Time out!
Can we just talk for a minute… for free?
Firstly and most importantly the answer to that one is a yes.
A resounding and emphatic yes for that matter. But let’s take a step back because I’ve come in half way through the story.
Have you ever had a tradesperson over at your place getting paid by the hour to a job – yes an important job, like a plumbing task or what have you? And when that person asks you a question around your preferences, y’know, kinda engages you in conversation, you feel the tension rising in you because they’re on the clock and “why the heck aren’t you just getting on with it?!” is all you can think. If only that tradie wasn’t on the clock, you’d be able to engage properly, give some real thought to your answers and because of that you’d almost certainly get some better results as a consequence.
Let me take it a step further. With a clearer understanding of what you want from the job your tradie is doing, it is highly likely they would do an even better job than what you (and they) would have settled for. A better job, more satisfaction on both sides of the client/service provider fence, maybe some heartfelt recommendations and who knows a nice fat slice of goodwill (you know, the old “what goes around comes around dynamic” may swing into action – stranger things…).
The point is that clear, relaxed communication sometimes requires a bit of extra time to give and absorb. The trouble is, it’s hard trying to explain to say, your accountant, that your situation is unique and somewhat complicated and you need to get cash flowing in the right direction when he’s charging you by the six-minute increment. Time is money and I’m afraid that not only do many accountants know it – they absolutely love it. And that’s where the love affair with your accountant can end and suddenly it’s all business. Joyless transactional and ultimately not very satisfying.
And I’m out!
Real value through freedom of speech? I’m in!
So one of the key principles on which we as a team, built this business was “real and quantifiable value” being offered to our clients. Sounds suspiciously corporate so put another way: “we aim for the tax savings we deliver to our clients to exceed the service fee we collect.” Simple and smiles all round. To do that we need to understand the circumstances, the pressures, the business, everything. And as I explained when talking about our tradie, I simply can’t do that if my client clams up because they are getting charged for every minute we sit across from each other or spend time chatting on the phone.
Death to timesheets!
Perhaps not all of them because some are absolutely necessary in other businesses but to the ones in our industry I say, “die scum!” Sounds very harsh doesn’t it? Harsh but fair. Timesheets and more pointedly, billing according to the timesheets killed trust, potential, reputations (both individual and corporate), businesses, a sense of enterprise, the Aussie “fair go”, Phar Lap – the list goes on.
As far as we here at Inspire CA are concerned, we are here to listen carefully and carefully apply our skills expertise and enthusiasm to the success and ongoing success of your business. In short, that means when you talk, we listen… for free!
But don’t take our word for it. Why don’t you call or contact us and experience what a timesheet free, obligation free chat could do for your business and test drive a good listener (AKA Inspire CA accountant) today.
Ep. 27 How Disrupting His Industry Saw Ben Walker Become an Award-Winning Entrepreneur
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What’s Your One Number to Focus on in Your Business?
Adapted from Gary Keller’s recent book, “The ONE Thing”, what is the ONE number you could focus on, such that by improving it everything else would be easier or unnecessary?
What we want to identify here is the one number in your business that will have a roll on effect to other aspects of your business making them easier or unnecessary.
Watch this Article
And to test your One Number, it needs to be a lead into other numbers. So what I mean by this for instance is that Revenue is made up of many inputs: existing clients, retention rate, leads, conversion rate, average spend, number of transactions per client etc. And you could even break these numbers down into more leading numbers.
Your One Number is likely to change every so often too, so don’t get caught up on it. At the same time, if you’ve picked a number that is having a fantastic effect on the business don’t just stop monitoring it.
Continental Airlines – the Short Version
Continental Airlines was a struggling airline in the early 2000’s when low cost airlines were popping up.
To innovate, they switched their One Number from “$ per air mile” to “% of on time arrivals” – and because the budget airlines weren’t focused on this, Continental’s business went through the roof!
