Why does your business exist other than for the purpose of making money?
This is the MOST important question you can ask!
And... What's scary is that most entrepreneurs don't have an answer to this question. The only reason their business exists is to make money for themselves.
What's wrong with this? Legally there's nothing wrong with this at all and people can do whatever they want! The problem is that these people will fail at making money and wonder "WHY?".
Money is a byproduct of value, when you create value you make money. And money isn't value. So you can't create money by trying to make money, it just doesn't work that way!
Companies who aim to solve problems and improve peoples lives create value, the byproduct of this is money. Lots of money.
If you want to be motivated, have fun, help people and make a lot of money while doing so -- this video is for you!
Check it out and let me know what you think in the comments?
Here's what we cover:
1. Why does your business exist other than for the purpose of making money? (The most important question you can ask).
2. Why most entrepreneurs don't have any purpose other than making money and why they don't make any money as a result.
3. Why making money isn't motivating enough for you to get out of bed and work hard everyday and why you need to dig deeper.
4. The "Cause & Effect" nature of value and money and why one must come before the other (and why people screw this up).
5. Why Boeing was the most successful company in the world when it's mission was to "Make the best airplanes in the world" and why it failed and lost money when it changed its mission to "To cut costs and make money for our shareholders".
6. Why the most successful companies in the history of the world made money as a byproduct of achieving a larger vision/mission.
7. True personal story from my early years in business when I was trying to make money and get a Ferrari and why I was constantly depressed and unmotivated.
Sam Ovens: Hey, everyone. Sam Ovens here, and today I wanted to make this video to ask you a really important question, and to get you to think about something that's of, like, life and death importance to your business. The question is, "Why does your business exist, other than for the purpose of making money?" I'll say that again. "Why does your business exist, other than for the purpose of making money?" Now, just pause for a moment and think about it. Why does your business exist? What's actually quite surprising and scary for a lot of entrepreneurs is that when they sit down and they ask themselves this question, they realize that there is no reason their business exists, other than for the purpose of making money.
Why is this a problem? Why can't people just create businesses to make money? Well, you can. You can do that if you want, but if you do that, it's very hard to actually make money, and it might sound kind of counterintuitive, but here's how it works. If you're in business, you're really in the process of providing value to other humans. No one else buys from us other than humans, and so they give us money when we help them in some way, shape, or form. How help exists is when we help somebody solve a problem, or get them from where they are currently to where they want to go in the future, like their desired situation from their current situation. When we help them do this, we create value, we help them solve a problem, we help them get to where they want, and that's value. People are happy to pay money in exchange for value. That's really what business is. Business is providing value and getting paid.
When you're in business yourself with the intent to purely just make money, then it's hard to make money because money is the byproduct of value, and money isn't value. If you're trying to make money, then that's really messed up, because that's not how you actually make money. You make money by adding value and then money is the byproduct of the value. This is pretty common sense stuff, but it's something that just every entrepreneur that I meet almost, I would say 90% of entrepreneurs that I meet, they're just purely in business to make money, and then they wonder why they're not very motivated. They wonder why they can't get out of bed in the morning. They wonder why as soon as things get hard, they can't keep going, and they also wonder why they're not making any money, or why they're not able to make as much money as they want, or they wonder why people don't want their thing, and why people aren't lining up to pay them money. They also wonder how other companies are able to get people to give them money. It's fascinating, and it's because they can't see properly. They can't understand this concept that business is the art of adding value, and by doing so, the byproduct is money.
Now, I'll give you some very specific examples of this happening in reality, so you know this isn't just some theory, or something like that. This has been this way for a long time, and companies that made this mistake, they paid for it dearly. A classic example would be Boeing, and if you're not sure what Boeing is, it's an airplane company. It makes the 747 and a whole bunch of other planes, all right? It's one of the major two aircraft companies in the world. Now, when Boeing was first started, and when Boeing was doing really well, its mission statement was to make the best airplanes in the world. That's what they wanted to do. That was their intention, and that's why they started the company, and so that's what they were trying to do. They were motivated as hell to do it, because they wanted to make the best airplanes in the world. The most reliable, the fastest, the most efficient, the most cutting edge airplanes in the world. It was an exciting project. Then they set out to do that. They actually achieved that, and then the byproduct of doing that was that Boeing made a ton of money, and it became the most valuable company on earth for actually quite a long time. It was producing amazing airplanes.
But then what happened is, and this is very typical, so Boeing had a genius idea to put an executive CEO in place, probably with some sort of MBA, probably from some university like Harvard, and with a suit and tie and everything, and proper corporate speaking language, and he came in, and he decided to change the mission statement. He changed it to, I forget the exact language, but if you Google this, you can go look back and you'll find this story that I'm talking about right now. But he basically changed it to say, "to produce airplanes at an extremely low cost due to our lean cost structure," or something like that, right? And he also said in there, "and also to produce financial returns for our investors."
