Why You Can’t Penny-Pinch Your Way To Success

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How the most expensive suit I ever bought was actually not the most expensive suit I ever bought. Yeap, really!!!

On this episode Keith talks about why the price-tag shouldn’t be your top consideration, even when money is tight.

Amongst other things Keith discusses:

  • The BIG difference between Expensive and Valuable
  • The huge cost of free advice
  • And how not spending money creates a massive business risk.

 

So listen here to find out why you can’t penny-pinch your way to success.

For more insights, subscribe to Keith’s 7-Figure Business Secrets iTunes podcast.

If you’re in a rush to create a sustainable income from your business then get your FREE copy of The Entrepreneur’s Guide to Rapid Business Growth. 

 

Transcript

Hey! Welcome to 7-Figure Business Secrets and look what I just got!

So enough of that, but it’s my new suit, a new suit.

It’s my secret pleasure that I get to do once or twice, or sometimes three or four times a year.

I get to go and buy myself a nice suit, and okay, I spend quite a bit of money on them, but I don’t look upon money as expensive. I look at these suits as incredible value ever since I had an episode about 15 years ago of where I actually bought what was at the time, I thought, a cheap suit.

I saved myself about €400. I walked into one of those suit places. I still remember, I walked in and they had suits everywhere, loads of different suits, and they were all like €300, €200, €15 off, all of this type of thing.

You know the place, Suits-R-Us.

The guy came up and measured me, and I picked a suit that I thought was great and walked out really happy with myself because I’d saved quite a bit of money, €400, a lot of money versus this, that’s for sure!

So all fine until about two weeks later, leaving my house and for whatever reason I just thought, I don’t like the shine. I stopped and looked … there was like a shine, that I wasn’t used to off it, and then I thought, “Oh actually, I don’t like the look of it,” and I realised that actually it’s broader.

It doesn’t quite fit me as well, and I loved at it and maybe I didn’t, but I felt a bit chunkier, not looking as good in it. And it all just didn’t seem right.

And I remember going to work that day, and the whole day, it bugged me.

It just bugged me.

I thought everyone was looking at me, and it wasn’t going … you know, it played on my mind.

So, it sat in the wardrobe, and a few weeks later, of course, all my other suits were in the dry cleaners and I had to wear this again.

I got the same feeling, though.

Oh, I don’t want to wear it.

I don’t want to, but I had to anyway.

You know where I am going with this.

It’s basically, yeah, I saved myself quite a bit of money, but I still spent probably €300 on something that I only wore probably one or two times after that, because I hated it. It was probably one of the most expensive suits I ever got because it probably cost me €100 or €200 a wear.

Very expensive.

Whereas typically I spend a lot more but, you know it’s, whatever, €2 or €3 a day.

You get what I’m saying.

The BIG Difference Between Expensive and Valuable

Well, the exact same is true of how we actually spend our time running our businesses or the advice we get on our businesses, because there’s the temptation all the time to actually cut corners and…

“Do you know what, I could save a few hundred euro if I did this myself.”

“Do you know what, I can get the same advice much cheaper online free here.”

And I’ve been so guilty of doing that. I’ve actually gone and designed my websites, I’ve gone to try and pretty up Power Point presentations. I’ve gone, you name it, I’ve tried to do it myself.

Sometimes it’s worked, often it’s not, and I’ve had to go out and get advice anyway and get it fixed after my poor attempts.

Nowhere is this more important than when it actually comes to the important money-making aspects of your business.

And if anything this is what I want to get across to you guys, is there’s a huge difference between something that’s expensive, as in costs a lot of money, and something that’s valuable, right?

And the difference about something that’s expensive is actually yeah, there’s a price tag, a price focus on it.

But actually something that’s valuable, the price tag is almost immaterial.

It’s The Outcome That Matters

I’ll give you an example.

If I said to you, “Listen, I’ll give you two options. You give me €2 and I’ll give you €4 back or you give me €100 and I’ll give you €200 back.”

One is a much more valuable proposition because you’ll get €100 profit out of it, yeah?

Whereas it’s more expensive if you measure it by monetary terms and what I’m trying to get across is listen, the monetary terms when you’re talking about making money and in your business, are not half as important, in fact they don’t even figure on the radar when it comes to measuring the outcome.

It’s all about the outcome.

Just like if someone says, if you need to say, get more marketing advice, if you knew that if you had the right information you could double your business, yeah? Will then, how much is doubling your business worth?

If your business is currently at half a million, you can take it to a million. Well doubling your business is actually worth $500,000.

The sane people amongst us right, and I’m not that sane, but if we put all the emotion aside, we would go out and we would find someone who, up to $500,000, who would be able to give us the advice and the help to get our business from A to B. And there’s quite a lot of them around. And a lot of them are very willing to, especially for that amount of money, they’d fly across the world and sort out your business.

The Huge Cost of Free Advice

The problem is actually us.

