This week the guys discuss starting your business and managing your cash flow, from what needs to be set back for tax needs to what you need to use to launch your business forward

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The HUDDLE is where the flooring industry can get together and talk about everything! Lead by Paul Stuart from Go Carerra who is joined by Daniel and Jose Gonzalez from Preferred Flooring.

https://www.preferredflooringmi.com

https://www.stuartandassociates.com

what's up flooring family welcome to the Huddle we come back to you every Tuesday at three o'clock

Central to discuss maintaining forward progress in your flooring career

you like what you hear here if you've uh enjoyed any of the episodes please consider giving us a like or subscribe

in our YouTube channel uh like And subscribe preferred floorings

uh social networks whether it's Facebook or Instagram the guys are great on there

and uh same with go career so I missed everybody last week thank you

guys for jumping in there and and uh covering the show I appreciate that yeah

hopefully we did okay well I haven't gotten to look at the whole thing but I know you guys so you

you covered just fine so this week um

we're gonna be talking about cash flow and cash flow management uh starting

with the uh installation professional

one of the you know ways we got started I think you know

preferred flooring got started installing so did I and so

managing that early cash flow was key to eventually opening up a full-service

shop um so I just thought I'd start with you guys give us a little bit

of a you know maybe experience on how you guys manage cash flow early on some of

the the the great things we did are some of the maybe mistakes you made and and uh

then I'll I'll follow up because we have a very similar path to starting our flooring service you know the full

service flooring company I think in the beginning it was a

we had to learn as we want right in the beginning it was just very hard so you know labor only and you're

you don't factor in a lot of like consumables and everything else and cash flow was very tight to say the least

um starting out I think um we structured our pay base off of a

salary so that way that way we weren't just willy-nilly

with the bank account um that was I mean we're still salary um to this day because of it because it

worked um but in the beginning Castle was a lot different we didn't have

whatever we didn't have we had to go buy and we didn't have the um

the credit line yet unless we were using our own so

um that was pretty difficult and challenging in the beginning but the with the little bit that we paid

ourselves on the salary and then I think we waited about a year before we hired our first employee so we can build up a

cash flow um so that way we didn't have to worry about not being able to pay someone uh

that was a very long year um and you'll learn

you learn that it's not very hard to live without a lot of things essentially like what he just said like

short form is stay broke I like it I'll I'll uh

excuse me hit them I had a very similar thing when I

started me and my partner that uh started the company we both

it's a very low salaries and I tried to build up cash uh one of the key I think

um important things was we took work from different segments

so we were labor only but sometimes we a lot of times we'd work for a shop

because we get paid every week and then sometimes we'd work for another two a designer who would pay us when the

job was done and then sometimes it would work you know started working with the

general contractor who'd pay us every you know in 30 or 60 days we didn't jump right into

the you know working with the GC on big construction jobs we'd have never made

it we also did just put the money in the bank and take whatever was left over

um so I think that was very wise I still take a salary myself after 20 years so

um the the key of the of staying broke as you said

Daniel is like that that's what we did too it's not an easy road but

uh ultimately if your goal is to you know I've seen it I've seen it happen the

other way I've seen plenty of guys uh do work and then they get in real trouble because they either try to do

you know non-cash flowing projects meaning working with the GC or something

like that too early because of GDC because they're really good so the GC is like hey I want you to

do my job and they say okay and then they they do another project for a

general contractor and they don't get paid forever and they were not prepared for that so I think having a good mix of

projects is key too because you guys kind of mix that around as well as well as residential I think that's another

one where you can get that that deposit get that money flowing into that kind of thing did you guys do that

too yeah I think we got pretty lucky a lot of the the places that we started working for right away were you know

returning an invoice and within within seven days we were we were getting paid um if it was larger projects uh you know

that payment schedule would be slightly extended but um for the most part I was very

transparent with everyone and so was Daniel like hey you guys we're starting out like we have zero dollars uh we

invest in everything we had uh when we were let go and we invested a little bit that was borrowed

um and they were like you need to check just let us know if you need a check just let us know we didn't abuse that we

