The 3 Phases of Starting Up Your Small Business with Mark J Kohler | 2019


Welcome everybody to this week’s podcast broadcast You Tube live Facebook live I’m here with you, please don’t go anywhere for a minute Let me tell you what this this broadcast is all about the three phases or the first three steps of starting your business Now let me know it sounds sexy. You’re cool But you’ve got to hear this because even if you already own a business now Are you thinking of expanding into new product line and new service? These are gonna be the same three steps you use every time you launch a new business So now I want to get into all the technical stuff. Are you down at the bank? Are you setting up an LLC or a? Corpse under each one. I think you’re gonna love it. Now. I’m also going to give away two books today I’m gonna give away the tax and legal playbook and also my new eight steps to grow and start a business both free This is 99 bucks on Amazon 20 bucks. Whatever. I’m Sun got prime ghetto You can get these books and check them out on Amazon on my website Mark J Kohler com, but today is about you so, please don’t go anywhere and hear this out hear me out because again, I had talked to so many new clients every week around the country speaking of workshops about starting their new business and A lot of people think it’s here Is there what do I do? Where do I set it up and all that good stuff banking everything. We’re gonna hit it So let’s start with number one and I’m in here tight with you and then we’re gonna get to the whiteboard here in about two To three minutes and then if you have a question in a YouTube or Facebook just type it down below My team’s gonna throw those out as we get rolling now Step one step one is concept design and your product and service development again, even if you already own a business now Are we going into a new food product a new service? a new if I’m in landscaping am I gonna start fertilizing if I’m in a Food service. Am I gonna start serving a certain type of drink? What am I gonna do with a new product a new service and I’m gonna go online and selling then you do Multi-level marketing maybe we’re gonna go into real estate and do a rehab. It’s all the same practice now as you’re developing this concept the question I ask so many clients on the phone literally even Millionaires I ask what’s your what what is your what why are you doing this business? Are you really passionate about it? Cuz Nolan’s gonna be sitting behind you pushing a hot poker to get you up every morning Are you gonna lay awake every night thinking about how can I make money at this? am I gonna be passionate about what I’m doing because it takes Self-starting it takes motivation. It takes this inner drive that you’re gonna love doing this And so what I have clients call me up ago work I’m ready to sit on my LLC or do I set up an S corp or do I said I go what you up? Why are you doing this? Well, I want to make more money. Okay, will you really like what you’re doing here? Why are you passionate about it? So number one. I always want to talk about that now That was our intimate close up face-to-face. Now, I’m gonna take this back and we’re gonna hit the whiteboard. This is important We’re going to do it. So number one on this concept design is finding your what so what your what is your what and So I’m going to just put concept design concept design and Number one is what is your I’m just gonna put what we’re gonna save time here. I want to get rockin here So what is actually I’m gonna spell it out. What is your what? Number two, once you find out. Yeah, I’ve had clients are like mark, I love fly fishing I’m gonna do the five ship fly fishing. I’m gonna I love cars I’m gonna collect and restore and sell cars whatever whatever you love doing Let’s make money on it if it’s legal so number two number one number two in this whole process and it’s so so important and I want to Make sense of this before you even think of a business plan is I want you to think of who’s your competition? Who’s your competition? I’ve had so many clients that say mark. I’m gonna do this I’m like, did you realize ten other people have websites doing that? What’s what’s going on? You know, so I want to always say soon as you figure out what you’re gonna go into Find your competition someone I guarantee it is unless you’re a complete genius with a patentable idea Someone is already selling what you’re doing. Now. They may be doing a crappy job at it. They may have a crappy website I don’t know But find your competition so that you can improve on it find out what they’re charging and start doing some analysis and say man If they’re charging that or they really make them any money because I got to compete against that how am I going to differentiate myself? So find your competition, that’s where this is Just Faye’s I mean and again I have so many people call me up and we can do it today you want to talk about? LLC’s in escrow. Should I set up in Nevada? How do I pay myself? How do I pay my kids? How do I write off my car? I’ll talk about it. But first of all, I want to know what is your concept? What’s your what why are you doing this and what’s your competition? Then number three I want you to do a rough Business plan a rough business plan of just is this even gonna work? Do you know I have people that have come to