I grew up in the construction business- literally. My father had a subcontracting business and fact that he was in the construction business affected many things growing up. He would be fixated on the weather. The weather determined the schedule and a large portion of his life. Also as business was good and bad it influenced the family purchases and the grip on the family purse strings.
My father taught me a great deal about business and how to take care of the customer. He had a great reputation and worked for some of the most respected builders in the business. He also taught me about the importance of doing a great job and letting your work product speak for itself.
I remember him telling me- “Don’t worry about the money. Do a great job and the money will take care of itself.”
This really made an impression on me and it has been one of my guiding principles. Make the customer happy. If it costs you some money, don’t sweat the costs. Do the right thing and the money will follow because of your actions, your commitment, your heart. Don’t worry, it will happen naturally. Don’t be a money wart!
This is really simple business logic. However, do your actions really support the principle that money is not your primary concern in your business? Do you get hung up just continually counting your money like a Monopoly game just obsessed on the financials? Is the mark your trying to hit always a financial target? Here are some questions to ask yourself:
Where do you spend your time? Do you spend your days pouring over cost projections. profit and loss statements, cash flow projections, etc? Yes, we are in business to make money and you must be good stewards of the resources you are blessed with but at what percentage of your time? Are you completely consumed with the numbers? You are just counting your money.
What is your focus? Do you spend significant company time and resources on improving your product? Are you an innovator and continually looking for ways to improve your product? Or are you satisfied with producing the same acceptable product because being an innovator costs money. You are just counting your money.
Is it costs or revenues? Do you focus on the cost side or the revenue side? If you are continually trying to squeeze costs you may be a money wart. Working the revenue side is about expanding your business and your influence in the industry. Increased revenues have a way of taking care of financial issues. More revenue helps with overhead and fixed costs. Expanding revenue will reduce the need to squeeze and reduce the pressure on the company and it’s clients. If you are a squeezer, you are just counting your money.
What do you spend on product improvement? If you are not improving your product you will eventually be out of business. What are you doing as a business to get better? Are your improvements always focused on reducing costs. Are you recognized as a market innovator? Focusing on your product and being a leader requires resources. I was recently in Rochester, NY, the home of Kodak. What happened to Kodak? They were convinced that digital photography would never be better than traditional paper photographs. Look what happens when you fail to be an innovator. They were just counting their money.
Are your employees well compensated? My father also told me, “Don’t look in your employees pockets. If they are making good money then you will too!” Again, simple logic, but the employee pockets can be an easy target. You can always find cheaper help and squeeze payroll. But, what is the cost? If your employees are not making a superior wage, then how can you expect superior work. If you are known to pay better, the best of the best will end up coming to you to find work. Trying to save on payroll is just counting your money.
So, like the saying goes, where you put your time is your treasure. Are you continually focused on money? This is a sign of plain and simple greed. Life is not a race to make the most money. You were put on the earth to serve others by producing a product or providing a service to address a need. The goal must be the product or service first. What if your mission statement read “Make as much money as possible by controlling costs and providing a mediocre product.” Look hard at this and determine what is truly first in your business! Obviously, costs and money are important. Just don’t get them in front of everything else. Don’t be a money wart. Produce a great product first and the money will follow. It always does!
So what do you think? Do we get hung up on the money too much or am I full of you know what? Click on “leave a comment” or click “like” if you agree!