Business 101- How To Leverage Money For Time
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- Опубликовано: 24 апр 2021
- What is the entrepreneurial mindset? What's the difference between those that are rich and those are poor? What do you need to know to become wealthy? How can you make more money by trading money for time? Business fundamentals explained via a whiteboard session with Futur Pro members.
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Host: Chris Do
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Rich Designer Poor Designer - Chris ‘Kiyosaki’ Do😂
I would buy that book!
@@StarcoreLabs fr it’s actually a great idea
Would love to have this book in future
There’s no way I can express how much value you brought to my personal/professional life. I’ve never met you in person and I’m looking forward to it. Simply to shake your hand and thank you for everything you do for us marketing people!
Chris, you get my heart pumping of excitement for the years in front of me. Incredibly valuable content, thank you
Glad to hear it!
All I heard at the beginning was Future's track entitled "mask off" when Chris pulls up on the whiteboard.
Thanks to God to bring your channel to recommended video! Great Video!
We are about to take the step from hiring freelancers to actual employees. It is intimidating. Thanks for making the need become very clear.
If he would only convert 3 leads, it would mean $9k - (3*2,200) = $2,400 instead of the $3k he would get if he did it himself.
However, in the scenario of higher converting leads, this would mean $21k - (7*2,200) = $5,600
So the point is, it would only make sense for him to outsource the work, if he can use that time to get more than 3 extra clients in the time he would normally spent working on the project himself.
I think it's worth mentioning because in this video, the Gross Rrevenue was used to measure opportunity cost while we're assuming he will keep outsourcing his stuff. That said though, this is definitely a good thing to think about and calculate as a business owner if you do not know your numbers.
im learning...I CANT do it all myself...I can see where I need help cause Im struggling with what seems to be easy on the outset but winds up taking ALOT of my time...and Im trying to do it all at once...great video. thank you
What a magnetic topic, magnetic presentation, magnetic presenter. Love this Chris.
Glad you enjoyed it!
This is amazing video. tons of value! Thank you
Awesome presentation... I will be using it in my business training. Best thing I ever did was hire staff. Thanks for another great tutorial.
This is GOLD.
It's such a truth to beckon thanks future for this revolutionary knowledge
This video just completely changed my perspective on business. Thank you Chris.
This is exactly how we are to think as entrepreneurs. The down side some entrepreneurs hire the wrong people and so that "FREE TIME" that they could get been leverages is sound over seeing the work of the freelancers. This is a signature in my Region and prone to small businesses as apposed to Larger businesses. What would you suggest? Excellent proofing above 🙌👍😊
My mind was just blown 🧐🤩
Thanks so much for just scratching the surface of what’s possible
Right on time with the guidance! Thank you Chris and the team
BTW just pointing out the little gap in the opportunity cost calculated right at the end ... It will be = 21k or 9k - (cost for those 7 or 3 clients be fulfilled). Not just the 21k or 9k.
So $1600 vs $2420
@@Blumpkinbie I haven't done the calculation just the equation didn't seem right.
I belive he should have multiplyed his 800$profit....if 2.2k was cost and 3000 was total profit... After 3 jobs it would be ...2,400profit not 9k....you took in 9k but lost 2.2 in cost each time... Thus 6.6k loss out of 9k total profit...you make less than what his math was...
@@mikekelley9235 thanks for calculating.
Loved this bit. More please. Merci !
The value is delivered and delicious, however I’d like to point out that the option of doing it on his own is more accurate. ( 3000-($to outsource)=800*3=2400, which is < than 2420; in the conservative example)
Branding 101 brand the idea
Great Podcast Segue Greg, Ive listened to the youtube vids as podcasts for years I need to check the podcasts
Hi, I feel like there is a flaw in your explanation, maybe you could tell me where I’m wrong.
You are comparing 9.000$ with 2.240$ but in reality out of those 3x3.000$, there is 3x2.200$ given to the “freelancers”. But you actually have to compare 800x3 = 2.400$ with the 2.200$ . The difference is still there, but it is so much less than it seems. I get it that it gives also the opportunity to grow for the business but it is a longer term strategy, and god knows how the pandemic have made it difficult on the short - medium term, and sometimes this small reward ain’t worth it.
