EYL #167: How to Start a Business in 2022

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to take out some money from the business. No, no, we said that the money was locked up. It's a lock up. Nobody's taking any distributions for the first two years. That now makes it a personal problem and not a business problem. And we agreed on this. My graduates from my school being forced back drop drop drop, backdrop.

So around that time, Amazon had a big story in the news where they didn't pay any federal taxes taxes federal right, no federal taxes. Yeah, and they had made like eighteen billion dollars that year and they didn't pay any taxes. So it was a real big trending topic.

So I'm like, all, this is the perfect time to actually talk about this, but instead of me and Troy talking about it's bring an expert in to talk about it, and then not only talk about that, but to give general you know, tax tips because for like, taxes was something that was very, very important. So, long story short, inviting Miss Business and she was the first guest of E Y L. And then I was opened up the floodgates for everybody.

not done a follow up episode. So I thought this was the perfect time and for a follow up episode. Different topic though this time is probably one of the most requested topics that we have ever had, where it's like we talk about business so so much, and one of the top topics is how do you start a business?

Like what is the steps to start a business? From setting up an LLC to setting up EI in number, the bank account, the idea of actually starting a business, the operation agreements, and then once you have a business, as far as how do you put stuff in your business name, how do you take tax deductions? Yeah, all of that stuff. Retirement, how do you sort of retirement plans, How do you hire employees? How do you put employees

on payroll? So much stuff. It's like, you know, even if you go to business school, a lot of this stuff is not taught. Most of the stuff's taught in business school is like more theory, things of that nature, supplying demand charts. But this is real world business and what happens is most of the time is that you just learn as you go. The problem with learning as you go is that you make a lot of mistakes, and you can avoid some mistakes if you have some

level of mentorship. And this is what EYO has become, kind of like mentorship and the sorts. So this conversation is extremely important. We're gonna be talking about how to start a business, how to keep the business afloat, how to run a business, operations, everything you need to know to have a successful business this year, next year, and every year. So first and foremost, thank you for joining us, appreciate.

way to the end, is choosing a business. Like when you're considering a business, you have passion projects and you have businesses. A lot of times people start businesses for the wrong reasons. They start the wrong businesses. So what are your advice as far as like starting a business idea?

that we're all phenomenal and we all have these amazing ideas. However, I think that when you're considering I say passion versus profit, because you hear all the time you need to like follow your passion, and you need to follow your passion, and sometimes that passion leaves you broke right, And so I think that when you are thinking about all these different ideas that you have, you have to think about what is going to turn me a profit, so that way it will allow me to then go after my

passion and then serve my passion. If your passion happens to serve you and turn you a profit, then congratulations. But most of the time people are just one looking at what other people are doing, and that's not the right thing to do. You have to think about what's important to me. What problem am I solving?

One thing is important because people will say I want to do real estate, I want to start t shirts, I want to you know, do a sock line, and they will try to do everything at one time. You can do that. So I think the first thing is becoming very clear on what is that first thing that you're going to put out that's going to either be your your passion if it turns a profit. If and this is my opinion, you guys can say what you think. I think that people should go after it should be

what's important to them. But I think that you should figure out how can you make an impact while making a profit to then do all the things that you know make you feel all gushy inside. So what do you guys think?

that affect funding? Like a lot of people are denied regularly for loans or any type of line or credit because they may put investments or real estate in their name. Lenders are like, no, that's risky, right if you put that you I don't know you do anything risky. The bank is going to be like, no, I'm not approving that loan because guess what, I don't know if I'm going to get my money back. And that's the only thing that any lender or investor cares about. How am

I going to get my money back? So you have to think about a name that one represents your brand and two is not going to mess you up with lenders.

going to get into. Yeah, right, But you want to make sure that the point is that you want to make sure that you're not infringing on someone else's business. You don't want to sit down and create products and packaging and create an entire brand, and you're ranting and raving about it for you to just receive a cease and desist letter from another business because you're infringing on their brand.

