On today's episode of the podcast I talk about how legalities can help protect your bank account.
I always talk about these things in a vacuum, for example how an LLC helps protect your personal assets, I chat about how insurance can help defend you in the case of a lawsuit, and I've noticed these are the topics people are not always as interested in as tax topics, I think because our fear of the IRS often seems to outweigh our fear of legal repercussions. I'd love to hear your thoughts on this in my Facebook group.
Beyond contract templates and starting an LLC, why should you care? The reason is because it all comes down to our finances. Assume you have a client problem that ends up in court, aside from being anxiety producing, we could have a judgement against us. A lot of our legal protections are to give us financial security. This is where our legal layers of protection come in, including liability layers and intellectual property layers.
Today on the podcast I'm diving into why you should treat your business like an asset.
According to Investopedia, an asset is anything of value or a resource of value that can be converted into cash. Essentially, it's anything that you can sell or something you can hold on to build wealth.
Treating your business like an asset is like raising a child. You need to put in a certain amount of time nurturing the business, just like you would a child. When your business is an infant, it needs constant care and attention. This is usually when you are running the business solely on your own. As the business grows, we often bring in more people to help us nurture it, the same way we bring in teachers and caretakers for our children. It takes a village. The end goal is to build a business that can leave the nest and flourish without us. And sure the business may need to call home to ask you to schedule their dentist appointment or drop some wisdom and you can spoil your...
Today on the podcast I'm breaking down our relationships with debt and discussing the question, "is debt really that bad?"
When it comes to relationships with debt, people tend to fall in one of three camps.
Debt is evil, terrible, and should never be used
Debt should be avoided (most the time), but makes sense in certain circumstances)
Debt is a tool! Use it to your advantage.
Camp #1 that feels debt is evil, terrible and should never be sued is lead by the Dave Ramseys of the world, focusing on his framework of baby steps to save for emergency funds, focusing on the snowball method of paying off debt (except your house), saving 3-6 months expenses in a full emergency fund, then focusing on saving 15% of household income for your retirement, then save for your child(ren)'s college, then pay off your home early and start building wealth. I focus on the first four since children and a house are not the realities for everyone however I struggle with step...
On this episode of the podcast I share how I increased my credit score by 100 points in 6-8 months.
I think it's important that we as business owners get more comfortable sharing more about our personal finances. Everything from profit to saving for taxes to how much we pay ourselves and how this all relates to our personal finances like our credit scores, our savings, our emergency fund, our retirement savings, our loan repayments, our credit cards, etc. They're very taboo topics so I've found the best way to discuss them is to start sharing.
To give you my background with credit, my journey started my freshman year of college when someone offered me a credit card. I signed up thinking there were no consequences. Luckily I only used it to buy my books, so about $1,000. But I didn't have $1,000 to pay it back so my credit score immediately tanked and stayed there for about five years. When I got to law school I had a car loan my mom was co-signed on and I think I made...
Recently I was listening to Rachel Rodgers' audiobook, "We Should All Be Millionaires: A Woman's Guide to Earning More, Building Wealth, and Gaining Economic Power" and was inspired to do her $10k in 10 days challenge. This peaked my interested because I am working on a goal of $30,000 months in my business.
I encourage you to look at your financial goals - income, retirement, vacations, etc. and what does that look like per day, week, month, etc. What may seem like a lot of money per month may not be as much as you think once you subtract expenses, taxes and savings.
To break down my $10k in 10 Days Challenge, I ended with $9,741. Here's how I did it:
My first few offers were not a hit which was scary at first. Then I got the idea for a new offer: LLC in a day. An offer is anything that you are selling and I decided to sell a 1:1 session with me to get you completely set up with your LLC. I put that out there via my email list. It's $1,000 and I booked 2.
On this episode of the podcast I announce the return of my Profit Reports and what they'll look like moving forward.
I'm launching a private podcast! This will be a second podcast exclusively for members of my free Facebook group, Braden's Besties. In the group I host a Friday Facebook Live where I answer questions I've collected throughout the week. I'll be turning this Q&A into a private podcast that will be accessible only to members of my Facebook group, so join now by clicking here or visiting www.bradensbesties.com
If you're new to the podcast in the last year you may not be familiar with my profit reports. These reports came to be in 2019 when I was reading the book Profit First by Mike Michalowicz where he walked readers through an exercise to determine the profitability of your business. I was operating at 30-40% profit at the time which was very low and I set out on a journey to operate at 70% profit. I started sharing my income and expenses with my...
On today's episode of the podcast I share part five of the Contract Series where I discuss the reasons you need more than one contract in your business.
A lot of us tend to only think about our Client Service Agreement when working on contracts for our business but there are other types of contracts you may need for your business so I'm breaking them down on today's episode. For downloadable contract templates, click here.
1. Client Service Agreement. This is the common, most important one, we sign with our clients. Typically, we need more than one Client Service Agreement. one for each service we offer and one for each package tier. I recommend having one template for each inside your CRM like Honeybook or Dubsado.
2. Contractor Agreement. This is what you will use if you're hiring a contractor to help with your business like a Virtual Assistant. If it's something project-based that the VA offers other people, ideally the VA should send you a Client Service...
Today's episode is part four of the Contract Series where I share what to do if a client is planning to sue you.
Client issues are more common than you think, and client issues do not mean you're not good at what you do. Sometimes we fuck up, sometimes we just have messy clients. There will always be client issues when it comes to owning a business.
Back on Episode 112, I spoke with DJ Kevin Dennis about his experience with the legal system with a lawsuit from a couple about Kevin's contract and COVID related cancellation refund. Similarly, last year on Judge Judy a client sued a wedding planner for a refund due to a COVID cancelation/postponement. The planner said the retainer was non-refundable and have already substantially performed under the contract.
I give you examples not to scare you but to show you that even for small businesses with contracts under $5,000 can get into legal disputes.
If it looks like you're heading down this road with a...
Today's episode is part three of the Contact Series. If you missed the last two weeks, go back and check out the first two episodes in the series
Five Ways Small Businesses Typically Taking Payments:
1. Hourly Payment - Most common along virtual assistants, coaches, consultants. If you have a no cancelation policy, you are better off charging a package price so you are still compensated for any hours you miss due to the client's no-show
2. Monthly - Conover with coaches, VAs, and even wedding planners. Monthly payments can be on a schedule, for example for a wedding planner let's say it's $12,000 you can say it's $1,000 a month that way if there is a cancelation you've still been paid for the months of work you did leading up to the event.
3. Flat fee per project - Common for graphic designers, web designers, creators who sell physical or digital goods. When you offer a flat fee per project you can split the payments into all the payment up-front, half up-front...