me and said mark my business isn’t doing well And I say well two years ago when you started this did you do a business plan? They’re like no and we start to go through the numbers and just do some basic business plans and they’re like, oh my gosh I could have saved three years of my life Sometimes the best result of a business plan is to tell you it’s a bad idea That’s sometimes the best thing it’s not always what you know, I’m not gonna make millions. It’s like should I even do this? Don’t be doing a business plan to justify your venture do a business plan to poke holes in it and Figure out is it really worth it now on this note This is where my little eight steps workbook comes in free. Now if you share this video with anybody else Today whether you’re on YouTube or Facebook Rosalie gets a ping of all the people that share it she’s gonna do a drawing first thing in the morning I’ll sign this and Send it right out to you free of charge in the morning Now if you want to get this comes with a business plan a marketing Plan a strap plan in word so you can modify it But if you’re just looking for a facing business plan get over to sba.gov. They’ve got some wonderful resources, I think sba.gov Let’s write it up right in here SB A.gov does a great job helping people design their basic business plan I think I do a better job, but they’re not too bad now Once you do your rough business plan if this idea is making sense then you’re gonna go with a legit business plan and I want you to just Seriously buckle down put together a 10 to 20 business plan page business plan and figure out how you’re gonna market this really tear apart Your competition do your financial analysis your budgets and the whole nine yards Because you’re gonna move forward but the rough one can be done in a weekend. It can be done in a weekend All right Now my friends that is step one now again If you’ve got a question on any basic business strategy or tax write-off type it down below I’m here for you, even though tax season is over. We got the whole year here people. Let’s get to work on this This is good stuff now step two and this is so so important I’d like to talk about with clients is The financials if you’re gonna start a business, we’ve got to start with the numbers And the first thing I want to ask you is nail down your startup cost What does my startup cost gonna be to get this off the ground? Now for some of you that might be selling on the web It could be really affordable and simple to just get your product up and going website design a shopping cart PayPal configuration You’re off to the races with the merchant account But other times it can take a lot of money to get that off the ground So I’m gonna put startup cost nail it down. What’s every expense? I’m gonna need to get this thing launched. That’s part one. That’s step one in the financials so I’m gonna call this phase 2 phase 2 and Then step one is nailing down your startup cost. What are they gonna be? Put it on a spreadsheet? How does someone look over it for you? Which we’re gonna come to later here. This is gonna be good Now number two I want you to think about your break-even Analysis, this is really important now on the break-even I wanted there’s three types of breakeven analyses and I’m gonna just do one of them, but I want to talk about a product and Then a lot of you it’s going to be obvious after this to either do a service or even a real estate project And so those are another two type of breakeven analysis I won’t get into those in depth today, and there’s some of you have a question But I want to talk about a product there was this place down the street? This is totally funny You guys are gonna love it down the street. It was an uchi row place. They’re gonna sell churros I’m like, all right, whatever churros that’s it. They had a they’ve sold some hot chocolate too. I’m like man You better be freaking parked outside of Disneyland to sell the hell out of churros to make it worth it But they and I thought it was kind of a dumb idea but whatever So I went this is a break-even analysis that you could do on a freaking napkin at Denny’s They’re cheero was 4 bucks four dollars for a chair. Oh, all right, that’s cool Now before you even get to the four dollar cheero price, you’ve got to say what are the fixed cost now? They were open five days a week six hours. They had two Employees there and the rent is tomato. This joint was around 750 a month It was a small little dive and I’m one of those Shack scenarios. I just being generous was saying 2,000 a month 2,000 a month and break even so it’s our backup 2,000 a month in fixed costs So when I start to do a breakout and even an ALICE the first thing I want to know is what are the fixed cost? Just to open the door before I sell one cheero. What are my fixed costs? I estimated 2,000 now they’re selling these for four bucks upon now is every cheero profit or is there a variable cost? so if you think of the cost of the dough and Oil to you know, deep-fry this thing they would put cream in it and then you have cinnamon and sugar and all that jazz, right? Most restaurants going to push a 50% cost of food a food cost Ratio, so if this cheerios costing me four bucks, my variable cost is going to be two bucks So my variable to just produce a churro is two dollars I’m selling it for four and my fixed costs are 