Transcript

This is medical millionaire the podcast, helping your Med Spa increase in status, visibility and profitability. Join your host as he dispels myths, shares trends and gives you actionable steps today that will take your medical practice to the next level. Here’s your host, expert marketer and founder of growth 99 Cameron Hemphill,
Hey, what’s up, everybody? Cameron Hemphill, here your host for medical millionaire. Hey, first off, thank you guys so much for taking the time to tune to the podcast. Our goal is to give incredible value and insight into the medical esthetics market. So today I have a guest on and I’ve talked to this lady a couple times in the past, and I was super impressed with what she has to offer, especially for this space. And this particular vertical that she services is in the financial space, and it’s a space that I’m very close to. Actually, you guys obviously know I work on marketing and technology and all that stuff, but you have to know your numbers. And I have Danielle Hayden with us. She is the CEO and founder of Kickstarter accounting. She has a podcast, she has a course. You can go to Kickstarter accounting.com to learn more about her, but in our conversation offline, I was super impressed. I want to have her on. Danielle, thank you so much for joining me. Thank you
so much for having me here. Excited to make numbers fun and approachable.
I like that. I like that numbers can be boring. I guess most
people are scared of them, right? Like most people are scared of them, they’re telling themselves a story. I’m not a numbers person I’m not good with wasn’t good at math. Spend too much so let’s drop all the stories and make this a fun and approachable.
Yeah. So that brings up an interesting thought, because I think, like, because I know, talking to you offline, you talk about a lot of it starts with having proper book keeping, right? And so if you’re a practice owner, or you’re thinking about getting into become a practice owner, or you’re growing or whatever it is, there is transaction volume coming out, going in, and if you don’t have proper bookkeeping, like, what’s the sense of it all? And let’s be honest, as practice owners, even as me, we didn’t go to school to learn books. We went to school to, like, learn our technique and service patients. So, you know, I think you’re right, like, it’s, it could be scary or daunting or something, like, we don’t want to look at, but we but we have to. So can you talk to us a little bit about that?
So I think the minute we decide to become a business owner, and maybe you’re an accidental entrepreneur, but the minute you decide to start servicing patients clients, right? The minute you decide to take money from them, the minute you start to work with vendors and contractors, it is now your responsibility to know your numbers. So this isn’t I don’t get to tell myself a story of, oh, I’m not good with numbers, and I get out of it, right? Nobody cares. You have to, as a business owner, know your numbers, otherwise you are not going to have a healthy, sustainable, profitable business. And therefore you’re not reliable to your vendors and to your your your clients. And so it’s really important that you know your numbers. And you know, I went to school for a really long time, and my team is very well educated in what we do, and I have no idea how to do what you do, right? I have no like, I have so much respect for what all of your listeners do. And we need each other. You don’t have to do it alone. We need each other. So whether it’s my firm, Kickstarter county Inc, or somebody else, you, as the business owner, should never be the one doing your own bookkeeping, because you don’t know how nobody taught you the bookkeeping. And I always left. We had a client who just gave us a few months ago, and this poor woman. She said, I’ve been doing my own bookkeeping. I really enjoy it. I think I’m doing a really great job, but I want you guys to review it, tell me how I’m doing. Take it off my plate moving forward. And my team came to me, and they’re like, Danielle, how do we tell this poor woman that her taxes are wrong? Last year she’s gonna have to file an amendment the balance sheet is is all wrong, and she thought she was so confident that she was doing it correctly, and here she over reported her taxes like we saved her a ton of money. She’s getting a refund now. It’s great news, but we had to blow to the ego. But it all starts with bookkeeping, right? Because how do you make good business decisions? I’m ready to grow. I’m ready to invest. I want to go to a conference. I want to coach. I want a consultant. I need to hire. I want to move locations. I’m ready for taxes. Like, you literally can’t do any of that without bookkeeping, so it’s not the fan, right? Like, doesn’t. Start with the fancy stuff. It starts with the boring in order for you to be able to do all the fancy stuff.
