In this episode, Jerry and Shena discuss the importance of financial forecasting and planning for the future of your business. They emphasize the need to create two different forecasts: one based on the worst-case scenario and one based on growth goals. They also highlight the importance of maximizing profits from existing work before attempting to scale. They discuss the concept of the 20-mile march and the dangers of growing too fast. They stress the significance of financial forecasting for obtaining financing, attracting buyers, and reducing stress as a business owner.

Takeaways

• Create two different forecasts: one based on the worst-case scenario and one based on growth goals
• Maximize profits from existing work before attempting to scale
• Follow the 20-mile march approach to growth: consistent and sustainable
• Financial forecasting is important for obtaining financing, attracting buyers, and reducing stress as a business owner

Chapters

00:00 Introduction: Financial Forecasting and Planning

02:10 Maximizing Profits from Existing Work

07:54 The 20-Mile March Approach to Growth

13:43 The Dangers of Growing Too Fast

17:30 The Significance of Financial Forecasting for Financing and Attracting Buyers

20:21 Reducing Stress as a Business Owner through Financial Forecasting

In this episode, Shena and Jerry discuss the importance of protecting your business through insurance and legal entity structure. They emphasize the need to avoid piercing the corporate veil by not intermingling personal and business finances. They also highlight the importance of having the right types of insurance coverage and ensuring that the coverage is accurately documented. They discuss the need for commercial insurance, including Inland Marine coverage for tools and equipment. They stress the importance of regularly reviewing and updating insurance policies and having open communication with an insurance agent who understands the specific needs of your business.

Takeaways

• Avoid piercing the corporate veil by keeping personal and business finances separate.
• Have the right types of insurance coverage and ensure accurate documentation.
• Regularly review and update insurance policies.
• Communicate openly with an insurance agent who understands your business needs.

Chapters

00:00 Introduction: Protecting Your Business

03:20 Insurance for Inventory and Business Assets

05:12 Classifying Your Business Correctly

07:33 Navigating the Complexities of Commercial Insurance

09:29 Updating Coverage Based on Payroll

13:17 Understanding Inland Marine Coverage

18:30 Verifying Insurance Documentation

21:20 Thinking Beyond Price: Coverage Needs

23:12 Conclusion: Be Proactive in Protecting Your Business

In this episode, Jerry Garcia and Shena White discuss business financing and the dos and don'ts of getting cash for your business. They explore the reasons why businesses may need an influx of cash, such as managing accounts receivable and making investments in marketing or equipment. The hosts highlight the importance of having a line of credit from your own bank and building cash reserves as the primary options for business financing. They caution against merchant cash advances (MCAs) due to their high fees and short payback periods. They also mention the option of selling equity in your business or bringing on a capital partner for additional funding.

Takeaways

• Having a line of credit from your own bank is a recommended option for business financing, as you only pay interest on the amount you use.
• Building cash reserves is crucial for business stability and the ability to handle unexpected expenses.
• Merchant cash advances (MCAs) should be approached with caution due to their high fees and short payback periods.
• Selling equity in your business or bringing on a capital partner can provide an influx of cash for expansion or investment.
• It is important to thoroughly understand the terms and seek professional advice before accepting any financing offers.

Chapters

00:00 Introduction: Business Financing and Getting Cash for Your Business

02:29 The Benefits of a Line of Credit from Your Own Bank

07:30 The Pitfalls of Merchant Cash Advances

15:14 Building Cash Reserves for Business Stability

20:22 Exploring Equity Financing and Capital Partners

24:41 Understanding the Terms: Seek Professional Advice

In this episode of the Blue Collar Wealth Club podcast, Jerry Garcia and Shena White discuss the importance of surviving the slow season in the trades industry. They share their experiences and provide tips on how to plan ahead and come out thriving on the other side. They emphasize the need for budgeting and saving money for the slow season, as well as exploring additional services and off-peak pricing. They also discuss the benefits of utilizing the slow season for maintenance, organization, and employee training.

Takeaways

• Plan ahead and save money for the slow season to ensure financial stability.
• Explore additional services and off-peak pricing to attract clients during the slow season.
• Utilize the slow season for maintenance, organization, and employee training.
• Think outside the box and be proactive in finding ways to capture market share during the slow season.



