“We’re the Folks That…”

 

For years now, when I converse with small business owners, I’ve heard the common complaint, “we can’t make any money, and we’re busier than ever!”

Even though I’m not a business coach, when we dig into that comment, I often find that all that “busy-ness” is unfocused...  Simply burning up resources for the sake of having them, and that’s a terrible way to run a small business.  When we take a deeper dive in how that time and energy is being used, the truth really comes to light:  a business that doesn’t really know what its core business is. 

Let me give you an example from my own industry.  For many reasons, tax professionals seem to fall into this trap and it goes something like this:  A highly skilled CPA opens up his or her practice and tries to serve everyone who comes in the door. 

Pretty soon, they’re preparing returns for wage earners, they’re auditing the books for local businesses (big and small), they’re providing some financial services to retirees.  Very quickly, their days are filled with “busy-ness” and by the time they can leave the office each day, they’ve put in more time than they ever did when they worked in the corporate world. 

The worst part, though, is they aren’t making the money they made in the corporate world!

For our CPA in this example, if he or she really thinks about why they’re so busy and still not making a lot of money, they’ll often look for problems in the billing, or how they’ve calculated hours, or what have you.  In reality, the problem is they’ve never taken the time to know their ideal client. 

If that same CPA will “pick a lane” and stick with it – let’s say that lane is tax preparation for individuals – they can focus everything in their business on that specific process. 

·       How they attract and market to their ideal client

·       Where they spend their advertising dollars and energy

·       Determining what other services their ideal client might need

·       Building strong referral networks for any services outside of their core focus

By doing this, and knowing EXACTLY who it is your business serves, you can maximize every component of your company to suit that client.  More importantly, your ideal customer is more inclined to do business with you, because you’ve built a brand that focuses on who they are, what they want, and how they feel. 

In the end, any successful business should be able to clearly state “We’re the guys who…” and fill in that blank about the ideal client and the results that business gives those clients.

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

Teaching Your Kids to be Millionaires

 

As we’ve gone through this month discussing financial literacy for kids, I’ve been amazed at the responses.  We’ve had a lot of people share their own “wins” with their kids and family, and I really appreciate it. 

The best one came from Chris G. last week. 

His youngest son is, like many twelve year olds, fascinated with YouTube, TikTok, and video games, and is always telling his dad about this or that person who is a “millionaire” on social media. 

Now – and I know Chris won’t mind me saying this – he knows a little bit about social media and marketing, and he also recognizes that most of those “influencers” don’t have it quite as good as it seems.  He decided to teach his boy a basic lesson, and I’m including a bit of his email here…

“Basically, I’d gotten tired of Junior’s constant worship of all these fake folks on social media discussing how much money they made – and, to me at least, wasted.  The bigger point I wanted to make was that it doesn’t take much to make a million dollars IF you break it down into manageable chunks.   

So I broke it down for him in his own language…

‘If you want to be a millionaire, you need to sell one million dollar product to one person.   Or you can sell ten people a one hundred-thousand dollar product.  Or one hundred thousand people a ten dollar product.

After that, I looked at my son and asked him, do you know enough about something – maybe a video game – to charge ten dollars to teach someone how to do that?’

He nodded his head quickly and he practically began spewing out all sorts of facts about Minecraft, Titanfall 2, and a seemingly never-ending list of all types of games and hacks and finally, after a few minutes, I put my hand up and simply smiled.

‘Then you have the knowledge to become a millionaire.  The rest is just learning how to make a system that allows you to teach people those lessons easily.’”

As we’ve talked this month about how to share and teach financial literacy to our kids, I’d have to say the far bigger purpose for me was to inspire and help you to show your kids they can learn about and manage their money without the mistakes we so often made. 

I don’t know if I accomplished that, but I hope it’s helped to open some conversations within your won family about how we can all approach money a little differently and – when we get right down to it – we all the chance to make as much as we want. 

Have a great week-

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

The Bad Habits You’re Giving Your Kids

 

This week, I want to talk to you about bad habits.   We’ve all got them, and more importantly, we are all-too-often guilty of giving them to our kids. 

I’m not talking about smoking, or eating too many Cheeto’s, I’m talking about money. 

How many times do we talk about money with our kids?  Or, more importantly, when we do, how many times is that talk negative? 

We’ve all heard some of the sayings before, “Money doesn’t grow on trees!” or “Do you think we’re made of money?” or my favorite, “You’ve got to work hard to get ahead.”

What’s amazing to me is that we repeat these so often, and wonder why our kids struggle to spend money responsibly, when we’ve never taught them how to do it! 

Seriously, have you ever spent time with your child explaining a budget?  Or how to comparison shop for a better price? 

The truth is, we own the responsibility to ourselves and our kids to make sure they are not only aware of the value of money, but also, of how to make it (and save it) effectively.  How can you do that? 

Well, money, in the end, is really only an allegory for responsibility, and from a strictly developmental point of view, the brains of kids – up to nearly age 25 – aren’t fully developed.   In other words, they can’t “think” like we can as grownups. 

