R. Shawn McBride Live

Posts for for November, 2016

McBride’s Interview about Business Planning

Posted on: November 30th, 2016 by R. Shawn McBride No Comments

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Shawn McBride interviewed with Holly Signorelli, CPA (also known as The Money Therapist — www.moneytherapist.com) about Business Planning for 2017 and other issues on November 16, 2016.

You can find the full interview here: https://www.facebook.com/hollysignorelli/videos/10210507436143105/

 

Holly:  I am Holly Signorelli, CPA and The Money Therapist. I work with businesses from start- up to multimillionaires, save taxes, build wealth, and make more time by working smarter, not harder. I have Shawn McBride back again. If you missed it last week, just scroll on down in my news feed and you’ll see what we were talking about, setting up LLCs. This week we’re going to be talking about going into 2017 and a few things that you need to know about … Did I say 17 or 16?

R. Shawn McBride: Going into 17. You got it.

Holly:  2017 planning and in 2016 last minute deductions. Shawn, for those that don’t know you or haven’t seen you, tell us more about yourself.

R. Shawn McBride: Sure. I am a business lawyer by training. That’s how I began my career, my life. As things evolved I started doing more and more business strategy. I work with business owners on really putting together plans that work to build their business, get them where they’re going, and to make sure they’re protected and protecting that wealth for themselves and families for now and into the future.

Holly:  Excellent. All right. Let’s get started. I was going to start with some last minute tax deductions, just a few of them, unless anybody has any questions. The IRS had changed it to it’s like permanently for section 179 that you can buy up to 500,000 in equipment or furniture. A lot of people don’t know that. One thing though is make sure that you’re actually buying stuff that you need, because sometimes I see people, they don’t want to pay tax, so they buy stuff that they don’t need. That doesn’t really help you. It’s better to pay a little bit of tax and then keep what’s left over than to buy something that’s meaningless. If you do need to get some equipment, the tax rates are really high this year. They’re probably going to go down next year. We’ll see what happens. You might want to go out and get equipment, or furniture, stuff like that, that’s really going to help your business.

R. Shawn McBride: Absolutely.

Holly:  Yeah. Do you have anything to add to that tax-wise? I know you’re a CPA, but really mostly an attorney.

R. Shawn McBride: Mostly stay here on a legal and planning side, but that’s right. Tax is a part of the calculation. If you’re calculating what something truly costs you, for a lot of stuff you can do an after-tax cost. You might get the government to foot part of the bill, but there’s still a cost. Even if you’re at a 30% tax rate, maybe higher if you have some state tax involved, you still got to put out the 65/70% of the money that you’re buying, the asset. It’s not free because you’re getting a tax deduction. It’s just cheaper. For doing your planning, you want to do a net after tax cost. This cost me 65% or 70% of the full cost, because I’m going to enjoy that tax benefit. If you can’t get enough revenue or business benefit off of the expenditure, then it doesn’t make sense to buy it, just to get the tax deduction. You really need to look at the whole picture.

Holly:  Right. That’s why I like to do the tax deductible retirement plans. I’ll be talking about that probably next week with Fran Cushner again, my financial planning partner, because a lot of times or most of the time when you’re doing any kind of tax deduction for retirement it’s going to you. I mean it’s going into your savings account. Sometimes people resist that, because you can’t get the money out until you’re 59 and a half, but if you balance it right between having money that is available for you now and money available for you later, then you’re going to be better off, and you’re going to save significant taxes that way.

R. Shawn McBride: Right. There’s reasons why the government’s incentivizing people to do it. Part of it is that long term issue. They want you to put that money away, so they’re paying you in a sense to save for awhile and to ultimately invest that money in the economy in other endeavors. There’s a reason why you’re getting that deduction, but it can make a ton of sense. It’s a great way to get that deduction, but then you actually get to keep that money. You may have to wait awhile, but it’s still your money versus buying an asset you might not need to get a deduction. It’s much smarter to squirrel that money away for some time.

Holly:  Yeah. It is true. I see different statistics, but something like 70 to almost 80% of people nowadays only have about $1,000 in savings. If you think about that, so many people nowadays do not start saving until their 40’s. It’s crazy.

R. Shawn McBride: It’s a crazy world we’re in. People don’t think about it soon enough, but if you look at the compounding charts it certainly makes sense to save sooner than later and to build that wealth over time. If you’re going to have the government help you start doing that process, take advantage of it.

Holly:  Yeah. Yeah. It’s never too late. I did a little video, just a real short one, a week ago. A lot of people when they’re getting divorced and stuff they’re starting over, and the feel like, “Oh, man. I’m 40,” or whatever, “It’s too late,” but it’s not, because a lot of people don’t start until then. If you’re in your 30’s or even late 20’s and you can start saving even little bits, then you should. Let’s move on with a subject that you wanted to talk about today, which is getting ready for 2017 and planning better. Tell us more about that.

R. Shawn McBride: Well, a lot of people want to hit the ground running for a new year. We hear a lot of New Year’s Resolutions, “I’m going to do this next year. I’m going to do that next year.” If you’re doing something on the business front, the time to do the planning’s probably now rather than January. If you wait until January to start your planning, you’ve already lost several months of the year. I want to start getting people thinking about what is my 2017 plan? How am I going to get to where I want to get to? Close out 2016 strong. Take advantage of the things you’ve done in the past. Capitalize on those. Now is the time to start saying, “What am I going to do in ’17, and what do I need to do now to start getting things in order to have a strong ’17?”

Holly:  Yeah. Exactly. I’m always telling my clients that too. We talked about this a little bit last week too, that when you want to set up your LLC now for 2017, because you’ve got to get it set up. You got to get your new bank account. There’s a lot of little things that people don’t think about. If you’re going to be a corporation, you’ve got to get set up on some kind of a payroll system. If you do it in January, like you said, and everybody’s doing it then, then you might lose as much of a month. Then it complicates the taxes and things too.

R. Shawn McBride: Right. There’s usually a rush at the beginning of the year. People do those New Year’s Resolutions. People pick that arbitrary date of December 31st, January 1st and say, “We’re going to hit the button January 1st and do this.” The problem is you’re not the only one hitting the button on January 1st. If you can get ahead of it, you can start capitalizing. You’re going to lose up possibly up to, like you say, a month of business. If you don’t put things in order today, you may not be jumping in full force in a month. You really want to get things pointed the right direction and make sure that when you come out of the box January 1st, if that’s your magic date, have all your ducks in a row so you can really start doing real business on January 1st.

