More Than WE Know

In a recent post about the Nouveau Riche, I wrote about the opportunity inherent in earning more money as an entrepreneur.  I encouraged women to set their goals for financial independence high, and to remember all of the people, including themselves and their family, as well as the world,  that WE can help if WE have financial freedom.

A reader wrote a compelling comment that I thought was worth highlighting here:

I think one reason women don’t quantify their monetary earnings goals is that women (especially work-at-home women) tend to not view compensation solely in terms of money. For example, one of the things I value most about my business is that I can do it while giving my kids first priority. While it would be nice to be rich or have a million dollars to contribute to charity (and believe me, I’ve got plenty of ideas of what I could do with that kind of money), I think it’s much more valuable to society for me to contribute time and effort to my family. And working at home, while it doesn’t bring in large amounts of cash, reduces the opportunity cost in family time and effort that I’d have to pay to work at a more lucrative job.

So when you ask whether a woman wants to be part of the “Nouveau Riche,” I would argue that women like me already are part of the “Nouveau Riche de Maison”– the new home-life rich.

First - I love that phrase - “nouveau riche de maison” - home-life rich. Isn’t that something we all aspire to??

Second - my question is for you, my readers - are  Women Entrepreneurs really choosing between making more money and making a better life for our families? Or are we avoiding setting high monetary goals out of a fear of failure or a feeling that making a lot of money is distasteful or unseemly?

If it’s the first, and WE really are saying there are more important things than making money (even considering the monetary help we could contribute to the world) then I think that is a great statement that aligns to a strong life’s purpose.

But if WE are avoiding making more money out of lack of courage, lack of knowledge or lack of awareness - then I think that is something that needs to change.

Which is it for you - a conscious choice? Or a situation you’d like to change?

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This is my sixth post discussing the fascinating book by Keith Cameron Smith, The Top 10 Distinctions Between Millionaires and the Middle Class

Distinction 6:

Millionaires continually learn and grow.

The middle class thinks learning ended with school.

This is one of the most powerful insights for any entrepreneur.  Learning should be a lifelong endeavor if you want to continue to grow your business as well as your self.

While lifelong learning could (and probably should) mean continuing to take formal classes and increase your general knowledge, it can also mean so much more.

Don’t forget to learn from:

• your customers - what they like, don’t like, want, hope, fear, and dream of
• your competitors - what they are doing well, what they are doing poorly and what you could be doing differently
• your parents - what wisdom have they gained? what perspectives do they have? what experience can they share? what has worked in the past?  
• your children - what are their passions? their obsessions? their interests? what will the future hold?  
• your successes - what did you contribute? how did you take advantage of opportunity? what could have increased your success even further?
• your mistakes - what could you have done differently? how could you have been more in tune with your circumstances? what perspective will you take to your next opportunity?

This is the 5th post in my series discussing Keith Cameron Smith’s book The Top 10 Distinctions Between Millionaires and the Middle Class.

Distinction #5

Millionaires work for Profits.

The Middle-class works for Wages.

This is a truism that entrepreneurs have already discovered for themselves.  In fact, while only 1 in 5 people in the US are self-employed, self-employed people account for two-thirds of the millionaires in the US.  

There are no guarantees that working for yourself will make you a millionaire, but it does increase your odds.  And while we hear the most about celebrities, and techno-geniuses who have made their quick riches - the reality is that most millionaires run companies that are far from glamourous: welding contractors, auctioneers, rice farmers, owners of mobile-home parks, pest controllers, coin and stamp dealers,  paving contractors, etc.

So don’t be disheartened if your business is not a sexy, exciting, high-profile one: if it provides a valuable service or product that others will pay for - it could provide you just what it takes to be a millionaire.

This is my fourth post in my series exploring Keith Cameron Smith’s compelling book

Distinction #4

Millionaires believe they must be generous.

The Middle-class thinks they can’t afford to give.

Actually, I’m not sure that this one applies so much to Women Entrepreneurs in general. As I wrote recently, approximately 50% of Women Entrepreneurs contribute their money and time to charitable organizations - which is even slightly higher than their male counterparts.

And those statistics overlook that Women Entrepreneurs who are not giving to a charitable organization, may be giving informally to their community, their families and their friends.

However, it is worth stopping and asking yourself how much you are giving to others.  Research has found that people of all genders and all ages who give to others tend to live longer, healthier and happier lives.  In other words, the more we give, the more we have to give.

So instead of thinking we can’t afford to give - we need to remember that we can’t afford not to.

This is my third post discussing Keith Cameron Smith’s insightful book, The Top 10 Distinctions Between Millionaires and the Middle Class.

Distinction #3

Millionaires have multiple sources of Income.

Middle-class have only one or two.

One lesson here for Women Entrepreneurs is not to become overly dependent on one customer for your income.  While it is important to cultivate your high value customers, it is also important to continue to cultivate new customers to provide you diversity of income. In these uncertain economic times, any customer could experience hardship which may reduce their need for your service.  If you are overly dependent on them as a source of income, their hardship can quickly become your hardship.

In the same vein, you don’t want to become too dependent on a single product for your income.  If the need for that product drops, or a competitor comes along with a knock-off at a lower price - you may find your revenue stream in jeopardy.

Action: Review your clients and your products - what percentage is coming from a single source?  How can you expand to reduce that dependence?