From Coaching Calls to Cash Flow: Business Basics for Coaches

John: 00:00:00

Angie,

2

: 00:00:01

what's a common mistake you see coaches

3

: 00:00:03

making?

4

: 00:00:05

Angie: Hmm.

5

: 00:00:06

Well, one of them, I think, is not

taking care of the business side of their

6

: 00:00:12

practice.

7

: 00:00:13

John: Oh, do you mean things like

getting new business cards printed

8

: 00:00:16

and a flashy website and going to

9

: 00:00:18

networking events?

10

: 00:00:19

Angie: Don't I wish that was it?

11

: 00:00:21

No, John.

12

: 00:00:21

No, no, no.

13

: 00:00:22

Let's get into it and start the show.

14

: 00:01:09

John: Angie, you and I both

know that coaching is a

15

: 00:01:12

business as much as a practice.

16

: 00:01:14

So most of us, perhaps as coaches

would love to just be able to only do

17

: 00:01:19

the coaching and not worry about the

rest of it, but life ain't like that.

18

: 00:01:23

What's been your experience as

a coach of how to manage that

19

: 00:01:26

and what you, maybe what you see

other people doing and going wrong

20

: 00:01:30

with

21

: 00:01:30

as well.

22

: 00:01:31

Angie: So I have to come in.

23

: 00:01:32

I'm going to come into this

completely transparent that the

24

: 00:01:36

administrative side of my business

This is the bane of my existence.

25

: 00:01:41

I, and yeah, you're laughing, but

you know, you know me well enough.

26

: 00:01:45

John: No, I

27

: 00:01:45

know.

28

: 00:01:46

It's good.

29

: 00:01:47

Angie: doing this.

30

: 00:01:49

I, in my world, it's coaching all

day long and I'm just butterflies.

31

: 00:01:54

And even if it's tough work,

it's just, that's my passion.

32

: 00:01:57

My passion isn't being the office

administrator for myself, so, yeah,

33

: 00:02:03

uh, I don't know what to say right

34

: 00:02:06

now.

35

: 00:02:06

I hate it.

36

: 00:02:07

John: I, I fairly well agree with

you, but I, I pretty much agree.

37

: 00:02:14

And I feel it's my least favorite

part of the business, but also if

38

: 00:02:18

you don't take care of this stuff,

you're going to have problems.

39

: 00:02:21

And I do feel in my experience, a

lot of coaching programs will teach

40

: 00:02:27

you how to coach, but very few of

them teach you the business of.

41

: 00:02:32

Running a business, managing your

coaching business, marketing your

42

: 00:02:35

coaching business, filing your

taxes, all that kind of stuff, that

43

: 00:02:39

you really do need to be on top

44

: 00:02:42

of.

45

: 00:02:43

What, how have you dealt with it?

46

: 00:02:45

As someone who doesn't enjoy

this, how have you combated

47

: 00:02:48

this and stayed on top of it?

48

: 00:02:51

Angie: So, and yeah, obviously

I was coming into it giving you

49

: 00:02:54

the authentic transparent self

50

: 00:02:56

on that, but It's necessary to your point.

51

: 00:02:58

It is a business.

52

: 00:03:00

It's my business.

53

: 00:03:01

And I'm very serious, this isn't part

time for me, so I really had to look at it

54

: 00:03:07

and say, what am I, what do I need to do?

55

: 00:03:10

Without going through the lengthy lessons

I learned, because what did I know?

56

: 00:03:16

I didn't know how to run a business I've

been in, around a long time, so QuickBooks

57

: 00:03:23

wasn't necessarily around, when I began,

so everything was very like, ink and

58

: 00:03:28

paper and I didn't know, systematize,

because there wasn't a lot available, but

59

: 00:03:35

then, As the systems became available,

I found that that didn't make it

60

: 00:03:39

easier because I was resisting

that as well, because I'd been

61

: 00:03:43

used to doing it a certain way.

62

: 00:03:45

So,

63

: 00:03:47

yeah, it was actually a

CPA who finally said to me,

64

: 00:03:54

You need to get this in order.