Yeah, that’s, that’s a really good point. And I think, like, you know, some of the there’s, there’s a lot of growth happening in this space, and and mature growth and private equity coming in and wanting to make acquisitions in this space, which is exciting on one hand and maybe not on the other. But at the end of the day, you know, we talk about knowing your numbers, like, from the marketing side, we say, know your numbers. And we have acronyms like CPL, cost per lead, cost per conversion, and we have mathematics around that. When you say numbers, right? I want to get, I want to get deep for a second when you say, know your numbers, what do you what do you mean by that?
Yeah, that’s a really good question. So I’m specifically talking about your profit and loss statement, your balance sheet and your cash flow statement. So these are three kind of standard reports in the accounting, know, your numbers realm, and all three reports are equally as important. So when we look at the balance sheet, we’re looking at how much cash do I have, how much inventory Do I own, how much debt do I have, right? So short term debt I took on credit cards, or long term debt I took on a line of credit or something I’m going to be paying over long term is my business going to drown in debt? Right? Is my debt going in the right direction? Now you might be on in a season where you’re taking on debt to grow your business, that’s great, right? But we need to make sure that that’s not out of control, and that when you start to repay it, that the debt is moving in the right direction. So the balance sheet, we’re looking at debt, and then one area where I see business owners get really thrown off is this little equity section of the balance sheet, and this is where our owner’s draws, our personal expenses and taxes paid falls into this bucket. And a lot of times, business owners will say to me, you keep telling me, I’m profitable, but where the hell is all of my cash? Right? Like I have no money. Where’d all my freaking money go? Yes, and it’s usually in this section or in inventory, right? So when you are feeling like, I don’t know where my cash is, you can find your cash on the cash flow statement, and it’s usually hiding on the balance sheet in inventory, debt repayment and owner’s draws, personal expenses and taxes paid. So it’s kind of balancing the cash flow statement, how they work together. Does that make sense? It
does. And I think, like, you know, I’m a part of masterminds and other groups, and when I was talking to you offline, I’ve studied this area a lot in being an entrepreneur, because I’ve been a victim of trying to manage my own books many years ago, and I always thought that I could manage it in the early days through my bank account. Yeah, I thought managing my bank account and knowing no, I have money, because there’s 10 grand in the bank account, I got money. But if I’m hearing you correctly for the audience, you could easily have, you know, 10,000 or $12,000 credit card payment in between, like so. And I think that’s a common mistake as people try to manage the financials in their bank account. Would you agree?
Oh, I couldn’t agree more. You and I get this fancy text message every morning from my bank on on my cash balance. And a lot of my clients, I know we’ll log in and be like, okay, cool. I’m gonna, I’m gonna, I’m gonna, I’m gonna sign up for this huge commitment because I got $10,000 at the bank, or $100,000 a bank, without making consideration to the fact that I’m actually in debt, or I’ve taken way too much and draws, or maybe I’m an S corp and I haven’t paid myself enough, and therefore I’m going to end up in the deep end with the IRS. So we really need to before we are making financial decisions like spending and commitments or hiring or looking at our profit and loss statement. And I have two versions of the profit and loss statement that I there’s like four, but I’m going to give you two. I get really excited about this one. So this is the percentage of sales report. It’s your income statement as a percent of sales now anybody can go pull this report from their QuickBooks. You got to make sure your bookkeeping is done correctly, but when your income statement is set up correctly. Now we have a whole strategic framework that we use with our clients to set up the income statement. Income Statement. When you look at the percentage of what you’re spending, you have to spend money in order to grow a business, but we need to be spending in the right categories. So this report will tell you it. You are spending in the right categories to reach your goals. So I had a client who came on a call with me recently, and she was saying, I don’t know why my revenue is not growing. I feel like I’m doing everything that I can. I’m working my tail off. And I said, All right, let’s, let’s, let’s look at your numbers, and then we’ll go from there, and I could tell you within two seconds why you’re not growing because you’re spending 3% of your sales on advertising and marketing.
