Monthly Archives: November 2012

Focus on Profits in your Life, Not Revenue

It is amazing that people have trouble understanding in life, the top line means very little but the bottom line means everything.

Focus on Profits in your Life, Not Revenue.


Focus on Profits in your Life, Not Revenue


For some reason over the past few weeks, this concept has popped up in my life in strange ways.  After speaking with the $500 Millionaire, he has been able to shine some light on why it is such a big mistake for people to be interested in the top line, instead of the bottom line.  In other words, people are focusing on Results without taking into consideration the effort it was needed to get the end result.   There is no such thing as a free lunch and costs/risk is something that can drastically change the value of a result.  You need to be careful not to make this common mistake. 

The $500 Millionaire was giving a speech to about 50 people in a small room discussing how to turn a hobby into a business.  It was amazing that the one thing these participants had trouble understanding is when you are evaluating a business, the top line (Revenue) means very little but the bottom line (Profit) means everything.  

For those of you who are not in business, the top line is the number you will hear about most company’s performance.  This is their total revenue, meaning how much money they bring in.  This number can be extremely deceiving because this number does not take into account how much it costs to generate that amount.  The bottom line is the profit of the company.  This is the number that shows how much the company actually earned after costs.  Take the following two companies as examples.  You pick which company you would rather own.  One that generates $1,000,000 and profits $100,000 or a company that generates $500,000 but profits $200,000.

So how does this work in life? Well, it is just like we said before, the bottom line is all that matters.  The Results are all that matter but in order for the results to mean anything, you will need to know what the cost was to get those results.  What Sacrifices (costs) are you willing to make to get that result.  

ImageWhen you look at a venture or a challenge you are looking to take part of, remember that you need to analysis it as if you were investing in a business.  If you see that top line looks great you need to take a second to focus the bottom line.  So your end all goal might be to make $1M but there are some sacrifices you have to make, for some, the $1M is worth those sacrifices   For others it is not.  The top line $1M is still the same in both cases but the true cost might be different and would make the profit of achieving that goal more or less attractive to some people.  

The $500 Millionaire never feels the “Grass is Greener” until he does his research,  You might see someone who has reached great wealth but what was the cost to achieve that level of wealth? Did he ruin a relationship? Did he work 100 hours a week to get there?  You might see someone who has achieved something that you think you want but you have no idea if you are willing to do what it takes to get there.  Are the costs it takes to achieve that goal worth it to you?

The $500 Millionaire has been blessed with the ability and willingness to pay ANY costs that doesn’t cross his morals to achieve a goal he feels is worth it.  Some costs are higher than others but over all, he just finds a way to pay the costs.  Once you find out what the costs are to achieve what you want (which sometimes you do not know until you start doing it) you need to make a personal decision if you are willing to do what it takes.  This is the reason why the “grass is always greener” when you just focus on the top line.  It is easy to see the results but you must also look for the costs.You need to focus on Profit. 

Just so the message is clear, the $500 Millionaire is trying to share here.  There are costs to everything and like you have heard before, there is no free lunch.  When evaluating what you want to do, you need to know the costs before you get involved.  The difference between successful people and unsuccessful people is how they react to the costs.  Successful people are willing to pay any price for their dream.  They usually evaluate it and then shrug their shoulders and say, “lets get started.”   Success does not come easy, there are some large costs to achieve success but if you are strong enough and willing to do what is necessary, you will eventually reach the positive profit, which is the true result and unlike a business, usually the more a goal cost you, the better your feel about your end result.  


How to Prepare Yourself From US Fiscal Cliff and Be Ready for the Sneeze

How to Prepare Yourself From US Fiscal Cliff and Be Ready for the Sneeze.

How to Prepare Yourself From US Fiscal Cliff and Be Ready for the Sneeze

As stated in previous posts, the $500 Millionaire’s key to success is always being as prepared as possible.  You cannot prepare for everything but in today’s society, with the fiscal cliff potentially less than two months away, the chances of the U.S. (therefore the world) becoming a harder place to succeed is becoming more likely   As much as the $500 Millionaire does not want this to happen, he has an amazing outlook on what HAS happened in the past and what will happen in the future.  By reading this, you will understand where you need to position yourself in order to be on the benefiting side of this situation.

ImageJ.P. Morgan once said, “It is best to buy a business when there is blood on the street.“ Well as J.P. Morgan;s blood seems to be all over the street, tough times are still to com and anyone who is prepared for it, not only survives but usually comes out better than going in.  Fortunately history can predict what is likely to happen in the future  While reading this, please remember the definition of insanity, “doing the same thing and expecting different results.”  This post has nothing to do with any political views but just the direction of our country. Not much has changes so we do not see the outcome getting any better.