65

: 00:03:55

We cannot have the like, And I'm making

the joke here, but ten shoe boxes

66

: 00:04:00

full of receipts and forms and that is

just, it was just so, it was a mess.

67

: 00:04:05

I lip skated my way through it

because I didn't know how to do it.

68

: 00:04:09

Nobody was there to teach me and

69

: 00:04:12

I didn't know.

70

: 00:04:13

I just didn't

71

: 00:04:14

know.

72

: 00:04:14

I knew I was a coach.

73

: 00:04:15

Oh,

74

: 00:04:15

really?

75

: 00:04:16

John: Same here.

76

: 00:04:16

No I came from a career of

working for a major company.

77

: 00:04:21

I worked for an international airline.

78

: 00:04:23

I had no idea how to manage a business

or anything else, even though I did

79

: 00:04:28

actually did business studies at

school, but that was a long time ago.

80

: 00:04:31

I think the only thing that I took

away from that was how to balance

81

: 00:04:34

checkbook and he has a checkbook anymore,

82

: 00:04:36

Angie: I do.

83

: 00:04:37

John: apart from you, he does no one

else, Angie, sorry, it's just you.

84

: 00:04:42

The reality of it for me was I

had no idea how to run a business.

85

: 00:04:45

I really just did want to show up and

do my coaching calls and take the money

86

: 00:04:48

and that's kind of it, but that's not

all there is to, to running a business

87

: 00:04:53

and you're probably not going to last

very long, or you're going to end

88

: 00:04:56

up even worse situations of having

the tax man knocking on your door.

89

: 00:05:00

And wanting some money from

you, or maybe even worse.

90

: 00:05:05

So this is just stuff that

we have to take care of.

91

: 00:05:09

And I've done coaching with

other coaches for a long time.

92

: 00:05:14

So a lot of the coaching I've done with

the Heart of Echo organization has been

93

: 00:05:17

coaching people with coaching businesses.

94

: 00:05:20

And I see this a lot.

95

: 00:05:22

I see them all focusing

on the wrong things.

96

: 00:05:24

They're focused on the website, they're

focused on getting the business cards,

97

: 00:05:26

they're focused on the networking events

like we talked about right at the start.

98

: 00:05:29

It was kind of a joke, but it was a

joke based in truth that that's what

99

: 00:05:32

people are thinking about when they

think about doing this as a business.

100

: 00:05:36

And it is not.

101

: 00:05:37

It's not enough.

102

: 00:05:38

And those things are not even important.

103

: 00:05:40

Like I, about the times I had business

cards done and not only are you

104

: 00:05:44

sentencing yourself to death by email

from Vistaprint, but you're also going

105

: 00:05:48

to be, but you're also going to be

finding, trying to find situations to

106

: 00:05:52

use them and probably never use them

or ending up with a load of business

107

: 00:05:57

cards that at some point either

gonna just fade or get thrown away.

108

: 00:06:02

It's a waste of money in most situations,

and it's a waste of time, so put

109

: 00:06:07

your energy where it really matters

in the things of, alright, if you

110

: 00:06:10

were going to create a business plan.

111

: 00:06:13

And you, maybe you're going

to work with a client to help

112

: 00:06:14

them create a business plan.

113

: 00:06:15

What would you do for yourself?

114

: 00:06:16

What would be on there?

115

: 00:06:17

What would be on your list of

things to do and take care of to

116

: 00:06:21

make sure that you had a solid long

lasting business that was going to

117

: 00:06:26

stay out of

118

: 00:06:26

trouble?

119

: 00:06:27

Angie: I think so many things come to mind

because like yourself, all joking aside,

120

: 00:06:32

I, I did have the experience with that

CPA and, uh, like the skies open the sun

121

: 00:06:39

shone through and I was like, Oh, okay.

122

: 00:06:41

So I need to do this.

123

: 00:06:42

I need to really be aware of where I'm,

what I'm doing here with my business.

124

: 00:06:46

And now, obviously a million years later.

