May 2024 Income Report

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 great podcasts like The Product Boss. Today, we are talking about the income report for May of 2024. And we have some really fun things to chat about today on this episode when we get back from thanking our sponsors. Hustle and Flowchart, hosted by Joe Feer, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. Join Joe as he discusses systems, mindset tweaks, reframes and strategies to help you build a business that gives you freedom and fuel for your life.

0:39A recent episode on using AI for effortless content creation is a must listen. Listen to Hustle and Flowchart wherever you get your podcasts. All right, Fire Nation, we are back and we are ready for a fantastic episode. And we're going to start with the income at a glance. Our gross income for May was$194 ,452. Our total expenses were$12 ,327. Our total net profit was$182 ,125, which is a$64 ,000 increase between April and May for a percentage of net profit to overall gross revenue of 94%. If I'm not mistaken, that is our highest percentage yet. So we are fired up about that. And we have a lot to talk about.

1:24We are going to start with Mr. CPA on fire himself, Ron, who's going to talk about mapping out your long-term and annual tax strategies. Ron, take it away. Hello, John, and hello, Fire Nation. This is Ron Parisi with CPA on Fire for your May 2024 tax and accounting tip brought to you by CPA on Fire. Hey, Fire Nation. Hey, John. Always great being with you. topic of the month is going to be when do we do tax planning and throughout the year. So just hopefully by this time, you know, right, CPA on Fire, we're an accounting and tax firm specializing in online entrepreneurs who are growing significantly, have a desire to grow, and we help them navigate that process.

2:19We specialize in forward-looking financials. And what that essentially means is we work with our clients and their goals and we map out, we take their goals and we map out a financial plan going forward. And we give them clarity on how they accomplish those goals and navigate that through their financials, right? A lot of different pieces to that. But today we're going to be talking about what we do with our clients from a tax strategy perspective. So the first thing is we look at tax strategy on kind of two planes, one long term, next three to five years, and then short term, essentially the annual tax plan.

3:06And by this time, here we are, we're in June, right? I'm hoping that by this time, you as the entrepreneur have your long-term tax strategy mapped out, right? So you guys know, you know, what are your goals for 24, 25, 26, maybe 27 as far as revenue. You have a pretty good idea what those expenses and what the cash is going to be needed to meet those goals. And you have that mapped out. Again, we're always looking at not where you are today, where you want to be tomorrow and in the future. And by this time, hopefully we have your annual tax plan, all your different strategies that you're going to be implementing this year.

3:52So by this time, usually in the May-June time frame, we're sitting down with our clients. We are revisiting the long-term tax strategy, and we're really ironing out that annual tax plan. So that's sort of the first meeting, really kind of seeing, okay, how's 24 going for the business? Where are we headed? And what are we going to do to reduce your tax liabilities? The next is probably by the end of the summer. I call it the implementation meeting. This is we look at your different tax strategies and we say, OK, how are we going to implement these? What are the necessary record keeping items? So if you have an accountable plan, what are we doing reimbursing you?

4:46What are we doing to track all your expenses? We're looking at salaries. We're looking at withholdings, looking at possible R &D, Augusta rule, documentation, estimates, things like that. So really just, you know, during the summer meeting number two, we're just making sure that we're on track, getting all those little headache items out of the way, reducing that off your plate. Again, always giving the entrepreneur you as much time as possible to drive forward the business. usually the end of quarter three. So you figure September, October timeframe. What we do is we look at the financials, right?

5:29Let's catch up the financials maybe through Q3, nine months out of the year. Where are we? Where are we with our projections? How do we do with our tax safe harbors compared to the tax projections we've been doing throughout the year and kind of true that up. Again, no surprises come April 15th when the tax bills due. Then the last meeting we have of the year, and that's usually mid-December. That's really just last minute looking at bonuses, maximizing QBI, making sure, you know, we get everything we need to do done rather with prepaid, you know, harvesting losses, things like that. that's a pretty comprehensive meeting and again doing another tax projection making sure that there's no surprises come April and regards the cash flow making sure we have enough money to pay the taxes so there you have it that's I just wanted to kind of give you the a roadmap for what your tax plan meeting should look like your thoughts and again so making sure that we have a long-term and short-term tax strategy, tax plan, looking to make sure we have the implementation, all the record-keeping done, keeping your headaches, the entrepreneur, as low as possible.

