Let's talk about money.

Let's talk about money.

The things that people never talk about.

Yeah.

And as Scandinavians, we gotta say money, money, money must be funny.

Yes.

We can do that.

And it must be funny.

And here's the thing.

People aren't really talking about money in a way that is productive, that helps us run a business.

So let's talk about how and what are the faces where we should focus and how we should focus.

You know what is funny?

I get triggered immediately.

Money is funny.

Yeah.

Money is funny.

And I truly believe money is funny.

Both of us started up as financial coaches, wealth coaches, helping people to build up financial wealth for themselves or passive income streams in their personal life.

So we've been in this field about working with money since 12 years.

13 years now.

Yeah.

Right.

So we've been in that field for so long time.

That means that we've been studying so much in that area.

And I think money is really fun.

And a couple of years back, I went to.

It was a wealth mastery with Tony Robbins, and they made Incantation Ran where they kept saying a lot of different things.

The purpose was to be able to start attracting money into your life.

Have more money and attract more money and.

And start loving money.

Because in business, if you repel money, if you believe money is a bad thing, if you believe money is the root of all evil and only bad people charge, guess what?

You're gonna suffer in your business.

Yeah.

Your business is gonna go nowhere.

Yeah.

As we have spoken about in other episodes, we need to take a stand for something.

And one of the things that we really stand for is making money is a good thing.

Yes.

I want to say that whatever you believe about it will either help you or hold you back when it comes to building whatever it is that you want to build.

The more money I have, the more kids I can help.

I donated money to build schools and to take care of children.

I had sponsored children way before.

I had a lot of money.

And then I got a lot of money.

And guess what I did.

I donated several hundred thousand euros of getting people out of trafficking, giving away Christmas presents to mothers who couldn't afford to give presents to their kids.

Several different food programs.

And here's the thing.

Money is a resource.

And when it comes to building a business, we are business coaches.

We help people build businesses.

We help people make more money in their business.

Yeah.

Because if we take out the money from the equation business, then you don't need a business.

No.

And then we are not good business coaches.

Let's go through the different phases because there are stuff that we need to focus on or that benefits us to focus on when we start out compared to when we've been in the game for a while.

Yes.

For an example, if you start your business, how can I make as much money into my own pocket as profit so that I can buy my first Ferrari?

It's going to take you way longer if that's where you start.

Doesn't matter.

If you want a Ferrari, well, fine, good for you.

But if the profit is your first focus, then it's going to be hard for you to navigate the money journey towards that Ferrari.

And this is exactly what it's about.

Because each stage of what you should be looking at or focusing on is literally just about focus.

Because each stage force you to focus on the right thing at the right time in your business.

According to be able to build a business that makes enough money for you to have what we want to help people build lifestyle businesses where you have freedom to design your lifestyle and have your business be a part of maintaining that lifestyle and building that lifestyle, doing what you love, but being able to do it in a way where.

Where you can live the lifestyle you like and want to have.

So can we go into the first one?

Yep.

Yeah.

So the first one is literally for.

For startup when you're starting up with your coaching, when you're just starting to sell and all of that.

Because at this stage the thing we may measure is contracted sales contracts in general.

Yeah.

How many contracts can I get signed?

It is a sale, but it's a contract meaning that you did not get the cash into your account because a lot of people pay on payment plan.

Because in the beginning easier to sell.

When you are a little uncertain in sales, it's often way easier to sell and help people with longer payment plans.

Because you're probably not good at.

Objection.

Handling or.

And all of these things.

Yeah.

The sales ability is lower because we haven't done enough and we don't have the confidence yet.

Yeah.

Another thing is sure, if you sell coaching for a couple of hundred euros, then more people will buy it and pay in full.

But if you sell coaching for a few hundred euros, you're not going to be able to afford to take the sales calls and do the marketing and do the work and you're definitely not going to get.

Need to go back and listen to a former episode we had about.

Yeah, absolutely.

Yeah, yeah, yeah.

Pricing.

But the most important thing is that you have a decent price that you can leverage once you have that.

You need to make sure that you have an opportunity for people to join either by paying in full or going on a payment plan.

Yeah.

We usually suggest you have both and you have one payment plan and one painful offer.

Expert tips.

You could have a card up your sleeve to have another payment plan to help you with.

Objection.

Handling.

But that is unofficial that you can use.

But it means that we need to present to people an easy opportunity to opt in.

In the beginning, you're going to have less people paying in full and you're going to have more people paying on payment plan.

What that means is that we are postponing the direct cash in the bank by earning it on a monthly basis.

Yeah.

Which is absolutely no problem.

The reason why this is so important in the beginning, I would say when you are below 30 clients, below maybe 50 clients, the reason why it's so important is because you need to build up momentum, you need to build up client results, you need to boost your both capacity, but also case studies and testimonials.

You need to make sure that you are proving yourself.

Yeah.

You're testing your marketing, you're testing your messaging, you're testing your offer.

You're becoming better in sales and you build momentum.

Yeah.