Does that mean they can’t learn?  Not at all.  In fact, the very nature of money, spending, and saving means kids can learn to use money responsibly – and that means teaching and sharing.  Let me give you some examples…

·       Do your kids understand the basis for taxes – not just income, but also things like sales tax, ad valorem, and so on?  Having those types of conversations can begin early in a child’s life and can help them to understand the role that government plays in a society and how those tax monies are used (for good or bad…)

·       How about income?  It might be awkward to share big checks or bonuses with your kids, and it might not even be a great idea, but teaching them that people who exceed the expectations of clients and customers can make more money can help inspire your kids to try to achieve more, too.

·       What about offering them the opportunity to earn money?  Earlier this month, for example, I shared the idea of showing your kids what you actually do in your business, but start when they’re young, too.  Ask them to think about things and tasks that need to be done around the home, and ask them what they would accept as a payment for doing those each week.  Even a small child can do things like clear the table, or feed pets and care for them.  Why not give them the chance to do so?  It’s FAR better than an allowance, and creates a sense of accomplishment.  

·       Help them to establish a family budget.  It might not need to have “all” the facts about your income, but you could set the example of “We have $1,000 each month to buy our groceries and gas, so you’ll help me to plan out meals, shop for our food, and find the best gas prices in town when we need to fill up.” 

One thing is for certain, though, you owe it to your kids to have these types of conversations.  The more they know and understand about money, the better off they’ll be – and the better prepared they’ll be, too.   In the end, you’re helping to better educate your kids to feel more empowered about money. 

I’m always happy to help, so don’t hesitate to reach out.

All the best-

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

Value shopping for kids

 

This month, we’ve been exploring how parents can teach financial literacy to even the youngest of children, and one of the best ways is one of the simplest:  cost comparisons in the store. 

Most grocery stores today have, on the shelf tag, a “Price per pound” (or ounce, or some other unit of measure) and this offers savvy parents a great chance to show kids how basic economics work.  Basically, the more you buy, the lower the price OR, the less packaging, the lower the price. 

Take your ubiquitous 2 liter soda.  A dollar or two, depending on the flavor.  But, take that same two liters and put it into cans or bottles, and the price doubles or triples. 

Put those cans or bottles in a six pack and it costs more per ounce than the same can or bottle in a twelve or twenty four pack. 

Sure, the lesson seems very basic, but think about your teenager, buying his Mountain Dew one twenty ounce bottle at a time at the convenience store.  He doesn’t think about the costs, but then wonders why he’s broke all the time. 

I have a close friend who is a self-proclaimed “computer geek” who’s son is following in his friend’s footsteps. 

Like many teenagers, this kid loves to play video games, and he lobbied his dad over and over again for a new computer powerful enough to run today’s games. 

Now, as an aside, the father knew that such a computer was on the market and carried a hefty price tag.  He also knew, due to his career in the technology industry, the components to build such a computer from scratch would be a fraction of the cost. 

He simply broke it down to his son – he would pay him to learn how to build a computer.  $15 an hour, and the kid had to study up online.  He could study enough to build it and earn the money to buy the components, or he could spend three times as much time studying to earn enough to by the top-of-the-line model he wanted. 

The kid earned enough to buy the components and assemble them into a working computer with his father, and in so doing, he also learned how to use his knowledge.  Then the father helped him to build a system that was far more powerful than the “gaming” models sold online.  Not only was it a fun father-son project, the young man learned the intricacies of how computers really work and learned the skills to make a better buying decision. 

Isn’t that the very definition of parenting?

Have a great day-

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

Take Your Kid To Work Day

 

As a business owner, can I ask you if your kids understand what you do?  Now, that answer is different for every owner and at every age.  Your five year old might only understand you have a construction company, or that you build houses, while you twelve year old might recognize you own a marketing company, but do they really “get” it?

Here’s why:  They don’t know what “work” is – they might see their friends’ parents as a nurse, or a truck driver, but those jobs seem easy for a kid to categorize.  Not so with a business owner.  To them, an entrepreneur or a manager for a company really look the same. 

…And helping to share what the differences are between an owner and an employee can make all the difference in how your kids view their own options for work as they get older. 

Psychologically, most kids (and a lot of adults) focus on the tangible.  Santa Claus either came or he didn’t, the money is either here or it isn’t, and you either produced a product at work or you didn’t.  They can’t “see” a system of automated payments, for example, or a lead generation system you built on Facebook. 

But they can learn that those things exist, and more importantly, that people get paid to create those types of things. 

So, take some time to share with your children the things you do for work and how you go about doing the “work” of your business.  Sure, it might be easy to see some things – you might own a machine shop or a restaurant, creating a tangible result every day.   On the other hand, they may not recognize that someone has to place the order, or to write the schedule, or to handle the closing, and that someone is you. 

It’s not only a great way to spend time with your kids, but also a fantastic way to expose them to the world of opportunity that is “out there” in the real world for work, careers, and yes, entrepreneurship.