2,000 So if we start to do the math How many churros do I need to sell to just cover fixed costs before I even take a one dollar profit? You take your fixed cost divided by your gross profit margin My gross profit margin was $2.00 per cheer up So if I have 2000 and fixed cost I divide it by $2 partiro profit That means I have to sell a thousand Shiro’s a month Just to break even that’s a thousand euros. You said I could sell a thousand churros man. I’ve seen, you know people eat churros It’s a pretty popular food. I think people would eat churros all the time if I open up a good cheer place All right burn up. I ran some numbers Let’s say you’re open five days a week with the average month throughout the year that’s going to be 24 days that you’re open Now if I take a thousand and divide it by 24 that’s 41 zeroes a day now if you’re only open six hours I’ve got to average 70 rows an hour to just break even so butt in and you got to keep that up from the minute you open up if you’re gonna open up at 3 o’clock and Go until 9:00 p.m. At night Those are probably our hot times maybe or start at lunch and then it’s like I don’t know But you gotta be average in 7qi rows an hour Just to break even Now do you think the people that open this place maybe thought through that did they do a test market? Did they just open a little this is where test marking and a business plan can pay out if you go out and find another Chiral place even in the ream go to the next city over the next state and go Oh I finally found another chiral place take a day get a diet coke and a bag of chips and sit out there and count how many people are going in and Walking out with a Giro do some analysis guys before you waste the next three years of your life freaking run the numbers Find out what is it going to take to make some profit in this small little business. Is it really gonna pay out? What I think and when you start looking at a chiral place in Denver compared to this little small town in Idaho and you a man, I don’t know if I’m gonna have the traffic this place does in Denver I better rethink You just saved time. Alright now before I get into my third one that I want to hit here Nishan what do we got? Okay, nice Sean great question he says he’s gonna do a fixin flip now he said he’s gonna pop it now we’re gonna come back to number three here and Frankly what nishan saying is and I’m gonna play with this nishan He’s gonna do a real estate Deal now before he starts getting all hopped up on her upper and chip is my hero – and you’re saying Joanne’s Adorable chip. You’re a stud. You’re always down there to in tune the tear out. I love you chip. Here’s the thing Nishan before you go out and buy this place Let’s run the numbers and let’s see where we’re gonna put this So if you’re out there, you’re gonna put left side right side You’re gonna put your w-2 over here some you may have a small business some you may have an S corp But you’re putting your operations over here. You’re never gonna put your rentals in an S corporation We’re gonna drop your rental into an LLC and then say you’re gonna have a partner on this deal now He said if I go out and do this deal What is where do I record the profit and how do I record it before? I put it on my tax return? well let’s say you go out and buy this property and I’m just gonna use some examples that my son and I would this morning I Was out doing some cement helping out over on his little fix and flip, so let’s just run some numbers there He bought this place for 80 grand. That’s the purchase price Now we’re expecting to put into this thing about 70 grand We’re gonna be into this thing 70 K and we’re gonna have a total investment of a hundred and fifty thousand that’s gonna be called Basis that’s called basis. I’m into this for 150 grand and then we’re gonna sell it for probably two. So we’re gonna sell this thing sells price for 200 grand That means we’re gonna have profit of 50. Now, you’re gonna take out realtor fees and some Clutts cost to sale I know some of your freaking outgoing markets not that simple. So let’s take out 10 grand for Costas sale We’re gonna be at 40 grand in profit Now if I um, once you do the math of how much money you borrowed versus how much you invested I’ve got a $40,000 profit now. Here’s the issue Nishan says where do I put this on my tax return? Because I started it in 2017 maybe 2018, but I’m not gonna sell it till 2019 Is this a business? Can I take write-offs for all these repairs and improvements? The answer is not until you sell. So this is going to go Nishan typically on a Schedule D we’re gonna drop this on a Schedule D and you’re gonna show a capital gain of This and it’s gonna be short term capital gain, by the way And you’re gonna put this on the books and you’re gonna put your your cost of investment – your sales Here’s my profit This is not a business unless you start flipping more than just one If you’re not in the business of flips, it’s gonna go on a Schedule D Now nishan if you’re doing two to three flips a year I’m gonna pop this in on a Schedule C as in Charlie If you’re on a Schedule C and Charlie now I can write off your cellphone your home office your auto because you’ve got a business of Flipping and rehabbing, but if you’re just got a day job as an engineer and you’re gonna flip a property on the side That’s capital gain