1 00:00:00,000 --> 00:00:04,590 Hey there, you don't need to blindly increase your revenue in your business 2 00:00:04,660 --> 00:00:06,170 each and every year to be successful. 3 00:00:06,210 --> 00:00:06,670 You know that? 4 00:00:07,590 --> 00:00:11,199 You believe that increased revenue in your business means that you've made it. 5 00:00:11,599 --> 00:00:15,709 You think months like six figures, seven figures, those milestones 6 00:00:15,759 --> 00:00:16,989 means that you've arrived. 7 00:00:17,680 --> 00:00:21,700 But that is absolutely not true because revenue generated in your business 8 00:00:21,720 --> 00:00:25,640 means nothing if you don't have the wealth or legacy plan to show for it. 9 00:00:25,859 --> 00:00:28,039 What really matters is how you and your family are being 10 00:00:28,079 --> 00:00:31,239 impacted by your business, both financially and energetically. 11 00:00:31,909 --> 00:00:34,089 So what happens after you pay yourself in your business? 12 00:00:34,509 --> 00:00:38,059 Do you find yourself committing, over committing, over investing, 13 00:00:38,299 --> 00:00:40,069 depleting your profit completely? 14 00:00:40,269 --> 00:00:43,019 You don't have cash to be able to pay yourself that salary that 15 00:00:43,019 --> 00:00:44,929 you've once had in the past year. 16 00:00:45,599 --> 00:00:49,629 Or do you subconsciously do a lifestyle creep each and 17 00:00:49,629 --> 00:00:51,029 every time your business grows? 18 00:00:51,434 --> 00:00:54,234 And your business must carry the weight of your newfound needs. 19 00:00:54,604 --> 00:00:57,234 This wreaks havoc on your nervous system each and every month. 20 00:00:57,704 --> 00:01:00,724 By the end of this episode, you'll be able to see how your business 21 00:01:00,764 --> 00:01:04,035 will contribute to your lifestyle and legacy goals instead of creating 22 00:01:04,035 --> 00:01:06,384 another arbitrary goal for this year. 23 00:01:06,654 --> 00:01:07,234 Stay tuned. 24 00:01:07,964 --> 00:01:11,694 This is the Harmonious Wealth Podcast, where we're breaking online business 25 00:01:11,694 --> 00:01:16,764 owners free from chasing every next revenue milestone and instead prioritizing 26 00:01:16,834 --> 00:01:20,944 lifestyle and legacy goals so you can finally have the personal wealth 27 00:01:20,964 --> 00:01:22,604 to show for your business success. 28 00:01:22,934 --> 00:01:27,074 I'm your host, Ayanna Vaughn, fractional CFO and bookkeeper here to guide you. 29 00:01:27,534 --> 00:01:30,134 Now let's start building your financial legacy. 30 00:01:31,362 --> 00:01:35,163 Hey, and welcome to the first episode of Harmonious Wealth. 31 00:01:35,193 --> 00:01:39,743 My name is Iyanna Vaughn and I am so excited to start this podcast. 32 00:01:39,853 --> 00:01:42,683 Okay, I may not, I may seem kind of monotone because your 33 00:01:42,683 --> 00:01:44,032 girl is on day one of her cycle. 34 00:01:44,032 --> 00:01:46,292 She tried to cycle sync and it was not working for her. 35 00:01:46,702 --> 00:01:49,282 Second time in a row where my cycle was late. 36 00:01:49,492 --> 00:01:53,292 I was like, yeah, I'm going to record during my ovulation 37 00:01:53,312 --> 00:01:54,463 first half of the luteal. 38 00:01:54,463 --> 00:01:55,143 I'll be fine. 39 00:01:55,183 --> 00:01:56,113 Cool, cool, cool. 40 00:01:56,603 --> 00:01:57,592 No, why is it late? 41 00:01:57,592 --> 00:01:59,622 And then now I'm on my first day of my cycle. 42 00:01:59,622 --> 00:02:02,127 I've got my raspberry tea. 43 00:02:02,747 --> 00:02:05,767 I have my little heating pad if I need it. 44 00:02:06,007 --> 00:02:09,368 I'm doing fine right now, so I'm very grateful. 45 00:02:09,817 --> 00:02:13,738 I had to like reframe my mind of like, okay, let me listen to some worship music. 46 00:02:13,798 --> 00:02:15,858 Let me get cute. 47 00:02:16,018 --> 00:02:19,327 Let me fix my hair because I'm going to record and I want to be able to 48 00:02:19,338 --> 00:02:24,828 have like some personality versus like, but thank you so much for listening. 49 00:02:24,947 --> 00:02:28,478 I want to also say that I promised myself that I will treat my business 50 00:02:28,488 --> 00:02:32,098 like any other business, and I'm going to actually market, you girls going 51 00:02:32,098 --> 00:02:34,108 to market, and I am going to launch. 52 00:02:34,308 --> 00:02:38,267 We will be doing an open house on Friday, April 26 at 12 p. 53 00:02:38,267 --> 00:02:38,387 m. 54 00:02:38,417 --> 00:02:38,887 Eastern. 55 00:02:39,167 --> 00:02:42,877 And we will be talking about why your revenue doesn't matter if you don't 56 00:02:42,878 --> 00:02:47,947 have the wealth plan to show for it and why your cash isn't cashing, right? 