All Forum Posts by: Max Emory

@Caleb Brown, 100%! The stress relief is probably the largest benefit.

REMINDER: WE'RE 2/3'S OF THE WAY THROUGH THIS YEAR

As a real estate investor, small business owner, side hustling entrepreneur, etc etc, if your financials aren't in order up to this point for whatever reason don't beat yourself up. That's the IRS's job...

You still have plenty of time but time flies as they say. You may want to consider getting some help. If you can afford not to tackle the daunting task alone then don't.

And, if you already have some team members to help you with your books, tax strategy, etc, do yourself a solid and make it a priority to get them what they need so they can best serve you.

Just my 2 cents. I hope this reminder helps!

How much are you LEVERAGED? Do you know?

If not, calculate your entire portfolio's/business's loan-to-value (LTV). As in, what's the principal balance of all of the loans you have within your business? Divide that number by the estimated value of your portfolio/business.

Example:
$1M Loan balance DIVIDED BY $2M Portfolio or Business Value = 50% LTV (underleveraged for most businesses)

There's a "healthy" leverage percentage for each industry. But, at the end of the day, this greatly depends on your risk tolerance and goals for your business/portfolio.

Find your individual "healthy" leverage percentage. If you are under that marker you are "under leveraged" and may want to consider getting more cash into your business via some additional loans or refinancing some of your current loans as long as your cash flow will still remain healthy.

I hope this helps!
__________________________
Real Estate Investor | Bookkeeper & CFO | USMC Veteran

Hi @Robert Lombardi! For me, the main benefit is getting all of my ideas out of my head and into a document for future reference. It also helps me map out when I will be able to tackle my future business and investing ideas year by year. For ideas I want to tackle immediately or next year, I get granular and outline what needs to happen month by month. It allows me to see what needs to stabilize (and by when) prior to initiating anything with the next idea.

@Mike Kehoe, I've started implementing it and have already seen great results in the early stages. I'm excited for what's to come!

@Scott Trench, I first heard about EOS and the Traction series on the BP podcast! Been listening to and following you guys since 2019. 

I'm close to the end of the book "Rocket Fuel" and it's been just as eye opening as "Traction." Great book for anyone currently scaling a business (or thinking of scaling a business).

I love this quote. It's so simple and almost counterintuitive. But, if you have experience with more than 1 person on a team or in a partnership being accountable for the same tasks, things fall through. It happens to the best of us.

Set crystal clear roles & responsibilities, who is accountable for what and who they report to, and the organization/team/etc quickly begins catching #traction.

Does anyone run your business using EOS or another system?

__________________________
Real Estate Investor | Bookkeeper & CFO | USMC Veteran

CRAFT YOUR INCOME STATEMENT (P&L) TO APPEAR MORE "BANKABLE" WHILE STILL LOWERING YOUR TAX BURDEN

How your categories/accounts are structured on the income statement (profit and loss) matters and this may help you "sell" that you have a higher net income from your business for "banking purposes" than you pay taxes on.

Now, this won't work with all lenders and it helps a lot if you have/form a relationship with the bank/lender/investor/etc.

I usually code all of my expenses that I would pay for anyways (if I didn't have a business) into "other expense" categories to separate them from the COGS and expense accounts that are necessary for me to run my business.

This allows me to structure my income statement to show me what my actual income is on the "net operating income" line and what I will pay taxes for on the "net income" line.

Who else has tricks like this to better see what you need to see from your financial statements and to stay "bankable" as an entrepreneur?

Do you have a "Future Revenue Streams" document? This is something I came up with months ago and usually review/revise once per week.

It's a document I throw business and investing ideas onto to tackle sometime in the future. It may sound similar to a vision but it's more of an overarching business/investing idea document with some timelines. I have individual visions for each of my businesses that are more structured.

If you don't have one of these and you have some MASSIVE goals you are working towards, I would highly recommend creating one.

Super powerful!

@Scott Trench, @Chris Mason, @Johnny Lau, @Deanna B., your perspectives and experience are invaluable. Thank you for sharing within this thread!