What do you think ?
Yes, this would be comparing apples to apples. If the designer hires out 2,200 worth of their labor, to free up 20 hours to focus on lead generation, and are still able to generate 800 profit each project, then yes 800 x 3 new projects would be what you compare it to.
The calculation here is the right path to gauge if you should hire out yourself, but it seems like with these numbers, it's about the same value. The insight that if the entrepreneur can become better at lead generation and change those lead conversion rates (say getting 7 projects lined up with 20 hours of work, instead of 3) THEN it would be worth their time to focus on lead generation as a skill to grow. It would be cost neutral as they start, and if they can get better then would double their earning potential in this scenario.
$2400 vs $2420 in your bank account.
So given that funnel will be the same, it means having 3x20=60 more hours to improve the business, go to gym or have fun.
And this comes at cost of having about the same amount of money in the longer period! Which may or may not be possible.
So it’s something to think about and try to nail down the details but the concept still makes sense in 5 years horizon.
It's weird that he made such an obvious mistake. The overall concept still makes perfect sense, but since he screwed up the math it skips over a really important point.
There's also the fact that this income is delayed. If you need to earn money today, this video is bad advice. If you're looking to increase profits over the course of the next year, then it's great advice.
amazing, thanks a lot guys, you're paving the way
I just came back to this video and still love the content.
Thx so much for exposing the opportunity cost of trying to do everything myself
Thank you
Thank you🙏
This is some valuable information
Also a very good indecator of how much to charge. To not charge less then another (maybe better) person in your field can do it for. (starting to learn a lot from you channel, so much thanks! i`m also working on me and this gives me confedence to keep going. I graduate collage in June/Juli so its a hard leap from there.)
Chris your intro is captivating 😂
so good
Just 1 thing Chris. Technically each client is worth 3000 but you would have to outsource the future work as well. So the opportunity in the future is actually 800(profit) x number of new clients. And the opportunity cost is opportunity in the future - 800.
Brilliant as always.
Thank you! Cheers!
I'm convinced
Work is honourable
That last thing you said, about Why … thanks bro.
You’re very welcome
this video was the reason that i make that NOTIFICATION ON!
This is the first video I just watched in your channel and I am your fan now.
If a video has 400 like to dislike ratio and has more than 10,000 views, then that's pure Gold!
Genius!
Why whouldn't I out-source the marketing instead of out-sourcing the actually work I studied for?
I do agree on having more time by hiring others, which can be spent again elsewhere. Good advice on that! Yet there is the choice to choose.
Technically, you could outsource both in the end if you wanted to. Also, if you do all the work, then it doesn't matter how good the marketing is (after a point) because there will be too many jobs for you to do by yourself, whereas if you do the marketing and outsource the work, you can expand for longer before the managing of multiple freelancers becomes too much to handle (at least that's my thought).
You can do that.
The reason you can outsource the work is because you can actually judge if the freelancer does a good job or not. If you're outsourcing parts of your business that you don't understand, it will be harder to judge the execution of the outsourced marketing person. Easy way to waste money.
@@derrickduplessy215 good point
Love that all of you are adding on to the subject
I am starting to like math finally. 😊 It's awesome how you showed the true cost of opportunity. Loved this video, it's all in the mindset.
Thx
That explanation makes sense a lot that is great measure and what get measure get improve, thanks for sharing
Thanks for watching!
Really love the content and knowledge bombs you guys are providing! How do you deal with freelancers who deliver products that doesn't meet the quality of what you normally deliver to your clients when you are doing it yourself? I feel like if someone pays for my services, it's because they have seen my work and want the same results. We have tried tons of freelancers and it's always the same, I have to redo the code because it doesn't meet our standards, hence making us lose a lot of time and money. Any idea how we could deal with that?
Ni COGS 🔥🔥🔥🔥
New subscriber here, love your content!
Welcome aboard!
Thanks for the presentation ! May I ask you where did you get this digital white board from ? Thanks !
