ElizabethPW

Now as some of you know, my life situation is changing so this plan will need to be adjusted a *bit* but the principles remain the same for me. :) To be direct, my business will now need to pay my bills ... but I still do plan to run myself lean so I can keep building the business. :)

OMG - the out takes at the end oare PRICELESS! And you are so are stinkin brave to stand up and tell the truth. I'm kinda over people touting 6,7,8 figure businesses because while that may be true - and you nailed this - what they don't tell you is how much the SPENT to have that 6,7,8 figure business. Here's to keepin it real girlfriend!!

Ok, Elizabeth, I have always loved watching your videos. Always real, genuine, and to the point. This has to be the BEST one so far! Thank you for being "courageously authentic" as I have always encouraged my people to be. YOU ROCK! Keep it coming...this world needs more truth spoken.

Wow! Very thought-provoking video. I disagree with parts and agree with parts.

One THANK YOU for saying outloud internet marketing's "dirty secret" which is that revenues have NOTHING to do with profits! Everyone shares their revenue numbers (myself included) but no one shares the profits, and there are definitely many "success stories" with large revenues that are in the hole. I actually think in the women's market this is is somewhat due to the over-emphasis on delegating, VAs, coaches and consultants (hiring a small army waaaaaay before you're ready) but that's a whole 'nother rant. ;)

Also thank you for being frank about the financials of your own business. It's very common, and I wish it was something that was talked about more so that we can help more people out of it.

The one issue I have with what you're saying here is that there is a difference between being profitable overall and the amount of money the owner takes out of the company. I believe online businesses should strive to be profitable ASAP, within the first 6 months or year just due to the low-overhead nature. I'm afraid some people will think that they aren't personally taking a draw and use that as an excuse for not being profitable, ya know? Because I think when you are in the black that will scale and when you're in the red that will scale.

For many (like me!) not paying myself is simply not an option, I don't have any money coming in from anywhere else or anyone else to pay the bills. Which I think can be a great thing because it does help to light a fire under your butt to make money.

I agree that having your back against the wall and *needing* to pay yourself is the "not having a plan B" that makes many businesses successful. And, that's what I'm experiencing now myself. But there is a difference between paying yourself a living wage and thinking that you should be making $300K this year.

I also am experimenting with paying yourself a small amount of salary, even at the beginning when you are not making much revenue, as a great mindset tool. Even if it's just $1, because it trains you to think about profit & think more carefully about expenditures, about what's strategic and where you are spending money on false hope.

My point is also that people have wacky expectations about how long it takes - to be profitable, to make six or seven figures. When it happens "overnight" it actually doesn't, that person has been in business usually for 7-10 years.

On your last point, I think that is why most businesses fail after just couple of years.
Also, reinvesting in yourself helps you to be ready in the business world.
Laura you are correct there are some cases like you and me that we need to do it. We just need to have realistic expectations. Thank you for sharing the video Elisabeth.
Ladies, keep the good work.

Very reaL and powerful. Honest. Straight forward. Above all valuable

Elizabeth - Congratulations to you for sharing this information! There is such a stigma going on online with all these people touting their million-dollar businesses and their six figure one-day paydays and YOU'RE RIGHT! No one actually talks about their actual net profits - what we never hear about is how much money they spent and invested to get there. Also, I wouldn't necessarily say you haven't been profitable if you're making money and re-investing it. Maybe on paper it looks that way, but you need to remember to pat yourself on the back for how hard you've been working and that you are bringing in profits, but you are choosing to reinvest them in yourself and your business.

Like Laura, I also rely on my earnings to pay my bills. But there is a difference between those of us who only pull out the minimum of what's needed, and those who spend like crazy and "live large for show" ... frankly because the habits of the latter may be their downfall.

Love your videos, your honesty and you're "keep it real" approach. Any lady who can say freakin' and pissed off in a business video rocks in my book :)

Thanks Jen! And I agree, I was profitable (or could have been profitable) but chose to take the $$ and reinvest it in the business, so that *is* different. :)

Elizabeth~ I really enjoy your videos. Thank you. I'm wondering if you could expand upon not taking a profit vs. paying yourself enough to sustain bills, etc. And....more importantly, when does one take the "leap" into their entrepreneurship if they're working. I work with those that are in jobs they hate and want to be entrepreneurs. I'd love to hear your story (or thoughts and musings) on when to transition.

Lisa
P.S. (actually a true post script - ha!) I just read through all the comments and appreciate the clarifications. Next video maybe you should discuss paying self, and when to take the leap.

Thanks for sharing your views as well as the way you've run your business. I read Gary's sample chapter and loved it. It just reminded me how much we need to put patience and hard work before we expect results.

Thanks for this great reminder, Elizabeth, that at the end of the day all this work we put into our businesses must have some MEANING. Otherwise we're wasting precious time and energy.

As I like to say, inspire others as you're inspired and we'll all grow together!

