The Financial Gravity Podcast

Clark Nichols does something very interesting, but that’s not talked or written about much — he takes companies public. Going public is a lot easier and cheaper than you might think, but there are advantages and disadvantages to it, so entrepreneurs and business owners need to go in with their eyes wide open. Join John and Clark as they discuss the ins and outs of taking a company public, and stay tuned to hear some simple tips and tricks that you can use if you’re planning to take your company public.

Key Takeaways:

[:18] John introduces his guest for this episode — Clark Nichols.

[1:13] Who is Clark? What is his history?

[6:10] Why would a small company want to go public?

[9:40] When John's company went public, they had negative cash flow, but that is unavoidable to build the infrastructure required for a much larger, profit-making company.

[10:58] Having a business plan is crucial when it comes to going public. Clark elaborates on this with an example.

[13:22] John simplifies the concept — going public creates currency for your company.

[17:13] A public company is usually worth more than a private company. John shares the example of Warren Buffet and Duracell.

[20:19] Going public from top-down is very different from going public from bottom-up. Use the Internet as a resource to find people to support you.

[21:33] First, you have to understand the critical difference between marketing and public relations. Clark shares an example from his personal experience.

[27:08] Everything Clark does is outside the box. Remember, he's working from bottom-up, just like all the entrepreneurs out there.

[27:55] There's something like a pre-entry level market on the New York Stock Exchange for smaller companies, that allows access to all broker dealers who can promote your stock for you.

[28:56] Clark talks briefly about PIPE (Private Interest and Public Equity) and the pros and cons of some methods of raising capital.

[32:57] Raising capital by going to the bank used to be possible, but now, banks want to hedge their bets against assets.

[34:33] There are platforms that you can tap into to get access to companies that are looking to give money away. Unfortunately, it's a real challenge to get any money from them.

[35:24] Clark shares another trick to get companies to say “yes,” to giving you money.

[39:27] Running a public company is like running a whole other company from the one you started off with, and you need to be prepared to deal with that. Is it worth it?

[42:30] Clark gives entrepreneurs a tip to avoid failure. It's all about solving problems, starting with the most important one first.

[45:33] Contact Clark via his website — Clarknichols.com!

[47:15] A concluding word of advice from Clark about writing your business plans — stick to the facts! Don't use it as a sales instrument.

Mentioned in This Episode:

Financial Gravity

The Financial Gravity Podcast with John Pollock

Clark Nichols and Associates, LLC

Upwork (Formerly Elance-oDesk)

Peter Drucker

Strategic Coach

Diapers 2 Dividends Cartoon

The IRS Collections Division has engaged a consulting firm to send a customer satisfaction survey to a random group of taxpayers.

Key Takeaways:

[:14] The people who work at the IRS really can be proud to do an important job.

[:48] Some think that the new ban on government hiring shouldn’t apply to the IRS.

[1:14] Ed shares a tax analogy from Louis XIV’s finance minister.

[3:08] Ed thinks there are a few questions that should be added to the IRS survey.

[4:28] Do you have a plan in place to pay less tax? If not, check out financialgravity.com.

Mentioned in This Episode:

Financial Gravity

Jessica Rhodes is the founder and CEO of Interview Connections, a company that John uses to book himself for interviews on other podcasts. Doing interviews on other podcasts is an excellent way to promote your business, and Jessica's company has helped John with that tremendously. Jessica also has her own podcast, Rhodes to Success, and in today's episode she will be talking about podcasting, and her new book that's coming out soon. Jessica grew up in an entrepreneurial family, and is a millennial, so stay tuned to find out her thoughts on millennials starting businesses and how to rock the podcast!

Key Takeaways:

[:20] John introduces his guest for this episode — Jessica Rhodes.

[2:08] Jessica tells us about her entrepreneurial journey — Where did she come from? How did she get to where she is now?

[4:14] Jessica got into interview bookings as a business, because she recognized a need for that particular service.

[6:19] Jessica was in the right place at the right time to seize the opportunity when it presented itself, because she was working really hard.

[7:43] Jessica also did door-to-door sales. She shares her experiences in that area.

[9:20] How did Jessica's door-to-door sales experience inform how she runs her business now?

[11:54] More millennials are building lifestyle businesses, than achievement type businesses. What are Jessica's thoughts on that?

[14:00] John's advice for when employees ask for more money is to hand them a book called Earn It, by Jill Young.

[16:24] Jessica shares a little about how her business has grown since its inception, and some of her visions for the future.

[18:52] It's invaluable to have in-person meetings and brainstorming sessions, but Jessica also wants to provide flexibility to her employees.

[20:54] Being an entrepreneur is considered sexy these days, but not many people talk about the challenges that come with it. What are some struggles that Jessica has had?

