CPA here. I work with small business owners with their Tax and Accounting. When I heard the guy complain about his CPA/accountant, be careful to judge quickly on the situation. Many times small business owner just want you to do the accounting when and prepare a tax return. When you recommend to visit with them 4 - 12 times a year to hire you as a fractional CFO and Tax Advisor and to pay for a higher monthly subscription so that you can explain to them their numbers and how their business is doing even on a cashflow basis. They believe they deserve service without paying for it. Also, they call you telling you that they care about knowing the numbers but they don’t make the time to meet you on it. Love the show and and loved the question, but wanted to at least bring up the other side of the equation. 🙂
These episodes seem to be timed perfectly. I am almost always dealing with something dave is discussing at the time he is discussing it. Here every Monday! People are sleeping on this show way too hard. Its not a get rich quick show about how to multiply your money, its how to work with people, lead people and grow naturally in leadership! Thanks DAVE!
100 percent sure the second callers problem is they don’t pay their employees enough. 50 percent profit margin on a 3 million dollar business means either you are doing too much of the work yourself, or your people are underpaid or both. Hire 5 people to do what your wife does and you will still profit $1000000 per year. He really thinks he can’t train anyone to do what he and his wife do. Ridiculous.
I have to disagree. It sounds to me like he's got too many irons in the fire and can't keep up. This is an inherent problem in his chosen business (maintenance millwright). He's unwilling to pass off control because he thinks that it will cost him his business rather than train up a few people and implement systems to fix the burdens and bottlenecks. This has put his focus on not losing the business rather than running and managing the company, which, long term, will result in him losing it.
@@talinthon760 I understand what you are saying however the fact that he is basically ready to throw in the towel on the business because he thinks he can’t get people to do the roles that he and his wife do suggest otherwise. He is acting like he is running a smaller operation. He has the cash to hire the help, he just doesn’t think they will be able to do the job adequately. They need a few key employees to run the place and help take some of the weight off his and his wife’s shoulders, unfortunately good help isn’t cheap. 1.75 million in profit will buy you a lot.
Been a long time listener of the money show, but I just found out that this is about exactly what I do every day! You’ve just earned a new die hard listener
It shouldn't be a bad thing if an employeee wants to work a JOB, afterall you will fire them the moment you have no use for them anymore, i think you mean well but the way it came out seems like a toxic place at your company because if someone doesnt kiss your boots all day everyday that would warrant you letting them go in your eyes eventho they perform all their required duties...
For the RV repair person: having done that, the 'pareto principle' or the 20/80 rule is _always_ in effect. Dave's idea at the end of getting rid of the bottom 15% of staff, the worse (complainer wise) 10% of customers and 10% of vendors would improve things _greatly_! Also a key practice is 'under promise and over deliver'. If you know, on 'average' it takes 2 wks, tell them 4 wks. Dave intuited that you may need to formalize systems. I would suggest all your key staff (no more than 6-10) together read 'the checklist manifesto' reading 2 chapter/ wk and ask what they think, how that might work for the first few chapters, and the last half of the book, you start pushing 'what lists are we going to put in place so when a customer comes in, we go through a list before we give a price and time estimate, so it can be accurate.... as an example.
Exactly my thought, he says he doesn't want people to treat it like a JOB, he has lost touch with reality because most people work a job for an income no matter how you want to put it....
Get paid better when they all like you…can’t get any production, but yet you still get paid…that means you would make more than the owner. Enjoy a life of always wondering why you don’t have enough
@@alvaroguerra3627 yes, the hope in man is LOST…that’s why he has this podcast. Though I don’t agree with everything, your mindset is fundamentally off.
