The Truth About Business vs. Personal Money
Here's what nobody tells you:
The money habits that work in your personal life become magnified disasters in business. Your business is a magnifying glass on your money psychology. Every belief, every instinct, every "that's just how money works" assumption gets amplified 10x when you're running a company.
Most business owners are trying to solve cash flow problems with personal finance solutions. It's like using a screwdriver when you need a wrench.
The 98% vs 2% Reality:
The 98% follow conventional money wisdom. The 2% do the opposite—and that's why they have money in their bank accounts while everyone else is limping from payroll to payroll.
Here's the kicker:
The same instincts that helped you survive financially as an individual could be sabotaging your business.
Think about it. Maybe you learned to save every penny because money was scarce growing up. That caution helped you avoid personal debt, but now it's preventing you from investing in the $50K marketing campaign that could generate $500K in revenue.
Or maybe you learned that "looking successful" opens doors. That worked when you needed to impress an employer, but now you're bleeding profit on a fancy office lease while your competitors work from home and bank the difference.
The paradoxes run deeper than you think.
3 Profit Paradoxes that Separate Winners from Everyone Else
There are countless business paradoxes. But these three show up in my office every hour on the hour. Every business owner carries at least one of these three paradoxes, often without realizing it.
Paradox #1: "Spending money saves taxes" vs. "Profitable businesses pay taxes gladly"
The 98% think:
Spending down to zero saves them money. They buy equipment they don't need, lease cars they don't want, and justify every purchase as a "tax write-off."
The 2% know:
That paying taxes on $100K profit beats saving taxes on $0 profit. They'd rather pay $30K in taxes and keep $70K than spend $100K to "save" $30K.
Reality check:
A $100 expense doesn't save you $100 in taxes—it saves you maybe $25. You're spending four dollars to save one. That's not tax strategy; that's financial suicide.
Paradox #2: "I need to look successful to be successful" vs. "Profit first, image second"
The 98%:
Buy the truck, the office, the lifestyle to appear successful. They think clients won't hire them if they don't look the part.
The 2%:
Build wealth quietly, then buy what they want. They know that cash in the bank impresses bank managers more than a shiny truck impresses prospects.
The truth:
Your prospects care about results, not your ride. The contractor with the beat-up truck and the fat bank account will outlast the one with the shiny fleet and no profit every single time.
Paradox #3: "I can't afford to take deposits" vs. "I can't afford NOT to take deposits"
The 98%:
Fear losing customers by asking for money upfront. They think deposits are "pushy" or "unprofessional."
The 2%:
Use deposits to fund operations and filter bad customers. They know that customers who won't pay a deposit are the same customers who'll find excuses not to pay the final bill.
The twist:
Deposits don't just improve cash flow—they improve client quality. The client who pays 50% upfront is invested in the project's success. The one who won't pay anything upfront is shopping for the cheapest option.
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Get personalized strategies to turn your money instincts into profit advantages.
Book Your Free Strategy CallStep 1: Identify Which Money Instinct Is Running (and Ruining) Your Business
Here's what I've discovered after working with thousands of business owners:
You have a dominant money instinct that's been programmed since childhood. It's not wrong—it's just programming designed for personal survival, not business success.
These instincts served you well as an individual. They helped you navigate financial challenges, avoid certain pitfalls, and develop money habits that felt safe. But the same instinct that protected you personally can destroy you professionally.
The paradox:
Your greatest strength becomes your biggest weakness. The same instinct that gave you the courage to start your business could now be limiting its growth.
Let me walk you through the five most common money instincts I see, and how they show up in business. As you read these, pay attention to which one makes you uncomfortable—that's usually your dominant pattern.
The Hoarder: "I Must Protect What I Have"
Where this comes from:
Maybe you grew up with financial uncertainty. Maybe your parents fought about money, or you watched a family business fail. You learned early that money disappears if you're not careful, so you developed an almost compulsive need to save and protect.
As an individual, this served you well. You probably have an emergency fund, little to no personal debt, and you sleep well at night knowing you can handle unexpected expenses.
But in business, this instinct backfires spectacularly. The Hoarder business owner won't invest in proven systems because "what if it doesn't work?" They'll refuse to hire the manager who could double their revenue because "what if I can't afford the salary next year?"
The 98% think:
"I can't invest because I might lose money."
The 2% know:
"I can't afford NOT to invest in what's working."
Example:
I worked with a contractor who wouldn't hire a $150K operations manager but spent $200K that year on random tools, software, and "improvements" that generated zero return. His hoarding instinct made him afraid of the big, smart investment while being comfortable with dozens of small, wasteful ones.
