Buy the Damn Corvette
As business owners, we work so hard. We often go without and sacrifice our time and energy to feed our business. We hope that with enough care, nurturing and fuel, we can grow something that will one day take care of us as we have done for it. In many ways, it becomes our baby. Not just any baby, but our first baby that we sanitize everything for, wake up every 30 minutes to make sure it’s still breathing, and the one that we won’t consider letting anyone else hold.
Coming from a firstborn baby business owner, I was once guilty of being that overbearing monster that was the best mother my business could ever have. Now, in year five of my counseling business, I’m looking at things from a much different perspective. I have created and captured systems that lead to a stable and secure company that essentially runs itself. Thanks to the implementation of one money management system I am now making decisions that are much more fun than the ones I used to make.
Straight from the mouth of a dear friend, colleague, consultant, hashtag queen, and #badassbosslady….
“Buy the damn corvette!” Tara Vossenkemper, The Counseling Hub
Have you ever talked yourself out of a purchase because it wasn’t practical? Since I’ve become a responsible adult, making choices to get me where I wanted to go, there has always been one thing stopping me from spending money. I always thought the way to happiness and how you move forward in life was through conservative and practical choices.
Fear is what stops me from swiping my credit card or writing that big check.
When you’ve hit rock bottom financially, or you’ve grown up just getting by, you begin to avoid risky spending out of fear of getting back to a place that you don’t want to be. I was in a situation recently where I was buying a new vehicle for my family. With the addition of our third child, space became a necessity, both for all of our crap and my sanity. As I was sitting at the dealership completing the paperwork on my bus (not really but pretty much), I caught the glimpse of something beautiful. She was a white corvette with red leather interior, basically screaming my name.
I’m not going to lie, I was conflicted. Before I knew it I was telling the salesperson to sell me that Vette. Why? I have no freaking clue, but I wanted it. All my decisions for the last 6 years were practical, conservative, based on fact and data and this potential purchase was based on nothing of the sorts. The salesperson looked at me then looked at my husband, probably to try and determine if I was serious or just plain crazy. Trevor and I had never exchanged words about this car, yet he knew I meant business. “Man, she’s considering it. I can see it in her eyes,” is what he said.
Two years ago I would have never considered such a thing. The main reason being that I could barely afford my lease payment, let alone a brand new car. The reason it’s so different now was because of something I started doing back in December of 2017; something that I have been committed to and diligent about ever since. Can you guess what it is?
I implemented Profit First, a money management system into my business.
Getting ahead in life isn’t all about making more money, or even keeping more money. It isn’t always about being practical, it’s about doing things that inspire you, make you feel free and alive. I have been the most energized and fulfilled when I am confident in the decisions I make about money. When I operate from a pre-defined system that tells me when to save and when to spend. Profit First has helped take the guesswork out of my spending. Because of the determined accounts and the allocated percentages for each of them, I’m able to look at each account individually and make a smart decision about my spending.
The Profit First system says to create a separate Profit account that will receive a percentage (that you determine) of your Top Line Revenue every two weeks. Every quarter, you as the business owner, will take 50% of what’s in that account and use for your own personal fun money! When you reach a point in your life where you see something you just can’t live without, there are no asking questions like, “Can I really afford this?” “Am I being selfish?” “Should I pay a bill instead?” These questions are no longer relevant because you have pre-determined that this amount is going to be taken by you and used towards something that makes you feel alive and fulfilled!
Will I catch h#ll if I show up in a new corvette? Of course. Do I care? Not really.
I’ve never really known much other than being in the lower-middle class tax bracket. It wasn’t until about five years ago that the business stuff started to click for me. I began to understand how to structure a business in a way that would generate a profit. I began to understand that just because you own a business doesn’t mean that you know what you’re doing! I also realized that just because your business generates a lot of sales (income) doesn’t mean that it’s profitable. Using Profit First has helped me put enough pressure on all my businesses to run them independently of outside help, meaning that I force my businesses to rely on themselves to function. I don’t fund one business with another one or use loans to make sure payroll gets met. Profit First has helped me understand the percentages that I need to cover my operating costs, pay my staff, contribute to owner’s pay, be free and clear on taxes and put enough profit back to make it all worth it.
When I look at it now, the purchase of a corvette would symbolize perseverance and determination. It’s not meant to be flashy, or say, “I’m rich” because I’m not. It’s not there to say “I make poor financial decisions” or “I’m neglecting my children’s college fun to ride in this beauty”. In fact, it’s quite the opposite. The purchase of a corvette says, “I am very responsible with my money, so much so that I am able to pay cash for this machine and not feel a bit guilty about it.” So what should I do?
Thanks, Tara and all the amazing #bossbabes in The Group Practice Exchange who were so supportive when I initially posted about the corvette… “Buy the damn corvette!”
To implement Profit First into your business or to work with me and my team individually, check out our consulting packages!