We fought it and I own this business now. However, it's so important to understand, and there's all. She gives an example where it's like, you have Pandora Music, but then you have Pandora Jewelry, right, so those are two different categories. But what's happening is that you can literally have businesses with the same name but just in two different categories because it's all about what a consumer can identify as your brand. So no one's gonna like think

that Pandora Music is Pandora Jewelry. Right, It's two different things. So we have to uh, we have to think. That's an amazing example. When she Yeah, when she talked about that, I was like, oh, wow.

to get into different industries. So it looks like they reversed it, and that's why I was so shocked to know that they first got into fashion then went to music, because most people go into music then go into fashion, right, So it's it looked like they said, you know what, we're going to do fashion and then we're going to go into music, because maybe they felt that it was a good marketing strategy, but sometimes just kind of figuring out, like what's going to be your can't do it to

get to the masses is important and you want to make sure that you're protecting yourself at every aspect.

that does not cover other countries. And are we going to get to LLC's Yeah, okay, yeah, yeah, but yeah, so like LLC's as an example, we could go back into it, but LLCs is more so going is more so registering on the state level, right, And then people will always ask me about let's say, like a DBA that's registering it on the county level, right, So you have to be careful and understand what you're protecting and at what level you're protecting, because if you you know,

someone can take your same name in a different state and then start a business because you only you know, register in that state. But if you do your trademark, that's going to protect you federally. Right, So the.

People want a therapist, right, They want a therapist. They want someone that they can bring along on their journey. So that way it can you know, be I guess, yeah, they can have a partner. They can have somebody to go along and showed a lean as I said, a therapist. But business is so business is so complicated and there's so many decisions that's going to be made that you want to make sure that if you are partnering with

someone that they are of benefit to the business. And so there's so many different ways when you have partners everyone doesn't have to be in the forefront. You may have someone that is a partner for you, but it may be on a monetary perspective, right, you may need their capital, or you may need someone that they may have the knowledge. You may have the capital, you may have the time, they may have the capital. But let's say both you have the capitol, but nobody has the knowledge.

What are you doing right? You know? And so I've seen so many partnerships come together and then dissolve. Like I've literally had people form an entity with me and then on the phone because they could not get things together, dissolve the company right on the phone with me, like you know what, let's just dissolve this. And that's because they did not do their due diligence upfront and they were just trying so desperately to make it work. Guard

your ideas. I find that sometimes there's usually a group of people in a room and they're just like, hey, yeah, I want to start this business, you want to start it with me? It's like who makes this person qualified to start a business with you? And so that's the first thing that you have to do. Really figure out what asset is this is this partner going to be an asset or they going to be a liability and so figuring that out and what they bring to the

table is going to be extremely important. Then deciding based on their value in the business, what ownership percentage do they have? Do they does that automatically entitle them to fifty percent of your business? Did you already have a concept already proven? Have you already did all the research? What exactly are they coming with? They may only need twenty five percent, they may need ten percent, they may

need fifty percent. You really need to consider if you're giving away fifty one percent, because that's control, right.

back and I'm looking at is COVID happen. Everybody has some time, you guys educate in the world on what's possible, and now everyone knows what their options are. However, no one has that blueprint or someone to be like, listen, this is you know what you need to do. So there's a ton of LLCs being created, but not a ton of profitable businesses. And as I say, I'm on the accounting side, so I know everything right, like who's profiting, who's not, who's you know, doing business for free? You

know who can't get it together? And so it really is, you know a lot of things that we have to also pay attention to if we are going to start these businesses as well as be profitable.

That's done with the IRS. You have to do both, and it's best if you do both around the same time because December, so many people will rush and be like, oh my god, like I haven't articles, but now I need an ei IN And it's like some people now don't have their ei IN until twenty twenty two.

that you want to be taxed as an LLC. If you choose a corporation, that's telling the IRS that you want to be taxed as a corporation. So the difference between all of let's say, let's start with LLCs because that's the popular entity as I.

So I have so many people that come to me all the time and they'll say, I want to start a business, and I want to start an LLC because I want to be able to write these things off. You can write it off. You can still write it off if you're operating as a sole proprietorship. The big benefit with an LLC is that it protects you against liability. So if you are if someone were to sue you, they and you're operating as a sole proprietorship, then now

your personal assets, your home, your stocks. I know you guys, you know have everybody invest in you guys, have everyone invested in stocks. But these are assets. And so if you decide today to start a business and then someone sues you, they will now all of your assets. You know, your cash, your personal your home, your primary residents, your stocks, that will now all be at liberty in that lawsuit because there's no separation between you and the business as

a sole proprietorship. But if you're an LLC, then what happens is if you were sue then they're just suing the business, they're not necessarily suing you. Okay, so that is something to consider. Now from the tax side of things, with a sole proprietorship or an LLC, what happens is

