We can imagine like 90 days in, what did we just get ourselves into that we don't have enough money for payroll. So that's super scary. But that's, that's. Our poor planning had nothing to do with the company we bought.
Acquiring Minds
$20m Net Worth After 25 Years Buying Businesses
Excerpts · 455 segments · ~1:36:37 long
Short excerpts only — hear the full conversation on the publisher's site.
We just needed to ask for more working capital. So that was poor planning on our front. Up, up front. Right. So super, super important on working capital.
Needs and, and the fact that you guys were CPAs in overlooked working capital is will just to regular listeners, will sound familiar. The point of how tricky working capital can be, even for a couple of professionals like you who understand deeply numbers come, how numbers flow through a business. We hear often that that's one of the great pitfalls of first time buyers.
But your background as a cpa, how relevant or helpful do you think it was then or has been this whole, this whole run?
Super, super relevant. I've got five kids. Two have graduated from college, two are in college and one's in high school. And I tell every one of them, I don't care what your career path is.
If you're going to go be a nurse or a doctor, an attorney or whatever you do in life, you better have taken as many finance and accounting classes as possible. And I truly believe that is super important. And me being a cpa, just knowing when you get into the accounting, the taxation of small businesses, it's very confusing.
And I'm still not an expert in that space. Right. I do my own personal taxes. I don't do any of my corporate taxes.
Corporate taxes are extremely difficult. Right. I mean I've, I have, between all my companies now I think I have 10 corporate taxes, tax returns that are down on a yearly basis. And they all kind of talk to each other and they're all partnerships with each other and, and they're 70 pages long each.
And I'm looking through them like what? I don't even know what's going on today, 25 years later. But me being a CPA, I know just enough knowledge to be dangerous to ask the relevant and the weird and outlier questions to my CPA that does my taxes.
Hey, what if we structured the company this way? How can we restructure this? And I pay myself a different salary so I get out of paying payroll taxes.
How can we do that? Right? So that's what I Preach to anybody that comes to me for advice. Some a friend knows that I've been in the space for a long time and I'm like, man, educate yourself in this. Just enough to ask intelligent questions of subject matter experts.
So me being a cpa, I'm going to think for two seconds here on how much money I've saved on my taxes in the small business space over the last 25 years. And I bet you it's two or three million dollars. So take as many of those classes as you possibly can.
Want what comes before or after? Hear the full episode on the publisher's site ↗