WEBVTT 00:00:00.000 --> 00:00:01.840 I spent four years in the United States Marine 00:00:01.840 --> 00:00:04.400 Corps. I was a sergeant. Did two years over including 00:00:04.400 --> 00:00:06.860 a combat tour in Vietnam. One of the things you 00:00:06.860 --> 00:00:09.939 learn in MCO school, the Marine Corps is mission, 00:00:10.359 --> 00:00:13.980 men, self. Regardless of what it takes, that's 00:00:13.980 --> 00:00:17.039 the first thing you do. Everybody jumps for somebody 00:00:17.039 --> 00:00:18.899 else or, you know, you either jump for them or 00:00:18.899 --> 00:00:21.140 they jump for you. Well, that doesn't translate 00:00:21.140 --> 00:00:23.859 well into business. Thankfully, my wife was very 00:00:23.859 --> 00:00:25.899 much of a people person. I married her while 00:00:25.899 --> 00:00:28.809 I was in the Corps and she... broke me as some 00:00:28.809 --> 00:00:31.269 of that over the years. Right? That's funny. 00:00:31.670 --> 00:00:33.950 Small businesses very seldom get audited to start 00:00:33.950 --> 00:00:36.490 with. S corporations are audited less than 1 00:00:36.490 --> 00:00:39.950 % of the time. Okay. You have to get over several 00:00:39.950 --> 00:00:42.030 million dollars before you really get on their 00:00:42.030 --> 00:00:45.149 radar. So the chance of you being audited are 00:00:45.149 --> 00:00:47.909 slim, but that doesn't mean it won't happen. 00:00:48.210 --> 00:00:51.049 If you can't do it yourself, hire somebody that 00:00:51.049 --> 00:00:54.310 can. So you have the detailed records of what's 00:00:54.310 --> 00:00:57.320 happening because That's your guide to whether 00:00:57.320 --> 00:01:26.489 you're successful or not. download the episode 00:01:26.489 --> 00:01:28.450 and if you're watching on YouTube, you know what 00:01:28.450 --> 00:01:31.670 to do. Hit that like button, subscribe and turn 00:01:31.670 --> 00:01:35.090 on those notifications so you never miss an episode. 00:01:35.250 --> 00:01:39.670 And as we always say, let's make thriving our 00:01:39.670 --> 00:01:56.849 new normal. So today we're diving into money, 00:01:56.969 --> 00:01:59.689 business and IRS secrets with none other than 00:01:59.689 --> 00:02:03.409 Charles J. Reed, CPA, IRS insider and veteran 00:02:03.409 --> 00:02:05.489 entrepreneur with 50 plus years of financial 00:02:05.489 --> 00:02:08.569 expertise, 400 plus media features and a track 00:02:08.569 --> 00:02:11.330 record of helping business dodge IRS penalties 00:02:11.330 --> 00:02:14.689 and master payroll. Charles is here to drop a 00:02:14.689 --> 00:02:16.949 game changing insights. And if you're an entrepreneur 00:02:16.949 --> 00:02:19.090 looking to keep more money in your pocket and 00:02:19.090 --> 00:02:21.250 avoid causing mistakes, this episode is for you. 00:02:21.330 --> 00:02:23.860 So let's just get into it. avoid some costs and 00:02:23.860 --> 00:02:26.639 mistakes, and build some wealth with Charles 00:02:26.639 --> 00:02:28.960 Reed. Welcome to the podcast. How are you doing 00:02:28.960 --> 00:02:31.099 today, Charles? Michael, excellent. Thank you 00:02:31.099 --> 00:02:32.759 for having me. It's a pleasure to be with you. 00:02:32.919 --> 00:02:35.120 Yes, yes, yes. I'm so glad you're here because 00:02:35.120 --> 00:02:38.599 this is, or as we're recording, this is tax season. 00:02:38.719 --> 00:02:41.280 It is. So it's good to have you on and I'm so 00:02:41.280 --> 00:02:45.180 glad, you know, especially for beginning entrepreneurs, 00:02:45.539 --> 00:02:49.379 you know, new business owners. taxes, what taxes 00:02:49.379 --> 00:02:52.120 scare for people anyway, and especially for the 00:02:52.120 --> 00:02:54.300 new business owners. So we're going to dive into 00:02:54.300 --> 00:02:57.080 it before we get into it. You were in the military 00:02:57.080 --> 00:03:01.259 and how that, how did that experience shape like 00:03:01.259 --> 00:03:04.120 your world of leadership and business? That's 00:03:04.120 --> 00:03:06.219 a, that's a very interesting question. I spent 00:03:06.219 --> 00:03:07.819 four years in the United States Marine Corps. 00:03:07.919 --> 00:03:10.840 I was a Sergeant at the end did two years including 00:03:10.840 --> 00:03:13.340 a combat tour in Vietnam. One of the things you 00:03:13.340 --> 00:03:16.400 learned in NCO school, the Marine Corps is mission 00:03:16.400 --> 00:03:20.120 men. Self you accomplish the mission regardless 00:03:20.120 --> 00:03:22.680 of what it takes. That's the first thing you 00:03:22.680 --> 00:03:25.580 do You accomplish the mission then you take care 00:03:25.580 --> 00:03:29.240 of you then you take care of yourself That translates 00:03:29.240 --> 00:03:32.460 very well to business get the job done Whatever 00:03:32.460 --> 00:03:35.080 it is. Our job is to provide perfect payroll 00:03:35.080 --> 00:03:39.039 on time every time to our clients We bend over 00:03:39.039 --> 00:03:42.560 backwards to do that Whatever it takes we put 00:03:42.560 --> 00:03:46.599 into it then I take care of my staff, my people, 00:03:46.919 --> 00:03:50.800 my clients. All that comes before me. If somebody 00:03:50.800 --> 00:03:53.259 doesn't get paid because we're short of cash 00:03:53.259 --> 00:03:55.199 and in the beginning, every entrepreneur is, 00:03:55.259 --> 00:03:59.360 it's me. It's not my staff. If somebody needs 00:03:59.360 --> 00:04:01.780 time off and I have to work to make up for it, 00:04:01.780 --> 00:04:05.180 if they need it, they get it and I make up the 00:04:05.180 --> 00:04:08.439 difference. Okay. It's mission, men, self, and 00:04:08.439 --> 00:04:10.900 that translates very, very well to business. 00:04:11.139 --> 00:04:13.599 Now, there are things that don't translate well. 00:04:13.639 --> 00:04:15.560 The Marine Corps, like all military, is very 00:04:15.560 --> 00:04:18.319 hierarchical. Everybody jumps for somebody else 00:04:18.319 --> 00:04:20.040 or, you know, we either jump for them or they 00:04:20.040 --> 00:04:22.379 jump for you. Well, that doesn't translate well 00:04:22.379 --> 00:04:25.019 into business. Thankfully, my wife was very much 00:04:25.019 --> 00:04:27.439 of a people person. No, not at all. I married 00:04:27.439 --> 00:04:30.860 her while I was in the Corps and she broke me 00:04:30.860 --> 00:04:33.319 of some of that over the years. Right. That's 00:04:33.319 --> 00:04:36.079 funny. Yeah, you're right. So like, you know, 00:04:36.180 --> 00:04:39.439 you take from the military what you did learn 00:04:39.439 --> 00:04:42.959 and you applied it to your business and to get 00:04:42.959 --> 00:04:44.949 payroll. your business. And we'll talk about 00:04:44.949 --> 00:04:48.670 that later. With 50 plus years, you know, experience 00:04:48.670 --> 00:04:52.430 here, let's talk about the let's just start start 00:04:52.430 --> 00:04:55.649 off with IRS, you know, what's one of the things 00:04:55.649 --> 00:04:57.930 that business owners, beginning business owners 00:04:57.930 --> 00:05:02.589 should know about taxes and knowing about the 00:05:02.589 --> 00:05:05.490 IRS? Okay, there's the most important thing. 00:05:06.050 --> 00:05:10.180 Most important thing is their people. Okay. They're 00:05:10.180 --> 00:05:12.480 mothers, fathers, brothers, sisters, sons, daughters. 00:05:12.920 --> 00:05:15.459 They're people, but they are civil servants. 