How to Stop Losing Money When You’re a Small Business Owner, Entrepreneur, or Startup

Hey guys! It’s Justin Goodbread with Financially
Simple. So I wanna give our business owners a piece of advice. I’m holding two cups. One
has water in it. One does not. My cool Heritage Investor’s tumbler and a Dixie Cup. So I want
to illustrate one of the misconceptions that we as business owners often forget. I’m one,
and I have this problem regularly. What is that? We’re out there working. We’re pouring
ourselves into our business, and we’re making money. But we forget that our business is
not like this Dixie Cup. It’s not gonna hold all of the money that we make. So what happens?
I wanna show you this. Life happens. We have taxes that we deal with. We have inflation.
We have insurance. We have employees. The list goes on and on. So now I just gave you
a little example of a couple of things in our businesses that leak out all of our hard-earned
time and energy, and if we get out, and we try to work again, everything we earned just
falls straight throw our business and goes to other folks. What am I getting at? There
are individuals, professional individuals – CPAs, CFPs, and tax attorneys – who work
to plug up the holes in your business. One hole that many people forget about is taxes.
Spend a little bit of time, an hour or two 2 or 3 times a year with a tax attorney or
with a CPA or the CFP or the whole team together, and work in your business. You’re not gonna
lose quite as much money because they’re there to help plug up the erosion of our taxes.
The second thing that most business owners forget about is there’s a liability side to
the General Ledger. Most people deal with assets. They think that financial advisors,
all of them, just manage assets. Wealth managers, someone like myself – a true CERTIFIED FINANCIAL
PLANNER™, a business owner who operates in that capacity – realizes that not only
do you have to worry about the asset side of the ledger, you also have to deal with
the liability side of the ledger. Many times in business, we forget that we can renegotiate
loans. We can change the interest rates. We can change the terms. We can change the shear
amount of interest that we’re losing from our business. What am I giving this silly
example for? As a business owner, we must stop. We can work as hard as we want to and
go drive more and more revenue, but unless we stop and plug the holes of our business,
we’re not gonna build wealth. Only whenever you’re able to plug the holes of the business,
like i’m doing in this silly example, can your business retain the amount of money that
you’re working and slaving away for in your life. So guys, this is Justin Goodbread with
Financially Simple. Let’s remember to make your life, at least, financially simple.

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