Holly:  What else would you recommend, besides setting up an LLC, if they even need to set one up, and the things that go along with an LLC? What other things should people be looking at? A lot of people right now they’re thinking about the holidays. Sometimes I find that because of the holidays and all the family is when people start wanting to do things like wills, and trusts, and other types of things. What do you recommend?

R. Shawn McBride: Sure. It’s a great time to have a holistic view of your planning, “Where am I at? Where am I going to? How’s that all going to play together?” You really got to look at your business and your business plan. Now’s the time to lay the infrastructure, LLC, accounting system, which I know you can help people with, making sure you’re getting things tabulated the right way and you’re setting the foundation for understanding your business, and paying your taxes, and doing all those things you have to do. Now’s the time to start doing that. What’s your marketing system? How are you going to handle email, and web pages. There’s a lot of pieces to a business.

It seems overwhelming to a lot of people getting involved and just jumping in, but reach out to somebody, get somebody that’s done the process before, worked with people on the business planning, and map out for your particular business and your particular industry what pieces need to come together? What order do they come together in? What do I need to start doing now so that come January 1st I can hit the ground running, and I’m possibly earning some revenue in January, rather than waiting until February or March to get that business actually off the ground?

Holly:  Yeah. Then you just reminded me with that too is a lot of people are afraid to get a program. Of course, I’m a big fan of QuickBooks. I think QuickBooks is cutting edge. They get better and better every year. They pretty much own the accounting industry. There’s also FreshBooks and Xero. There’s all kinds of … everything is online now too. You don’t have to be an accountant or a CPA to use these programs. They’re actually meant to be like a check register. If you’re invoicing, then you’re invoicing somewhere using some kind of system.

Too, if you have something like QuickBooks, or FreshBooks, or Xero, you can invoice in there, you can put all of your deposits in there, and then you can download everything from your bank account right into there. A lot of people want to take control of their own bookkeeping now, sometimes just to save money or just to have control over and actually see where their money’s going. I definitely recommend that or at least have a bookkeeper do it every quarter, because sometimes people come at the end of the year and they have no idea how much money they’ve made. They haven’t paid enough taxes in.

If you haven’t been using some kind of system like that, they’re very, very affordable nowadays, anywhere from 99 to 299. You don’t have to upgrade it every year. You can and you should at least every two years, but it’s just very inexpensive, and it just, again, saves you money. Even if somebody else is doing the book work for you, at least you have a more clear idea of where your money is going, because so many people do think that they made less money than they did, because they’re not looking at the numbers.

It’s a real simple report that QuickBooks or any other program spits out. Anybody out there, if you’re not using that or getting a bookkeeper and your company’s big enough to where it needs one, then think about getting that lined up now for January. Same thing, because you’re not going to have to give somebody some log ins, and you’re going to have to get the program, instead of doing that in January and making January stressful.

R. Shawn McBride: Yeah. You’ve got a little bit behind the scenes stuff of figuring out what your accounts are, how to set your accounts up. There’s a little bit in the set-up of those programs. They’re very simple, as you say, to work with. I’ve worked with QuickBooks for some time. It’s easy to work with. It’s not that hard, especially once you’re set up. You may want to spend a little bit of time getting set up properly. That’s the types of things we’re talking about planning for next year. If you’re going to hit the ground running on January 1st and you’re ready to move forward, you don’t want to be logging into QuickBooks for the first time, putting the CD in your computer, uploading it, and then setting up your accounts and typing your account names in.

Start getting some of this stuff in order, particularly if you’re working for somebody else. I mean, if you’re working for somebody else and you know you’re going to stop drawing that paycheck January 1st, do the stuff in your evenings and your weekends when you’re off company time, so that you’re ready to hit the ground running, rather than having your pay stop and you spend the first two to three weeks of your business just laying the foundation.

Holly:  Yeah. The other benefit of having everything into any kind of program, whichever one anybody chooses to use, is I know QuickBooks does this, because again, that’s what I’ve always used. I haven’t used all the other programs, but I’m typically in it, editing it, because my clients, they’ll use their own bookkeeping, and then they’ll let me just clean it up each quarter or at the end of the year. I know in QuickBooks you can do this, and probably in the other ones too. You can do a budget or a forecast for 2017. It’ll show you what the average that you’ve been spending or bringing in every month, and then you can look at that for 2017 and make your goals.

What I do with the budget is it’s really more like a goal budget. If I want to make a certain amount of money, that’s what I put in to that projection. It is so easy, because all the numbers flow into it, and then you just override it, because you’re like, “Okay. I’m going to get rid of this expense,” so you get rid of it or you change it or, “I’d like to have a more expensive car,” so you increase it. Then each quarter then you can look at it and see where you are in conjunction with your goals.

R. Shawn McBride: Right. A lot of practical stuff there. The more you can track and the more you can build these systems in place you’re going to need this data later, particularly as your business grows. It’s so much easier and simple to do it right from the beginning, rather than have to go back and reinvent it. If you’re going to be a QuickBooks user, if that’s what you decided to do, Holly recommends it. I think it it’s great. If that’s your financial platform, from the beginning. Don’t start with a spreadsheet and then try to switch to QuickBooks, because then you’ll do a lot of work to reinvent it. You’re not going to have that historical data.

The more you can get good advice at the beginning, spend a little bit of money, get everything set up right, you’re going to save a lot of money down the road and a lot of headaches. Once your business starts doing what it’s supposed to do and you’ve got the customers at the door you want to be servicing them and bringing that revenue in, not playing with QuickBooks files and things like that. All about planning, and preparing, and building your map to the future.

Holly:  Also, for any biz owner, I don’t care if it’s small, start up, or millionaires, you got to do your contracts with your contractors, your employers, your non-compete, non-solicitation. Non-compete is obvious. You don’t want an employee to be workings for you, even if you only have two employees, you don’t want them taking your business or trying to market to your clients. Non-solicitation is, and correct me if I’m wrong, Shawn, is when you have an employee that goes to work for someone else, and then they have their new owner solicit your clients. Right?