This guy, this executive who took over Boeing, he was probably thinking, "All right. Time to stop with this child's play stuff about making the best airplanes in the world. Let's try and make some money. Not that we're not already making money here, we're already making the most money out of any company in the world, but let's actually try to make some money." You gotta ask yourself, "How delusional was this dude, and how delusional are most of these dudes and women, when they literally just change things like this?"
He changed it, and then what happened is, Boeing proceeded to try and make financial returns for their investors, and when they were trying to make financial returns for the investors, they were trying to cut costs on things. They were trying, and when you're trying to cut costs everywhere, you're trying to stop different R&D projects, like research and development projects from going through. You're trying to cut back on technology and making these little details in the plane that were important to the engineers and the people who design these things. They start removing all of this stuff, because it's less of a love project, and it's less of a hobby, and because the new management style is just trying to make money. The old management style is trying to make the best airplane in the world, so they don't think the same, and they don't see things the same way, because they're trying to make money for the investors, these other guys, so they start going through all of these airplanes, cutting R&D projects, laying off people, and doing things left, right, and center.
Then what happened? Well, Boeing ended up losing a lot of money, and their airplanes ended up not being very good, and then also they opened up a foothold in the marketplace for a competitor to come in, because they were screwing everything up royally. Airbus came in, and Boeing basically handed it to them on a silver platter, and they came in and started trying to make really good airplanes, and they got a really big foothold that they've still maintained to this day. Boeing just handed it right to them. Why, or how? By trying to make money instead of trying to make really good airplanes.
That's why I asked you this question at the beginning of this video. Why does your company exist, other than for the purpose of making money? Because when you struggle to answer this question, you have a problem, and when you struggle to answer this question, you probably aren't making any money, or if you are, it's probably not very much, and if you are, you're probably struggling to grow. I encourage you to think long and hard about why does your business exist, other than for the purpose of making money? You should find a purpose, other than for making money, because then when you wake up every day and you ask yourself, "Hey, what should I work on today?" Or, "What projects should I do this year?" "What things should I do in my business?" You're going to have a clear mind and you're gonna have clear eyes, and you're gonna be able to see and can see things to do that are actually going to add value.
Because if you're waking up every day thinking, "How can I make the best airplane in the world?" You're asking the right questions. When you ask those questions, you'll find the right answers. When you find those things, you will do them. You will execute them. Then when you do those things, the market is going to love you for it, because you're providing great stuff. Then the market is going to react to that by giving you money. This is how we achieve our goal indirectly. Instead of trying to make money, we try to add value. We try to solve problems for people. Instead of treating our business as a linear money making machine for us and just ourselves, we should treat business as a non-linear vehicle to help people that also gives us money, right? I'm not saying, "Don't make any money." I'm actually saying you'll make a ton of it, if you just focus on the other thing.
I made this mistake myself, too. When I first got into business, honestly, it was just to make money, because I didn't have any, and I was poor and living in my parents' garage, and I really wanted to move out of there, and so sometimes the first reason why you get started in business is to make some money, because you need it. It's like a survival thing, right? There's nothing wrong with that. That's how I got started. The problem with that was, was that every time I looked at different opportunities, all I could see was just money. If I looked at an expense, I was like, "That's not good, because that's gonna be less money for me, and that's not why I'm here. That's not why I'm doing this."
I didn't make investments in myself, and in my business for the long-term. I didn't try to provide above and beyond customer support. I didn't try to have the best cutting edge technology. I didn't try to hire and maintain and train and cultivate the best team possible, because these things cost money. When you're trying to make money, you don't want to spend the money, because that is the opposite of "make." But when you're trying to make something the best you possibly can, then you spend money as a tool to make that happen, and then the money comes back around and comes to you. It's just a different way to think about it.
Back when I was just in business for making money, my first goal was to make $100 grand a year, and I achieved that within about ... I think it was the first year I was in business, I made zero. No kidding. I didn't even get one customer. I didn't even make a dollar. First year was pretty bad, and then the second year, things started to click, and I made about $100 grand in my second year, all right? The problem with having a goal of like making $100 grand was that as soon as I achieved it, I wasn't motivated, because I had arrived, and I was like, "Oh. I've just got money now." I was lost. I didn't know what to do next. It was a weird experience, and I didn't have much motivation, and it was hard for me to get out of bed each day and go to work on this thing and make it better, because I'd already arrived.
Then I thought, "Okay, well let's just make this number bigger." I made it bigger, like $500 grand a year. Then I did that, and then I remember I bought a Ferrari, and I did all of those typical things, because I thought that's what you have a business for, right? You start a business to be rich and have a Ferrari. That's basically what I thought. I did those things, but it was always kind of empty, and after I had one Ferrari and some money, I was like, "How much more happy would I be if I had two Ferraris?" It was very hard to motivate myself, and it was very hard to know what to work on, because all I could see was, "In in business to make money to buy cars and things." It wasn't that motivating for me, and I never tried to hire any other people, because I didn't see the purpose in that, and I didn't try to go above and beyond for my customers, and with customer support, and investments and things like that.