Oh, nailed it,
right. Because we, if your if your goal is to grow your business, we need to be spending at least eight to 10% of your sales on Mark marketing. Now this is going to change depending on the season of your your your business, because I had a client who originally Her goal was hockey stick growth, right? She wanted to grow her revenue, and so she was spending a ton of money on live conferences and networking, and like she was making double down investments. The next year, her goal was to buy a home. She was ready to put down some roots, and so she said, I actually need to change the way I’m investing. I need to take home some owner’s draws. She was an S corp, so she was paying herself, did some bonuses that year, and so she had to scale back her spending in other areas so that she could buy the home. It’s fine. It was in alignment with her goals. After that she bought she purchased the home. Super exciting. Her mom got sick, and so she had to care for her mom, and so her goals changed again. I have to have my team step up. And so her team rallied around her, and when she looked at her numbers, about 75% of her sales were going to paying her team, but she needed that time to care for her mom, and so it aligned with her goals, right? So see how our spending is going to change. Once her mom passed, she was able to re regulate her business. She’s able to lower the amount of spending she did, on, on on her team, to about 60% of her sales, so that she can invest in areas of the business. But we have to know what season of life we’re in, and then look at that report to make sure that we’re spending aligned with our goals. And then the other report is the profit and loss as compared to comparison to last year, how do you know where you’re going if you don’t know where you’ve been? Very true, right? Like, look at where you’ve been, what are the trends? And then ask yourself those important questions of what’s working, what’s not working, and how do we steer the ship in the right direction?
Yeah, I like how you say that different seasons of life, you know, and that could change month to month, quarter to quarter, year to year, depending on, you know, external events, of course, but you bring up a really good point on the percentage based marketing spend, based upon growth, and for somebody that wants to grow very quickly, eight, 10% shoot, I’ve seen, I’ve seen people spend, you know, north of 20% I’ve also seen them spend 5% on a stabilization pattern. Maybe they want to grow 20% a year over year. And I’ve definitely seen them spend well under 5% and expect a growth factor, which is extremely challenging. And so I’m glad you brought that up. And then you guys understanding the numbers and understanding seasons of life, where, where do we have people? Where do we have team members? What are we doing with the numbers? Where have we gone historically, in terms of our P and L and reflect right? So I look at my books a lot, and I don’t necessarily do the bookkeeping, because in my business, there’s, there’s a ton of transactions going on. We spend a lot on marketing. And, you know, we also have have high payroll. And Frank, you know, the size, we don’t have inventory costs, but we have a lot of subscription costs that we use. And for a practice owner, they have inventory costs. They have, you know, big cogs they have, you know, lease payments, there’s, there’s tons of things that are going on, right? But when I’m analyzing my numbers, there’s a place that I look in QuickBooks every once in a while, and it is the, it’s the percentage of sales margin. So I can go in there, and I can pull the P L, like you said, and then I can, I can filter it based upon the percentage, so I know what my net net is. And so kind of going back to your point of, look at your history of your P, L, I’ve done that exercise. And what i What’s interesting is I found, like, holy cow, one year, we actually sold more than we did in previous years, but we made less on their head, right? Yeah. So I’d like for you to talk about that, because I think sometimes we think that we sold, we had a we had sold more this year than last year. So you think that you made more money, but in some cases, you may not. You got to watch the spin that. You got to watch that
