October 1, 2017
hire someone to do your payroll

Hire Someone to Do Your Payroll

As a business owner, large or small, one of the biggest jobs you have in advancing your business is taking care of your employees. One of the ways you do that is by making sure paychecks end up in their hands or bank accounts when they are supposed to. For many small business owners, all too often that means you are relying on yourself to do the work of a bookkeeper. If that’s you stop now and here’s why. Recently a client that is a dentist called me for my thoughts on doing just this. He began to explain how the extra time he spent on payroll was getting to him and he just wasn’t sure he could do it anymore. So he wanted my advice on what I thought he should do. First of all, I never recommend for someone to do their own payroll. It just is not the wisest decision you can make for your business. As a business owner, paying someone else to do your payroll is money well spent. Payroll is one of those things where you are dealing with the Department of Labor (DOL). The last thing you want is them breathing down your […]
August 28, 2017

How a Business Owner can Growth Net Worth fast! Compound Interest: The Power Behind It

One of my all-time favorite quotes is the one about compound interest that’s attributed to Albert Einstien. “Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn’t pays it.” You will probably see that quote a million more times on my blog because it is one of the truest concepts ever! Sadly too many fail to understand and grasp it. Here’s an example to help you recognize the importance of compound interest if you don’t. The Choice If I offered you $5000.00 of cold hard cash or a magic penny that doubles every day for 31 days, which would you choose? Most people will choose the $5,000 because we simply want that instant gratification. Here’s the thing a penny doubled every day for 31 days is just over $10 MILLION! HOLY COW BATMAN!!  That’s a lot of money.  On day 10 your penny is only worth a measly $5.12. I get it! That doesn’t seem like much when you could have taken the $5000 and ran just nine days earlier. However, if you hold out until day 20 on the penny, then you have just over $5241.00. You would finally come out better […]
August 24, 2017
When Should I Start Contributing to Retirement?

When Should I Start Contributing to Retirement?

As a business owner, I know how easy it can be to get caught up in the hustle and bustle of running a company. You can get so busy that you even forget about saving for your retirement. That’s never a good idea though. Recently someone contacted me on Twitter asking this, “Justin, I’m a new business owner, and I have some extra funds? Should I start contributing to my retirement now?” That’s great that this new business owner is already starting to think about retirement! However, there is a process. Check out this video to see my answer. There are three main points you need to consider as a business owner before you ever start contributing to a retirement account. 1. Have a business emergency fund. That means you have at least one month’s worth of company expenses set back. If you run at $50k a month, you’d have $50k a month set aside in your checking balance. Hopefully your accounts receivable are operating at greater than that. So basically you would have your balance running at somewhere between $50k to $80k, possibly even $100k. So you need to have roughly one month of expenses in excess of your […]
August 22, 2017

Debt Payoff: Student Loan, Mortgage or Business Note

For many hardworking Americans, whether they are the employer or the employee, they managed to amass a pretty good amount of debt. I repeatedly make this statement, I HATE DEBT! However, it is part of life for most of us. Recently a client of mine that’s in the entrepreneurial doctor field and owns his own practice quizzed me on what debt he should pay off first. Desiring to see the light at the end of the tunnel, he wanted my advice on the best route to take after freeing up $1,000 a month. The Debt Snowball vs The High-Interest Method Many people would suggest using the debt snowball. That’s a technique of debt repayment in which the debtor lists all monies owed from small to large. At that point, they began paying down the smallest first by devoting extra money to that one debt, while maintaining minimum monthly payments on all others. Once the smallest balance is completely paid off, they then move on to the next debt. They take the amount they were paying on the smallest debt and add it to the minimum payment they were making on next smallest. This process allows the debtor to begin to […]