It was always kind of a chaotic rollercoaster ride when I first got started, because I was unmotivated until I could think of a material possession that I wanted to buy. Then I kind of got motivated, then I got it, then I wasn't motivated again, so then I thought of another material possession to buy, and then really I just ended up with a whole bunch of material possessions that then pissed me off, because to manage all of these things, like cars need cleaning, they need gas in them, I had a boat. I had all of this crap, and just to manage owning these things pretty much was a full-time job. I pretty much built myself a job of managing material possessions, and then they pissed me off so much, because I didn't have time to work on my business, but even if I did have time to work on my business, I didn't even know what to do in my business. I was just in a real kind of confused space, and it was hard to really make any progress or get motivated at all. The reason why this happened was because I just couldn't see things properly back then.
My goal with this video is to help you guys see. See that business can be something a lot bigger and a lot more fun, and it can be a lot more powerful than what you think. It's not just there to make you money. You can actually really do some fun things with it. When I started to change my perspective on things and I saw business as a way to reinvent things and make something like the best I possibly could, then it got fun. What I started to do was I started to think, "What if I solved this problem for people? What if I taught people how to start consulting businesses from scratch, and I made just the best training ever?"
I'd attended a lot of trainings. I was a student and I attended a lot of different things, and I thought, what if I made something that was $2,000, that was better than what people are charging $100,000 for? That was the thing that really motivated me. I was like, "That's what I want to do. I'm gonna make the best course ever, and it's gonna be like $100 grand of value, but like $2 grand, and we're gonna have the best support ever, the best everything ever." Kind of like what Boeing did. I got that idea from Boeing. I read that one day, and I had an epiphany. I was like, "Oh, wow. So that's what you should try and do in business. Just try and make the best thing ever, and try and break a new limit, and then that'll be fun in and of itself, and then if you achieve that, you're gonna make a ton of money accidentally anyway." That's what I did.
That was honestly when things in business started to get really fun for me, and also when I was able to start rallying a team together to help me with it, because it's hard to get a team together. It's hard to hire smart people, and it's definitely hard to motivate smart people, or anybody, when your goal and your mission with your business is to make money so that you can buy a car, because how are you supposed to rally a bunch of people together with that? "Hey, guys. Come and help me with my mission of buying another car." Right? Or if you're a girl and you want to get a Louis Vuitton handbag or something, and so you're in business to do that, imagine trying to recruit a bunch of people and be like, "Hey, everyone. Come here. We're working on a very important project here. We're going to make money for me, and then what I'm gonna do with that money is I'm gonna buy a handbag, so let's get to work." That sounds ridiculous, when I say it like that, but this is actually what goes on all the time. Most people are in business for this sort of stuff, and it doesn't work. Then they wonder why they don't get that handbag.
You've got to remove this cloud from in front of your eyes, and you've got to remove this cloud from your brain, and you have to see things properly. Ask yourself the question, "Why are you in business, other than for the purpose of making money?" And if you don't have a reason, then you should get one. When you do this, I can tell you that business gets way more fun, you're going to be way more motivated every day. You're not gonna have motivation problems. You're gonna be able to hire other people. You're gonna be able to motivate them too, and you're also gonna have customers that love you and want to buy your stuff, even if you're not running advertising. They'll spread the word themselves. You don't have to pull all of these marketing tricks and things like this to get people to buy your stuff, because people just want your stuff anyway, because it's so damn good.
This really is the solution to pretty much everyone's problem in business, is if your business isn't working, it's probably because your product or service sucks, and it's probably because your product or service, you don't care about it. Because the things you care about, you tend to make sure they don't suck. I see a lot of people and they want to make money, and their thing they're selling sucks, and so instead what they think is they need a new funnel, or they need to learn Facebook ads, or they need to do a webinar. I can honestly tell you that a webinar or Facebook ads or a funnel, it ain't really gonna save you. It is an awesome magnifying effect to something that's good. If you've got something that's good, and people like it, and it's helping people, and it's solving a problem, then sure. Funnels, and ads, and all of these things will massively amplify the amount of money that you're making, and the amount of customers that you get. However, you can't amplify something that sucks. I mean, you can. All you're just gonna get is just more suck.
That's the problem I see. A lot of people, they swear it's their landing page. They swear it's just the Facebook Pixel, or that they need to use a webinar instead of a VSL, and most of the time it's not these things. It's just that your thing needs to be better, whatever that is. Product, service, whatever it is. You need to care, because if you cared, it wouldn't be the way it is. You need to change your philosophy and your "why," the reason why you're in business. When you do this, everything changes. Everything gets more fun.
That's it for this video today. If you enjoyed it, just click that "like" button, and also let me know what you think in the comments section below. If you enjoyed this video, subscribe to my YouTube channel. I release a video like this once every week, and I also interview some of my customers, and upload Q&A recordings and things like that, too. Thanks for watching, and I'll see you in the next one, next week.