6:53At the end of Q3, making sure we're on track as far as projections of your tax liabilities, no surprises. And then Q4, late December, mid-December, making sure we have all those last minute items taken care of. So there you have it. Fire Nation, hope gave you some insight on tax planning and tax strategy and wish you clarity and success until next month. Ron Parisi, CPA on Fire. Thank you very much. No, Ron. Thank you for always dropping value bombs when it comes to taxes and all things that. So Fire Nation, make sure to check out cpaonfire.com for all of your tax and accounting needs, or just email Ron, Ron at CPA on Fire, because he will get to you.

7:42And Fire Nation, today's legal tip is about letters of intent, what buyers and sellers need to know. David, 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 22 years, and I have loads of free content over at my website, lizerbramlaw.com. This month's legal tip is all about letters of intent. Whether you're looking to sell your business or acquire a new one, the letter of intent, also called an LOI, is a critical early step in the transaction process. An LOI is a non-binding document that lays the groundwork for the deal, outlining the key terms and conditions that both parties agree to before proceeding to more intensive due diligence and negotiations.

8:30So from the purchase price and financing structure to contingencies, exclusivity periods, the LOI serves as like a roadmap for the final purchase agreement. It's really an essential tool for ensuring both the buyer and seller are aligned on the essential elements of the transaction. So whether you're the buyer or seller, this is an important piece of that process. Here are some key elements to focus on when you're reviewing or drafting an LOI. Number one, is this a business purchase or an asset purchase? Meaning, will the buyer be purchasing the whole business like a corporation or LLC? Or just some or all the assets of the business?

9:07What about liabilities of the business? Will those go to the buyer along with the sale? These are some things to start working out in the LOI. The next one is the purchase price and structure. The LOI will typically specify the total purchase price as well as how it will be paid. Sometimes it's cash, sometimes it's stock, earnouts, a lot of things like that. Will the buyer be paying cash? Will the seller be financing all or part of the purchase price? Maybe the purchase price could change based on the due diligence process or accounts receivable or things like that. These are all things to include in the LOI.

9:40Next is contingencies and conditions. So you want to outline any conditions the parties must meet before closing, such as, let's say, the buyer securing financing or completing due diligence or obtaining necessary approvals. You want to make sure these terms are reasonable. So another thing to consider is an exclusivity period. Many LOIs include a period of exclusivity during which the seller will agree not to entertain other offers. So if you're the buyer, you want to make sure that the person can't say, oh, you've been doing all this work, you negotiated the LOI, blah, blah, blah, but I just went and sold it to somebody else.

10:15You want an exclusivity period maybe. Well, if you're a seller, you should be cautious about granting lengthy exclusivity as it will limit your negotiating leverage. So the time and the amount of exclusivity and the terms of that need to be worked out. Next to consider is confidentiality and non-compete clauses. So the LOI will likely contain provisions restricting the sharing of sensitive information. So if you're the seller and the buyer wants to look at your books or learn other inside info about your business, you want to make sure that stays confidential, whether or not the sale goes through.

10:48And there could be clauses also prohibiting competition. You may want to make sure that the buyer, if the sale falls through, doesn't just open up shop down the street, so to speak, and compete directly with you. This is very nuanced, and a lawyer really needs to be involved in making sure this is done properly. Transition, assistance, and consulting. So will the seller assist with the transition of the business after the sale closes? If so, how and for how long? Sometimes the seller becomes an employee of the business. Sometimes the seller signs a consulting agreement. These are all things to start thinking about.

