The dust has well and truly settled and I’m sure we are all back into the craziness that is our daily life.
Thank you so much for letting us guide you through the 8 HR GET PROFIT Workshop, I loved every minute.
And I’m also loving seeing some of you add us on Social Media and sharing your experiences. Please do keep in touch!
Please find below your follow up material, which you can download & use –
- 15 KEY LEARNINGS from GET PROFIT.
- A Bank Account Kit to help you start your Profit War Chest.
- Quickly crunch your numbers and see how The 7 Profit Multipliers can dramatically magnify your Profits, Business Value and Freedom.
- A Private Facebook Group of enlightened Business owners, sharing wins & challenges as they get Cashed Up, and implement strategies from the GET PROFIT workshop.
- Links to FAQ’s & Additional FREE resources to kickstart your Cashed Up journey.
Now, if you’ve got any further questions, please reply to me here, and I’ll get back to you asap.
In the meantime, feel free to keep the inspiration going by subscribing to the Podcast – Inspiring Business for Good – and I can’t wait to see you HAVE MORE, so you can LIVE MORE & GIVE MORE.
15 KEY LEARNINGS FROM GET PROFIT WORKSHOP with Inspire – Life Changing Accountants
1 – Inspire before you Expire. Freedom Days = $Net Wealth / Cost of Living Per Day, measures true wealth based on the philosophy that what makes us truly rich is the time we have on this earth, not the money we have in our accounts.
2 – Family. Your Most Important Business. Knowing your WHY in Business can be as important as Knowing your NUMBERS. Business is Tough. “Business is a walk in the park … JURASSIC PARK!” If you want to go the distance, make it through the hard times and get Cashed Up, your WHY is what will get you through. What is your why?
3 – The Toilet Roll. If we see a resource as abundant we will spend it as if it will be abundant forever. For example the full toilet roll encourages us to ‘yank’ the roll and pull reams and reams of paper, then maybe scrunch or fold it, before putting it to use. Could we have got away with just a few squares? Probably. Having lots of money accumulate into one central bank account, signals that we’re abundant, and so how do we spend it? As if it will be there forever! Until it isn’t. Never forget the true value of a dollar. Never forget the days when you could make something happen from nothing.
4 – Are you Hot or Horny? Numbers can be like a foreign language. Learn the basics so you can get Cashed Up, and avoid embarrassing yourself!
5 – The Ultimate Profit Formula = 6 ways to Improve Your Profit = LEADS x CONVERSION = NEW CLIENTS + EXISTING CLIENTS = TOTAL CLIENTS x RETENTION x AV. SPEND x AV. FREQUENCY = REVENUE x MARGIN = PROFIT.
6 – The Ultimate Freedom Formula = PROFIT x BIZ. SALE MULTIPLE = BUSINESS VALUE + PERSONAL ASSETS – DEBT = NET WEALTH / COST OF LIVING PER DAY = FREEDOM DAYS.
7 – Magical Fairy Wand. The only thing that stands between you and what you are worth, is YOU. Next time you’re asked ‘how much?’ sprinkle yourself with an extra generous dash of fairy dust, and speak your true worth.
8 – Respect PARKINSONS LAW! An available resource will always be used up e.g. Time – ‘if it’s available, we’ll use it’, e.g. Food – ‘if it’s there, we’ll eat it’, e.g. Money – if it’s there, we’ll spend it’.
9 – “Sales – Profit = Expenses”, means that a small percentage of every dollar that comes in the door, first gets squirreled away into your Profit War Chest. For more advanced application of this formula, I recommend reading the book Profit First by Mike Michalowicz.
10 – Use a Smaller Plate. Changing your habits can be hard. Eating food from a smaller plate, can help us stick with our ‘fill up the plate, eat everything’ mentality, while consuming less calories. Similarly, ‘spending all the money, until it’s gone’ can continue once you’ve first put money into your Profit War Chest.
11 – “The No Temptation Choc Top”. Protect your Profit & Tax War Chest at all cost. When things get tough, these will be the first 2 accounts we’ll tend to steal from.