So you help yourself to get a fast start.

The moment where you feel that things are rolling, things are happening, we go to the next step and then we're focusing on cash flow.

How is cash flowing in through our business?

Can I afford to invest further in systems help?

Maybe a va?

The moment we can start focusing on cash flow, we can also figure out, okay, so how can I leverage this cash flow to outsource me as a resource in certain areas.

The reason why we change the focus here is because there's always pros and cons in each stage.

In the first stage is literally about everything you just said.

The problem that can occur and tend to occur especially for new coaches that are not completely certain about themselves is that they sell their coaching on promises where people can pay very little over very long time.

They just want to have the clients.

But the risk is that let's say you have a four month program but you have payment plan of 12 month or more than that because you are just meeting everyone's requirements on what they're able to pay monthly in a payment plan.

So when we shift to the next stage, it's literally focusing on, well, it's fine you have the contractor sales because that means that you are going to get in the money over time.

But now we want to really Focus on getting in cash.

Because now you made the first trainings, you tested the offer, you know people will buy, you know the interest is there.

You know you can work with clients.

And you know they get results.

And you know they get results.

Now we need to focus on you getting cash in your account, your cash flow.

And that's why we look at cash collected rather than contract essays.

We go to focus more on cash collected, meaning that now you force yourself to look into how can I help more people pay upfront.

Get paid more upfront.

So we don't have those long, long, long payment plans.

Upfront or faster?

Yeah, up front or faster.

So you get.

Because money in your account are just way more worth the money coming in.

Maybe later.

Yeah, money coming in later.

You can't really take it to the bank.

No, you can't pay anything with it.

We tend to focus on with our clients for contracted sales because we're working with them closely.

We can always make sure to help them to not make poor decisions and be on top of how can I get as much of that money home as fast as possible?

If you have an idea that money isn't the main motivator for you in your life.

Yeah, fine.

But then I would suggest that you are looking at the money in your bank account as a symptom of the lives that you change.

Yeah.

Because the more you help, the more people that are going through your funnel and getting your coaching, the more money you're going to have in your bank account.

Yeah.

It's a sign of sustainability as well as progress in your mission to help more people.

And also understand that you as a human being, like private you, you might not be loving, have this, like, need or have a drive for making more money, but your business is another entity and your business needs money.

Otherwise your business will not survive.

Yeah, no.

And once we have gone so far that we can see that, okay, now I know how to manage my cash collected.

We're far along in the journey right now.

Then we want to start looking at the monthly recurring revenue.

And monthly recurring revenue is the way it differs from cash collected is that we are measuring the trend of how frequent will money come in over time.

So cash collected is more like a now stamp we're looking at.

Okay, so what is in the bank account right now?

What has come in this month?

Monthly recurring revenue is rather a thing when we are looking over the progression of several months so that we can calculate the predictability of what is going to come in within the next three months, six months, or a year.

Because the moment we can accurately calculate what is going to come in, we can start to make decisions based on what we know will be a likely outcome.

Exactly.

And when you can present that to the bank, then it's worth way more than a signed contract from someone that where the money will be paid over a payment plan.

Because a business that is in that stage can use the leverage of what will come and actually start borrowing money, start making investments, get real partners, have people being interested in investing in the business, depending on what kind of path you want to take.

But I think one of the key things I like about monthly recurring revenue is where we take the focus in our business.

Because I really enjoy the focus.

What we discuss a lot with our high ticket clients and like our top 1% clients, these are businesses who are at a stage where they are performing more than 15k a month and they're growing that to 40, 50k and above monthly.

What happens at this stage is for you to grow the business after this stage.

We need to focus more on selling high ticket.

If you only gonna build a bigger business, say you're gonna build a million new business, a million year revenue year on just selling low ticket, it's gonna be too much work, it's gonna be very high maintenance, it's gonna be a lot of admin.

So the way the business explodes is that we're selling more and more high ticket.

And when you're selling more high ticket, we focusing more on selling like containers, monthly containers.

So they pay a certain amount on a monthly basis.

And when we are focusing on that saying you are selling a program, you're just talking to some of our clients today and they're selling their program for a thousand years every month.

Now that means that the focus now is how many clients do you need to have paying your thousand years a month to get your business to where you want to be again.

Now this forces your brain to focus on something else.

How long time can you keep your clients?

How can you build a business that your clients keep seeing value and keep benefiting from being a part of your business for years?

Yeah.

The next thing though, that is wildly inspiring.

And here's when we're starting to talk about really the things that are defining your lifestyle and it's the next step and then it's when we take that monthly recurring revenue, we're looking at profit.

Yeah.

Here's my personal stand.

I am against building a machine that does as much turnover as possible, you know, that earns as much as possible just for the sake of earning a lot.

It's a very old fashioned way of running a business.

It's high maintenance.

I don't want to work harder.

What I want to do is spend time with my clients, taking care of them, helping them.

I don't want to be stuck with having to do stupid stuff because it's demanded, because I have so much to take care of and what that usually looks like.