that you have to worry about self employment tax. So now when you're getting taxed, you're worried about your your income tax on the federal side, your income tax on the state side, and then you also have self employment tax, which is about fifteen point three percent additional on top of that. And to drive it home to people, I always say, would you allow somebody to walk up to you and just say, let me get fifteen point three percent of your business, you would look at them like

they're crazy. But because it's the irs, most people are not questioning it because they're afraid to actually, Well, one, I think they're afraid, but then I also think that people don't understand taxes, so they'll just say, you know what, I'm gonna just like I'm gonna just pay whatever, and not really looking at exactly what's what's due. So, I mean, what's the taxes are made up of? Right, And so that fifteen point three percent is a lot. It's a lot.

So that's what you're looking at. And so that's pretty much a con of an LLC. Right, that's a con because you have to pay that additional fifteen point three percent. Now let's talk about a corporation. So corporations does have a pro of it depending on how much money you make. A pro of a corporation is that there's a flat tax twenty one percent for a corporation. However, however, you have to consider double taxation. So now that's the con.

The con with double taxation is that you have to pay taxes on the business side, that's twenty one percent, but then profits then have to be distributed to the shareholders. I if it's just you as the owner, then you would be that shareholder and then profits will need to be distributed to you. So you have to consider that as well. And so it's very and you know, I

like to just talk about let's say Apple. With Apple, Apple is paying taxes at the business level and then they distribute out the dividends to all of the shareholders. The dividends then have to be reported on the personal tax return and then from there you then have to

pay tax on it again. Right, So that's pretty much how it works when you have a corporation, and a lot of people will form corporations either if they're grossing a lot of money or if it's a situation where they may have investors or they want to go public. Situations and scenarios like that will require you to be operating as a as a corporation versus an LLC.

brackets are much larger. So as an example, if you are married filing joint and you have let's say marry filing joint and you have long short term capital gains from about zero to about forty thousand, you have like zero capital gains in short term no sorry, ten percent capital gains, but if you are married, filing joyed with long term capital gains, and let's say you profited forty thousand dollars, you would have no tax, no tax liability,

it would be zero. So the idea, as we always talk about, is that the tax code is a series of incentives. The government wants you to keep your money in the stock market longer because it's driving the economy. So therefore they're going to reward you having your your money in sitting in the stock market a lot, you know, a lot longer. So if you want to like be in and out of trades on a daily then they're like, okay, well that we're going to tax that as earned income.

So that's something to think about.

let's say twenty one percent. It gets very complicated, right with a with a corporation, But there are instances with a corporation where you are saving significantly more if you are profiting more because you know, with a corporation you may have different things that you need to set money aside for for future use, and it's it gets a

little complicated, more tax plan and stuff. But a corporation out the gate unless you are I do have some clients that start businesses and they are like, listen, I have these big contracts waiting for me. But it may make sense for you to either start out as an LLC or an escort because you can always change, right if you start out.

still have to worry about that self employment tax. With an ES corp, you don't have to worry about the self employment tax on your total profit. What happens is self employment tax is really made up of Social Security tax and Medicare tax. So when you are an employee, if you look at your W two, you have Social Security tax and Medicare tax. But when you are the employee, you pay half and your employer pays tax. So you guys are splitting it. But when you are the employer,

you're required you're responsible for paying one hundred percent. And that's how we get to that fifteen point three percent, right. And so now when you're an ES corp, your only requirement is to pay yourself a salary. So when you pay yourself a salary, you let's say, and let's say it was one hundred thousand dollars profit, and you may say, you know, well, I'm going to pay myself irs just says that you have to pay yourself a reasonable salary.

It's not like a specific number or percentage. So let's just say you say, you know what I'm going to pay myself thirty five thousand dollars. You go from paying that Social Security tax and Medicare tax on that whole one hundred thousand as a LLC or a sole proprietorship to only paying it on that thirty five thousand dollars as an es CORP. So that's how you're able to save. That's how you're able to save on the s CORP side.

