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Steven Pesavento

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Summary

The most important part of starting a business is getting the finances right but many young entrepreneurs are screwing this up. So let’s dive in and find out why. 👉👉Learn About Investing Together at https://theinvestormindset.com/invest

This week Greg Crabtree and I dive into why so many business owners get finances wrong and how you can avoid making the same mistakes and turn your business into a wealth building engine. We talk about taking your data and breaking it into a simple and usable model. Think of it as a vehicle – there’s an engine and a chassis. The engine of the business has 3 core components: revenue, direct cost and labour and the chassis of the business is all the operating expenses. If you’re not making an ROI of 50% or more from your business, then somewhere there’s a problem that you need to solve.

Greg Crabtree is a speaker, author, entrepreneur and financial expert. Crabtree has used his entrepreneurial skills to develop Crabtree, Rowe & Berger, PC, a CPA firm focused solely on the needs of entrepreneurs, helping them build the economic engine of their businesses. Working with entrepreneurs all over the country in a broad range of industries, Crabtree has simplified financial reporting and empowered all entrepreneurs to take ownership of their finances. He has pioneered a revolutionary metric for driving business profitability: measuring labor efficiency and developing simple benchmarks for company, team and individual performance.

In 2011, Crabtree published his first book “Simple Numbers, Straight Talk, Big Profits,” in which he shares his core principles of how to turn your business into a wealth building engine.

Crabtree’s community service includes serving as Boys and Girls Clubs of America National Area Council Member, Entrepreneurs’ Organization Global Board (2006 to 2009), ALS Association of Alabama, Boys and Girls Clubs of North Alabama, Atlanta chapter of The Entrepreneurs’ Organization (EO) past board member. Crabtree is a frequent speaker at EO Chapter events, EO’s Accelerator Money Day program and the U.S. State Department’s New Beginnings program for international entrepreneurs.

Hit subscribe to join the community and let us know in the comments: How did you improve your business financials?

KEY TAKEAWAYS

  1. Take your data and break it into a simple and usable model. Think of it as a vehicle – there’s an engine and a chassis.
  2. The engine of the business has 3 core components: Revenue, direct cost and labour. Then the chassis of the business is all the operating expenses.
  3. If you’re not making an ROI of 50% or more from your business, then somewhere there’s a problem that you need to solve.
  4. There’s two ways to attack return – improving net profit or reducing the input of capital.
  5. Working capital is a flawed concept.
  6. The easiest way to scale is to have the least amount of capital drag/input into your business.
  7. Get so clear about your numbers that you’re able to directly see and understand how much you can pay staff.
  8. If you’re not at your best right now, it’s because you’ve let staff be unproductive or you’re spending money too far in advance.
  9. 90% of businesses grow by speculative expenses spent before they produce anything. For example: the cost of hiring someone does not pay off until at least a couple of weeks after they are hired.
  10. The number one distortive thing that new business owners do to their business is not paying themselves the market wage.

BOOKS

The Passive Investing Playbook – https://theinvestormindset.com/passive

Simple Numbers, Straight Talk, Big Profits!: 4 Keys to Unlock Your Business Potential – https://www.amazon.com/Simple-Numbers-Straight-Talk-Profits/dp/1608320561

LINKS

LinkedIn: https://www.linkedin.com/in/greg-crabtree-baa338/

Simple Numbers Website: https://simplenumbers.me/

Learn more about investing with Steven at https://theinvestormindset.com/invest

Join the MultiFamilyMBA and get exclusive free training: https://theinvestormindset.com/mfmba

FEATURED EPISODES

Learn from the smartest minds in business & investing.

Rod-Khleif

Rod Khleif

Director at The Lifetime CashFlow Academy, Best Selling Author & High Performance Coach
Kathy Fettke

Kathy Fettke

Co-CEO of Real Wealth Network, Host of the Real Wealth Show & author of Retire Rich with Rentals
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Chris Voss

World's #1 Negotiation Coach, Bestselling Author "Never Split The Difference"
Brandon-Turner

Brandon Turner

Cohost of BiggerPockets Podcast, Author and Managing Member of Open Door Capital LLC
david-allen

David Allen

Leading authority in organizational and personal productivity, Author of Getting Things Done
Joe-Fairless

Joe Fairless

Host of Best Real Estate Investing Advice Ever show, Co-Founder of Ashcroft Capital

About The Show

What separates those who succeed from failures? Join thousands of listeners who learn the mindset of real estate investing and how to create multiple income streams. From busy professionals interested in passive investing or the real estate entrepreneurs who are primed to scale all come together to learn the mindset of creating financial and time freedom.

The Investor Mindset is a mix of interviews, and solo shows from Steven you’re not going to want to miss. Hit subscribe, and get ready to change your life.

YOUR HOST:

Steven Pesavento

The Investor Mindset Podcast & President VonFinch Capital

Steven Pesavento has always been obsessed with understanding how we can think better, how we can be better and how we can do better. He is an active real estate investor who curates Commercial Real Estate Investments for clients.

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