bottom line. So we had a client who she was so excited to launch a. Second revenue stream. And when she was doing this, she had to hire on some contractors, and it required some investment on her part. And if she was looking at just the sales right, like when you looked at her point of sale system, you were like, wow, she is killing it right. Like sales hockey stick growth. But thankfully, she was looking at her numbers with us every single month. So every single month, every single one of our clients, like we do the bookkeeping, but then they get their financial statements, and what we call a snapshot. The snapshots just as easy to read PDF. And so she was getting her snapshot every month, and she jumped on one of our financial review calls, and she said, I think I’m gonna wind this down. I think I’m gonna wind down the second revenue stream. And I was like, what, you know, hold on. Is there anything that we can do? How do we restabilize this? And so we she ended up waiting another three months, and she watched month over month. Here’s what was happening. Is that she didn’t realize how much inventory was going to cost, and she didn’t realize how much spend her contractors were going to be charging her, and she was watching her debt increase over time. And she’s like, I can’t bankrupt my family. I literally cannot bankrupt them, and therefore I have to act responsibly quickly. And so she ended up dissolving. And guess what? She is so happy now and it and she’s in the right place for her business. Now, bring up the story, because not all profit is created equal. We’ve had some clients who are really profitable, but they’re profitable because they’re not paying themselves, they’re not paying a team, and they’re not investing in their growth. And so they are. They have no energy. They’re exhausted, burn out, right? But they’re like, I’m profitable. And I’m like, okay, good for you. What are you doing with all that profit? You’re gonna land in the hospital because you’re so burnt out. There is, there is a balance we want to see our clients at about 10 to 15% profitability, so sales, minus inventory, minus all of your operating expenses, we want you to 10 per 10 to 15% of profitability. That number allows you to to in one be worth being purchased if somebody wants to come and buy your business in the future. It helps you reinvest in the growth of your business and create a healthy, sustainable business. So not all profit is equal. Just because you’re profitable, if you are really profitable, I want you to ask yourself, do you have the right team in place? Are you paying yourself enough? Are you paying yourself in the right way? Do you have the right software to support your your client experience, to support your back end? It’s it is a balanced game. I don’t want to see anybody over that 15% profitability.
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Yeah, it is a balanced game. And I think like as your your business or your practice changes from like, startup phase, growth mature like you have to change systems. You have to, you know, you’re going to hire people. You have to hire you can’t do it all right? I mean, I guess you could if you want to jeopardize your health, and then really not, not grow, right? You have to delegate certain objectives and activities to your team member and have the right software and tools in order to scale, you bring up a really good point. So if you are, you know, if, if you bring, if you keep somebody at 10% you’re talking net, net income, right? You’re talking
after the income statement. Okay,
and so, okay, and that’s after you feel like, yeah, I’ve, I’ve paid myself for what I’m worth. I. They compensated the team. Everything’s paid 10% and, you know, based at home with the top line sales. And so for those of you guys are doing, you know, let’s call it a million dollars in in sales, right? A million dollars in revenue. 10% of that, or net income, would be $100,000 after paying for yourself. Or at 15% that’d be 150 grand, right? Which is, which is, you could distribute that right to yourself, but, yeah, you can do whatever you’d like to do. And that’s is that the amount that you get taxed on? So for the audience, that’s what I’m like, that’s what I’m curious to know, is the business has a million dollars in sales. And I think, like, from an educational standpoint, let’s, say they operate at 15% what would they pay taxes on in that case?
