mortgage trap. So when you pay off the house, take a picture of your last payment, call the most expensive restaurant in your town, and go enjoy yourself!
- Opening a new location. Any expansion of your business is reason to celebrate. I would estimate that less than 10% of practice owners EVER open up a second location. It’s hard enough to manage and grow the first! So if you are in a position to open another practice, make sure you acknowledge yourself on a job well done.
- Selling your business. There is likely no larger transaction you will have than the eventual sale of your business. Many of you should sell your business for 7 or 8 figures – putting you into true financial freedom. I would say that deserves a $20k worldwide trip, a new Mercedes, or a boat bought outright.
Again, the cost of the celebration cannot exceed the financial gains you have made. Don’t buy a $700k lake house just because you paid off your car and saved $30k in your bank account.
We are experts at giving you financial guidance and helping come up with celebration ideas. It is one of our many talents, and frankly, the most fun part of our job. We have worked with hundreds of private practice owners helping them improve their personal and business wealth through a Results Based Financial Planning® system built specifically for them.
EVERY practice owner needs a financial advisor who understands how important their business is to their household, stands by them when times get tough, holds them accountable, and guides them to be the financial hero they always wanted to be.
We want to be your guide. It’s what we do for practice owners like you! Let us guide and advise you on your financial journey – no matter what phase of ownership you are in. Our goal is to empower you to make the best financial decisions which will lead to financial success – and REMEMBER to celebrate those wins along the way!
Do Well Owners!
Eric Miller, Your BFFF®
Advisory Services offered through Econologics Financial Advisors, LLC., A Federally Registered Investment Advisor.