How to spot this in yourself:
You have money in the bank but you're doing everything yourself. You research purchases to death. You feel guilty spending money on anything that isn't absolutely necessary.
The Hunter: "More Opportunities = More Money"
Where this comes from:
Maybe you grew up in a household where money came in unpredictable bursts. Feast or famine. You learned that when opportunity knocked, you had to answer—because you never knew when the next one would come.
As an individual, this probably made you resourceful. You're good at spotting opportunities, you're not afraid to take risks, and you've probably had some big wins by being in the right place at the right time.
But in business, this instinct creates chaos. The Hunter business owner says yes to everything. They launch new products before finishing old ones. They chase every potential partnership, every new market, every shiny object that promises revenue.
The 98% believe:
"I need to pursue every opportunity."
The 2% focus:
"I need to dominate fewer, bigger opportunities."
Example:
I know a marketing agency owner who runs Facebook ads, does SEO, creates websites, offers social media management, writes copy, and just started a podcast production service. He's spread across 12 revenue streams and mediocre at all of them. Meanwhile, his competitor focuses only on Facebook ads and charges 3x more because he's known as THE Facebook ads guy.
The Gambler version:
Some Hunters become high-stakes risk-takers, investing in three different startups hoping for a home run, or putting $50K into an unproven business venture while neglecting their core operations. They're always one big bet away from either massive success or total failure.
How to spot this in yourself:
You have trouble saying no to potential clients. You're always starting new projects. You feel like you're leaving money on the table if you don't pursue every opportunity. You sometimes make large, risky investments hoping for big returns.
The Hot Shot: "My Worth = My Net Worth"
Where this comes from:
Maybe you grew up feeling like you had to prove yourself. Maybe you came from a background where financial success was the primary measure of value. You learned that how much you make determines how much respect you get.
As an individual, this probably made you ambitious and driven. You likely out-earned your peers, climbed corporate ladders faster, and pushed yourself to achieve financial milestones.
But in business, this instinct burns cash like gasoline. The Hot Shot business owner confuses revenue with profit, image with substance. They need the best of everything—not because it helps the business, but because it validates their success.
The 98% chase:
"Revenue is everything."
The 2% optimize:
"Profit per dollar of effort is everything."
Example:
I consulted with a real estate agent making $500K annually but taking home only $50K. He spent $450K on a fancy office, luxury car lease, expensive marketing, and first-class flights to "look successful." His competitor made $300K, worked from home, drove a paid-off truck, and kept $150K profit. Guess who felt more successful at year-end?
How to spot this in yourself:
You care a lot about how your business appears to others. You justify expensive purchases as "necessary for credibility." You feel uncomfortable with simple, unglamorous solutions.
The Hater: "Money Conversations Make Me Uncomfortable"
Where this comes from:
Maybe you grew up in a family where money was a source of stress, conflict, or shame. Maybe you learned that "good people" don't focus on money, or that wanting financial success makes you greedy or materialistic.
As an individual, this might have kept you humble and focused on relationships over wealth. You probably have strong friendships, you're trusted by others, and you don't let money define your self-worth.
But in business, this instinct kills profitability. The Hater business owner avoids pricing conversations, undercharges for services, and feels guilty about making profit. They'd rather work for less than risk seeming "money-focused" or "pushy."
The 98% worry:
"I don't want to be pushy about money."
The 2% understand:
"Clear money boundaries help everyone."
Example:
I worked with a brilliant consultant who charged $75/hour while her competitors charged $300/hour for similar work. She was booked solid but barely breaking even. When we raised her rates to $250/hour, she lost two clients but gained three new ones. Her income doubled, her stress halved, and she was finally able to deliver the quality of work her expertise deserved.
How to spot this in yourself:
You avoid talking about money with clients. You often quote prices that are "too good to pass up." You feel guilty when you make a good profit on a project.
The Hero: "I Have More, So I Must Help"
Where this comes from:
Maybe you were the responsible one in your family. Maybe you learned early that your worth came from helping others, solving problems, or being the person everyone could count on. You developed a strong sense of duty and responsibility.
As an individual, this probably made you reliable and generous. You're the friend people call in emergencies, you help family members when they're struggling, and you take pride in being able to support others.
But in business, this instinct creates unsustainable practices. The Hero business owner uses their business as a family ATM, offers discounts to anyone with a sob story, and can't say no to requests for help—even when those requests drain time and resources from paying customers.