So you are going to pay taxes on that now, as a business owner, you’re paying about 20 to 25% depending on your personal situation, about 20 25% of your net income in taxes. It is part of being successful is paying taxes. And I think there’s no worse advice than that a CPA can give than to tell you to go spend money to avoid paying taxes. Like literally, do not ever spend money. Don’t ever spend money just to save money on taxes. I hit a CPA tell one of our bookkeeping clients a few years ago you had $20,000 in profit. Go spend it. Well, guess what? She spent her $20,000 in profit. Here’s what the CPA didn’t ask. What’s your growth strategy for next year? Right? She was planning on opening a second location, and she needed that money to open her second location. Well, now she had to take on debt, and she had to fund that second location with the with debt, because she had spent that money in places that she didn’t need to spend it. So we only want to make business decisions. We only want to spend money when it makes sense from a business perspective, not just to save money on taxes. So yes, you’re going to spend money on the taxes. But here’s the other thing. Is that somebody right, like we all, should be building our business to be sold one day when you’re when you’re tired, right, when you don’t want to do it anymore, or maybe when somebody comes and offers you a life changing amount of money for your business. That’s a moment to be celebrated as a business owner, right, that you built something that somebody wants to come and buy, and if you are running your business at a loss, so you didn’t pay taxes, guess what? There’s nothing for them to buy, no, right? So we, we have to be building businesses that are worth like, right? Like, even if you’re not thinking, like, Danielle, I don’t want to sell my business like, I don’t care about that you do, right? Because How amazing would that be if somebody came and built, bought your business for a life changing amount of money?
Yeah, even if you’re not, even if you don’t want to sell today, your back to your seasons of life could change in three years, five years, 10 years, and then, like, let’s say, something happens in three years, and you don’t have your numbers like, your ducks in a row, the chances of you getting acquired from like, when somebody is interested, or when you go to market, is going to be challenging, or you’re going to have to clean up those books and then prepare to sell, and then do Q, a V, like, it’s going to take, it’s going to take a term like, double or triple the amount of time. Because they’re they are buying, like, the financials is what they ask for. They’re buying it. Yep, they asked for the let me see your P L, let me see your balance sheet. Let’s sign an NDA, let’s, let’s, let’s look at that like, if they’re having a conversation with you, that you’re obviously have done something great, and you have a great brand, of course, and you know, but they want to see the nuts and bolts of the financial health of the business, right? Which, which is interesting. So that CPA that said, Go spend the 20 G’s. In his mind, he’s like, Hey, I’m gonna, I’m gonna help this person not pay any taxes. And I won at my job, which is, okay, maybe that’s, that’s one way to look at it, but at the same time, like they could have just paid taxes on that 20 grand. And let’s just make numbers easier, 25% of 20,000 percent of 20,000 is what they would have paid. It’s not that much, right? And they’ve been able to fund that new location, not take on too much debt, not pay the interest, and at the same time, now actually have like an EBITDA that they could show on the balance sheet. That is attractive, right? So that brings up a question that I have for you, um, because in this space, you can buy equipment, and I don’t want to go too far down the rabbit hole, right? But these, these lasers and equipment, they’re expensive, yeah. And you know, you would know more about this than I do, but I know that there’s, there’s areas in the tax code that you can depreciate. Uh. Equipment purchases, right? And so, and I want your take on this, like, if you if somebody had, like, let’s say, Hey, I made 100 grand, and I’m gonna pay taxes on 100 grand. Let’s say 25% I’m gonna have tax bill at 25,000 maybe that’s the Fed. And then, depending on where you live in the state, maybe you pay it, maybe you don’t, you know, some of the state, again, don’t quote me on these numbers. I’m not a CP, I’m not licensed, but I think I’m somewhat accurate. You’re getting close. You’re good, yeah. So like if, then, if somebody goes and buys a $200,000 piece of equipment with depreciating that offset the ordinary income, but not the EBITDA,
so you can have what’s book and then tax, so you can depreciate it from a tax perspective and leave it as an asset on your balance sheet. So your tax accountant and your bookkeeper, they would have books for financial purpose, for financial management purposes, and then books for tax purposes is called book to book to tax. So absolutely, it would still be an asset for your business, because it’s an asset that can be sold in the future. It would just be a depreciated asset that then would be sold. But again, I still feel like my opinion is still only if you know that you can afford that piece of equipment. Because here’s what I see happen too often, is that where we don’t have a full money team, so you should have four people on Your Money Team, bookkeeper, because they’re the most important person. That’s the person that’s going to help keep everything else organized. Your Tax Account. Their only job is to file the taxes and give you tax strategy. They’re not thinking about, how should you run your business? Your financial advisor. They’re planning for future wealth and your retirement, right? Wealth Creation. And then our business coach, we need a business coach or a CFO who is helping us look into the future of the growth of your your business. Now, the reason that that is important is that your CPA right, what was their job to file your tax return, and that’s it. So you need to have your bookkeeper and your CFO, who’s helping you look at can you even afford, from the cash perspective, to buy that piece of equipment? Would it make more sense for you to buy inventory? Would it make more sense for you to take a bonus to bonus your team? What is the most important piece so do not buy that equipment be just because it’s it can be depreciated. I want you to make the purchase that aligns with your goals for next year, and that’s why you need to have all four people on that on that team.
