July 2023 Income Report: Montana Mastermind, and more!

0:01Boom! Shake the room, Fire Nation. JLD here and welcome to Entrepreneurs on Fire. brought to you by the HubSpot Podcast Network, the audio destination for business professionals with great shows like Success Story. Today is the income report for July of 2023, and we have a lot to talk about. That includes the wilderness of Montana. All that and more when we get back from thanking our sponsors. The Gold Digger Podcast, hosted by Jenna Kuchar, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. The Gold Digger podcast helps you discover your dream career with productivity tips, social strategies, business hacks, inspirational stories, and so much more.

0:43One of my favorite recent episodes is titled, How I've Built an Unmatched Team Culture, an insanely important topic for all business owners to dive into. Listen to Gold Digger wherever you get your podcasts. All right, Fire Nation, we are back. We are on fire. And our July 2023 income at a glance is as follows. Our gross income for July was$138 ,973. Our total expenses were$15 ,953 for a net profit of$123 ,020 for a$32 ,698 less difference than June. But our net profits to overall gross revenue percentage was 89%. Loving these numbers. Definitely focusing on those as we go forward. And Fire Nation, we have a lot to talk about today.

1:34As I mentioned in the intro, we've got our tax tip, we've got our legal tip, we've got the Montana wilderness and more. And we're going to kick off with Ron's Mr. CPA on Fire himself, his monthly tax tip, which is a mid-year check-in. So Ron, take it away. Hello, John, and hello, Fire Nation. This is Ron Parisi with CPA on Fire coming at you with your July report. 2023 tax and accounting tip. Hey, this month, Fire Nation, we're going to be doing a check-in for you entrepreneurs, business owners, side hustlers. I thought it would be a good time, right? So June 30th, just a month away, everybody should have their six months in the can, as they say, with your accounting and financial statements.

2:27Should have a pretty good idea how the first half of the year went thus far. So I was just going to check in one sort of with your financials, two, your tax plan, and then three, I just want to talk a little about some things I've been observing. So first of all, like we said, so we got six months down as far as the financial reporting, could be seven. Here we are in mid-August by the time this podcast is being released. um i just want to see where are you guys you know budget to actual so get a really good idea you know pull out the budget should be tracking that budget to actual every month but if you haven't been let's pull it out let's take a look i still think here in the month of august there's there's an ability to redo the last four months of the year i think it's important hey if things uh if blew your numbers out of the water okay let's recalibrate let's not leave any money on the table uh the last four months of the year or hey if we're a little behind or we're majorly behind now is the time to look and see what we can do the last four months of the year so number one let's look at the budget to actual if there needs to be let's redo the last four months of the year for a revised budget.

3:49And let's see what we can do the last four months of the year. Two is our tax plan, right? September 15th is our third quarter estimate due date. One, okay, have we have the cash available to make that payment? Two, do we have the voucher? Do we know how we're going to make that payment? We're going to make it on time. And then also it's a good time to relook at your tax plan and are we you know have we done some meetings at the house with the Augusta rule have we done some traveling that needs to be reimbursed before the end of the year so these are things you know you should be looking at your major tax plan your strategy and seeing what still needs to be done between now and the end of the year obviously the Augusta rule the reimbursements, just two small strategies, but just really just, you know, you should have a tax plan in place and making sure that everything that needs to get done gets done and there's not a mad rush in December.

4:53And then the last piece I just want to talk to you guys about, and that's I met with a prospect recently and this person got on the phone completely exhausted. and I just go back to, I guess, our philosophy at CPA on fire. And that's your business or businesses should be your personal wealth building machines. You should not be a servant to your business. Your business should serve you. And I know that's a fine distinction, but I really think that it's a mindset about how you run your business, how you allow your business to get into your daily activities, your time, you know, do you time block?

5:46Do you allow different activities to seep into your activities during the day? So I think it's something that, you know, we should all just kind of take a step back. Is our business serving us or are we serving our business? And again, you know, at CPA on Fire, we preach your business should be your personal wealth building machine. So just some food for thought. Fire Nation, always a pleasure to be with you. Again, Ron Parisi with CPA on Fire. Look forward to being with you next month. Take care now. Ron, as always, thanks for rocking the mic, brother. Thanks for dropping an amazing value bomb.

6:22And now we're moving on to David Lizabram's July legal tip, which is how to determine the fair market value of a small business. David, what's up, brother? Take it away. What's up, Fire Nation? David Lizerbram here, and I'm excited to be back with another legal tip for you. I've been practicing law for 21 years, and I have loads of free content over at LizerbramLaw.com. This month's legal tip is all about how to determine the fair market value of a small business. So clients often ask me about how to figure out the fair market value, or FMV, of a small business. On one level, the goal is to establish a price that a willing buyer and a willing seller would agree to in an open and unrestricted market.

