Small Business Finance 101 | Refusing to Look at Your Numbers Won’t Help You

Audio Transcription

Get ready to enter the thrive time, show 3 2, 1, alright, thrive nation, welcome back to the business coach thrivetime show on your podcast download and this next podcast addict for a lot of people. This particular subject is one that a lot of people struggle with and so I come at. You today do the desire to coach you up and not talk down to you so I’m going to try to come in there and approached the subject lightly and be nice, but I also want to let you know that if you don’t change as a result of this than this is a waste of time. Okay, so small business finance, 101 you’ve got to look at your numbers. If you don’t look at your numbers that won’t help. Refusing to look at your numbers on a weekly basis won’t help so dave ramsey, the financial guru, the new york times bestselling author. He says a budget is telling your money where to go instead of wondering where it went. Cnn is saying that the majority of americans are wondering where their money went because of cording to the stress test test that the federal reserve did on the american average american person out there they found the average american cannot afford a $500 emergency 63% of the american population. I had isn’t, it really doesn’t have 500 says 8 out of 10. Small businesses fail, so the business world is no better.

So here are the steps to being successful with your business coach account and give you the steps or just six steps, I’m going to walk you through them and I want to get west carter’s. Take on this I want to get dr. Z the optometrist take on this west carters at top attorney. He works a lot of our clients. If you listen to spot cast, you need an attorney. He can help you out I’ll ride with you as a business owner. So here, dr. Z onto multiple companies, ryan on the successful company, tip top, k-9 and wes is a top-level attorney. Once. You got a list out all of your expenses for the past 3 months. If you haven’t done this ever you got to just list them all out, you type them all into a spreadsheet, don’t overthink it all your expenses for the past, fremont sup sup to you must list out all your income for the past 3 months are probably 10 hours of someone’s time right now. Okay, that’s that’s what that’s what I’m hearing all at once in quickbooks will enter it into quickbooks garbage in garbage out, so you got to make sure your numbers are updated and I’ve yet to work with a client whose numbers were updated when we first started working with them for a customer to profit per and again I’ve never worked the customer at the point where we begin helping them that they knew that, because it’s hard to figure out how much of it is my fixed costs. How much of it is my variable costs different things and these are average since so then you got to know your break-even point and that’s that’s again takes a long time. How many gills do I need to break even and so and then send instant pot? We’re almost done here at 5. You got to set up an automatic and be upset.

Yes, save an automatic amount of money. You have to save an automated amount of a percentage of your gross income. To save an automatic amount, an automatic percentage does he will take 3% of your gross income in it. Just comes out. Why does automating your savings work? If you don’t have it to spend it, you don’t think about it. It’s an automated means. You take it out before you get to the hot little hands on it and a lot of people. How do you say this without being mean to self control, and so, if they, if they get it, they’re going to spend it in that a lot of people would include me I mean so what I do is i, don’t want to think about it. So I just set up boundaries and I set up a budget. There’s a set amount of money that goes into a set of counter. Don’t think about it! That’s how that works step! Six. Did you got to create a routine for looking over your accounting aggressively every week now, when you get big enough z, you hire people like controllers, an accountant and bookkeeper who not work for you and they look at the numbers of what exactly that’s in that’s in the steps in that direction, and so you know when you start off, you know you don’t go well. I guess I got to go, get a cpa firm to get to know you. If you can get quickbooks, you can start doing it on your own, but then, as you grow, then you want to add things to it and the other thing to is clay’s knowing what you’re good at and what you’re not for me, I needed some accounting help early on I did need business coach marketing help, but I need an business coach accounting helping so I had an account early on that I made a deal which is actually a patient of mine and for a small fee per month has a small business. He did it for me and then, as I grew, his fee grew and then after 20 years, if I’m retired and my guy for 20 years, but would you want to do if you don’t have that guy yet is you need to set up a specific set time in a set place in a set workstation make sure you have all the things you need in place of the highlighters are computers whatever you need pins notepads would have it already, so you can sit down every week and knock out your accounting shirts I’m, going to get into the brass tacks executing this with ryan torain you and your wife rachel in your business, who looks at your wife or is it you typically get down on it, as relates to accounting, the kitchen bar the kitchen bar, that’s your spot, and how long does it take you to take you hours or minutes, or how long does it take you to do a lot of people look at tip, top, k-9 now, and they see the success your having many people are reaching out to you guys to get a tip top k-9 location and in but they might go in, the schedule takes him.

How long does it take to get to do? We run numbers on thursdays and mondays just to make sure we’re looking at everything, so we keeping tabs on everything 15 minutes it’s running, so you just have to keep it there but see if somebody’s accounting is all screwed up, I mean it might take them and I’m. Just saying this month the averages I’ve worked, the last marshall morris. What are business? Coaches I asked all her business coach. This morning, I’ve asked the team and it seems as though the average client it’s going to take them over a dozen hours to get their number straight. If they’ve never done this I mean it’s like a is that clean out the garage z I mean this is I could be a big task, a big task, but something you have to tackle. You have to do until hopefully set it up correctly. Up-front hoping you’re tackling this up front, but if not, then you’ve got to go to bite the bullet and get it done, and now it wes is an attorney. How often do you see a situation where one you know somebody says forma will trust over here little llc over here, I’m kind of based in the caymans. If you know what I mean wasn’t I want to see, if you can help me, you know kinda what I would call expatriate my my funding of it ever get some squirrels that reach out creative advice on not paying taxes and my buddy did it and he hasn’t gone to jail. Yet he lives in latvia. My other buddy lives in what city has the cynic I only point out to that, if you’re not staying on top of your finances, you have any idea. If your partners are stealing from you or your employees are embezzling from you, so people could be robbing you blind. You would even so again if you feel like you’re, stuck with your accounting, encourage you to reach out to your business coach, but not looking at see the principal I want to hammer him. You not looking at your numbers does not help it go away.

You know, I tried that the bury my head in the sand. You know part of it and I said to myself:you don’t it’ll all be okay, cuz, tomorrow’s a brand new day and tonight, I’ll have a good night’s rest and it’s all going to be fine and daffodils and cotton candy. And it’s supposed to be okay, but you know what ignoring it does not make the problem go away and you have to be aggressive and you have to just act like you had me heads on and just have to let you know what I’m going to get her done, and it’s going to be what it’s going to be and get it lined up and get it correct and the more you put it off the uglier it gets. Who was in the show with a boom, but I kind of, took a reminder if you’re, if you’re, absolutely in a bad spot with your business coach accounting, don’t refuse to look at it. You got to be proactive. Have somebody that helps your hood? Cpas is a great sponsor of the show if they’re not a good, fit, find somebody to help you in at least reach out to your coach. Tell him you need some help and they’re going to help you go through the steps needed. We have work space. We have a good work space. We have to go fly in from other cities and fly to tulsa to take advantage of our work space. This is actually happened. Numerous times and symbol, take dozens of hours and just get financially in a good spot and just knowing helps I know, and you know what I’m going to tell you. This is his record I heard from lou holtz of famous football coach, and he says when you find yourself in a whole step, one to stop digging and you’re slinging business coach mud. You know you just keep getting the hole deeper. You know so stop digging understand that you’re in a hole-and you know what we’re here to help you get out of it. 3 2 1