investment Now you’re gonna get a write-off for all the expenses related to that property you invested in but not until the game you sell All right. Okay. Next question. What was that Rosalie? What do we got? Okay Okay jack and what’s in his name’s – Oh Jack Jack boy All right, Jack boy says he is gonna start a barbecue place man. I had some great barbecue last night I’ll tell you so Jack you’re speaking to me. All right, Jack says, how do you figure out not? The the break-even Jack says what are my startup costs gonna be now the difference between start-up fixed and variable There are three different things. So let me use the example of the chair Oh shop See, I’ve got dears the difference. I’ve got to go put in equipment tables chairs Decorations a sign I got to get this piece of equipment that if I feed this batter into it’s gonna spit out a cheer Oh, I might have a drink machine. I might have just the equipment. That’s a startup cost How many may even have the down payment for your rent maybe first and last month? So you go through Jack boy and you’re gonna say I’ll open up the barbecue place. Maybe it’s gonna be a truck Maybe it’s gonna be a van Maybe it’s gonna be a little shop down the street if there’s gonna be a band How much is it to cost the band to equip it with a deep fryer in an oven? And I’m gonna do pull a barbecue pit behind me and smoke my meat all night long whatever it is What does the equipment cost you? To open the chair Oh shop That is your startup cost Write it down and go I got to come up with that money and maybe you partner with sewing you go find someone say hey If you’ll put in that money, I’ll go fifty-fifty with you. I’ll work my butt off we’ll get this going and you get every dollar a profit until you’re paid back and then we split profit 50/50 or Maybe you come in and say hey I get a salary and this and that so you’re gonna have your startup cost Then you’re gonna say what are my monthly cost to run this place? Even before I sell one piece of meat am I gonna have rent the employees that is going to be your monthly fixed cost then your variable cost is how much does the meat cost to produce I got to go down to Albertsons and buy this meat or just to Some butcher then I got to smoke it. I got to put seasoning on it. I got to have paints and Napkins and paper plates and silverware. Those are gonna be my variable costs. So I love your question jack You’re gonna go through your startup cash to open your fixed costs every month to stay open And then what are your variable cost to sell your barbecue once you nail down these numbers guys? This will happen automatically you’ll just be sitting at your kitchen table crunching these numbers and you’re gonna go wow This is a great idea or you’re gonna go wow This is a freaking stupid idea. And that’s why you’re doing this people on the kitchen table pounding this out okay, we got Jeff those busy say He spent about 2 or 3 grand getting off the ground he hasn’t made any money yet. That’s right He hasn’t sold one thing yet. So what? Else is in and people you need to know this. He is in start-up mode He is in start-up mode where he is like Thinking of a lemonade stand you got to get all the things geared up before you sell that first cup of lemonade You’re gonna buy cops. You’re gonna buy ice You’re gonna build a sign and you’re gonna be out there trying to get people to stop and buy a cup of lemonade the minute You make your first sale you’re in business. So these are called startup costs on a tax return. And on your I Think they’re it’s fair to say that in my analysis of financials you’re gonna say that’s my startup cash to open up this online business the Minute, he makes his first sale Jethro’s now you’re in business and you’re gonna say okay if I make sales Here’s what the cost is to produce that here’s how much time it’s gonna take is it worth my time and you’re gonna start doing your Analysis with your monthly cost your variable cost and your time. Is it worth it? so you’re gonna do this analysis in here and before you open the door, so then Jethro says do I open an LLC? It depends on the type of business I think nine times out of ten If you’re gonna go to the point of investing three thousand dollars, you’re gonna make this work you’re invested in it start your LLC But Jettas, I might just call it JB Enterprise, make it a generic name. It may not be digital marketing next week It might be drywall the next beat week. It might be chocolate chip cookies I don’t know. What have a business name for your LLC That’s generic so that you can start testing your ideas small business owners Don’t fail small business owners are flexible. They’re gonna change their idea They’re gonna change the business plan because they’re gonna know I can start making money if I just tweak this a little I get sick Of those it’s like oh three out of five business owners fail in the first two years. No my business owners Just change the idea didn’t mean they fail means they’re flexible. They’re they’re agile. So Jeff those I would set up a generic name for your LLC Set up the LLC in the state where you live open a bank account Start working on corporate credit get your credit rating going Start looking at your funding maybe a partnership and get this thing rockin All right. What do we got James one more question that I’m getting back to my financial