didn't even we didn't even ask for that it was just offered so you know to to go

back to where you said uh the contractors where you're waiting 30 60 90 days um we were fortunate to not be in that

scenario uh right um and you're right um

had that been an audition I don't know if we would have went down that road because of the length of time

um the cash flow everything that was coming in was was going right back into it right away like we hadn't we had nothing

you know yeah you had to buy equipment almost immediately yeah that's what we found and a big benefit of paying

yourself a salary as well just as a side note is uh oh you use some personal

experience here with my my father who has worked for herself for many many I mean for probably 30 40 years he worked

for himself as a painter he never paid himself a salary

uh so the only Social Security he has today is what he earned the first 10 years of

working as a union and uh painter so

you know today his his social security income is like 600 bucks a month because

he never paid in he didn't W you know pay himself a salary a W-2 salary

position he just paid his expenses and kept what's left so there's another

benefit of like doing that um I gotta I just hope that it's actually

going to be there when I when I turned 65 years ago yeah but the point here is had he paid

himself a W-2 and and paid into his Social Security way back then he'd be in a

different position today and um you know you can't go back but my

advice to any installer is if you're even even if you are just an installer

and you got a couple of guys working for you pay yourself a salary let your bank

account grow uh it'll come in handy on a rainy day you'll have a little bit of money to invest in things that you may

want to invest in whether that's equipment or um you know expanding your business but

living off of what's left will get you um I've seen him get a lot of guys in

trouble you know just and properly part of that is probably uh

the next topic uh under this is like

not just um how do I say this a lot of installers

who get started and they live off of the the proceeds

tend to live off all the proceeds so you never budget your personal life because

of it you know you just have this money coming in and then properly tracking

expenses doesn't happen as much then you know kind of I guess the bottom line is

run it like a business if you're an installer run your installation business like a business

you know we had a conversation like that in the Mastermind group where Kyle um about that um it's it's hard to

track your it's hard to track any project and get

your your daily operating costs if you aren't on a set pay schedule right like

if you're just starting out and you're going through your bank account and everything that gets deposit you're

treating it like a flow through to you um you don't really know where to make adjustments financially on some of your

pricing on what am I spending on supplies for this type of work or this week or this month I think that's one of

the biggest things when we started that's what we did is you had to separate your business income from your

personal income like yeah just because the business isn't making all this money doesn't mean

I'm making all this money even though we're technically a pass-through entity so

the the IRS treats it like that but you still have to separate that based on all

right this is what I want to do in business this is how I can get there this is my own personal over here and

like I said it was it wasn't a mindset of stay broke it was it's what we had to do in order to move

forward like in order to see the vision transpire it's like we're only going to

pay ourselves this much and then constantly reinvest into the business and that's what we did for years so

that's what we're still doing right now and and you can also helped you on taxes because when you're paying yourself a

weekly uh salary you're paying in taxes what we did

um yeah and I still do to this day is i max out my taxes like I want them to

take as much out of my weekly income my my salary and then I knew what I needed

to bring home to make do early on and that's what I paid myself plus I made sure I paid enough to cover

the taxes I wanted to pay as much into taxes because it is a pass-through um

tax structure if you're say an S corp or even an LLC

the profit and the burden of that profit flows through to you but like he said

have a separate bank account for your company and then pay yourself a weekly salary into your into your uh just like

you would any employee right into your personal account but you're paying those weekly taxes and it's it's easier to

stay up on the taxes early on um that way you don't have this huge tax bill at the end of the year if you just

have one account and you pay everything out of it and you just keep all the extra you better be making some

quarterly tax payments but one way to do that almost automatically is max out

your tax um amount that you pay in on a weekly basis from

from your salary and then um you know at the end of the year when your income is all calculated for taxes

you've you've paid a pretty fair sum in from your personal income and me and my

partner when we first started I'd obviously I bought him out no three but from 99 to 2003

we both just took salaries and it helped us stay up on our taxes kept our tax

program down at the end of the year that kind of thing so there's a lot of benefits to doing it that way