125

: 00:06:50

Now I train people and teach

people on how to create like at

126

: 00:06:53

least a beginnings of the business

plan and the structure, right?

127

: 00:06:58

And what do you really need for the

type of business that you are in?

128

: 00:07:03

Excuse me.

129

: 00:07:03

So I think that's important to lay that

out and say, okay, but am I doing that?

130

: 00:07:08

Am I making sure that I'm taking care of.

131

: 00:07:10

You know what I mean?

132

: 00:07:12

I'm a I'm a straight shooter, you know

when it comes to the tax season and it's

133

: 00:07:16

our tax season right now every single

thing is accounted for every single

134

: 00:07:20

avenue of my business is On the back

end, if I spend money on anything, it's

135

: 00:07:26

got a, not only am I accounting for it,

I'm accounting for it in the right way.

136

: 00:07:30

But for you, I think, I'm curious

what I think for me, it came

137

: 00:07:35

down to systematizing it, right?

138

: 00:07:38

And saying, okay, there

needs to be a system here.

139

: 00:07:40

What does that system look like?

140

: 00:07:43

But I don't know if, how do you, what?

141

: 00:07:44

What did you do?

142

: 00:07:46

John: I had a bit of touch and go at the

start of making, of making things happen.

143

: 00:07:51

So it was for me, being a Chambers

of Commerce event and speaking to a

144

: 00:07:55

bookkeeper that, that helped me out.

145

: 00:07:58

Much like you with your CPA friend of

okay, well I can actually pay someone

146

: 00:08:01

else to take this pain away from me.

147

: 00:08:04

But I do think the.

148

: 00:08:05

Biggest challenge I had and

maybe still have is the numbers.

149

: 00:08:09

Like you start talking numbers

with me, my eyes was, my eyes will

150

: 00:08:12

glaze over and you will see it.

151

: 00:08:15

But as coaches, as business owners,

you need to know your numbers.

152

: 00:08:19

And we also need to work

from an end result backwards.

153

: 00:08:22

What do you know how much you want

to be making a year as a coach?

154

: 00:08:27

And if you do, then okay working backwards

how many clients would you need to have?

155

: 00:08:34

each month, or how much money

would you need to get each

156

: 00:08:36

month in order to do that?

157

: 00:08:37

Then how much money would

you need to have each week?

158

: 00:08:39

When you know that, okay based on

what you're charging your clients,

159

: 00:08:42

how many clients would you need

to have in order to be able to

160

: 00:08:44

hit that per week and per month?

161

: 00:08:46

Does that mean you need

to raise your prices?

162

: 00:08:48

Does it need, mean you need to

get a bit more realistic about

163

: 00:08:50

what you're going to be earning,

164

: 00:08:52

but also take into consideration

That a chunk of whatever you have

165

: 00:08:57

there is also going to be money

that you have to pay in taxes.

166

: 00:09:01

So we're, we are looking at net income,

ideally not gross income because

167

: 00:09:08

you have to take into consideration

what you're going to have after tax.

168

: 00:09:13

Angie: First of all, I think

you hit on it very early on.

169

: 00:09:16

The first step, if you decide that you're

going to be, I want to be a coach, right?

170

: 00:09:21

I'm going to be this person that is,

going out independently there definitely

171

: 00:09:26

needs to be that business plan.

172

: 00:09:28

And it is a journey.

173

: 00:09:29

So you do need to begin with the

end in mind so you can structure.

174

: 00:09:35

Your path of getting there to your

point if you need to make like,

175

: 00:09:39

what are your what's your income?

176

: 00:09:41

I mean, I'm sorry, not your income.

177

: 00:09:42

What are your household

bills expenditures?

178

: 00:09:45

What does that look like?

179

: 00:09:47

I'm gonna say this because I know

people are gonna come at me and say I'm

180

: 00:09:51

sorry I didn't see CPA at the end of

your last name So I'm just saying that

181

: 00:09:55

this is from experience and I'm not

pretending to be a CPA I'm just talking

182

: 00:09:59

a couple of really good practices in

terms of setting up your business.

