Lee talks about how you are messing up if you are profiting lots of money at first. Check us out at https://www.junkra.com Subscribe to this channel for all the best junk removal industry info Like and follow us on Facebook at Junk Removal Authority
What’s good guys? Good afternoon! Good afternoon! We’re having a wonderful day here today. Just a great day. We’ve had Omar, our manager in our Charlotte and Greensboro offices. Stopping over here at Raleigh. We met and figuring out a game plan to correct some issues we’re having at one of our locations. We will implement that tomorrow and see the improvements come through. We’re going to move fast and fix the issues we’re having.
What I want to talk about is somebody posted on one of our YouTube videos. I appreciate everybody for watching. I always appreciate the comments. I’m glad he posted this comment because it brought up a good point. I think it was the video. How much money can a junk removal business make? It’s a great video. I believe that video has over a thousand views now. A lot of people find it helpful. It was kind of bunch of likes. I’m glad to be able to bring that information. What he said though, is he believed that somebody new that doesn’t have employees when they first start, we’ll be bringing home about 50%. A couple of mistakes he made in that statement. He’s right, a lot of people are going to have a profit about 50% right from the start. Here’s what’s wrong with the statement he just made. Number one, he used the word believe, not for sure. Believe, you all need to know your numbers. You need to know for sure what you’re making as far as percentages of your income. What you’re bringing it on? That’s the problem as you all pocketing cash and not reporting it. It’s hard to track. You don’t know exactly what you’re doing.
One of the greatest things we’ve ever done is report all of our income cash or not. A lot of people are going to critique that, but that way we know exactly where we stand. We can go get a loan on something. If we need to get a loan on something because all of our income is reported. We are complying with the IRS. We’re not giving them more money they deserve. I will bang out every single deduction I can get it and avoid paying a cent. I’ll go through an hour of work to avoid paying one penny to the IRS, but I’m going to do things legally. I’m going to do it by the book. You all got to know your books. I do tell and recommend everybody. Don’t pocket in that cash. Report the cash. Be completely honest. The problem with cash is you limit your growth. You get too worried about one.
You got to spend that cash somewhere. Two, you can’t trust employees to take all that cash. You’re just limiting yourself. You’re limiting your potential when you don’t keep accurate books and you’re not reporting your cash. The other part of the statement that he was incorrect. If you are in your business and you’re starting. You’re making 50% profit margins, you aren’t going to grow very fast. You’re making a mistake. You’re being selfish. You are taking everything out that is possible out of your business right now. You’re forsaking the future of your business a couple of years down the line. You are slowing down your progress tremendously. A matter of fact, you might completely stunt your progress. They might not be slowing down. It might be, you aren’t going to progress.
I can’t count the number of junk removal companies that have been in business for the period of time. We have just in our local market too that have been in business the same amount of time. They got 1 or 2 trucks. We got 9 dump trucks, 2 pickup trucks and trailers. So, 11 work vehicles total, doing our jobs. We got three locations. We’re doing $2,000,000 a year revenue. These guys are out here doing what we did in year 1 or year 2. They’re doing $200,000, to $300,000. They’ve been in business for 6 years. They might be bringing home. Yeah, they might be bringing home $60,000 to $70,000 or whatever. They’re working on the truck all the time. They’re going to wear their body out at some point. They aren’t being able to do it forever. You know, $60,000 or $70,000. It’s is really a whole lot of money.
As soon as you realize 60 and 70 grand is not enough, then you’re going to realize you’ve got to step your game up. You’re not asking enough guys. You’re not expecting you’re asking too little. You have too low expectations for yourself. It probably goes back to your parents, teachers and everybody else. They told you needed to be reasonable in your goals and that you needed to just be willing to go. Accept some job, make $50,000 to $60,000 a year. Work your 9 to 5 then go home and do whatever. Just be satisfied. Being satisfied is one of the quickest ways to not become financially successful. Feeling satisfied is jeopardizing the future for your kids, wife and your family. It’s jeopardizing you too.
I’m at my happiest when I am working towards a big goal. Every single time that I have gotten satisfied, it didn’t last long because I shut it down as soon as I can. Before I became conscious of this. I’d reach plateau. I’d be satisfied. I get to the point making hundred thousand dollars a year. I’m satisfied. It’s just a number. When you’re making $50,000, you think you’re going to get $100,000. That’s going to solve all your problems. You get to $100,000, you think you can get to $200,000. If you get to $200,000, you think you can get $400,000. I haven’t got $800,000 yet. I’m making 800 yet. See what I’m talking about is every goal you hit, it’s a fake number. There’s nothing real. There’s nothing real about money.
It’s a number. It’s a digital currency. People trading cryptocurrencies and like that. Real money is a digital currency. Isn’t nothing real about it. It’s a fake number. You’re setting this goal. That’s way too small. When you hit it, you’re not setting another goal to strive and grow. If you can make $100,000, you can make a million. If you could make a million, you can make $10,000,000. It’s literally the same amount of effort to do both. Yeah, you’re going to encounter disappointments on both. You might encounter a few more disappointments when you’re trying to up that goal. A matter of fact is as far as actual work is the same amount of work to make $50,000, $100,000, $1,000,000 or $10,000,000 a year. It’s the same amount of work. The complexity level increases, but it’s the same amount of effort.
Generally, if you’re smart about it, there’s no more risk. You have just as much risk almost skimming around, making $50,000 or $100,000 a year as you do and make it a million or 10,000,000 a year. There’s different levels and different plateaus you hit. There’ll be periods where your stress rises and then it kind of evens out. Then you’ll get to a point where it rises and then evens out as you work your way up to the ladder. You all are setting goals way too small. You’re getting satisfied, screw being satisfied. Isn’t none of us really ever satisfied anyway. If you tell yourself you’re satisfied, you’re pretending. Nobody should be completely satisfied with where they’re at. I can guarantee you, you will be happier when you’re always striving for something and not just saying that you’re that you’re satisfied.
Fifty percent is way too high profit margins. It’s completely ridiculous. You’re not spending enough on advertising. You’re not training up people too. You’re not. You’re not bringing in people and training them how to do the job, so you can run multiple crews. We need to be going after volume. When you first start, it is not about making tons and tons of money when you first get going. It’s about building a business that is going to rake in the cash years down the line. It’s going to provide for you. Allow you to sell it, maybe one day. Allow you to retire on it. Allow you to gift it to your kids, provide financial security and provide life freedom. If you’re taking out 50% of your money at the start of your business. If it’s not being reinvested back in it, it isn’t last very long. You’re certainly not going to build anything of note. Lee Godbold here, LG just keeping it real on a Thursday afternoon. I’m not going to sugarcoat it. I’m going to tell it. I’m going to call it like it is. Some of you isn’t going like it and you’re going to dislike this video. You’re going to unsubscribe from a channel, so be it. Those of you who like it. Please subscribe and like this video. Comment below. Let me know what you think. The first step in increasing your business tremendously is to believe you can do it. To set goals and start working on them. We’ll talk to everybody soon.