00:05:15.639 --> 00:05:18.139 They don't have the same motivation that an entrepreneur 00:05:18.139 --> 00:05:22.199 has. They put in their 40 hours a week, get their 00:05:22.199 --> 00:05:25.939 30 days vacation, retire in 30 years. You can't 00:05:25.939 --> 00:05:29.019 fire them effectively. They don't have the same 00:05:29.019 --> 00:05:31.560 motivation. So the first thing you have to do 00:05:31.560 --> 00:05:34.279 is treat them like people. They're not, for the 00:05:34.279 --> 00:05:36.569 most part, They're good people. They're not nasty. 00:05:36.709 --> 00:05:38.490 They're not vindictive. They're not vicious. 00:05:38.870 --> 00:05:41.490 There's a few shit You've got one in your family 00:05:41.490 --> 00:05:43.610 like that. So, you know, it's nothing that you 00:05:43.610 --> 00:05:49.250 don't realize right The next thing is human Yeah, 00:05:49.689 --> 00:05:53.730 the next thing is the IRS makes mistakes their 00:05:53.730 --> 00:05:56.910 systems are old and antiquated They don't talk 00:05:56.910 --> 00:05:59.370 to each other. The silos are in different spots. 00:05:59.709 --> 00:06:02.089 They'll tell you that they make millions of mistakes 00:06:02.089 --> 00:06:04.779 a year So the fact that you get a nasty gram 00:06:04.779 --> 00:06:11.279 from them doesn't mean it's true. We abate many, 00:06:11.279 --> 00:06:14.220 many mistakes every year. Pre -COVID, the IRS 00:06:14.220 --> 00:06:18.379 issued $13 billion in employment tax penalties. 00:06:19.279 --> 00:06:21.980 Billions of dollars were abated because they 00:06:21.980 --> 00:06:28.199 were wrong. Dealing with the IRS is appeal, appeal, 00:06:28.259 --> 00:06:30.139 appeal, appeal, appeal, appeal, keep talking 00:06:30.139 --> 00:06:32.100 to people because sooner or later you'll probably 00:06:32.100 --> 00:06:35.480 find somebody that'll say, yeah, you're right. 00:06:36.019 --> 00:06:39.240 And it's over. So don't ever give up. Understand 00:06:39.240 --> 00:06:41.079 the first letter, you get a letter from the IRS 00:06:41.079 --> 00:06:42.879 saying you owe this money. You send them a letter 00:06:42.879 --> 00:06:45.980 back saying, I don't know it. They don't read 00:06:45.980 --> 00:06:48.620 it. They send you back a form letter saying, 00:06:48.680 --> 00:06:52.100 no, we're not going to evade anything. That's 00:06:52.100 --> 00:06:54.620 the first thing. It's only on their third letter 00:06:54.620 --> 00:06:57.339 does somebody actually look at it. And it may 00:06:57.339 --> 00:07:00.199 take multiple levels of appeals to get somebody 00:07:00.199 --> 00:07:03.379 to actually talk to you about it and get into 00:07:03.379 --> 00:07:06.360 it and get into the details. If you get into 00:07:06.360 --> 00:07:09.120 collections, they don't care whether you owe 00:07:09.120 --> 00:07:11.540 the money or not. As far as they're concerned, 00:07:11.639 --> 00:07:13.639 you owe it. They're never going to talk about 00:07:13.639 --> 00:07:17.079 the underlying facts. So once you get into collections, 00:07:17.420 --> 00:07:20.560 you have to go back to appeals or go to tax court 00:07:20.560 --> 00:07:23.329 or district court or whatever. Because collections 00:07:23.329 --> 00:07:27.689 is a collections agency and doesn't care Now 00:07:27.689 --> 00:07:32.230 one very important thing to remember the IRS 00:07:32.230 --> 00:07:35.810 cannot penalize you for a simple mistake only 00:07:35.810 --> 00:07:39.810 for gross negligence Okay. Now the taxes of course 00:07:39.810 --> 00:07:41.970 if you make a mistake and the taxes are on you 00:07:41.970 --> 00:07:46.670 owe the taxes, but the penalties on that Are 00:07:46.670 --> 00:07:49.470 only applicable if you were grossly negligent 00:07:49.470 --> 00:07:52.300 the problem of course lies in who? determines 00:07:52.300 --> 00:07:56.240 gross negligence. The IRS thinks they do. In 00:07:56.240 --> 00:08:00.720 fact, the court determines gross negligence. 00:08:01.100 --> 00:08:03.240 So you appeal it, you appeal it, you appeal it, 00:08:03.300 --> 00:08:05.220 you take it to the tax court if you need be, 00:08:05.420 --> 00:08:07.759 and the judge may look at it and go, nah, that's 00:08:07.759 --> 00:08:09.439 not gross negligence. It's a simple mistake, 00:08:09.720 --> 00:08:12.279 happens all the time. And if you go to tax court, 00:08:12.500 --> 00:08:16.839 95 % of all tax court cases are settled pre -court. 00:08:17.660 --> 00:08:19.839 They'll make you an offer no matter what, I promise 00:08:19.839 --> 00:08:22.709 you. What's an example of a gross negligence? 00:08:22.930 --> 00:08:26.310 You just don't do it. That's gross negligence. 00:08:27.050 --> 00:08:31.889 Now, if you sent it off and it didn't get there, 00:08:32.970 --> 00:08:36.009 that happens. That's not your fault. The post 00:08:36.009 --> 00:08:38.370 office didn't deliver it or didn't deliver it 00:08:38.370 --> 00:08:41.210 timely or the dog shredded it or whatever. Those 00:08:41.210 --> 00:08:44.610 are mistakes. Gross negligence is not doing something 00:08:44.610 --> 00:08:49.350 deliberately miscalculating. deliberately misrepresenting, 00:08:49.450 --> 00:08:52.389 deliberately not doing something. But if you 00:08:52.389 --> 00:08:54.830 make a mistake, if you added it wrong, if you 00:08:54.830 --> 00:08:57.330 multiplied it wrong, if you sent it to the wrong 00:08:57.330 --> 00:09:00.169 address, these aren't gross negligence. Again, 00:09:00.350 --> 00:09:03.850 the IRS is going to argue with you. But the farther 00:09:03.850 --> 00:09:06.230 up the ladder you go, the more likely you are 00:09:06.230 --> 00:09:09.710 to find people who will be reasonable about it. 00:09:10.649 --> 00:09:13.149 Because at the lower levels now, the IRS will 00:09:13.149 --> 00:09:15.350 deny it. At the lower levels, they're measuring 00:09:15.350 --> 00:09:17.740 on how much they collect. and how many cases 00:09:17.740 --> 00:09:19.820 they settle, and they're encouraged to collect 00:09:19.820 --> 00:09:23.059 taxes. And the IRS will say differently, and 00:09:23.059 --> 00:09:25.700 I understand that. They can't admit that in public. 00:09:26.299 --> 00:09:29.580 But it's endemic. It's built into the system. 00:09:30.279 --> 00:09:33.700 So when you get out of that, and to people who 00:09:33.700 --> 00:09:36.480 are looking at the real case and not concerned 00:09:36.480 --> 00:09:39.539 about just shuffling them off, you're liable 00:09:39.539 --> 00:09:43.620 to get people who are more amenable to understanding 00:09:43.620 --> 00:09:45.909 what happened and why and so on. Yeah, I'm glad 00:09:45.909 --> 00:09:48.889 you say it that way because, you know, it kind 00:09:48.889 --> 00:09:52.990 of drops the veil of, you know, the big scary 00:09:52.990 --> 00:09:56.610 IRS people to, hey, they're just people. They're 00:09:56.610 --> 00:09:58.490 people doing a job. They're civil service doing 00:09:58.490 --> 00:10:01.590 a job. And that's all they want to do is do the 00:10:01.590 --> 00:10:04.570 job and get it done. When I talk to an agent, 00:10:04.750 --> 00:10:07.289 what's the, what's one of the, like, yeah, go 00:10:07.289 --> 00:10:09.070 ahead. We have a little contingent here. When 00:10:09.070 --> 00:10:11.389 I talk to an agent, the first thing I do is say, 00:10:12.049 --> 00:10:14.450 how's it going? How's your day? What's the weather 00:10:14.450 --> 00:10:17.070 like there? I will have conversations sometimes 00:10:17.070 --> 00:10:20.210 10 or 15 minutes with an agent, just talking 00:10:20.210 --> 00:10:23.870 before we ever get to the case at hand. When 00:10:23.870 --> 00:10:27.549 doing so, I build a community of interest. Okay. 00:10:28.129 --> 00:10:29.710 They're in New York. Well, you know, my father 00:10:29.710 --> 00:10:32.289 came from New York years ago. God, it's snowing 00:10:32.289 --> 00:10:33.889 up there. Never snows down here. That's why I 00:10:33.889 --> 00:10:37.450 live down here in Texas. Just anything to develop 00:10:37.450 --> 00:10:41.149 camaraderie, community goes a long way because 00:10:41.149 --> 00:10:43.090 people are yelling at them all the time. Don't 00:10:43.090 --> 00:10:45.720 yell at them. Don't scream at him. Don't jump 00:10:45.720 --> 00:10:48.580 up and down. Because just imagine if somebody 00:10:48.580 --> 00:10:51.379 was doing that to you. Your response would be, 00:10:52.299 --> 00:10:59.240 you know? So be nice to him. If you get a real 00:10:59.240 --> 00:11:01.919 butt on the phone. Disconnect, call back, you'll 00:11:01.919 --> 00:11:04.080 get somebody else. You get somebody else. Yeah, 00:11:04.200 --> 00:11:07.720 that's the route. That's the way I would go to. 00:11:08.679 --> 00:11:13.080 We're talking about the taxes and the new guys 00:11:13.080 --> 00:11:15.740 in the entrepreneurship world and you having 00:11:15.740 --> 00:11:18.440 the knowledge. Are there any little known tax 00:11:18.440 --> 00:11:22.100 deductions that small businesses should really 00:11:22.100 --> 00:11:25.419 take advantage of? Sure. There's a lot of them. 00:11:25.639 --> 00:11:28.899 There's some that are unknown. 45S is one. If 00:11:28.899 --> 00:11:32.320 you give your people time off for what would 00:11:32.320 --> 00:11:35.799 be an acceptable reason for family medical leave 00:11:35.799 --> 00:11:39.879 purposes, adoption, sickness, sickness of kids, 00:11:40.440 --> 00:11:42.700 family sickness, a number of other things, all 00:11:42.700 --> 00:11:45.840 the FMLA stuff, but you're not subject to it 00:11:45.840 --> 00:11:48.580 because you're not 50 people. If you give them 00:11:48.580 --> 00:11:51.620 time off for that and pay them right now, you 00:11:51.620 --> 00:11:54.990 can get a tax credit. for up to 25 % of what 00:11:54.990 --> 00:11:57.230 you pay them. And basically, everybody gives 00:11:57.230 --> 00:11:59.870 time. Sally's kid's sick, so you pay her for 00:11:59.870 --> 00:12:01.990 the day, because she had to stay home. And that 00:12:01.990 --> 00:12:04.870 may be in your PTO policy, that she gets two 00:12:04.870 --> 00:12:08.129 weeks of PTO a year. Well, if she takes the day 00:12:08.129 --> 00:12:10.409 to take care of a sick kid, or because she's 00:12:10.409 --> 00:12:13.470 sick, you can get up to 25 % of what you paid 00:12:13.470 --> 00:12:20.649 her back as a tax credit. Wow, okay. That is 00:12:20.649 --> 00:12:23.379 a secret. I'm going to suggest that for all your 00:12:23.379 --> 00:12:26.100 listeners, if they will go to thepayrollbook 00:12:26.100 --> 00:12:30.539 .com and enter the discount code podcast, I will 00:12:30.539 --> 00:12:34.120 send them a copy of my newest book, which is 00:12:34.120 --> 00:12:36.639 The Payroll Book, A Guide for Small Businesses 00:12:36.639 --> 00:12:39.820 and Startups, free of charge. No shipping, no 00:12:39.820 --> 00:12:42.539 handling. As long as supplies last, we'll ship 00:12:42.539 --> 00:12:44.820 them one free of charge. I'll pay the postage. 00:12:46.200 --> 00:12:49.539 Thank you. That's really cool. I'm sure that 00:12:49.539 --> 00:12:51.769 they'd take advantage of that because I I think 00:12:51.769 --> 00:12:54.029 I will. So you'll definitely be seeing my email 00:12:54.029 --> 00:12:56.750 in that there. Like since you gave that, is there 00:12:56.750 --> 00:12:59.470 a strategy that businesses can use to reduce 00:12:59.470 --> 00:13:03.450 the chance of being audited or is it just, you 00:13:03.450 --> 00:13:05.669 know, you just got to take it if it comes. Small 00:13:05.669 --> 00:13:08.070 businesses very seldom get audited to start with. 00:13:08.230 --> 00:13:10.750 S corporations are audited less than 1 % of the 00:13:10.750 --> 00:13:14.649 time. Okay. You have to get over several million 00:13:14.649 --> 00:13:16.850 dollars before you really get on their radar. 00:13:17.149 --> 00:13:20.009 So the chance of you being audited are slim, 00:13:20.029 --> 00:13:23.750 but That doesn't mean it won't happen. Keep your 00:13:23.750 --> 00:13:25.850 record straight. Use a separate credit card for 00:13:25.850 --> 00:13:28.330 the business. Do everything by check or credit 00:13:28.330 --> 00:13:31.389 card. Record everything. Keep all your records. 00:13:31.929 --> 00:13:36.289 Keep them in a form that you can access and provide 00:13:36.289 --> 00:13:38.830 to an auditor. All these things are just, they're 00:13:38.830 --> 00:13:41.309 good business. Keep track of your records because 00:13:41.309 --> 00:13:44.029 your financials and your financial records guide 00:13:44.029 --> 00:13:46.870 you to where you're being successful and where 00:13:46.870 --> 00:13:49.009 you're not being, where you need to put your 00:13:49.009 --> 00:13:52.070 efforts and where you don't. It's extremely important 00:13:52.070 --> 00:13:54.710 that you know what's going on in your business 00:13:54.710 --> 00:13:58.450 in detail because it will help guide you to make 00:13:58.450 --> 00:14:01.990 you more successful. Yeah. So that will solve 00:14:01.990 --> 00:14:04.970 audit problems because an auditor comes in and 00:14:04.970 --> 00:14:08.110 says, okay, you have these entertainment expenses 00:14:08.110 --> 00:14:11.990 or you have these travel expenses. Show me. And 00:14:11.990 --> 00:14:13.850 so you can start going through them and you say, 00:14:14.049 --> 00:14:16.629 okay, here's the mileage. Here's the log. Here's 00:14:16.629 --> 00:14:18.789 the first entry. It was such and such for such 00:14:18.789 --> 00:14:20.649 and such on such and such a date, so many miles, 00:14:20.870 --> 00:14:23.509 the business reason, the next one, the next one, 00:14:23.570 --> 00:14:25.529 the next one. After about five of them, he's 00:14:25.529 --> 00:14:28.110 going to quit asking. He's done because he knows 00:14:28.110 --> 00:14:31.789 you keep good records. So he's not going to look 00:14:31.789 --> 00:14:34.210 at everything because it's a waste of his time. 00:14:34.730 --> 00:14:38.149 Once he knows that you have good solid records 00:14:38.149 --> 00:14:41.509 on everything. The audit gets done very quickly. 00:14:42.129 --> 00:14:44.509 It's when they're spotty and then there's personal 00:14:44.509 --> 00:14:46.970 stuff in there and there's stuff that you can't 00:14:46.970 --> 00:14:50.490 document and so on and so forth. That's when 00:14:50.490 --> 00:14:53.909 it becomes a problem. That is not to say that 00:14:53.909 --> 00:14:56.590 you shouldn't deduct things that you can't document. 00:14:57.409 --> 00:15:00.230 If it's a legitimate deduction, even if you can't 00:15:00.230 --> 00:15:02.330 prove it, go ahead and deduct it on your tax 00:15:02.330 --> 00:15:06.389 return. You may lose it on audit, but your chance 00:15:06.389 --> 00:15:10.299 of being audited are less than 100. So, okay, 00:15:10.539 --> 00:15:13.899 I'll take that chance. You know, I play poker. 00:15:14.440 --> 00:15:17.399 Take the chance. My chances are much better at 00:15:17.399 --> 00:15:21.539 poker than they are. Okay. So, losing to the 00:15:21.539 --> 00:15:25.700 IRS is very unlikely. And one of the things, 00:15:25.960 --> 00:15:28.600 remember, going back to it, the IRS is people. 