Well said, well said, I see it all the time is, you know, like one could look at it as a tax strategy, but not understand the complications of that, right? So in some scenarios, it makes total sense, yeah, of course, if that aligns with the business plan. In other scenarios, it just, it just doesn’t. You’re almost just like kicking the can down the road, and you’re building yourself. You know this, this financial catastrophe in the next years to come, right? So that brings up something that I wanted to chat about. And I know that you have like, you have a podcast, you have courses, you really care about this space. You and I actually are very similar in in the regard of money management. In fact, years ago, I wrote a book called, it’s called Wow. It’s called win on Wall Street. It’s, it’s how to get rich over time, not overnight, which completely random that I just said that. But you and I have, I have a very strong relationship with with money, in the sense of knowing where it is, where it’s going, what to spend it on. Why investing? Like, around your your money team. I know you have a five day boot camp. I know you have a money mindset mastery, like, can you talk to us a little bit about that? Because those, I found these resources on your website when before we hopped on and you know, those really stood out to me. Can you talk to me about this money mastery that you have on your site, and then also this, this boot camp? I think that’s really cool.
Yeah. So what we found was
we had been doing bookkeeping and CFO services for our clients for the last 10 years. Almost 10 years. It’s crazy, where we were doing the bookkeeping, sending them their financial statements. We send them the snapshot, helping them with their budgeting, their projections, and all of that’s amazing, right? Like, it’s really cool work, but I really consider us a done with you service, not done for you. Like, yes, we’re doing the bookkeeping for. You. We’re creating the budget for you, but I can’t, like, shove that information in your head, right? Like, I can’t literally, be like, cram it in, right? So I need, I need you as the business owner, to participate with me. I need you to do this with me, so that you are learning from the budget, so that you are using the budget, so that you are looking at your numbers. And so I started asking clients like, why don’t you, why don’t you book a monthly call? Like you get a monthly call on your services, why aren’t you booking them? Or, I see you left my email unread, like I need information from you, and I can see here that you’ve literally left me on red why? And here’s what we found out. It’s money mindset. It’s a heavy topic, man, right? Like you and I can talk about it all day. We feel comfortable with it, but most people don’t. We all have a money mindset. We have had a childhood where our parents have had experiences. Maybe we grew up poor, maybe we grew up with money. Maybe our parents fought about money. Maybe our parents never even spoke about money. We watched our teacher go broke. We watched our friends parents go broke. They started a a business, and we watched them go broke, right? We don’t, we don’t check that out in our personal life and then check into business. So all those stories we’re bringing with us into business. And so we have to resolve that, because we we have found that there’s four money personality types, and you can go to kickstart accounting inc.com/quiz, and take your take your take the quiz to find out your money personality type, but it’s free spender. You don’t care about the money. You don’t care about the numbers. When you want it, you want it now you spend it the mirror keepers. It does not matter how much money is in the bank account. It never feels like enough. I’ll ask these clients, they’ll say, I reinvest everything into the business. I’m like, What are you investing in? I don’t know, nothing, right? Like, just keep me the money in the business. I’m like, okay, great.