[24:55] The USA is a country of immigrants, so it's likely that their descendants are entrepreneurs because of the risk-taking genes. But it's okay if you're not!

[27:11] John shares a tip for entrepreneurs out there who are feeling alone — check out Entrepreneurs Organization.

[30:15] Millennials have been called lazy, as a generation. What does Jessica think about that?

[36:11] What is Jessica's superpower or unique ability?

[39:10] What are some technologies that Jessica uses on a daily basis?

[44:35] Jessica has just published a book, Interview Connections: How to Rock the Podcast from Both Sides of the Mic! Get it for free at Jessica's website!

[45:26] Check out Jessica's business if you need to get your message out!

Mentioned in This Episode:

Financial Gravity

The Financial Gravity Podcast with John Pollock

Earn It, by Jill Young

Entrepreneurs’ Organization

Voxer

Slack

Rhodes to Success Podcast — Unique Abilities 2.0 with Julia Waller

Interview Connections: How to #ROCKTHEPODCAST from Both Sides of the Mic, by Jessica Rhodes

In today’s episode we explore the story of an enterprising American who joined the gig economy. Ironically, Jack Vitayanon went from being an IRS attorney to facing repercussions for tax evasion in his drug trafficking side job.

[:25] You may not have seen Breaking Bad, but you’ve at least heard of it.

[1:27] Breaking Bad was great fun to watch, but there was a good reason why the announcer always said, “Kids, don’t try this at home.”

[1:41] IRS attorney Jack Vitayanon is a real-life Walter White.

[2:48] How did agents from the Department of Homeland security bust Jack?

[3:55] Jack was caught using meth on video and shipping meth through the mail.

[5:11] Jack is now facing jail time for drug trafficking, and ironically, could also face jail time for not paying taxes on money he made trafficking drugs.

[5:43] The tax code includes a provision (Section 280E) that prevents drug dealers from writing off their legal business expenses.

[6:21] Taxes are now the least of Jack Vitayanon’s worries, but they aren’t the least of yours. Are you ready to start keeping more of your hard-earned money? For more information, check out FinancialGravity.com.

Financial Gravity

Breaking Bad

Tom Wheelright is a CPA. John is pretty hard on CPAs, because he thinks the industry is profoundly broken, but Tom and John are on the same page about that. In this episode, Tom will be talking about the moral component of tax planning — how you owe it to yourself to save on taxes and benefit from them, as well as investment in the real estate industry as a means of making more money through proper tax planning, as promised in the last episode. Tune in to find out what you could be doing to get to more tax-free wealth!

Key Takeaways:

[:22] John introduces his guest for today — Tom Wheelright, CPA.

[2:12] Tom thinks it is your moral obligation to lower your personal income taxes. But first, what is the tax law is, and what isn't it?

[7:09] Most CPAs focus on deferral, which is only about 5% of the tax code, and not on permanently reducing taxes, which is the bulk of the tax code!

[9:31] By paying too much tax to the government, you're not doing yourself any favors!

[14:00] Somebody has to pay those taxes, the question is who?

[14:50] Don't do something you don't believe in. Tom shares an example.

[17:00] The challenge is that most people are scared to death of the IRS. Bring in a tax professional to deal with the IRS for you!

[21:08] Let's talk about real estate. Why would someone want to invest in real estate?

[24:45] Real estate is one of the few places where the more you invest and the more money you make, the less tax you pay!

[29:11] If you invest properly in real estate, you should never pay tax on your cash flow, nor your capital gains!

[32:19] Diversification is not the way to make money, it's the way to keep money.

[35:40] After pulling out your money of the IRA and investing outside of the IRA, if you invest in real estate, you'll be ahead financially, in the first year.

[37:28] IRAs are not good or bad. Look at what you're going to do with the money and then decide the tax, don't do it the other way around.

[38:30] You should always be considering the after-tax return on your investments.

[40:19] You can head to Tom's website for some great information and free giveaways!

[43:50] Tom's book is a great resource, wherever you are, in or out of the country.

[46:35] Take Tom's book to your tax adviser — their reaction will help you gauge if you need a new tax adviser or not!

[49:28] We don't know what the tax laws are going to be like in the future, which is why it's important to have a tax adviser who is willing to grow and shift with the changing tax laws.

[50:41] Tom's last piece of advice is that taxes can be a real positive thing in your life, so don't ignore it!

Mentioned in This Episode:

Financial Gravity

The Financial Gravity Podcast with John Pollock

Tax-Free Wealth, by Tom Wheelright

Tax-Free Wealth Advisor

Today our host, Ed Lyon, Chief Tax Strategist at Financial Gravity, walks us through the implications of a new Philadelphia tax on soda, and its unexpected potential consequences.