yeah and we um in full disclosure everyone like I learned this the hard

way from previous Ventures right and that's why when when Daniel and I

partnered up and we decided to start our preferred that it had to be structured right away the other way didn't it

didn't didn't work I mean it worked for as long as there was there were funds in the bank but as soon as

you get under a certain dollar amount and you have X amount employees it doesn't work anymore you're scrambling

you're in scramble mode everything's separated right so your employees your uh wages your wages then

then uh everything else on top of that your vehicle the maintenance and starting out nobody goes out and buys a

brand new vehicle right so you're gonna buy a used vehicle you got to figure you're gonna spend 500 a month in

maintenance on that on top of fuel and whatever else um I mean you're gonna be spending a

truck payment a band payment anyway and maintenance on an old vehicle so

learn that one as well yeah and even if you do go get a new one you gotta try you got a bigger vehicle

payment so I mean at the end of the day having those separated is wise and

um like I said there's that added benefit of having us with taxes automatically coming out of your account

or out of your check on a weekly basis and then you know frankly it it helps

you to not overspend on a personal level uh you know sometimes you're gonna have

some down weeks when you're installation only and

it's nice to have that extra money in the bank where your salary still comes through each week

just like it has and if you live within those means then you know you can make it through uh you

know a period of time without actually working and you may be out you know

scrambling for work but there are slow times I mean it's not been around for a while but it does happen I remember

installing and out trying to drum up work and it may have a week off but I

still got my salary because we put the money in the bank yep I remember planning for it too I

remember the lulls like right before Thanksgiving and then after Christmas that was about where I was at so

um and then it always a little bit of a little right before we called School season started

um and you know it just it's like the tide was just pulling itself back for a second but it was gonna come back strong

and you gotta be ready that's a good analogy Jeremy's commented

on Facebook he says the one of the reasons why he hasn't jumped in full time on his own is not being able to have the steady cash flow

about being a W-2 employee he's able to invest in 401k and move up the ladder to

get off his knees in a reasonable amount of time because I think he just you see too many guys out there that like he says they're

one-man cruise and you know they're 60 years old right now and it's because they didn't take the

time to plan things out when they were younger kind of like you said your dad that's that's all he did was you know when he

was in the union and then he has really nothing after that it's a lot of these guys take a look at that bank account

and I mean don't get me wrong a lot of us come from you know pretty much nothing so it's

when you see it start seeing that that amount of money rolling in it's hard to to just look the other way and keep it

into that account but it's it's all mindset right it's uh where do you want to go uh delayed gratification

where do you want to go and and what do you have to do in order to get there and a lot of these guys can't see past the

weekend you know we see guys that are you know on Saturday they're out at the casino and then on Monday they're

complaining because they can't work because their vehicle is broke down and they don't have no money to fix it

yeah I can't count how many times I've had that you know talk with an installer who doesn't have

gas money on Monday or Tuesday or whatever and can't get to the job site I'm like dude you just got

paid six grand last week you know how in the world and a lot of times it's

just they it's so much easier to indulge in the

things where you would have discretion when you just

take what's left over if that's how you're gonna operate your busy business and you got three thousand

dollars left over after a six thousand dollar a week and you pay everybody and you go out you had three grand in your

mind well I paid myself 600 bucks for the first four years that's what I paid myself on a salary and we didn't we

didn't move that for four years neither one of us so you know I it can be tough but it is

delayed gratification if you're wanting to build a business even a successful installation business

you got to have some money put aside for training your guys for for uh training

yourself for getting to Convention all those things go into this big bucket and

you're just a W-2 coming out of that bucket and you let that bucket grow and I know what you're saying I mean there

was weeks we that me and my helper would do six thousand dollars seven thousand dollars worth of work I get paid 600

that bank or our business banking account was going up and up and up and I'm still just kind of scrounging by

personally but if you really want to grow a business or grow a a nasty vegan maybe

you don't want to be a full service but you don't want to be living week to week forever grow that Nest Egg big enough to

where you maybe you can increase your salary uh in in a couple of years and

then that Nest they can continue to grow where you're not always dependent

I think what I did not want to do and the reason I was just super fine with taking the salaries I did not want to

have to starve the next week I'd learn how to live on 600 bucks so that was

gonna work and then I didn't want to have this time frame where my family had to go down

if you do it that way we didn't ever have to go back in lifestyle it was a a you know lavish

lifestyle but it was the lifestyle we were living at that time we didn't have to go backwards because we were always getting that check because that that