Chapters

00:00 Introduction: Surviving the Slow Season in the Trades Industry

02:31 Chapter 1: Budgeting and Saving for the Slow Season

04:24 Chapter 3: Keeping Employees Engaged and Fed during the Slow Season

06:19 Chapter 4: Utilizing the Slow Season for Maintenance and Organization

09:03 Chapter 5: Exploring Additional Services and Off-Peak Pricing

13:39 Chapter 6: Thinking Outside the Box to Capture Market Share during the Slow Season

Summary

In this conversation, Shena and Jerry discuss wealth building and the importance of investing in assets that generate both immediate cash flow and long-term value. They explore the concept of the 'hit by a bus test' and how to build a business that can survive without the owner. They also challenge the traditional approach to retirement planning and discuss alternative investment opportunities, such as multifamily syndication. They explain what multifamily syndication is and how it allows individuals to invest in large-scale apartment buildings. They highlight the benefits of passive investing, the potential returns, and the tax advantages of investing in real estate.

Takeaways

• Invest in assets that generate both immediate cash flow and long-term value.
• Build a business that can survive without the owner through proper systems and processes.
• Challenge the traditional approach to retirement planning and explore alternative investment opportunities.
• Multifamily syndication allows individuals to invest in large-scale apartment buildings and benefit from passive income and potential appreciation.
• Passive investing in real estate offers tax advantages and the potential for higher returns compared to traditional investment vehicles.

Chapters

00:00 Introduction: Wealth Building and Investing

00:55 The 'Hit by a Bus' Test: Business Continuity

05:27 Multifamily Syndication: Investing in Apartment Buildings

11:36 Passive Investing in Real Estate: Tax Advantages and Returns

Summary

In this episode, Shena discusses the importance of proper financial planning and cash flow management for long-term business success. She introduces the concept of the seven levers of cash and explains how each lever affects cash flow and profitability. The seven levers include income, pricing, cost of goods sold, overhead, accounts receivable, accounts payable, and inventory. Shena emphasizes the need for measuring and analyzing these levers to make informed decisions and optimize cash flow. She also shares practical tips and real-world examples to illustrate the importance of each lever.

Takeaways

• Proper financial planning and cash flow management are crucial for long-term business success.
• The seven levers of cash (income, pricing, cost of goods sold, overhead, accounts receivable, accounts payable, and inventory) impact cash flow and profitability.
• Measuring and analyzing each lever is essential for making informed decisions and optimizing cash flow.
• Negotiating with suppliers and managing inventory can significantly impact cash flow and profitability.
• Building wealth for the long term requires strategic financial planning and cash flow management.

Chapters

00:00 Introduction and the Importance of Financial Planning

01:26 Using Cash Flow Story to Analyze Cash Flow

04:20 The Impact of Debt Repayment on Cash Flow

05:13 The First Lever of Cash: Income

06:39 The Second Lever of Cash: Pricing

10:00 The Third Lever of Cash: Cost of Goods Sold

11:16 The Fourth Lever of Cash: Overhead

12:41 The Fifth Lever of Cash: Accounts Receivable

13:38 The Sixth Lever of Cash: Accounts Payable

14:56 The Seventh Lever of Cash: Inventory

28:53 Building Wealth for the Long Term

The conversation discusses the challenges and pitfalls of managing the financial aspect of a business, particularly for non-business and non-finance professionals. It highlights the importance of having a well-organized financial house to avoid overwhelming and scary situations. The conversation also explores the concept of over-leveraging and the consequences it can have on a business. The example of Toys R Us is used to illustrate how even successful businesses can go bankrupt if they don't manage their finances properly. The conversation concludes by teasing the next episode, which will focus on the steps to fix a bloated balance sheet.

Takeaways

• Managing the financial aspect of a business can be overwhelming and scary, especially for non-business and non-finance professionals.
• Having a well-organized financial house is crucial to avoid financial difficulties and ensure the long-term success of a business.
• Over-leveraging, particularly in the blue-collar sector, can lead to financial instability and bankruptcy.
• Even successful businesses can go bankrupt if they don't manage their finances properly.
• The next episode will discuss the steps to fix a bloated balance sheet.

