The War on Small Business
want to talk to you today about a topic that I have been watching for a number of years,
and it has really come to the head in the last two years as we've dealt with the pandemic.
I recently had an interview on my podcast, The Dentist Freedom Blueprint, with best-selling author Carol Roth. (You can listen to Part 1 of our interview here, and Part 2 here.) Carol is a recovering investment banker – she's been in the financial markets for years, but she's always been a fan of the small business capitalists/entrepreneurs, who are the crux and the basis of this country.
People talk about the big corporations, corporatism, and how the elites trade wealth with the big corporations, and it's true. It's happened in a big way these last two years. Carol wrote a great book called “The War on Small Business” and I recommend you pick up a copy.
Carol and I talked about the fact that small businesses really have a target on their backs. You will wonder, why would that be? If small business is the greatest employer in this country, and it's really the crux of what makes this country run, why would big government want to be against small business?
Simply, it is all about control. It's very difficult for the government to have control over decentralized, fragmented industries. That's the problem that they face. So when there's an opportunity, when there's a crisis in play like we have had with COVID, big corporations were allowed to stay open and became “essential.”
In my own industry of dentistry, I've been watching how the insurance companies (again, this is big money, so big money control) over the last decade have been pounding down the reimbursement margins, reducing the profitability of dentists. Other industries are facing the same thing in different regards.
I watch to see how people have tried to maintain and keep their head above water, and as their margin starts to shrink they still say, “Well, you know, we can play the game. We can play the game against insurance companies.”
Nope. You can't play the game – the game is too big. You can try as long as you can to keep your head above water, but that's all you're doing. By playing that game, you're sinking your ship little by little.
What's the answer to all of this?
You've got to have alternative streams of income. You've got to build wealth outside of your primary income stream. I'm not saying that your business, your industry is going to be fatally flawed forever, but you've got to change the way you look at it. It can be a step up.
For me I left dentistry not because I didn't like it, or because insurance companies were decreasing my profitability (I left before all that happened) but because I wanted time back. And I created that time. I had my Plan B set up through investing outside the practice, and I did both. I had the practice, the business active income, and I had the Plan B passive income.
If you focus everything on your primary income source, you are very vulnerable. We saw it during COVID: the government comes in and shuts everybody down. They flooded the market with helicopter money, but that's only going to be a tax on your future wealth via inflation, which we have today.
Figuring out your Plan B and focusing on what that looks like is so critical. I can't implore you enough to know what that means. It's not about a 401k, it's not about whole life insurance, it's not about annuity, it's not about crypto. You can play games with that all you want to, and if there's a purpose for any of those products, fine. Great.
But if you don't have a game plan, that's focused on creating passive income and wealth that is indexed to inflation, you're falling behind very, very quickly.
That's what we do in Freedom Founders. It's what I've done for over 40 years – this plan works. It’s like Warren Buffet: You’ve got to focus on a plan, you stay with it, and you take it all the way to the end. That’s what creates your Time Freedom, which is what everybody wants. You want more money? You want wealth? Why? Because you want to buy back your time.
That's the key to everything in life. More time, more flexibility, more choices, more options – it's about your freedom. Join me sometime, and I’d love to talk to you about how you can create more freedom in your life.
In fact, I still have spots left for a small virtual group I’m hosting next month on the fundamentals of real estate and passive income creation, and I’d love to work with you. You can learn more and save your seat here: www.freedomfounders.com/30DayBlueprint
To your freedom!
P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think) :
1. Schedule a Call with My Team:
If you’d like to replace your active practice income with passive investment income within 2-3 years, and you have at least $1M in available capital (can include residential/practice equity or practice sale), then schedule a call with my team. If it looks like there is a mutual fit, you’ll have the opportunity to attend one of our upcoming member events as a guest. www.freedomfounders.com/schedule
2. Get Your Free Retirement Scorecard:
Benchmark your retirement and wealth-building against hundreds of other practice professionals, and get personalized feedback on your biggest opportunities and leverage points. Go to www.FreedomFounders.com/Scorecard to take the 3 minute assessment and get your scorecard.
3. Ready to Step Away?
“How Much is Enough?” This simple question keeps hard-working professionals at the hamster wheel of active income far longer than they need to be. Watch this free training, and discover a proven model for determining how much you really need before hanging up the handpiece! www.freedomfounders.com/training
4. Apply To Visit The Mastermind:
If you’d like to join dozens of dentists, docs, and practice professionals on the fast track to Freedom (3-5 years or less), visit www.freedomfounders.com/step-1 to apply for a guest seat.