Key Takeaways:

[:18] The 1972 film, The Godfather, paints a picture picture of a time in American history that we don’t expect to see again. The film traces much of its backstory to the Volstead Act, which began Prohibition.

[1:13] Last year the Philadelphia City Council imposed a 1.5 cent per ounce tax on soda and artificially sweetened drinks, to finance pre-kindergarten and local development projects.

[2:15] This new tax costs $2,917.50 per truckload of soda.

[3:09] Retailers are struggling, trying to decide whether or not they should pass the cost of that tax on to consumers.

[3:32] The Philadelphia City council was careful to close all loopholes for this tax.

[4:12] Could this new tax mean new opportunity for Philadelphia’s once-mighty mafia?

[5:29] 58% of cigarettes sold in New York are bootlegged.

[6:19] Lots of taxes turn out to be fairly easy to avoid, and it’s our job to help you avoid them. Are you ready to start keeping more of your hard-earned money? For more information, check out FinancialGravity.com.

Mentioned in This Episode:

Financial Gravity

The Godfather

Dr. David Phelps has done in his career, what a lot of people are doing — pivoting. He used to be a practicing dentist, with his own private practice for 21 years, but even while he was in college, he had an entrepreneurial mindset. After years of being stuck in the grind, he has now moved in a different direction, to pursue his fortune in the real estate market. Tune in to hear David’s advice on when you should pivot, and how to get yourself on the road to the freedom you desire.

Key Takeaways:

[:21] John introduces his guest for this episode — Dr. David Phelps.

[1:10] David shares a little about his story.

[4:07] David's turning point was when his child became ill. John has the same story.

[5:24] When David made that shift in his career, he already had some experience dealing with real estate.

[7:17] Dentists make a lot of money, but after a while, many of them don't love what they're doing anymore.

[11:24] What does David mean by "lifestyle creep"?

[14:06] There's profound unhappiness within objectively successful people, which feeds the unhappiness. David helps people with that.

[16:25] It's a shame that nobody shows doctors the phases of pivoting that they should be doing!

[17:50] This issue is something that affects entrepreneurs across a variety of industries, not just doctors!

[19:30] David has managed to solve this problem with his organization, Freedom Founders. How does David help people get more freedom in their lives?

[22:55] Let's talk about real estate. What's wrong with most real estate sales pitches? What does David do differently?

[26:25] Investing can be a business, but it is a full-time business. It is, however, possible to get into business without running it like a business.

[30:21] Next week, tune in to hear Tom Wheelright, a CPA specializing in real estate investing.

[34:17] David mentioned the idea of best geography. It's actually not the best idea to invest where you know — David elaborates.

[40:10] For more information, check out David's website, Freedom Founders.

[41:33] What is David's unique superpower?

[42:23] What apps and technology is David using?

[45:37] David may not have started in this industry, but he has gotten very good at it, and has a great network of vendors in the real estate industry.

[47:01] Freedom Founders is like an aggregator for vendors, so you can be sure that the people you're working with, are the kind of people you want to be working with.

Mentioned in This Episode:

Financial Gravity

The Financial Gravity Podcast with John Pollock

Freedom Founders

LastPass

Google Drive

Dropbox

Voxer

Zoom

Tommy Benizio owns a professional football club in Allen, Texas. He started off playing hockey, but discovered that his passion lay in managing teams, rather than playing the sport. He helped to start the Indoor Football League, and served as the commissioner of the Indoor Football League for many years, before he was approached to take over the Allen Wranglers, which he now runs as the team Texas Revolution. In today's episode, listen to Tommy's story of perseverance and dedication, that helped him to get to where he is today.

Key Takeaways:

[:20] John introduces his guest for today — Tommy Benizio

[:55] How did Tommy get to own a football team?

[7:30] Tommy's journey has been fraught with major roadblocks, but he has not let that get him down, and has continued taking his team to greater heights.

[9:01] Tommy faced a major roadblock when the Dallas Cowboys refused to be part of the league. Most people would have thrown in the towel at that point, but not Tommy!

[11:10] Most teams in Tommy's league are run as hobbies, whereas Tommy's team has to run as a business, and losses are not acceptable.

[13:40] What makes the Indoor Football League different from the NFL? What can fans expect when they go to a game?

[16:37] The Indoor Football League field is much smaller than a traditional football field, and this creates a much more action-packed game, but a lot of the rules a very similar to the NFL.

[18:50] Tommy's story is one of perseverance.

[21:45] What is Tommy's superpower?

[23:34] Even in "non-cyclical" industries, it is important to reassess the things that you did well, and did poorly, in your business.

[24:17] Tommy's strategy is to reassess and plan mid-way through his season, to be prepared for the next season!

[27:02] Tommy's team’s goal is to get 100% of the existing group of sponsors and ticket holders back on board before the season ends, so that they can spend the off-season focusing on recruiting new business to grow.

