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Episode 199: How To Love Your Business Financials To Create The Life You Want – Megan Dahle and April Beach

This episode is for those in Phase 1 – 2 – 3 – 4 – 5 of the Lifestyle Entrepreneur Roadmap™ Not sure what Phase your business is in?

Episode Bonuses:

Megan Dahle’s FREE 36-Page E-Book: Getting Your Money Right

Who This Episode is Great For:

Established entrepreneurs (in all Phases of my Start To Scale Up Business System”) who want to stop being scared of the money and start taking control.

Summary:

You either love or hate to talk about money in your business. In fact, most entrepreneurs run and hide when it comes to financial ledgers. But on today’s show, we’re gonna make you love the money and control it. Getting your money right in your business is the best feeling ever, and the first step to getting a company that’s going to scale, grow, and give you what you really want in business and life.
This week we’re diving in with guest expert, accountant and CFO Consultant, Megan Dahle, and talking about where you are now, understanding where you want to be, and making sure you’re on the right path to get there. We do this by teaching you the simple three numbers you need to know that will give you the power, confidence, and control you seek.

Highlights:

  1. Understand why you need to name your money
  2. Get clarity on the dangers of reinvesting every dime into your business
  3. Know the most important number that you really need to pay attention to
  4. Get a simple routine to look at your numbers without being scared

Resources Mentioned:


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Full Show Transcript:

You’re listening to the Sweetlife entrepreneur podcast, simplified strategies to grow your service business and launch a life you love faster with business mental and entrepreneur activator a probate. Hi everybody. And welcome back. This is sweet life entrepreneur and business podcast, episode number 199. And yes, spoiler alert next week is our 200th podcast episode. And there’s some really cool stuff.

So make sure you’re subscribed. So you don’t miss out on that today. We are talking about how to love your business financials. So, first of all, if you clicked on this episode, then you’re pretty brave because the reality is that you either love to talk about money or you hate to talk about money in your business. And in fact, most entrepreneurs run and hide when we’re talking about financial ledgers,

but on today’s show, we’re going to dive in to make you love your money and take control of it. Getting your money right in your business is seriously. One of the best feelings ever really start to pay yourself. You’re paying valuable team members. Nothing feels better than that, but then we need to take it a step further. Is your business actually going to give you the life that you want.

First, we have the business foundations and financials that need in place, but today we’re talking about your life. How do we have the company generate enough money? And what do we need to do to get your life, to look the way that you want it to? And today’s guest expert, Megan Dali is here to talk about all of that. So the reality is let’s face it.

You either don’t understand the money in your business, or you have zero control of your cashflow, or you’ve done a really great job getting your financial systems in place. And now you’re ready for the next level either way. This is a great episode for you to tune into entrepreneurs. Don’t inherently come wired as accountants, as a matter of fact, most entrepreneurs are creatives.

And so when it comes to these types of systems, you might run the other direction. So that’s why today’s a really important show. And these are the things we’re covering on today’s episode. At the end of this episode, you’re going to know why you need to name your money and what exactly that means. You are going to get clarity on why it might be dangerous to always reinvest your profit back into your business.

So raise your hand. If every time you make goes back into your company, raise your hand. If every time you make those back into your company, but you also pay yourself a little bit. We’re going to talk about why both of those are not good, even though everybody does it and how to start changing that pattern. So you can reach your long-term business goals and we’re diving into important things like the number one number that you should pay attention to.

And why Megan says you don’t have to know all the numbers. We’re not getting into financial accounting lingo here. You’re just going to walk away understanding the most important number that you should know and a simple routine to look at your numbers on a regular basis, to make sure that you are on the right track. And let me introduce you to Megan here,

she’s our guest expert today, and she’s a doll you’re going to love her 15 years in a Megan Dolly’s corporate accounting career. A business owner reached out to her Megan privately because she was worried that one of the partners was taking more of their fair share. After looking at the books, Megan discovered that the partner had in fact taken $400,000 out of the account without the other partner,

knowing it was this sensitive project that was a launching pad for Megan. She is now a consulting CFO who creates light bulb moments inside her client’s businesses. And she makes the numbers easy for you to understand more importantly, easy for you to use so that you can learn how to grow your business stronger and make sure you’re generating cash and that it’s producing long-term wealth benefits for you.