👍👍
Please learn the skill before you outsource. If you want to build a business, it's going to be important to understand all the fundamental pieces sales, marketing and operations. Truly scared for people who just want to outsource everything without a basic understanding of them. You only a few good videos, a course, or couple books to learn. The Futur or RUclips University are excellent places to learn.
I don't know anything about coding. do you think I should learn coding before outsourcing? I think you should outsource things that aren't part of your core competency.
@@thefutur Why then waste time on design school? You just need to study marketing and then choose the industry where you want to make money ...
I think Chris will agree learning a bit of sales and marketing are key to building a sustainable business. He is good at both because they were important enough to learn. Lots of comments are suggesting outsourcing these core business skills. Understanding and knowing how to do something are two totally different things. Please take the time to read, watch videos so you can understand exactly what should be getting when you decide to outsource.
@@derrickduplessy215 Absolutely no harm is nailing at least the fundamentals of the industry. What is it going to take, a few months and a couple thousand bucks? The returns on that are massive: reduced risk and better picture of the operations overall.
Great video but I’m not sure it’s correct to compare the $9000 revenue with $2200 profit (saves on not let it to freelancers).
If he gets $9000 for 3 jobs he needs to pay someone 3x$2200 to get them done.
He will end up with 9000-3x2200=$2400.
This still more than 2200 but as in the range of the stock market ROI discussed.
Anyway, you got a lot of inspiring videos, so thanks.
I thought the idea was when you get good at something people want YOU not some other guy you decide to hire because you cant be arsed spending a day doing the work they asked you to do, but I understand that the people who do delegate usually try to rip that guy off paying them as little as they can. Finding someone who think your day rate is 3k is another challenge(obviously you dont tell them it's a day)
I think need help understanding this strategy... if he hired more freelancers the COGS for 3 extra jobs would be $6600 which would leave a Gross Profit of $2400 ($9000-$6600). In that case doing the work himself and generating a ROI of $2420 would be more profitable... or am I missing something?
What about outsourcing the marketing instead? Also, 25% CR is high,I’d expect 10%...
But out of this 9k he would only keep 3x800 for himself as the 2200 goes to pay the ppl producing it. So he would have to have alot more projects going at the same time.
yea i didn't think of this one
yep. he could focus on developing his craft so he can level up and charge more.
@MarsVai I was just about to make this comment, Thanks @theFutur for the quick response to this :)
I saw this too. If you take the investment ROI away, then in the end he gets $200 more in profit but 3 additional clients to work with. Thing missing was that he has to invest the # of hours into overseeing the execution of the project by his freelancers x3 (these hours take away from the 20 hours he frees up by outsourcing)
@@jamesyigitoz6587 I do understand tho that in this case the specifics aren´t rly that important, but rather the principle. Opportunity cost etc. I would argue, that by doing the work urself ur also developing ur skill and craft. I´m sure there is a way to mix and match this. Mabye you don´t delegate all the work to freelancers, but hire somebody to do editing for example and focus more on direction or initial ideas etc.
Hey everyone
So basically outsource to save time --> use that time to put into stuff with a higher ROI?
I'm a freelancer in graphic design and marketing videos. But I'm stuck in finding clients. Can you give me some advices please?
There's hundreds of videos on this channel to help you out :)
What if I'd rather hire someone to do the marketing or discuss contracts on my behalf? I would like to know your opinion on this.
Hire them.
Hate to disagree with Master Do. If you are inclined to outsource contract negotiations or marketing without understanding how to do them you are lighting 💰 on 🔥. Best to learn these skills yourself first then outsource if you choose.
@@derrickduplessy215
Any good resources that you can recommend on improving these skills for solopreneurs specifically?
I wish they would teach this in the Hispanic community 💯🙏💪
Chris Franklin there??
Solid advice in this video. Content idea (if it hasn't already been made on The Futur):
Chris to explain the value in having clients on retainer? Content creation is very project based, and can be sporadic sometimes. I recently locked a client into a retainer agreement but couldn't find much info in terms of retainers based on value or services or time for that matter.
Thanks for all the work you put into these btw!
not a fan of retainer.
Hmm is there any reason why you’re not into them? Are there any drawbacks to a retainer agreement?