11:21Termination and breakup fees. So it's important to understand what events could trigger the termination of the letter of intent, as well as any penalties or fees associated with walking away from the deal. Another thing to consider is an earnest money deposit. So this is a sum of money. Typically, if I was going to give a range, I would say 1 % to 10 % of the total purchase price, although these numbers vary widely, that the buyer will deposit. upon execution of the LOI as a show of good faith and to secure their commitment to the transaction. Without this, a buyer could just sign an LOI and then gather information from the seller, take up time, take up the seller's money in terms of legal fees and other expenses, and then just say, no thanks, I'm going to walk away.

12:03So these are things to consider. But not every LOI includes an earnest money deposit. For a seller, an earnest money deposit can provide valuable reassurance that the buyer is serious about the deal, but buyers If you're a buyer, on the other hand, you want to carefully consider the appropriate earnest money account amount. Too little may not be enough to give the seller confidence, but too much could tie up a significant portion of your capital during due diligence. So you want to find a balance that demonstrates commitment without being overly burdensome. This is another thing that an attorney who's experienced in these areas can assist with.

12:36Regardless of which side of the transaction you're on, the earnest money deposit should be clearly outlined in the LOI, including the specific conditions under which it would be refunded or applied towards the final purchase price. Again, I spent a little bit more time on the earnest money deposit piece than some of the other pieces, but that's because it can be fairly significant. So just to wrap it up, approaching a letter of intent process with a clear understanding of your goals and priorities, that's essential. There's a lot to consider in entering into an LOI. It's not just a standard cookie-cutter document.

13:08You want to make sure you're properly advised and you're doing it the right way. If you have questions about buying or selling a business, please contact me. I'm at LizardBramLaw.com. You can Google David LizardBram Lawyer and you don't have to spell it properly. It'll come up. There's only one of me. And I'm always happy to talk with members of Fire Nation. Thanks a lot. And I will talk to you next time. David, thank you as always for dropping value bombs when it comes to all things legal. And Fire Nation, LizardBramLaw.com is your call to action. If you want to learn more about David and how he can potentially help you.

13:41And Fire Nation, we still have things to talk about like my Gary Vaynerchuk episode, PodFest in Asia, and of course, so much more. When we get back from thinking our sponsors. The amount of software required to run a growing business can be daunting. And how do you even know if you're using the right tools? There's help desk software, payment software, email marketing tools, blogging tools, SEO tools. Well, I've got some great news for you, Fire Nation. You don't need more tools to get more out of your business. You just need HubSpot. Their all-on-one customer platform is a dream come true for every member of your team.

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14:48Visit HubSpot.com to grow better today. This episode is sponsored by BetterHelp. Can you believe we're already halfway through 2024? I mean, time flies, especially when you're head down trying to grow your business. But one thing I've done consistently for the past 12 years is check in on where I'm at with my goals. Now is a perfect time to do that. And therapy can be a huge help when it comes to taking stock of progress and making adjustments for the remainder of the year. That's right. Therapy isn't just for those who have experienced trauma. It can be incredibly helpful when it comes to learning how to set boundaries, leveraging your time most effectively, and getting back on track with your goals.

15:26Not sure where to start? Give BetterHelp a try. It's not only super convenient and flexible, it's also easy to dive right in. Just fill out a brief questionnaire online and get matched with a licensed therapist. Take a moment. Visit betterhelp.com slash fire today to get 10 % off your first month. That's betterhelp.com slash fire. Now we're moving down to what went down in May, the interview of the month. I interviewed none other than Gary Vaynerchuk, otherwise known as Gary V. This guy's a serial entrepreneur, chairman of VaynerX, and five-time New York Times bestselling author. And Fire Nation, in this episode, we talked about how the key is not cash.

16:08The key is passion. Authenticity matters because if you're doing something that is authentic to you, then the audience would know because it's authentic to them and how content itself is the variable Fire Nation, not the number of followers, because the merit of the creative is the game and that level of underpriced attention where there's no cost for distribution, that is so key. and we talk about these important factors, Fire Nation, and so much more. You know that Gary does nothing except drop value bombs, and we have an awesome interview from beginning to end. So check out Day Trading Attention.