Cheers,

Sophfronia

Awesome video, Elizabeth! And so true. I was at an internet conference recently where several of the speakers admitted spending tens of thousands of dollars before actually making money--and it was so refreshing to hear (although probably scared the pants off all the newbies in the audience, but that's a good thing!).

It is more challenging when you're totally supporting yourself so I'll be curious to hear how you adjust for that. One thing I have learned in the past year though is to take a hard look at what you're "investing" in for the sake of the business and WHY you want to invest in it. Looking back, some big expenses were too tied into just trying to feel more confident--rather than whether it was truly a good opportunity for learning and/or meeting prospective clients.

Tracy - yes, already cut many expenses that were "hope this will save
me" stuff. A few things to cut that didn't work out, then it's about
getting all this stuff launched and really taking a no excuses
approach (as Fabienne would say)! I'll keep you all updated! :)

Jeez - for REAL, Elizabeth. When I first got sucked in to the world of online marketing, I was so excited about making big bucks fast and easy. After two years, I've finally realized how much dog and pony show there is out there and much money people are SPENDING to make themselves appear successful or to create the big paydays. And it is such a burden off me to realize the "overnight" successes have taken 10 years to "make it."

A great, honest video. Thanks for sharing them. Oh, and thanks for sharing the outtakes. They are a HOOT.

Exactly Angie!

And that's another one of the big issues, the magic pill that made the
guru the money was pill #87 for them and worked 18 months ago (might
as well be 18 years). You have to create you own magic pill. :)

Some useless trivia to help make this point.

Everyone knows and loves WD-40. The WD stands for Water Displacement (it's not a lubricant) and the 40 stands for "take 40", as in the first 39 recepies didn't work.

Gatorade was developed by a doctor who was trying to better hydrate athletes. His first recipe tasted so bad people compared it to urine. A football team agreed to help him work up a drinkable recipe. After several iterations the Florida Gator's gave him a thumbs up. In gratitude he named the recipe after them.

Under the leadership of Thomas Edison, General Electric tried 10,000 different filiments before they had a light bulb that would stay lit. It took 12 years.

Kevin - yes, I love that Edison story of how he failed 9,999 times
before he succeeded. And that's the big misnomer, even the big dogs
are launching *tons* of stuff, even up to 80%+, that fails. Just the
small percentage succeeds. There's a big mindset shift there, to
launch tons of stuff knowing that only a small percentage of our work
will make the difference. :)

Elizabeth,

Love the outtakes :)

Gives me a feeling that you're a friend, not just a business coach who has-it-all-together (which is almost never true!)

Thank you for sharing so transparently, inspirationally, and helping to lift up the standard!

Elizabeth... Thank you for this video. Your point is dead on. Of the many business owners I've met over the past five plus years, many who started with a "get rich quick" mentality burned out and are now shut down. The ones who seem energized by what they do (as compared to what they can get out of it) have been more willing/determined to figure out what adjustments are necessary during this downturn.

I believe it took a bit of courage for a business coach to confess unprofitability and I thank you for your honesty.

Loved the video, and you being open, honest, and vulnerable to us all. And pulling back the curtain. I've kinda figured it out....but nice to get it from someone inside, so to speak.

So, you've been successful....but you put it all (plus more) back into the business. So curious minds want to know: how the heck have you been living? Rent, food, clothes, kids, etc. I've found I have to pay myself first. You know that that is a key to becoming wealthy...no matter what your income. Not just paying yourself first, but also putting some of that away (investing, retirement funds, savings, etc)

And I'm totally with you on the loving what you do!! And clearly you've helped people do that and make decent money :)

Thanks for sharing this Elizabeth -- you're truly one of a kind!!!

lol, good question -- I was married and my spouse's income paid the mortgage/living expenses/retirement savings/non-biz investments etc. (with his knowledge/support/consent) ... but now that I will be single in a few odd months, I got to pay my own bills, so my complete-reinvestment-back-into-the-biz is no longer sustainable. Now my biz is my #1 investment, so I don't have any problem investing $$ into it, but I do agree that a bit of diversification makes sense. Especially for crazy high-risk entrepreneurs like me.

Excellent post. The claims of the gurus are absurd-if they were doing so well, why the constant hard sell. Of course people are making money online, but it takes time, hard work, timing and luck, and there is no 'one-size-fits-all' for Intenet success. Very encouraging to those of us just getting started-unrealistic expectation sink more new businesses than any external factor.

Kudos for honesty, integrity and style. Love the last outtake :)

And there are many gurus who are *not* doing well right now (you would be surprised) and many who are doing well are having to work their butts off to make it happen (which is good, but still).

And there are many gurus who are *not* doing well right now (you would be surprised) and many who are doing well are having to work their butts off to make it happen (which is good, but still).

Yes, and they all are working hard to sell each others' products. It's actually amusing to watch the 'acting'. At this point, I could write their sales' copy, it's so predictable. Honest approaches, such as yours, will win out in the end. People may fall for the gurus at first, but eventually it will be those with integrity that survive and thrive.