I was watching this and was trying to understand but, I didn't understand can anybody help me understand this video. Because I know Chris had taught some valuable knowledge here but I am not able to grasp it.
Thank You
Why did you multiply by 3k, when he isn't doing the work himself in the example, so its $800?
yes. That's why he said opportunity cost instead of profit. He will still make 800 bucks per case, or 2400 bucks from 3 clients. The important thing however is:
1. He's expanding his freelancing pool so he can take on more projects at the same time.
2. He's really building a business instead of building a freelancing career. If he hires the right people and directs them properly, his business can quickly expand. But if you just do the work by yourself, you will always be stuck at the 2200-3000 range and you get fewer opportunities to get new projects since you are always limited to 1 project at a time.
I think he's just trying to teach a concept of how a businessman thinks instead of telling you the perfect business plan. Depending on the nature of your craft, most people will need to do a mix of both to ensure quality.
For example, I work in digital arts, so I can't imagine myself being completely dependent on hiring freelancers because I will lose my ability to ensure the quality of my works really fast once I stop practicing.
But fundamentally speaking, he's right. Businessmen are mostly like managers instead of workers. Once you become bigger, then you become a manager for your managers. And when you get even better, you hire a CEO to do your job. This is exactly why CEOs make so much money. Because they help free up their bosses' time while maintaining their profit. Everything is about how much your time worth when you get into the business world.
Where can I see the full version of this?
check link in description
@@thefutur I think a wrong video linked in the description. That is from not that video.
Is it 3x800 (profit) or 3x3000 (grosse) he will never see most of the 3k if he outsources
WRONG.....YOU guys were adding up the cost margin as PROFIT!!! 3k revenue.... subtract 2.2k costs...800$... But then you multiplyed (2.2k the cost) and called it your profit.... When you were done with 10 jobs you would end up at 8,000...not 22,000.... Thats a BIG margin of difference. I am just doing this to help EVERYONE... Love the channel and im not in advertisement or web design...but im learning to run a business...and love watching this guy work...sorry to be that guy... But its not accurate....PLEASE do reply if I WAS mistaken.....but cost of business is a loss untill you get into doing taxes...then things change...and i recommend doing calculations and not planning on getting anything back because then whatever you do get back will be extra money then
The only math /calculations we needed to learn about and they never taught us in school (obviously they don't want you to know)... and my poor [Asian] parents forced me to waste years of my life mastering advanced calculus & other useless sh*t so I can go to school and be a good worker and trade my time & labor for a fixed salary. Ughhhh. Should've read rich dad poor dad in kindergarden to avoid having my time taken from me...but I'm glad I read it in college at least so I didn't get too deep into the rat race trap.
But he’s only making 800 profit so if he gets 7 new clients that’s $5,600 and three new clients is only $2,400 not $21,000 and $9,000
Correct, he only takes home $800 x the number of jobs (hypothetically) but the business made the big numbers so that looks good, plus you employed ppl; also a plus, and got clients under your belt, so you can now show ppl real life results of your involvement in xyz process. All this is in addition to you having more time to do whatever to maximize your potential.
This all assumes that you have the available funds to market or hire in the first place... More realistically most people starting out will have to do the work themselves or get the money from somewhere else like a 9-5
Ahh correct me if I'm wrong but it's not 3 x $3000 it's 3 x $800 = $2400. Keep doing it yourself.... but I get it...stop being a artist / craftsman and be a marketer...... K boring.... but necessary if you want to be rich.
This one was too easy...
Also wasn't he needimg to cost out the freelancers for each additional job? So 3 jobs by 800 profit is only 2400, so 200 difference from doing it himself
I was thinking the same. So i did some math on my own.
Let's say he makes 5 projects on his own. He would need around 100 hours and would get 15k at the end.
If he uses 100 hours for instagram and gets 3 projects every 20 hours he would have 15 projects which all make a profit of 800$ so he has only 12 k in the end. (Just correct me if i did a mistake)
But on the other Hand he would make much more than 15 k if he would get 7 projects every 20 hours. Nonetheless the math shown in the video was not telling the hole truth and he only did that because nobody would care if the profits were only 200$.
OR…work more than 8 hours/day because you love your job.
Peoples exploitation 😎