57 00:02:47,947 --> 00:02:50,847 Why are you making all this revenue and you don't have the money to show for it? 58 00:02:51,267 --> 00:02:54,417 So if you want to join, go to lovelyfinancials. 59 00:02:54,628 --> 00:02:58,447 com slash open house to join this and I would love to have you. 60 00:02:59,207 --> 00:02:59,597 Okay. 61 00:02:59,707 --> 00:03:02,487 So let's go back to where we are. 62 00:03:02,487 --> 00:03:06,227 When you're thinking about revenue and your revenue goals every year, and you're 63 00:03:06,267 --> 00:03:10,628 thinking that you should be doubling it, you're not making this up for yourself. 64 00:03:10,647 --> 00:03:15,467 You know, you've seen people go on social media and they share that they're having 65 00:03:15,467 --> 00:03:18,407 like their beyond six figure journey. 66 00:03:18,537 --> 00:03:22,928 You know, they're hustling so much and now they're at that seven figure 67 00:03:22,947 --> 00:03:25,128 mark or multi six figure mark. 68 00:03:25,368 --> 00:03:28,188 They're celebrating maybe their first 10k month. 69 00:03:28,197 --> 00:03:31,257 Maybe they're celebrating their six figure month, right? 70 00:03:31,637 --> 00:03:34,757 And it's like going tremendously different for them. 71 00:03:35,267 --> 00:03:40,157 However, there's a lot that goes on to make consistent revenue to 72 00:03:40,157 --> 00:03:41,897 like six figures in a month, right? 73 00:03:41,897 --> 00:03:44,207 There's so much brain work that you have to go through. 74 00:03:45,217 --> 00:03:48,617 And there's so much back work that you need to go. 75 00:03:49,362 --> 00:03:53,802 So what I think is like, whenever you're starting your business goals overall, 76 00:03:53,802 --> 00:03:58,202 you must start with the end in mind and there are two ends in mind, right? 77 00:03:58,762 --> 00:04:03,732 First, first, first and foremost, you have to be that person 78 00:04:03,742 --> 00:04:05,172 in your business to serve. 79 00:04:05,842 --> 00:04:08,652 It's going to be really important because when you have a servant heart 80 00:04:09,062 --> 00:04:13,122 and you're creating a business that's going to show up for whoever is going 81 00:04:13,122 --> 00:04:15,712 to do an exchange monetarily with you. 82 00:04:16,232 --> 00:04:19,622 So you want to really think, especially if you're a service provider, think 83 00:04:19,622 --> 00:04:21,232 of how you're serving your clients. 84 00:04:21,552 --> 00:04:24,762 And also, especially as a coach, think how you're coaching your clients, 85 00:04:24,782 --> 00:04:29,542 think about how you're going to use your gifts to serve humanity. 86 00:04:30,122 --> 00:04:36,137 So I'm going to quote 1 Peter 4:10 in the Bible that says "each of you should 87 00:04:36,147 --> 00:04:41,437 use whatever gift that you have received to serve others as fruitful stewards 88 00:04:41,727 --> 00:04:44,037 of God's grace in various forms." 89 00:04:44,037 --> 00:04:52,473 so to me, that means like I am using my gift of understanding money to help my 90 00:04:52,473 --> 00:04:57,133 clients, you know, and I even want to go beyond my clients and even do, you 91 00:04:57,133 --> 00:04:58,793 know, this podcast to share with you. 92 00:04:59,383 --> 00:05:03,903 And I know that you have a very special gift and think about how you want to 93 00:05:03,903 --> 00:05:09,082 really serve in that gift for each year before you get into your monetary goals. 94 00:05:09,893 --> 00:05:13,603 So the second step, right, immediately second is like, 95 00:05:13,603 --> 00:05:15,223 okay, I know how I want to serve. 96 00:05:15,643 --> 00:05:19,843 Now I want to know how my business can serve myself thinking 97 00:05:19,843 --> 00:05:21,243 of the end in mind, right? 98 00:05:21,473 --> 00:05:24,426 Because I believe that your business should be one of the 99 00:05:24,566 --> 00:05:30,076 first wealth vehicles to create a personal wealth plan for yourself. 100 00:05:30,076 --> 00:05:34,166 That means it should be able to pay you consistently and you should 101 00:05:34,166 --> 00:05:36,891 be able to grow in your business. 102 00:05:37,651 --> 00:05:43,031 So say, for example, I think of the cashflow quadrant by Robert Kiyosaki, 103 00:05:43,061 --> 00:05:47,161 and he talks about like, being an employee is like one cashflow quadrant. 104 00:05:47,161 --> 00:05:50,491 The second is like, you are a service provider, for lack of a 105 00:05:50,491 --> 00:05:54,721 better word, and you're going from like one person to many, right? 106 00:05:54,781 --> 00:05:58,916 And you're serving as a solopreneur primarily, and then you're going 107 00:05:58,916 --> 00:06:04,256 from solopreneur to a business owner where your processes and your team is 108 00:06:04,261 --> 00:06:07,901 acting on your behalf to get that cash into your life, your personal wealth. 