It’s that we go back into the, “Oh, hang on a second. That sounds like a lot of money,” and we start thinking of expense again, right?

But what I want you to start thinking about is is actually the cost of not getting that help.

The cost of trying to do it yourself and the worst thing is the cost of free advice.

One of the things that I did starting off my business, actually I started off my first business, was I used to read a lot of blogs and a lot of things and it all sounds great and I’d start to try and implement it and you’d realise, not for 6 or 8 weeks, that actually what they were talking about was just wrong.

It sounds great, but actually it wasn’t worth, it was just someone’s opinion.

They’d never actually done it before.

Lesson one, check and make sure that people have actually gone and done what they’re talking about.

But the worst thing was that it wasted 8 weeks of my own life.

Not only did I not advance my business forward but I wasted 8 weeks of my own time doing stuff that was just counter-intuitive.

And it was only when I finally started investing in myself and investing in proper advice, that things took off for me.

One of them was actually at the time, it doesn’t sound like a lot of money now, but it was a hell of a lot of money back then, was actually getting some advice on this new thing at the time, which was sales funnels.

I spent almost €2,500 when I had nothing, no money, no income, on a consultant to actually take me through and build me my first sales funnel.

I can’t, at the time it was horrendous and the suit thing kept coming back to me.

“Surely I could build it myself”, but I knew at this stage, no, no, put the time in and I’ll get it.

And sure enough, I got my sales funnel but I got so much more than that.

What I actually got was someone’s expertise who had been there and done it and all these bits that I didn’t even know about, bum, bum, bum, bum, bum, all put in for me. It was like, “Keith, I need this, this, this, this and this from you. Tell me what you talk about,” and I had the back and forward going, “No, no, you’re phrasing it wrong,” and he turned it all around. And lo and behold I had a sales funnel.

Something that I could actually work with and use. It was worth so much more to me than that €2,500 to actually just have it there and done for me and all working.

What You’re Not Learning

I suppose from that, and that was a very business-type thing but from that my thinking around self-development changed.

Up until then it basically had been, “Well if it’s not an official type certification course I’m not going to put in.”

I realised that actually I’d been under-investing in myself.

So I actually decided I was going to fly to one of the best guys in the world and I flew all the way across to San Francisco, paid quite a bit of money to actually attend essentially a self-development course and I have to say, that was one of the biggest eye-opening moments.

I realised actually that there are a whole pile of stuff that I just didn’t know.

You don’t know what you don’t know, but there was stuff about me that was holding me back.

It was only when I was willing to look past the expense and the dollar value and start looking at the outcome that I realised actually there’s no point going on, or reading a few blog articles and taking a few cheapy courses and what can I afford.

It all became about the more I can afford, I’ll invest in myself to get a better outcome.

And once I started taking that view in the world, the self-help and not only me, what I feel, I feel that me and my business and everything else took a completely different course.

The Risk Of Not Spending Money

It was hard for me to initially get over my afraidness of spending money and stop focusing on expensive and start looking at the, “Well, no, what happens if I don’t invest this amount of money?”

And the attitude I have now got is, actually if I know there’s going to be an outcome, if I know I’m looking for an outcome, which let’s face it, we all want an outcome.

Either monetary or something in our lives to improve.

Well, the better the outcome I want, the more money I’m actually going to invest or the more time I’m going to invest in that to get the outcome.

It’s not about expensive anymore.

It’s if I want to make more money, if I know I can invest €2, I get €4 back, well I’m going to be asking, “Well, hang on a second. Can I invest €2,000? Can I invest €100,000 and get €200,000 back?”

That’s the game that I’d like to start thinking about.

What’s The Outcome You Want For Your Business?

Are you holding yourself back because you’ve got an expense versus valuable mindset?

And if so, why not try and balance it out.

Start thinking about where are the aspects of your business that you actually want a better outcome and what is it you need to invest in to actually get to that better outcome.

Once you’ve figured out that basic, then go and look.

Look for the most valuable solution to that.

Forget about the price tag.

Look about the most valuable solution and maybe that valuable solution has got a very large ticket price on it at the moment that you can’t quite afford, but make that your goal.

Make it your goal to actually be able to hire the world’s top consultant to actually be in your business, to put the hand on your shoulder and show you how to do it.

Maybe you need to be hiring the world’s top trainer to get you to your fitness goals or the top health surgeon in the world to be able to get you to your medical goals.

Whatever it is, start looking upon things about not, “Oh, how am I going to get that cheaper,” but, “How am I going to afford to get the very best outcome for me in my business?”

 

Right, hope that helps. I’m off now to go and try on my suit again and make sure the wife actually likes it. See you then.

 

If you’re in a rush to create a sustainable income from your business, then get your FREE copy of The Entrepreneur’s Guide to Rapid Business Growth

(Click here to listen to this week’s blog on podcast).

For more insights, subscribe to Keith’s 7-Figure Business Secrets iTunes podcast.

 

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