But once the business was sold and new management came on board, they switched their One Number back – and that is why they are no longer around…
So the lesson here is to make sure you don’t stop measuring a good thing!
Get the Whole Team Involved
Your ONE Numbers will be even more effective if it is something that everyone in your business can contribute to. Let’s take ‘# days between last incident’ for accidents in the work place. Everyone can be on board this, and it would reduce administration time, costs for leave, insurances etc – but everyone can assist.
Examples For Your One Number
Customer Focused
- Average days turnaround time for projects
- % of on time arrivals (for airlines – see Continental Airlines)
- Completion rate of your program / course
- # days or hours from order to delivery
If you’re short on Leads
- # of calls each day
- # of meetings with clients week
- # of speaking engagements each month
If your cash flow is tight
- Reducing # days between debtor follow ups
- % of suppliers that are on credit terms
- % of customers who pay up front
- # of stock turns each month
Keep Accountable Once You’ve Got Your One Number
After you’ve decided on your One Number, be sure you document it and keep score of it visually – somewhere that you and the team responsible will see it every single day.
If you don’t do this, you’re much more likely to let the goal fizzle out.
For instance, you could simply write it on butchers paper and stick it to the back of your office door. Or, if you’ve got some crafty talent in the office, get them to put together a fun, themed scoreboard – especially if it’s something that can create some competitive fun.
Opportunities can’t tell the time
Just be ready to say “yes”!
Opportunities are stupid. I don’t mean they are irritating to have around or generally score badly in basic arithmetic evaluations. I mean they have no sense: no sense of timing nor sense of occasion. They just appear – sometimes only fleetingly and oftentimes, never to return.
I was at the dawn of my career. Freshly qualified and ready to unleash my ambitions on a startled world. First I would learn my trade with a “big 4” company and then prove myself in a smaller business under the watchful eye of a trusted mentor. Of course from there, life would just get simpler and more organised: grow the career, raise a family, do well with money… blah blah blah and so it goes. Easy, right?
Opportunity knocks…
Wrong. I’ll use a knock-knock joke to illustrate my point and yes, it’s a true story.
Knock-knock.
Who’s there?
Opportunity!
Really? But it’s too soon, Christmas is right around the corner, this isn’t a good time… can you come back in, I don’t know, March?
This actually happened to me and while the details behind my (what HR types used to describe as a) “career event” are probably a blog for another day, the point is that I saw an opportunity – and it saw me.
Lesson one: the time is right whenever the big idea shows up with a bunch of friends called “a lightbulb moment”, “ambition” and “a moment of clarity”. (Lesson 1a – they rarely if ever bring a how-to guide.)
The truth is that the moment of truth, when I realised I had learned all I could from my colleague and mentor, arrived much sooner than expected. And yes the timing was a little awkward. I delivered the news right after the Christmas holidays that I would be moving on to create, establish and live the dream. A new dream. One that engendered a lot more risk, stress and demanded belief in myself, my values and my trusted inner circle. Oh and a laptop, a borrowed printer and that big idea.
What’s the big idea?
By now a lot of people already know that I was at first confused by and then dead against the idea of charging clients according to the timesheet and stopwatch. I preferred measuring success and therefore our fees on a merit-based system of saving clients’ tax dollars first, then basing our fees on their level of satisfaction.
To me and later to my clients, this became a jarringly disruptive offer. One that was welcomed with open arms and that most genuine of affirmations, “of course, why hasn’t this been done before.” Perhaps it had, somewhere, in a different form but the point is, while there may never be a perfect time to take the plunge, it’s better than whiling away years of your life asking “if not now, then when?” Or worse: “If only…”
Lesson two: Perfect timing is a retrospective quantity – you’ll only know for sure after the event. To be clear, I’m not advocating reckless behaviour. I’m just saying that when your idea, your opportunity comes knocking, go out and take action, don’t be left behind on the sidelines taking in the action. That would be a mistake.
And let’s face it, there are enough avoidable mistakes to go around for everyone but some of the avoidable ones are around tax. Find someone qualified who you can trust and test drive and accountant today. We may be able to help you out with that.