Yep, those are our keepers. Then
we have our perfectionist they’re obsessed with knowing where every single dollar is coming in and out, and it’s freaking exhausting. You can never look at it like a CEO, because you’re obsessed with knowing the details. I never balance seeker, our balance seeker, somebody who’s like, I can’t do it myself. I need a team. I need to spend money to grow, but I need to have three months worth of expenses in my savings account, right? Like I can balance that together to run a successful business. So that’s why we’ve created our money mindset mastery and the boot camp is to help business owners understand their money mindset, heal it. Because I need to do this with you. If I’m just doing your bookkeeping and throwing numbers at you and you’re not doing anything with it, it’s not going to help your business, right? I need you to participate with me
totally in you know, it’s well said, because you could say, Okay, here’s your books for the end of the month. I reconciled everything. Here’s the invoice, and you’re like, we did it, we did our we did what we what, we signed off. But I can see, like, your passion behind that. It’s like, Well, are they learning, like, are they really? Are they even maybe looking at the reconciliation? Do they even understand what that word means? Um, yeah. I mean, I think that’s amazing. Like, I would encourage you guys go, I have an interesting relationship with with money. I would say I’m more of the I’m definitely one of the Keepers for sure, yeah, and which is a it’s a good trait in terms of securing capital to do certain things, but it’s also, it’s also been on the flip side of that a negative impact on me as well, right? Because there’s been certain things that I want to do, that I could probably fund and do, but for whatever reason, I don’t want to part ways with that, with that amount of capital, you know? So it’s interesting to understand your relationship with money and to be able to execute on that. So I’m really glad that you you put that together. So guys, I would encourage you, go to go to the take the money quiz. See what personality type you are, see what relationship you have with money. I know that it’s definitely can be tied back to, you know, early trauma or something that took place and in family. Some people says money is rid of all evil, you know. Other people says, I’ve never seen a guy with a on a jet ski with with a frowny face, you know, like,
so funny, but
you know, kind of tying it back to, you know, to look at it growth and and really understanding, you know, financials, like, if you want to be a bit. Business owner, and you start growing at some point, you have to just dive deep. You have to understand profit and loss. You have to understand balance sheet. You have to understand statement of cash flows. Guys like, I can’t tell you how important it is. I’ve gone through exercises where I’ve sold companies. I’ve gone through exercises where my companies were under contract under loi and the deal fell through because the books weren’t as good as what we thought they were, right. That is devastating. I mean, that is devastating. And then I’ve been on the other side where I had a firm, or I had a partner in house or external that managed the bookkeeping, like manage everything correctly, have this built out. And then, you know, there’s, there’s wonderful things that take place on the other side of that when a deal goes through, because at some point, you know, you’re either going to hand your business down, your practice down, you’re going to sell it, either to a strategic buyer, or to private equity or to whoever, like, there will be a transaction that takes place at some point, and you need to be prepared for that, because, like, dude, life happens, and you know they they’re gonna look under the hood from a financial standpoint and make sure you’re healthy enough. Because when they come in, they can say, okay, cool. Here’s what we have. Here’s the health of the business, here’s their EBITDA, here’s our ratios, how much they spend on marketing. Here’s their sales. I know if I come in here, and let’s just say I’m going to buy the practice for ten million or whatever it is, I can duplicate that, or I can pour fuel on the fire, and I can get my money back, if it’s a strategic buyer, private equity. All they are looking at is financial scalability, and like multiplying their return, right?