is your address right, Like, so that's one thing. What is going to be your business address along with your name. Another way to get denied for funding is the address. So if you're putting your personal home address as your business address, there's instances where lenders will deny you because they're going to do a quick search and your house is going to pop up on Google Maps, right, and so that has to be considered. What's going to be

your business address? I suggest getting a virtual address if you do not have an address. Virtual addresses are perfect and you can utilize them in so many different ways. Like when I first started my company, I was working from home and I had a virtual address. It was on Fifth Avenue. I had to you get an option to choose, so I was like, oh, put me on Fifth Avenue in the city. And so I'm in this

big high rise in mahaees and in the city. And then they also with virtual offices, they'll have different options. So they'll have one option where they can you can just use their address, or they have other options where they can act as like your receptionists, so they'll pick up the phone and they'll, you know, just say hi, Brock's Alliance, right, And so people were like, oh, can I speak to Shiquana and then they'll transfer it to

my cell phone. Right, So nobody knew, but I needed that virtual address when I first started, when I was registering in my business, because I knew going into it I wanted to build business credit. And so because I knew that I wanted to build business credit, I had to make sure that I, you know, did all the things that I needed to do, and one of those was making sure that I wasn't using my home address. So that's the next thing that you have to think about.

After that, you have to think about who is going to act as your registered agent. As a register register agent just pretty much means who's going to be served? If somebody comes to sue you, who's going to be served? And you have to think about with a registered agent,

there are requirements. The space needs to be opened during regular business hours, There needs to be somebody that they could technically come and serve, and so you have to think about that are you are you and your do you want people rolling up to your home address to

serve you? And you have to think about that all of this information is public, right, and so you may not want the entire world to be able to you know, see you know where you live, and depending on the state, not all states, they'll make your address public, but the registered agent address is public, so you have to think

about that, right so with the registered agent. So with the registered agent address, you have to think about do you want to be the you know, the registered agent or do you want to hire a registered agent right to to get served on your behalf. Keep in mind, no, you do not need to be there. If you put them down as your registered agent and someone comes to serve you, then they are still serving you because that's

who you put down as your register agent. And outside of that, it's just really your name, your business address, your register agent. Make sure you fil you know, you have to pay filing fees, and most states ninety percent of them, you can do this all electronically, some dates. Most some states have like you know, a waiting process. Other states that it's automatic. But the ideas that you can do it online. It's not like somewhere that you have to go to to get it done.

It's the rules of the business. This is where you detail out if there's multiple owners who, what ownership percentage each member has, how will the profits be split, who's responsible, who is the operating manager of the business, who has access to the bank. Because when sometimes most of the time if it's just one person, it's two people, they'll say, okay, everyone has access to the bank, and that's fine, But what if you had a silent partner and they didn't

necessarily need access to the bank. You have to detail all of these things out and so really establishing at what point are you going to share those profits at you? Is it a specific date, is it at a specific time. Do you want to create a lock up period meaning that you all can't touch the money at all up until a certain period. Who's going to be responsible for distributing out these funds? All of those things have to

be detailed out. And I like to say when you are kind of walking through your business plan and you're thinking about it, because everyone should have a business plan, but you know, and so when you yes, so when you are walking through your business plan, you have to think about who's going to be responsible for this? Who's going to be responsible? You know, like who's your accountant? Do you have someone in your business like it is you know one of your partners. Are they really good

at bookkeeping? Are you going to hire someone that's doing bookkeeping? Are they going? Is that a part of their role? Because what a lot of people don't know is let's say someone brings me into their business and they say, you know, what's business. I just want you to like, I I love your brand. I just want your brand to be associated with this business. And I also just

want you to do that accounting. But then down the line you sit me down and you're like, yeah, I want you to do marketing and I want you to work in a store too. That's out of the scope on what's and I will operate an agreement that I agree to. Now, in theory, yes is my business. I should go as hard you know. However, you can also say, all right, well as a business, I mean, that's not what I signed up for for this business. So I want to be paid additional. That's what's called guarantee payments.

So with those guarantee payments that you're saying, okay, well, I'm going like I'm going to be paid out of the business. Yes, I'm an owner, but I'm going to be paid additionally before you know, these additional services, and so you have to think about up front who's doing what and who is responsible for what, especially in partnerships and when it's just you, it's cool. Everything falls on you, right,

you don't have anyone to answer to. But when you start needing to answer questions and you're being checked by people, it's good to be able to say, no, this is the rules, this is what we said, this is what we agreed on. Because people are emotional, right, So people are emotional and emotions in business do not mix. So they may say, oh, well, I'm gonna buying. I need some money, so I want to take out some money from the business. No, no, we said that the money

was locked up. It's a lock up. Nobody's taking any distributions for the first two years. That now makes it a personal problem and not a business problem. And we agreed on this, you know. And so I see a lot of partnerships dissolve a lot because no one took the time to say what the rules were in the beginning.

