On this episode of Unsuitable, we are again joined by Brad Martyn, the founder of FocusCFO. Throughout his career, Brad has developed a vast network of business relationships, from marketing professionals to financial experts, and most everything in-between.

Brad will share why surrounding yourself with other business owners is the perfect way to invest, and reinvest, in the continued success of your business.

No one can do everything in business. Early in a business’ lifecycle, the business owner might have to do everything from taking out the trash to HR, but that’s not sustainable in the long term.

Business owners have the greatest impact on their business when they are able to focus on the things they want to do, and the things they are best at. Business relationships are a great resource for filling in the weak spots of a business owner, whether that’s a mentor, coach, or advisory board.

There’s probably more readily available and valuable information being offered than there are business owners willing to listen. Often, the entrepreneur's greatest asset – their ego – is also their downfall, because entrepreneurs don’t always listen.

Success leaves clues – follow them.

There are four areas that are critical for every business.

Product – You have to be able to efficiently develop, refine, and distribute new products.

Marketing – You have to be able to find and connect with customers.

People – You have to surround yourself with top talent.

Finance – You have to understand your finances and be able to manage them, effectively and legally.

As a business owner, focus on your strongest areas. You are diminishing your impact, and wasting money, by spending time in an area that you don’t enjoy or aren’t skilled in.

After you identify your strength, you need to identify your biggest need and find people with complementary strengths. Reach out to other companies, your advisory group, CPA, or lawyer for connections throughout your market or state.

You don’t need to know how to do everything – you just need to find the people who can do everything you can’t.

Like what you heard? Check out recent posts about this topic to learn more.

On this episode of Unsuitable, we are again joined by Brad Martyn, the founder of FocusCFO. Throughout his career, Brad has developed a vast network of business relationships, from marketing professionals to financial experts, and most everything in-between.

Brad will share why surrounding yourself with other business owners is the perfect way to invest, and reinvest, in the continued success of your business.

No one can do everything in business. Early in a business’ lifecycle, the business owner might have to do everything from taking out the trash to HR, but that’s not sustainable in the long term.

Business owners have the greatest impact on their business when they are able to focus on the things they want to do, and the things they are best at. Business relationships are a great resource for filling in the weak spots of a business owner, whether that’s a mentor, coach, or advisory board.

There’s probably more readily available and valuable information being offered than there are business owners willing to listen. Often, the entrepreneur's greatest asset – their ego – is also their downfall, because entrepreneurs don’t always listen.

Success leaves clues – follow them.

 

There are four areas that are critical for every business.

• Product – You have to be able to efficiently develop, refine, and distribute new products.
• Marketing – You have to be able to find and connect with customers.
• People – You have to surround yourself with top talent.
• Finance – You have to understand your finances and be able to manage them, effectively and legally.

 

As a business owner, focus on your strongest areas. You are diminishing your impact, and wasting money, by spending time in an area that you don’t enjoy or aren’t skilled in.

After you identify your strength, you need to identify your biggest need and find people with complementary strengths. Reach out to other companies, your advisory group, CPA, or lawyer for connections throughout your market or state.

You don’t need to know how to do everything – you just need to find the people who can do everything you can’t.

 

Like what you heard? Check out recent posts about this topic to learn more.

As a principal and director of business valuations at Rea & Associates, Tim McDaniel has built a career working with those who are looking to maximize the value of their business. And with 2,500 business valuations under his belt, it’s safe to say he knows what he’s doing. On this episode of unsuitable on Rea Radio, Tim will share three critical factors necessary for increasing a company’s overall value. 1. Sustainable Cash Flow – the amount of cash that is readily available to spend, or that someone can put into their pocket after purchasing a business. While the past can be a good indication of the future, we’re more concerned about factors affecting sustainability in the future. 2. Rate of Return – reflects how certain you are that the cash flow will continue in the future. It usually varies between 12 and 25 percent. More risk means your business requires a higher rate of return. If all your business is with one customer, this may negatively affect your rate. 3. Annual Growth Rate – has a significant impact on valuations, and this reflects the fact that investors are buying future growth. Companies with a higher P/E (Price / Earnings) Ratio have a higher growth rate. Those looking to improve the value of their business should consider two plans of attack. One should help you increase your company’s cash flow. The second should help you decrease your overall risk. Once these two legs of the stool are balanced, you can move forward on securing year-over-year growth. Those wishing to exit their business someday are advised to pay attention to their three-legged stool well in advance of retirement. The following points are generally good practice in the business valuation industry: • A young business owner with a new business can probably wait five years after their baseline valuation to reassess the value of their business. • Those starting to think about succession planning or exiting, should consider obtaining a new valuation every other year, particularly if the business has more than one shareholder. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter. We’ve also included some great resources on our website. Visit http://www.reacpa.com/podcast for articles, past podcast episodes and more.

