How often do we discuss what seem like obvious business strategies, but our partner sees things in a completely different way?

Let's take a typical business conflict. The Case: Your company’s sales growth has slowed, and the cost of goods has risen. The lower margins are squeezing profits out of your bottom line. What do you do?

Partner 1 says: Cut overhead! We'll ride out the storm and still make money.

Partner 2 says: Increase advertising! If we increase sales, not only can we make money, we can also do even better than last year!

Each partner is totally convinced their strategy is correct, while the other believes it is a recipe for disaster. They are so passionately entrenched in their positions that they are doubting the business acumen of the other.

While I'll leave it to the other business strategists on this site to answer the strategic question (Hint: It's not an absolute one way or the other), I want to dive deeper into why the partners are now fully invested in this conflict. It's because they each have different Money Beliefs.

What are Money Beliefs?

Money Beliefs are ideas, thoughts and opinions that impact our money behavior. They come from childhood experiences, ethnicity, personality, culture, religion and social environment, among other influences. We understand the world through these beliefs. They are our truths. We believe in them so strongly that we think it's not only our truth, but the objective truth, and the correct way to react to a financial situation. When our Money Beliefs are challenged it becomes very adversarial because we feel it's not our strategy that is being questioned but rather our core beliefs.

In our case, Partner 1 was raised in a family with two employed parents. When times got tough, they buckled down and managed to live a nice life. Their mantra was, "A penny saved is a penny earned" and "Save before you spend.” Partner 1 now has a “savings and security” Money Belief.

Partner 2 was raised in an entrepreneurial home. They lived a very comfortable lifestyle, and he never felt denied. His dad would always say, "Money makes money.” Partner 2 now has a “high risk, high reward” Money Belief.

How would these two partners move forward?

By understanding that their immediate reaction to their financial situation is being guided by their Money Beliefs and that neither is necessarily the correct decision. This will give them the ability to communicate and listen to what the other is saying. To think and question in a non-judgemental fashion. And then be able to jointly make a financial decision that both partners believe would create the best outcome for their business.