Elizabeth, you are just so darned courageous and cool, it hurts! Thank you for being so open, honest and authentic as always and SAYING what's on so many people's minds. And your 2 takeaways at the end are so right on, and your passion just pours outta my monitor, here.

There is something I'm hearing here that concerns me, though. What I'm hearing - and granted, I'm listening between the lines, so, y'know - is again the old, tired, and frankly, dangerous idea that passion and profit have to be mutually exclusive. (I also heard a little bit of the old "profit equals equals greed by default" mindset in their too, a mindset that causes entrepreneurs to grossly undervalue what they do, making it that much harder to be profitable.)

For some entrepreneurs, especially peeps in our heart-centered, purpose-driven entrepreneur tribe, it IS about creating a lifestyle AND being of service. Not a superficial lifestyle full of bling and fancy cars and rock 'n roll hair or what have you, but time and freedom to, well, NOT work 70 hours a day (she says, typing this at 1 am - cha!). Balance and having a life. And yes, having the things we want in our lives because it's OKAY to desire things simply, well, because. And y'know, it's okay to want that... right from the start.

I've never viewed wanting things as a bad thing. It's not about greed, it's not about collecting stuff to be happy (though believe me I've had my fair share of buying WITHOUT instead of looking WITHIN), but mindfully choosing things that truly add to our enjoyment of life, giving us more fuel to go back out there and do great things in our lives and the world.

Yes, of course you have to make meaningful choices. But the idea that you have to sacrifice every last bit of whatever to be of service through your business, or to build something big and amazing - lady, I just don't buy it. I have a very clear, very BIG vision for my service in the world... and let me tell ya, I don't think I could keep going if I bought into the idea that I have to put myself LAST to create this great thing later. (After all, how can we give when our cup is empty? As that guy on Star Trek says, you can't change the laws of physics.)

And amazingly, the more I embrace that belief, that passion AND service AND profit can commingle peacefully, happily and joyfully together... the more abundance and success rolls my way. And the more supported I am to manifest my long-term vision.

(Plus, y'know, like Laura, my biz is payin' the bills. *grin*)

I would love to hear @ebenpagan's take on this.

Thank you again for making this video and creating such valuable conversation. Ya got me thinking and clearly many others, too. xoxo!

first, you get the longest comment award. :)

I agree there is some money versus passion & profit equals greed stuff going on in my head, which makes sense since I teach all about that (we all teach what we need to learn, write the book we need to read, etc.). :) And I've known about that for myself for *years* since working w/ my first life coach.

There's another issue there too (that I'll explore on another video) ... if you have a plan B or backup plan (or income from somewhere else), then it's easy to avoid uncomfortable stuff & never take the big leap.

Now I do think that balance is a myth -- something that everyone is trying for but no one actually has, except for a moment in time. And so many people think they "should" be balanced instead of just living their lives.

And my business is a gigantic part of my life, my life isn't something other than my business. So, I don't begrudge that I work 50-60/hrs a week on my biz ... cause I love what I do and it encompasses most of my passions. Working on my biz isn't putting myself last, it's actually a very selfish (in a good way) act on my part.

Course, I will need to pay the rent, lol.

Werd on "we all teach what we need to learn" - as I was writing that, I was sitting there thinking, "Well isn't this interesting, Elizabeth [me in this case!], your response to this...!"

Regarding plan Bs, this is absolutely true. Straight up: if a potential client comes to me inquiring about my coaching and I know that they have income coming in from somewhere else, I know right off the bat - i.e., 2 lines in an email - that we need to establish how important their business is to them. All too often, having that cushion means that the motivation to step up to the plate just isn't there. (Can you tell that I've given away a LOT of time with these peeps? *laugh*)

"Balance is a myth" is another topic that everyone thinks but nobody says out loud. When you LOVE what you do, it doesn't feel like work, so who says working 60+ hours a week is, well, work? (The "putting yourself last" part I was referring to above was specifically about the money and paying yourself, which is how I heard/interpreted it.)

Anyways. Put my vote down for a video on that one!

Love this! Always makes me chuckle when I hear people call themselves the Million Dollar this or that when I know they can't even pay the people that work for them a few hundred bucks! What is the big deal with all of it? As if having that car or jet or whatever else actually has anything to do with how totally psyched you are about your life, your work, your relationships, your health, etc. As you said, you work 70-80 hours a week but your LOVE what you do. And you're not living on the street, filming your videos from the bread lines. You are homeschooling your daughter, traveling, investing in your business and you love it. How awesome is that? You will be able to pay your bills because you're as smart cookie and not paying them is not an option and neither, does it sound like, doing work you hate. Yay you for just being honest. Bravo.

Elizabeth - I love the new energy you are bringing to the world with your videos. This one is GREAT! It is so true and it's something I've never heard anyone else talk about "in public" before! Thanks for sharing your truth and your wisdom!

Love your outtakes! You are dead-on with the reinvesting, and I'm so glad to hear your honesty about the un-profitability. I think this is something that needs to be better taught to those entering the entrepreneurial world...an Entre101 course!