7:06There are a variety of ways to establish fair market value, and the choice of valuation method depends on the business and the reason for the valuation. For example, let's say you're in a two-person company and your partner wants to leave. They've offered to let you buy them out of their share with the price being based on the fair market value, but what value are we talking about? The value of the business today with both partners working in the business or the value after the sale when the size of the workforce has gone down by 50 percent this is just one example of the complicated nature of what seems like a simple question that said here are some common methods of determining the fair market value of a small business along with some of the pros and cons of each approach let's see there's the asset-based valuation so this method looks at the business's tangible and intangible assets.

7:53It calculates the cost that it would take to replace all the physical assets like real estate, equipment, inventory, and intangible assets like brand value, patents, copyrights, good customer relations. Liabilities are subtracted from that sum. Then you find the asset-based value. That's why we call it asset-based valuation. This method is best used when a business has significant tangible assets. So it's commonly used in industries like manufacturing or retail. It might be less useful in, for example, a two-person consulting business. Next one is income valuation. This method uses the company's financial prospects to determine the business value.

8:32The discounted cash flow is a commonly used income valuation method that estimates the value of an investment based on its future cash flows. The discounted cash flow analysis finds the present value of expected future cash flows using a discount rate, meaning, you know, a dollar 10 years from now is worth less than a dollar now. A higher discount rate indicates a higher amount of risk associated with an investment. This method is often used for businesses with strong, predictable cash flows, like service businesses. You know, let's say you're servicing, doing something servicing grease traps in restaurants.

9:07Okay, well then you kind of know there might be some variation. You might lose a client, gain a client, but over time the cash flow is fairly predictable. Next method would be market-based valuation. This method estimates business value based on what similar companies sell for. So you could say, oh, a similar type of company like this sold last year. It was about this much, so mine is similar. The problem with this method is it can be hard to find comparable sales data for small businesses. Most of them are private sales. The price may not be public. So this method might be more appropriate in industry with a lot of transaction activity or something that's very public.

9:49The last method I'll talk about is the earnings multiplier. This is often used for businesses that have a solid history of earnings. It's based on the principle that a business's value is worth a multiple of its profit. This multiple can depend on the industry, the economic environment, and other factors. And it may not be workable in a new business or one where future earnings are hard to predict or depend on the specific people working for the business. So as you saw, each method has its strengths and weaknesses, and they often produce different results. So it might be advisable to use several methods to reach a more comprehensive understanding of a business fair market value.

10:24Employing a professional business appraiser is another option. they can provide a detailed analysis that can be presented to potential buyers or lenders adding credibility to the stated business value meaning you just said something okay why would they believe you but uh you have a professional appraiser come in okay now there's some additional credibility if you have legal questions about your business feel free to be in touch with me david at lizabramlaw.com l-i-z-e-r-b-r-a-m-l-a-w google anything close to that and you'll find me and i'm always happy to talk with members of fire nation and i will talk with you next time Thanks a lot.

10:57As always, David, thank you for dropping those value bombs, brother. And Fire Nation, make sure you check David out for all of your legal tips. All you need to do is head over to Lizerbramlaw.com, and he is more than excited to chat with you. And we have a lot to talk about when we get back from thanking our sponsors. If you're anything like me, then you're looking forward to a lot of outdoor time this summer. I'm talking about hitting the pool, going on epic hikes, and maybe even getting in a few pickleball matches. But in order to do all that, you and your team need to work smarter, not harder.

11:32That's why we're so excited about HubSpot's integrated AI tech. It's helping teams automate the more tedious parts of running a business. With AI-powered tools built into HubSpot CRM, you can do research, pull reports, and write copy in a flash. In fact, recent research shows that marketers are already slicing time spent on manual administrative tasks in half thanks to AI. from five hours to 2.5 hours a day, which amounts to almost four weeks of saved time per year. And with four weeks of your time back, you could be enjoying a lot more pool time, hiking, and pickleball. So what are you waiting for?

12:07Learn more and get started today at HubSpot.com. All right, Fire Nation, we are back. And our interview of the month is leveraging an assistant will change your life and maximize your time to drop these value bombs. We brought Tricia onto the mic, and she dropped value bombs, Fire Nation. Please go back and check out this interview. We talked about as we grow our business, how we need to figure out what it means not to hoard all the work and don't accept that you must wear all the different hats. You are not the sole person to spin all these plates at the same time, Fire Nation. Also, how trust doesn't need to be earned.