16:42This is his new book, How to Actually Build Brand and Sales in the New Social Media World, Day Trading Attention. And Fire Nation, now we're going to be moving on to our virtual assistant, JM, who's been working with us now for over 12 years since Entrepreneurs on Fire has been in existence. She attends PodFest in Asia. And we're going to bring Kate and JM on the mic now to talk about this amazing experience and lessons learned. Hey, what's up, Fire Nation? Excited to be on the mic as always with you for our May income report, Income 129. Wow. Oh my goodness. I can't believe that it's taken 129 income reports for this moment to happen, but we have a very special guest with us here today to talk about her experience at an event that she attended near her home.

17:38And that is our VA, JM, who has been with us for since before the beginning. And I'm so excited to have her on today. I know John and I were talking when we said that we needed to include this in the income report this month. We thought, well, we've got to have JM on to talk about it herself. So JM, say what's up to Fire Nation. Hello, Fire Nation. It's good to be here today. Very excited to have you on, JM. And I can't wait to hear from your own individual perspective how you felt about PodFest and attending this conference. So real quick background, John and I have attended multiple PodFest conferences and put on by Chris Kremotos and they do a fantastic event.

18:29It's usually annually in Florida and maybe like five, four or five months ago, I received an email that and the email title was PodFest Asia. And I thought, what? Like, wow, they're really traveling the globe. And I didn't know exactly where it was going to be, but I opened up the email and I saw that it was being hosted in Manila. And I automatically immediately thought about JM because I know that JM lives very close to Manila. And so I emailed her and said, what do you think about going to this event? I thought it would be so cool for her to be able to attend because JM knows Entrepreneurs on Fire and the podcasting space just as well as I do.

19:12And I really thought it would be cool for her to be able to not only meet some podcasters, but also just experience the world of podcasting from like a new perspective, because this was the first event that you've been to, right, JM? Yes, it's my first time for like a podcasting niche. So yeah, this kind of conference. Okay. And like, what were your, so when I sent you that email and said, hey, this is going to be in Manila, would you want to go? Like, what were kind of your initial thoughts? And what did you think? What did you expect from attending a conference like this? Well, when I received your message, I got excited.

19:53I was so very excited at that time that I still don't know if you're going to allow me to attend. I just already think that, oh, I'm going to attend. They will let me attend that conference. So yeah, I was very excited. I'm already telling my family I'll be attending a podcast conference here in Manila. uh-huh yeah and what what did you expect from the conference like because this was your first podcasting conference were you nervous or did you think like um i'm very excited for the sessions were you very excited to meet people it's it's more of a feeling i could say both excited nervous at the same time because it's it's my um it will be my first time to attend a podcast exclusive conference and though I've been hearing like a lot of interviews from John whenever you and John shares share your experiences with other conference that you attended to I'm already like feeling that oh I'll be meeting a lot of people there so I try to prepare myself on how am I going I mean how how can I introduce myself there?

21:07But basically more of like an excited one. If it's like an 80-20, I'm 80 % excited, 20 % hurt. Well, that is an awesome place to be. What would you say was kind of the biggest surprise for you after having attended? I mean, you've laid out a beautiful recap of your time there that everyone can check out over at eofire.com forward slash income 129. But in your own words, what was a surprise for you after attending? Well, the conference was for Filipino podcasters. So what really surprised me was that despite of some challenges, like for example, Filipinos are like, we are number one video consumers.

21:53And for podcasting, a lot of people are still using audios. So you could see the determination of these Filipino podcasters. It was very impressive. That must have been really cool to experience. Yes, yes, actually. You can see their passion, their resilience, how they turn obstacles into opportunities. It was like discovering something or discovering a treasure or unexpected that is truly rewarding. Very inspiring. Yes, yes. I know that a lot of people already start to do their podcasts here in the Philippines, but I didn't expect that there are more than what I'm expecting. Yeah, that's really cool.

