We Are Business Owners
We are Business Owners. Do you recognize that?
What Do You Do?
When meeting new people, there is a question that inevitably comes up.
“So, what do you do?”
A speedy way to get someone to stop talking to you is to reply, “I’m a financial advisor.”
They’ll usually say, “Oh, I already have one.”
“Good for you…?”
They must have too much experience with financial representatives from Northwestern Mutual.
There are a lot of ways I could answer that question. I once received training in a three-pronged approach to answering.
- State a problem “everyone” has that your “target” may share.
- State how you solve that problem.
- Share how people feel after it is solved.
So it might go like this.
Unsuspecting Victim: “So, what do you do?”
Me (according to the method): “You know how most people wonder if they are saving enough for retirement? Our unique planning process shows clients how to turn their nest egg into a retirement income stream. That way, they can sleep soundly at night knowing they will never run out of money.”
Unsuspecting Victim: “I just asked what you do, not for your life story….”
Generally, my actual response is, “I’m a financial planner,” followed immediately by some way to turn the conversation back to them. It gives them an easy out without feeling like they need to make the conversation awkward. But sometimes, I have a different response.
“So, what do you do?”
“I am a business owner.”
“Oh yeah? What business?”
“I own a financial education company. We produce a podcast, workshops, and a magazine. I also co-own a local financial planning firm, and a few thousand of the best businesses in the world.”
Doesn’t that sound fun? I co-own La Crosse Financial Planning 50/50 with my business partner. But there is no limit on the number that “co-” can represent.
If you’ve been around here for a while, you have heard me talk about being “partial owners of the best businesses in the world.” But I’m going to switch it to “co-owners.” It sounds better.
Who Do You Work With?
A good follow-up question to “What do you do?” is “Who do you do it for?”
While most firms are generalists, there are actually a lot of specialists out there. You could specialize in working with Medical Professionals, like Swartz Financial Planning. You could specialize in working with Gen. X and Millennials, like XY Financial Planning. Or you could specialize in working with Folks Over Fifty, like La Crosse Financial Planning.
But sometimes, I like to answer, “I work with business owners.”
Maybe not in the traditional sense. But in a very real sense, I work exclusively with business owners.
We Are Business Owners
We are business owners. We are co-owners of the best businesses in the world. We invest our hard-earned dollars into businesses that will work as hard for us. And we reap the profits those businesses generate.
I only work with business owners. I only work with those who recognize that the best way to grow their income faster than the cost of living is to own the best businesses in the world. Folks who would rather stay in cash or loan their cash to businesses instead of owning those businesses will not be allowed to work with me. I won’t pilot a sinking ship.
When we first started investing, we were not throwing money into “the stock market.” We were not gambling. We were not trading. We were investing in ownership shares of the best businesses.
What do we do early in our careers? We primarily work in our career and are business owners on the side. The balance of those two begins to shift over our lifetime. Eventually, our business ownership makes more money than we do. That’s when we can retire. That’s when we transition into full-time business ownership.
We do not retire around here. We quit our earned income—which has become a side gig—so we can focus on being full-time business owners.
The Results
The results of being a business owner are terrific.
Over the last thirty years, ending 2022, the cost of everything we need and want to buy has more than doubled. It is up 2.1 times.
However, ownership in 500 of the best businesses has done far better.
The dividend of the S&P 500—the profits paid to the owners of those companies is up 5.5 times over those thirty years.
I say it again.
The cost of living is up 2.1 times.
The profits of business owners are up 5.5 times.
But businesses are more than value-creating money-printing machines. They have value themselves because they own real property and patents.
The value of ownership shares in the S&P 500, from the end of 1992 through 2022, is up 8.8 times.
For the thirty years ending December of 2022:
Inflation: Up 2.1 times.
Profits Paid: Up 5.5 times.
Value Accrued: Up 8.8 times.
It’s good to be a business owner.
Oh, and in case you forgot, 2022 ended in the middle of a bear market. I can’t wait for those numbers during a good season.
Don’t forget it. We are not “pre-retirees.” We are not “retired.”