109 00:06:08,601 --> 00:06:12,901 And then finally, you are an investor because what I believe is with your 110 00:06:12,921 --> 00:06:14,801 business, you're growing cash, right? 111 00:06:14,841 --> 00:06:19,091 When you have excess cash and you're able to use that cash to 112 00:06:19,111 --> 00:06:23,201 then invest in your future, you're able to then invest the money up. 113 00:06:24,031 --> 00:06:26,461 The money grows itself, right? 114 00:06:26,961 --> 00:06:31,901 So I like to think of your business being the number one vehiclethat helps 115 00:06:31,921 --> 00:06:35,691 you go through the different phases of phases of your cash flow quadrant. 116 00:06:36,298 --> 00:06:36,778 Okay. 117 00:06:36,808 --> 00:06:41,553 So with our clients, we go through our four step framework in creating 118 00:06:41,553 --> 00:06:45,693 a legacy plan or just really understanding a business owner 119 00:06:45,703 --> 00:06:49,773 holistically for both their personal and their business in four key areas. 120 00:06:50,173 --> 00:06:53,953 First, when we meet with our clients, we kind of help them understand 121 00:06:53,953 --> 00:06:55,253 what their legacy goals are. 122 00:06:55,773 --> 00:06:58,893 Short version of it is step one legacy goals. 123 00:06:58,893 --> 00:07:01,203 When we do a kickoff call with our clients, we kind of feel out. 124 00:07:01,203 --> 00:07:01,703 Okay. 125 00:07:02,073 --> 00:07:03,663 What do you love most about your life? 126 00:07:03,703 --> 00:07:05,303 What do you love most about your business? 127 00:07:05,763 --> 00:07:08,443 What are your immediate lifestyle goals that we can help you with? 128 00:07:08,483 --> 00:07:11,993 And also like, what are some immediate business goals 129 00:07:11,993 --> 00:07:13,193 that you want to support in. 130 00:07:13,873 --> 00:07:20,423 And then we dig a little bit deeper because we know entrepreneurs 131 00:07:20,933 --> 00:07:22,313 do not think about retirement. 132 00:07:23,333 --> 00:07:27,676 And we would like to frame it because a lot of business owners believe 133 00:07:27,716 --> 00:07:31,181 that they want to work until forever. 134 00:07:31,481 --> 00:07:32,771 But that is not the case. 135 00:07:33,041 --> 00:07:35,951 So sometimes when I get some pushback, I'll say, okay, what do you 136 00:07:36,101 --> 00:07:38,501 want your life to look like at 60? 137 00:07:38,551 --> 00:07:42,511 And then we kind of grasp like, what is a day in the life when you're 60, right? 138 00:07:43,081 --> 00:07:46,141 And then the second part of our framework, when we kind of get your 139 00:07:46,141 --> 00:07:50,731 lifestyle and like legacy goals beginning to like churn, right? 140 00:07:51,061 --> 00:07:52,141 We then say, okay. 141 00:07:53,196 --> 00:07:56,886 Let's assess the trends and that's through bookkeeping and the trends 142 00:07:56,916 --> 00:07:59,246 like for the past couple of years. 143 00:08:00,096 --> 00:08:02,086 We'll look at, okay, where has your revenue been? 144 00:08:02,646 --> 00:08:03,976 Where has your profit been? 145 00:08:04,186 --> 00:08:05,796 How much have you been paying yourself? 146 00:08:06,456 --> 00:08:11,066 And then we'll say, okay, based on your legacy goals, based on your trends, 147 00:08:11,106 --> 00:08:13,366 the third part is uncovering the gaps. 148 00:08:13,856 --> 00:08:15,946 Like, where do you want to be? 149 00:08:16,156 --> 00:08:18,786 Immediate highlight of gaps is like your cashflow. 150 00:08:19,641 --> 00:08:25,351 We help you create a annual cash flow forecast that is weekly because 151 00:08:25,381 --> 00:08:28,751 things happen in between the month or as you're going through the months. 152 00:08:29,201 --> 00:08:32,421 And we highlight the gaps of where you want to be, where you are now. 153 00:08:32,931 --> 00:08:35,151 And then finally, we create a legacy plan. 154 00:08:35,681 --> 00:08:40,361 So that includes for your business, a profit plan for the next three years, 155 00:08:40,361 --> 00:08:44,641 because I like to look, I like to get you out of the weeds of things, help you 156 00:08:44,641 --> 00:08:49,271 see a bird's eye view of exactly what's going on in your business so that you 157 00:08:49,271 --> 00:08:54,521 know, okay, if my legacy goal at 60 is to do is to have a nest egg of 2 million. 158 00:08:54,971 --> 00:08:55,231 Okay. 159 00:08:55,231 --> 00:08:56,751 What does that mean today? 160 00:08:57,071 --> 00:08:58,311 What do I need to do today? 161 00:08:58,341 --> 00:09:02,811 Even if it's just like contributing, even a small martial morsel, even 162 00:09:02,811 --> 00:09:08,036 if it's saving three months of saving so that you can then get more 163 00:09:08,036 --> 00:09:11,096 aggressive and paying off your debt or investing in your retirement. 