183

: 00:10:04

And that first piece is how much do I,

what are my expenditures every month?

184

: 00:10:10

Do I have to pay for health insurance?

185

: 00:10:12

Do I have to pay, this is

probably another session for us.

186

: 00:10:16

Business insurance.

187

: 00:10:17

I do have business insurance, by the way.

188

: 00:10:20

How much does it cost me to keep

the lights on and my belly full?

189

: 00:10:23

All of the basics of life and then

some because, what else are you doing

190

: 00:10:29

besides, living and breathing and working?

191

: 00:10:31

So, I think that a lot of coaches

or new business owners they shy away

192

: 00:10:37

from that because I think that it

becomes a little bit real for them.

193

: 00:10:42

And then they go, Oh my gosh, I never

realized that it cost me, and I'm making

194

: 00:10:48

up this number, the cost of running

my household including medicine and

195

: 00:10:53

food and, lights and all is 75, 000.

196

: 00:10:58

Holy smokes.

197

: 00:11:00

I think that realization is why people

push away from it a little bit more, and

198

: 00:11:05

then go, well, I can't focus on this.

199

: 00:11:07

I just have to go out and make money.

200

: 00:11:09

Mmm.

201

: 00:11:10

Big mistake.

202

: 00:11:11

Huge mistake.

203

: 00:11:13

John: Yeah.

204

: 00:11:14

I think it is an interesting question.

205

: 00:11:16

I've got a number of times

as to should you have seed

206

: 00:11:20

money for starting a business?

207

: 00:11:22

Even a coaching business is

gonna help you a lot if you do.

208

: 00:11:25

If you

209

: 00:11:26

Angie: If,

210

: 00:11:26

wait, what?

211

: 00:11:27

John: there's

212

: 00:11:27

Angie: have what money, What is

213

: 00:11:29

John: seed

214

: 00:11:30

money?

215

: 00:11:30

Angie: seed money?

216

: 00:11:32

John: like some money back

217

: 00:11:34

as a

218

: 00:11:35

Angie: Oh, okay.

219

: 00:11:36

Like working

220

: 00:11:37

John: until you, yeah, capital to,

until you can get up to earning

221

: 00:11:41

what you really need to, so the

seed, the seed plant, to plant the

222

: 00:11:44

seeds and

223

: 00:11:45

help it

224

: 00:11:45

grow.

225

: 00:11:46

Angie: How did I get to be 55 years

old and I've never heard that saying?

226

: 00:11:49

That's awesome.

227

: 00:11:50

Okay.

228

: 00:11:51

I just wanted to check in, John.

229

: 00:11:52

I'm like, what does

230

: 00:11:53

that even mean?

231

: 00:11:54

Got you.

232

: 00:11:55

John: I'm glad you asked because there

may be other people wondering exactly

233

: 00:11:57

the same thing who now have also been

enlightened and But yeah, if you have

234

: 00:12:02

that it's gonna be a helpful buffer for

you Especially if you have actually taken

235

: 00:12:05

a look at how much do you need to earn?

236

: 00:12:08

How in order to be able to

cover your living expenses?

237

: 00:12:11

That's an important thing to know

and Then how much do you need

238

: 00:12:14

before you actually get into profit?

239

: 00:12:16

Which realistically is what you

need to look at is that at what

240

: 00:12:19

point are you making a profit?

241

: 00:12:21

And if you're not how long can you

sustain that and what are you going to do?

242

: 00:12:26

To get yourself into profit so it

can't be onesie twosie bits of coaching

243

: 00:12:32

here and we'll see how it goes.

244

: 00:12:34

It needs to be a lot more strategic which

is about treating this as a business

245

: 00:12:39

rather than as A side hustle a hobby

or whatever else it's not being casual

246

: 00:12:44

about this And recognizing that there's

no big organization unless you're better

247

: 00:12:48

off coaching or something like that.

248

: 00:12:50

There's no big organization

taking care of everything for you.

249

: 00:12:53

If you are doing your own, if

you're running your own coaching

250

: 00:12:56

business, it's all on you.