00:15:29.220 --> 00:15:33.639 They're not this monolithic, perfect establishment. 00:15:34.570 --> 00:15:36.750 They're people, they make mistakes, they can 00:15:36.750 --> 00:15:40.190 be talked to, they can be influenced. So be nice 00:15:40.190 --> 00:15:42.610 to them. Be nice to them. I mean, just being 00:15:42.610 --> 00:15:44.830 nice goes a long way. Even if you probably get 00:15:44.830 --> 00:15:46.950 a butt on the phone, if you don't hang up, still 00:15:46.950 --> 00:15:49.090 be nice. It may take you a little further than 00:15:49.090 --> 00:15:51.629 not being nice. I've got something that's come 00:15:51.629 --> 00:15:54.750 up. I'll call back. Click, call back. Oh, hi. 00:15:55.639 --> 00:15:58.500 Yeah. Just like it was all brand new. Are there 00:15:58.500 --> 00:16:00.559 financial red flags that entrepreneurs should 00:16:00.559 --> 00:16:03.159 look out when they scale their business? Because 00:16:03.159 --> 00:16:06.279 we do talk to people that are beginning but also 00:16:06.279 --> 00:16:08.279 want to be interested in scale their business. 00:16:08.940 --> 00:16:12.399 Are there financial red flags that come up when 00:16:12.399 --> 00:16:17.039 doing that? Well, this is why you need to have 00:16:17.039 --> 00:16:20.820 a CPA that works with you, prepares your financials, 00:16:20.840 --> 00:16:23.539 goes over them with you. talks to you about them. 00:16:23.539 --> 00:16:26.259 So you can see the red flags. If you're a restaurant, 00:16:26.279 --> 00:16:28.820 you can see that your food cost is creeping up. 00:16:29.019 --> 00:16:31.299 If you are, if you have an establishment, your 00:16:31.299 --> 00:16:34.720 utility costs are rising for some reason. That's 00:16:34.720 --> 00:16:36.559 how we figured out we had a water leak because 00:16:36.559 --> 00:16:39.440 our water bill went up. Okay. We looked at it. 00:16:39.440 --> 00:16:42.000 We had a leak. We had to talk with the running. 00:16:42.379 --> 00:16:44.539 So, you know, that, that was an extra $40 that 00:16:44.539 --> 00:16:46.659 month. Well, we got a plumber out there and we 00:16:46.659 --> 00:16:49.720 fixed it. So be aware of what's going on. The 00:16:49.720 --> 00:16:52.570 red flags will present themselves. if you look 00:16:52.570 --> 00:16:55.450 for them. Now, of course, the biggest thing is 00:16:55.450 --> 00:16:59.289 cash flow. You need to be aware of your cash 00:16:59.289 --> 00:17:02.429 flow because cash is king. You run out of cash, 00:17:02.509 --> 00:17:06.190 you're out of business. So cash flow is critical. 00:17:06.329 --> 00:17:08.710 You need to know what your cash situation is 00:17:08.710 --> 00:17:11.269 on an ongoing basis. For those who are starting 00:17:11.269 --> 00:17:15.890 out, I tell them, imagine every possible expense 00:17:15.890 --> 00:17:19.299 that you might encounter. as you start your business. 00:17:19.779 --> 00:17:23.660 And when you have that number, double it and 00:17:23.660 --> 00:17:26.220 you might be close because there's things you'll 00:17:26.220 --> 00:17:29.259 never imagine. Wow. Yeah. You know, there's some, 00:17:29.259 --> 00:17:31.579 there's things that sneak in and you're like 00:17:31.579 --> 00:17:34.019 things start to, they start to add up. They start 00:17:34.019 --> 00:17:36.000 to double up, you know, and the next thing you 00:17:36.000 --> 00:17:38.599 know, wait a minute, what's going on here? Yeah. 00:17:38.599 --> 00:17:40.980 And you talked about a CPA, getting a CPA. When 00:17:40.980 --> 00:17:44.660 is the, when should you get a CPA when you're 00:17:44.660 --> 00:17:46.519 starting a business? Like when's the best time? 00:17:47.609 --> 00:17:51.470 before you start, talk to one, find one that 00:17:51.470 --> 00:17:54.569 understands the type of business you wanna get 00:17:54.569 --> 00:17:58.869 into, because they will provide you, and normally 00:17:58.869 --> 00:18:01.089 you can talk to them the first time for free. 00:18:01.990 --> 00:18:04.170 If the guy says, you gotta pay me to talk to 00:18:04.170 --> 00:18:07.049 me the first time, find somebody else, and they'll 00:18:07.049 --> 00:18:11.230 give you hints, and they'll give you help, and 00:18:11.230 --> 00:18:14.569 then if you like the guy, and he's got the experience 00:18:14.569 --> 00:18:17.549 you want and you can talk to him and it's a good 00:18:17.549 --> 00:18:20.450 fit. He can help you create your business plan. 00:18:20.609 --> 00:18:23.470 He can help you create the prospective financials 00:18:23.470 --> 00:18:27.150 for the bank, for your financing, whatever. And 00:18:27.150 --> 00:18:29.069 he can help you set up your accounting system 00:18:29.069 --> 00:18:31.910 so you'll survive an audit if it happens and 00:18:31.910 --> 00:18:34.569 set up your financial reporting so you'll know 00:18:34.569 --> 00:18:37.650 what's going on in the business. You just can't 00:18:37.650 --> 00:18:40.869 run it out of your wallet. It doesn't work. No, 00:18:40.869 --> 00:18:45.279 it doesn't. I'll be honest, that was the beginning 00:18:45.279 --> 00:18:47.680 for me. I was like, yeah, this ain't working. 00:18:48.680 --> 00:18:52.279 This ain't working. We got to shift and admit, 00:18:52.279 --> 00:18:55.220 you know, I want to grow. And this ain't how 00:18:55.220 --> 00:18:57.339 to do it. This ain't how to do it. What's up 00:18:57.339 --> 00:19:00.240 Thrivo Journey listeners and watchers? Look, 00:19:00.440 --> 00:19:03.220 if you're someone with big dreams of entrepreneurship, 00:19:03.619 --> 00:19:06.079 but need a flexible way to earn income while 00:19:06.079 --> 00:19:08.500 building your business, let me tell you about 00:19:08.500 --> 00:19:11.309 the Oriens Group. Through our partnership with 00:19:11.309 --> 00:19:14.890 Arise Virtual Solutions, you can become a customer 00:19:14.890 --> 00:19:19.130 support professional, aka CSP, and start earning 00:19:19.130 --> 00:19:23.250 from home on your own terms. Arise offers a streamlined 00:19:23.250 --> 00:19:25.690 certification process, getting you trained and 00:19:25.690 --> 00:19:28.549 ready to work with well -known brands all across 00:19:28.549 --> 00:19:31.630 America. You can set your own hours, choose the 00:19:31.630 --> 00:19:34.309 clients you want to work with, and create a work 00:19:34.309 --> 00:19:36.190 -life balance that fits your entrepreneurial 00:19:36.190 --> 00:19:39.259 goals. The best part? You don't have to choose 00:19:39.259 --> 00:19:42.039 between your side gig and your business dreams. 00:19:42.599 --> 00:19:44.920 Being a CSP with the Orion's Group means you 00:19:44.920 --> 00:19:48.480 can bring in extra income while having the flexibility 00:19:48.480 --> 00:19:52.059 to focus on growing your own venture, much like 00:19:52.059 --> 00:19:54.839 I did. Whether you're looking to supplement your 00:19:54.839 --> 00:19:57.819 income or need a bridge while building your empire, 00:19:58.660 --> 00:20:01.420 this is the opportunity for you. You interested? 00:20:01.759 --> 00:20:05.700 If so, head over to www .TheOrientsGroup .com 00:20:05.700 --> 00:20:08.319 to learn more about becoming a CSP with The Orients 00:20:08.319 --> 00:20:11.400 Group. Look here, support your entrepreneurial 00:20:11.400 --> 00:20:13.940 journey while supporting the Thravo Journey podcast 00:20:13.940 --> 00:20:18.079 at the same time. All right, one more time, www 00:20:18.079 --> 00:20:21.220 .TheOrientsGroup .com. All right, we're done 00:20:21.220 --> 00:20:23.700 with the spot. Let's get back to the podcast. 