164 00:09:11,356 --> 00:09:13,446 What can you do within these next 12 months? 165 00:09:13,446 --> 00:09:16,636 We kind of do go deeper into the next 12 months together because 166 00:09:16,656 --> 00:09:20,326 I want you to understand how much you actually need to pay yourself. 167 00:09:21,136 --> 00:09:26,096 A lot of times we're just paying ourselves another arbitrary number again, right? 168 00:09:26,236 --> 00:09:27,806 We're doing arbitrary revenue goals. 169 00:09:28,076 --> 00:09:31,936 We do an arbitrary what we must pay ourselves from our business and it's 170 00:09:31,986 --> 00:09:33,776 erratic and we're all over the place. 171 00:09:33,796 --> 00:09:37,601 That's why revenue goals don't really matter if you don't have the personal 172 00:09:37,601 --> 00:09:39,401 wealth or legacy plan for yourself. 173 00:09:40,181 --> 00:09:45,081 So the benefit of creating that legacy goal is after we work together within the 174 00:09:45,091 --> 00:09:50,531 first 6 to 12 weeks, we then follow up every single quarter to say, okay, how 175 00:09:50,531 --> 00:09:52,331 close are we to your goal for this year? 176 00:09:52,711 --> 00:09:56,731 How close are we going to be to your legacy goal, right? 177 00:09:56,781 --> 00:09:59,911 How close are we to knocking out your immediate lifestyle goals? 178 00:10:00,461 --> 00:10:03,851 That can be like getting more massages, that can be taking your 179 00:10:03,851 --> 00:10:05,541 family on vacation twice a year. 180 00:10:05,601 --> 00:10:09,331 Like those things are things that I like to work on with my clients. 181 00:10:09,751 --> 00:10:15,111 The benefit of having a legacy goal is that we're able to see every single year 182 00:10:15,121 --> 00:10:21,241 how close you are to your legacy plan and you're able to understand and successfully 183 00:10:21,241 --> 00:10:23,401 accomplish your immediate lifestyle goals. 184 00:10:24,044 --> 00:10:30,358 Okay, so I'm going to go over three things of why revenue means nothing if 185 00:10:30,458 --> 00:10:34,208 your business isn't creating the personal wealth or legacy plan to show for it. 186 00:10:34,678 --> 00:10:37,628 And I'm going to start with the three numbers that you must know 187 00:10:37,628 --> 00:10:42,738 in your business because typically we're accustomed to just showing or 188 00:10:42,738 --> 00:10:44,438 like knowing our revenue numbers. 189 00:10:44,488 --> 00:10:48,158 I know when I first speak with clients on sales calls, they 190 00:10:48,248 --> 00:10:49,928 pretty immediately know, okay. 191 00:10:51,088 --> 00:10:52,758 This is my revenue for last year. 192 00:10:52,798 --> 00:10:54,908 This is what I want it to be kind of. 193 00:10:55,008 --> 00:10:55,628 They kind of know. 194 00:10:56,628 --> 00:10:59,448 And then when I asked them about profit, they're like, let 195 00:10:59,448 --> 00:11:00,498 me go see if I could find it. 196 00:11:01,058 --> 00:11:05,688 Then if I ask about what they pay themselves, they typically don't 197 00:11:05,698 --> 00:11:09,578 necessarily know, and they feel that what they pay themselves isn't enough. 198 00:11:10,118 --> 00:11:10,748 So. 199 00:11:11,233 --> 00:11:14,813 This is because we are so used to just showing our revenue number. 200 00:11:14,813 --> 00:11:18,163 We know like the back of our hand when we should know our profit 201 00:11:18,163 --> 00:11:20,483 and what we paid ourselves like the back of our hand as well. 202 00:11:20,833 --> 00:11:25,023 Sometimes we don't even know like business owners don't know what they've made in 203 00:11:25,023 --> 00:11:26,913 profit until they see their tax return. 204 00:11:27,678 --> 00:11:31,388 And even if they get their Schedule C, if they are a sole proprietorship, 205 00:11:31,408 --> 00:11:34,538 like a single member LLC taxed as a sole proprietor, they're 206 00:11:34,538 --> 00:11:35,798 just looking at their Schedule C. 207 00:11:36,168 --> 00:11:38,128 Their accountant isn't telling them what this means. 208 00:11:38,128 --> 00:11:42,338 They're just saying, this is my net income for my business and this 209 00:11:42,338 --> 00:11:43,758 is what my taxes are looking like. 210 00:11:44,188 --> 00:11:49,483 So they have both a profit and a tax surprise during tax season, or if they 211 00:11:49,483 --> 00:11:53,753 are working with a bookkeeping firm or a bookkeeper accountant, or even if they're 212 00:11:53,753 --> 00:11:58,503 doing their numbers by themselves, they are usually behind and when they're 213 00:11:58,533 --> 00:12:02,243 looking at it, they're not necessarily looking at their three reports. 214 00:12:02,483 --> 00:12:05,833 So the three reports include your, let's talk about the world, right? 215 00:12:05,883 --> 00:12:09,653 If we are talking about the world, the hottest place. 