Ep. 27 How Disrupting His Industry Saw Ben Walker Become an Award-Winning Entrepreneur
Paying too much Tax? How to know and what to do about it.When we go to bed at night, we dream of a world where families have the freedom to of choice of what they do with their time, to have the freedom to put family first, and to be able to create a beautiful business and family that they’re absolutely proud of. Our Inspire TV channel, which you guys have taken the effort to sit in on and attend today is our means to educate the young family and small business community of Brisbane on all the different strategies and ways we can help you build that business that gives you the freedom to put family first. That’s our introduction to today’s topic and also today’s episode of Inspired TV. The very specific topic we have is about paying too much tax. The first guide is: How do you know if you are paying too much tax? I am sure we all, in business, may have that feeling or that inkling and the most important next step is to find out what the hell to do about it. We think that this is how an accounting firm should run: Imagine yourself as a business owner driving on the highway and then you’re in your vehicle. As the owner of your business or that vehicle, you’re in the driver seat. For an accountant to be able to do tax returns and financials, they’ll be looking in the rear vision mirror while you’re driving down the highway. Now if you were only to focus on this historic perspective, how far would you get? Not very far we think. That’s what makes Inspire different. We have that perspective about what’s going on in the past and the future – the bigger picture; looking through the front windscreen, for us to act as your co-pilot. We don’t want to break any laws or end up in jail but there’s definitely opportunity out there to implement some of these strategies we’re going to talk about today, which do end up saving many of our clients tens of thousands, if not hundreds of thousands over the years. In fact, this is exactly how we do it:
How do you find out your current tax rate, or what you might be paying?It’s a little bit complex to calculate it but you just add up all the, not the next net tax payable or refundable for the year, but the actual tax on your notice of assessment or your company’s notice of assessment and work out as a percentage of your total profit how much tax did you pay. What should someone be looking for out of their accountant nowadays?An open channel of communication. A couple of the key things that people usually get wrong and that we identify is, “Hey, had you gone and seen your accountant before you bought a vehicle or something like that, you could of saved five grand in GST or you could of structured it better so it’s less administration headache. Your loan could‘ve been different.” Basically, while there’s a tax implication of keeping close to your accountant, there’s also other cash flow benefits. Making sure you’re getting the right advice when you’re making key business decisions. You should definitely look out for someone who just keeps that open channel of communication and work with an accountant who doesn’t mind the odd phone call or an email – or actually gives you a call. One of the reasons people don’t call their accountant is because they think they’re going to get charged for it. Is that standard across the industry or is that an old school indicator that you might be with one of those the dinosaur accountants? What should we be looking for?The older business model is to start the clock every time the accountant thinks about you or talks to you and bills you by the hour. That means that if you do ring them up and ask them, “Hey, what entity should I buy a car in?” That you probably would get a bill for a couple hundred bucks to follow that call. That’s the norm of an old school accountant. With this sort of fresh breed of accountant, you see more value based models – a fixed fee or upfront proposal that lets you know what you’re getting yourself into before you accept. You know the … How much communication and touch points you have with them throughout the year and working with us, for instance, you’re able to call us and we’re not going to charge you unless you’re wanting some advice on a business merger or something like that. That’s obviously something we can’t do over the phone. Yeah. If you ring us and said, “Hey, I’m buying a car. How do I buy it?” That’s a call we won’t charge you for. What is a business structure?This is a massive, massive point. That if you don’t use a company or trust but you run a business, and this is one that’s very close to our heart. We love business structures and working with clients to map out the best and most suitable option for them. If you don’t use a company or trust, it only leaves you as either a sole trader or you’re a partnership. Both of those straight off the bat have a massive risk for your trading activities. You could get sued, and that could bring in your family house and your family assets to pay for that lawsuit. Also using a company or trust gives you flexibility of who pays the tax from your business profits. That could be your husband or your wife – but if you’re a sole trader you pay the tax on the lot, you don’t have a choice of spreading it out. |
Hiring your first employee – 6 Common Questions
Hiring your first employee in your business can be a very daunting task if you haven’t done it before.