R. Shawn McBride: Yeah, or they go after their own customer list. Sometimes the employee tries to take the customers, because they use that as an incentive to their new employer. They’re like, “Oh. Guess what? I’ll switch from where I currently work. I’ll switch to you. All these customers love me, so they’ll come over with me.” Sometimes non-solicit hits employees too. You’ve got employee A. Employee A talks and they’re going to go work for company B. They show up at company B and they say, “Oh. I work with all these other people over there. They’re great. Let’s go hire them too.” Now you got your whole shop being raided.

There’s things you can do to protect that kind of stuff from a lot of different angles. That’s something you want to be proactive about. Make an employment environment that people want to work at. Then start building some of these legal things as well of how do you make sure that if somebody does leave, how do they manage the possible damage to your business? What if something happens to the business owner? A lot of people, particularly people who might be listening today, you’re the business owner, you’re running the business. What happens if something happens to you? How does that business keep moving?

We work on building systems in place to make the business bigger than just the owner so that  wealth’s created. A lot of times when I talk to business owners, business owner dies, business owner gets in a car accident, a lot of the employees might be circulating their resumes and checking out before they wait to see whether their next pay check gets delivered. That’s not what you want. If you want to be able to pass that business onto your family of your heirs, you want to make sure that business is going to keep running and keep adding that value, and not have all the employees disappear.

Holly:  Right. Exactly. That’s really, really important stuff. I actually a few years ago, it was quite a few years ago, had somebody that I had hired offer to give me the names of the people that she was working with at the other firm. I actually fired her, because I was like, “Well, if she’s going to do that for them, then what is she going to do to me?” I have the contracts. I’m really, really good at that stuff, but you never know when somebody’s going to try to get sneaky about it. You know?

R. Shawn McBride: You learn people’s personalities over time. I believe most people in the world are good, but unfortunately being a lawyer for so long and working on the business strategy side I’ve had people show up to me with horror stories. There are people out there that just – they do bad things, or they take advantage of opportunities that they probably ethically shouldn’t. Maybe they’re going to take your customer list to somebody else and show it to somebody else. Maybe they’re going to go after your customers. They’re going to try to take money from your business, going back to the control point we were talking about earlier. You want to have safeguards in place too. You want to make sure that whatever you’re doing you’re protecting it for yourself.

Holly:  Absolutely. We’re about to run out of time, so let’s just recap it from the last week and today. If you’re going to set up an LLC, if it’s time, you need to do it now. Get your new bank account and get set up on payroll. Shawn and I can both help you. I’m going to have the links on top for you guys to be able to click on it if you need to have a one-on-one with either one of us. Make sure that you have contracts in place with your employees and your contractors, non-competes and non-solicitation.

 

If you are not using a software program, then you need to get with the picture, because they’re so easy nowadays. You don’t have to be a CPA or an accountant to do it. It’s really more like a check register. Then you send it over to the CPA, let them clean it up for your taxes. Then you’ll be really more aware of where your money is going, and you can even start doing projections and forecasts, which again, on these new software programs are very simple. If this sounds complicated, I promise it’s not. Everybody, please have a wonderful holiday and be safe What do you have to say, Shawn?

R. Shawn McBride: Just do it right from the beginning. Now’s your time. Plan. Get yourself in order. Little steps like this, little tiny things, make huge differences later. Do it now. Have a great holiday. We have Thanksgiving coming. Be thankful for those things you have and the opportunities. Look forward to connecting with all of you later.

Holly:  Thank you so much for being on the show again, Shawn McBride, attorney. Again, we’ll have the link up above, and see you guys next time.

 

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity.

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com ), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #mcbrideforbusiness #3lawsofempowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

Contact Holly Signorelli at www.themoneytherapist.com

 

 

 

The 3 Laws of Empowerment: What if it’s just me in my business?

Posted on: November 30th, 2016 by R. Shawn McBride No Comments

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I recently presented The 3 Laws of Empowerment- www.RShawnMcBrideLive.com – to an audience, and I got a very interesting question. “How do I use The 3 Laws of Empowerment if it’s just me in my business? Do they apply? Particularly, how do I protect myself?” It’s a very interesting question. What do you need to do if you have a single owner business? How do you make sure you’re protected? Does this stuff even apply?

I believe The 3 Laws of Empowerment are important to the single owner businesses. You still need to prepare, you still need to plan, and you still need to protect. You still need to understand your business and where you’re going, and how you’re executing your plan. These principles apply across any business. However, what’s different in the single owner business is the protection. You need to stop for a second. Who’s relying on you? Who do you need to protect beyond yourself? There are probably a lot of stakeholders in your business, even if it’s just you. You may have family that relies on you for a certain income. You may have employees or independent contractors that rely on you. You certainly have customers that expect you to perform whatever you agree to perform.

I think The 3 Laws of Empowerment are very applicable to a single owner business. Perhaps, even more so. The single owner business needs to make sure that they’re protecting all the constituencies, which are probably broader than just the economic holders of a multi-owner business.

What are your thoughts? What do you think about single owner businesses? What do you think about protection, if it’s just you that owns the business? Give us your thoughts below. We would enjoy discussing with you in the comments.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity. Freeimages.com/Photographer weird-maex.

About the Author

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com , www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #mcbrideforbusiness  #3lawsofempowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

McBride’s Interview about LLC and Real Estate Investment

Posted on: November 29th, 2016 by R. Shawn McBride No Comments

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Shawn McBride interviewed with Holly Signorelli, CPA (also known as The Money Therapist — www.moneytherapist.com ) about LLCs, Real Estate Investment and other issues on November 16, 2016.

You can find the full interview here: https://www.facebook.com/hollysignorelli/videos/10210455145955883/

Holly:  Hey. Here we are. Hi everybody. This is Ask Holly Live. I’m Holly Signorelli, The Money Therapist, helping business owners save taxes, and then put that money into tax deductible investments for your future. I’m here with Shawn McBride, my very good friend who is an attorney, and a CPA, and has an excellent book called Business Blunders.

R. Shawn McBride: Hey there. I’m excited to be here.

Holly:  Hello again. I’m going to get the volume up a little bit here. Okay, let’s talk about what is your biggest blunder in your book? I love this book, by the way, because it’s so easy to read. Anybody who has a new business or a small business or a growing business, they can just really read through this very easily. You don’t talk over people’s heads like a lot of people do, and that doesn’t help people.