Nest Egg was growing so on down weeks or slow weeks I was still getting paid even if I only

created a thousand bucks that week I still got my normal payment and I was

you know what I'm saying it's like treating yourself like a good employee is the best I think that's the best when

you first start you create a routine and it does get easier it gets it gets way easier once you create that

routine um and I just don't understand

how back when I was younger how I didn't see that and the need for that so and

then that's one thing too I think Daniel made me think about it when he earlier is when

there is no education classes out there everybody's worried about hand skills and installation but there is no financial management classes out there

for a young entrepreneur who can go get a 1099 a DBA or LLC right they don't

have any of that you got to do all that that's why we're here yeah and and that's the thing though is they do have

those classes it's just you have to go look for them yeah they're not readily available like oh yeah and here's here's

a booklet if you're starting a DBA and you have a business license here's a booklet from your county and that would

be that's the thing it's it's like uh the FCF and

and you know we're trying to recruit more installers but recruiting new installers doesn't

necessarily mean we're recruiting good business people like they keep on

pushing them into you can make this much money and work to Be Your Own Boss and all this but they

don't push them to where it's like go come through our program and then go

work for this company for x amount of years before you do this it's it's

always uh that that that mindset or that statement where

it's like You Can Be Your Own Boss and I mean you you know as well as we do

being the boss is not always the the greatest thing in the world it's uh yeah sometimes

yeah it's like it it would be so much easier if we weren't

but at the same time if we weren't in the positions that we are now we

wouldn't have this platform here talking to other guys that needed the help yeah I I mean I can't say enough that

you know we've touched on so many subjects that if you are starting out as

an installer and you're thinking about or you're an established installer and you're thinking about like taking the

next step in your in your uh in your career or your business

you know Ford progress does means like wherever you're at right now you can move forward you can go you can

go but you can get bigger better or just better but you know what if we shot a 16

plus episodes and a lot of them have to do with how you run a small installation

company and how you can turn that into like I could have been extremely

successful from a monetary standpoint without going for a service because I

did pay myself a salary and I did create a lot of I did a good installs and I I

attracted good installers me and one other crew um we really could have had a very good

uh lifestyle um you know I wanted to grow a full certain

grow into a full service company there was a big need in my area and

um so that's what I wanted but you can run a successful installation only company as well it's just

having some discipline with your money uh you know we're talking about cash flows so you've got to consider making

good business deals on the front side like getting terms that fit your

business model playing collecting well and then doing good work I think those are all kind of

I hope understood you have to be a good quality work you gotta collect your money and you got to do the work that

best serves your business but at the end of the day man you can be you you can go

any direction in your once you have the hand skills and the business mindset that that of discipline

I see it all the time the biggest problem that that plagues the

installation industry is guys just living off of what they make and not having discipline around their money

I know a guy that you know he does real well from how much he pulls

and you know instead of he replaced his old truck within Mercedes-Benz you know

I think that kind of spoke a lot to what where his mind was I mean

could have went out and got a really nice uh van that would better serve your

business um you know I don't think I drove a car for I don't I still don't drive a car I

probably haven't drove a car in 20 plus years but I didn't drive a non-installation vehicle for almost 10

years like my kids I'd take out the scenes and I'd ratchet I'd literally put

the seat back in so that I could put my car my kids car seat in my van I can't imagine not driving a work vehicle like

something that I can throw my tools and material I can't I just I can't like

there's a need for it what happens you know yeah I don't know I remember driving my

my S10 across the country with a 35 foot roll of rolling and from Over the cab

and it scratched everything up all right yeah yeah

I think uh another piece of this um cash flow portion is also tracking

your helpers labor and making sure whether it's a helper or other installers that work for your install