The $500 Millionaire cannot predict the future but he constantly looks at the past to see trends and this is one that has happened over the past couple thousands of years.  Although this is a trend that seems to happen throughout history, right now it is a little bit different in the US because of the difference in generations (i.e. Baby Boomers, Gen X, Gen Y, etc).  The $500 Millionaire feels that there are 4 trends we need to pay attention to and now more than ever because we are are in the most difficult trend right now  These 4 trends are “The Boom, “The Bust”, “The Squeeze”, and “The Sneeze”.  See if you can tell which trend we are currently in…

Let’s start with “The Boom”.  “The Boom” is when EVERYTHING is going great.  Markets are up, Imageunemployment is low, and people are happy.  This is when college grads get out and get their dream job, the student loans are easily paid off and life is good.  The Baby Boomers (people born between 1946-1964) have a huge effect on all of these trends and due to the large number of Boomers, it seems that these trends are even more extreme than in the past .  The Baby Boomers are so important in these trends because they will change every generation.  They will change everything from the markets to retirement.  Boomers are a generation we need to watch and follow their needs.

One interesting point to realize is that Baby Boomers, for the most part, are changing their lifestyle.  Most should starting to get out of the workforce but due to a down economy have to stay in if they can.  Baby Boomers are changing their needs from product needs, to service needs, to knowledge needs.  People use to buy just for the products.  Before people would trust just the product and the service…Now they need to know EVERYTHING.  It is like the majority of today’s buyers have switched from a group who wanted a product to a group that just wants to THINK we have the knowledge.

Image“The Burst” is exactly what you think it is.  The society is too top heavy with no foundation or support for all the empty promises and assumptions to the point where the bubble/boom pops.  When this pops, it is a surprise to most people but not all.  For years people are fed information about all the good things happening but then, almost overnight, it is all gone and most people are sitting around asking themselves, ”What Happened?”

When you over promise on things that cannot be delivered, or you are buying things that you just cannot afford, then eventually REALITY ALWAYS CATCHES UP.  Let me say that again and please remember this.  REALITY ALWAYS CATCHES UP!  This was easily seen to come by looking back through history or by doing your own research.  This is how the $500 Millionaire  knows how it continues.

Image”The Squeeze” is the next trend.  All of these trends are extremely important and give you multiple options you can take.  During “The Squeeze” you have two options if you act fast enough and if you do not act, you have no options and you get pushed one way or the other. During “The Squeeze”,  society and the economy squeezes out the middle class.  You will always hear people saying, “the rich just get richer and the poor just get poorer”…That is just not the case.  What happens here is the Middle class dissolves and some of them will rise up and be considered rich and some will go down to being considered poor.  Please understand that the $500 Millionaire did not say half will go up and half will go down.  The people in the Middle Class, during this trend, need to make a decision if they are going to rise or are they going to fall.  The Middle class is the one who will be most affected and if you do not take action, you will most likely fall lower than raise higher.

During “The Squeeze”, you have to take control, either in your life or in your business.  Remember, if this trend happens, there will be no more middle class.  They might still be called the middle class but they will not have the buying power like our middle class had for the last 10 years.  You need to position yourself and your business to support one of these two classes, upper class or Lower Class.  To make it simple, you need to be Wal-mart, or Whole Foods… McDonald’s or 5 star steak house.  If your customer base was the middle class, you need to re-evaluate your strategy fast.

“The Squeeze” can take up to 15-20 years to fully happen and anyone who is able to position themselves in good spot with cash on hand and buying/investing power will have much more ability to do what they want during the 4th trend which is “The Sneeze.”  This is when society is fully squeezed out, the classes are divided more into two and then “The Sneeze” creates many strong and tight niches.  These niches are great because any buyer/investor can come in and buy low.  It doesn’t matter if it is a home or a business, this is the time where the well prepared, not the rich, become increasingly wealthy.

During “The Squeeze,” people preparing for this, do everything in their power not to lose their money.  This is when you will see rich people pull money from banks, transfer it into precious metals, and slow Imagedown on their investments.  Again at this time, the poor do not become poorer, they are already poor, instead, the lower middle class becomes poorer if they do not do anything about it.  Then in “The Sneeze,” there are already two classes, upper and lower with no real middle and now the upper class, who have been preparing for this, are able to become more wealthy than ever before while to lower class sits there wondering how this all happened and what they could have done differently.

So what do you do to make sure you are on the correct side?  The $500 Millionaire wants you to know that he does not have that answer and can only speak from experience.  The first think you need to do is find out what do you want out of the next 10-20 years.  This is a very personal decision  that the $500 Millionaire can not make for you.

Media- Study history and do not take anything in the media for what it is said to be.  Do your own research to get your own answers.  Find things that focus on truth, not opinion.  The second a news story stats an option, shut it off.

Know you Rights- Read the constitution and understand what our rights are as citizens.  As a citizen of this country the $500 Millionaire would love all of us to know what especially the Bill of Rights is in the constitution.  The second any right is infringed upon, just see that as another red flag.