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same exact day. However, sometimes there will be an error message because you're let's say someone got married and the IRS may only have your you know, your maiden name and then you know you You now are trying to tell them that you know this is another name. They're like, Nope, that doesn't match our records, and now you have to

like mail it in. So ninety percent of the time with my experience, people are able to do it electronically, but sometimes you will have to complete that SS four form and send it.

on the bank account. But in terms of opening up the bank account, depending on the bank, most of the time one person can go in and do it.

you're just not supposed to do it right. It's like at the end of the year, I have so many people who will say, yeah, I have an LLC and I have a bank account, but I don't use it and I ran everything under my person or I'm like, okay, well you were operating as a soul proprietorship. Because if in the event you're audited, the IRS is going to want to see your bank statements. And if you have no money coming in the bank statements, you have no expenses,

what did you report? Where did this money come from? So now you're opening up a whole new can of worms, because now they want to understand where's this money that you're reporting. Are you making this up and you don't have any indication of your other business or you receiving money. So now that is important, and I stress it so much to clients, but it is hard. It's a transition, and I think that it's something that people just have

to be cognizan enough. When you start this business, you have to open up your business bank account and utilize your business. If it's a situation where a lot of people have an issue at is they're like, all right, well I open up this business bank account, but my business isn't making any money, So how am I supposed to buy supplies or how am I supposed to actually pay for things? If I can't use my personal only thing you have to do is take money, transfer it

from your personal over to your business. That's not considered income. It's just considered a capital contribution and to your business. And you then need to pay for all of your expenses out of your business account.

personal guarantee to make sure. But if you have good personal credit, you can get approved or a business credit card. And just keep in mind that business credit card on a monthly basis is not going to report to your personal to your personal report. It's only going to report to the business report. Right, So it's kind of like using your personal credit as leverage to then build your business credit.

One stream is just paying for the other stream. They're not necessarily understanding what's how they're profiting, what's doing good, Which months were they doing better and then another month, why were they doing better in that particular month, and so bookkeeping is really the foundation and for twenty twenty two, if you have a business, you will have a bookkeeping processes in place. Right, can you guys tell them that they need to have bookkeeping right?

I would meticulously. It took me forever, but I would go through every single one and track it and be like, all right, I spent five thousand dollars on food, and even then that was my deductions for the year. So that was a manual.

you have quick books, it does a few things. One, you're able to sink your bank accounts, so now it's not a situation where your business bank account not your personal I have so many people that come to me and their personal accounts are connected, personal credit cards are connected, their husband's accounts. I'm like, why is all this stuff in your business account? This is not business right, and so your business account should be connected to QuickBooks. What

happens is that your transactions automatically sinking. You then go in and then you categorize all of your expenses, saying, okay, this went here. You know this is meals, this is travel, this was supplies, this was repairs, and then what other feature QuickBooks have that I love Because I'm bad. I'm not as organized as Rashad is with his envelopes. So for me, I have receipts everywhere. They're in my purse,

in my pocket, it they're everywhere. So to for a solution for that, I started taking pictures of my receipts, because even if you hold onto receipts, receipts crumble, they fade, and I feel like that's like I felt set up. I'm like, well, I kept my GUS receipt but it's

nothing on this receipt. And so what I started doing was taking pictures of the receipts, and quick books allows you to attach the receipt to the transaction, so now you don't have to worry about, you know, keeping anything like on hand, and now it can be like a total like virtual process. And so it's just like a

total virtual process, and it does make a difference. While I have some clients who try to, you know, do it Excel, and that's fine, whatever works for you, I don't recommend it because as a business owner, you have enough hats to wear. The last thing that you need to do is come in every day to say this money came in. I spent this money on something that's already being recorded in your bank account anyway. So you have to get a system in place, and that's important.