R. Shawn McBride: Right. Exactly. You know, it’s hard to pick just one blunder. People always say, “What’s the top blunder?” They weren’t really ranked when I built the book. It’s ten things I kept seeing too much of.

Holly:  Yeah.

R. Shawn McBride: One thing I think a lot of people are in the dark on, it really shocks audiences when I speak, it’s the fact that just because you form an LLC or a corporation doesn’t mean you have liability protection.

Holly:  Right.

R. Shawn McBride: You can still get your personal assets attacked. You can have a problem, because people will come in and say you didn’t run the company properly. You didn’t keep the right records. You weren’t treating it as a business, accounting issues come in there.

Holly:  Yeah.

R. Shawn McBride: A lot of people are surprised that they think, “Oh, well I just formed my company. I filed with the state. All my assets are protected. I don’t have to worry. I can sleep at night.” It’s not really that simple. That’s an important one for business owners to think about. Build those LLCs and corporations, but build them correctly to really protect your personal assets.

Holly:  Yeah. I work with a lot of people that have multiple LLCs, which I think is important because of lawsuits and things like that. Also, just to keep them separate. Then, they are always pushing money back and forth between other entities. Is that a bad thing to do if it’s set up properly, or should it just be avoided altogether?

R. Shawn McBride: No. It can be done properly, but that is the key. It has to be done properly. You can have separate companies, and the law recognizes the fact that you may have independent businesses and sometimes they’re affiliated or to uphold that. Just because you build a lot of boxes, also, doesn’t mean necessarily you’re going to get that protection. A lot of people think, “Well, if I hold residential real estate,” I see this a lot, “I’ll put one real estate company in one LLC. I’ll put another real estate company in another LLC. Another piece of real estate in a third LLC.” Don’t worry about is it necessarily going to say those are three separate businesses, therefore, if something happens at LLC on property one, property three is safe. It’s not that simple. It takes a lot more planning and work to really make that kind of strategy work. You need to be thinking about how do you do it properly, and how do I keep the right records, and how do I build something that the court would recognize if that worst case scenario would happen, which is what you’re really trying to plan for.

Holly:  Yeah. I see that a lot as well, because a lot of entrepreneurs like to have some kind of real estate. A lot of them don’t actually set up an LLC, and they should. Typically, I find it with a partnership, too, because maybe the entrepreneur wants to have the real estate, but they want to bring in a partner either to finance it, or maybe they’re financing it and somebody else is working in it. What I kind of see is a trend, is people don’t want to put more than ten properties in an LLC. What do you think about that? Should there be one for each one, or is there a reason just to have ten in there?

R. Shawn McBride: Well, I think you need to figure out what the businesses are. Where you’re going to draw the lines and the contours between them. Some people will put each one in a separate LLC. You can do that, but you may not be getting liability protection. Now, you’re paying state fees, you have additional filings, expenses, and you’re not getting the desired result.

Holly:  Yeah.

R. Shawn McBride: It really comes to, how are the assets accumulated? How valuable are the assets? Is it ten inexpensive properties, or is it ten high end hotels? Are they being run separately? There’s a lot of argument if I have a portfolio of hotels, each hotel may really be a separate business. Then, it may make sense to treat each hotel as a separate corporation or LLC.

Holly:  Yeah. If it’s given that as potential liabilities?

R. Shawn McBride: You know, potential liabilities. It’s got its own customer base. Each hotel is going to have a unique location. It’s going to have different benefits, things. It’s probably going to have its own management team. There are a lot of people involved. It’s being run as a business.

Now, if I have a bunch of rental houses, and I put each one in a separate LLC, now I’ve got a three hundred dollar filing fee for each if we’re filing in Texas. Plus, the additional paperwork. A court is probably going to come in at some point, and say “If somebody got hurt on one of the rental properties,” they’re going to say, “How’s this rental property different from that rental property? Were these really different instances?” Probably run by the same management team. Probably the same review of the credit. Probably the same process for renting. They’re probably going to say, “These are all one business. We’re going to bring them back together anyway.” You really need to look at what could happen. Let’s say, “How do we defend these as being separate businesses?”

Holly:  Right. Yeah.

R. Shawn McBride: Are we including county records? Do we have separate financials? Are we blending these businesses together? You really have to look at how it operates, which is where you need to get some other people involved to say, “How does this look from an outside perspective, and is it being done correctly?

Holly:  What about the entrepreneur, and I’ve done a ton of these, where they buy their own building and occupy it, you know? Couldn’t they have a separate LLC for their real estate, because sometimes they’re also renting some rooms, but they’re also occupying it?

R. Shawn McBride: Yeah. Well, definitely, if you’re renting rooms to somebody else, then now you’re starting to say, “Okay. We’ve got third party liabilities. What if somebody gets injured in that other tenant’s space? Do I want to separate that from my business?” If we don’t separate that into a separate company, you’ve got your main business over here, you’ve got the separate business over there, and from a liability perspective you’ve now merged them together. If somebody gets injured on that rental property, your accounting business, or consulting business, or paper supply business, whatever business you’re in, now those assets are being attacked.

Holly:  Yeah.

R. Shawn McBride: Here’s where you have a place where you have two differential businesses, different types of operation. You probably, definitely, want to split them into different entities.

Holly:  Yeah.

R. Shawn McBride: I, also, know the huge planning opportunity by separating the operations from the real estate holding. A lot of times as people mature or the business matures, it gives you a planning opportunity, because you can treat the real estate portfolio, buy or sell that. Do a 10-31 exchange – exchange it for a different property, separate from what you’re doing with the business. You may sell this business, but keep the piece of real estate or vice versa. Keep or exchange the real estate and not sell the business. You’ve got a lot of planning opportunities here that you’re missing.

Holly:  Yes. For everybody out there, the 10-31 exchange is an opportunity, when you go through a third party, and you sell something the money goes into kind of an escrow account, right? Is it called an escrow account, or just somebody else is handling the money? Then, you buy a new property, so it has to be alike, like real estate to real estate something like that. A lot of people that do real estate investing, they don’t know this. They’ll sell a property, and they’ll make a lot money. Then, they’ll put all the money into the next real estate. Then, they owe a ton of taxes that they had no idea, because they’re like “Well, I reinvested it.” Guess what? You still have to pay taxes. I’ve seen people get really burned by not knowing that rule. You don’t have to know everything out there, you guys, about 10-31s. Just know that if you’re selling a property, and you’re going to reinvest it into another property, then you need to talk to your CPA or attorney about the 10-31 exchange.

