When I was around 20, I had an experience that changed me as a person.
I witnessed one of my friends completely destroy his life.
Let me explain…
My friends was given a business to take over.
The boss was retiring and wanted to pass it on to him.
He knew this business inside out and had worked there for years.
I remember thinking how lucky he was.
This was like hitting the lotto!
I was jealous and wished it was me.
It was a good business that had been making a consistent profit for years!
As my friend took over, it started really well.
My friend was incredibly motivated to work hard and improve the business.
As a result, the business grew.
He was making far more money than ever before.
Not only that, but he also loved the flexibility of being a business owner.
He would work hard Monday to Thursday then take Friday afternoons off.
Life was good.
3 months in he bought a new 4wd and a jetski.
A reward for the hard work.
6 months in he convinced his wife she didn’t need to work anymore as he could support her easily.
and then…
12 months in he filed for bankruptcy and had to take a shitty job to put food on the table.
His wife ended up leaving him because of the stress.
My friend was incredibly good at doing the work but, terrible with money.
He just didn’t understand money or how it worked.
Actually, it was worse.
He thought he understood it and was proven to be wrong.
Being good at what you do in business isn’t enough.
You need to know how money works and how to work money.
Anyhow, witnessing this stuck with me and undoubtedly shaped the way I go about business today.
Too many TALENTED business owners ended up retiring with nothing because they never learn about money.
I am doing a podcast mini-series with Goose McGrath & Gabi Billing
Episode 1 is out today.
“Why business owners need to build wealth inside and outside of the business.
You can watch the full episode here:
https://theinvestorlab.com.au/podcast-ep51-why-business-ow…/
Or listen to the full episode here: https://link.chtbl.com/theinvestorlabepisode51
I am by no means claiming to be an expert in this space.
Nor should this be taken as financial advice.
I hope that you will listen to this series and start asking yourself and your advisors the questions, so you don’t end up like my friend.