So let’s go ahead and tune into today’s episode. Again, all of the show notes and the resources make it has here for us can be found by visiting Sweetlife co.com. This is podcast number 199. And if you haven’t yet, please take a second to leave us a review on Apple podcasts and share this episode with your friends, other business owners who really need to take control of their financial numbers as well.

Okay, let’s go.<inaudible> All right. You guys are welcome to the show. I am here with Megan Dolly, and today we’re talking about money. We always talk about goals and so many other podcasts talk about goal setting, but what are really comes down to is actually looking at the numbers, then the path that you’re on to make it happen.

And so that’s why I’m so excited to have Megan on the show today, because this is her area of expertise. And before she introduces herself, I wanted to read something to you that she sent to me, which is why I knew she absolutely had to be here on the show, talking to you guys today. She said light bulb moments are my favorite thing.

When my clients finally see what the numbers mean, it’s like watching. One of those videos were colored by blind people, put on those special glasses and can see color for the first time. It’s magical. Those magical moments have appeared in many parts of my life. And that’s how I know I’m on the path God has designed for me. Things that start by devastate is devastating.

Disaster is turned into something beautiful. And these transformations, these transformations that make me believe that all things are possible. And so Megan is absolutely an expert. She has crazy credentials, which I’ve already read for you, but what’s so important when we bring experts on the show is understanding the why behind what you do, not only what your Ninja zone of geniuses,

but the why behind. And so I wanted to share that with you guys before we, we dove into talking to Megan today. So Megan, take a minute and introduce yourself to our audience and tell people a little bit about you and how you got to be what you’re doing Today. Sure. Well, thanks so much April for letting me come on your show.

It’s amazing. I love how many shows you’ve done your consistency. The content is like, Oh my gosh, this is stuff I actually use. Like I’ve actually implemented stuff from your podcast. And so it was no brainer that I wanted to be on this show. So I’m a small town girl. I’m from Midwest, South Dakota. I like gardening. I have my kids.

I work with the marching band at the high school. I like to volunteer there. Yeah. And the numbers are my game. Numbers are my jam. I’ve just always seen them differently. Math always came easily. And my math teachers are like, your brain just works different. I love that. Yeah. You have to have a special gift to see numbers differently.

I do not have that gift nor to any of my children. So there you either have it or you don’t. I think. And, and so we’re grateful for people like you. So how do you work with clients? Primarily you have this amazing framework that you’ve created to help entrepreneurs and business owners make sure that they’re on the right path and that they’re going to achieve their goals.

I mean, this is a tangible framework and we’re going to dive into it today, which I’m so excited to on this show. Yeah. So the whole thing is that people are scared of their numbers or they don’t know what it means. They’re timid around them conversations with their bookkeeper and their accountant. Don’t go so well because they’re using that chart in the depreciation,

but you’ve been a, the, you know, those revenues Rose, it’s almost like they don’t want you to be asking questions, right? I’m going to use some jargon. So you just stop asking me questions. What I want to get to is what’s useful for you. I mean, you don’t need to know the ins and outs of your financial statements.

What’s actually useful. That’s going to help you make good decisions that you can have confidence in and know why you made those decisions and see the progress down the road. So it’s breaking it down into what would be a need. Right? Right. And your framework that you share, and you have a book about this, we’re going to, we’re going to let everybody know how to find you is number one,

where are you in identifying that number two is where do you want to go? Where do you want to be? And that’s the one we’re really diving in here today, which I’m super excited about. And then the third one is, Hey, you know, are you really on the right path to get there? So guide us into that second part of how,

how do you protect your goals? How do you identify, you know, really what is it going to take for me to get that beach house or send my kids to college or, you know, sell my company or whatever that is. How do you work with clients to understand that? Yeah. So it’s like the second half of goal making that is completely missing.

People don’t want to talk about the math part of the goals because it’s scary math or they forget about it or, or they’re more about it’ll come set the goal, set your vision board and it’ll come. I’m more about, well, let’s go get it. Let’s not wait for anything. Let’s not sit around and wait for it, but let’s actually quantify it and then go get it.

So it’s like, yes, I want that beach house or yes, I want to sell my business for X amount so I can retire with that cash. That’s great. Now let’s put a number on it. Let’s put a date on it. And where are we at compared to that? So we can go and get that progress. What happens when you don’t do this is that you make progress towards your goals,

but you might not recognize it. And so you take that progress and you reinvest it in your business, or you use that progress towards, Oh, some other expenses that might come up or the next shiny object. And then it’s like, your three-year goal is still your three-year goals, six years down the road. Wow. That is so true. That is exactly what business owners do.