00:20:24.740 --> 00:20:29.059 Every business needs four advisors. They need 00:20:29.059 --> 00:20:32.680 a CPA. for their financials and their taxes. 00:20:33.640 --> 00:20:36.299 They need a lawyer. As much as I hate lawyers, 00:20:36.880 --> 00:20:39.599 including my own, you need a lawyer for legal 00:20:39.599 --> 00:20:45.960 advice. You need a banker because you're going 00:20:45.960 --> 00:20:47.759 to have accounts, you're going to have money, 00:20:47.880 --> 00:20:50.259 you're going to have cash flow. You'll need a 00:20:50.259 --> 00:20:52.400 banker that you're going to work with. And you 00:20:52.400 --> 00:20:54.920 need an insurance agent that can help protect 00:20:54.920 --> 00:20:58.930 you from the vulgarities of business and life 00:20:58.930 --> 00:21:02.190 and people who will try to steal money from you. 00:21:02.289 --> 00:21:04.509 The one thing to remember with these advisors 00:21:04.509 --> 00:21:09.789 is they are advisors. They don't run your business. 00:21:10.109 --> 00:21:14.049 Your CPA may, your lawyer probably will, tell 00:21:14.049 --> 00:21:17.150 you how to run your business. Don't let them. 00:21:17.789 --> 00:21:20.970 Listen to them, listen to their advice, but it's 00:21:20.970 --> 00:21:24.609 your business to run. It's not theirs. They're 00:21:24.609 --> 00:21:26.630 not in it. They don't operate a day -to -day. 00:21:27.049 --> 00:21:29.230 They won't take the loss if you go out of business. 00:21:29.410 --> 00:21:31.130 They'll try to take the profit if you stay in 00:21:31.130 --> 00:21:34.089 business, but it's your business. Use them as 00:21:34.089 --> 00:21:36.309 advisors. You don't want to ruin your business. 00:21:36.569 --> 00:21:39.930 You know, it's really solid advice. CPA, lawyer, 00:21:40.470 --> 00:21:43.390 banker, and insurance agent, all advisors, right? 00:21:44.269 --> 00:21:46.829 Don't let them try to ruin your business. That's 00:21:46.829 --> 00:21:48.930 really solid advice. Okay. I think we have a 00:21:48.930 --> 00:21:50.930 little lag. I'll cut this part out, but I think 00:21:50.930 --> 00:21:53.210 we have a little lag between you and I. We do. 00:21:54.429 --> 00:21:58.970 Okay. So I'll, okay. I'll just, so I'll, um, 00:21:58.970 --> 00:22:01.150 after you speak, I'll give some little time. 00:22:01.269 --> 00:22:04.190 So we won't overlap, but just let you know that 00:22:04.190 --> 00:22:07.750 I'm, I'm catching that little lag there. So, 00:22:07.750 --> 00:22:12.450 all right. Um, so I'll just cut that part out 00:22:12.450 --> 00:22:14.490 and we'll just pick up where we left off here. 00:22:14.589 --> 00:22:16.789 So you, I mean, you have your business get payroll. 00:22:16.990 --> 00:22:20.750 Um, and I know that, you know, payroll is a big 00:22:20.750 --> 00:22:24.150 deal. So what, what does get payroll do? for 00:22:24.150 --> 00:22:26.190 new business owners or just business owners, 00:22:26.190 --> 00:22:30.630 period. What we do is we provide payroll services 00:22:30.630 --> 00:22:33.150 and payroll -related services for small businesses 00:22:33.150 --> 00:22:36.509 around the country. So you don't have to worry 00:22:36.509 --> 00:22:39.890 about what forms you need to file, when you need 00:22:39.890 --> 00:22:42.970 to file them, what you need to withhold, when 00:22:42.970 --> 00:22:44.789 you need to withhold it, when you need to pay 00:22:44.789 --> 00:22:48.730 it in. year -end forms, quarter -end forms, state 00:22:48.730 --> 00:22:51.730 forms, local forms. We do all of that and we 00:22:51.730 --> 00:22:54.650 keep up on the changes in the law and advise 00:22:54.650 --> 00:22:57.410 you on the changes in the law as things change. 00:22:57.950 --> 00:23:02.970 So all you have to do is track, you know, what 00:23:02.970 --> 00:23:04.789 the pay is for the people, the number of hours 00:23:04.789 --> 00:23:07.529 of the salaries. Let us know and we take care 00:23:07.529 --> 00:23:10.289 of the rest so you don't have to. The example 00:23:10.289 --> 00:23:13.490 I've used for years about dealing with the IRS 00:23:13.490 --> 00:23:16.940 on this stuff is When I grew up, Pele was the 00:23:16.940 --> 00:23:19.099 world's best soccer player. But if you put him 00:23:19.099 --> 00:23:21.220 in a New York Yankees uniform and second base, 00:23:21.920 --> 00:23:24.640 he would be lost. He wouldn't know the game. 00:23:24.779 --> 00:23:26.279 He wouldn't know the rules. Pick up the ball 00:23:26.279 --> 00:23:29.319 with your hand. So when you have business people 00:23:29.319 --> 00:23:31.980 who are successful with what they do and provide 00:23:31.980 --> 00:23:35.319 a service or a product, and then you say, okay, 00:23:35.539 --> 00:23:38.299 now go deal with the IRS. They're pale at second 00:23:38.299 --> 00:23:41.099 base. That's where we come in. We know the rules. 00:23:41.380 --> 00:23:44.160 This is our ballpark. In many cases, we know 00:23:44.160 --> 00:23:46.400 more than the IRS people we're dealing with. 00:23:47.059 --> 00:23:50.180 We study this. We study the law. We go to court. 00:23:50.180 --> 00:23:54.299 There you go. We pursue the regulations. We've 00:23:54.299 --> 00:23:57.000 been on the IRS advisory council dealing with 00:23:57.000 --> 00:23:59.900 the IRS problems, helping them solve them. This 00:23:59.900 --> 00:24:03.759 is what we do for a living. I can't do your business. 00:24:04.059 --> 00:24:06.859 I can't make your product. I can't sell your 00:24:06.859 --> 00:24:11.819 service. That's not my business. My business 00:24:11.819 --> 00:24:16.019 is dealing with the employment tax aspects of 00:24:16.019 --> 00:24:17.960 around the country for the local states and the 00:24:17.960 --> 00:24:21.039 federal government. And I know that backwards 00:24:21.039 --> 00:24:23.019 and forwards and know how to make it work for 00:24:23.019 --> 00:24:25.660 you. So let me. Let you. Yeah. You know what? 00:24:25.740 --> 00:24:27.859 And as you were saying all that, I was like, 00:24:27.859 --> 00:24:29.859 you know what? This is someone you want to have 00:24:29.859 --> 00:24:31.960 on your team. Somebody who could do all that. 00:24:32.039 --> 00:24:33.539 And the person that's running the business don't 00:24:33.539 --> 00:24:35.900 have to worry about it. Exactly. It's, it's, 00:24:36.640 --> 00:24:38.700 you know, I don't work in my own car. I don't 00:24:38.700 --> 00:24:40.880 mow my own lawn. I don't make my own clothes. 