There’s all sorts of worries that could be going through your head:
- How do I do the Payroll each week or fortnight?
- What do I need to do for Superannuation?
- What is WorkCover, and what I need to do for it?
- Do I need to let the ATO know anything?
- How do I know when I can afford my first employee?
- How should I cover myself from a legal perspective so my first employee cannot come after my house?
So we’ve put together this article which answers some very common questions when it comes to hiring your first employee.
Before we get into it though, we’ve found that the use of accounting software Xero, is a massive time saver in the process of hiring your first employee.
Xero integrates directly with the ATO – no paper forms need to be lodged, and it just makes light work of the payroll process moving forward.
If you enjoy the article, or have a question – please use the comments section below to let us know!
1. How do I do the Payroll each week or fortnight?
Payroll needs to be done each week, fortnight or month – depending on how often you’ve agreed to pay your new team member.
Each time this happens, you need to work out how much to pay them and also how much tax and superannuation to take out and set aside.
It can be daunting doing this, but we recommend you use accounting software to make this a piece of cake.
The one we recommend is Xero – and the payroll section of this is intuitively set up.
First you need to add your employee into the system, following the prompts for everything Xero needs to do so.
And then you can start processing your payroll.
We recommend getting the help of your bookkeeper or accountant who’s helped other business owners do the same in Xero – or even get them to train you on it if you’re going to be doing it yourself.
2. What do I need to do for Superannuation when hiring your first employee?
Superannuation is commonly referred as forced savings for retirement.
It’s a great strategy for business owners to boost their personal wealth (and a great tax environment if used well too) – so we love it here at Inspire!
You also have to pay superannuation for your team members when they work for you – so you’re contributing to their retirement.
The current rate for this is 9.5% of their gross wages, and needs to be paid to their super fund each quarter.
For instance, the superannuation on wages paid to the team member between 1 September 2016 and 31 December 2016 will be due on the 28 January 2017 (note that this is 28 days after the end of a calendar quarter).
New rules introcuded in 2016 by the ATO have also meant that businesses (regardless of size) need to use their new ‘SuperStream’ initiative.
SuperStream’s purpose is to make it easier for businesses to report and pay super for their employees.
Again, Xero makes complying with this nice and easy.
If you have it set up within Xero, and are using Xero for payroll, it actually does your SuperStream reporting automatically, and direct debits the amount you owe from the bank account you tell it to!
More information on SuperStream and a details on how to do this can be found here.
3. What is WorkCover, and what I need to do for it?
In most states in Australia, you’ll need to sign up for that state’s WorkCover or WorkSafe when hiring your first employee.
WorkCover is a form of insurance that is meant to protect employees (and you as the business owner) for accidents at work.
This is a mandatory thing in most states, not an option – and there’s penalties if it isn’t in place.
Say your team member has an accident at work, the purpose of the insurance is that it covers any medical costs of the team member, and also any loss to your business as a result (even paying that team members sick leave instead of the business copping it!!).
The process for signing up is fairly straight forward and can be done online on their websites:
– QLD – WorkCover Queensland – https://www.worksafe.qld.gov.au/
– NSW – SafeWork NSW – https://www.safework.nsw.gov.au/
– VIC – WorkSafe VIC – http://www.worksafe.vic.gov.au/
– TAS – WorkCover Tasmania – http://www.workcover.tas.gov.au/
– ACT – WorkSafe ACT – http://www.worksafe.act.gov.au/health_safety
– WA – WorkCover WA – http://www.workcover.wa.gov.au/
– SA – ReturntoWorkSA – https://www.rtwsa.com/
– NT – WorkSafe NT – http://www.worksafe.nt.gov.au/Pages/default.aspx
4. Do I need to let the ATO know anything when hiring your first employee?
When you hire your first employee, you need to register for what’s called “PAYG Withholding” or “Pay As You Go Withholding”.