So we think that that progress that we made financially, you know, instead of putting it to maybe what you’re saying is this in goal, they just automatically invested back in the company, which could be great. Or maybe it’s not what they should be doing with that. Yeah. That’s really fascinating. Oh yeah. Thank you. Yeah. So curiosity,

I love it. When business owners get curious and they start experimenting with things, but it’s also important to like have a, if you want to be curious and experiment, that’s great. Let’s have money that’s designated specifically for that, but let’s not be taking all of our progress and throwing it at this next shiny object. Yeah. Okay. So being proportionate about what you invest,

where each time you get each time you make progress, whatever that is. So if you have 20, $30,000, instead of reinvesting all that say, okay, we’re going to put 10 to this and then, you know, 20 or 30 to that. Interesting. Okay. So super interesting. So step number one is really quantifying how much it’s going to cost for you to get to that goal and really drilling down on those requirements.

And I think that alone, like we could just end the show here. How many of you guys listening to the show have actually sat down? And I know you all have thought about what you want because you’re entrepreneurs and we’re creative. And that’s what we do. How many of you have actually sat down and crunched the numbers to figure out what it’s actually going to cost for you to get there?

Connect with us, like send us a DM on Instagram Sweetlife podcast and let us know if you’ve actually crunched the numbers. And we’ll do like a little poll on our Instagram story on this with the week. This show airs, because I guarantee you, I mean, tell me Megan, how many people actually that come to your, like, this is going to cost me a million dollars.

I’ve had one client in my five years. I’ve had one, one that’s like had everything set up and she’s like, I know exactly how much I want for my daughter’s wedding. I know how much I want for my retirement. I will know how much I want for Beneta da. Great, awesome. That was so cool to come across. It’s like,

all right, let’s work on the next step. You’ve got this covered, right? That’s right. Yeah. Okay. So yeah, it’s a 90% of people will not have that 99.9% of people will not have that. Okay. So after somebody identifies really how much, what that’s going to cost the next step you say is really assessing their progress towards that.

Is there a certain frequency in which a business owner should stop and take a look that you recommend financially about how they’re doing? Is that quarterly? Is it monthly? Is it yearly? Is there a routine that you recommend entrepreneurs are in assessing, not their monthly? I mean, this is not a show about monthly operational costs. This is a show about where I am,

as opposed to where I want to be in my future. Right. So if it’s set up correctly, you’ll just be able to look and see, okay. Part of it is just taking that money out and hiding it from yourself in a special place. That’s either getting interest or invest in somehow to protect that progress and maybe do some work for you on the side while you’re not watching.

So I’ve lost my train of thought a second. When you triggered something, when you said it’s it’s mom mode, it’s our mom brain. No, what I was saying was I feel like as business owners, if somebody is like 30th of every single month, you should do this every single quarter. Should you do this? So I think that entrepreneurs,

you know, we’re super creative people, but when somebody gives us a system, we love systems. We geek out on systems too. So do you have a consistent system where you say to your clients, Hey, we’re going to have a, check-in call every quarter and make sure that your money’s moving, where it needs to be, and you’re still on track or we need to assess what’s happened so far or just regular,

like a routine that you recommend businesses really pay attention and reassess. Yeah. I actually have only a few numbers that I want my people to pay really close attention to. Because if I tell them to, you know, start pull your financial statements every month, it’s one of those things that, eh, I got it, they pull up, open an income statement,

they look at the bottom line. They’re like, yep, that’s about right. And they move on, right? It has no meaning to them. So I actually pick a few numbers, like one that you might need to watch weekly and other that you’ll want to look at monthly and another, that you’ll want to look at quarterly just to make sure that things are going along the way that they need to be.

And we’ll do that deep dive, more quarterly. But one of the most important, one of the most telling numbers is your 60 day cash in 60 days, how much cash am I going to have in the bank to run my business? And then we make sure that what we’re taking out and protecting isn’t going back in and what we’re taking out and protecting isn’t hurting the business.

Cause that’s, you know, you don’t want to be taking out too much cash. And when you can see what your cash balance is going to be in 60 days or other types of business, if you’re like retail and you have busy seasons, we actually take that out much farther. They want to know where the cash is going to be. Cause that’s the blood.