[30:13] What apps or technology does Tommy find important in his everyday life?

[34:29] Folks in the Allen, Texas area, take note! The Indoor Football League season starts February 24th! Check out the Texas Revolution website and Facebook page for more information!

Mentioned in This Episode:

Financial Gravity

The Financial Gravity Podcast with John Pollock

Texas Revolution

Texas Revolution on Facebook

Bluetooth

Kevin Hodes is the founder and CEO of Swypit, a credit card processing company. He is an entrepreneur with a very interesting story, because he has made a business within a business. In today's episode, Kevin discusses how and why he's carved out his place in this industry. Tune in to find out how you, too, can build a referral-based business in a competitive industry, by starting out slow, but building long-lasting relationships!

Key Takeaways:

[:24] John is bringing you today's show from his guest Kevin Hodes's office!

[1:22] What is Kevin's elevator pitch? What does he do?

[4:15]  It's possible to build a business entirely from referrals, and Kevin has done it!

[5:44] Kevin's business is all about creating and maintaining long-term relationships, and it is possible to build a robust business in a competitive, low-margin industry!

[9:58] John shares an example of how Kevin was able to help his business.

[11:55] Was there a point in Kevin's career, that he thought his business was not going to work?

[13:06] Never just chase the big ones — all clients are equally important!

[16:53] 2 lessons from Kevin: treat everyone equally, and don't chase elephants!

[18:25] What advice does Kevin have for an entrepreneur starting out?

[23:23] Kevin found a charity he believed in, and supported it with his time and resources, which in turn helped his business.

[28:40] Business owners are not selfish — their entire business model requires service!

[33:19] Check out Kevin's business — swypit.com. Bonus pro tip — make sure your name pops up first on Google!

[36:04] Kevin shares a little about a heat-mapping technology that he offers his clients.

[42:05] Stop worrying about your credit card data being stolen!

[45:15] Word of advice from Kevin — don't feel locked in to your credit card processor because of the lease on the machine. The machine and the credit card processing are two separate things!

[46:19] What is Kevin's limit on what kind of clients he will take on?

[48:55] If you want to limit the number of calls you're getting from telemarketers, pretend you're going out of business!

Mentioned in This Episode:

Financial Gravity

The Financial Gravity Podcast with John Pollock

Swypit

Electronic Transaction Association

Kevin Hodes, Certified Payment Professional

Square Point of Sale

Jill Young is a Certified EOS (Entrepreneurial Operating System) Implementer who works with entrepreneurial leadership teams to get them aligned around vision, get them disciplined and accountable, and get them healthy to communicate with each other. She recently published Earn It, a revolutionary book that aims to furnish you with the tools you need to increase productivity in your company, and make more money. Tune in to find out more about what Jill has to say about communication between employees and bosses, and how getting everyone on the team on the same page, gets you to success.

Key Takeaways:

[:20] John introduces today's guest — Jill Young.

[1:30] Jill gives us her elevator pitch on what she does.

[4:16] John and Jill discuss her new book "Earn It."

[6:05] Jill has had the unique opportunity to observe the relationship between employees and bosses.

[7:24] It's a repeatable pattern that bosses and employees do not communicate on the same level.

[10:39] The book provides employees with a tool to see the same thing that the leadership team is seeing.

[11:37] When will Jill's book be available for purchase? Mid-February!

[13:00] How will companies use Jill's book?

[17:25] Where does Jill's desire to be a "business scientist" come from?

[21:00] We need to find joy in being productive!

[24:00] It doesn't matter what system you use, as long as it gets you the results you want.

[25:42] How did Jill get introduced to EOS? She shares her "embellished" story!

[28:45] There are two books that tell the EOS story, focusing on two different aspects — Get a Grip, and Traction. Jill's book, Earn It, combines the best of the two!

[31:30] Jill shares an entrepreneurial story where she thought the end was near.

[36:09] The team that got you to where you are, may not be the team to take you to the next level. Remember that!

[38:14] What is Jill's superpower or unique ability?

[41:58] Potential has nothing to do with your education or background, it has everything to do with your attitude, mindset and drive.

[47:34] What are some apps or technology that Jill uses, that have an impact on her life?

[55:36] Text the word CHAPTER to 44222 to get your free preview of Jill's new book, Earn It. And remember to visit Jill's websites too!

Mentioned in This Episode:

Financial Gravity

The Financial Gravity Podcast with John Pollock

Earn It, by Jill E. Young

Simon Sinek on Millennials in the Workplace

Get a Grip, by Gino Wickman and Mike Paton

E-Myth

Mastering the Rockefeller Habits, by Verne Harnish

Delivering Happiness, by Tony Hsieh

Headspace

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