This is the ATO’s words for the tax that you need to take out from the salary or wages that you pay your new team member.
Taking this tax out and setting it aside to pay the ATO is a non-negotiable.
Give your accountant a call and they can walk you through the process of registering for this PAYG Withholding or do it on your behalf. It’s a simple process either online or a quick phone call to the ATO.
You’ll also need to let the ATO know that you’ve hired someone.
The form to use to let them know is a “Tax File Number declaration” – but this can be done online through Xero’s payroll software, another reason to use it!
5. How do I know when I can afford my first employee?
In the first few months of starting in business, I found myself with way too much to do, wearing so many hats in the business.
We’d grown about 10x in revenue in the first four months.
Great problem to have! But I wasn’t doing well from time management or a work life balance perspective.
I navigated my way through that time, and now have helped many other business owners do the same too.
One of the questions that crossed my mind during that time is how do I pay for them?
My recommendation is to make sure you have enough cash set aside that you can pay for the first 3 months of salary with no additional revenue.
Also I strongly encourage you to expect there will be quite a few hours, even days training the new team member, so you need to see this coming.
6. How should I cover myself from a legal perspective so my first employee cannot come after my house?
I recommend that you do two things to protect yourself here when hiring your first employee:
1. Get a watertight employment agreement; and
2. Make sure you’re set up in a Business Structure that protects the risks in your business (like employees) from your personal wealth and assets.
Make sure you use Employment Agreements
A mistake I see a lot of business owners make (even on advice to get one) is not having an employment agreement for every single one of their team.
The employment agreement can come from a good lawyer, or from software that provides this service, like Enable HR (we use this internally).
And a well written agreement sets expectations on both sides from day one, starting from when hiring your first employee.
They should cover:
– How much and how often the team member gets paid
– How much superannuation they’re going to get paid
– How much leave they get each year
– How much notice either party needs to give to terminate the agreement (and what conditions this needs to be)
– A confirmation that the team member connect take any of your clients, team members, intellectual property etc when they leave
And many other things (this list is not exhaustive, but gives you an idea!).
Get the right Business Structure
Another common problem I see is that business owners haven’t paid attention to their business structure when hiring your first employee.
A good business structure should protect your personal wealth and assets from the risks of your business.
If you’re trading in the business structure of a ‘Sole Trader’, you’re playing with fire. If your business is sued, then your personal assets are also included in this.
We recommend looking at companies or trusts to run your business. If they’re set up properly, then they will protect you from most threats!
If you enjoy the article, or have a question – please use the comments section below to let us know!
Now for the three quick educational stories about Parkinson’s Law, The Size of Your Dinner Plate, & Toilet Paper.
They’re three lessons you won’t forget that reinforce why becoming a Cash Rich Business not only is a good thing, but it works because it works WITH human nature not against it.
Perhaps you, like me, in my previous businesses, would look into your bank account to see how much sales had accumulated. Then I’d see on my desk a pile of bills that I could need to be paid, so I’d extract from the sales to pay these expenses.
Because that’s what the formula says to do.
After that, I would look for the leftover. The profit. But unfortunately, there was barely ever a leftover.
There was the only leftover when I had a big moment like selling a business, or a huge customer coming in. Then there’d finally be some profit, momentarily, until my expenses would expand to fill it.
There a principle called Parkinson’s law.
It states: When a resource is made available, we will use it up. All of it.
For example, if we are given four weeks to do a task, it will take four weeks. If we are given 4 hours to do a task, it will take 4 hours to do.
While this Accounting formula is very logical, it doesn’t account for Parkinson’s Law.
Changes in Human Behaviour is very hard. Working with Human Behaviour is easier.
This relates to plate servings, which describes our behaviour to see what’s on the plate and consume it all.