company making sure that you know they're being properly trained and they

even care about the quality they're putting in and their production giving

goals I know we talked about that in the past about giving your installers goals

um you know when I was just me and another guy uh I had a helper he had a helper I mean

we both set goals on a weekly basis on what we were going to try and get done

on a bigger job and sometimes it was a daily goal if it was a you know smaller

project you just kind of got to get together and um kind of track that labor and know

where your expenses are coming from because labor and equipment

gas all that stuff it adds up it does like so

um when you first started how were you tracking um for your your partner and the helpers like I I've always done like

time cards we used to do handwritten time card track hours uh some people do square footage or just buy the job or by

the day um what are some other ways for people starting out uh to try that because it

has a lot to do with the two you got to be able to track what they're installing how much how much they're installing or

if you're by the hour like is there the rate match what's going down

yeah we always did it by the hour and um the lead guy my other lead guy he got a

salary and then a bonus on whatever got that whatever he beat so that was the

purpose of the goals so say you got a thousand dollar job just as an example and it's gonna go for a week and

as an example he gets paid 500 bucks and his helper gets paid 200 bucks and

there's a thousand dollars of money in that budget for the labor portion

plus a plus a profit to the company well we just bonus him out the difference

so it always encouraged them to work um but they weren't working harder for

nothing more um it wasn't really that unique of a setup it was just how we chose uh

looking back I probably would have done a little different but that's how we did it and uh it worked out pretty well I

mean he my my other installer performed well he worked hard and he was he was

there uh you gotta give him go give employees and he was an employee so

um But You Gotta Give those guys a reason to get up and go to work

and we just could not afford a big big you know huge hourly rate at the end of the day some of the jobs

didn't have any money at the end of at the end of the wages

but again we were trying to set precedents that

when we have good jobs that pay out well then we're we're gonna you can make more

money but at the end of the day you need to be budgeting your life from what you

know you're gonna make foreign so what about um Financial establishment

or would you you know guys who you still use a shoebox I mean

well it's not even a financial establishment that's a bookkeeping software

yeah so that he says very helpful to track your expenses but

back then we didn't have all the fancy technology so it was literally uh turned

in an expense report each week from each crew every every gas receipt

every everything if they're out of town food receipts and hotel receipts and all that

came through and then my partner would put that into QuickBooks that's what we used at the time and this was before

QuickBooks went online um so this was just a piece of software on a computer at the time and

you know we we track all the expenses including labor and then what was left

over was available to be bonused to the other installer and I never bonus myself

that was the sacrifice I made there was no bonus to myself all my extra went

stayed in the bank account for the company better safe than sorry yep we get it

yeah I mean we were used to getting to eating ramen noodles I just didn't want to have to go down to like you know

canned beans hey there's nothing wrong with canned beans

uh I'm sure you have family or friends that'll support you and you know I'm not

too proud to say that Daniel and I did go to we counted on family for some food sometimes

um and it helped not not saying like hey can you feed me on Wednesdays and Fridays it was uh what

y'all doing today come over

no we lost the audio on you

just gotta turn on your headphones or your mic on your headphones

[Laughter] thanks there it goes

is it good yeah yeah I'm back okay sorry about that I don't know if I touched

something or when I when I adjust to them but

I guess um you know you don't have to start that way do you I mean you don't not everybody has to start struggling uh if

you if you've established yourself uh working by by the hour for or by the day

or whatever but as an employee for a company you've got a good savings stopped away and maybe uh some assets

not the way that you can get a loan against you can kind of jump in and Skip some of

these other steps we're talking about I mean we're not saying everybody has to go through the ramen noodle phase so to

speak no but when we started like both of our credit scores were

not the greatest and we you know we

we were already struggling and it was just not an ideal situation

and we just did what we had to do in order to make that situation better

yeah like if like you said if you were

already planning on doing something like that for years and now you feel like you have the the finances to to pull that

trigger and you're comfortable yeah you're in a way better spot and that's a lot smarter um and way ahead I encourage I mean to

plan it one thing that you guys and I have in common as well is we didn't plan it I mean you guys

it was kind of a very similar scenario I think I I got

noticed that we the company I was working for was getting ready to get bought out like the fourth time and the