251

: 00:12:58

And no, definitely take

get support as well.

252

: 00:13:01

Get support and advice from

people who can do that.

253

: 00:13:03

I'm lucky that I have a good, what

we call here in Spain, a head store.

254

: 00:13:08

These are people they take care of.

255

: 00:13:09

Like a lot of the legal and

accounting side of business.

256

: 00:13:11

They help me submit my, help me

submit my taxes every quarter

257

: 00:13:14

because we do it quarterly here.

258

: 00:13:16

And I still have the pain, the

regular pain of having to get all

259

: 00:13:20

my tax information ready for them.

260

: 00:13:22

But I do it, and I like to be, I like

to have that stuff ready and planned in

261

: 00:13:26

advance because I think it's just the

262

: 00:13:29

cost of doing

263

: 00:13:30

business.

264

: 00:13:31

Angie: There's the key.

265

: 00:13:31

I think that's the thing

that, that's a mindset.

266

: 00:13:34

Let's face it.

267

: 00:13:35

You and I've talked about this.

268

: 00:13:36

Most people that come into

coaching are not doing it like,

269

: 00:13:40

out of high school, right?

270

: 00:13:41

They've already had established

either businesses or professional

271

: 00:13:47

lives that have somehow, pivoted

them toward, I want to be a coach.

272

: 00:13:52

And for many people, it's a transition

and I think that can be great, but it

273

: 00:13:58

also can hinder them because there's

only a limited amount of time that they

274

: 00:14:02

can spend in making that transition.

275

: 00:14:04

So maybe the first question that you

want, like everybody really needs to

276

: 00:14:09

ask themselves out of the gate is,

what is my vision for this business?

277

: 00:14:14

Like, is it going to be?

278

: 00:14:16

You know a side hustle a side gig.

279

: 00:14:19

I don't like to say side hustle because

I feel like it minimizes it I don't

280

: 00:14:22

know I have to come up with something

different to say there But you know what?

281

: 00:14:25

I mean when I say that is this

something that I want to be doing?

282

: 00:14:29

In three years, one to three years

transition time, is this something

283

: 00:14:33

that I want to be doing full time?

284

: 00:14:35

And then having, cause I do have

people that come to me and say, I at

285

: 00:14:39

least need to replace my gross income.

286

: 00:14:42

Okay.

287

: 00:14:43

So then what does that look like?

288

: 00:14:44

Right?

289

: 00:14:45

What are the verticals that

you're incorporating into your

290

: 00:14:47

business that make that happen?

291

: 00:14:49

That's great, but I think also on the

other side is that having some realistic

292

: 00:14:58

I'm the swing from the fence, for the

fence is kind of a girl, if I say I'm

293

: 00:15:02

going to do something, I'm not doing

it small, I'm doing it big, I'm not

294

: 00:15:05

going guppy hunting, I'm going for

the shore, so this way, if I don't

295

: 00:15:09

exactly hit that, I'm certainly going

to be further ahead than if I'm guppy

296

: 00:15:13

hunting,

297

: 00:15:14

And I think that's a great mindset,

but I think too, the structure, what

298

: 00:15:19

you keep saying is that structure

needs to be in place and saying, okay,

299

: 00:15:23

how do I really, how can this happen?

300

: 00:15:26

What is the timeline?

301

: 00:15:27

Do I have the funding to do that?

302

: 00:15:29

So that I don't sail by default

because you and I've talked,

303

: 00:15:34

what's the, like, what is it?

304

: 00:15:36

80%?

305

: 00:15:37

You, you had done some research.

306

: 00:15:39

80 percent of coaching businesses

307

: 00:15:41

fail

308

: 00:15:42

in the first first three years.

309

: 00:15:45

And the number one reason, poor planning.

310

: 00:15:49

Not

311

: 00:15:50

John: Yeah.

312

: 00:15:50

I think

313

: 00:15:50

Angie: go ahead.

314

: 00:15:51

They

315

: 00:15:54

John: whilst we're on mindset

where we want to go with this is

316

: 00:15:57

something that I've observed as

well and to some degree experience.