It’s an opportunity for you to make more, right? By knowing your your numbers day to day, you’re going to make more. When you go to sell your business, you’re going to make more. Like, I don’t ever want to see a business owner, just close the doors. I’ve seen it happen too many times, and it breaks my heart. The book Built to Sell really. John whirlow, I mean, it changed the way I think about business and the way that I run my business. And so I encourage everyone to go check out that book, and it’ll help you understand why there’s so much value in the opportunity to build your business like it’s going to be sold, and why you need to know your numbers along the way. Because I want all of you to run healthy, sustainable, profitable businesses. I want you all to be able to grow a business that makes you the amount of money that you need in your life, and to create that generational wealth. And it all starts with like, day to day, knowing my numbers so I can create that over time. 100%
like, and, you know, have a, have a financial review, you know, if you guys, you know, end up working with Daniel and her team, you know, I mean, have a financial review. Like, one exercise I do with my wife on a weekly basis. It’s every Wednesday, we have a financial meeting and and we go over, it’s, we make it fun like, you know, but because, hey, honey, let’s sit down. Let’s go like, that’s just boring, but we make it fun, but at the same time, it’s a conversation that needs to be had, because you have to know how much cash is coming in and how much cash is going out, and what is that surplus, right? What is that? What is the what is that surplus? Because then you can make very, very great decisions and and, let’s, let’s just, like, table, the whole, like, business conversation for a second. Let’s take it to let’s take it personal, like, in the sense of inside the house, the household, right? Because, in a sense, there is a P and L and balance sheet in the household. Yeah, there is, yeah, right, like, like, she has a credit card, or he has a credit card, and we swipe, when we swipe, and we Venmo, and, you know, stuff happens, and we buy things, and you know, we have to know what’s coming in, and then we have to save a certain amount of capital to to invest, like, I’m a huge, huge believer in, in making a surplus. So you can buy assets that actually produce income and create passive income, which is like ultimate financial freedom. Do you talk about that at all? Danielle and like that mastery in terms of that surplus and then investing, like, talk to us a little bit
about that. So we actually offer personal bookkeeping services. So again, what we found is that if you’re a free spender in your business, you’re probably a free spender at home too, for sure, right? So we kept on being asked by clients like, hey, my business finances are so organized. Can you do this for me at home too? And so we offer both business and personal bookkeeping. So our clients who are doing both, they get bookkeeping service, they get bookkeeping and then a financial statement snapshot at the end of each month for both their home and their business, because we have to know at home, how much do we need in order to live? Life and living isn’t just like I need to survive, but I also want to be able to go on that vacation. I want to be able to buy the home. I want to be able to do the next thing. I want to eventually retire. And although we’re not financial planners, so we can’t help you invest the money for retirement or anything like that, we can help you see the picture, because if you know where you’re spending money, you know how you can adjust to align with your goals.
Yep, yep. 100% and I think that’s great. I mean, there’s, there’s, there’s the business side, there’s the the personal side, you know for so for those of you guys that you know, are curious about your books. Maybe you’re not managing your books the best. Maybe you think you could do better. Maybe you want to have a conversation. Maybe you want to have a conversation and understand what your personality type is with money and and, you know, start to position yourself to build your practice like it’s going to sell one day, which there’s, there will be a transaction eventually, whether it’s positive or negative. You know, I don’t know I don’t know that’s that’s up to you, but, you know, reach out to Danielle and her team. I mean, you can go to her website, and again, for the audience, like, where’s the best? What is the website domain? Again, Danielle,
go to kickstart accounting, inc.com
you can book a call there. Also, if you go to Kickstarter accounting, inc.com/gift we have some awesome resource for your listeners. You can download the the top tax deductions for every business owner there. So don’t want you to overtake but I want you to take what you what you deserve. You can find us on Instagram, at Kickstarter accounting and our podcast business, by the books, awesome,
awesome. Well, thank you so much for taking the time. I know that you guys are super busy shoot tax season is like right now. You’re getting bombarded by CPAs, and so I appreciate you taking the time. Thank you so much. So you guys, there you have it for the audience and the listeners out there. You know, dial in your numbers. It’s it’s extremely critical. It’s important understand your relationship with money. Go check out Danielle and her team. Danielle, I really appreciate the time, and I’ll do myself. Go to the site, check it out. I’ll follow you on Instagram as well. And guys, I appreciate it. Thank you so much. Until next time, happy injecting.