So bookkeeping is the foundation I tell clients, and I go back to it all the time, because even when it comes to filing your taxes, people don't understand that bookkeeping is really a requirement. They don't look at it as a requirement because the irs isn't explicitly saying you need bookkeeping. But what happens when you're audited, they need the following things. They're going to ask you for your bank statements. You cannot just provide receipts alone. Cannot just

provide bank statements alone. So what they're going to look for is your bank statements. They're gonna want receipts, they're also gonna want your general ledger and your trial balance. In what your general ledger and trial balance is, which if you have quick books, it'll be an easy download for you. Your general ledger is pretty much your detail

of your transactions. So let's say if you say, you know what, I had ten thousand dollars of travel, that's gonna show that one line item shows up on your trial balance travel, but said ten thousand dollars ten thousand dollars. Now in your general ledger, that's going to show all of the like what makes up that ten thousand dollars, So the hotels, the flights, the meals while you were there, and so you have to think about it's really a requirement because if you're audited, the iris want all of

those things. They want to know what made up that line item You reported it on your tech you reported ten thousand dollars of travel, what makes that up. Okay, cool, you said you had some hotels, you had some flights, Okay, where does that show up on your bank statement? You said the flight was seven hundred dollars. What does the seven hundred dollars show up on your bank statement? Okay, cool, it's showed up on your bank statement. Still not enough.

We still need to see the receipt, right, So you need all of those things. And then a step further. It provides insight. You don't really know, as I mentioned, where you're profiting. You know what's your profit margin, if you're doing business for free, if you need to increase your prices, you don't have that insight without having those numbers.

And then final step, I can't text plan for clients that do not have bookkeeping because if I don't, if you don't know where you are, I can't help you because I can't tell you what adjustments need to be made because you don't know where you are. So without having that foundation, it's like it's so bad for your business.

you versus what you can outsource. Because where you put your energy, that's where it's going to pretty much flow. And so if you're putting your energy into bookkeeping, your finances may be right, but guess what your marketing may not be or your you know, the operations of the business may not be. So you have to understand what's pulling you away. And people underestimate bookkeeping in terms of the amount of time that it takes in order to

be organized, and so it's so important to just consider that. Right, first thing you have to consider is Okay, do I need to be doing this or should I be hiring somebody to do this?

you have to do what you need to do. So now, buying business in your I mean buying assets in your business name is it's amazing, right, And I love it because it's more so shifting what would typically be a personal expense and then shifting it over into your business.

And so whenever you have not whenever, but most of the time, when you have an asset, you have some sort of you know, interest, because you have a loan, you can if it's personal, let's just use a Let's use a vehicle, right, because everyone loves to write off your vehicles. Jay, Remember they remember the six thousand pound roll, right that was actually about a year ago. All right, So let's talk about a vehicle. Typically, it will be

your personal vehicle. You'll be paying your cardinal or your lease, your insurance, your registration, your repairs, your maintenance, everything. If you're paying it on your personal side, it would just be coming out of your personal checking account or credit card. But if it's a now, a business expense. What happens is that now you're able to write those things off, and so everyone wants to do it. But now let's

talk about how you can do it. So the first thing that you want to make sure of is that you have your business bank account because lenders, again, when you go to a lender, the only thing they want to know is how are you going to pay them back? So they want to make sure that you have money

coming into your account. They want to make sure that you have money going out of your account, right, and then not make sure that you have money going out of you account, but see what you're spending money on when it's going out of your account, and so that's pretty much their way to analyze what's happening. Another thing that they are going to want to see are your taxes, so they want to make sure that you can again afford to pay them back. So what exactly did you report?

They will also want to see a current profit and lost statement. So let's just say right now, it's January twenty twenty two. The last tax return that was filed was twenty twenty, Right, we're gearing up to file twenty twenty one. You may say to them hey, yeah, I have my twenty twenty taxes. They're gonna say, okay, well I need a profit and loss bookkeeping. I need a

profit and loss statement and a balance sheet. So that way, yeah, so that way they want to see those financials, So that way they can see what activity happen in twenty twenty one, because they still need to make sure that you didn't dissolve the business or you know, for whatever reason, it isn't operating this same and so they're going to

pretty much want an update. So those things are going to be extremely important in some cases, when you are buying an asset in your business name, you also want to consider the You also want to consider if you have to be like a personal guarantee I'm sorry, personal guaranteur to the loan or if it's something you know your business can handle it. And so you have to think about all those things. And that's pretty much the things that you're gonna they're gonna look at.

statement that captures your revenue and your expenses. So that's important because you need to understand how much your business is profiting. That's going to tell and that is like the most That is the number one financial statement requested by lenders on a consistent basis. I think my office phone rings on a daily because people are like, I'm going for a house, some of they want a profit in law statement. I'm going for you know, some equipment,

and they want a profit in law statement. That's because they want to know are you profiting? That's typically what that statement. That's what that statement is telling lenders. Are you profiting or are you operating at a loss. So it's going to report your revenue, your money in and your money out, your expenses. Now you're a balance sheet.