R. Shawn McBride: Yes. It was originally designed for property A, property B and the owners would actually do a physical exchange. The IRS has been a little bit generous in this case. They actually will allow some timing differentials and uses of escrow and other things. They can be planned. The important thing is, yes, if you have a long term holding strategy on real estate, you may want to mix in there this idea of at some point I’ll exchange it for another piece of real estate. That’s something, planning wise, you want to think about. That’s another great reason, back to the original question, of why we separate these entities out. If we separate them, we’ve opened this planning door where we can go one direction or the other.

Holly:  Another strategic thing, too, is a lot of people with real estate don’t realize that there’s an active or a passive participation. For everybody out there, if you’re active, you are literally actively involved. You don’t have a management team. You’re taking care of any problems with the real estate. If you’re passive, you’ve just put money into, like sometimes people put money into an LLC, but somebody else is taking care of it, and you’re just getting a dividend. What a lot of people don’t realize is if you have some passive losses on your tax return, which a lot of people do, you can’t take those losses, because you’re not actively involved. If you have passive income, that passive income can go against those passive losses. It’s kind of like free money. If you’re one of those people out there that has passive losses on your tax returns and that you’re not being able to take.

Even if you don’t know enough about this tax wise, we don’t have to get into the tax rules, you probably know, because you’ve done your tax return and you can see that there’s some losses that you couldn’t take. Then, what you would want to do is invest into passive real estate through someone else, so that you can at least get some free money here, because you’ve gotten those losses already.

R. Shawn McBride: Exactly. It is a part of the portfolio planning of how do you play all these financial pieces together. That’s why you need to get the team involved early in the process. The more you think about these things at the beginning when you’re starting to invest in the real estate, starting to set your company up structuring this. If you’re looking to the fact, “I may have passive income. I may have passive losses. How do I pull these together?” If you’re fortunate enough to have passive income, then an investment in real estate that has passive losses may be more palatable to you than somebody else, because you can actually use them for a tax benefit by offsetting the income. You can play based on your particular strategy.

Holly:  Yeah. For everybody out there, too, just remember we’re trying to give you the broad scope of everything. Don’t worry about memorizing everything. It’s just understanding. Tracy, I see that you said that you wish you had thought of the 10-31 or knew about it six months ago. That’s okay. You’re not alone. I can’t tell you how many people don’t know about it. Now that you do, you’ll know to reach out next time when you’re swapping a property.

R. Shawn McBride: Exactly. You can use it as a more powerful tool next time you’re involved in a potential transaction, or you’re looking to your future. It’s a great planning tool to have in your portfolio.

Holly:  Yeah. Let’s talk about on the LLC. A lot of people set up an LLC, and they don’t realize that they have to actually decide what kind of LLC to be. For everybody out there, when you have set up an LLC, if you don’t decide what kind of LLC to be, then you’re going to basically be taxed just like a sole proprietor. You’re going to have to pay not just federal tax, but social security tax. 15.3% on top of your federal rate for being a single member LLC, which means that you did not incorporate into a C-Corp, an S-Corp, or a partnership. I know a lot of people, they’ve heard of S-Corps, because they’re always saying, “Should I be an S-Corp?” They don’t know what it is, but they’ve heard about it. S-Corps are for small business where you’re actively involved most of the time. It might be a typical small business that you’re making … What is it? What is the income amount now? Is it ten million or less, or is it more than that?

R. Shawn McBride: I can’t remember the numbers off my top of the head, but you move up the tax brackets pretty darn quickly these days.

Holly:  Yeah. Exactly. If you are setting up an LLC, just remember that there are several different types of LLCs to choose between. It really depends, like with real estate a lot of times it’s best to be a partnership. It’s always good to talk to somebody first, because a lot of times people come to me at the end of the year, and they didn’t set it up right. Then, they have to pay a lot of taxes, like ten thousand dollars more in taxes than they need to.

R. Shawn McBride: Right.

Holly:  Just remember that if you have a new business out there, you may not be ready to be on retainer yet. Pay for that hour and find out … The paying for the hour will save you tens of thousands of dollars or even just thousands of dollars.

R. Shawn McBride: Yeah. That’s right. I tell people a lot of times my highest value added per hour is those initial hours. First hour or two hours, you can find some real problems. Really influence the entire structure of how a deal’s going to go, or how somebody is going to run their business. The first one or two hours can be extremely valuable in setting the right path for the future.

Holly:  Yeah. What’s your next blunder? I know you said you didn’t do it in order, and I get the same thing with my book, because it’s nine emotions that cause people to do very bad things with their money. Everybody always asks for my top three. What is one of your favorite ones to talk about?

R. Shawn McBride: You know, I think, one big one is record keeping. A lot of people … It’s a boring subject. Who wants to keep records? Who wants to worry about what’s going on in the business? Guess what? Most of us have an exit plan at some point. At some point, we’re exiting our business. Usually, we’re going to sell the business. For those people that buy and hold until they die, your family is going to have to come in and run that business. In either case, you’re selling to a third party or letting it go through your entire lifetime through your family. Somebody’s got to step in and run that business. In the acquisition situation, they’re going to do what they call due diligence, which is essentially an exercise where they come through and they look at everything. If you don’t keep great records, you’re going to hurt your price. You’re getting less money. It’s going to cost you dollars out of your pocket. Of course, if you want to keep it until you die and it transitions to your family, if you don’t have records in good order, they’re probably going to have some operational issues stepping into business.

Holly:  Yeah. I see a lot of that. With life insurance, too, with businesses where the spouse didn’t get the money that was meant to be for her, so that they could buy the spouse out of the business whether it’s the husband or the wife. It ends up going to the business, and that wasn’t even the original intention.

R. Shawn McBride: Right.

Holly:  Now, a lot of times with any kind of partnership or any business that you’re in with different partners, a lot of times people don’t take the time to actually really talk about it. We send stuff to attorneys, and we can’t even read, I can’t really read those contracts. Sometimes we just have to talk one on one with the people in addition to the contracts to make sure everybody’s on the same page.

