Cash vs Revenue
The Difference In Your Business.
Become The Entrepreneur You Always Wanted To Be
[00:01:16] What’s going on, guys, in this video? I’m going to talk to you about the main difference. Actually. Wait, wait, wait, wait, wait, wait. This is going to be a war following here. This is huge. This is news today. Talk to you guys about the main importance between cash and revenue. But honestly, we’re to talk about that, so over here. Here we are. Let’s keep it going. This is perfect. Now I like this, now I’m hyped up, now I’m hyped up, now I’m hyped up. Today we’re talking about the main difference between cash and revenue. All right, so today, cash vs revenue. And what are the biggest differences, this is a big problem that I see with business owners entrepreneurs, whatever it is, is that they focus primarily on revenue. Right. Whenever someone talks about the numbers or they’re making the money that they have. How much money they made today? Oh, we’re close to $10000. We’re close to thirty thousand already a week was a $50000 deal.
[00:01:16] The reason I know you’re going to do without it is I used the exact same day. Until I actually started learning that it’s cash that is king. Right. It’s cash essentially aboard my revenue, we would sign a 10K deal, let’s say twenty five hundred dollars over four months. That’s a 10K deal. But your cash on that deal, it’s twenty five hundred dollars and a huge mistake as he often was making is that their revenue is what they’re looking at, the revenues and they look out for highers, the revenues, what they look at for how much we’re asked when they can have the revenues, when they look at how much expenses they can have. Right. But in reality, revenue is not what is paying the bills you can’t pay. You know, your utility bills or your office bills and future revenue. So sometimes it’s to be the same thing. You have a $2000 package. They paid what you thought was cash right then and there. That’s what this would be, the same thing. A lot of high ticket offers or anything else or a little bit more money. It’s going to be a cash versus revenue game. That’s the reason why you need to keep an eye on cash.
[00:02:14]There were a few big reasons, but one of our favorite ones is at right or just general when you say ads or outreach. OK. So that when you get cash and revenue as an outreach to the huge, huge, huge key component of that, because I see a lot of people that are willing to spend. Let’s just say you have a $1000 product. I see people all over your face. Let’s say you have a $3000 product. And I see people that are spending thirty five hundred dollars to get one client in that $3000 product because they have a $10000 product behind it. Or let’s say that you have a twenty five hundred dollar a month coaching program or a $20000 a month regenerations or whatever it is. And you are using ads or outreach or paying people in order to get new clients. Will you sign a client. It took you twenty six hundred dollars at first one, then you’re actually negative in the cash, although you have a revenue positive of like a three months and then somebody volcanology with three months. And so the issue with that is that, yes, the lifetime value of a customer, what I hear talk to people, talk about all the time. And look, I’m not opposed to lifetime value of a customer, but people are basing their entire business on the lifetime value of a customer. Once again, it’s another one of those things I thought, well, was just like, that’s the hard way.
[00:03:32] And you can figure out a way to stay cash to say cash heavy on the front end. Then you can afford to make to spend more money to get a client and you’re going to win the game. And it also means you’re you’re to a revenue is going to increase as well. But you have to pay your bills with cash. And so stop being OK paying more than what the client is really worth, because you don’t have to do that. What you do and adds an outrage. And another thing I see old timers like, would you say general expenses? Right. So like you joining another national program or you get an office space or you’re getting an office in a co-working space or you know, you’re getting lines of credit that are way too high, that what you can actually do because you’re a revenue which you’re telling people you’re making. Well, we make you know, we’re on oh, what was seven-figure run rate this year when in reality that’s what our revenue is. And your cash is not even close to that. So you have to sort of thinking in terms of OK, like on a daily basis, I would really take this on a daily basis. And I see how much of this did we collect yesterday?
[00:04:35] Every single day I check that I have a little sheet and I’m on top of that, a little like an actual one in this video. Did you guys look at the comments below? An inscription on drop a little link to where you guys and get your own. But I legitimately look at my cash every single day and know how much money we’re making our bank and also how much expenses we have going out of our account all the time. That way I can spend three, four, five, six, seven thousand dollars a day to get new clients, because I know we’re making back 10, 15, 20, 30, 40 grand a day in cash. That’s not even including the revenue that we’re getting lifetime from them. So we only focus on cash and I don’t even care about revenue. Whenever the rest of the revenue hits, that’s fantastic to me. But cash is what drives me is what pays my bills. It works. It’s what allows me to invest. I put myself in my business. And that’s what you guys should be focused on. What’s going on, guys? Hope you enjoyed the video. That was the difference between cash and revenue and how focusing on one of them can actually be the downfall of your business. Do me a favor. Please click the like button below. Subscribe. Call on which you want my next video of the column with your thoughts on cash and revenue. And I’ll talk to you guys very soon.