The 98% exhaust themselves:
"I need to help everyone who asks."
The 2% sustain impact:
"I help more people when my business is strong."
Example:
I know a small business owner who constantly "lent" money from his business account to help family members, offered free services to nonprofits, and gave massive discounts to anyone who asked. His generous heart nearly bankrupted his business. When we set up a separate "generosity fund" from his profits, he could still help others without jeopardizing his operations.
How to spot this in yourself:
You have trouble saying no to requests for help. You often blend business and personal expenses. You feel selfish focusing on profit when others are struggling.
Think Like a Champion:
In golf, you hit down to make the ball go up. In football, you step back to throw forward. In business, your natural instinct needs boundaries to become your superpower.
Which Money Instinct Do You Recognize?
Let's discuss your specific situation
Step 2: Discover Where Your Instinct Is Bleeding Money
Now that you understand your dominant money instinct, it's time to see its impact on your business.
Here's what most business owners don't realize:
What feels like investing is actually bleeding. Most "business investments" have zero ROI. Your money instinct doesn't just influence big decisions—it shapes hundreds of small spending choices that add up to massive profit leaks.
The Hoarder wastes money differently than the Hunter, but they both waste money.
The Business Reality Check (aka "The Heartbeat Audit")
Here's a simple but brutal exercise that reveals where your instinct has been sabotaging your profitability:
Grab 6 months of business bank statements and credit card statements.
Pour yourself a drink (you'll need it).
For each expense, ask yourself one simple question:
"Would I spend this money again in a heartbeat?"
If the answer is an immediate, enthusiastic "yes"—circle it. If there's any hesitation, any "well, maybe" or "it seemed like a good idea at the time"—slash it.
Don't judge yourself. Don't make excuses. Just sort.
What you'll discover:
Most business owners are shocked to see how much falls into the "slash" category. I regularly see business owners find $2,000-$5,000 per month in wasted spending they didn't even realize was happening.
Things to Observe as You Do The Heartbeat Audit:
There are predictable patterns of financial self-sabotage for each Money Instinct:
Hoarders
Miss growth opportunities and under-invest in proven systems. They'll spend $500/month on "safe" software subscriptions but won't invest $5,000 in a marketing campaign that would generate $50,000 next quarter. They death-spiral into a thousand small, safe expenses instead of making fewer, bigger, profitable investments.
Hot Shots
Overspend on business image and entertainment and confuse revenue with profit. They lease the luxury car "for client meetings," rent the prestigious office "for credibility," buy the expensive equipment "because that's what professionals use." They optimize looking successful instead of being profitable.
Hunters
Obsess over finding THE opportunity that will change everything. They're constantly searching for the one deal, course, mentor, or investment that will unlock massive revenue – while making payments on last quarter's unused 'game-changer.' They confuse hunting for the magic bullet with building sustainable success.
Haters
Avoid necessary financial conversations and undercharge for their services. They waste money in hidden ways—buying cheaper tools that don't work, avoiding necessary investments in systems, and spending more time (which costs money) to avoid spending money upfront.
Heroes
Use their business as a family emergency fund and can't say no to requests for help. They're the ones with unexplained personal charges on business cards, "loans" to family members that never get repaid, and deeply discounted services for anyone with a compelling story.
Military Strategy:
Every great general knows when to advance and when to retreat. Your heartbeat audit reveals which expenses are advancing your mission and which are bleeding you dry.
Step 3: Stop Automated Bleed
Fair warning:
If you want to stay comfortable with the 98%, skip this section, dismiss it as unrealistic or silly. Your choice.
The 2%
Implement this step and see immediate changes in their business. Not because it changed who they are, but because they broke a paradox that was sabotaging them.
The paradox:
Constraints around business spending creates ROI.
It's counterintuitive because most business owners think: More opportunity = more revenue; Spending on opportunities = investing in success; Restricting choices = limiting potential
In this paradox we discover that what seems like investing is actually bleeding. Most "business investments" have zero ROI.
Break a Paradox - What the 2% Do NOW:
First, cut off digital fingers.
Request new debit and credit cards from your bank today. Yes, really.
When your old cards stop working, you'll be amazed how quickly companies come knocking to demand payment updates. This forces every expense to become a conscious decision instead of an automatic withdrawal (passive waste).
Examples:
Software subscriptions you forgot existed.
That $297/month marketing tool you tried for two weeks last year? Still auto-charging. The project management software from when you had 12 employees? You're down to three now, still paying for 12.