As a principal and director of business valuations at Rea & Associates, Tim McDaniel has built a career working with those who are looking to maximize the value of their business. And with 2,500 business valuations under his belt, it’s safe to say he knows what he’s doing. On this episode of unsuitable on Rea Radio, Tim will share three critical factors necessary for increasing a company’s overall value. 1. Sustainable Cash Flow – the amount of cash that is readily available to spend, or that someone can put into their pocket after purchasing a business. While the past can be a good indication of the future, we’re more concerned about factors affecting sustainability in the future. 2. Rate of Return – reflects how certain you are that the cash flow will continue in the future. It usually varies between 12 and 25 percent. More risk means your business requires a higher rate of return. If all your business is with one customer, this may negatively affect your rate. 3. Annual Growth Rate – has a significant impact on valuations, and this reflects the fact that investors are buying future growth. Companies with a higher P/E (Price / Earnings) Ratio have a higher growth rate. Those looking to improve the value of their business should consider two plans of attack. One should help you increase your company’s cash flow. The second should help you decrease your overall risk. Once these two legs of the stool are balanced, you can move forward on securing year-over-year growth. Those wishing to exit their business someday are advised to pay attention to their three-legged stool well in advance of retirement. The following points are generally good practice in the business valuation industry: • A young business owner with a new business can probably wait five years after their baseline valuation to reassess the value of their business. • Those starting to think about succession planning or exiting, should consider obtaining a new valuation every other year, particularly if the business has more than one shareholder. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter. We’ve also included some great resources on our website. Visit http://www.reacpa.com/podcast for articles, past podcast episodes and more.

Establishing and promoting a company’s culture begins with your leadership team and their ability to set the example they want others throughout the business to follow. On this episode of unsuitable on Rea Radio, Annie Yoder and Mike Taylor join Dave to talk about the Rea culture and how communication and leadership’s ability to live the culture has set the tone for the entire firm. Annie is an advocate for sharing a company’s “tribal knowledge” and Mike Taylor, a Rea elder, has helped establish The Rea Way, which has been used to shape the frame work of the firm’s future. “The most successful companies and business owners that I have ever worked with are intentional about their culture.” –Mike Taylor Annie and Mike agree that an organization’s culture has to be intentional – not only the formation of the culture, but also how it is preserved. At Rea, our intentional culture building can be seen in our values statement, The Rea Way, through The Rea Academy and how we teach new employees and pass along information with younger staff through the ride-along program. It’s critical that business owners share their wealth of knowledge with their team. Culture isn’t just about making the work environment more pleasant (although that is a welcome effect). The Speed of Trust by Stephen M. R. Covey illustrates why a good culture is also good for the bottom line: High Speed + High Trust = Lower Cost. If there isn’t trust in leadership (i.e. a bad culture), then the company isn’t as efficient and costs increase. On top of that, turnover rates go up and engagement goes down – more hidden costs. “Never stop learning. Have fun. Enjoy the journey…” –The Rea Way Like what you heard? Check out recent posts about this topic to learn more. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter. We’ve also included some great resources on our website. Visit http://www.reacpa.com/podcast for articles, past podcast episodes and more.

Establishing and promoting a company’s culture begins with your leadership team and their ability to set the example they want others throughout the business to follow. On this episode of unsuitable on Rea Radio, Annie Yoder and Mike Taylor join Dave to talk about the Rea culture and how communication and leadership’s ability to live the culture has set the tone for the entire firm. Annie is an advocate for sharing a company’s “tribal knowledge” and Mike Taylor, a Rea elder, has helped establish The Rea Way, which has been used to shape the frame work of the firm’s future. “The most successful companies and business owners that I have ever worked with are intentional about their culture.” –Mike Taylor Annie and Mike agree that an organization’s culture has to be intentional – not only the formation of the culture, but also how it is preserved. At Rea, our intentional culture building can be seen in our values statement, The Rea Way, through The Rea Academy and how we teach new employees and pass along information with younger staff through the ride-along program. It’s critical that business owners share their wealth of knowledge with their team. Culture isn’t just about making the work environment more pleasant (although that is a welcome effect). The Speed of Trust by Stephen M. R. Covey illustrates why a good culture is also good for the bottom line: High Speed + High Trust = Lower Cost. If there isn’t trust in leadership (i.e. a bad culture), then the company isn’t as efficient and costs increase. On top of that, turnover rates go up and engagement goes down – more hidden costs. “Never stop learning. Have fun. Enjoy the journey…” –The Rea Way Like what you heard? Check out recent posts about this topic to learn more. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter. We’ve also included some great resources on our website. Visit http://www.reacpa.com/podcast for articles, past podcast episodes and more.