And if we're looking at other industries, it can easily be that you have a 2% profit margin or a 5% or a 7% profit margin.

And in some industries, 10% profit margin is considered wildly, wildly good.

So really good profit margin, do you make 10%?

When we made two and a half million euros one year, we had a profit margin of 80%.

Now I want to say that we worked like crazy people at that time.

And we have reconstructed our business because we focused on profit and we focused on making sure that we could also fulfill and live the life lifestyle that we wanted to do.

So it was another work where we rewrote.

What's our lifestyle going to be like?

Yeah, but that's possible.

Two and a half million euros, 80% profit margin.

It's good money.

What it really helps us do is to start figuring out, so what can I build and create that takes away the leakages of costs?

I can build systems that enables me to, instead of hiring more people to take care of something that work improperly, I can make that thing work properly.

Yeah.

I also have, when I'm focusing on profit, I can find people who are experts in their field to help me create what's needed in order for me to earn money by hiring someone, doing it for me.

And they will be wildly happy even if we pay them €5,000amonth, 6,000, 7,000, €9,000amonth.

They are a money making machine because they're installed as a person in our system, our business.

The biggest single thing in your business that will make either give you a great profit margin or very bad one is what it cost you to acquire client.

Yeah.

Customer acquisition cost is the biggest one.

This is why we speak so much about leveraging organic marketing.

We've been doing both.

When we did 80 conversion rate or profit margin, we did organic marketing only.

Yeah.

When we started running ads, profit margin went down because we have an ad spend.

And I literally met someone earlier this month who has a business where she's running events four times a month and she's paying someone to set up ads to fill the events.

She's paying ads to Run the events.

And two weeks into the month, she spent more money than she made from selling on her events.

That's a minus.

Every time you get a client, it costs you money.

Cost you money.

Every time you make money, it's literally either I have an ad that sends people to a thing that I've created or I run ads to bring people closer to hang out with me.

And when we use ads for leverage to get people closer to who we are so that we can control all narratives.

Yeah.

Then we can have our organic marketing fuel that really.

So you use ads to get people into organic field and you don't use ads to just like get cold people into your funnel and hope they'll buy immediately.

That's going to be another episode.

Keep your money.

We build lifestyle businesses.

The lifestyle is built with your profit.

Not by making more money.

Top of funnel.

Not it's not about revenue.

It's profit margin that creates your lifestyle.

Yeah.

100%.

That is what gives you the freedom of choice.

Yeah.

The more freedom of choice we have, the more we can invest in making sure that our clients are doing well.

Yeah.

And when it comes to business and what this episode is all about, we got to understand the money is something that we are forced to love when we are running a business.

The freedom.

Money will give you the time, money will give you the opportunities, money will give you the experiences.

Money will give you to kind of.

Top that conversation off.

Unfortunately, there are so many coaches out there, business coaches that are helping people to build that kind of funnel because people understand ads to a certain degree.

They understand and I see a lot of those kind of viral content right now.

That is faceless business.

I don't need to show my face or you don't need to show your face.

I can help you set up a system and it's going to run and it's going to be a money machine for you.

I'm never going to avoid the topic to say that building a business is one of the most rewarding adventures that I've ever done, but also one of the most challenging and it is the most rewarding because it's the most challenging.

And now when we have profit, now part of that profit, of course we want to save for rainy days.

Business have cycles.

There is seasons in a business and we can't foresee the future.

So save a little bit for the winter season because it might come to your business at some point.

So it's good to have a little bit extra but also take a part of that profit and Start investing that in something else that gives you passive income streams on the.

On the side.

This will give you a chance that if you one day decides that you're gonna retire on your business because you can't do it anymore, for some reason, it's nice to still having the revenue and still having the salary coming because you build up a system that gives you the freedom no matter what.

And the last thing that I want to say is the big part of the reason why our life looks the way that it looks right now is because our business took care of all of our clients.

It helped us make money.

We were able to buy this fantastic ranch that we are spending our lives in that we love and adore.

And every time we aren't working, we're building something outside the best lifestyle that I could imagine.

At the same time, we were able to buy this without selling the other house.

And the other house is where the kids grew up.

So there is some sentimental value to it.

So that was a nice thing.

But the other opportunity is that it's a really good, functional house and we have that for rent.

So eight months out of 12, we have that rented out.

And someone else is property now.

Yeah, and someone else is taking care of it.

And it generates at least €20,000 a year.

So even if something were to happen, we would still be able to survive.

Both houses still here because all the interest of all the loans in the bank and all of that is covered.

And I think what I love about the money game here and everything we do is building blocks like you keep stacking.

It's one small step at a time.

So we put down below the millionaire method.

But I'm gonna add one more thing.

I'm gonna add a link to be able to download our calculator to see how many clients do you need to live the lifestyle you want.

Yeah.

Oh, yeah, that's cool.

Yeah, yeah.

So that you can reverse engineer your journey and get all of it.

If this episode was something of your liking, please leave a like and don't.

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Next Wednesday.

Take care, guys.