In this episode of Business Lunch, we walk you through the ins and outs of managing business finances. We explain the potential pitfalls of keeping more than a month's worth of operating expenses in the account. We explain how that can lead to complacency and unnecessary spending. We also explain how business can cover unexpected events and tricky payroll situations, like those pesky months with three payroll cycles or prepaying for holidays. We go beyond the glamor of being an entrepreneur to the real details behind the scenes.

Highlights:

"We're very big on lifestyle and freedom and all those kinds of things. But it's also important to acknowledge that it's not a perfect situation very often."

"There are times when things are absolutely amazing. And there's times when things could frankly be a hell of a lot better. And I think that's called life. I think that's called entrepreneurship"

"If we're buying a business, I hate the agreement part. I love negotiation and strategy. But when it comes to reading a 75-page document, I just absolutely can't stand it."

Timestamps:

00:00 - Operating Account Insight

01:15 - Personal Calendar Reflection

02:15 - Acknowledging Imperfections

03:15 - Loving Strategy but Hating Legal Work

06:52 - The Reality of Entrepreneurship

07:39 - Cyclicality in Business

08:54 - Handling Excess Profit

10:20 - Minimum Operating Reserve

10:37 - Importance of Operational Cash

10:44 - Prepaying Payroll Challenges

Connect with me on social:

• TikTok: Check out my TikTok Here
• Instagram: Check out my Instagram Here
• Facebook: Check out my Facebook Here
• LinkedIn: Check out my LinkedIn Here
• Subscribe to my YouTube 👉 Here

Resources:

• 7 Steps to Scalable workbook

• Get my book, Zero Down, FREE

Mentioned in this episode:

Build Your CEO Dashboard

Get one report every week of the key metrics you need to know with the CEO Dashboard!

CEO Dashboard