317

: 00:16:01

If you are not.

318

: 00:16:02

Operating your business as a business

owner, should you are not going

319

: 00:16:07

to feel like a proper business

owner, you're not going to feel

320

: 00:16:11

authentic in what you're doing.

321

: 00:16:12

There's going to be that little

part of you that knows you're

322

: 00:16:15

not really taking care of things

in the way that you should be.

323

: 00:16:19

And therefore you're not.

324

: 00:16:21

Living your authenticity for

yourself, for your clients.

325

: 00:16:25

Hmm, that's going to have

some knock on effects for you.

326

: 00:16:28

So this is one reason why this

is really important to address.

327

: 00:16:31

I've seen people come

unstuck with this stuff.

328

: 00:16:34

I've seen people who are supposed

to be top level coaches have

329

: 00:16:37

multiple cards fail when trying to

pay for things because they haven't

330

: 00:16:42

really looked after their finances.

331

: 00:16:44

They talk a good game, but they

332

: 00:16:46

don't

333

: 00:16:46

walk their talk.

334

: 00:16:47

Angie: look at the window dressing.

335

: 00:16:49

You know me.

336

: 00:16:49

I love that saying.

337

: 00:16:50

It's the, what do I look

like from the outside?

338

: 00:16:52

Look at my new business card.

339

: 00:16:53

Everybody check out my new website.

340

: 00:16:55

Look at this.

341

: 00:16:56

Look at that.

342

: 00:16:56

Look at all the shiny objects.

343

: 00:16:58

And the business is happening.

344

: 00:16:59

I think one of the things that I

tell my clients that are business

345

: 00:17:03

owners are transitioning and many,

many of my clients have actually

346

: 00:17:07

transitioned out of super high level

jobs careers and pickup coaches.

347

: 00:17:13

So I think that's a good thing.

348

: 00:17:15

And I caution them and say, I know you've

been working for this company at this

349

: 00:17:18

level doing these things, but you're not,

you've not been a business owner yet.

350

: 00:17:23

So here are some of the best practices.

351

: 00:17:24

So the first thing is.

352

: 00:17:26

What is your goal right?

353

: 00:17:27

Ultimately, how do you

want this business to look?

354

: 00:17:29

Secondly is do you have the money?

355

: 00:17:32

Do you have the seed money to thank

you, to Get you through that tough time

356

: 00:17:39

Because the failure isn't that you're do

you don't have a good product or you're

357

: 00:17:42

not a great coach most of the time The

failure is we've run out of money I have

358

: 00:17:46

to just now I'm stuck now I have to stay

there went that dream and that's not true.

359

: 00:17:51

It's simply just not true It's just that

sometimes we go out things with that

360

: 00:17:56

Yeah, you know letting the bucking bronco

out and you know do its thing But we're

361

: 00:18:01

forgetting about what needs to go on You

need to be the ceo of your own business.

362

: 00:18:06

You need to treat yourself and say, okay

if I were being watched right now by

363

: 00:18:12

a CEO or high level person, would I be

doing anything differently in my business?

364

: 00:18:18

And you need to be that person and not

give yourself that, that slack of like,

365

: 00:18:23

well, you know, this happened and that

366

: 00:18:25

happened.

367

: 00:18:26

It's a business.

368

: 00:18:27

When you open those doors, you need

to be ready for business and taking

369

: 00:18:31

on the customers, so to speak.

370

: 00:18:34

Clients.

371

: 00:18:35

John: could be a sign that

you need a business coach.

372

: 00:18:37

If you haven't taken care

of this stuff, right.

373

: 00:18:40

And and don't think, Oh, I

don't know if I can afford it.

374

: 00:18:43

It's like, well, that's going

to be a worthwhile investment.

375

: 00:18:45

If it gets you ahead of the crowd

way sooner, because you know,

376

: 00:18:48

that's what coaching is for, um, for

getting the shortcuts, getting you

377

: 00:18:52

to the results quicker with people

who've already trodden the path and

378

: 00:18:56

can help you get there, but yeah.