new ownership group was one of the existing PMS that worked there that did not like me at all

um and she she she's a friend of mine today but back then she was she did not

like me at all and I knew my my writing was on the wall I was I was getting booted as soon as she took over so I

just I had to quit and go make money right away you know so I didn't have a lot of time

planning on it I just figured hey I can do I can do at least as good as that

company was doing which was not that good and this new ownership group coming in you know promised the world just like

the previous one did things are going to be better um and when I say better I'm not saying

like you know getting paid more I'm talking about having checks that would clear the bank account oh yeah you know

one time I held five checks that did not clear and you want to talk about Speedy

Gonzalez on the way to the bank every when I'd get the tip who from the PM

they ended up being my partner he tipped me when he knew a check came in and then

I could jump in my car and run to the bank see how many of those checks I could get cash and uh

you know that just getting checks that would clear would have been an improvement back then

the new ownership group when they came in was promising things were going to be different

I just didn't think I was going to be there anyway so I decided to go out on my own and when

when you do that it's kind of last minute I'm in the same position either I didn't have the best

credit at the time I was young I was only 22 when I started the company so I

didn't have it wasn't that I didn't have good credit or bad credit I just didn't

have any credit no credit you know I had one car loan that I was paying ridiculous percentage on because I

didn't have any credit and um so there's a hard road but you just all I'm doing all this the purpose of

this uh discussion is is to let you know that one other people have went through

it two there are brighter days if you can be disciplined with your money and I can

tell you right now there's for every one of the stories like yours or ours there's 50 stories of the guy that lives

off his business a hundred percent and uses all the funds and never has a

rainy day doesn't pay his taxes and ends up working for somebody

out of necessity not out of choice they have to work somewhere because the IRS is after them and they need to get

garnished I mean I know those guys so do we and you're right we are

definitely outnumbered by those guys so the reason they go W-2 is the fact is is

they give W2 then the government can only garnish their wages that they don't go take their home and

their cars and you know everything you stay on 1099 and the government if you

go to back taxes they come to start taking itself

so cash flow is important early on I mean

that's the bottom line to this is collect your money do good work make sure you're installing good product so

you don't have failed projects early on one thing that'll kill you as an installer is doing poor hook early on

it'll just it'll just kill you happen to go back and and rework or redo

stuff I'm not saying we were perfect in that regard that we had very few and far between of going back and having having

problems when I was installing a lot and then if you can get a good mix

of jobs between homeowners you know maybe a little longer term stuff like

with with your interior designers or something like that and then working for a shop that could give you that weekly

pay the having a good mix there kept our cash flow a lot better if I've been just

DC Universe on there's no way in hell I would have made it and same with if I I

had a Interior Design Group and they're the ones who really kind of helped us uh

see that we were going to have business as a company and uh they were a high-end

uh interior designer but they didn't pay they collected from the client and they

paid us and they didn't pay us every week it was when the job was done and if it was a two or three week project we

had to wait two or three weeks for the for the money but we had all the expenses all the gas

all the labor all the car payments and everything you're muted again

I had to be on my phone because I wasn't smart enough to charge my laptop beforehand

so you know even if I would have done only the interior designers work it would not

have worked out it wouldn't have made it because I couldn't have always been spanning those three weeks we had to

have a good mix of those three working for a shop we got paid every single week and that helped a lot

um of course they didn't like it when we started working with GCS and then we lost that but that's a natural

masturation of like you know growing your business I think yeah so so

good advice is to make sure that you don't have all your

eggs in one basket that you do have a mix of pay schedules understand those pay schedules and stick to turning in

the invoices if needed right because if you don't if you missed that pay period that's your fault not theirs

um don't over extend your finances on labor

um material like sometimes we did that too a couple times where we weren't into material sales but we

would buy material with money that we didn't really have and then we'd be waiting it's like then think that one through

um track employees contractors wages will

help um and have separate bank accounts yeah

yeah that that's probably the first one have a business account and have your personal account so don't live out of

your business account and start working on your business credit on day one

yeah yeah well this is about cash flow but that's a very important piece too right

like if we didn't build credit and get to a point where we said all right we either use it or we don't right it was

all right let's use it so that way we're not using what we have because I know that what we have down the road is going

to pay for that you know right right away a lot of the cash flow like when we were