"We earn $1,750,000 on total gross revenue of $3,000,000" and he wants to exit that business? He cited problems with sourcing parts. I'm originally from the part of the midwest that is famous for producing RVs. I had a job on an RV assembly line as an 18-year old. I would tell that guy, "There are a LOT of RVs out there! and you have identified a SOLVABLE problem - parts availability - with proof that 'others around us have tried to do what we do and failed, and we've hired their staff and gotten their tools" IN OTHER WORDS, there's a huge problem, and apparently, a lot of RV repair places STAND READY TO BUY on risk of going out of business. Besides the fact that he's got a business making net profit of 58.33% ($1.75M / $3M), there's a 2nd business he could easily launch (he's already in manufacturing) and it SOUNDS LIKE NO ONE ELSE IS SOLVING THAT PROBLEM. That's how fortunes are made. 1) "We have a problem so acute, we want to quit our business" 2) "and so do all the other competitor companies, many of which have left the industry" SOLVING a common problem like that might boost their $3M gross. Maybe a 12 month or so ramp. *Home Depot got big because they AGGREGATED lots of suppliers' products under one roof.* Before that, you went down to the local Ace Hardware and crossed your fingers, and to the local lumber yard (typically a long drive away) for lumber. .
Hi Dave. Love your podcast and appreciate your wisdom. My husband and I are considering changing our CPA, and what you said applied to us. One of the companies we interviewed wants a couple grands sign-up fee and then monthly subscription fee. That is not what we're used to or familiar with. Is this a new normal, or is it a way for them to ensure their cash flow, and we should look elsewhere? Thank you!
Our firm is moving to a monthly fee model. There are a number of reasons and benefits related to that model (for the client and the firm). For a regular ol' 1040 + annual tax planning, the monthly fee might be around $150. No sign-up fee.
CPA here. A monthly subscription fee with money up front is normal. It takes a lot of work to upfront to clean up books, review your tax situation and create a plan for you moving forward. This model is good for the client as the client won’t get a surprise bill and knows their CPA will answer when you call or email any time of the month.
CPA here. I work with small business owners with their Tax and Accounting. When I heard the guy complain about his CPA/accountant, be careful to judge quickly on the situation. Many times small business owner just want you to do the accounting when and prepare a tax return. When you recommend to visit with them 4 - 12 times a year to hire you as a fractional CFO and Tax Advisor and to pay for a higher monthly subscription so that you can explain to them their numbers and how their business is doing even on a cashflow basis. They believe they deserve service without paying for it. Also, they call you telling you that they care about knowing the numbers but they don’t make the time to meet you on it. Love the show and and loved the question, but wanted to at least bring up the other side of the equation. 🙂
These episodes seem to be timed perfectly. I am almost always dealing with something dave is discussing at the time he is discussing it. Here every Monday! People are sleeping on this show way too hard. Its not a get rich quick show about how to multiply your money, its how to work with people, lead people and grow naturally in leadership! Thanks DAVE!
100 percent sure the second callers problem is they don’t pay their employees enough. 50 percent profit margin on a 3 million dollar business means either you are doing too much of the work yourself, or your people are underpaid or both. Hire 5 people to do what your wife does and you will still profit $1000000 per year. He really thinks he can’t train anyone to do what he and his wife do. Ridiculous.
I have to disagree. It sounds to me like he's got too many irons in the fire and can't keep up. This is an inherent problem in his chosen business (maintenance millwright). He's unwilling to pass off control because he thinks that it will cost him his business rather than train up a few people and implement systems to fix the burdens and bottlenecks. This has put his focus on not losing the business rather than running and managing the company, which, long term, will result in him losing it.
@@talinthon760 I understand what you are saying however the fact that he is basically ready to throw in the towel on the business because he thinks he can’t get people to do the roles that he and his wife do suggest otherwise. He is acting like he is running a smaller operation. He has the cash to hire the help, he just doesn’t think they will be able to do the job adequately. They need a few key employees to run the place and help take some of the weight off his and his wife’s shoulders, unfortunately good help isn’t cheap. 1.75 million in profit will buy you a lot.
Maybe he is just a control freak. Everything has to be done like they would.
It's the grass is greener on the other side thinking too.
Been a long time listener of the money show, but I just found out that this is about exactly what I do every day! You’ve just earned a new die hard listener
I look forward to this show on Monday mornings. Learning very important tactical business ideas and lessons from the old man.
Thank you 🙏🏽
“Work here like you own it, take vacation like you own it”….. do I get to share in the profits like I own it?… didn’t think so.
Thank you for another great episode.