Domain names for dead ideas.
Seven domains at $15/year for that brilliant 2019 business idea you never launched. Still renewing while you're building something completely different.
Membership sites you outgrew.
The $2,000/year mastermind that was perfect at $100K revenue? You're at $500K now, but it keeps auto-renewing.
Insurance on equipment you sold.
Specialized equipment insurance for machinery you sold last quarter? Still deducting monthly. Key-person life insurance on the partner who left? Still paying.
Lead generation tools you replaced.
Three different CRMs because you "upgraded" twice but never cancelled the old ones. Three email platforms running simultaneously on autopilot.
Second, force conscious decisions.
When companies contact you for payment updates, you choose:
Keep this expense or cancel it?
- Only renew the expenses you circled in your heartbeat audit.
- Everything you slashed gets to stay canceled.
Third, channel your instinct profitably.
Take that "found money" (the expenses you choose not to renew) and direct it to a bank account named Profit. These are your first money-in-the-bank, profit dollars.
Why to Profit Account?
99.95% of business owners have theoretical profit instead of actual profit in the bank.
Theoretical profit manifests in dangerous forms:
- profit on paper ("we marked it up 20%")
- profit in theory ("I pay my employee $30/hr, but bill him out at $100/hr")
- profit as wishful thinking ("when that client pays their invoice")
When all your business money sits in one "bucket" (your operating account), your business spending will naturally expand to consume whatever balance is available.
All available money will find a way to get spent on the next equipment purchase, hiring decision, or "investment in growth."
You know this because you've lived it. Your business consumes your profit—not because you're undisciplined, but because it's human nature.
Profit Account separation breaks that cycle by making profit real, tangible, and protected!
You'll master the complete Profit Separation system in Profit Lab, but transformation begins with this first step.
Whether you found $30 or $30,000, move that money into a separate Profit Account today. It's not about the amount—it's about establishing the discipline of profit keeping.
The 2% see it as a small hinge that opens big doors.
Your Profit Account + Your Instinct
No matter your instinct, the Profit Account serves the same purpose: it protects your profit from being accidentally consumed by your business. The difference is how you think about it:
Hoarders:
Your business security fund
Hunters:
Your opportunity capital
Hot Shots:
Your professional image budget
Haters:
Your automated profit protection
Heroes:
Your strength-based generosity fund
What Happens Next
This isn't about changing who you are. It's about understanding that business money works differently than personal money, and your personal money instincts need business-appropriate boundaries.
When you complete these three steps, you'll have:
Immediate clarity
on where your money actually goes—and why
More cash flow
from eliminated waste and redirected spending
Confidence
in your financial decisions because they align with your psychology
A sustainable system
that works with your instincts, not against them
But here's the real transformation:
You'll stop feeling like a fraud who just can't figure out the money side of business.
The Thing Behind the Thing
Most entrepreneurs think they need to make more money to solve their problems. What they actually need is to keep more of what they're already making.
The truth is, you're not broken. Your instincts aren't wrong. You just need business-appropriate boundaries for business-scale decisions.
The 2% understand this.
They've learned to channel their money psychology productively instead of fighting it.
The 98%
Keep chasing revenue while their profit bleeds out through a thousand tiny cuts.
Your next step:
Master the complete system that turns your money instinct into a profit advantage instead of a profit killer.
Leanne's Two-Number Method transformed my business cash flow! It is now understandable, easy to plan, track, and make financial decisions for my business. As a new business owner, I had growth outpacing my financial-know-how. I needed help. Coaching with Leanne was incredibly helpful.
Jamie Magdic
Founder, Side by Side Nutrition Clinic
Ready to Put This Into Action?
If you're ready to stop the profit bleed and start keeping more of what you make, I can help.
Book a Free 45-Minute Profit Strategy Call
During our call, I'll help you get clear, capable, and confident about your next steps.
CLEAR
on what you really want
- • Fast-forward one year and define exactly what financial success looks like
- • Identify what's been holding you back from the profit you deserve
- • Understand why this is the right time to fix your finances
CAPABLE
of making the right decision
- • Share the exact 3-step method I use to help business owners break the profit paradox
- • See how to stop the cycle of impressive sales but empty bank accounts
- • Get a personalized roadmap for your specific situation
CONFIDENT
about your next steps
- • Know exactly what needs to happen to transform your business finances
- • Understand if my proven system is the right fit for your goals
- • Leave with complete clarity on how to move forward
No sales pitch. No judgment.
Just honest conversation about what it takes to build a profitable business.