The Power of Financial Boldness

In business, everyone talks about the hustle, the grind, and putting in the hours. But what happens when the work you’re doing isn't sustainable? What happens when your hard-earned revenue is barely covering costs? You can still keep the main thing the main thing, but you need to shoot off a arm here. This is where the concept of financial boldness comes in a strategic mindset that can change the trajectory of your business. It's the boldness to make a change that may cost you revenue.

Financial boldness is not about being reckless; it’s about taking strategic risks. It means you must get comfortable losing money in the immediate so that you can make more in the future. Netflix is a prime example of this. When they were a successful DVD-by-mail service, they saw the future was in streaming. They knew their current model wasn't sustainable, and they had to pivot. This involved a significant investment in technology and infrastructure, which was a huge risk, but it paid off because it was a calculated move based on research.

For most businesses, the situation is much more complex. We live in a world where many businesses operate paycheck to paycheck. They don't have a large stockpile of cash or a team of investors to back a risky move. So, how do you navigate this? It all comes down to having a well-vetted plan. Think of it like investing in the stock market; there's always a chance of failure, but your plan should be designed so that if you fall, you can get back up, not to where you’re knocked out unconscious. It's about reducing your risk to where you might lose 10 or 20% of your business revenue, but you're not leveraging 100% of everything you have.

This kind of strategic change requires strong leadership. A true leader has foresight because they see the full picture, but they don't share the full picture to avoid panic. Instead, you need to sell your vision to your team and get them on board with the new direction. This is a crucial aspect of leadership: you need to sell your vision to the team, just like you would to a client.

Another key component is building a culture where the right people are in the right seats. This means hiring people who have a "we can" mentality, not just a "this is what you hired me for" mentality. Your team should fit the culture of the company and have the necessary skills to execute the strategy. As a leader, your superpower should be molding your team, setting high expectations, and being unforgiving about the little things. This builds muscle memory in your team that ensures excellence, allowing you to eventually become more hands-off.

Ultimately, financial boldness is about more than just money; it's about courage and strategy. It takes people with sound strategies and good financial backing to be able to successfully execute. As a business owner, you must know yourself, know your business, and be able to do a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. You also need to stop listening to friends and people who are not experts and don't have the discipline to take their own advice. Seek out advisors or experts who have done what you're trying to do. This kind of external perspective is invaluable. Remember, financial boldness is a strategic risk, not recklessness.