216 00:12:10,213 --> 00:12:11,633 Let's say we're in Africa, right? 217 00:12:11,633 --> 00:12:14,203 We're in Kenya, and we're having a great time. 218 00:12:14,593 --> 00:12:15,093 It's hot. 219 00:12:15,473 --> 00:12:17,103 We've seen our income statement before. 220 00:12:17,713 --> 00:12:24,003 Or then when we go to extremely cold, or even in the middle, in America, we, some 221 00:12:24,013 --> 00:12:25,453 people have seen their balance sheet. 222 00:12:25,923 --> 00:12:26,943 A lot has not. 223 00:12:27,143 --> 00:12:28,122 A lot of people have not. 224 00:12:28,823 --> 00:12:32,503 So the income statement is your revenue expenses, profit, your balance sheet 225 00:12:32,513 --> 00:12:36,433 is what you own in assets, what you own liabilities, what's up over in equity, 226 00:12:36,733 --> 00:12:39,603 and then your statement of cash flow, which is as cold as Antarctica because 227 00:12:39,603 --> 00:12:44,223 you probably never see it is your how your cash has moved in your business with 228 00:12:44,233 --> 00:12:48,403 your operating activities, which is just every day in your business operations, 229 00:12:48,763 --> 00:12:52,513 your investing activities, which is like if you're buying equipment or 230 00:12:52,513 --> 00:12:56,493 selling equipment that will be investing activities or your financing activities 231 00:12:56,493 --> 00:13:00,093 in that If you were to pay off your debt, paying yourself and your business. 232 00:13:00,703 --> 00:13:05,603 So if you're not receiving your three reports, or if you're not reviewing 233 00:13:05,603 --> 00:13:07,183 your three reports every single month. 234 00:13:08,413 --> 00:13:11,503 It's really hard to know like how your business finances are doing. 235 00:13:12,033 --> 00:13:17,853 And when I go into our approach is when we give our clients or their reports, 236 00:13:18,393 --> 00:13:21,103 we're going to assume that you're probably not going to go through the full 237 00:13:21,103 --> 00:13:22,673 report unless you're on a call with us. 238 00:13:22,693 --> 00:13:26,943 So at the top of the, of the report, we're going to tell you your revenue, 239 00:13:26,943 --> 00:13:32,293 of course, your profit, what you've paid yourself outside of just creating 240 00:13:32,293 --> 00:13:35,203 like a tax estimate, which is really important for us because we don't 241 00:13:35,203 --> 00:13:36,733 want you to have a tax surprise. 242 00:13:37,233 --> 00:13:39,393 We want to show you those 3 things. 243 00:13:39,723 --> 00:13:45,633 We have 2 more, but if you know, those 3 things in your business revenue, 244 00:13:45,633 --> 00:13:47,123 profit, what you paid yourself. 245 00:13:48,003 --> 00:13:49,043 You will be golden. 246 00:13:49,553 --> 00:13:54,303 So our approach is when we show you those things, you're able to 247 00:13:54,303 --> 00:14:00,353 understand how, immediately how your business is supporting your lifestyle. 248 00:14:00,533 --> 00:14:03,523 So with your owners, which you pay yourself and your business 249 00:14:03,813 --> 00:14:07,683 can show up in various places, depending on how you are taxed. 250 00:14:08,193 --> 00:14:13,833 So if you are a single member LLC taxed as a sole proprietor, which means that 251 00:14:13,833 --> 00:14:17,983 you are not an S corp or a C corp, then that means what you pay yourself 252 00:14:18,143 --> 00:14:22,913 is on the balance sheet, which is from equity, which is what is left over. 253 00:14:23,703 --> 00:14:28,103 So you won't necessarily know if you don't look at the balance sheet, right? 254 00:14:28,433 --> 00:14:32,533 So we're just going to help you figure that out with the three metrics. 255 00:14:33,438 --> 00:14:37,438 Another way that you might pay yourself is if you become taxed as an S corp, 256 00:14:37,448 --> 00:14:41,778 which means you become an employee of your company, you are going to be a, you're 257 00:14:41,778 --> 00:14:44,898 going to earn, have a salary, and you're going to be on the income statement, a. 258 00:14:44,898 --> 00:14:45,038 k. 259 00:14:45,058 --> 00:14:45,198 a. 260 00:14:45,248 --> 00:14:46,418 the profit and loss statement. 261 00:14:47,488 --> 00:14:52,858 And that's going to be confusing if you're paying yourself both with owner's draw and 262 00:14:52,858 --> 00:14:56,208 with salary, because it's like, okay, what did I really pay myself in my business? 263 00:14:56,748 --> 00:14:57,978 You know, what's going on there? 264 00:14:58,598 --> 00:15:03,598 When we give our clients a holistic view of what their business finances are, 265 00:15:03,978 --> 00:15:09,268 they're able to then ask us questions each month, or when they meet with us 266 00:15:09,518 --> 00:15:13,608 during our quarterly accountant meetings, we're able to help them say, okay, 267 00:15:13,648 --> 00:15:15,098 this is what the trends are telling us. 268 00:15:15,438 --> 00:15:16,848 This is what you've been paying yourself. 