379

: 00:18:59

Now, just from the whole mindset

perspective of this is Run your

380

: 00:19:03

business like a business whether

it's full time or part time.

381

: 00:19:05

You still need to show up for it as a

business And I know I see it's not just

382

: 00:19:10

with coaches, but with people who do

like multi level marketing businesses

383

: 00:19:14

and things like that and You know those

kinds of businesses often will make

384

: 00:19:18

lots of big promises about oh You're

gonna have all extra time back because

385

: 00:19:22

you'll be spending time with your

family and people going to The vast,

386

: 00:19:25

but we know that the vast majority

of people who do these things end up

387

: 00:19:28

spending more money than they ever make.

388

: 00:19:30

And a big reason for that is because

the people who do well are the ones

389

: 00:19:34

who treat it like a business and put

in the effort and the action that

390

: 00:19:39

needs to happen to get the results.

391

: 00:19:41

And most people are not

prepared to do that.

392

: 00:19:43

Just know if you're

going to have a business.

393

: 00:19:46

It's a big responsibility.

394

: 00:19:48

It's a lot of work and it's

not just showing up and

395

: 00:19:50

doing the bits that are nice.

396

: 00:19:52

It's also showing up and doing

the rest of it as well to

397

: 00:19:54

have

398

: 00:19:55

that business.

399

: 00:19:56

Angie: Yeah.

400

: 00:19:56

Absolutely.

401

: 00:19:57

And I do, listen, I think one you hit it

on, and I'm not trying to be redundant,

402

: 00:20:02

but I do think that if you don't have

any business experience other than,

403

: 00:20:08

The organization that you work in or

whatever that it is worth hiring somebody

404

: 00:20:13

a professional whether it's a business

coach or a Financial professional

405

: 00:20:17

at least to say to you at least get

this portion of it in place, right?

406

: 00:20:21

Let's like, you know set your goals

figure out how to work that backward

407

: 00:20:25

right any journey any journey We

always need to know where the end is

408

: 00:20:29

so that we know how to get there Right.

409

: 00:20:31

If I say I'm going to fly to Spain

to see John, well, I'm hoping that

410

: 00:20:35

the airline knows the best and

the shortest way to get there.

411

: 00:20:38

So we don't run out of fuel along the way,

like it sounds funny, but that's really

412

: 00:20:43

how we need to treat our businesses.

413

: 00:20:44

How are we going to get to that

destination that we want and create,

414

: 00:20:50

I think this is something that

I didn't say earlier, but super

415

: 00:20:54

important to do it earlier than later.

416

: 00:20:57

I wasn't certainly making any excuses

that oh, I didn't have technology.

417

: 00:21:01

I did the best that I could, but I

definitely was not anywhere near doing

418

: 00:21:05

it as a professional because again, what

did I know about business ownership?

419

: 00:21:10

And my first business wasn't

actually coaching, I had

420

: 00:21:14

other businesses before that.

421

: 00:21:16

Now I'm like, oh, you have

to do all these things.

422

: 00:21:18

I have a list.

423

: 00:21:19

I actually just handed it to a

neighbor the other day and said,

424

: 00:21:22

here's what you need to do.

425

: 00:21:24

There are some serious best practices

that will keep us out of the weeds.

426

: 00:21:28

We definitely need to pay our taxes.

427

: 00:21:30

That's another thing.

428

: 00:21:32

That's a mistake people make because

they feel like, well, whatever

429

: 00:21:35

I earn, I keep.

430

: 00:21:36

Well, you're embezzling from yourself,

431

: 00:21:38

you know, essentially,

432

: 00:21:41

John: And you might think that

you're hovering under the radar.

433

: 00:21:44

Maybe you'll get away with it,

but then again, maybe you won't.

434

: 00:21:48

And if you get caught with that, well,

I'm sorry, but you're pretty much fucked.

435

: 00:21:53

And that's just the reality of it.

436

: 00:21:55

I might have to beat that word out,

but that's just the reality of it.

437

: 00:21:59

It's going to screw you up

for the rest of your business.