22:42And there were some people from other places too, right? I mean, were there a lot of people from the States or from other areas in Asia? Yes, some are from New Zealand, Australia, from the U.S. Of course, a lot of the attendees are Filipinos. There's one podcast community that most of their members attended the conference. Oh, cool. How many people would you say were there? In the morning, I think we were around 80 to 100. But in the afternoon, it's like, I can say 150 to 170. And the place is not that big. It was a co-working space. Okay. A lot of people really did attend. That's awesome. Yes, yes.

23:30I'm sure Chris and his team had to be very happy about that turnout. That's really cool. Yes, actually. A lot of Filipinos, you can see the enthusiasm. You could really see that they're very eager to meet new people that could really help them. Yeah. Yeah. That's wonderful. Well, I know that on the income report and the recap that you shared that you have many, many takeaways that you came away with. But what would you say is one of your biggest takeaways from the event? Oh, definitely the networking. It's the center stage. Yeah, because right now, if you know what you're going to search, you can easily learn about it.

24:11Like a lot of courses are already offered. YouTube is there. But attending this kind of conference, it is the networking that is truly remarkable. Meeting the podcasters and even the newbies was quite an experience. And what struck me the most is that you could see how welcoming and supportive everyone was. So that's really my biggest takeaway. That has really stood out to me at podcasting conferences since the very beginning, too. It's like this community of podcasters is a very special community. Like everyone is so supportive. Everyone is very inclusive. and you don't ever feel left out of something when you're at an event like this.

25:02Yeah, that's true. It's like you became a member of an exclusive club that is rooting for each other's success. That is a great way to describe it. Yeah. Oh, very cool. I'm so happy that you've had this experience and that you were able to attend. I just think it's so awesome that Chris and his team did this. I'm sure there are some events in your area, but maybe not too many that are that are put on at this level. It sounds like there are other podcasting communities and events going on, but very cool to see there kind of be like a bigger presence of podcasting and something going on like this for you to experience that networking, for you to connect with other Filipino podcasters.

25:45I mean, hopefully you made some connections that these will be people that you stay in touch with. Oh, yes, I did. Some people, I mean, I added quite a few friends now on Facebook. Yeah, some did invite me to be a guest on their podcast. From the conference, two of them already reached out. One is trying to get a schedule. The other one, she's still young. It's like I'm doing a free mentoring now. Well, you were quite the superstar at this conference, weren't you? Well, they were surprised when I told them that I have like a 12 years experience. Yeah. And they were quite surprised that I'm the VA of EO Fire.

26:29There is one podcaster there that I told him that, oh, I'm the VA of John Lee Dumas, EO Fire. Oh, the legend.

26:40So it's not hard. I didn't have a hard time introducing myself when I told them that I am the virtual assistant of EO Fire. And when I told them that we're doing a daily podcast, they were very surprised on how we were able to pull something this kind of big. So, yeah, they're asking me, what's the secret sauce? What's the magic? And they couldn't believe it that we were just a team of five. They were very surprised that we were able to operate this week. What did you tell them is the secret sauce? Of course. It's, how can I say, a system plus a lot of discipline. Yep. Yes. Well, that's so awesome, JM.

27:33Thank you again so much for sharing your experience. Thank you for attending the conference. I'm really happy that it worked out and that the date that they were doing it worked out for you. You were able to go up there, then share it with us here. So if anyone wants to check out way more details, JM has laid out her entire experience and she also shared key takeaways from all the sessions that she attended. So if you're interested in podcasting, definitely check that out. Again, eofire.com forward slash income 129. And JM also has some awesome pictures that she's going to be putting up over there.

28:07So you'll get to see JM rocking PodFest Asia right there in our income report. JM, anything else that you want to share before we say goodbye? Well, I'll be looking forward to attend more of this whenever we have something like this here in Manila. And I'll be very excited to share and apply all the things that I'll be learning in these conferences to EO5. But to be honest, I think 99 % we're already doing. That's a pretty good feeling, right? Yes, yes. We're on the right track. Yes, definitely. Well, we are on the right track in big part thanks to you and all of your contributions to the team.