Okay, James says when should I incorporate no jet dos this is important this is right along this question So Jethro says mark, I’m getting started. I haven’t made any money yet I’ve invested three grand into my business open the LLC James open the LLC. I would not call that incorporating I would call that establishing your LLC When do we go to an S Corp and really change this into an S corporation? We do that when we’re netting around 30,000 a year, that’s when it makes sense. Now, let’s back up. I want to blow everybody’s mind here This is how we do this. You’re gonna love this. This is mark Kohler 101 if I’m gonna go out and buy rental property It’s an LLC There are my rentals but if you’re gonna go out and start an operational business, you’re gonna either start out as a sole proprietor Which right now? That’s what gesso it. Just just so this Jethro’s I apologize couldn’t say your name so you’re a sole proprietorship Starting to online market, then you could set up an LLC and graduate to an LLC But at some point some people just go straight to it You’re gonna do an S corporation now Let me tell you why if you make let’s say you bring in 75 grand in your small business You spend 25 grand on expenses and you net 50 grand You’re gonna pay self-employment tax right out the front gate that’s gonna be 0.15 3 that is going to be 75 Hundred bucks right out of the gate then you pay state and federal tax So a small business owner Jethro’s it is an LLC. You don’t want to stay here too long But if you’re only making 10 to 20 grand, I don’t have many options. But once you’re netting at least 40, maybe 30 grand We’re gonna pop over to an escort. Now. Here’s why I make the same 75. I spend the same 25 and I met 50 apples-to-apples Now check this out. There’s no self-employment tax There’s no corporate tax and there’s no Obamacare. Do you own plane? This is awesome So we’re gonna rock it three We avoid all three of these taxes, but what I have to take is a salary So I take a salary of 25 I take my pass through is 25 so you still made 50 grand I just split it. I split it between payroll and k1 Now I only pay FICA that self-employment tax the F word I only play it on the 25 so inst if paying 7,500. I’m only paying 30 to 50 I just saved three grand graduating to the escort So people in summary start out as an LLC Start out as a sole prog Get your business planned in start running your numbers start testing your product use a generic name for your enemy Get out there, see how it’s going Then as you start to make money, we can always back date it into an S corporation when the time is right We only charge on on twenty five bucks to convert it over to an S corp when you’re ready to roll Now this by the way, I’m gonna say this in my tax and legal playbook I have a whole chapter on sole proprietors I have a whole chapter on LLC’s a whole chapter on escort hiring your spouse hiring your kids What how do I write off my car? How do I write off my home office babies? This is your handbook It is called the playbook for a reason you need this So I’m gonna give it away to anybody that shares this and is in the drawing in the morning with Rosalie Okay. Now before we go on I want to get back to my financial plan. I’ve got my startup cost Look at this erybody startup cost. I’m gonna calculate my variable in this piece You have to do your sales predict projection. Hello. That was a mouthful sales projection You’re gonna look at what are my costs fixed variable and startup and what are my sales projection and guys? I’m not kidding you one of the best ways to find out what your sales projections going to be is analyze your competition Get out there play magnum p.i Starsky and Hutch, whatever you want to call it sit in the car sure competition and see any sales of making Are you gonna be able to improve on that? What do you get? How are you gonna differentiate yourself guys were only on step two. I got eight steps here I’m gonna hit these last this third one real quick And then we’re gonna go on to Q&A for the rest of the time here now on my third step What I want to hit here and I wrote down some numbers on this Is I want to do the most masterful piece that I’ve changed. My life is you want this is step three You want to start and maintain? You guys this is so awesome start and maintain a strategic plan I call it the strat plan. This is your strategic plan and it starts there’s three steps here I want you to do your 10-year vision What do you expect from your what do you what do you want to see funny? I won’t even talk about your family your health your marriage your plans to run a marathon Yeah, and you worry about that outside the box here. What I want to ask you is Where do you see your finances in ten years? What type of business do you own? What does your cash flow look like? What is your 10-year vision taking away the restraints of time? finances and really resources education weight What could you realistically do in ten years? write that down go to your favorite spot in the mount each the park down the street and Ride it down guys, when I wrote down my 10-year vision. It was about three to four years ago It took me two months to write down. What do I really see? then you’re gonna share it with their significant other and I shared it with my wife and I’m like Hey, look at my ten year vision. She’s like any of