R. Shawn McBride: Right. Partners are rarely going to leave at the same time. A lot of people go into partnership together saying, “Great. We have a great collaboration. We’re going to make a lot of money together.” They go out, and if it’s successful, they do start making money together. They have different lives, different needs in their families, different personal situations. Very rarely are both partners going to come in and leave at the same time, so we’ve got to build plans that allow them to leave at different times and keep the business in good condition and maximize that value.

A big thing I’ve been working on with a lot of families with recently, kind of just tangentially off what we’re talking before is, what happens to the value of the business in the event that the key manager or the owner dies, gets disable, they have a car accident? What happens to that business? Really a lot of times people don’t know. Maybe you’re star salesperson is suddenly out looking for a new job. Somebody is out taking all your customers, because you didn’t have a comprehensive plan in place. You can do some planning on the front end to make your business stronger in the event something happens to somebody on the management team. Have a plan in place. Let your employees know everything is going to be okay, so that value doesn’t immediately erode. You have value to give to the family.

Holly:  Yeah. You know, the company that I had before, I had all of that in place. I mean, I do this for a living, but I can understand why a lot of people don’t even think about it. They even do their wills, but they don’t include their business. Even in my business, I had included that my key employees that if something happened to me untimely would get a percentage of the sale. It was going to be a small percentage, but they would be motivated to stay on, so that the company could be sold properly. I think those are things people just don’t think about, but if that’s your life’s work and something happens to you, you would want your beneficiaries to get that gain.

R. Shawn McBride: These are minor tweaks that you can make in your things. A small percentage to an employee. Just having a plan in place to have others to take over the business if something happens to you. It may be the difference between all of your employees fleeing, and them saying, “We love the company. We like working here. We’re going to stay here.” That can be the difference in the value. I mean, that can be a difference between here and here. Unfortunately, in a worst case scenario, you can have a company completely evaporate. You lose your star salesperson. You lose your operations person. Then, you get in such disarray that the company falls apart, because of an unfortunately accident to the owner. Then, there’s nothing left for the family, and that’s what we want to avoid. We want to protect this for everybody.

Holly:  Yeah. Everybody out there, you need to have backup plans. Sometimes people are afraid to have a backup plan, but it actually makes you feel better when you do have wills and estates, an exit plan if you and your partner break up. I see this all the time. Every year people come in, and they love each other, they’re best friends, they’re going to start this company. By the end of the year, they can’t even come to the office at the same time, because they hate each other guts. It’s all about having an exit plan, because when you have an exit plan you’re not creating an event. It’s just that it’s so common that at least you’ll know if something happens that everybody’s going to be okay, because you have the plan. When people do that, and they do end up going their separate ways, they might not be talking, but at least everybody gets what they’re supposed to get.

R. Shawn McBride: You know, here’s a funny thing. I always tell people to protect the wealth. That’s always the goal, right? Make sure that money in the business stays in the business.

Holly:  Right.

R. Shawn McBride: Here’s another thing, just by having a mechanism to end a dispute, whether it’s a buy/sell where one buys out the other, sell it to a third party at an auction, a lot of different ways you can do a buy out or a rearrangement of the owners to end a disagreement. Just by having that mechanism, I’ve found companies are much more likely to work to a resolution. They don’t go all the way there, but they don’t end up in the courthouse fighting each other for years completely destroying the value of the business. They keep the business moving forward. Even though you may never use it, if you need it, you want to have a mechanism there. You can renegotiate something different. If you’re still talking at that point, and you have a little bit of a disagreement, you find out you have a different life plan, you can do something different than what’s written in your document. You’re not stuck with it, but having something there that keeps you out of the courthouse keeps everything moving forward. It can make a tremendous difference in how this outcome plays out.

Holly:  Quick recap today. If you have a company, even if it’s just a little bit profitable like even if it’s fifteen thousand or thirty thousand, I know that it will still benefit you to have an LLC. Make sure you set up the kind of LLC that you want. I do have a very inexpensive course on my website at www.TheMoneyTherapist.com . It’s one hundred and fifty dollars, and it’s seven modules on how to build and sell a business. You can also have a consultation with me or Shawn. Where might they find you Shawn?

R. Shawn McBride: The best way to find me is www.McBrideForBusiness.com . That is my strategy firm, and we work with a lot of clients on setting up plans and strategy. I also have a law firm that’s separate from the strategy firm. I do some speaking. If you go to www.McBrideForBusiness.com , get in touch with me. We have some, also, helpful tools there. If you go to www.McBrideForBusiness.com/thankyou , you can get an evaluate your business checklist where you can see where your weak spots are and what to do better.

Holly:  Excellent. Amy says that, “Shawn rocks.”

R. Shawn McBride: I always appreciate people who are fans. I hope we’re helping someone …

Holly:  All right everybody. Thank you for joining us today, Shawn McBride, attorney and CPA. I’m Holly Signorelli, The Money Therapist. We’ll be back on Friday. Bye.

R. Shawn McBride: Bye.

 

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. FreeImages.com Photographer Donna Mac.

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com ), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com , www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #mcbrideforbusiness #3lawsofempowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

Contact Holly Signorelli at www.themoneytherapist.com

 

 

 

 

A New Perspective in Business: Burn Your Bridges

Posted on: November 29th, 2016 by R. Shawn McBride No Comments

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Some of you may be familiar with motivational speaker Tony Robbins. http://www.tonyrobbins.com

When Tony speaks, he often talks about burning your bridges. Basically, building a situation where you can’t turn around, and go back to where you were before, forcing you forward on a path to success. While Tony Robbins uses some very colorful language in his speeches when he talks about this concept, the concept is very powerful. Are you only moving forward, or are you constantly spending time and energy looking backwards and making sure that you have an escape path?

As I’ve worked with clients for about a decade and a half, I see one constant theme which determines some that are successful and some that aren’t. One of those themes is whether the person burned their bridges. Did they constantly work on having an exit plan? Did they keep all of their cards at their vest, or did they play the hand? Did they work for what they want? Those who believed, those who moved forward, and those who took the risks often were more successful than those that tried to only dip a toe in the water. It’s very hard to run a business, and it’s even harder to run a business when you’re not fully engaged. The “burn your bridge” theory really gives you the motivation and the foresight to know whether you’re spending your energy building what you really want, going where you really want to go, or if you’re spending your time and energy working backwards and trying to maintain and support a structure that’s no longer applicable to what you want.

