The Five Money Personalities of Business Owners

Most contractors don’t fail because they don’t work hard enough. They fail because of the stories they tell themselves about money.

You can have strong sales, a full calendar, and still feel broke at the end of every month. And it’s not because you need a new accounting software or a better spreadsheet. It’s because your money personality is quietly driving your financial decisions, often without you realizing it.

The Five Money Personalities

1. The Hero: This personality is characterized by a strong desire to help others, often leading to giving discounts or free services to friends and family. While their generosity is commendable, it can jeopardize their business's financial stability. Heroes often prioritize being liked over being paid fairly, which can result in empty bank accounts despite high sales.

2. The Hunter: Hunters are driven by the pursuit of new opportunities and revenue. They often chase every shiny object, believing that the next big contract will solve their financial problems. However, this focus on top-line revenue can lead to cash flow issues, as they may take on unprofitable jobs in the hope of future gains.

3. The Hoarder: Hoarders are characterized by an obsessive need to save cash, often stemming from past financial trauma. They may avoid necessary investments in their business due to fear of losing money. This can lead to stagnation, as they miss out on opportunities for growth and improvement.

4. The Hater: This personality believes that money is dirty and feels guilty about charging what they are worth. They often undercharge for their services and over-deliver to compensate for their perceived inadequacies. This mindset can lead to burnout and financial strain.

5. The Hotshot: Hotshots are focused on projecting an image of success, often spending money on flashy vehicles and branding rather than on profitable investments. They may believe that looking successful equates to being successful, which can lead to financial instability.

Action Steps for Business Owners

Understanding which money personality resonates with you is the first step toward improving your financial health. Here are three actionable steps you can take:

1. Self-Assessment: Reflect on your financial behaviors and identify which of the five money personalities you align with most closely. Consider your upbringing and the beliefs you hold about money. Ask yourself questions like:

   What did I learn about money growing up?

   Do I prioritize being liked over financial stability?

   Am I chasing every opportunity without considering profitability?

2. Set Financial Boundaries: Regardless of your money personality, establishing clear financial boundaries is crucial. For example, if you identify as a Hero, practice saying "no" to requests for free work. If you're a Hunter, focus on evaluating the profitability of opportunities before jumping in. Setting boundaries will help you protect your business's financial health.

3. Implement the Two Number Method: Leanne introduced a simple yet effective strategy called the Two Number Method. This involves identifying two key numbers for your business: your profitable investments and your waste.

4. Profitable Investments: Determine what expenses generate multiple dollars back for every dollar spent (e.g., marketing, hiring skilled employees).

5. Waste: Identify unnecessary expenses that do not contribute to your business's growth. By categorizing your spending, you can make more informed financial decisions and improve your cash flow.

Understanding the psychology behind your financial behaviors can lead to significant improvements in your business's profitability. By identifying your money personality, setting financial boundaries, and implementing the Two Number Method, you can take control of your finances and pave the way for a more successful business.

Resources

LinkedIn: https://www.linkedin.com/in/leanneozainesmith/

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Download Leanne's guide at gift.profitwithleanne.com

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