438

: 00:22:01

And it's going to mean people can't

trust you if they can find like.

439

: 00:22:06

Felony tax evasion charges or anything

like that against your record.

440

: 00:22:10

Not a

441

: 00:22:10

good

442

: 00:22:10

look

443

: 00:22:11

Angie: No, but you know what I

think for most people though,

444

: 00:22:13

John, it comes out as ignorance.

445

: 00:22:15

I think that they feel like,

oh, if somebody is paying me.

446

: 00:22:18

Let's just say five thousand dollars.

447

: 00:22:20

Well, that's my money.

448

: 00:22:21

Well, it is your money, but they're

like, but I'm not making any other money.

449

: 00:22:24

I need every penny of that

to keep the lights on.

450

: 00:22:27

Guess who doesn't care though?

451

: 00:22:28

John: the

452

: 00:22:29

taxman.

453

: 00:22:30

Angie: They don't care.

454

: 00:22:31

So you definitely need to make sure

that, and again, I'm not a CPA and

455

: 00:22:36

I don't play one on TV, but for like

right out of the gate, if there's

456

: 00:22:40

one thing you walk away with from,

walk away from this session today.

457

: 00:22:45

Is to take out money, put that money aside

so that you're not going to get yourself

458

: 00:22:53

into other troubles along the way.

459

: 00:22:55

That is the last problem that

460

: 00:22:56

you

461

: 00:22:56

need.

462

: 00:22:58

John: So here's something I

want to recommend for people.

463

: 00:23:00

'cause we talked about all the

things not to do and on some

464

: 00:23:03

of the best practices to do.

465

: 00:23:05

I wanna give you a great resource.

466

: 00:23:06

It's a book by Mike IC and

it is called Profit First.

467

: 00:23:11

And it is all about managing your

finances and having like different

468

: 00:23:15

like buckets or pockets to put your

money into to make sure you do.

469

: 00:23:19

Put the money aside for paying

your taxes that you do build your

470

: 00:23:23

business in a way that's going to

help you get into profit rather than

471

: 00:23:26

just keep pumping money into it.

472

: 00:23:29

Definitely take care

of that side of thing.

473

: 00:23:30

Profit first is the name of the book.

474

: 00:23:32

We'll put a link in the show notes for

anyone who wants to go and check that

475

: 00:23:35

out, but it's a great book and it will

help you manage your business finances,

476

: 00:23:39

neither of us are business accountants

or CPAs as Angie has said, but we have.

477

: 00:23:43

Businesses and we have been

coaching for a long time.

478

: 00:23:47

We know what the issues are that

you're going to come up against.

479

: 00:23:50

But I think we pretty much,

bang this one to rights today.

480

: 00:23:53

And more than anything else stay on

top of this and take some action.

481

: 00:23:57

And don't, don't just let this

sort of keep going as something

482

: 00:24:00

that I'll get to it later.

483

: 00:24:02

Or as you say, no, I

need the money right now.

484

: 00:24:04

So, well, uh, just going to have

to deal with the reality of.

485

: 00:24:08

Maybe coming a bit short and

figure out what you're going to

486

: 00:24:12

do to correct that rather than

487

: 00:24:14

having potential issues

with the tax office

488

: 00:24:17

at

489

: 00:24:17

some point in your

490

: 00:24:18

Angie: Sure.

491

: 00:24:18

Absolutely.

492

: 00:24:19

Awesome.

493

: 00:24:21

John: Excellent.

494

: 00:24:22

Let's wrap things up there, but

we will be back again very soon

495

: 00:24:24

with another episode tackling some

of the issues around coaching.

496

: 00:24:28

In fact, I think in our next episode,

we're going to be talking about how to

497

: 00:24:31

launch

498

: 00:24:32

your coaching business.

499

: 00:24:33

Will you hope you'll

500

: 00:24:34

be joining us for that.

501

: 00:24:35

So from myself at Angie,

502

: 00:24:37

bye for

503

: 00:24:37

now.

504

: 00:24:38

Angie: See ya!