We don’t want to be donating blood if we can’t afford it. Right. Right. Right. So smart. And so the next thing you say is to name the cash before it comes in, let’s talk a little bit about that. What do you mean by that? So once we have that cash projection created, we know what we think our cash is going to be coming in for the next couple months.

And now that we think we know what that cash is, we’re going to have a purpose for it because if we don’t have a purpose for it, what’s really easy to do is to spend it. If we don’t know at that way, coming in as man, those coaching programs, the advertising, the marketing, all it’s, it’s sexy and it’s fun and it’s,

it’s new and it’s novel. So we actually name it like, okay, we know that next week we should have about 2000 coming in. And two weeks after that we have 4,000 coming in and then we know where it’s going out in terms of expenses. We know where it’s going out in terms of the progress towards our goals. And we know what’s being set aside for a little sandbox fund cash and owe taxes.

Don’t forget about taxes. I do taxes and taxes yet. So you actually say Before it comes in, so you know where it’s going versus where somebody like myself, I have a tendency to not just name the money to actually spend the money before it comes in. So in my mind, I’ve already and I don’t actually spend the money, but I think maybe I do that.

So in my mind, it’s already saying this money is coming here for this. This money is going to this and it’s not like robbing Peter from pain, Paul, but I definitely know where my money is going well before it gets here. And so I feel like I’m doing good, according to what you say in that area. Although I’m sure that the categories in which I named my money could use some work.

And like you were saying, so you’re saying taxes, of course, business operations. And you’re saying that we really need to pay attention to the 60 day cashflow. And that is the key numbers are our listeners should be paying attention to, is that correct? Yes, that’s right. And on that cashflow, you’ll see the different categories. You’ll see,

like the marketing that one can get out of hand really quick. You’ll see the tax and all of those buckets, because truth is to get a little bit accounting, jargon ish on you, not everything that is cash out actually appears on your income statement. So your income statement might show that you’re showing have a profit, but cash is like, did you know that you paid yourself?

And did you know that you had these debt service payments? And there it goes, what you thought was your free cash flow. Right. Okay. And I’m sure this happens all the time. It’s just why people need somebody like you to make sure that you’re helping them protect their assets. So the third step you say is protecting this actual progress. So as businesses,

they have their structure in place or they’re getting their structure in place. What does it take to actually do that and put that structure in place so that the money is accumulated in the appropriate buckets so that they can reach their goals. How do you put this structure in place for your clients? So I have a really easy Excel tool in all my clients have to do is put in their bank balance.

At the top of that tool, like open up the bank balance today, it says $7,500. And it will tell them exactly what to do with that $7,500. If something’s going to stay in the business, if something is going to be moved to pay themselves and put it in their pocket, or if something is for their goals specifically for that, and going to move directly to,

I work with a lot of like personal finance people, like go put that in that account over there and your personal finance, personal take care of it. If they don’t have a personal finance person, I’m like, go put this in your savings account, your money market, account, your investment account, and just let it be happy over there. All by itself will take care of itself,

right? Who are The primary clients that you work with? I work with creative females primarily, and between being told that you’re creative and between being told that you were a woman you’re generally taught from a very young age, that numbers aren’t for you. And so when it comes to those conversations and showing people visually how this works so they can get that shift of,

Oh, this isn’t hard. I totally get this. I’m smart enough. I’m good enough. And now I feel like I am a true business person. I feel like I’m in control of my business. It’s really cool. Yeah. Super. It feels super powerful. It’s such a rush when yeah. I think as, as women, as men,

they just are expected to, but as women, when we finally take control of the numbers, it’s such a, such a feeling of, I don’t like to use the word empowered because it’s so overused, but this is a perfect instance in which she used that. And so I love, absolutely love what you do. So now I’m going to put you on the spot and I didn’t prepare you to ask these questions,

but I really want to know what are your favorite books for women founders when it comes to being smart about money? Do you have, besides your own? So let’s talk about your book, you know, getting your money. Right. I know that I hear a lot of people whose agenda and Cheryl’s book, you’re a, bad-ass at making money, which is more mindset around money.