I mean we we were running 12 installers at one point and that stuff starts

adding up especially when you're waiting for checks and it's like uh all right let's get

this line of credit going and then you talk to them and they're like all right we'll give you five grand it's like well

five grand is going to do anything but that five grand and then you we just you

know you initially take it out and then you repay it and it costs you a little bit of money but then they're like all

right you paid that pretty quick here goes 25. here goes 50. oh here goes 100 and it's

like you get you have to steadily build on on that and

honestly it's the the cost of doing business sometimes and that's how you gotta just look at things it's not I

don't want to pay interest on this because I just don't want to pay interest it's business is expensive and

sometimes you gotta I'm out of pocket in order to build something that's the business expense of Spain

interest and and building that's a great point is

starting to build that business line of credit whether it's with your bank with your vendors pay your vendors on time

they they'll extend you out a little longer and sometimes you get that you

get to that nice 30-day you know net with the with the vendor and then you're getting paid on a weekly

basis from these and get that mix was really important for us I know you guys have a similar deal

where we do we did some homeowner stuff we get paid a little faster you can get 50 down

and like I said working for a shop we go do the labor only and get that money within a couple of weeks and then your

longer term stuff but building that business line of credit whether it click your bank and or bidders is super

important because then you're not just ripping out of your cash yeah that's uh it's always a little

heartbreaking when you when you get a double large chunk out of your hard-earned money

and pay your taxes because you don't want to be the guy paying interest on your taxes that's another thing like

that'll just that just snowballs on you that's where you don't want to that's

where you don't want to be borrowing from right and that's where when you say paying quarterly right because if you

don't pay quarterly and you only pay at the end of the year you're going to get hit with a penalty regardless

so yeah and it's it's a the penalty is one thing that

um those quarterlies it just is another discipline thing like it it helps you

be more disciplined and entertain those those tax bills um they're not going to go anywhere

they're going to be there so you know at the end of the year if you profited 100 Grand and you've got to give 25 to the

government do you have 25k in the bank that you can just send in you can

sacrifice well that's why it can be tough if that

happens to hit a slow time in your business and maybe you've been drawing on it and

when's it hit at that slow time at the end of the year like what Jose was just

talking about maybe you don't have it well then you get your real penalties when you're not paying it at the end of

the year plus you start including interest and all these things so being disciplined on

your quarterly um you know estimates and I mean there

was times when we get money back because we do the quarterly estimate and plus my

weekly payroll uh to me and my partner we were taking out our income taxes on

that as well and since we were an S corp all the money flowed through so all that

texts that we paid again every single week plus our quarterly estimates we actually get some money back at the end

of the year that didn't last long as you grow that's harder and harder to do but but uh

still I I would recommend paying in uh you know and of course

always going to make this comment talk to your tax attorney talk to your to your your accountant and make sure to

get professional advice but what worked for me was paying quarterly taxes even

though that quarterly tax estimate and um taking a W-2 so that I could get

taxes taken out weekly and when you pay your taxes you get uh basically your receipt is giving you

your net worth and that will help um when you are starting to uh get traction and want to apply for that you

know five thousand dollar loan ten thousand fifteen thousand you got to have a net worth if you don't you don't

have anything but what someone's paid you that's that's that's nothing they need to know that you've paid uh into

the government uh to even qualify for for any of those loans well it doesn't matter what you want to

do if you're going to go through if you want to apply for anything they're going to want to see you know those

let me see those last three years of uh your business taxes yep and yep that's something you don't want

to fall into either and we've touched on this numerous times before it's not not being able to build where you want to go

because of your negligence on not paying taxes and then you can't pay cash for everything

no and that's a pain in the rear anyway and that's not really running a business that's owning a job and you're not even

doing a great job at that if you're not paying taxes um and some people are just fine owning a