269 00:15:16,918 --> 00:15:19,768 How can we help support you on your next set of goals for the next quarter? 270 00:15:20,413 --> 00:15:25,833 Every second Thursday of the month, we deliver our clients, their report, and 271 00:15:25,833 --> 00:15:31,043 then they are able to use this data to, to change the trajectory of their businesses 272 00:15:31,353 --> 00:15:33,113 and then also improve their lifestyle. 273 00:15:33,503 --> 00:15:38,503 Like with one of our clients, she's been with us for quite some time, like Six 274 00:15:38,523 --> 00:15:41,273 to seven years, and she's really on it. 275 00:15:41,283 --> 00:15:45,173 She's, she's able to like outside of meeting. 276 00:15:45,173 --> 00:15:46,433 She's looking at her report. 277 00:15:46,443 --> 00:15:51,083 She's seeing the trends and she's able to then use those trends to help 278 00:15:51,083 --> 00:15:55,463 support her these past couple of years of having 70 percent profit margin. 279 00:15:55,463 --> 00:15:57,242 That's kind of unheard of. 280 00:15:57,563 --> 00:16:01,963 It's definitely something that is possible, but because she's able to look 281 00:16:01,963 --> 00:16:05,463 at her trends and understand where her revenue is, where her profit is, what 282 00:16:05,463 --> 00:16:09,423 she must pay herself, she's able to hit those high profit margins because 283 00:16:09,463 --> 00:16:17,073 on one hand, the more profit that you have, most of the times is what is 284 00:16:17,093 --> 00:16:18,673 going to help you increase your cash. 285 00:16:19,279 --> 00:16:20,614 That is not always the case. 286 00:16:21,204 --> 00:16:25,224 Because even though your profit may be high, your cash might be depleted 287 00:16:25,274 --> 00:16:29,204 because you might be paying off debt preemptively because you're 288 00:16:29,214 --> 00:16:31,014 having a fear of debt, right? 289 00:16:31,634 --> 00:16:35,334 Or you might be paying yourself a lump sum because you haven't 290 00:16:35,334 --> 00:16:36,724 been paying yourself consistently. 291 00:16:37,354 --> 00:16:41,464 So those things outside of your profit impact your cash. 292 00:16:42,054 --> 00:16:47,134 With our client who has, who has had the highest profit margin because 293 00:16:47,134 --> 00:16:50,254 she's looking at her numbers and she's reviewing those three key items, she's 294 00:16:50,254 --> 00:16:52,524 been able to pay off her own debt. 295 00:16:53,109 --> 00:16:56,749 Travel with her, with her family, get aggressive with her retirement 296 00:16:56,749 --> 00:17:01,289 savings, and she's able to execute her goals and really execute serving 297 00:17:01,289 --> 00:17:04,039 her clients more because she really understands what's, what's going 298 00:17:04,039 --> 00:17:05,059 on in her business holistically. 299 00:17:05,830 --> 00:17:10,020 You might be wondering, you know, Hey, I'm joining in the middle of the year. 300 00:17:10,030 --> 00:17:15,120 How can I really understand what's been going on from even the top of the year, 301 00:17:15,130 --> 00:17:19,990 maybe even 2023 so when you work with us within the 1st, 4 weeks, we will 302 00:17:19,990 --> 00:17:26,270 get your financial systems created or improved and updated through a bookkeeping 303 00:17:26,270 --> 00:17:27,820 cleanup, if that is needed for you. 304 00:17:28,510 --> 00:17:31,560 So we will review, okay, how do you like to see your revenue so that 305 00:17:31,560 --> 00:17:36,350 we know which each line item is performing, how it's performing for you? 306 00:17:36,690 --> 00:17:39,800 How do you like to see your expense category so that you as CEO can 307 00:17:39,800 --> 00:17:41,280 make decisions off of your numbers? 308 00:17:41,640 --> 00:17:44,780 How do you understand like your return on investment by looking 309 00:17:44,820 --> 00:17:46,435 at exactly what's going on? 310 00:17:47,195 --> 00:17:51,765 And then we help you understand your profit and your profit margin so 311 00:17:51,765 --> 00:17:56,295 that we can always aim to increase your profit so that you can then pay 312 00:17:56,295 --> 00:18:00,215 yourself more, have more cash on hand so that you can create your legacy 313 00:18:00,215 --> 00:18:02,245 goal or accomplish your legacy goals. 314 00:18:02,570 --> 00:18:07,040 When it comes to managing your cash flow to pay yourself well in your business. 315 00:18:08,225 --> 00:18:12,425 Typically, what I see is before working with someone strategically 316 00:18:12,425 --> 00:18:14,725 on this, there's no rhyme or reason for your cash flow. 317 00:18:15,235 --> 00:18:18,235 A lot of time people are like reacting, they're hustling 318 00:18:18,245 --> 00:18:19,595 to get to the next result. 