Financially- Save Every Penny you have.  Do not stop living but start getting us to living on less.  Have cash on hand.  You do not need thousands of dollars but make sure you have some cash.  Create a 12 month emergency fund (12 months of your monthly expenses) so if you lose your job or business, you and your family have some time to make a decision   Look at the interest rates and uncertainty of the market and only put what you can afford to lose in the market.   Start researching precious metals and the benefit of owning physical gold and silver.

This might seem crazy but the $500 Millionaire always tells you to be prepared for the worse.  Paying attention to this stuff and doing anything to help prepare you will not take much time or money.  In fact it will probably take away a ton of your stress.  You are giving up the chance to take a risk and gain to insure that you do not lose.  If you break even during these times, that is somewhat of a win.  Worst case scenario is you have a large nest egg of cash to move forward once things start coming back around.

Again this is a very strange time of doubt and uncertainty but the one thing that the $500 Millionaire is certain on is that we need to take care of ourselves and we cannot rely on anyone but the ones we personally love and trust.

Please feel free to pass this on to anyone you think might benefit from this read.  Also please like us on facebook and Follow this blog by email on the top right of the screen.

STOP WHINING–Responsibility vs Fault

It should be common knowledge that like is going to be full of ups and downs.  Successful people do not have any less shortfalls, they just handle them differently and tend to get much better results than unsuccessful people.  The $500 Millionaire tends to feel that there is a mindset that you NEED to instill in your head before you are able to really turn downfalls into complete success stories. Some people find fault as if there was a reward for it.

STOP WHINING–Responsibility vs Fault.

STOP WHINING–Responsibility vs Fault

It should be common knowledge that like is going to be full of ups and downs.  Successful people do not have any less shortfalls, they just handle them differently and tend to get much better results than unsuccessful people.  The $500 Millionaire tends to feel that there is a mindset that you NEED to instill in your head before you are able to really turn downfalls into complete success stories. Some people find fault as if there was a reward for it.

It is very easy to point blame when you are in a bad situation and it is just as easy to take credit when you are in a good situation.  Successful people take credit and responsibility when it is deserved, not when they want to.  If you messed up, excuses poor out of your mouth uncontrollably, on the contrary, when you do well, you tend to think it was strictly because of your actions.  This is not uncommon and depending on when you are reading this, you have already seen it or you will see it at some point today.

On concept that the $500 Millionaire wants to share with you is that it does not matter who’s fault it is, it only matters who Responsibility it is.  I wish I could write that over and over again and again but I do not think you would enjoy reading that.   This is a mindset you need to have in order to take control of your life.  In any aspect of life you need to understand that the word fault really means nothing because after all, the issue is only going to affect whoever is responsible for it.

Let me give you some examples.   You working with a group or partner and that partner has a responsibility.  Even if the partner messes up, it still falls on your shoulder.  If you are in a relationship and someone is supposed to pick up the kids, or something as small as doing the dishes, if it doesn’t get done, it really doesn’t matter who was supposed to do it.  Focusing on Faults is a waste of time.  The issue is that it is not done and it needs to be done. If you are at work and an associate was supposed to do something and they don’t, again there is no need to focus on whose fault it is because when it comes to solving the problem, it just doesn’t matter.  What really matters is whose responsibility it is.

Now this does not mean you should be ok with people not holding up their part of a deal.  That only happens once with me before the $500 Millionaire loose faith in that person.  If someone is not true to their word, then the $500 Millionaire does not associate himself with them. Truth, honesty, and loyalty is something that can only be broken once.  This is one way the $500 Millionaire makes sure he is never in that position.

If this was to happen to you, what do you do????  It is not your fault, you were let down, you expected and ASSUMMED someone would do something for you and now you are in a bad spot.  There are only two options you have.  You can accept the position that you are in or you can change it.  It is your responsibility to do this so you have to do it.  No one else can do it.  When the $500 Millionaire gets into a situation like this, he handles it a bit different than a majority of society.  Where as a lot of people will complain about the situation and give ALL the reasons why it is an issue, the $500 Millionaire will fix the situation, and then focus on the problem to make sure it NEVER happens again.  Fix now, ask questions later.

We need to take responsibility for what is affecting our lives.  Instead of pointing fingers, get your hands a bit dirty and start working out the problems.  Too many times, the $500 Millionaire sees people spend more time and energy on the problem rather than on the solution.  We only have so much time and so much energy so please “STOP WHINING” a start finding the solution to the things that are holding you down in your personal life, work environment, or financial situation, and FIND THE SOLUTION.

If you have someone who has a tendency to let everyone else know that there is an issue and why there is an issue without sharing the solution, then please pass this along to them.  If people in society spent more time and focus on fixing issues than saying who is to blame, we would be much better off.  Please pass this along to the 5 closest friends of yours and your relationships will change for the better if you all agree to live like this.