The balance sheet is not talked about enough, but it is very important and also important to lenders because you could be making a profit and I know you guys talk about this and sort of health of companies and you know on market mondays. The balance sheet is an important statement as well because when you are looking at you need to know how much cash, Like lenders want to know how much cash do you have in the bank? Investm may want to know, right, it's not only lenders.

If you are going to someone saying that you want them to invest in your business, they are going to want to know how much cash do you have in your bank? How much liability do you have? These assets of reliabilities, you guys are really like the balance sheet. Okay, so when you think of it's.

out there like that, like you. But every time somebody always says are you an account here, I feel like it's like an underworld society because their accounting.

Who else do they owe? So that's important because if you have high revenue, but then you have high liability, technically you know you may be operating at a loss almost right if you pay these people back. Another thing that everyone is always so crazy about, you know, people's net worth. That's pretty much how you calculate somebody's net worth.

You take their assets, you might as see liabilities. You also are going to take in you know, to consideration their equity and then that's how you get to the their net worth. And so yep, all right.

So those tier one trade lines like quill and staples and you know gas cards, those are really good ways

to start building your credit, your business credit. You want to make sure that whomever you're building trade lines with, and it's pretty much what you'll do is create like net thirty accounts or net sixty accounts, and what that really just what that means is that they're going to supply you a product and then you're going to pay them, but you know within thirty days, right, Once you pay them within thirty days, they will then report that to

dune in Bradstreet, right. And so that's important because just like with your personal credit, you want to build up that history. When starting out, I would order stuff from Quote all the time because I needed I needed to build my business credit. I didn't need all those supplies.

I would like have like big dish detergent in my house, right, But I did it because, yeah, it came in a bigger bulk, but it was something that I was going to use anyway, So instead of going to you know, a local store to buy it, I just ordered it there and they were able to report to my to Dune and Bradstreet that I was making those payments on time.

this is only like the chip of the iceberg. There's so much stuff, and it's like, you know, unfortunately, if you don't come from a situation where the businesses passed down to you or you have a level of mentorship, you just start in a business. Most of us just start businesses. You're just learning. But the learning curve can take you out of business if you're not successful enough.

So that's something that's vitally important. It's like this is one of the most important episodes because it's like the information that you have can make or break if your business is going to survive or not. And that can Who knows, your business could be a million dollar business, multi million dollar business, a billion dollar business, but if it never actually gets a chance to get to that point,

it's going to be a failure. So you decided to actually put all of your years and expertise together and create an educational portal. So what made you get into the educational component?

and billion dollar ideas. We see the most basic things become billion dollar ideas, and it's not because they don't have great ideas, but the execution isn't there, the resources isn't there, the understanding of what's necessary to actually build

a business. I had, you know, the opportunity of being a part of a small business since I was six years old, right, So for me, I got that small business side and just really understanding like what it took to start a business, and then go in corporate understanding what corporations we're doing to operate their business their business. And so I love business. If it's one thing, I just love business, like I that's gonna be my thing forever.

And so I wanted to get into the education educational space because I knew that people didn't understand how to operate businesses. And so it's cool that everybody's starting a business, but I want everybody to actually create and operate sustainable businesses that they're profiting and they're able to build, you know, this generational wealth because most of the time that is the foundation one. You first have to get the money in.

So now that you get the money in your business, then you can take it and invest it and you know, then take it, you know, to that next level. And so it's important we are no longer in twenty twenty two and beyond. Twenty twenty two is Year of the bosses, Right, we are bossing up, we are doing the things that we need to do, and I want it to just be that person. Very similar to how it was with taxes. I'm like, yeah, nobody's talking about taxes. We have to

make it a part of the conversation. And so now I'm like, we have to make business, like real business a part of the conversation.

experts in to talk about so many of these topics. Like, yes, I took care of the you know, the business stuff and the tax thing when it came to like, you know, we have an HR expert. You know, we have we have so many people in this course and they were needed.

