Don’t get me wrong — I love money.
I love it just as much as the next real estate investor.
Heck — money is a big reason (if not the reason) why most people become entrepreneurs. They want to make more money in less time, with less work.
But although money is great, it can’t, on it’s own, sustain you or your business over the long run.
Let me explain.
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Good business is simple math, right? Wrong.
I used to believe that good business was nothing but simple math.
It’s an easy trap to fall into. After all, running out of cash is the second most common reason that startups fail.
One could argue, then, that with enough cash, a profitable business model, or by doing bigger deals, fewer businesses would fail.
And don’t get me wrong; there’s some basic truth to that. If your real estate business isn’t making more money than its spending, then it isn’t going to last very long. Plain and simple.
Business needs money to succeed in the same way that a car needs gas to move.
But here’s the thing…
The main goal of driving isn’t to collect gas. And the main goal of business shouldn’t be to make money.
Not because money is bad or evil or unnecessary….
But simply because it won’t motivate you. Not in the long run.
Money won’t motivate you…
Money is great.
When you receive a sudden and large boost in monthly income, there’s certainly some inner excitement going on. You think…
Wow! What am I going to do with all this extra cash?
Geez! I’m really successful. Look at me making more money than most of my friends.
If we’re being honest, it feels good, doesn’t it?
Well, for a little bit anyways.
But if you’ve already achieved some modicum of financial success, then you know that feeling doesn’t last very long. Sure — you get a momentary boost of excitement and you might have a better sense of security (if you dumped some money in your savings account, for example). For a few days, you might even feel more motivated to work longer hours and spend more time on sales calls.
But again… it doesn’t last.
Eventually, that success wanes and you have a less profitable month, someones quits unexpectedly, a big and promising deal falls through, or you put a bad property under contract and lose tons of money.
If money is the only goal — more importantly, if money is your only source of motivation — then why keep going? Why not throw in the towel when the going gets hard (and it always gets hard)?
Look — so long as you are the leader of your own business, its success will directly depend on your determination, your grit, and your ability to lead. If your spirits lift and fall with the profitability of your business, then your business is going to struggle more than it needs to.
You must have a bigger reason for building your real estate investing company — a reason that will keep you motivated through sunny and rainy days alike.
Money is great.
But it’s a terrible long-term motivator.
Having a mission will motivate you…
What’s the mission of your business?
A lot of new entrepreneurs think to themselves, Ehh — I don’t need a mission! I’m just going to make tons of money and achieve financial freedom!
But nothing teaches you that you do, in fact, need a mission quite like experiencing, first-hand, the fleeting motivation that money provides. In that mindset, a profitable day is a good day. All other days are bummers, where you’re just waiting and hoping for the next big break.
That’s probably why so many big-name entrepreneurs swear by creating a mission and vision for your business…
But what kind of mission should you create for your business?
Well, one that resonates with you on a deep level. One of the main reasons for creating a mission for your business is to keep you and your employees motivated, so it must resonate with everyone involved. Once set, it should also be a criteria for hiring a new employee, that they understand and believe in your company’s mission.
You could have a mission to…
- Help people get out of debt.
- Help people through difficult situations with empathy and grace.
- Always do right by the client.
Or, by dedicating a portion of profit to charity, you could have a mission that’s almost entirely unrelated to your clients and your business.
You could have a mission to…
- End sex trafficking.
- End world hunger.
- Support American troops.
And there’s no reason your business can’t have multiple missions or “values” — things that you, the business, and your employees all care about.
You might even consider creating a private and personal mission for why you’re building the business — one that only you know about.
- To provide abundantly for my family.
- To care for my employees in a meaningful way.
- To pay off my parent’s debt.
Have fun with this. Your mission(s) can be anything you want. And the more meaningful your missions, the more that they’re going to empower you and drive you forward in the face of adversity — same for your employees.
Money and mission is where the magic happens.
You need food. A car needs gas. A rocket needs fuel. And your business needs cash.
But there’s a big difference between fuel and mission. A rocket doesn’t launch to go find more fuel, it uses that fuel to go to the moon or to float among the stars.
Your business needs money to get off the ground — it needs fuel — but it also needs a more important and meaningful destination.
Why is it launching in the first place?
What’s the end-goal?
What is it trying to achieve?
What are you trying to achieve?
Answer that question and you’ll build a wildly profitable business with an undeniable impact on the world.
Now that‘s exciting.