Even better?  Take the time to share with them other pieces of your own business “puzzle,” like how you got started, the “team” you have that supports you – an attorney, a CPA, even contractors you work with – a marketing agency, or your VA overseas, and so on.  The idea is simple, of course; to show your kids that we can all work together, with a variety of skills and talents, to create something for others.  

The real joy in this is, when those same kids are beginning to think about what type of fields they might wish to go into or to study, is they realize how many more options there are in the world of business.  I’ll bet you can remember your first “real” job, and a certain degree of disappointment you had as you learned how many people dislike the work they go to do every day. 

You changed that in your own life, and you can change it in your kids’ lives. 

Have a great day-

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

Kids and Taxes

 

I hope you’re having a great day, and we’re continuing on this month with our “Financial Literacy for Kids” theme. 

Today, I want to talk about taxes. 

Now, I’m not talking about preparing a return, although for older kids, it’s certainly something to consider.  I’m talking about all the other taxes that dominate our lives – sales taxes, property taxes, ad valorem, and so on. 

Even the smallest child can comprehend the cost of a drink at the store isn’t what they actually end up paying for that drink, and this gives you the chance to explain sales tax.  The same holds true when you go to get the tags on a vehicle renewed, or when you make any purchase at a big box retailer. 

Even online payments – in many instances today – require the payment of some type of tax. 

As kids get older, of course, they can begin to understand bigger concepts like income tax – and this brings up a valuable point:

You don’t need to hide your income from your kids.  Yes, it may “feel” funny, but leveling with them about income, and how you then have to budget your money for the week or the month, allows them to learn. 

Now, the fact is, we all know that kids run their mouths, so you might not want your business shared with the world.  That’s perfectly understandable, but teaching them about things like income tax and Social Security is best done with a paycheck stub. 

I can tell you from experience, there aren’t many adults who seem to be comfortable figuring out a W-4 form and their withholding, from their employer (where they’ll have to determine their number of dependents), so this is an ideal opportunity – since your kid won’t know how – to teach them.   Legally, that employer is not allowed to answer questions about filling out that form, either, so your son or daughter may find themselves in a pinch, like one client’s son did – of having claimed he was not subject to any withholding (on the old Form W-4) and having to pay a significant amount of taxes the next Spring. 

There are a lot of resources available online to help you with these types of financial literacy conversations, and, when my schedule allows, we’re always happy to try and help, too. 

When you take the time to educate your kids on matters of taxes and money, you’re really giving them an advantage many parents aren’t doing.  Not only are you creating smarter young people, you’re helping them to understand the real value of money. 

Not enough young people are learning that right now. 

All the best-

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

Hiring Your Kids?

 

One of the best things about owning your own business is the wide variety of opportunities that open up to you. 

Deductions, write-offs, and, of course, the chance to truly control your own destiny. 

Entrepreneurs have it good, period. 

But what about our kids? 

Well, buried in the Tax Code are a lot of awfully nice tools you can use to help inspire and teach your kids.  More importantly, owning your company can give you options to share your wealth with your family … sometimes even tax free. 

Now, what follows is true, but it’s NOT a “rubber stamp” sort of deal.  As with most everything in the United States Tax Code, there are specific ways and documentation that needs to be in place in order to do what I’m sharing with you.

So, for starters, you can hire your kids into your company.   Even better, up to a certain point, they aren’t taxed.  This is a LOT better deal than giving them an allowance each week, and as the owner of the business, you can determine the work they’ll be doing.  Obviously, you must adhere to child labor laws, but they can certainly handle chores and other things to earn the money. 

Another extremely useful thing you can do for children is to open up an LLC with them while they’re still young.  Why?  Well, for starters, as they grow and their interests become more refined, that LLC can make investments into the things the child is interested in.  Some years ago, I met a wealthy woman who had done just this for her son, who later became interested in aviation.  She had been investing money into “his” LLC since he was a young boy, and as a teenager, she took the LLC into the aviation business. 

When Brandon went to college (for aviation maintenance), “his” company offered tuition reimbursement for all employees. 

The company, because of its structure, also received a tax credit for this continuing education, and Brandon didn’t have to pay a dime for school. 

After he graduated, he also was the leader – at least on paper – of a small business that had over twenty years of business credit to its name. 

Not a bad way to get started in the business world.

…But wait!  There’s more!  Another key piece of the pie for teaching and sharing a business within your family is not only hiring your child, but establishing a Roth IRA for them.  Now, the rules for that are a little different, but imagine the jump you could give a child if they were paid year after year AND those monies went straight into a retirement account … before they were even old enough to legally work!

Think of how much could actually accrue in an account over 50-60 years if wisely invested? 

It’s life changing.  Period. 

All of these are strategies you can put into place within your own family, and I’m happy to sit down and discuss those types of options with you.  It’s not just legal, it’s literally one of the smartest things you can do for your family as a business owner. 

All the best-

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.