A summary of things you should know about PACE according to Jesse Mecham: Introduction In this episode Jesse Mecham shares his book, PACE, where he shares a unique and simpleRead More
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]]>In this episode Jesse Mecham shares his book, PACE, where he shares a unique and simple method to balance your cash flow and keep more of you money.
In his book, Jesse shows you the way to watch your checking account balance grow, confidently make a new hire, and give yourself a consistently growing paycheck. The goal of the book is to teach you how to squeeze the maximum value out of every dollar that flows through your business and pinpoint where your current finance system is broken.
This book is for entrepreneurs who have a hard time understanding accounting and need a simple yet effective monetary system for managing the cash flow of their business.
This book is has nothing to do with what you would call traditional book keeping. This book is a method for business owners that allow them to think about their cash flow in a new way and make decisions based on this framework of cash flow that helps their business grow.
I purposely made the book very short so you could read the book straight through sitting on an airplane.
I want the reader to recognize that they could see their books and their finances as a strategic value added piece of information and not a necessary evil for compliance.
The first part of the book is my story and how I stumbled into being a small business owner. My business was doing quite well but I was still frozen with fear and I recognized that just because revenues were growing that didn’t mean that I was feeling any more comfortable.
The next little bit I kind of talk through the current state of the art as it relates to bookkeeping and recognize that most business owners have variable incomes or their income is very seasonal and their expenses are not spread evenly throughout the year. I try to get business owners to go from looking backward and complying to looking forward and starting to plan and prioritize.
The title of the book PACE is an acronym made up of four rules. The first rule of PACE is to prioritize what you have. I want business owners to really drill down and think about the money they have on hand and decide exactly what that money needs to do before more money comes into the business.
The second rule eludes a lot of business owners and that’s to anticipate less frequent expenses. The biggest one that small business owners deal with is cash flow, specifically as it relates to taxes. This is one example where I want business owners to look ahead and break apart larger less frequent expenses in to more manageable monthly amounts.
The third rule of PACE is that you change. You take whatever information you have that is relevant at the time and then if you get new information you change your plan.
The last rule is that we want the business owner to establish what we call a buffer, a little bit of a reserve so that they aren’t constantly stressed and right on the edge of financial disaster. For the most part the business owner needs to have one to two months of revenue. This is hard to believe for some but it is totally doable as you start to prioritize your expenses following that first rule and you will start to see how you can build that reserve over time.
I am an entrepreneur; I founded a company called YouNeedABudget.com. I have five kids; I live in the beautiful state of Utah and living the dream.
I am in the realm where I teach individuals and families how to manage their money and we do a pretty good job of it. We have taught hundreds of thousands of people how to turn their finances around. As a small business owner I realized that my finances were stressing me out and about seven years in to being a small business owner I realized that I could apply the same methods that I have been teaching families. I since applied those same methods to my business and it’s proven over the last several years to be one of the best things I’ve done for my business. I decided I wanted to get the word out and alleviate some of that stress to other business owners.
Getting Things Done by David Allen
Titan: The Life of John D. Rockefeller, Sr by Ron Chernow
Buy PACE by Jesse Mecham on Amazon today
Visit PACEhq.com to learn more about Jesse and his book
Visit YouNeedABudget.com to learn more about Jesse’s company
Follow Jesse Mecham on Twitter and Facebook
Download the full transcript here (coming soon)
Listen on iTunes, Stitcher , and SoundCloud
Related books: The Financially Savvy Entrepreneur by Emily Chase Smith | The Millionaire Master Plan by Roger Hamilton | You Can Retire Sooner Than You Think by Wes Moss
Relevant advice and tips: 5 Financial Mistakes That Devastate Startups | Top Financial Mistakes Entrepreneurs Make When Creating a New Business
What did you like and not like about this episode? Fill out this one minute survey here.
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]]>Top Financial Mistakes Entrepreneurs Make When Creating a New Business Managing to keep the cash flowing is one of the biggest concerns for every new entrepreneur. And what makes itRead More
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]]>Top Financial Mistakes Entrepreneurs Make When Creating a New Business
Managing to keep the cash flowing is one of the biggest concerns for every new entrepreneur. And what makes it even more difficult is their unawareness of the pitfalls along their path. Creating a new business is a big task, and keeping the cash flowing is part of the responsibility.
Forbes states that “There are almost 28 million small businesses in the US and over 22 million are self employed with no additional payroll or employees (these are called non-employers)”. The question is – how many of them will survive in the long run?
Even if you have a winning idea, a superb product or an excellent service, you need to pay attention to your finances to transform it into a successful endeavor. And while you have to focus on the dos, you also need to be careful about the don’ts.
In order to make your transformation flawless, let’s take a look at the top financial mistakes entrepreneurs make at the start.
Mistake 1: Biting off more than you can chew. You need to dream big when you start out as an entrepreneur. But if your dreams don’t fit your budget, you are in for some big trouble. Keep your head in the clouds and your feet on the ground.
Suppose you sell handmade gifts online. Do you really need to have a physical store? No. Yes, it can add to your business. But if you are hard pressed for money (that you invariably are at the start), isn’t it a better idea to make it a home-based business initially?
Mistake 2: Underestimate expenses. Just like a business plan, you need to have a financial plan at the beginning. But it’s a little different. While you need to stick to your business plan, you need to tweak your financial plan a little.