00:24:41.160 --> 00:24:44.339 I don't, I don't grow my own coffee beans. I 00:24:44.339 --> 00:24:46.859 outsource these things. Payroll was one of those 00:24:46.859 --> 00:24:49.180 things business should outsource before I ever 00:24:49.180 --> 00:24:51.680 got into the payroll business. I outsourced it 00:24:51.680 --> 00:24:56.799 to, to my competitors now. But simple is easy. 00:24:57.039 --> 00:25:00.240 It's cheap. It's one of those hats that you can 00:25:00.240 --> 00:25:03.599 take off and hand off very early on. I don't 00:25:03.599 --> 00:25:05.480 ever recommend that a business do their own payroll 00:25:05.480 --> 00:25:09.000 unless they're a CPA or a payroll expert. And 00:25:09.000 --> 00:25:10.599 if you're an expert at it, well, fine, go ahead 00:25:10.599 --> 00:25:13.059 and do your own. We do our own payroll, okay? 00:25:13.359 --> 00:25:18.579 But if that's not your - Well, yeah, it's definitely 00:25:18.579 --> 00:25:21.400 not mine. And so, and I'm letting the listeners 00:25:21.400 --> 00:25:24.980 know right now. that, you know, don't, don't 00:25:24.980 --> 00:25:27.660 do your own payroll. If you, if you can, if you 00:25:27.660 --> 00:25:30.160 have the money to go ahead and outsource it, 00:25:30.279 --> 00:25:33.200 outsource it. And I w I looked at your website 00:25:33.200 --> 00:25:35.539 and everything and looked into all your services 00:25:35.539 --> 00:25:37.599 and you look pretty good. So you might, thanks 00:25:37.599 --> 00:25:39.920 for coming on, but you know, you might have a 00:25:39.920 --> 00:25:41.819 new client over here. Okay. Just letting you 00:25:41.819 --> 00:25:45.279 know. So what's up? You have so much experience 00:25:45.279 --> 00:25:48.119 within the business world. What's one financial 00:25:48.119 --> 00:25:51.440 habit a every entrepreneur should adopt? Wow. 00:25:51.619 --> 00:25:55.339 Well, Track everything. I mean, and for entrepreneurs, 00:25:55.799 --> 00:25:57.980 that's going to be a hard thing. They tend not 00:25:57.980 --> 00:26:01.940 to be focused on the minutia. They tend to be 00:26:01.940 --> 00:26:04.460 big picture people. They tend to want to accomplish 00:26:04.460 --> 00:26:06.980 things. They want to be the next Elon Musk or 00:26:06.980 --> 00:26:10.140 Bill Gates. We all want to be there, but you've 00:26:10.140 --> 00:26:12.960 got, you've got track the minutia as much as 00:26:12.960 --> 00:26:15.460 it's a pain in the ass. If you don't, if you 00:26:15.460 --> 00:26:18.339 can't do it yourself, hire somebody that can. 00:26:18.929 --> 00:26:22.029 So you have the detailed records of what's happening 00:26:22.029 --> 00:26:25.809 because that's your guide to whether you're successful 00:26:25.809 --> 00:26:28.970 or not. You may think the old saw, well, you 00:26:28.970 --> 00:26:30.670 know, we'll cut the price and we'll make it up 00:26:30.670 --> 00:26:32.809 in volume. That may or may not work depending 00:26:32.809 --> 00:26:35.529 on what your margins are. You know, you may be 00:26:35.529 --> 00:26:36.990 selling the hell out of something. If you're 00:26:36.990 --> 00:26:39.940 selling at a loss for every unit you sell. The 00:26:39.940 --> 00:26:41.859 more you expand sales, the quicker you're going 00:26:41.859 --> 00:26:45.180 down the tubes. So you've got to know what the 00:26:45.180 --> 00:26:47.299 details are. You've got to know the minutia. 00:26:47.680 --> 00:26:50.259 And if you can't track it, hire somebody that 00:26:50.259 --> 00:26:54.880 can. So your CPA can sit down with you and go 00:26:54.880 --> 00:26:59.299 through it and explain what's going on and what's 00:26:59.299 --> 00:27:01.799 happening so you know where to put your efforts. 00:27:03.879 --> 00:27:06.440 make your business successful. You can't run 00:27:06.440 --> 00:27:07.980 it out of your wallet. You can't run it out of 00:27:07.980 --> 00:27:10.859 your pocket. It doesn't work. Too many people 00:27:10.859 --> 00:27:12.880 have tried and failed. It just doesn't work. 00:27:13.000 --> 00:27:15.099 You don't know what's going on. That little bit 00:27:15.099 --> 00:27:19.059 right there can save people headache, time, and 00:27:19.059 --> 00:27:21.480 lost wages right there. You personally, what 00:27:21.480 --> 00:27:24.299 was a financial mistake that you made in your 00:27:24.299 --> 00:27:26.460 business or did you? And did you recover from 00:27:26.460 --> 00:27:31.349 it? Oh, I've made lots of them. You know... I 00:27:31.349 --> 00:27:34.190 didn't start investing early enough, so I had 00:27:34.190 --> 00:27:36.569 to make up for it later. I'd be a hell of a lot 00:27:36.569 --> 00:27:39.730 richer if I put money away when I was a lot younger. 00:27:40.690 --> 00:27:42.549 That's the mistake that a lot of us make, is 00:27:42.549 --> 00:27:47.789 not staking out and saying, this much needs to 00:27:47.789 --> 00:27:51.009 go for my investment and my retirement for the 00:27:51.009 --> 00:27:54.509 future, regardless. That's a good habit to get 00:27:54.509 --> 00:27:58.690 into. I'll tell you one. When I started my business, 00:27:59.949 --> 00:28:02.630 Since it was new I could say I want to pay sales 00:28:02.630 --> 00:28:05.910 tax on an annual basis So I did because I didn't 00:28:05.910 --> 00:28:08.990 have to pay it quarterly or monthly Well the 00:28:08.990 --> 00:28:11.230 next January the tax bill came in at 1200 bucks. 00:28:11.349 --> 00:28:13.869 I went. Oh shit. Where's the money? So I immediately 00:28:13.869 --> 00:28:17.170 paid my sales tax on a monthly basis so I didn't 00:28:17.170 --> 00:28:20.190 get caught again Yeah, that's why but you didn't 00:28:20.190 --> 00:28:22.190 know but you were you weren't aware at the time 00:28:22.190 --> 00:28:25.089 It seemed easy. So I took the easy route and 00:28:25.089 --> 00:28:29.630 that was a mistake. Okay Yeah, sometimes the 00:28:29.630 --> 00:28:31.990 easy road ends up being the hard road. Absolutely. 00:28:33.609 --> 00:28:35.650 That's good. That's good advice as well. What's 00:28:35.650 --> 00:28:39.089 your approach to like making big financial decisions? 00:28:39.170 --> 00:28:42.829 And have you ever had to make those financial 00:28:42.829 --> 00:28:47.670 decisions under pressure? I try very, very hard 00:28:47.670 --> 00:28:50.609 not to make decisions under pressure. I will 00:28:50.609 --> 00:28:53.630 walk away from things. I will say, we'll talk 00:28:53.630 --> 00:28:57.839 tomorrow. I try very hard. If they say, I've 00:28:57.839 --> 00:29:00.680 got to have a yes or no right now. No, I won't 00:29:00.680 --> 00:29:03.839 be pressured into doing things. I refuse to. 00:29:04.380 --> 00:29:07.579 I like to think things over. I like to take time. 00:29:07.920 --> 00:29:11.000 If they've got to have a decision today, no, 00:29:11.859 --> 00:29:15.140 I won't do it. I refuse to. Making decisions 00:29:15.140 --> 00:29:18.180 under pressure, you shouldn't do it. Just don't 00:29:18.180 --> 00:29:21.259 allow people to pressure you like that. If they're 00:29:21.259 --> 00:29:24.059 pushing you for a decision right now, there's 00:29:24.059 --> 00:29:26.240 a problem. And the problem isn't with you. The 00:29:26.240 --> 00:29:29.759 problem is with them. Don't do it. Just say, 00:29:30.279 --> 00:29:35.019 no, I'll think about it. In negotiations, if 00:29:35.019 --> 00:29:37.519 you can't walk away from a negotiation, you've 00:29:37.519 --> 00:29:41.400 lost. Pure and simple. Any decision you have 00:29:41.400 --> 00:29:44.859 to make, you can't say, I'm going to take time. 00:29:45.200 --> 00:29:48.960 You've lost. Don't do it. Don't allow people 00:29:48.960 --> 00:29:52.380 to put you in that situation. There's very, very, 00:29:52.380 --> 00:29:54.980 very few situations where you have to make that 00:29:54.980 --> 00:29:59.099 decision now. Get with your advisors. Get with 00:29:59.099 --> 00:30:02.059 your spouse. Think about it. Get a good night's 00:30:02.059 --> 00:30:03.960 sleep. Things look better when the sun comes 00:30:03.960 --> 00:30:07.519 up in the morning. Things that look dire in the 00:30:07.519 --> 00:30:10.380 evening. Yeah. The next morning, you're going, 00:30:11.140 --> 00:30:14.839 well, it's not that bad. And it isn't. Your mind 00:30:14.839 --> 00:30:18.730 will make things worse. You'll get anxious, the 00:30:18.730 --> 00:30:21.309 chemicals in your body will stimulate in strange 00:30:21.309 --> 00:30:24.789 ways and there's nothing like a good night's 00:30:24.789 --> 00:30:26.569 sleep to get a different perspective on things. 