my ten your vision I was like wow You’re good, and we got let’s start another two months from debate and and we came together because we wanted to work together But your share your 10-year vision with the people that you love And you’re gonna tell him here’s what I want to do in ten years if they’re not on the same page with you There’s got to be a change. You got to figure that out. That’s called your 10-year vision Then you’re gonna work backwards if you want to have ten rentals in ten years You’re gonna say hmm if I want ten rentals in ten years I better have five of them in five years And if I want to have five rentals in five years I better have three in the next three years and I thought I’m gonna have ten rentals in ten years I better have one this year You’re gonna start working backwards to make a plan now step one is your 10-year vision? You’re gonna work back into your year plan it’s I want to know where do you want to be in ten years and we’re gonna work and reverse and say What do you got to do this year realistically to get where you want to be in ten? That is your strap plan. And I’m gonna break it down to a three six and twelve month task list See guys if you want to have a small business, you just don’t say I’m gonna have a small business You’re gonna have a plan. What do I need to do in the next three months? What do I need to do in the next week? What do I have to do tomorrow? If you don’t put pen to paper and lay out your plan You’re going nowhere. You’ve got to write this down and it’s just not something you throw into serie on a note This is something you carry with you This is your life. And then you’re gonna work backwards and come up with your plan for the year then finally This is step three and this is guys something I believe in and I myself Who are the three to five people you love in your life? That will give you us you’re gonna have your S Corp eventually and you’re gonna have your LLC’s and you might have multiple LLC’s you’re gonna have a board of Directors for your corporation and you’re gonna have a Board of Advisors for your LLC All right. This is three to five people and guess what? You’re gonna talk about in your first meeting Your ten-year plan. You’re gonna share it with them You’re gonna ask them for advice and you’re gonna share it because when you share it It comes alive and it becomes real and people hold you accountable Boom, there you go people sit That’s my first three steps or phases of having a small business Get started re-watch this video write it down. I’ve got all sorts of YouTube videos and books that can help you get there now I want to do Q&A. I’m here for you, Eddy. What do we got? Eddy I freaking love it You know what? I’m gonna have fun with this because we were talking about this last week with my Son who was here when we were talking about his last little real estate project he has worked out a plan where he can have an LLC where he’s like 20% and he’s got a partner and He put in a lot of the money for this real estate project. Oh But did he put in the money? No, it is not a person it is an IRA so you can take your IRA or 401k your Set your HSA and you can start a business with a retirement account Now what I like to do with this is you can do multiple things you can say Hey on my investment side. I can do rentals I can buy cryptocurrency I can buy gold silver. I can buy racehorses Super Bowl tickets and resell them next year you can form an LLC owned by your IRA your HSA your 401k any of these types of retirement plans and self-direct it I’ve got a whole chapter in my book on self-directing you just Youtube kohler self-direct boom start watching some of those videos and you see what you can do with your retirement account next question Issac No, this is great Eddie says mark, I already have this is good. This is good Isaac. He says mark, I’ve got my escort I’m like, all right. We’ll call this Eddie Inc So Eddie has his escort and that’s cool Escort and he goes but I don’t I haven’t figure out what my what is I haven’t figured out what my business plan is I don’t know what I’m gonna sell. Is that gonna hurt in his corporation. No, not at all Is he got the car a little bit before the horse sure but Eddie it’s done you’ve spent the money to set it up That’s cool. You got a bank account You’re gonna have to maintain this thing You have to file a tax return every year you have to pay a filing to the state to keep this S corporation active So keep your S corp active and then when you start to launch your small business boom throw it in your escort, bud I love it the carts before the horse, but let’s not throw out the baby with the bathwater Let’s not get rid of this thing. Keep it it’s great. It’s ready to go and If you’re not gonna start a business in the next year, maybe let’s get rid of it Chris. What do we got? No, chris says he liked to deposit his w2 into his business and then write-off business expenses Oh Chris if we could only wish it so no, you cannot take your day job and turn it into business income and get it Right off for your car Your w-2 is kind of like stuck. That’s Something you’re gonna have to claim and pay taxes on and you’ve told Eames to cover that. That’s what you’re implying Their w-2 but guys, I want you to have this whole other world. I want you to have this bipolar, whatever It’s a dr. Jekyll and