10 Lessons Learned in 2023 for Business?Owners

Introduction:

I’m going to be breaking down the 10 things that I learned in 2023 that were either reworked, learned anew, or just reemphasized in a different way. In this article, I will share these valuable lessons that can benefit business owners around the country. Let’s dive in and explore these insights that can help you thrive in your entrepreneurial journey.

Lesson 1: It’s Hard to Differentiate Good from?Great?

In a world saturated with marketing messages, discerning between good and great businesses can be challenging. Take the Employee Retention Credit (ERC), for instance?—?marketed relentlessly over the past 3 years. However, amidst the noise, around 20,000 claims were disqualified by the IRS, revealing the presence of bad actors in the ERC space. The real question is, how do you distinguish the bad apples from the good ones?

Everyone echoes similar promises: “$26,000 per employee,” “COVID credit,” “Not a loan,” “Negatively impacted,” and the list goes on. The lesson I’ve learned is that relying solely on marketing, sales presentations, or referrals makes it tough to differentiate between good, great and even bad sometimes. Unfortunately, many of you might have questionable professionals in your lives without even realizing it.

While I may not have a foolproof solution, I believe there’s merit in personally striving to create a best-in-class business. When you’re committed to excellence, you develop a sense for it, making it easier to identify when other businesses fall short.?

Lesson 2: Embrace the Ripple Effect of your?Impact

The impact you make goes beyond the person directly in front of you. By striving for excellence and delivering the best possible outcome for your customers, you create a ripple effect. Your customers will go on to impact other people’s lives, allowing you to make a generational impact and create a lasting legacy. Don’t just look at the difference you make, look at the difference the difference makes.

Lesson 3: Far Too Many Business Owners Make Generational Income, but Have Middle Class?Results

Many business owners find themselves in a peculiar situation?—?earning what can be considered generational income, yet experiencing only middle-class results. Take dental business owners, for instance; it’s not uncommon for them to rake in $20-$30 million over their career, but a significant number end up with a retirement that mirrors a middle-class lifestyle.

This challenge extends beyond dentists; many of my clients, generate substantial wealth during their careers but risk settling for middle-class outcomes unless they pivot.

To bridge this gap, it’s crucial to focus on keeping more of what you create. Deliberate steps, such as optimizing cash flow, minimizing taxes, trimming unnecessary fees, and fostering conscious wealth-building strategies, can be game-changers. It’s not just about making generational income; it’s about ensuring those earnings translate into true prosperity

Lesson 4: Be a Performer NOT a?Critic

If you want to deliver a powerful message and have a profound impact, you cannot be both a performer and a critic. I learned this principle from Amy and Michael Port at Heroic Public Speaking. If you are going to criticize other speakers as they speak it will turn into internal self-criticism as you speak. This self-criticism on stage inhibits your ability to connect deeply with your audience and will limit the impact you have on them. Embrace your role as a creator and give yourself fully to your message and your audience.

This lesson goes beyond speaking on stage.?

Lesson 5: The Symphony of Collaboration

For unparalleled results, abandon the siloed approach and embrace a collaborative team. Picture a symphony of experts?—?accountants, attorneys, tax strategists, and financial advisors?—?all working in harmony to orchestrate optimal outcomes and usher in comprehensive wealth management.

Regrettably, many of you may currently have siloed professionals who operate independently, lacking synchronization. This disjointed approach can be a costly mistake, potentially impacting your financial well-being in the millions.

Lesson 6: Unleashing Your Vision Beyond Financial Borders

Your financial situation shouldn’t be a roadblock to realizing your vision and making a meaningful impact. While it’s crucial to be mindful of your finances, remember that wealth creation and impact transcend mere monetary constraints. Challenge yourself to think beyond the numbers, pushing past perceived limitations.

It’s a common tendency for individuals to gauge their impact based on net worth, but for many of you, the potential net worth is far grander than you give yourself credit for. It’s time to unshackle your aspirations and recognize the expansive impact you can make beyond the confines of financial figures.

Lesson 7: Embrace Deliberate Action

Success requires a deliberate approach to every aspect of your life. Whether it’s your family, health, or wealth, you must intentionally design systems and strategies to achieve your desired outcomes. Avoid relying on hope or default approaches and instead take intentional steps to create the life and business you envision.?

Lesson 8: The Importance of Cash Flow?Systems

Automated cash flow systems are vital for managing your finances effectively. By structuring your cash flow and automatically assigning each dollar a specific purpose, you can ensure that your money is working for you. Implementing robust cash flow systems provides stability, liquidity, and the ability to seize opportunities when they arise.

Lesson 9: The Protective Role of Whole Life Insurance

Whole life insurance often finds itself caught in the crossfire of love and hate, with many mislabeling it as something it’s not?—?a creator of wealth. In truth, you are the creator of your wealth not a financial product. Whole Life serves as a stalwart guardian of the wealth you created, offering protection that extends beyond the common misconceptions.

Contrary to the belief that it merely safeguards wealth in case of demise, which it does, whole life insurance plays a multifaceted role. It acts as a shield during your working years, providing liquidity, access to cash, and preserving assets. Its value continues into your retirement, enabling you to generate more income from your other assets than you would without it.

By unraveling the true value of whole life insurance, it becomes evident that it’s not just a safeguard; it’s a strategic lever to protect and amplify your wealth. Understanding its nuances equips you to navigate the financial landscape with confidence and purpose.

Lesson 10: The Significance of Distribution Planning

Accumulating wealth is a noteworthy feat, but it’s just the beginning. The crucial companion to this journey is the effective distribution and continuous cashflowing of your assets. Whether you’re navigating the transition away from active work or charting a course for retirement, a robust distribution plan becomes the linchpin.

Too often, business owners fixate solely on the accumulation of assets, overlooking the strategic importance of planning for ongoing cash flow. This oversight extends beyond the time of distribution and should be seamlessly woven into the fabric of your entire career. It’s about maximizing?—?not minimizing?—?your assets’ potential to generate income, ensuring they actively contribute to sustaining your desired lifestyle. By prioritizing thoughtful distribution planning, you elevate your financial strategy from mere accumulation to sustained prosperity.

Conclusion:

?The 10 lessons I learned in 2023 offer valuable guidance for business owners. By incorporating these lessons into your business strategy and life, you can amplify your success in 2024 and beyond. Remember it’s not just about the money, it’s about the impact the money gives you the permission to leave. Here is to a great 2024.

About the?Author:

Justin Maxwell is a wealth and tax strategist with Big Life Financial. He helps professionals maximize their human life value, by helping get money in their life right and systematic so they can focus on things that actually matter. Beyond the mere act of saving a dollar, he specializes in empowering you to transform that saved dollar into a powerful catalyst for creating a life that truly reflects your deepest priorities and gives you permission to leave a generational impact. If you’re prepared to embark on a transformative experience, where you’ll be challenged, supported, and guided towards a bigger vision of what’s possible, click HERE to schedule a BIG LIFE consultation