00:30:26.789 --> 00:30:29.829 I totally agree. I think just through the years, 00:30:29.829 --> 00:30:32.470 I've learned that practice. I think with younger 00:30:32.470 --> 00:30:36.730 mindsets or beginning entrepreneurs, it's like, 00:30:36.990 --> 00:30:39.750 it's almost like a rush rush kind of identity 00:30:39.750 --> 00:30:43.549 and I've learned just chill out, take a breather, 00:30:43.809 --> 00:30:46.630 step back if you need to. or if I need to, and 00:30:46.630 --> 00:30:49.210 then come back with, you know, the full capacity 00:30:49.210 --> 00:30:52.390 of thought around whatever situation it is. And 00:30:52.390 --> 00:30:55.869 I've learned that over time. Absolutely. And 00:30:55.869 --> 00:30:57.809 something for entrepreneurs to remember, and 00:30:57.809 --> 00:31:02.390 I stole it from Bill Gates, is that people will 00:31:02.390 --> 00:31:05.009 overestimate what they can accomplish in a year 00:31:05.009 --> 00:31:08.630 and underestimate what they can accomplish in 00:31:08.630 --> 00:31:12.549 a decade. Entrepreneurship is not a sprint. It's 00:31:12.549 --> 00:31:16.240 a marathon. It's one step at a time. It's a long 00:31:16.240 --> 00:31:19.359 journey. Yes. Take your time. You'll be amazed 00:31:19.359 --> 00:31:22.220 at what you can accomplish in 10 or 20 or 30 00:31:22.220 --> 00:31:24.640 years like I have. I'm not as rich as I would 00:31:24.640 --> 00:31:28.480 like to be, but you know. Well, well, you know, 00:31:28.940 --> 00:31:31.339 that goes, that goes, you know, for pretty most, 00:31:31.460 --> 00:31:34.480 a lot of people probably. And with all the experiences 00:31:34.480 --> 00:31:36.440 now, I know you offered something in the beginning. 00:31:36.700 --> 00:31:38.920 Is this the book that you wrote? It's not the 00:31:38.920 --> 00:31:42.509 book you wrote, the payroll book? Yes. That's 00:31:42.509 --> 00:31:43.910 something different, right? No, no, it's the 00:31:43.910 --> 00:31:46.630 payroll book that I wrote recently. The payroll 00:31:46.630 --> 00:31:48.589 book, a guide for small businesses and startups, 00:31:48.809 --> 00:31:50.930 and I'll offer it to your listeners for your 00:31:50.930 --> 00:31:54.130 charge. Okay, awesome. How did that come along? 00:31:54.190 --> 00:31:57.829 Why did you decide to write that book? I get 00:31:57.829 --> 00:32:00.710 questions all the time, and I looked around to 00:32:00.710 --> 00:32:04.289 see if there was a good reference guide that 00:32:04.289 --> 00:32:07.809 I could recommend to people. The only one I could 00:32:07.809 --> 00:32:11.069 find is the payroll source. which is from the 00:32:11.069 --> 00:32:14.250 American Payroll Association. It's $600, and 00:32:14.250 --> 00:32:17.809 it's really designed to train payroll people 00:32:17.809 --> 00:32:20.309 to become certified, certified payroll professionals. 00:32:20.950 --> 00:32:24.230 It's not designed for business people. So I said, 00:32:24.650 --> 00:32:27.630 I'll write something. Well, two years later, 00:32:27.710 --> 00:32:31.109 I had something. Thank heavens for Wiley & Sons 00:32:31.109 --> 00:32:34.869 Publishing. They're a major publishing house. 00:32:35.170 --> 00:32:38.160 They took the book on. They helped make it a 00:32:38.160 --> 00:32:41.160 much better book than my previous Self -published 00:32:41.160 --> 00:32:44.259 books were so kudos to them and their expertise 00:32:44.259 --> 00:32:46.519 that made it a much better book We've done very 00:32:46.519 --> 00:32:48.819 well with it on Amazon and in the bookstores 00:32:48.819 --> 00:32:52.519 and so on So yeah, it's I refer to it as 30 years 00:32:52.519 --> 00:32:55.880 of wisdom still down to 95 ,000 words Wow, what? 00:32:56.900 --> 00:33:00.039 That's a good deal anybody like the people my 00:33:00.039 --> 00:33:02.539 audience is listening get that book because and 00:33:02.539 --> 00:33:04.759 sign up so you can get that book because it sounds 00:33:04.759 --> 00:33:08.720 like it's it's full of treasures that will definitely 00:33:08.720 --> 00:33:12.200 help us in our businesses. Before we got on, 00:33:12.519 --> 00:33:17.700 we talked about life, work, balance. And in the 00:33:17.700 --> 00:33:21.400 beginning, starting entrepreneurs think that's 00:33:21.400 --> 00:33:24.400 something that can be done. What is your take 00:33:24.400 --> 00:33:26.480 on that? Well, as I was saying to you before 00:33:26.480 --> 00:33:28.960 we started, I was on a panel discussion once 00:33:28.960 --> 00:33:32.900 and it was entrepreneurs and one of the entrepreneurs 00:33:32.900 --> 00:33:36.500 and one of them said, What about work -life balance? 00:33:36.859 --> 00:33:39.859 And I just cracked up. I started laughing. And 00:33:39.859 --> 00:33:44.019 I explained to the young lady that in the beginning 00:33:44.019 --> 00:33:46.380 for an entrepreneur, there is no such thing as 00:33:46.380 --> 00:33:49.960 work -life balance. It's work. If you want to 00:33:49.960 --> 00:33:52.920 be a success, you're going to have to put your 00:33:52.920 --> 00:33:57.099 heart and soul and time into making it a success. 00:33:57.640 --> 00:34:01.720 Now, in a few years, you can balance things out. 00:34:01.980 --> 00:34:05.519 But in the beginning, You have to focus on it. 00:34:05.519 --> 00:34:07.980 And I told her if your partner doesn't understand 00:34:07.980 --> 00:34:11.519 that, your life partner, there will be problems. 00:34:11.599 --> 00:34:14.280 They need to be on board with the fact that you're 00:34:14.280 --> 00:34:19.860 going to put in 70, 80, 100 hours a week on a 00:34:19.860 --> 00:34:24.139 business that you own, that's yours. You're not 00:34:24.139 --> 00:34:25.840 working for Joe Blow. You're not working for 00:34:25.840 --> 00:34:28.880 the many. You're working for you and for your 00:34:28.880 --> 00:34:31.960 partner's future. So you put into it everything 00:34:31.960 --> 00:34:36.380 you have. Now, at some point, it starts to self 00:34:36.380 --> 00:34:39.900 -perpetuate, and you hire people, and you get 00:34:39.900 --> 00:34:43.340 staff, and you have cash flow, and you have income, 00:34:43.599 --> 00:34:46.400 and you can take a vacation. It took me about 00:34:46.400 --> 00:34:50.019 10 years before I took a vacation. The first 00:34:50.019 --> 00:34:55.380 three, four years were tough. One of the things 00:34:55.380 --> 00:35:00.360 that I've learned is I have a tendency to want 00:35:00.360 --> 00:35:04.699 to keep things like in order and correct and 00:35:04.699 --> 00:35:08.099 it has one thing has to lead to another and some 00:35:08.099 --> 00:35:11.519 kind of flow. Well, owning your own business, 00:35:11.559 --> 00:35:14.019 it's not always that way because there's days 00:35:14.019 --> 00:35:15.920 when you wake up and things are just completely 00:35:15.920 --> 00:35:21.320 chaotic. Things don't flow at all. And so you 00:35:21.320 --> 00:35:25.119 become subject to everything else and you have 00:35:25.119 --> 00:35:28.820 no control. In that vein, what is your biggest 00:35:28.820 --> 00:35:31.550 piece of advice to entrepreneurs? struggling 00:35:31.550 --> 00:35:35.650 with that idea or that issue that ended up coming 00:35:35.650 --> 00:35:40.929 up? Well, again, it's amazing what a good night's 00:35:40.929 --> 00:35:45.329 sleep will do. So when things get chaotic, step 