319 00:18:19,945 --> 00:18:23,895 They're doing a lot of cash injection strategies, like entirely 320 00:18:23,905 --> 00:18:27,365 stressing themselves out and they don't have a way to understand 321 00:18:27,365 --> 00:18:29,295 exactly what's working for them. 322 00:18:30,210 --> 00:18:32,700 And they're growing to multiple six figures, but then they're 323 00:18:32,700 --> 00:18:35,830 still not paying themselves what they need to pay themselves. 324 00:18:36,450 --> 00:18:42,420 Maybe they're using debt versus leveraging debt out of need versus, okay, maybe 325 00:18:42,420 --> 00:18:48,070 I want to save this cash strategically because I do have the cash, to invest in 326 00:18:48,070 --> 00:18:52,670 your business to buy big ticket items, but they don't understand what that 327 00:18:52,670 --> 00:18:54,580 means for like the next three months. 328 00:18:55,300 --> 00:18:55,980 So. 329 00:18:56,460 --> 00:19:01,210 Then they're, they're having to dip into savings or having to, I've seen 330 00:19:01,940 --> 00:19:05,800 when it comes to cash flow, people are blindly using profit first, 331 00:19:05,800 --> 00:19:10,630 which I absolutely love, but they're blindly using profit first, being 332 00:19:10,650 --> 00:19:15,430 overwhelmed with the multiple different accounts without really drilling in. 333 00:19:15,440 --> 00:19:20,100 And how can I really understand where my cash is going so that I can pay myself. 334 00:19:20,810 --> 00:19:26,460 So when it comes to like navigating those cashflow issues, after we've learned 335 00:19:26,840 --> 00:19:30,160 what you know, what you have in revenue, what you earn in profit and what you pay 336 00:19:30,160 --> 00:19:36,030 yourself, our approach with our clients is how can we help you map out what your 337 00:19:36,030 --> 00:19:38,380 cash will look like for the next year? 338 00:19:39,290 --> 00:19:47,240 Because if you know, if you were to pay 20 K for like coaching or You were 339 00:19:47,240 --> 00:19:50,730 to pay a team member and understand how you can afford that team member, 340 00:19:51,150 --> 00:19:52,590 you would want to know what happens. 341 00:19:52,600 --> 00:19:57,880 Like we want to ensure that the next 24 weeks you're able to have adequate 342 00:19:57,880 --> 00:19:59,150 cash on hand in your business. 343 00:19:59,800 --> 00:20:04,650 And this allows you to have confidence in managing your money even when you 344 00:20:04,650 --> 00:20:06,140 feel like you don't have much to manage. 345 00:20:06,530 --> 00:20:10,670 So when we start working with our clients, they may feel that they don't 346 00:20:10,670 --> 00:20:14,010 have that cash on hand, but we can maneuver and kind of like strategically 347 00:20:14,020 --> 00:20:17,196 place their different expenses of what they pay themselves so that they 348 00:20:17,196 --> 00:20:19,446 can see what it really looks like. 349 00:20:19,856 --> 00:20:24,506 So Luke 16:10 in the Bible says, whoever can be trusted with very 350 00:20:24,506 --> 00:20:26,866 little can be trusted with much. 351 00:20:27,706 --> 00:20:30,656 This is extremely important because if you think that you're starting with 352 00:20:30,656 --> 00:20:37,316 humble beginnings, which most of us are, I want to help you understand 353 00:20:37,626 --> 00:20:45,036 how you can really navigate where you are now so that you can really grow 354 00:20:45,116 --> 00:20:47,506 your mindset as you grow your money. 355 00:20:47,976 --> 00:20:52,246 Within the first two weeks of working with our clients in both our profit 356 00:20:52,246 --> 00:20:57,206 planning intensive, as well as our fractional CFO clients, we have what 357 00:20:57,206 --> 00:20:58,866 I like to call the cashflow call. 358 00:20:59,561 --> 00:21:02,611 So we have our kickoff call, two weeks later we have our cash flow 359 00:21:02,611 --> 00:21:06,251 call, and then two weeks later, which is four weeks after, we 360 00:21:06,251 --> 00:21:07,951 have our money education session. 361 00:21:08,270 --> 00:21:13,800 In the cash flow call, we go over both business and personal cash flow needs. 362 00:21:14,370 --> 00:21:21,120 I create a 12 month cash flow forecast that is broken down weekly so we can 363 00:21:21,160 --> 00:21:26,635 understand how cash flows through both your personal and business finances. 364 00:21:27,435 --> 00:21:33,635 We then help you create a personal spending plan so that you are no longer 365 00:21:33,635 --> 00:21:35,625 guessing what you must pay yourself. 366 00:21:36,845 --> 00:21:42,035 The reason why you are living paycheck to paycheck or owner's draw to owner's 367 00:21:42,035 --> 00:21:47,285 draw or strike payout to strike payout, is because you need support 368 00:21:47,485 --> 00:21:49,335 in knowing what you must pay yourself. 