It shouldn't be a bad thing if an employeee wants to work a JOB, afterall you will fire them the moment you have no use for them anymore, i think you mean well but the way it came out seems like a toxic place at your company because if someone doesnt kiss your boots all day everyday that would warrant you letting them go in your eyes eventho they perform all their required duties...
This is better than tv soaps.
For the RV repair person: having done that, the 'pareto principle' or the 20/80 rule is _always_ in effect. Dave's idea at the end of getting rid of the bottom 15% of staff, the worse (complainer wise) 10% of customers and 10% of vendors would improve things _greatly_! Also a key practice is 'under promise and over deliver'. If you know, on 'average' it takes 2 wks, tell them 4 wks. Dave intuited that you may need to formalize systems. I would suggest all your key staff (no more than 6-10) together read 'the checklist manifesto' reading 2 chapter/ wk and ask what they think, how that might work for the first few chapters, and the last half of the book, you start pushing 'what lists are we going to put in place so when a customer comes in, we go through a list before we give a price and time estimate, so it can be accurate.... as an example.
Dave, you should consider an accountant training course Seems like a big need for these businesses. If you do it for smartvest, you can do for CPAs
Do employees get paid like they own the company ?
Exactly my thought, he says he doesn't want people to treat it like a JOB, he has lost touch with reality because most people work a job for an income no matter how you want to put it....
Both of you guys missed the point.
He says elsewhere they profit share so it seems like a fair request.
Get paid better when they all like you…can’t get any production, but yet you still get paid…that means you would make more than the owner.
Enjoy a life of always wondering why you don’t have enough
@@alvaroguerra3627 yes, the hope in man is LOST…that’s why he has this podcast.
Though I don’t agree with everything, your mindset is fundamentally off.
"We earn $1,750,000 on total gross revenue of $3,000,000"
and he wants to exit that business? He cited problems with sourcing parts.
I'm originally from the part of the midwest that is famous for producing RVs.
I had a job on an RV assembly line as an 18-year old.
I would tell that guy, "There are a LOT of RVs out there! and you have identified a SOLVABLE problem - parts availability
- with proof that 'others around us have tried to do what we do and failed, and we've hired
their staff and gotten their tools"
IN OTHER WORDS, there's a huge problem, and apparently, a lot of RV repair places STAND READY TO BUY
on risk of going out of business.
Besides the fact that he's got a business making net profit of 58.33% ($1.75M / $3M),
there's a 2nd business he could easily launch (he's already in manufacturing) and it
SOUNDS LIKE NO ONE ELSE IS SOLVING THAT PROBLEM.
That's how fortunes are made.
1) "We have a problem so acute, we want to quit our business"
2) "and so do all the other competitor companies, many of which have left the industry"
SOLVING a common problem like that might boost their $3M gross. Maybe a 12 month or so
ramp.
*Home Depot got big because they AGGREGATED lots of suppliers' products under one roof.*
Before that, you went down to the local Ace Hardware and crossed your fingers, and to the
local lumber yard (typically a long drive away) for lumber.
.
Modern day Welch and Drucker rolled into one.
Refreshing stuff
Fire her😂😂😂😂😂 Dave is savage😅😅
Lol at Patrick...
Hi Dave. Love your podcast and appreciate your wisdom. My husband and I are considering changing our CPA, and what you said applied to us. One of the companies we interviewed wants a couple grands sign-up fee and then monthly subscription fee. That is not what we're used to or familiar with. Is this a new normal, or is it a way for them to ensure their cash flow, and we should look elsewhere? Thank you!
I'm an accountant and that is not normal. A monthly fee is only charged if they complete a monthly service like financial statements.
Our firm is moving to a monthly fee model. There are a number of reasons and benefits related to that model (for the client and the firm). For a regular ol' 1040 + annual tax planning, the monthly fee might be around $150. No sign-up fee.
CPA here. A monthly subscription fee with money up front is normal. It takes a lot of work to upfront to clean up books, review your tax situation and create a plan for you moving forward. This model is good for the client as the client won’t get a surprise bill and knows their CPA will answer when you call or email any time of the month.