going over business credit, business insurance, budgeting, taxes, marketing, hiring, payroll, retirement. It's like, you know, being when I was in the financial advising world. You know, people used to pay to get business plans put together. In that business plans anywhere from like two thousand to five thousand dollars for a good business plan for somebody to like put it together for you. So I had never seen anything. And that's just the business plan. That's not really the retirement part

of it. That's not the payroll, that's not all of the different stuff. So it's literally the only equivalent I could really give is like going to college. It's like going to college, like if you could wrap four years business school together, and.

these different topics. And so the workbook pretty much is going to be like a guide, a hand by a side by side, a tool that can be used with the course. So as you're going through the course, you have to complete the workbook. So as you're completing the workbook, once you're done with the course, then guess what you have? You have a business plan, So you don't need to hire somebody to do your business plan, because as you're getting all this information, you're now going to be able

to write all the things down. You also have contacts, like I made sure every single person that was in this course gave the blueprint, so they gave the blueprint to their industry. You now have those people as a resource, so you don't have to worry about oh my god, I want it, like I need contracts. Who can I hire to get a contract? Nope, you have their contact right and so that's worth more than that's eliminating mistakes, Yeah, and mistakes cost in business.

pay hundreds of thousands of dollars. I'm not I'm not over exaggerating that, Like if you go to any top business school, that's how much you want to pay. At least a couple hundred thousand dollars and even bigger than that. Not knowing the mistakes can cost you hundreds of thousands of dollars, millions of dollars, who knows, even a billion

dollars if your business isn't successful. So you know that actually, like I said to actually, you know, spend some time on the course and actually go through the course myself. I was just amazed that, you know, somebody can actually put together that much information. Like what we just did in this podcast was an hour of the course. I believe it's fifteen hours, so imagine that fifteen times. What a workbook. So thank you for putting that together. First

and foremost, you're welcome. And then also in true eyl f ash, you know, anybody that has of course, because I invested in my education all the time. But one of the you know, prerequisites for anybody that comes on that has a course, we always you know, asks if they would do a deeper discount than what they're currently offering for all the earners, anybody that watches the podcast, and that's something that's exclusive where nobody else on the market has that price. We try to do that as

an incentive. So you were gracious enough to oblige for that voice, So we got one thousand dollars off of the regular price. So the website is ms B the letter B Blueprint eyl dot com. That's ms B blueprint eyl dot com. Will put the link in the description of this video and then on Spotify and Apple and then also it'll be on our website on the alumni tap. But that's the only website that will have that special

thousand dollars off. And once again that includes the four modules that includes everything from the idea to execution, the contracts, the trademarking information, the business credit information, the business insurance information and retirement planning information, the budgeting for your business information and taxes, the marketing, the payroll, all of that, and the workbook as well.

six figures. So now that you've got your six figures, then it also has a blueprint because what it took for you to make one hundred thousand and processes, the anxiety, you're gonna have to deal with some different things to get to seven figures, right, and so it also includes that. So we also talked about talk about funding in there, like there's a funding lesson and so it's literally everything that you need from A to Z as it relates to business.

didn't know what we were doing. Just fortunate enough to get through those mistakes. But but before we leave, let's give let's give a couple more gym before we wrap up. You want to talk.

transactions or twenty thousand dollars. That's now six hundred dollars. That's a big jump and a big difference, you know. So there will be a lot of ten ninety nine ks coming in the mail next year. So keep in mind January twenty twenty two is when this went into effect. Twenty twenty one, it doesn't go into effect. It's still the two hundred dollars, I mean the two hundred transactions

or twenty thousand dollars. But yeah, this is a game changer because a lot of people was not reporting a lot of the money and funds that they were receiving. And so now and keep in mind it is six hundred dollars total, not six hundred dollars transactions, because I get that question all the time.

was possible for crypto. So for those of you who are not familiar with what washells is when you sell a stock and then rebuy a stock right and then be able to recognize that loss. And so in twenty twenty one, that was the last time that you could do that. Now going forward, wash shells are not not possible with crypto.

That's a big one because a lot of people were offsetting a lot of their gains with those losses and then just picking up the picking up whatever coin it was in a few days, but now that's no longer possible.

to leave you all with. In regards to contacting me, my it's business Miss Business one on one, on Instagram, in all platforms, so follow me, send me a DM, you can always email me. My website is miss Business one on one dot com, so you can always reach me through any of those platforms.

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