If you can pay the bills this month...

"... If you can pay the bills next month as well you're made it."

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That's the take away for me. You're basically saying if you can free yourself from paycheck to paycheck by doing something you've built, you're ahead of the game. Maybe just a half step ahead... But I'm not judging that. It takes that half step to break free.

A Redditor from my last post on 0 to 6 Figures

Firstly, welcome friend.

You’ve found me from Reddit and I am so grateful you chose to subscribe.

Here’s what to expect:

1. One real life lesson which have helped me along the way in business each week
2. A real story with real emotion

Every Friday at 9AM GMT.

That’s it.

This lessons comes in 2 parts.

Part 1: If you can pay the bills this month, you’re laughing

September 2021 I came home to the cottage in the countryside I shared with my best mate Sam, absolutely beaten.

My 3rd business was just 6 months old, started just before the COVID Pandemic hit and I hadn’t made a sale since the end of March.

5 months with 0 Sales.

My costs were minimal:

• Some tech (website hosting, provider, email list, other little bits)
• Office (hot desking)
• Car and Insurance
• Rent
• Food

Say, £1,500/month.

But I’d burnt through almost all the money from my first sale (£5,000) plus my American Express Card bill was getting bigger and bigger (I was billing as many expenses as I could through AMEX to preserve what little real money I had)

I’d paid out all my bills on the 31st of August and I had £20 to my name.

Sam is one of the kindest, sweetest guys you’ll ever meet and he asked me what was wrong as I pored over the food in the fridge.

“Mate, I’ve got £20 and fuck all leads and sales for September.” I said.

“Well that’s alright.” he said.

“Have you got food in the fridge?” he asked.

“Yeah.”

“Have you got petrol in the car?”

“Yeah.”

“Have you paid the rent for here and the office?”

“Yeah.”

“Oh brother, then you’re all right. You’ve got all month to worry about the end of the month.”

That hit me right between the eyes. I had enough to last me the rest of the month.

30 whole days to figure out how to get enough money for the bills.

Part 2: If you can pay the bills next month as well you're made it.

I’ve got 2 friends and mentors that have along with many others helped me hugely with my business as it grows. We’ll call them Elvis and Goose.

Goose owns a 9-figure multinational business and has already had 1 successful exit.

Elvis owns an 8-figure business and is recognised as world leader in his field and works with some of the richest people in the world.

Fast Forward to early 2023.

My £1,500 a month bills had mushroomed to closer to £8,000 a month.

More tech, more staff and more money to go out on the 1st of each month.

Since August 2022, I woke up on the 1st of each month feeling like a Panda was sitting on my chest. Gripped with anxiety about how I was going to pay not just myself, and my bills but the 4 staff I now had.

As an entrepreneur you have to become used to the “monthly catch up” , which is basically the money you have to make to just break even, or make no profit.

Plus setting aside any taxes you need to pay (though as you grow larger you sometimes end up dipping into these pots on the harsher months)

It’s about mid-February and I’m sharing with Elvis about trying to have enough money set aside for 2 months expenses.

Namely enough money to pay the bills for this and next month.

“Oh man, if you do that you’ve made it” he laughed on the phone.

“What do you mean?” I said.

“Listen mate, at the start of each month I need to find £1,000,000 to just break even and not start sacking people.” he said.

“If I had 2 months expenses in the bank, then I’ve made it.”

The second part of the lesson really sunk in then.

When I spoke to Goose he agreed, laughing that most months are spent just trying to have enough to pay the bills that month.

These were BIG businesses. Obviously service based with big headcounts (but not crazy big)

There are months when you’ll make enough to have 1,2 or even 3 months expenses sorted (or more)

But some moths you’re just trying to get to the end of the month to cover everything.

Obviously that depends on maturity, size, market, scale and other factors.

I find this such a comforting way to look at my business some days when I think I am doing shit and have no idea what I’m doing.

I’ll balance my books on a Google Sheet and realise with a little swell of pride that yes, I do have the bills paid this month.

P.S. Got something you want me to write about? Drop an email to mike@responsecopywriting.com and let me know

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