What do you need to do? Just double whatever you have set as expenses! Many businesses fail because they underestimate just how much they will need to keep things running. Doubling the figures gives you a cushion to fall back on even at the last minute.
Mistake 3: Falling prey to the allure of new. A new office furnished with modern pieces and showcasing the latest gadgets may look and feel nice. But unless you need to meet clients at your office regularly, it’s just a waste.
As a new entrepreneur, you need to focus on how you can save money. Instead, of new furniture, opt for used ones. They will be good, and come cheap too. If possible, let go the idea of an office entirely or maybe get an office suite instead of the entire deal.
Mistake 4: Employing individuals. Everyone feels high and mighty when they are in a position to employ others. But consider your decision a hundred times before you do it. It is one of most expensive choices you may make, and it can quickly become a cause of concern.
Instead of full-time employees, opt for contractual professionals for your business. They may have a higher hourly rate, but you won’t be burdened with them once the contract runs out. And as they are experts, you save time and money on training and supervision too.
Mistake 5: Not having an exit plan. A new entrepreneur needs to aim for success and prepare for failure. While you need to put in every ounce of your time, money and effort into your endeavor, make sure you have a safety net in case anything goes wrong.
It’s best to keep aside an emergency fund that will come in useful if your business doesn’t break even in the time frame you have set. It’s imperative that you don’t break into this fund to try to save your failing business. This will see you through until your next venture.
Be wary of these top financial mistakes entrepreneurs make and you will be able to better manage your finances, right from the start.
If you are looking for great books that provide insights into the financial management of a new business, I recommend the following 5 reads:
Business in Blue Jeans by Susan Baroncini-Moe – Listen to my interview with Susan here
The Financially Savvy Entrepreneur by Emily Chase Smith – Listen to my interview with Emily here
The Millionaire Master Plan by Roger James Hamilton – Listen to my interview with Roger here
Think and Grow Rich by Napoleon Hill – Listen to my interview with Don Green here
How To Get Unstuck by Barry Moltz – Listen to my interview with Barry here
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]]>A summary of things you should know about The Millionaire Master Plan according to Roger Hamilton Introduction In this episode Roger J Hamilton shares his book The Millionaire Master PlanRead More
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]]>In this episode Roger J Hamilton shares his book The Millionaire Master Plan in order to help entrepreneurs evaluate their personalized path to financial success. This book is perfect for the business person searching for key insights and real tips on how to advance to the next level in becoming rich. Hamilton lays out his plan in nine color-coded and easy-to-read steps that range from near poverty to high-end wealth.
The first thing is we have is natural pathways which are different from each other. For example someone like Richard Branson has taken a totally different path than someone like Warren Buffett. What makes this book different is you actually take an assessment to find out exactly which level you are at right now so that you then have a very clear direction to sort through all the information to figure out for yourself.
The first couple of chapters are critical to understanding exactly where you are. We are living in a world today of way too much information so no matter who the author is, it’s understanding that you know where you are right now that is critical. And from there you can jump to whatever specific chapter you need to see what the next steps are for you.
The one concept I would want the reader to take away is to be very, very clear that we have gone from this world of too much information to one where clarity of direction is absolutely critical. So there is no point going out trying to collect any more information from the internet, news or book until you are very clear where you are and where you want to go. The moment you get that precise in your thinking, is a moment that people all around you can help you and the moment that you start selecting precisely what you should be looking at.
The first chapter, which is called your natural path, I ask what your natural genius is and break it down into the four types. After that you take an assessment online and it allows you to see exactly which one you are.
The next part of this first section is the nine levels that you go through that then allows you to break down the rest of the book.
The nine levels are broken up into three different spectrums that have three levels in each one. The nine levels are intro-red, red, orange, yellow, green, blue, indigo, violet and ultra violet. Each level is color-coded so that it is easy to understand and apply.
This book gives a map which allows the reader to negate exactly where they need to go and what they need to be doing.
“We’re are all born a genius but if you judge a fish by its ability to climb a tree it’ll live his whole life believing its stupid.” – Roger James Hamilton
“It’s not about multiple streams but multiple teams.” – Roger James Hamilton
I am an entrepreneur based in Bali Indonesia where I have an entrepreneur resort that we run. I also have a number of profiling tools that was set up for entrepreneurs including Wealth Dynamics which has become the #1 in the world.
One of the biggest things that I have learned in entrepreneurship is there has been no clear map that suites everyone and I wanted to make sure that was exposed.
The Hero’s Journey by Joseph Campbell
Buy The Millionaire Master Plan by Roger Hamilton on Amazon today
Visit MillionaireMasterPlan.com to learn more about the book and GeniusU
Follow Roger Hamilton on Twitter and Facebook
Download the full transcript here
Listen on iTunes, Stitcher , and SoundCloud
Related books: The Financially Savvy Entrepreneur by Emily Chase Smith | Show Me The Money by Alan Barrell | Make Money Live Wealthy by Austin Netzley
Relevant advice and tips: 5 Financial Mistakes That Devastate Startups | 5 Personal Wealth Management Tips For Financial Stability
What did you like and not like about this episode? Fill out this one minute survey here.
The post A Preview of The Millionaire Master Plan with Roger J Hamilton appeared first on The Entrepreneurs Library.
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