🚨 Red Velvet Rope Trap Alert 🚨
One of my mentors, Michael Port, introduced the concept of a Red Velvet Rope Policy in his book Book Yourself Solid. The idea is simple yet powerful: business owners should set up a red velvet rope to keep frustrating, hard-to-work-with clients on the other side. This ensures you only work with people who uplift and bring joy to your business.
However, I’ve noticed a troubling trend where many business owners put themselves on the other side of the rope! This Red Velvet Rope Trap prevents them from accessing strategies that could elevate their businesses to new heights.
💡 Here are six ways business owners often hold themselves back:
1. Tax Planning
Trap: “A tax team isn’t for me yet.”
📈 Solution: If you’re making $200k or more per year, it’s time to switch to a tax team. You don’t need to wait until you have a higher income—a tax team will save you far more than they will cost. Don’t assume it’s only for the ultra-wealthy.
2. Student Loans
Trap: “Repayment strategies like the SAVE Plan aren’t for me; that’s for poor people.”
🎓 Solution: Utilize efficient repayment plans like the SAVE Plan to reduce your student debt burden. These programs can save you thousands in interest, even if you’re a high-income earner.
3. Whole Life Insurance
Trap: “That’s for the ultra-wealthy.”
🛡️ Solution: Whole life insurance can benefit almost anyone at some level in their portfolio. It protects, provides liquidity, and enhances other assets in the final act of life.
4. Alternative Investments
Trap: “I’m not qualified for accredited investing.”
📊 Solution: People often believe that alternative investments like real estate, private equity, private debt, and commodities are either only available if you find them yourself or not available at all. This is simply not true. They can often reduce volatility, increase diversification, and provide cash flow.
Important Note: Please ensure you speak with an authorized professional before moving forward. If you need someone, I can connect you with our team.
5. Mergers & Acquisitions
Trap: “Only big corporations like Marriott can do that.”
🏢 Solution: Through our Exit Ready program, we’ve seen business owners just like you take steps to acquire 1, then 2, then 3 locations and businesses, helping them start acting like a Marriott. This strategy unlocks a whole new level of impact.
6. Generational Wealth
Trap: “That’s for billionaires.”
💰 Solution: People often don’t believe they can create multi-generational wealth. First, they think they haven’t made enough. Second, they don’t want their heirs to become trust fund brats. But neither belief has to be the case.
Generational wealth is available to business owners, and you don’t have to create brats. Systems and processes can be built to achieve both. Here’s how:
- Define Principles & Values: Create a family governance structure that clearly articulates your legacy.
- Build a Trust: Establish a trust that can hold your assets while setting up guidelines for how those assets can be used.
- Educate Heirs: Prepare the next generation to responsibly manage and grow the family wealth.
Breaking Down the Red Velvet Rope Trap
🚀 Don’t disqualify yourself from opportunities right in front of you! Here are some practical steps to break down the Red Velvet Rope Trap:
- Identify Limiting Beliefs: Recognize the stories you tell yourself about what you can’t achieve.
- Explore Opportunities: Speak with a trusted Wealth Teams to identify strategies that fit your needs.
- Invest in Yourself: Whether it’s a tax team, investment advisor, or personal development, prioritize growth.
🔥 Don’t let the Red Velvet Rope Trap prevent you from reaching your fullest potential. Step into the party and see what’s available!