Where is the money going

[lust1kiddo]

Hey guys,

I am having a hard time keeping track of my financials. I have quickbooks etc and use it for claimable income and the rest goes in a drawer. I have been set up as an LLC. I have been making good money but have trouble keeping everything organized and how much to pay myself, how much to keep in the business etc. I am thinking of finding like a business management class to take and wondering if any of you had the same problem when starting out as a small business. Any suggestions/experience would be greatly appreciated. I am completing my 3rd year in the business and I know if I dont tighten this up now, I will never make it to the next level.

Thanks,
Jarred

 

[Ken Snow]

Jarrod, not sure what claimable income means but I would suggest SFS if you can take a week to go to a really intensive, industry specific class.

Chuck Violand spends 1 whole day helping the non financial minded cleaner to understand the dynamics of profit and loss and how to measure your business. Accounting and financial statements are simply how to keep score of how you are doing and also help you to create discipline by having your numbers. This education can be invaluable not only to your business but to planning your life financially.

For info go to Jondon's website or maybe Steve Toburen can provide direct link and/or contact info on classes. I highly recommend it.

Ken

 

[Desk Jockey]

SFS is great and Chuck is very knowledgeable, he can get you on the right track. We've used his company several times as a consultant for both management and business development. Only problem is he is not cheap but and he shouldn't be, he's one if not the top guys in his field in this industry. If you can afford him I highly recommend him.

As a newer entity I think I'd check out Larry Galler, he does seminars with Jeff Cross and writes articles for Cleanfax. Offers some free stuff, interview, newsletter and a lower entry for group teleconference calls.

Check him out http://larrygaller.com/

However if you can break away for the 5-days at SFS, you won't regret it. Just tons of valuable info from Bill, Steve & Chuck. Been twice and plan to go back a third time!

 

[Mr Clean Carpet]

My accountant told me that LLC is best when you are in the real estate business, and that an S Corp is the most beneficial to a service business. I pay myself a salary and when I have a surplus of cash in the bank I will take a shareholders distribution. Seems to work for me.

 

[Steve Toburen]

Accounting and financial statements are simply how to keep score of how you are doing and also help you to create discipline by having your numbers. This education can be invaluable not only to your business but to planning your life financially...

Ken is right, Jarrod, and especially on that key word "discipline". Congratulations to you on identifying your challenge. Now you need the "discipline" to follow through. Chuck Violand did a series on the SFS site on the five needed traits for success as a carpet cleaner. You can check it out for free here.

Steve Toburen
www.SFS.JonDon.com

PS Thanks, Ken and Richard. FYI after 16 years we are tearing apart SFS and totally redoing it for 2013. This new SFS: 5 Star Solutions program will have a new emphasis on both diversifying into restoration (especially W/D) and into the commercial arena. We'll also be including with the seminar a 2GB flash drive with a huge amount of "turnkey marketing resources" and Business Infrastructure free of charge. The 2013 SFS program will include follow up training courses for your employees and free online consulting with both Bill Yeadon and myself. Seriously, we are cutting away the "fluff" and morphing SFS into a "business in a box". (Well, actually 5 days and a flash drive!)

So yeah, Jarrod, I assume you are thinking, "Five whole days! No way I can miss five days of work from my business!" Yeah, I know- that hurts. But did you go to college? How much time/money and effort did you invest in that experience? And do you use what you learned in college on a daily basis to make more money?

So uhhh, Jarrod, I believe it was you who stated above, "I know if I don't tighten this up now, I will never make it to the next level." One of my favorite sayings is, "We all make choices." Five days ain't much compared to the rest of your life...

 

[Desk Jockey]

Wow sounds great Steve! Even though we already offer both services I can't wait to attend one of the new classes!

 

[Steve Toburen]

Wow sounds great Steve! Even though we already offer both services I can't wait to attend one of the new classes!

I think that is the idea, Richard. We're still delighted to help new/struggling cleaners. But we are seeing more and more businesses in this industry "doing OK" but they just need some "tweaking" to take them to the next level.

Steve Toburen
www.SFS.JonDon.com

PS On reflection to Jarrod: I hope I didn't come across above as preaching that SFS is the "One and Only Answer". Far from it. For example, reading between the lines of your post your root challenge may be getting a handle first on your personal spending. If so, lots of people have been helped by Dave Ramsey's stuff. (I have some problems with his "All debt is bad" approach but if he helps someone then wonderful!)

And Jarrod, if you just can't break free for five days then we've got a huge amount of SFS resources loaded on our site and they are all free. (The advantage that SFS brings to the table is we are 100% targeted toward the cleaning/restoration industry.)

 

[mirf]

I would also recommend SFS. Great class and worth the price and the 5 days

 

[John Olson]

What do you pay yourself? Or do you have the same problem every technician that became an owner has? I got a check and thats what I made...LOL Set a wage for yourself and stick to it. I have always told everyone starting the first 2-3 years you get to make $20 and no more. Everything else goes to the business. Why $20? Thats $38400 not including tips or overtime (you need to pay yourself that too) You should be able to live on that and you will be developing a cost that you will be able to track, budget and forecast as you start to grow and hire technicians.

Now as others have said SFS will take you places and teach you things that are way beyond my limited knowledge and even I suggest my customers go to SFS if they cannot or will not take they time to take a few business class at night at the community college. <----this would be the best long term option