mr. Hyde. I want you to have this other life. That’s your small business So many people say I want to say taxes III need something to make more money. I want to have retirement Well that may not happen with your day job So let’s take this other life this other side of you and let’s make money on it. What are you passionate about? What do you love to do? Let’s make money at it now. I can write off your cell phone now I can write off your auto and your travel My friends is your small business on the site this other side of you. Okay, Kathy Oh Kathy whoo, I love this because I love marking Kathy says what are some low-cost ways to get going on your business? All right Let’s have fun with this. I don’t know what Kathy’s business is So I’m gonna keep this very generic Kathy in today’s day and age the first thing you’ve got to start with You’ve got to have a website don’t you know, I mean, I’m gonna do that. I want to have a name What is this name that you’re gonna brand because as you start to go marketing You’ve got to have something you believe in. It could be again. You can have an LLC. That’s a generic name like Eddy Inc But then you can set up what’s called DBAs or URLs a different website so you can have multiple Businesses going into one S corp. I only have one S corp in my life Mark Kohler ink and I got multiple businesses going into it. So the first thing is is I find a catchy name I like to brand you got a brand this what are your colors gonna be? What is your logo going to be and Make sure that it pops because you want to be able to sell this bad boy number four I got you know what I was going there. You’ve got to have a website Even if it’s just a landing page because the first thing people do today. Hey, you got a small business What’s the name of it and they look on their phone? It should be redundant meaning that it’s just as cool-looking on your phone as it is on a laptop or a desktop So make sure that your websites up and going number five For marketing, I’m gonna deal with it. I’m going to throw out social media. You got to get it out there You’re gonna have to choose the core social media you like I do the big four, I do Instagram Facebook LinkedIn and Twitter Those are my big four. Some of you are gonna have more of a good time with maybe Snapchat or what some other ones? What am I missing ladies? I Re I’m doing Instagram. I’m there. I’m a teenager at heart. Okay, we’re good Get your social media going and then number six is you want to come up with a referral network? I think one of the best things you can do is find other people that are going to refer to you a referral network It was really funny. I had this client. What was he selling? Maybe it’s best I don’t remember But he figured out the best referral network was Hair Salons Ladies would sit in the chair get their hair done for four freakin hours and spend $200 or more makes no sense at all Anyway, these ladies would be sitting in the chair forever at the hair salon talking about their business You know life and their crappy husband and all these things right and so their head air salon And he said if I could get my hair salon ladies to recommend my business, it was my best referral source So he started to go to these hair salons and give away freebies and money and all this stuff You need to find out who is most likely to refer customers to your business start building some Referral network an affiliate program. Anyway there six. Those are fun. I’ve got here. Oh you would love this I’m just gonna say this in my marketing section here of my book. I have 72 Let’s see what it is 72 different marketing ideas from social media to standard media to events to technologies to print and signage to Networking and you can go through and say am I going to do this in the next three six or nine months? So I’d really recommend you get over there Kathy Miami one last question Should we do it or one to we’re do two more questions Randy. What do we got? Okay randy says She’s got one S corp. This is very similar to me trami. She’s got one escort. And this is Ramy here and She’s doing her payroll and she’s doing her k1. We’re writing off all these wonderful expenses She has a board of directors here to share her plans with right isn’t this sweet? She’s got a tax ID number She’s got a bank account and she’s doing her QuickBooks, right? This is what we’re this is what we dream about, right? This is what small business owners do She’s got three LLC’s. Let’s see. What does Ramy doing. Let’s say Ramy has a food truck and she’s doing sprinkler systems and What else is Randy doing let’s think And Remi is doing drywall. Okay. So Remi she is very Very industrious with their hands these might look like three guy things that you know out here, but who knows I’m just being done Okay, she’s got three different LLC’s owned by her S corp. Is there a problem with that? No, it’s great. She’s got asset protection Between each operation. So if one person’s putting up drywall and gets hurt, they can’t touch her food operation vice versa So you’ve got three different businesses all funneling into one escort. That’s a beauty it’s called a consolidated tax return This is gonna be an 11 20s tax return. She’s gonna do one payroll for herself Write-off expenses that relate to all three businesses. She might have partners over here. She might have different websites