Beginning Balance

Mark and Jesse share their personal investment asset allocations, and discuss the role of risk, risk tolerance, and emotions in the investing life of a business owner. Jesse explains how his personal risk tolerance has changed alongside the growth of YNAB, as his net worth became more and more tied to the value of the company, and how that has influenced his ultra low risk investment portfolio.   Books mentioned in this episode: The Little Book of Common Sense Investing by John Bogle The Four Pillars of Investing by William Bernstein A Random Walk Down Wall Street by Burton Malkiel How I Invest My Money edited by Joshua Brown and Brian Portnoy   Mark Butler, Virtual CFO https://markbutler.com https://letsdothebooks.com   You Need a Budget https://www.youneedabudget.com

Mark and Jesse tackle the common business saying: "if you're not growing, you're dying!" Is that really true? And what exactly does growing and dying mean exactly?   Mark Butler, Virtual CFO https://markbutler.com https://letsdothebooks.com   You Need a Budget https://www.youneedabudget.com

Do you cringe when it's time to close the books? Are you frequently frustrated by an accounting problem, or certain tasks your bookkeeper is asking you to do? You've got messy books, and as Mark and Jesse argue, it likely means you've got a messy business as well.   Accounting should be boring and repetitive, Mark says. When onboarding new clients for his bookkeeping business, he spends a lot of time upfront gathering information and creating systems so that, a few months in, the accounting process is fast, accurate, and as painless as possible. There's two lessons in this: 1.) accurate books indicate that the upstream process of the business -- marketing, sales, pricing -- are tight and well defined, and that the business is not taking on too many custom or one-off orders, and 2.) for the service provider, in Mark's case his bookkeeping service, a streamlined system leads to more profit, less frustration, and less burnout. Even service providers are in the business of manufacturing, Jesse says, they are manufacturing a service or experience. Edge cases and messes clog up the manufacturing process and create frustrations.

Gather round folks, let's have a meeting... about meetings. Many people hate them, but they are a necessary part of business communication... and unfortunately meetings often become disorganized and bloated, leaving employees frustrated and less willing to invest their time in preparing for and participating in meetings in the future. Jesse thinks meetings get a bad rap, however, and offers some suggestions on how to run more effective, efficient meetings in your business.   Mark Butler, Virtual CFO https://markbutler.com https://letsdothebooks.com   You Need a Budget https://www.youneedabudget.com

Mark and Jesse discuss the hiring process at YNAB, where the stacks of cover letters are deep and competition is fierce. How do they differentiate candidates in the first round? How do they weight employee referrals? What's the most important factor in finding the right "fit" in the final round of applicants? Jesse answers these questions and explains why hiring managers should be excited about every hire they make.   Mark Butler, Virtual CFO https://markbutler.com https://letsdothebooks.com   You Need a Budget https://www.youneedabudget.com

There are some common sayings in the business world -- "if you're not growing, you're dying" or "innovate or die" -- that suggest business owners must always be looking for the next big thing that will propel growth. The truth is, it's HARD to find things that will move the growth needle. Whether it's new menu options at a restaurant, new services or products, or ancillary things like customer educational resources or new marketing initiatives, there are any number of "new shiny" things that businesses can do to try to grow.   All of these things take resources, however, and Mark and Jesse discuss how to determine which things are worth doing and which things are resource-wasters.   Mark Butler, Virtual CFO https://markbutler.com https://letsdothebooks.com   You Need a Budget https://www.youneedabudget.com

The podcast discusses the best indicators for business growth, the importance of consistent patient action, the concept of lead measures, and the role of luck in business success.

This podcast explores the pitfalls of viewing a team as a family and emphasizes the importance of recognizing team members as individuals. It discusses the purpose of a company and the role of a manager in professional growth. The chapter also explores the concept of defining company purpose and finding alignment. Additionally, it offers advice on how to support team members who no longer feel the team is like a family.

The podcast explores the book '4,000 Weeks' and its examination of mortality and time. It discusses the challenges of finding satisfaction in a world of infinite possibilities and the importance of prioritizing activities. The concept of budgeting as a theory of desire is explored, as well as embracing limitations instead of constantly striving for efficiency. The chapter focuses on finding contentment in making choices and the detrimental effects of FOMO. Strategies for reducing unnecessary emails and exploring alternative communication methods are discussed. They emphasize the importance of being present in the moment and finding value in daily life.

Mark and Jesse discuss the value of forecasts, models, and annual planning. They emphasize the importance of future-oriented planning while cautioning against rose-tinted forecasting. The chapter explores the concept of scarcity in forecasting and the importance of considering peaks and valleys in cash flow. They reflect on their annual planning process and discuss challenges of rapid growth and the impact of the pandemic. The speakers also discuss books, dialects, and correct pronunciation. They emphasize the significance of forecasting and planning in making informed decisions and touch upon challenges of coordination.