00:35:45.329 --> 00:35:49.489 back, put it on hold for a day, go home, have 00:35:49.489 --> 00:35:51.929 a drink, get a good night's sleep. You'll be 00:35:51.929 --> 00:35:54.489 amazed at what happens. I remember very well, 00:35:54.730 --> 00:35:58.309 this happened a number of years ago. On a Saturday, 00:35:58.530 --> 00:36:03.369 I went in and in the mail, was $25 ,000 of NSF 00:36:03.369 --> 00:36:06.110 charges on my bank account. Can you say that 00:36:06.110 --> 00:36:11.170 one more time? $25 ,000 of NSF fees on my bank 00:36:11.170 --> 00:36:14.829 account. It's a long story. One of my major clients 00:36:14.829 --> 00:36:17.769 we're doing ACH work for and they had a limit 00:36:17.769 --> 00:36:20.409 and the payroll was just over the limit for the 00:36:20.409 --> 00:36:22.909 first time. And the bank rejected it without 00:36:22.909 --> 00:36:28.050 calling the client. Didn't call me. Just didn't 00:36:28.050 --> 00:36:30.349 put that money in my account. and everything 00:36:30.349 --> 00:36:35.489 started bouncing. Everything. And I sat there 00:36:35.489 --> 00:36:39.489 on that Saturday morning, literally not knowing 00:36:39.489 --> 00:36:41.909 what the hell I was going to do. And it's a good 00:36:41.909 --> 00:36:43.530 thing it was Saturday because had it been during 00:36:43.530 --> 00:36:44.829 the week, I probably would have gone and shot 00:36:44.829 --> 00:36:47.489 the banker, literally. Thank goodness for weekends. 00:36:47.719 --> 00:36:51.079 By Monday morning, I had calmed down and realized 00:36:51.079 --> 00:36:53.460 what had happened, called the bank, called my 00:36:53.460 --> 00:36:56.320 client. The client was extraordinarily upset, 00:36:56.800 --> 00:36:59.380 screamed at the bank and it was the same bank. 00:37:00.199 --> 00:37:02.179 It was the bank I was using and the client was 00:37:02.179 --> 00:37:05.860 using the same bank. Two bank officers got fired 00:37:05.860 --> 00:37:09.380 over it because it was just absolutely unacceptable 00:37:09.380 --> 00:37:12.699 what they did. And so it all solved and all the 00:37:12.699 --> 00:37:15.760 fees were refunded and all the checks cleared 00:37:15.760 --> 00:37:18.909 and everything turned out. But in that moment, 00:37:19.289 --> 00:37:23.750 that dark, dark, dark moment, you know, I killed 00:37:23.750 --> 00:37:27.510 somebody. So that was Saturday and by Monday 00:37:27.510 --> 00:37:30.630 morning, I was rational again. So sometimes, 00:37:30.690 --> 00:37:33.809 you know, I say it's back to your right mind. 00:37:34.050 --> 00:37:36.309 Yeah. You know, I say there's no work life balance, 00:37:36.349 --> 00:37:38.170 but there's times you've got to step back and 00:37:38.170 --> 00:37:41.829 look at things and get a good night's sleep and 00:37:41.829 --> 00:37:45.369 let things process and talk to somebody. because 00:37:45.369 --> 00:37:48.250 I talk to my wife about it. It's amazing what 00:37:48.250 --> 00:37:51.210 talking out a problem can do to it. It changes 00:37:51.210 --> 00:37:53.949 the problem. You know, I've always said for years, 00:37:54.070 --> 00:37:56.170 the Catholics have it right, confession is good 00:37:56.170 --> 00:37:58.829 for the soul. The fact that you talk about a 00:37:58.829 --> 00:38:01.429 problem to somebody, to your advisor, to your 00:38:01.429 --> 00:38:07.360 spouse, to someone, changes it. It's no longer 00:38:07.360 --> 00:38:10.119 internal is external it forces you to look at 00:38:10.119 --> 00:38:12.780 it and analyze it in a different way than it 00:38:12.780 --> 00:38:14.960 just Internally and it makes all the difference 00:38:14.960 --> 00:38:18.019 in the world. Yeah to that point. I was just 00:38:18.019 --> 00:38:21.360 thinking that not Too long before we start this 00:38:21.360 --> 00:38:23.300 podcast. It was like, you know, I was like man. 00:38:23.320 --> 00:38:27.559 It would be good to have a partner that you know 00:38:27.559 --> 00:38:31.460 that I can talk to you know, when things are 00:38:31.460 --> 00:38:34.579 like just all in the mind or all internal about 00:38:34.579 --> 00:38:36.280 the business and whatever's going on throughout 00:38:36.280 --> 00:38:38.559 the day and just to kind of share it, you know, 00:38:39.039 --> 00:38:41.599 just so it can be out in the world, not so much 00:38:41.599 --> 00:38:44.860 on the inside. So yeah, I was definitely thinking 00:38:44.860 --> 00:38:46.820 that. So yeah, you're right on right on point 00:38:46.820 --> 00:38:50.539 with that. So I know we got the lag. So I thought 00:38:50.539 --> 00:38:52.639 maybe you're going to say something as we wrap 00:38:52.639 --> 00:38:56.099 up. What is like from all the experience that 00:38:56.099 --> 00:38:59.460 you've had, everything that you offered the world, 00:38:59.760 --> 00:39:01.940 everything that you've offered the financial 00:39:01.940 --> 00:39:06.340 world as well. What is your biggest takeaway 00:39:06.340 --> 00:39:10.420 from all that experience and what is your biggest 00:39:10.420 --> 00:39:14.500 piece of advice that you can give to anyone listening 00:39:14.500 --> 00:39:19.820 right now? Absolutely. There is no traffic jam 00:39:19.820 --> 00:39:24.059 on the extra mile. Go the extra mile for your 00:39:24.059 --> 00:39:26.949 clients. Go the extra mile for your employees. 00:39:27.510 --> 00:39:30.849 You'll be amazed at the results you will get 00:39:30.849 --> 00:39:33.849 because your competitors won't. That's great. 00:39:34.349 --> 00:39:37.070 You know, that's great. I'm not even going to 00:39:37.070 --> 00:39:39.010 elaborate. I'm going to say thank you for saying 00:39:39.010 --> 00:39:41.849 that. That's solid advice. You know, throughout 00:39:41.849 --> 00:39:45.349 these 40 minutes or so, like every, every step 00:39:45.349 --> 00:39:47.829 of the way, like you've, you've given great advice, 00:39:48.190 --> 00:39:50.849 solid, solid advice. And I want to appreciate 00:39:50.849 --> 00:39:53.309 you for, you know, taking the time out. And we 00:39:53.309 --> 00:39:56.500 finally. got to connect and be able to have this 00:39:56.500 --> 00:39:59.300 conversation. And I really want people to connect 00:39:59.300 --> 00:40:01.820 with you. And how does that happen? How can people 00:40:01.820 --> 00:40:05.719 get in connection with you? We're on the web 00:40:05.719 --> 00:40:12.320 at GetPayroll .com. My email is CJR at GetPayroll 00:40:12.320 --> 00:40:16.719 .com. And something quick, 972 -3 - Charles. 00:40:17.050 --> 00:40:18.769 Thank you so much for being here, like being 00:40:18.769 --> 00:40:21.289 on the podcast. I probably, we'll probably ask 00:40:21.289 --> 00:40:23.289 you again to come back sometime in the future, 00:40:23.289 --> 00:40:25.909 if you don't mind. My pleasure. And share some 00:40:25.909 --> 00:40:28.530 more, some more in -depth financial, financial 00:40:28.530 --> 00:40:30.809 business, whatever comes up. I want to thank 00:40:30.809 --> 00:40:34.250 you and to all the listeners, you know, take 00:40:34.250 --> 00:40:37.349 the advice, get on, send them, send them your 00:40:37.349 --> 00:40:40.650 email so you can get that book and, you know, 00:40:40.789 --> 00:40:42.510 connect with us on Facebook, on the Thrive with 00:40:42.510 --> 00:40:45.469 Journey podcast group. And as we always say around 00:40:45.469 --> 00:40:49.820 this time, Make thriving your new normal. Charles, 00:40:50.059 --> 00:40:51.579 thank you again. I appreciate you being here.