369 00:21:49,335 --> 00:21:54,365 Typically, we see when someone pays himself, their living expenses 370 00:21:54,385 --> 00:21:58,065 are about 80 to 90 percent of what their take home pay is. 371 00:21:58,525 --> 00:22:00,295 And that is not okay. 372 00:22:01,065 --> 00:22:04,185 The great thing is as a business owner, you're able to expand 373 00:22:04,195 --> 00:22:06,215 beyond living paycheck to paycheck. 374 00:22:06,495 --> 00:22:10,339 When we work with our clients on creating their spending plan, we'd like their take 375 00:22:10,339 --> 00:22:14,219 home pay or their, what their business salary should be, or what they should pay 376 00:22:14,219 --> 00:22:16,799 themselves from their business to be 50%. 377 00:22:17,759 --> 00:22:19,829 I'm spending no more than 50 percent of your take home 378 00:22:19,829 --> 00:22:21,179 pay on your living expenses. 379 00:22:21,189 --> 00:22:26,499 So that means if you thought you needed to pay yourself 10K potentially it 380 00:22:26,499 --> 00:22:28,359 might be 15 to 16 thousand a month. 381 00:22:28,849 --> 00:22:32,759 So then when it comes to the cashflow forecast, we can say, okay, this is what 382 00:22:32,759 --> 00:22:37,759 you need to do in revenue this month or these weeks to be able to support paying 383 00:22:37,759 --> 00:22:44,859 yourself exactly what you need to pay so that you can have that revenue baseline 384 00:22:45,339 --> 00:22:49,404 so that at least you're hitting what you need to pay yourself so that you're not 385 00:22:49,534 --> 00:22:51,334 no longer living paycheck to paycheck. 386 00:22:51,784 --> 00:22:55,814 And when you are living on half of what you pay yourself, you could 387 00:22:55,814 --> 00:22:59,974 spend the other 50 percent on things like charitable contributions. 388 00:22:59,984 --> 00:23:03,689 You can like save so that you can have three months, six months of 389 00:23:03,689 --> 00:23:08,179 expenses saved up, you can pay off your debt, things like that. 390 00:23:08,189 --> 00:23:11,009 You can like really thrive in your life. 391 00:23:11,299 --> 00:23:13,339 So let me know in the comments, if you're watching on the YouTube 392 00:23:13,339 --> 00:23:16,589 version, which do you struggle with the most in your business? 393 00:23:17,069 --> 00:23:20,299 Do you struggle most with maintaining profit in your business? 394 00:23:20,969 --> 00:23:25,539 Or do you struggle with paying yourself your ideal salary in your business? 395 00:23:25,589 --> 00:23:26,189 Or is it both? 396 00:23:26,339 --> 00:23:26,729 Let me know. 397 00:23:26,729 --> 00:23:29,579 If you're ready to uncover what you must pay yourself in your 398 00:23:29,579 --> 00:23:32,539 business so that you can accomplish your immediate lifestyle goals. 399 00:23:32,939 --> 00:23:36,144 Sign up for my new Dream Life Calculator. 400 00:23:36,834 --> 00:23:40,734 I want you to avoid living paycheck to paycheck or better yet strike payout 401 00:23:40,754 --> 00:23:45,954 to strike payout so that you can have visibility of your personal funds. 402 00:23:46,384 --> 00:23:49,754 The Dream Lifestyle Calculator helps you uncover what you need to pay yourself 403 00:23:49,984 --> 00:23:54,004 without living on 100 percent of your income so that you can start to thrive, 404 00:23:54,004 --> 00:23:58,334 not only survive in your life and that you're able to hit your immediate 405 00:23:58,334 --> 00:24:00,314 lifestyle goals and your legacy goals. 406 00:24:00,694 --> 00:24:02,074 Go to lovelyfinancials. 407 00:24:02,074 --> 00:24:04,684 com slash lifestyle to get started. 408 00:24:05,229 --> 00:24:09,069 If you're a woman growing your business and family and want to have your business 409 00:24:09,069 --> 00:24:13,249 build personal wealth and legacy, subscribe on either YouTube or wherever 410 00:24:13,249 --> 00:24:14,799 you listen to your favorite podcasts. 411 00:24:15,239 --> 00:24:19,469 I'm on a mission to help a hundred women earn at least 1 million in 412 00:24:19,469 --> 00:24:23,899 net worth to create generational wealth and break generational curses. 413 00:24:24,429 --> 00:24:27,729 If this aligns with you, I'd love for you to be a part of the 414 00:24:27,729 --> 00:24:31,489 community and join in listening to more Harmonious Wealth episodes. 415 00:24:31,509 --> 00:24:32,499 Thank you so much. 416 00:24:34,315 --> 00:24:37,465 Hey there girlfriend, if you're ready to finally have the lifestyle 417 00:24:37,465 --> 00:24:40,965 and legacy to show for your business success, I would love for you to 418 00:24:40,965 --> 00:24:44,755 click that subscribe button on your favorite podcast app or YouTube.