over here So these are three different businesses, but all funneling into one consolidated entity very efficient. That’s what I do Ramy I like where your head is any last questions. Okay, Rabi Okay, well Rabi she threw me a softball She said how example looks those good her business how many checkbooks should she have? Well, you always want to have a checkbook for every entity you set up So we’ve got you know it and you need to have a personal checkbook So let’s do personal checkbook is number one because I want you to pay for groceries Underwear your car payment your house payment. Your rent is got to come out of your personal checkbook You always always have a personal checkbook. Then you’re gonna have a checkbook for your main corporate entity. Number two Then you’re gonna have a checkbook for each entity three four five. So you’re gonna have checkbooks. No guys You may already be freaking out now hearing with me. Some of you may be saying mark. Why am I gonna have five freakin checkbooks? guys, do you have one big bucket in your bedroom and you put your underwear and your shirts and your pants and your shoes all In this big bucket and when you come home, it’s a nightmare That’s what you do when you have one checkbook for all your businesses in your personal life. You’re screwing up your organization So many people come to me go mark I can’t have five checkbooks usher’s two crazy guys That’s like having five Chester drawers in your hat in your bedroom You want to separate your socks and your underwear and your jeans and your shirts? That’s what helps you be efficient get dressed quicker in the morning and keep your clothes clean and organized That’s the same way with your books I want you to have five checkbooks in this example because I want to keep your personal separate from your main business I want to keep your drywall business separate from your food business now You can have a QuickBooks file for each one of these one desktop QuickBooks allows you to have five different bank accounts five different checkbooks Five different sets of books. Now. You may even have a checkbook for your spouse You might this would be number six you might have a checkbook for savings for just emergencies You might have a checkbook for taxes that you’re setting aside for your deposits. So that’s seven That’s eight. And then each one of my kids have a checkbook. That’s 9 10 11 12 Then any other little small businesses? Oh, you’ve got rental properties. There’s another checkbook Okay, so, you know, I I go on my Wells Fargo app I’ve got like 25 checkbooks, but it’s okay. Each checkbook is a different drawer in my closet for a different type of clothing Stay organized with your checkbooks. It’s not too big a deal. Now. We have a law firm. We have an accounting firm We help clients all over the country. This is not a sales pitch video. This is here to help you. I love Entrepreneur Magazine I love what my team is doing over there and it’s just Ryan Shay The CEO does such a great job getting excellent information out there continue to get to your Entrepreneur website the entrepreneur social media post read the articles They’re so so helpful. But if you need a lawyer if you need an accountant, we’re here we help clients all over the country and probably your best bet is just get to my website because you’re gonna go to any of the other websites for mine, so go to WWE Kohler dot-com There you can sign up for my newsletter. It’s free every week I’ve got videos and blog posts that are free every week to help you in your tax and legal area Please subscribe if you’re on youtube to subscribe get over there. Click the bell so every time I do a new video you’ll get a ping and please finally give it a like give it a share and Rosalie in the morning is going to Let you know who the winner of these books are and I’ll send them out and finally I have a business owners workshop in five different locations this fall Chicago, Philadelphia Orange County Seattle and Honolulu. I know I go to Honolulu. It’s a pain I don’t really want to go I do it for you so you can get a tax write-off go to Honolulu Now you my Hawaiian clients, you know, I’m just joking around because I love to get over there We’re gonna go surf the North Shore in November baby now We also have our self-directed IRA summit in Chicago and also in Hawaii. We’re doing Chicago in June and Honolulu and August tax write-off to come visit we talked about how to self-direct your IRA your 401k your set your simple your HSA your Coverdale and we bring it all together with a luau in Chicago and port ellos. Sorry, did I say luau in Chicago luau in Honolulu and port ellos in Chicago? There we go. So anyway, check those out. They’re all on my site. You can sign up anytime you want. I appreciate it I’ll be here next week for another Facebook live and youtube live and if you’ve got a topic you want me to cover? Mention it down below. Rosalie will take a note and let’s do it. I’m here for you. Thanks everybody

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Post navigation

13 thoughts on “The 3 Phases of Starting Up Your Small Business with Mark J Kohler | 2019

  1. Mark love your info! Most of the world is Single person LLC. , 10999 ers.. INTERDEPENDENT CONTRACTORS. PLZ ADVISE..

Leave a Reply

Your email address will not be published. Required fields are marked *