12 – A Family Trust is like a Jug. We love Discretionary Trusts, because they give us the ‘discretion’ about who pays the tax & when. The idea: distribute the profits to family members & entities who pay tax at a lower rate than if you were a sole trader paying tax at about 50%.
13 – Never, ever, ever operate as a Sole Trader.
14 – The Cashed Up Scorecard. 40 x priorities to kickstart your Cashed Up journey. This is both a master to do list for you over the next 3 to 5 years, but also an idea of the types of smart financial decisions that a Life Changing Accountant can help you and your family to make.
15 – Purpose Beyond Profits. “When a business has no purpose other than to succeed financially, everyone involved adopts the same mentality. Customers only buy for their personal financial gain, employees work only for financial rewards and investors only inject funds in the hope of a quick return. This probably doesn’t cause a problem if everyone is making money but if ever the tide turns for just a short time, everyone runs for the exit.” Daniel Priestley
FAQ’s & Super Helpful Bonus Resources to kickstart your Cashed Up journey …
What is a Profit War Chest?
In a world where we tend to spend all we earn, a Profit War Chest is a separate bank account at a separate bank where we squirrel away a small percentage of every dollar we receive in the business.
How do I set up a Profit War Chest?
Here are the characteristics of a Profit War Chest –
- Separate Bank Account.
- Separate Bank.
- Low fee account.
- Low transactions.
- Named “Profit War Chest”.
- Make it VERY difficult to withdraw from –
- No online access – so you have to go into the branch to withdraw.
- Make the account “two to sign” – so someone else has to agree to let you withdraw.
- 48 hour delayed access – so you have to wait before you can spend. Give your logical brain 48 hours to make sure you REALLY want to withdraw
How much do I park in my Profit War Chest?
To begin, just deposit 1% of every invoice you receive.
Best to instruct your accounts / finance person to do this for you. For the first quarter the goal is about developing the habit of contributing to your Profit War Chest. Once the system is set up (the hard bit), you can look at ratcheting up the percentage you squirrel away.
When can I take the money out of my Profit War Chest?
We recommend you take a distribution at the end of every quarter.
1st April – after building up the balance in January, February and March.
1st July – after building up the balance in April, May and June.
1st October – after building up the balance in July, August and September.
1st January – after building up the balance in October, November & December.
We’ll host a FB LIVE in the HAVE MORE, LIVE MORE, GIVE MORE (Private) Facebook Group close to each of these dates to help answer any real time questions.
What can I do with cash that accumulates in my Profit War Chest?
- Build a Rainy Day fund.
- Pay down debt.
- Treat yourself and the family.
- Take a (well earned) Holiday.
- Give Back to Charities / Churches / Causes close to your heart.
- Reinvest into the business.
Can I use this same method for my Tax?
Yes! We call it a Tax War Chest. Answer these questions to see if you need one –
- Have you ever had a Business Activity Statement or “BAS” that was due, that you couldn’t pay in full and on time?
- Have you ever received a Surprise Tax Bill from your accountant, only to realise you’ve actually spent everything?
- Has the ATO been chasing you for a Tax Debt causing you stress frustration and anxiety?
If you answered YES to any of the above you need to set up a Tax War Chest too. Same concept as a Profit War Chest. Separate bank account, at a separate bank (separate to your main operating account, but could be the same bank as your Profit War Chest).
Where do I go for more help implementing the Profit War Chest?
The HAVE MORE, LIVE MORE, GIVE MORE (Private) Facebook Group is a support community for participants in the challenge. You can share wins and ask questions as you build up your Profit War Chest.
Any other free resources to help me get Cashed Up?
- “Building your Profit War Chest” – Video Tutorials & Bank account kit.
- Monthly Accountability Email & SMS to keep you on track.
- Support from the HAVE MORE, LIVE MORE, GIVE MORE (Private) Facebook Community.
- Access the “Profit Multiplier” – 7 ways to dramatically magnify your Profit.
- Download “Cashed Up Strategy Map” – 316 proven strategies to help you get Cashed Up.
- $100 Gift Card a 2nd Opinion on Tax, guaranteed to find $500 in Tax Savings or it’s free. We usually find $600 to $60,000 in tax savings.