In this episode of Business Lunch, we walk you through the ins and outs of managing business finances. We explain the potential pitfalls of keeping more than a month's worth of operating expenses in the account. We explain how that can lead to complacency and unnecessary spending. We also explain how business can cover unexpected events and tricky payroll situations, like those pesky months with three payroll cycles or prepaying for holidays. We go beyond the glamor of being an entrepreneur to the real details behind the scenes.
Highlights:
"We're very big on lifestyle and freedom and all those kinds of things. But it's also important to acknowledge that it's not a perfect situation very often."
"There are times when things are absolutely amazing. And there's times when things could frankly be a hell of a lot better. And I think that's called life. I think that's called entrepreneurship"
"If we're buying a business, I hate the agreement part. I love negotiation and strategy. But when it comes to reading a 75-page document, I just absolutely can't stand it."
Timestamps:
00:00 - Operating Account Insight
01:15 - Personal Calendar Reflection
02:15 - Acknowledging Imperfections
03:15 - Loving Strategy but Hating Legal Work
06:52 - The Reality of Entrepreneurship
07:39 - Cyclicality in Business
08:54 - Handling Excess Profit
10:20 - Minimum Operating Reserve
10:37 - Importance of Operational Cash
10:44 - Prepaying Payroll Challenges
Connect with me on social:
Resources:
• 7 Steps to Scalable workbook
• Get my book, Zero Down, FREE
Mentioned in this episode:
Build Your CEO Dashboard
Get one report every week of the key metrics you need to know with the CEO Dashboard!
CEO Dashboard