Are you burning your bridges? Are you fully invested in your business? Are you moving forward? We’d love your thoughts and comments below.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity. Freeimages.com/ photographer skyro.

About the Author

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiess.com , www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #mcbrideforbusiness  #3lawsofempowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

 

No One is Superman in the Business World

Posted on: November 28th, 2016 by R. Shawn McBride No Comments

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You’re a business leader. That means you’re supposed to be Superman, right? You’re supposed to be able to do everything, and not have to rely on anyone else. Guess what? You don’t have to be Superman. In my personal journey, one of the things I’ve struggled with is the fact that I do need help. I can’t do everything alone. It’s hard. I was raised in a family that encouraged self-sufficiency. We always did a lot of things at home that other people wouldn’t do. We worked on our own cars, we did a lot of repairs and maintenance to our home. We were a very self-sufficient family. I brought this lesson into business, and I try to be self-sufficient. Learn a little bit here, learn a little bit there. Get the taxes done, get the filings done. Get the administrative stuff done, and somehow practice law and build a speaking business later.

Guess what? It didn’t lead to specialization. We talked earlier in a blog about focus and specialization. http://www.mcbrideforbusiness.com/blog/joint-ventures-r…xpected-benefits/  I was not focused. I was not specialized. The market needed some of my services, and it was a very, very highly value service added they would pay highly for, but they would only pay for my core services. They didn’t want to pay for the ancillary, the administrative, anything that didn’t add as much value to the marketplace. That made things difficult. I was doing low value tasks. They were tying me up from the high value tasks. Of course, you’ll hear a lot of people say, “Get rid of those tasks because then you’ll get the high value.” The problem is you have to have faith. You have to know the marketplace will react, and there will be more opportunities.

A lot of times I see owners in the trap of doing a lot administrative chores.  And because they don’t have free time they don’t have time to go out and talk to people. They can’t market their business, so they keep doing the administrative tasks, and they end up in a trap. They spend all their time administering their business, servicing the occasional client. They can’t expand because they’ve got their time allocated to the wrong thing. You need to focus. You need to specialize. We’ve talked about it in other contexts, but that means you need to be vulnerable, and you need to admit that you can benefit from help, and that some people can take some things off of your plate so that you can do the things you need to do.

Have you struggled with delegation? Have you struggled with letting go of tasks? Let us know in the comments below. We’d love to hear from you and what your experience has been.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity. FreeImages.com/Kaliyoda.

About the Author

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com , www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #mcbrideforbusiness  #3lawsofempowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

 

The Holistic Side of Being an Entrepreneur

Posted on: November 28th, 2016 by R. Shawn McBride No Comments

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 There’s a whole side to being an entrepreneur which is unexplored or undeveloped in a lot of the literature you see today. From working with a variety of entrepreneurs over many years, it’s very important that the entrepreneur be in touch with himself. You will see some articles and literature suggesting that people should follow their passion, or do what they love. I think that’s good advice to start with, but it doesn’t go far enough. The entrepreneur needs to truly be in touch with who they are, or what their creative genius is. Just doing what they like or enjoy is not enough. It really needs to be a part of them. That’s where you’re going to see the greatness.

We’ve talked in prior blogs about specialization and focus. http://www.mcbrideforbusiness.com/blog/revving-up-your-business-by-building-your-team/  To achieve true greatness, to really separate themselves from others, to build something so economically powerful that it allows an organization and a lifestyle to be built around it, the entrepreneur needs to truly be in touch with their being, with an inner purpose, with a feeling. They need to be recharged about what they’re doing, and they need to feel connected with it. It’s in this expression and this genius where the entrepreneur is going to really differentiate themselves. They’re really going to do something different.

Think about Steve Jobs and Apple, and how connected he felt with the product, and how inspired he was by his own creation. Few can argue with the financial success of Apple, and its unparalleled growth during the period when Steve Jobs rejoined the company. This is what we’re talking about. This is the field that we need to grow companies. It comes from having the owner or entrepreneur super connected with themselves, their passion, and their drive, and expressing it through the business.

What’s been your experience with seeing yourself or others being connected with their business? Have you had periods of time when you’ve been truly connected with your business? What have the results been? Let us know in the comments below. Let’s discuss.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer C.We.

About the Author

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. He is a frequent speaker at events. His signature keynote, The 3 Laws of Empowerment, (www.rshawnmcbridelive.com), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com , www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #mcbrideforbusiness  #3lawsofempowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

Changing With The Speed of Business

Posted on: November 26th, 2016 by R. Shawn McBride No Comments

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Business changes. Things evolve. Are you building your business to change with the speed of business?

So many business owners struggle with the idea of getting ready for change — evolving their business. Often with complacency, comes loss. One of the most famous examples is Kodak. Kodak was a very successful company, earned great market share, was member of the Fortune 500 and yet they refused to evolve into digital film. They kept sticking to what they knew, that they had made such great profits in — making traditional medians of film and then the market place evolved. In fact, Kodak was one of the first companies to have a digital camera, yet they did not capitalize on it. They refused to evolve to the market and because they refused to evolve they eventually lost out. They ended up destroying their company because they refused to evolve with the market.

Are you doing this on a smaller scale? Are you planting seeds for the future or are you constantly reaping what you have? A business that constantly just takes, takes, takes and does not plant new seeds, does not develop new directions, and does not change with the evolving market place, is eventually going to die. They are not going to be what they can be.

You need to balance the past and the future. You need to make sure that you understand the difference between taking for now and building for the future and you need to do a little bit of both at all times. Never should your business constantly just be building for the future except in the start-up phase, and never should a business just be reaping and not investing in the future, regardless of where the business is in the cycle. Even if you are getting ready to sell or transition your business, it is still a good time to be thinking about the future and what the business is going to look like with the new owner and how to maximize your value at sale.

What has been your experience with your company? Have you had trouble balancing the past versus the future? Are you building a company for the future? Join us in the comments below and let us know about your experiences.

Things evolve in business.

Don’t be complacent, plan for the future.

 

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Hans-Gunther Dreyer.