job but you still got to do the right thing pay in your taxes

again I don't care if if today I was still installing on a daily basis and

I'd still pay myself a salary I I would still do it the same way that's the one thing looking back I

wouldn't change I think it was the right thing to do it worked and it helped me tremendously in getting that Cadence

down and understanding when I didn't really understand a lot about business I didn't have to like

worry about like making it I I don't know there's a

certain level of personal um security and knowing that you're

getting that payment every week from yourself yes but still that you're you're not going like I said going from

ramen noodles to canned beans or maybe it's maybe you can vegans are better it's the other is a backdrop but to get

what I'm saying yeah or Mexican so we love these

I was like we've kind of touched on the biggest

things and you you just kind of kept them off there a second ago Jose is

there anything else you guys can think of a pitfall for the new guys kind of getting going

um I know one of the comments was talking about you know 401k and things like that

obviously you can do that on your own as well um right if you if you're responsible

with your money you can you can pay into a 401k right right as as you're uh taking your W-2

I do have something to add to that um to this whole conversation is uh

and you know to each their own right it's okay to say no when you start

getting the cash flow and you have friends and family reaching out to you you're trying to build something that's

going to last a lot longer than than a favor um it's okay to say now

yeah well I think that can go down a really deep rabbit hole because I think we both probably have some instances

where all of a sudden friends you haven't talked to in a long time all of a sudden find you again uh I

mean I'm a sucker for family and Daniels too if I said we say no all the time I'd

be lying right and and but if you and your business are not in a

good spot it is in your best interest to to have that control and say I'm sorry I can't

right now even though it hurts your heart I think that's the key is knowing that

if you can't you don't yeah if you can awesome 100 you know help out but at the end of

the day don't don't fool yourself don't let you go you know cause you to say oh they're gonna think I'm not making that's what's

got me like I would help people out because I didn't want to think my business wasn't doing great

you know so if I give them money they they think are successful as the family

mainly you know that this Venture that I jumped out head first into the water for

uh you know I didn't want anybody to think that it wasn't panning out

that there's plenty of times I gave money when I sit down well today

this is this is what being a business owner is this is what we're riding a roller coaster

yeah it is certainly a roller coaster all right well with that guys

it's a pleasure to see you guys how was uh you know I'll tell you I caught a bunch

of fish that were about this big and a few that let me back up they were like

like that so where are you actually I went to uh Northern Canada

Saskatchewan and uh there's a place there called in the lodge Eno Lake Lodge a buddy of Mino

owns that and um and then we take a float plane on into

the Northern Territories and and go to some lakes that have never been fished

or rarely fished and and uh slay them so it was a good trip

and I appreciate you guys covering for me last week yeah not a problem everybody basically

just him talking the whole time [Laughter]

try I tried the whole time I don't know if that's uh if that's a uh

uh indication of your knowledge or no I'm just pretty good at feeling Dead Space dead air right like I'm the filler

guy it's okay I understand all right guys well thanks a lot and uh

we will see you guys next week and um looking forward to hanging out with

you guys at the end of this month yeah in a couple more weeks right yep oh it

is yes it is two weeks oh wow yeah about two weeks away guys uh I guess it's

worth saying here uh FC uh fcic and uh

the CFI their combined convention is going to be in Orlando so if you haven't gotten a 10 if you don't plan on

attending or you hadn't thought about attending I would strongly encourage you to uh get down and come hang out with

some professionals that can look we all learn from somebody I I learned from people I know that Jose and

Daniel learn from others that these shows come down and and you can see a

bunch of different types of businesses and how they run and they people will talk to you and help you through some of

your problems so I encourage you to get down there and experience it and most importantly Crystal will be there

yeah and Crystal will be there go down check check out the uh the show has I almost said go down there and check out

Crystal

this is the new family member oh what kind of dog is that

thanks Luna all right welcome to the family Linda

she's a Shiba Inu yeah

it's my daughter's dog I've heard that somewhere

Dogecoin is based on a Shiba Inu dog oh it's a cryptocurrency thing

gotcha sweet that's a cutie

all right guys we'll talk to you guys next week appreciate you Jordan and we will see

you guys later everyone thanks guys hey bye