Looking for some critical tax planning advice that you can put in action now in preparation for next year’s tax return? Chris Axene, a principal in Rea’s Dublin office, is happy to oblige. On this episode of unsuitable on Rea Radio, Chris talks about business tax rates, business entity choices and how one ultimately impacts the other. On this episode of our award-winning podcast, you will learn why the choice of entity chosen for your business is important from a legal and tax perspective as well as insight into which options are available to you. You’ll also learn which service professionals should be in the room when drafting up the paperwork required to claim your entity’s choice of entity. The following are options for business owners: Sole Proprietor – Not technically an entity, this choice allows individuals to operate as a business and protect their personal assets. You might decide to be a sole proprietor if you are a freelancer or sell products online. LLC or Limited Liability Company – LLCs are highly flexible, and can have one or multiple owners. They can even make a tax election to be treated as an S Corp or C Corp. You might decide to be a LLC if you are in manufacturing or an entrepreneur. C Corp – For the past 40 years, C Corps have been considered a bad choice because both the entity and the owners are taxed for every dollar earned. Instead, most companies opt to register as a flow-through entity. If your exit strategy is to go public and get listed on the stock exchange, then you need to be a C Corp (or a flow-through entity). S Corp – An S Corp is a corporation with the Subchapter S designation, which allows the corporation to be treated as a flow-through entity. Remember, a flow-through entity is a legal entity where the income of the entity is treated as the income of investors or owners. The entity still files tax returns, but it is not taxed individually. Both the LLC and the S Corp are flow-through entities. When you are making this important decision and drafting the documents, it’s important to talk to both a tax planner and an attorney. You will find DIY document templates and cheap services online, but they are, by design, simple and generic. Ultimately, these documents may not address the realities of your specific situation. If you have been in business for a long time, you should not ignore or forget your business’ choice of entity. As laws change, there might be new advantages or disadvantages to each designation. There will likely be significant changes to tax law over the next few months and years, so the sooner you can revisit your choice of entity, the better. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter. We’ve also included some great resources on our website. Visit http://www.reacpa.com/podcast for articles, past podcast episodes and more.

Looking for some critical tax planning advice that you can put in action now in preparation for next year’s tax return? Chris Axene, a principal in Rea’s Dublin office, is happy to oblige. On this episode of unsuitable on Rea Radio, Chris talks about business tax rates, business entity choices and how one ultimately impacts the other. On this episode of our award-winning podcast, you will learn why the choice of entity chosen for your business is important from a legal and tax perspective as well as insight into which options are available to you. You’ll also learn which service professionals should be in the room when drafting up the paperwork required to claim your entity’s choice of entity. The following are options for business owners: Sole Proprietor – Not technically an entity, this choice allows individuals to operate as a business and protect their personal assets. You might decide to be a sole proprietor if you are a freelancer or sell products online. LLC or Limited Liability Company – LLCs are highly flexible, and can have one or multiple owners. They can even make a tax election to be treated as an S Corp or C Corp. You might decide to be a LLC if you are in manufacturing or an entrepreneur. C Corp – For the past 40 years, C Corps have been considered a bad choice because both the entity and the owners are taxed for every dollar earned. Instead, most companies opt to register as a flow-through entity. If your exit strategy is to go public and get listed on the stock exchange, then you need to be a C Corp (or a flow-through entity). S Corp – An S Corp is a corporation with the Subchapter S designation, which allows the corporation to be treated as a flow-through entity. Remember, a flow-through entity is a legal entity where the income of the entity is treated as the income of investors or owners. The entity still files tax returns, but it is not taxed individually. Both the LLC and the S Corp are flow-through entities. When you are making this important decision and drafting the documents, it’s important to talk to both a tax planner and an attorney. You will find DIY document templates and cheap services online, but they are, by design, simple and generic. Ultimately, these documents may not address the realities of your specific situation. If you have been in business for a long time, you should not ignore or forget your business’ choice of entity. As laws change, there might be new advantages or disadvantages to each designation. There will likely be significant changes to tax law over the next few months and years, so the sooner you can revisit your choice of entity, the better. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter. We’ve also included some great resources on our website. Visit http://www.reacpa.com/podcast for articles, past podcast episodes and more.