 

About the Author

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com , www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #mcbrideforbusiness #3lawsofempowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

 

 

Organizing Your Day and Calendar: Tips to Try to Make You More Efficient

Posted on: November 25th, 2016 by R. Shawn McBride No Comments

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Entrepreneurship is a journey. We’ve talked in prior blogs about the fact that you need to make your business reflect you. We’ve talked some about time blocking and other methods of making sure that time reflects your personality and your style, and that your business reflects you. One thing a lot of entrepreneurs need to work on is time management. Obviously, we have goals and objectives. Without careful oversight, what could be a small project could fill all the available time, and could become very challenging, and could fill up your life. We, as entrepreneurs, tend to be very dedicated to our businesses and love our businesses, so we don’t think about our time at work as working, so we’re not as careful about marshaling our time as perhaps somebody who is working from 9am to 5pm for a corporation. We need to think about how we’re going to deal with it all, how we’re going to make sure we manage everything. A couple of things I’ve learned over the years:

#1 Travel Tips. I love going on trips, so if I’m traveling to a particular location for a conference or event, I will look up people I know in the area, and I’ll spend one additional day in that location. This is a win-win. I’m already traveling. I’m already investing the time to get to the airport, to do the trip, and to rent the car, etc. If I can add one more day on, a lot of travel overhead does not have to be repeated. I don’t have to check in to another hotel. I don’t need to rent another car. I don’t need to book another flight. It gives me leverage to get to know more people, and to expand the relationships. Think about tacking a day on.

#2 Group Trips Geographically. Similarly, when I’m in town, when I’m working locally, I try to group my trips geographically. This is simple, but in my early days, I wasn’t as careful about my calendar. Now, I group things geographically, and make things make more sense. I try not to overreact. I try to put things in a proper place.

#3 Prioritizing. That’s another key to being organized. How important is the meeting? How much inconvenience is it worth? A lot of us don’t like to say no, but there’s a very strong power to being able to say no, to tell people, “I can’t do that,” or at least defer certain meetings. If you know it’s not as high a value, you can defer it.

#4 The Telephone is Your Friend. Nowadays, we seem to have two polar extremes with a lot of people. Either everything is on the internet, or everything is done in person. The telephone is a nice middle ground. It’s worked for so many years in business, and I think it’s due for a revival. I think we need to pick up the phone and stay close to some people by telephone calls rather than in-person meetings, or strictly e-mail. It’s a nice middle ground that’s often under-utilized.

What have you done to manage your time? How are you making sure that you’re being the most productive possible? How are you getting the most done in the shortest period of time? How are you growing your business? Please share with us in the comments below. We’ll enjoy discussing them with you.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity. Freeimages.com/Photographer marsy.

About the Author

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com , www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #mcbrideforbusiness  #3lawsofempowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

Live to Fight Another Day, Protecting Your Reputation

Posted on: November 23rd, 2016 by R. Shawn McBride No Comments

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We all watched this very heated presidential election in 2016. Now that the dust has settled a little bit, I think Hillary Clinton taught us a great lesson. What a disappointing defeat – so many years she had invested in trying to become president and she had such a strong following. So many people wanted her to win. So many people thought she was right.

It was a very close race, but alas she lost in the electoral college and those were how the rules were written. Hillary Clinton gave an amazing concession speech. While some people criticized her for the delay, she put together an excellently crafted speech. She recognized what happened. She warmed people back up to her. She reestablished her base. She created an opening for herself to be respected and loved in the future.

She took a bad situation which she wasn’t going to be able to change and she made the best of it. I don’t know what Hillary Clinton’s future plans are. Many of us don’t know, but what’s clear is that she did a great job of recognizing the situation, of making friends, and of positioning herself for the future. What lessons can we learn?

Many of us probably aren’t going to have our dreams happen exactly the way we want, even with the best plans, even with the plans we talk about using The Three Laws of Empowerment (www.rshawnmcbridelive.com). All of our dreams aren’t going to happen the way we think, so we’re going to have to be flexible. We’re going to have to live to fight another day. We’re going to have to find a new course.

I think Hillary Clinton taught us a great lesson of not burning our bridges, of making sure that we can get to where we want to get to, to make sure we can accomplish our dreams even if things don’t unfold exactly the way we plan.

What’s been your experience with your plans and dreams? Have you had disappointments along the way? What will you do differently in the future?

Hillary Clinton gave an amazing concession speech.

Be flexible.

 

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Amanda Nelson.

 

About the Author

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com ), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com , www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment  #BeFlexible  #Election2016

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

The Mistake of Frugality in Business: Why Saving Money is Costing you Big Money

Posted on: November 23rd, 2016 by R. Shawn McBride No Comments

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I’ve now started two businesses, The R Shawn McBride Law Firm, PLLC, which is now in its fifth year of existence, and McBride for Business, LLC, which just started in 2016. These businesses have started very differently. When I started the law firm, I was very careful about my expenditures, and I didn’t want to spend too much money on different things. I wanted to really make sure that I was being fiscally responsible, but it cost me big money, in the long run. I missed a lot of opportunities. I looked too closely at what I was spending, and not enough about  what I needed for the business.

Being in business costs you money. Ask any successful business owner, and they’re going to tell you they spend a lot of money on their business. A lot of different issues need to be handled, different things need to be developed, and the business name needs to be promoted and supported. Sometimes, indeed often, there’s a trade-off between time and money. The more something costs you, the less time it will take you, and the cheaper something is, the more time of yours it will waste. You want to make sure you’re always on the right side of the time-cost continuum, and these changes over the life of the business – but always make sure you understand that.

What is saving money costing you in time? What business opportunities are you losing? Who are you not meeting with? Who are you not pitching? Who are you not being in front of, and what materials are you not developing to support your business and making you better at your core functions?

On the conference and events side, I used to always go to free conferences and events or inexpensive conferences and events, but guess who I met there? I met other people who were not spending money, and going to inexpensive conferences and events. As my business grew, I started to get more comfortable going to higher-end events, often having higher price tags and more time commitment. But the people I met there were the people that were building their businesses. They were investing time and money in their business which in turn meant they would spend money with my business or knew people that would, which allowed my business to grow.

Think carefully. Are you being penny wise and pound foolish? Are you doing things to save money, but costing you lots of revenue? Think about it.

What’s been your experience with trying to save money in your business? Have you struggled with this? Have you had times where your unwillingness to spend money has cost your business? What’s your current philosophy? Please discuss with us in the comments below. We enjoy hearing from you.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity. Freeimages.com/Photographer Deb Collins.

About the Author

Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com , www.rshawnmcbridelive.com

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #mcbrideforbusiness  #3lawsofempowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

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