It’s not money strategy. I personally actually loved that book. Are there any other books or resources that you recommend that our listeners who might not have a healthy relationship with money in the first place can use to kind of dive into reset their perspective? Yeah. So profit first was transformative for me. Mike McCullough is a great guy. And when it comes to bank balance accounting,

he’s the King and that’s what we’re doing and using what he has built and expanding on it. He’s really good. He’s really funny. If you listen to his books, listen to it on two X and he’s hysterical the other, I’m actually going to stand up and get the author’s name cause I can hear it. Oh, I love it. Thank you.

And then we’ll make sure you guys that we are sharing, we’re sharing these resources in the show notes too. Along with Megan spoke to one of the things that I know that businesses struggle with is just understanding the fundamentals of money. And it’s really interesting. I have a lot of clients that are CPAs and that are accountants and you know, that are finance coaches.

And it’s interesting to see as we’re helping our finance coaching clients build their business, how they approach scaling their business online and developing their coaching service versus our other businesses because they already know. So a part of the strategy is also part of the structure and the foundation of the money. It is that profit first approach. And it’s a beautiful thing as a business development coach,

you know, to go through and watch. And they’re saying, okay, well, this is the way this is going to be. And they’re very, they’re very strategic about that as far as being entrepreneurs themselves. So I, I love to ask these kind of behind the scene questions like about your own business and how do you do this and what are some of the resources that you love for your own business?

Just because I think that teaches a lot as well. So what was this other book? Cunningham has a couple of really great books. His blueprint to a successful business is like, this is why you need to understand the numbers in your business and how they make you incredibly profitable when you understand them. And he’s also not about all of the nitty gritty bits and pieces of the numbers.

It’s just the overall picture of how it flows together and how it works. Yes. Awesome. Cool. Thank you so much for sharing those. Okay. So in closing today, we have talked about how to not only protect your goals, but how to actually make your goals come to fruition because you are quantifying them to figure out the importance of how much your goals and what that looks like is going to cost you.

We talked about the importance of actually assessing your progress on a regular basis and naming the cash before it comes in and making sure that you are hiding and you’re protecting your money and you are not giving 100% of your profit back into your business that you’re pulling out these small chunks of this. And that’s a really big deal, I think for a lot of our listeners as well,

because especially in the first five years of business, like every dime they make, they put back in, and that does, you’re saying that’s a risk factor of, you’re just putting off that amount of time to even start working on their personal goals. Is that correct? That’s right. Yep. They need to start getting rewarded for the work that they do,

change your relationship with your business. Yeah. And then in your book, this ebook, you have getting your money, right. What does that look like? What are some of the things that our readers can expect to really learn from you in that book? So there are three types of numbers that you need to know in your business. There is the number that tells you,

where am I at? Like, where am I even at relative? How did I get here? What direction am I facing? When, where am I? And the second one is, well, hang on a second. Where do I want to be? And that’s the quantifying, this is what I want my from my business. This is how I want it to serve me.

And then the numbers that tell you, are you on the right path? Are you doing the right activities or does something need to shift? Do we need to take a detour in what those different numbers look like and how you can find them? Great. And so you’re going to, you’re going to dive in and guide our listeners through that process. Megan,

thank you so much for being on the show today. I appreciate your expertise and your wisdom and your sense of humor and just really making this so much more fun than I think that entrepreneurs experience a lot of times when we talk about money and being so real about the fact that you don’t have to know all the nitty gritty terminology, but these are the basic three numbers you need to know.

And our listeners can find out more about that by downloading your free book, which we will make sure there is a link to that in the show notes of this episode and where else can our listeners find you Come on over to Meghan dolly.com or connect with me on Facebook. I love conversations to begin to sit back and have 15 minutes of coffee together, sometime if you want,

Love that. Okay, perfect. We’ll make sure that those links are in the show notes. Thank you so much for being a guest. Oh, thank you so much, April. This was fun. Yes. Appreciate you.<inaudible> Thanks so much for tuning into this show. Here is a reminder that you can get all of the notes that we talked about today,

including all of the bonuses and strategies by visiting Sweetlife co.com episode one 99. And if you are in a place where you’re ready to develop your signature offer or your program now is a time to get in through pre-registration by joining our wait list for our, your signature offer and program masterclass coming in 2021, I would love to work with you and extract your expertise to create your intellectual property,

to make you be this beautiful leader and your space to learn more about our, your signature offer masterclass, simply visit signature offer.com. I’ll talk to you next week. We have episode number 200 coming right at you and almost four years of Sweetlife entrepreneur podcast. Rolling out so excited and you appreciate so much have a great week.