I regularly wish people had stronger financial health skills.
Don’t even get me started,
When we transition this into the financial health of people’s businesses!
It often seems like there are no standard baselines.
But you deserve to know how important “the numbers” are
For your business growth and health.
Let me take moment to give a massive shoutout to my own accountant too!
I’ve been very lucky to have such a great resource
For all the ways to use and choose my numbers.
It was very intentional in getting there though.
This was not my first, second or even third accountant
I waited until I found someone happy to answer questions,
And who knew the tax law inside out,
Especially as it’s changed year to year.
(And if you’re in California,
And are looking for a Recommendation,
Let me know, because I’m glad to spread the love!
If you’re not in CA, you definitely want someone who
Really understands your state and local tax laws.)
We really need to address the vast difference between
What you personally make from your business…
Versus the revenue that your business brings in.
In fact, this common misunderstanding
Is one of the biggest factors I see for people
Not wanting to invest in advertising and stronger marketing.
I do not hold dear the idea that “It takes money to make money.”
However, I do encourage everyone to embrace the truth that,
It does take resources to run your business.
You need to allow yourself to have
Reasonable, expected, and powerful business operating expenses.
An advertising budget must absolutely be part of your expenses,
At the very least for retargeting.
Please:
Stop leaving money on the table!
It’s 100% a choice,
And I see people walk away from $1000s of dollars regularly.
Bizarre, certainly.
But it becomes sadly understandable,
When new business owners believe they should
Only make profit, with no operating expenses.
I do, on the other hand, strongly believe that every business,
Should run “lean” in their operating expenses,
And not waste one dollar through ignorance.
While it’s so important to forgive yourself,
For investing before having enough info…
You need to course correct and move on as quickly as possible!
That’s why some basic education about advertising
Allows you to save – and conserve! – far more of your budget
But still provides you a healthy budget nonetheless.
You need an advertising budget
As part of your operating expenses,
As long as you know the true returns (ROI) it brings you.
If you need a refresher,
Please revisit the “tracking” email from a week or two ago.
If you’re in a country like the US, UK, Canada or Australia,
Then I highly encourage you to ensure you’ve “incorporated”
Your business into a business entity or structure,
Such as an LLC, S/C Corp, or other Limited company.
Every business needs protections,
And these ensure you’re protected legally,
But even more in terms of tax law and options.
If you seek growth,
Leave the “Sole Proprietorship” behind asap.
Even more though, these type of incorporations mean,
That you are able to deeply feel
The fundamental separation between you and your business.
This is a vital concept philosophically and mentally, certainly!
But it’s even more important financially.
You don’t want to feel like you’re taking “risks”
Just by taking standard, scalable, high-performance decisions.
50 Weeks Of Giving!
As we discuss developing healthy habits, this week we highlight:
Save the Children
Their work extends “in the hardest-to-reach places,
Where it’s toughest to be a child.”
And that also means within the US!
Support their dynamic, fundamental work here.
