Foreign.

There are many misconceptions that float around in the business

world, some that become received wisdom. And one of

those is the idea that passion is all you need to make it

in business. You've heard that phrase before. Follow your passion

and the profits will follow. In this week's podcast, I'm

going to be looking at the idea that that concept, that idea,

that thought process is balderdash. I'd say

something stronger, but this is a family podcast, all said and done.

Now, passion is great on its own, though it is

never enough. In fact, it can even trip you up. Your

business isn't built on feelings. It's built on planning,

effort and numbers. Let's crack on and dive in as to why.

Having a planning mindset and sweating the details

is what really gets you the price is what really gets you the

equity.

Now let me paint a picture for you. Just imagine you're in your

car on a road trip. Passion is what's dominating your thoughts,

your excitement about your end destination. Substitute in

what that end destination is. It could be a beach, it could be a

coastline, it could be your friends. Doesn't matter now. Excitement

won't actually get you there if you don't have a map, your car, your it

doesn't have fuel in there and maybe you need some snacks along for the journey.

Now this is where the planning aspect comes in. It's the part where you figure

out the route, the stops, and also the budget you need. In

your business, a planning mindset represents your map.

It's what keeps you on track even when the road gets bumpy, even when there

are potholes, even if you take a wrong turn.

Without that map, all the passion in the world won't keep your

business moving forward. And it certainly won't get you to where you want to get

to. Do I mentioned sweat at the the beginning of this podcast.

I'm not talking about the glamorous, inspirational kind you see in those

motivational videos, One man against the World.

But we're talking about the hard, the unsexy kind. Those occasional

late nights, balancing the books, working how to stretch out your cash

flow, learning from your mistakes, thinking about how you're going to get your next

customer. Think about processes. That's the reality for most

businesses. Now here's the true folks. Sweat gets you the equity.

It's your blood, your sweat, your tears, and that of your

team that ultimately builds value over the time, not the

initial rush of enthusiasm. That rush of endorphins. That adrenaline rush

is wonderful, but you need to Think of this like building muscle.

Now, passion might get you to the gym, but it's the actual turning

up, the repetition, the grind. And it's the small

incremental gains that you make over time that build up that

muscle and that make you stronger, fitter and healthier. Here's

why passion can sometimes lead all of us

astray. Holds hand up for being guilty of this. That's like being

in love with the idea of running a marathon, but you refuse to train.

You imagine visualize crossing that finishing line, feeling

euphoric. Without the miles and miles of preparation, you'll never get

there. Or worse, you'll injure yourself trying. You have this deluded

idea that merely turning up for the race is all that you need to do.

The running of business is no different. Passion will get you excited about the goal,

the idea of running your business, the idea of what it

looks like when you arrive. But it's the planning and the effort that's going to

get you across that finishing line. So how do we actually make sure we're building

something sustainable, something that's going to survive, something that's going to

prosper, something that's going to grow? Well, start with your numbers.

Numbers are your business's heartbeat. They're your best friend in business.

They give you the truth, when actually avoiding the truth might be

something that you prefer. But they tell you what's working, what's not, and

where to adjust. Now, you don't have to be a maths whiz, just somebody who

respects the data, understands the data, or knows somebody who can

interpret that data for you and use it to make informed decisions about

the customers that you work with, where you're losing money, where you can gain

money. Put yourself in a position of somebody who's passionate about making

candles. I'll just sell candles if you like. You love the

creativity, the craft, the glow of a beautifully lit

candle. But if you ain't planned, if you don't cost out the materials, set

realistic sales goals for yourself. Smart goals, if you prefer that term.

Monitor your cash flow. Excuse the pun, but you'll quickly burn

out. Now, passion by itself is like

planting a seed and hoping, fingers crossed, that it's going to

rain. The sweat you put in is the watering of that seed, the

weeding, the daily care, now the planning. That's the blueprint for the

garden. It's knowing how much space you'll need, what kind of soil

works best, and how to rotate your crops to get the best yield.

Effort and planning create equity because they build systems,

repeatable processes, and ultimately value, financial

value. And if you're not in business to make money, then you've got a hobby

on your hands. All businesses, whatever type, they are not for

profit. Private companies need to generate surpluses, need to

generate profit if they're to sustain, prosper and

continuing to deliver the why. So what's

the takeaway? Well, the takeaway is don't ditch the passion, but

don't let it dictate your thinking. Don't let it run your show. Build

your business like an architect or build a house. Passion

can be the inspiration, but your numbers, sweat and

planning are the bricks, mortar and scaffolding for any builders out there.

By the way, I know it's the builders who do the physical hard work, but

the architect does play a pretty important role. Now instead of asking yourself

what am I passionate about? Reframe it. Ask yourself,

what problem can I solve? What transformation can I make for somebody,

and how can I do it sustainably? Because sustainability,

not the excitement, is what builds your legacy. Thanks for tuning

in to this week's Numbers Know how podcast. I hope the episode has created

a new way of thinking about passion, planning and sweat. And it

takes all those to build something lasting. Now, if you found this

useful, please share it with a friend or a colleague who might need a slight

nudge towards purpose driven thinking. Until next time.

Remember, numbers don't lie and neither does the hard work behind

them.