Episode 407: What is your cap number?
In this episode, Fiona talks about the concept of a "cap number" and its significance in defining financial satisfaction and goals within your business endeavours. Tune in!
You'll Learn How To:
Exploring the notion of a "cap number"
Various perspectives on defining personal cap numbers
Aligning financial goals
Considering financial fulfilment in business
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Welcome to episode 407 of the My Daily Business podcast. Today is a quick tip episode and that's where I share a tip tool or tactic that you can implement immediately. Today's one comes from a recent discussion I had with one of the group coaching groups, and I thought that it drummed up so much debate and discussion that why not bring it to a larger audience through this podcast? Before I get stuck into that, I want to let you know that we've had many people reach out about the Marketing for Your Small Business course and coaching program that is currently happening. It is too late for you to sign up to that if you are interested. However, we will be running it later in the year. One thing I shouldn't mention is that if you own the Marketing for Your Small Business course already, you can sign up for the coaching program for a small fee.
It's cheaper for you to own the course and then sign up each time we offer the coaching component, then buy the whole thing as one package. If you are interested in that, I would go on over to marketingforyoursmallbusiness.com. Buy the course now and then you can sign up for the live coaching when it happens later this year for a very small fee. Now all the information for that is just over at marketingforyoursmallbusiness.com, but if you have any questions, you can always email us at hello@mydailybusiness.com. Before we jump in, I also want to acknowledge that traditional owners and custodians on the land on which I run these courses, run these coaching things, and that is the Wurrung and Wurundjeri people of the Kulin Nation. And I pay my respects to their elders past and present and acknowledge that sovereignty has never been ceded. Let's get into today's quick tip episode.
Often in business, we are confronted with this constant awareness of how much money we could make, and we see people all the time whether they're telling the truth or not about how much money they've made and how quickly they've made that money. One of the books we have been looking at in group coaching is The Company of One. This is a great book. I've done a whole podcast about it. But in that, there are so many great questions to think about and consider, especially if you are not trying to build this gigantic empire. If you're somebody who doesn't necessarily want to have heaps of staff to manage. you're keeping it intentionally small, one of the key questions that it asks you is what is enough financially and what is your cap number?
I don't know if it uses the word cap number, not to put a cap on yourself. Because we're not all about limiting beliefs and thinking you can only earn so much, but like, what's the number you would be super happy with and the way you would feel comfortable in your life? Now, for every single person, they're going to have a different potentially different number. And without just jumping straight away to, well if I had $5 million, I'd feel happy. thinking about what that number is and what else you want in life outside of potentially just your ego being ticked in terms of a number. For example, when we had this discussion in group coaching, we were talking about some of us having mortgages and we're like, in one particular case, I'd like to pay off the mortgage, I'd like to buy an investment property, and then I think I'll be pretty fine.
Other people wanted greater realisations and needed financial help to get there. Whereas other people were like, I'm not even interested in buying property, I'd never want to be a property owner, I'd never want to be tied down to something like that, but what I would love is, and they want a certain amount of time off. What is your cap number? Often, we just think about this huge number or I want to get there, and then we get there, we move the goalposts again. But like thinking about what are you happy with? I know this is a discussion that I also had with Paul Miners who came on the podcast a while ago, a productivity expert that we've worked with and he was saying, I'm happy with how much my business brings in right now, but what I want to do is to just optimise it so that I'm making the same amount of money with less time, less effort, just everything working well.
Automation being top-notch so that I can have even more time with my family. I loved when he talked about that and I feel similar in that it's all about time. I've said that from the very beginning. One of the number one values of my business is freedom. It always has been. It's why I'm very anti-hussle and always have been. I very much always worked part-time in this business because you can't get more time, you can always make more money, but you can't get more time. Today it's thinking, what is that number? And that might require you to go away and have a look at what your superannuation looks like, or your pension or your 401k, what is any wealth creation that you've maybe you want to earn a certain amount of money so that you can pour more money into shares and investments.
Maybe you want to earn a certain amount of money so you completely pay off not only your mortgage but the mortgage of your parents. Maybe you want to send your kids through a certain school or have enough money so that your kids can choose whatever they want to choose at university or college. And that is going to be paid for. Maybe you want to then pay for other people to go through college who you don't know, like a scholarship system. Thinking about a number like that as opposed to I'm in this industry and therefore I've seen other people earn X, Y, Z, so I should earn that. Or My business has been around for X amount of years or whatever. But having that cap number, even if it's a cap number where you're like, you know what, if my business got to this point, I would be able to sell it for this much and then that would be it.
Then I would do something else with my life. That is such an important question that I don't think is thought about enough by people thinking about what is the number that I'm happy with and I am happy with, as opposed to where you think society or your business industry or whatever thinks that you should get to. That's it. What is your cap number? I think sometimes just having those discussions, it's like, what else would I want? I often have discussions with my family or my son. I used to always talk about this with my mom. We'd always just play that game of like, if you won Talo, what would you spend it on? The older you get, the more you're like, what would I spend it on? Because outside of paying off a mortgage, maybe getting an investment property, maybe donating some money, volunteering is like, what else do I want that money to buy?
Because a lot of the time people don't want what money buys. They want freedom, they want time, and they want to spend time in nature. And yes, money can help with that, but when we drill down, what do you want from the financial benefit that your business brings in and what is that cap number? That is it for today's quick tip episode. You don't have to share your cap number, but anything that might have come up for you. You can always send us a DM @mydailybusiness on TikTok or @mydailybusiness_ on Instagram. I love hearing from people who send us all sorts of feedback about this podcast. What it's helped them with or what they did today. I just was on my run and I listened to this and now I'm going to do this.
We love receiving that. Please never be a stranger. This is a community, this is a chance for me to connect with you. Please feel free to send your thoughts to us. If you found this useful, I would love it so much. If you could leave a review or hit the stars, whether you're on Spotify or Apple or wherever you listen to this podcast, it helps us get found by other small business owners and that in turn helps the small business community. Thanks for reading and I'll see you next time. Bye.
