This episode is brought to you by my new program The Profit Rx. If you've been following along here on the podcast, you know that the doors opened to the Profit Rx officially, a couple of weeks ago. The Profit Rx is your prescription to help you build a healthy and wealthy business. Help you avoid that financial anxiety. pay yourself more. tackle your taxes. All of these good things. For all of the information you can go to theprofitrx.com. You can join us on our twice weekly Co-working calls, Finance Fridays, get all of the good stuff, so go check it out.
In today's episode. I am going to be explaining to you all about the profit and loss statement, so what a P&L is, Um, how they work and in order to do that, I'm actually going to be walking you through an excerpt of our Profit Rx textbook.
So a P&L, or a profit and loss is also often referred to as an income statement. That's like the more official term for most accountants, but I like P&L, because it's...
In this episode I am going to tell you more about The Profit Rx and why you should join, but I'm also sharing with you why I've made the change.
I had previous programs. One of my programs was called Fundamentals. It was a monthly membership. I also had Unf*ck Your Biz, the course which has now been retired. Both of these programs have been retired. Fundamentals, Fundamentals, Um, I initially created. It was supposed to be a program more for newer business owners. It didn't really turn out that way, like my goal was to create Fundamentals, a monthly program that then prepared people to join Unf*ck Your Biz. But what ended up happening was that I drastically changed the Fundamentals content last year I would say during COVID but that's still a thing at the time of recording this podcast.
But once we went on lockdown in the wedding industry in particular, the events industry was dealing with all of the Um, COVID-related contract cancellations, postponements, refunds, and all of that,...
On today's episode of the podcast we discuss the building blocks to building a profitable business.
Sign up for "Turn Your Business Into a Wealth Generating Machine in 2022" my free training on November 15 where we'll focus on making three key decisions to streamline your business finances.
One of our building blocks is the layers of protection (more on this in episode 197). All of these legalities, like insurance, contracts, and business entities, to protect ourselves and our money.
The next block is tax systems, these are in place to keep us up-to-date with taxes and the IRS off our backs. You don't want to deal with audits, back taxes, or any of that. Tax systems include book keeping and having the correct business entity.
Another block is good financial systems. These are here to serve the decisions that impact our personal finances and determine how much and how frequently we pay ourselves. Good financial systems help you to reach target profit...
On today's episode of the podcast I talk about hiring a team and why it's never too early to think about hiring, even if you aren't ready.
I've previously spoken about hiring a team, for example when I interviewed Ashley Ebert on episode 178 of the podcast. While it may be too early to build a team, it is never too early to think and plan for that day. The first question is what that team will look like. It's not several full-time employees, it can be just one contractor, and those contractors can be broken down into two types of contractors - internal and external.
An internal contractor is someone I'm working with on a regular basis and I pay them monthly for an indefinite period of time. I have weekly meetings with them and treat them as a member of my team. I also have external contractors, which are contractors that I'm hiring on a project-basis such as redoing your website or setting up your Pinterest account. When we talk about building a team, we're talking...
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.
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