The same principle applies when it comes to cash and profit, our human behaviour is to see what’s on the plate and consume it all. Or, see what’s in the account and consume it all, until there’s nothing left.
I want to propose a NEW formula. Mathematically, it’s the same formula, but according to Human behaviour, which you’ve now learned, it’s radically different!
What if from today every time you made a sale, you FIRST took out a portion of profit and put that away.
The Bottom Line series – 4. Commonly asked questions Building a Cash Rich Business
Commonly asked questions about Building a Cash Rich Business:
I built up some debt over the years trying to keep things afloat. How do I get out of that debt while still building my War Chest?
At the Cash Rich Business workshop, we’ll give you a plan to rapidly pay down your debt that works WITH your human behaviours not against it.
What if after making a contribution to my war chest, there is not enough money leftover to cover expenses?
This is your business screaming out to you saying that you can’t afford these things. At the cash-rich business workshop, we’ll do an assessment on your business so you know exactly how much more or less you should be paying in 4 areas.
- How much more (or less) you should be paying yourself as Profit.
- How much more (or less) you should be paying yourself as an Owner’s Salary.
- How much more (or less) you should be paying in Tax.
- How much more (or less) you should be paying as Operating Expenses.
In fact, in the Cash Rich Business workshop, you’ll walk away knowing exactly how every dollar coming in should be distributed to these four areas (Profit, Owners Pay, Tax & Expenses) in order to become a Cash Rich Business.
Which brings me to the next question…
But I’m just starting out in Business, is this Cash Rich Business methodology still appropriate for me?
Which I’ll answer with another question, what do you think would be easier, to do things the old way. The Sales minus Expenses = Profit as leftovers way. Or would you like to start with your ideal allocation from day 1?
If you’re not in a position to come to the Workshop but you love what we’re about, I’d love an email to hello@inspireca.com with feedback on today’s session.
Now that’s the logical part out of the way. That all makes sense.
What would happen now is your expenses would become a smaller plate. We’d have less available. And we could continue our original behaviour of consuming it all.
It would force us to be more innovative. It would force us to return to our entrepreneurial roots, and we’d figure out how to get it all done with fewer expenses.
If we take our profit first, we can use Parkinson’s law for good, instead of for bad. All we need to do is spend less than we make! But we don’t do it… We have to exploit our natural behaviour. We have to leverage how we naturally behave.
Starting today, put your profit first, always.
The benefits of becoming a Cash Rich Business:
1. The War Chest is a rainy day fund, a backup when storms hit but this fund is specifically for those really bad storms. It is not something to be accessed unless it is an emergency. When storms hit it can trigger a panic of trying to scrape together money that belongs to another important part of the business this is called stealing from Peter to pay Paul, which NEVER works out in the long run. This is why setting up a War Chest is so important so you have enough funds to go around!
2. You will adjust the spending and build a healthy business using the money leftover AFTER you withdraw the War Chest percentage.
3. The Cash Rich Business model is a simple monitoring system. Once you have an established habit of donating to the War Chest for a year or so, you can watch the trend of the Equity Distribution every quarter. If the 50% you take from the war chest every quarter is growing, so is your business. If the drawing is flat or going down. So is your business. You don’t need an Accountant to tell you that!
4. A company that shows a consistent profit, quarter after quarter is much more valuable to a prospective buyer since when you sell your company, that’s when you make some REAL money.
5. Being a Cash Rich Business is a great way to get access to major lending. The more you have in your War Chest, the more you have willing to lend. Good luck trying to get a bank line of credit if you have no War Chest. But as the reserves in the War Chest grow, the bank lines of credit will increase and so will others.
It’s simple, and it works.
Here are the steps to take –
First –
Research financial trends to find out what industry leaders make as profits. Calculate industry profits as a percentage of revenue. e.g. I surveyed many Accounting firms and discovered that 30% is a healthy profit percentage and is achievable amongst the top performing companies in our industry.
30% is our target War Chest percentage.
That being said, 30% may be too much for a young business.
