Strategic Choices Separate you from the 99%

Happy Sunday!

I am grateful you’re here! I don’t know about you, but I love this season. I live in a place where the temperature and scenery are truly amazing this time of year!

Last week, we dove into the KEYS securing your family's future by creating generational wealth. My hope is that you were able to put some steps in place so you’re closer to achieving that legacy we all long for. This week, we continue our series (6 of 6) by wrapping our last five newsletters into an executable action-driven roadmap.

But before we get into the newsletter, here are some treats for you…

• Our guest on this week’s episode of Pay or Quit shares a tragedy he experienced at the age of 27 that changed his life forever. Hall of Fame Speaker, World Record Holder, and phenomenal business leader Chad Hymas tells us how he overcame something most could not. Listen here or click the thumbnail below!

• If you’re a big fan of learning on YouTube, like I am, check out my channel @ShawnAustinJohnson 

Did you know that only 7% of the U.S. population owns a business, and of those, a mere 5% generate over $1 million in annual revenue? Even more rare are the businesses hitting $10 million or more annually—just 1% of all businesses ever reach that level of success.

As business owners, we’re not just aiming for growth and financial security—we’re also building toward the ultimate goal: generational wealth. But achieving this requires more than just keeping your business running day to day. It’s about making strategic choices, reinvesting wisely, diversifying your income streams, and ensuring your money works for you both inside and outside of your business. In this newsletter, we’ll reiterate the main points from our long-term financial strategies series to help you keep them front of mind as you take steps in your life to master them.

1. Why Business Owners Must Diversify Their Income Streams

Relying solely on your business for income can be a risky gamble. Economic downturns, health issues, or market disruptions can all jeopardize your livelihood if you have no backup plan.

The Solution: Diversify your income. By creating multiple revenue streams, you reduce financial risk and open the door to increased wealth over time. Start with reinvesting in your business to generate recurring revenue (like subscription models) and explore external opportunities like real estate, stocks, or partnerships.

Key Takeaway: Diversified income creates financial security, gives you the freedom to take calculated risks, and allows you to build wealth steadily over time.

2. How Reinvesting Business Profits Can Build Financial Stability

Profit is not just for celebration—it’s a tool for growth. Rather than simply pocketing profits or letting them sit idle, strategically reinvest them back into your business to drive efficiency and create more predictable revenue streams.

Top Reinvestment Strategies:

• Build Efficiencies: Automate tasks and streamline processes to cut costs and free up time for growth.

• Increase Recurring Revenues: Reinvest in products or services that generate steady, recurring income, like retainer agreements.

• Invest in Marketing: Expanding marketing efforts can generate new leads and drive future growth.

Key Takeaway: Thoughtful reinvestment turns your business into a self-sustaining engine of growth, increasing stability while positioning you for long-term success.

3. Unlocking Wealth Through Real Estate

Real estate is one of the most reliable and lucrative ways to build wealth. It offers consistent cash flow, long-term appreciation, and significant tax benefits.

Why Real Estate Works:

• Cash Flow: Rental income provides steady, predictable cash flow.

• Appreciation: Property values tend to rise over time, increasing your equity.

• Tax Benefits: Depreciation and deductible expenses reduce your taxable income, improving returns.

Key Takeaway: Real estate investments offer a reliable path to both short-term income and long-term wealth growth, making it an essential part of a diversified portfolio.

4. Transitioning From Working 'In' to Working 'On' Your Business

Prehaps my favorite strategy is this one. If you cannot move away from the daily grind of putting out fires and just keeping the business going, you miss out on taking actions that will advance your future. To scale, you need to step back and focus on high-level strategy.

How to Make the Shift:

• Delegate: Free yourself from routine tasks by empowering your team to manage operations.

• Implement Systems: Build processes that allow the business to run efficiently without constant oversight.

• Focus on Growth: Devote your time to strategy, exploring new markets, and financial planning.

Key Takeaway: By transitioning to working "on" your business, you’ll be able to focus on long-term growth, expansion, and profitability. If this is ignored, it will be ten years down the road, and you won’t know where the time has gone.

5. How to Build Generational Wealth with Rental Properties

Owning rental properties is a proven method to build wealth that can be passed down through generations. Beyond cash flow, real estate offers the potential for appreciation, tax advantages, and tenant-paid loan paydown.

Compounding Wealth:

• Scale Your Portfolio: Reinvest profits from existing properties to acquire more.

• Leverage Equity: Use property equity to fund new investments and grow your portfolio.

Key Takeaway: Rental properties compound wealth over time, offering a dual benefit of consistent income and long-term equity growth that can be passed down to future generations.

Conclusion:

Building financial stability and generational wealth requires a combination of strategies—diversifying income, reinvesting business profits, and leveraging real estate for long-term growth. The journey starts with small steps, but the rewards are significant. Ready to take action? Start by evaluating your income streams and investment opportunities to secure your financial future.

For a deeper dive into each of these topics, I have a full newsletter that can be found here.