Think about all of the administrative functions that have to be managed every day in your business. From payroll to accounts payable to collections… the list goes on and on, and you can’t afford to drop the ball anywhere. Tammy Haney, administrative professionals and controller of Rea & Associates, a multi-office regional CPA firm, joins us on this episode of unsuitable on Rea Radio to discuss your business’s central administrative responsibilities, their impact on the bottom line, and best practices that will help you avoid headaches in the future. “If you don’t know where you’ve been and you don’t know where you’re going, how do you know how the decisions that you make will financially impact the bottom line?” –Tammy Haney It all starts with the budget One of the most important administrative tools any business should have is an accurate and up-to-date budget. A good budget can serve as a decision-making compass. Tammy explains that Rea’s rolling budget is a live document that is regularly updated with revenue and expenditures. To get yours just right, you’ll want to prioritize items that align business objectives, personal objectives, and profit. Want to get paid? Tammy provides listeners some excellent tips to help make your accounts receivable and collections process more effective. For starters, consider creating (and using) a client acceptance policy built upon the principles of your company. The goal is to limit your exposure to risky clients. Sometimes, if the client is over a certain dollar figure, it’s good to look at customer spending habits, paying habits and debt. Also, don’t continue to provide services if you aren’t being paid. For example, at Rea, we contact clients with accounts receivable statements after 30 days and our collections process begins after 60 days. If a client is over a certain amount or hasn’t paid for too long, we will stop working on them. And while we’re talking about bills, don’t forget to pay your bills too. Before engaging with a vendor, become familiar with their terms. If you aren’t happy with something, negotiate or don’t work with them. Don’t settle. Once you have a game plan that works for you, be a good client and pay your bills. You should strive to pay your bills on a regular schedule. Whether you cut a check once a week, twice a week or once a month will depend on the size of your business and the volume of invoices, but get on a solid schedule. Doing so will help you more accurately balance the funds that are coming in to your business as well as those that are going out. If you need a good Controller in your business, train one. Tammy says the AICPA and local associations offer excellent educational resources. Like what you heard? Check out recent posts about this topic to learn more. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter. We’ve also included some great resources on our website. Visit www.reacpa.com/podcast for articles, past podcast episodes and more.

Think about all of the administrative functions that have to be managed every day in your business. From payroll to accounts payable to collections… the list goes on and on, and you can’t afford to drop the ball anywhere. Tammy Haney, administrative professionals and controller of Rea & Associates, a multi-office regional CPA firm, joins us on this episode of unsuitable on Rea Radio to discuss your business’s central administrative responsibilities, their impact on the bottom line, and best practices that will help you avoid headaches in the future. “If you don’t know where you’ve been and you don’t know where you’re going, how do you know how the decisions that you make will financially impact the bottom line?” –Tammy Haney It all starts with the budget One of the most important administrative tools any business should have is an accurate and up-to-date budget. A good budget can serve as a decision-making compass. Tammy explains that Rea’s rolling budget is a live document that is regularly updated with revenue and expenditures. To get yours just right, you’ll want to prioritize items that align business objectives, personal objectives, and profit. Want to get paid? Tammy provides listeners some excellent tips to help make your accounts receivable and collections process more effective. For starters, consider creating (and using) a client acceptance policy built upon the principles of your company. The goal is to limit your exposure to risky clients. Sometimes, if the client is over a certain dollar figure, it’s good to look at customer spending habits, paying habits and debt. Also, don’t continue to provide services if you aren’t being paid. For example, at Rea, we contact clients with accounts receivable statements after 30 days and our collections process begins after 60 days. If a client is over a certain amount or hasn’t paid for too long, we will stop working on them. And while we’re talking about bills, don’t forget to pay your bills too. Before engaging with a vendor, become familiar with their terms. If you aren’t happy with something, negotiate or don’t work with them. Don’t settle. Once you have a game plan that works for you, be a good client and pay your bills. You should strive to pay your bills on a regular schedule. Whether you cut a check once a week, twice a week or once a month will depend on the size of your business and the volume of invoices, but get on a solid schedule. Doing so will help you more accurately balance the funds that are coming in to your business as well as those that are going out. If you need a good Controller in your business, train one. Tammy says the AICPA and local associations offer excellent educational resources. Like what you heard? Check out recent posts about this topic to learn more. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter. We’ve also included some great resources on our website. Visit www.reacpa.com/podcast for articles, past podcast episodes and more.