Chapters

00:00 Navigating the Overwhelming Financial Aspect of a Business

02:47 The Consequences of Over-Leveraging in Business

04:38 Lessons from Toys R Us: Managing Finances for Long-Term Success

08:17 Fixing a Bloated Balance Sheet: The First Steps

Sharon Riddle shares her entrepreneurial experiences and real estate investing journey, drawing from her family's background in owning businesses in the blue-collar space. She discusses her family's businesses in construction, auto mechanics, and HVAC and plumbing, highlighting the importance of exceptional service and leveraging family reputation. Sharon then delves into her own investment business, Excalibur Investments of Texas, which she runs with her husband. They started with single-family residential properties and eventually transitioned to multifamily syndications. Sharon emphasizes the significance of working with experienced general partners and the challenges of the current market.

Takeaways

Family background in owning blue-collar businesses can provide valuable insights and connections for entrepreneurial ventures.

Leveraging family reputation and delivering exceptional service can contribute to the success of a business.

Transitioning from single-family residential properties to multifamily syndications can offer greater opportunities for growth and returns.

Working with experienced general partners and conducting thorough due diligence are crucial in real estate investing.

The current market presents challenges, including tighter lending conditions and the need for more stringent underwriting.

Chapters

00:00 Introduction and Family Background

05:26 Transitioning to Real Estate Investing

12:10 Private Lending and Challenges in the 2008 Market Crash

15:31 Getting into Multifamily Syndications

19:58 Investment Criteria and Challenges in the Current Market

25:54 Value-Add Strategies and Taking Properties Full Cycle

30:13 Book Recommendations and Conclusion

How to Find Sharon

www.excalibretexas.com

Facebook: Sharon Birdsong Riddle, Sharon Riddle, and Excalibre Investments of Texas

Instagram: Sharon Birdsong Riddle 

LinkedIn: Sharon Riddle and Excalibre Investments of Texas.

Book recommendations:

Tax Free Wealth by Tom Wheelwright and Rich Dad, Poor Dad by Robert Kiyosaki

Summary

In this conversation, Jerry Garcia and Shena White discuss the importance of exit planning for business owners. They highlight the fact that many businesses are not sellable because they lack the key elements that buyers are looking for. They emphasize the need for business owners to transition from being integral to the day-to-day operations to taking on an entrepreneurial role. They also discuss the challenges of selling a business when the owner is the face of the company and the importance of having a diverse customer base and trackable financials. They stress the need to start exit planning early and create a business that is saleable.

Takeaways

• Many businesses are not sellable because they lack the key elements that buyers are looking for.
• Business owners need to transition from being integral to the day-to-day operations to taking on an entrepreneurial role.
• Selling a business becomes challenging when the owner is the face of the company.
• Having a diverse customer base and trackable financials is crucial for a saleable business.
• Exit planning should start early to create a business that is saleable.

Chapters

00:00 Introduction: The Importance of Exit Planning

02:23 Transitioning from Day-to-Day Operations to an Entrepreneurial Role

07:02 The Challenges of Selling a Business When the Owner is the Face of the Company

08:25 The Significance of a Diverse Customer Base and Trackable Financials

14:47 Starting Exit Planning Early to Create a Saleable Business

Summary

In this episode, Shena and Jerry discuss the importance of cash flow for blue collar businesses. They highlight the issue of accounts receivable and how it can negatively impact cash flow. They emphasize the difference between cash flow and profitability, and the need to track and understand both. They also discuss the importance of creating budgets and estimates that accurately reflect the costs of materials and labor. Overall, the episode provides valuable insights and tips for managing cash flow in a business.

Takeaways

• Accounts receivable can significantly impact cash flow in a business.
• Understanding the difference between cash flow and profitability is crucial.
• Creating accurate budgets and estimates is essential for managing cash flow.
• Tracking and monitoring cash flow regularly is key to identifying and addressing issues.
• Seeking help and guidance from experts can provide valuable insights and solutions for managing cash flow.

Chapters

00:00 Introduction: Cash Flow as King

03:50 Understanding Cash Flow and Profitability

07:02 Paying Personal Expenses from Business Accounts

10:30 Tracking and Planning Cash Flow

12:54 The Impact of Accounts Receivable on Cash Flow

19:14 Being Data-Driven for Effective Cash Flow Management

23:28 Creating Constraints and Accurate Estimates

28:06 Transferring Estimates from Sales to Production

31:23 Overhead Costs and Profitability

33:46 Conclusion: Cash Flow as the Key to Success