So initially, your company may be best served by having 5% of revenue going to the War Chest.
Then we might look at adjusting contributions to 8% in the following quarter. And 11% in the next, and so on.
Continue to ratchet up the War Chest deposits slowly, quarter by quarter until you are at the optimal amount determined by your research.
Second –
Establish your War Chest, so it’s not easy to transfer money out of your account. We recommend a separate account, with a separate bank to your usual operating account.
Most business owners have one account where everything goes in, and everything goes out. In this case, if too much goes out, and not enough comes in, you run out of money.
Third –
Immediately begin transferring your starting War Chest Percentage from your very next sale. And I do mean EVERY sale into your War Chest. It’s not about the money that goes there just yet; it’s about building the habit of paying your War Chest.
Fourth –
Use the remaining percentage of money to run your company and pay your salary. This way, you’re covered. We encourage you to celebrate and enjoy that money. Even if it’s just $50, you never have to feel guilty for spending it. The best part is, as you get better at putting money away, you get better at paying yourself!
Fifth –
Distribute 50% of the War Chest balance to equity owners on a quarterly basis and leave the remaining amount for back up.
Logic vs Human Behaviour
I was talking to a good friend of mine recently who I know regularly donates blood.
I know that because he posts on Facebook whenever he does it. So yesterday, I asked him, how much blood have you donated?
He said about 40 L.
I said holy crap, the human body only has 5 L’s Chris!
He quickly said “I usually give about half a litre every time.”
Clearly it would be impossible for Chris to give 40 L in one sitting. He would be a gonner.
Even if Chris only donated 1 / 3 of his blood, say 1.5L, in one sitting he might suffer some tough consequences.
But since he donated half a litre of blood per visit, his body hardly notices it and he can donate several times a year without missing it.
After years of deposits to the blood bank his donations have piled up, and now he’s donated a stunning 40 L or 8 x what he has in his body right now.
The moral of the story is this:
Cash is the lifeblood of your business.
Shouldn’t you treat your money like the blood of your business?
Just like blood is often required in a medical emergency, a business in financial trouble often requires an infusion of capital.
You never know when a patient will need a donation of blood, but with a pool of easily accessible blood reserves, the chance of survival dramatically increases.
Sometimes your business problems are predictable. Other times they will blindside you.
With a source of easily accessible cash the chance for business survival dramatically increases.
Do you see the value in regularly donating business cash flow to your reserves?
The best system is to become a Cash Rich Business.
What do I mean by this?
Every time money comes in to your business (and I mean every time) automatically transfer a percentage of the money into a separate account.
Just like with half a Litre of blood, a healthy business will hardly feel the withdrawal. In fact if you do it first you will never miss it. I like to call this reserve a Profit War Chest, just like Pirates of the Caribbean and a parrot on your shoulder.
Creating a powerful culture worth being a part of begins with you!
| I believe we each have a responsibility as individuals to be the culture that we want to see around us.For instance, if we walk into work and we’re grumpy and have had a bad morning and just happen to get up on the wrong side of the bed, we are creating a culture around us that is either negatively or positively affect those that we come in contact with.
When you smile at someone, you attract a smile back. If you’re grumpy at someone, people are just going to react to that and be grumpy back. Who wants to live like that? That’s stupid. Just my two cents. So here’s my challenge to you…
If we approach situations and people to see the true nature of who they are inside and call that out of them even despite what they do, despite if they yell at you, if they scream at you, if they just are rude or whatever, going back to culture, it’s our responsibility to create the culture that we want around us. If you respond in love to someone that’s reacting in a negative way, you have automatically put water on the fire, because they expect for you to be rude back, but you, again, have the responsibility to create that culture.
Ask yourselves these questions:
If you can see that potential in them and call it out, they are going to radically change the world and you’re going to be a part of their life. They’re going to owe it to you. They want to owe it to you because you’ve been able to bring something out of them that is just incredible and they didn’t realize maybe that it was in them. Bless you xo
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