12:44Give it away until people prove you otherwise. And the last value bomb is that in order to elevate, you need to delegate Fire Nation. and Fire Nation. These are all wise words from Trisha. Now let's move on to the Montana Mastermind. This was a digital detox that I thoroughly enjoyed doing. I mean, I got to be honest, I'm pretty intentional on a day-to-day, week-to-week, month-to-month basis. I've taken time just sitting by the pool, looking at the Caribbean, having the Caribbean breeze blow in my face and just breathing, relaxing, thinking. But at the same time, listen, there's always a phone next to me.

13:21There's always a laptop on my lap. There's always some kind of screen right in front of my face or very close by. And none of that happens on my Montana Masterminds with Carrie Jack of The Happy Hustle. We had a great podcast interview a couple months ago where we welcomed Fire Nation to join us on this incredible Montana Mastermind journey where 15 individuals, all men. We tramped into the tobacco root trails up in the Montana wilderness, so, so, so far away from any digital screens, from any connections. Of course, we had one satellite phone in case of extreme emergency, but we were just out there for four nights, five days in the Montana wilderness, and we disconnected with nature.

14:10We went cold plunging every night, every day actually, in the Alpine Lake. At night, we had celestial navigation lessons. I did my first fly fishing lesson ever and caught my first ever fish from fly fishing. A beautiful brook trout, which I then had for dinner, which was a cool experience. I learned how to shoot a longbow, how to start a fire, how to build a shelter. There were so many amazing things that I did. It was such an awesome and fulfilling five days in the Montana wilderness. So I want to thank Cary of The Happy Hustle for putting this together. Such an amazing trip. And if you want to learn more about Cary and what he does over at The Happy Hustle, just Google The Happy Hustle.

14:52Check out his podcast, The Happy Hustle. Just go ahead and Google Cary Jack and you'll learn all about him. He's got a lot of cool things going on. And the pictures that I have at eofire.com slash income 119 for 119 are epic. So please go check out those photos. you'll get to see some unbelievable pictures of me in the Montana wilderness. You get to see my brook trout that I caught and all the fun that I had. Fire Nation, the July 2023 income breakdown is as follows. Our product and service income was$134 ,900. Our total journal sales were 59. We did 35 freedom journals, 13 mastery journals, and five podcast journal digital packs.

15:39Podcasters Paradise brought in a little over$11 ,000. Our podcast sponsorships was at 121K and our affiliate income was just over$4 ,000. Our total expenses was$15 ,953. And of course, we list all of those out at eofire.com slash income 119. So check those out. And now we're finally going to hear from Kate Lynn Erickson Dumas. She's going to talk about the biggest lesson learned from the month of July 2023, which is all about being intentional. So Kate, take it away. What's up, Fire Nation? Excited to be hopping on the mic here at the end. And I'm going to be taking a page from John's book this month because one of the biggest things that stood out to me from his time in Montana when he got back and was recapping this epic adventure was his emphasis on doing a digital detox.

16:40When he was talking about this, I realized that I haven't done a digital detox in a really long time. And it's not because I don't like doing it. I actually love digital detoxes, but it's really because I haven't been intentional about it. I honestly haven't even thought about it until hearing John talk about it. And it reminded me that there are probably a number of things that we quote unquote want to see or do in our lives, but nothing happens without you taking charge and putting intention behind it. So if you want to do a digital detox, schedule it. If you want to take a week long vacation with your family, book those tickets.

17:19If you want to read more, set aside 30 minutes each day for it. I've been doing this as well. I kept catching myself talking to people saying, yeah, I wish I read more. And I kept saying that over and over again. And it's funny how sometimes we don't even catch these cues from ourself. If I want to read more, then all I need to do is start scheduling the time to read more. Same with exercise, schedule a weekly walk with a friend, join a gym. There are so many small steps that we can take in order to be more intentional about putting the things in our lives that we say we want. If we're not intentional about the things that we say we want, and by intentional, I mean actually scheduling time on our calendars to do it or, you know, putting down that money at the gym or booking those tickets for the family vacation, then it's probably not going to happen because it's way too easy to not think about these things very often or to push them to the back burner because life is busy and we'll get to it later.

18:20But if it's really important to you, then you will be able to find the time. So Fire Nation, what's one thing that you want to be more intentional about this month? I highly encourage you to sit down and think about it, actually schedule some time in your calendar to make it happen, and you will not be sorry. Fire Nation, wise words from a wise human being. And until next month, keep your fire burning. The Gold Digger Podcast, hosted by Jenna Kuchar, is brought to you by the HubSpot podcast network, the audio destination for business professionals. The Gold Digger podcast helps you discover your dream career with productivity tips, social strategies, business hacks, inspirational stories, and so much more.

19:01One of my favorite recent episodes is titled How I've Built an Unmatched Team Culture, an insanely important topic for all business owners to dive into. Listen to Gold Digger wherever you get your podcasts.