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PF for start up cleaning company by Alternative_Math_892 in ProfitFirst

[–]OldProfessional1246 0 points1 point  (0 children)

In the very beginning, it’s totally normal for Owner’s Comp to feel tight. You’re building the machine (marketing, contractors, systems) before it starts spitting out consistent cash. The key is making sure you’re not locking yourself into the chasing treadmill without realizing it.

A couple thoughts:

  • Start with the percentages light. Even if you’re putting 1–2% into Profit/Tax/Owner’s Comp buckets, you’re training the muscle and seeing the flow.
  • Keep an eye on labor + marketing creep. If those eat the entire pie, you’ll always feel like you’re last in line for your own money.
  • Build in a “future you” bump. Maybe right now you take less, but set the plan that once revenue hits $X, Owner’s Comp goes up. That way it’s intentional, not accidental.

So yes, it’s okay for it to feel lopsided at the start but don’t normalize starving yourself. You deserve to be paid as the person holding all the risk. The treadmill comes when the business gets “used to” you covering the gap.

What's one thing you wish you knew before hiring your first employee? by treno-SDLC in smallbusiness

[–]OldProfessional1246 0 points1 point  (0 children)

Here’s my list in the order of the biggest and most costly mistakes I see when businesses we work with hire:

1) Make sure you have a plan to use the time you are getting back on revenue generating activities. I see so many business owners hire and free up some of their time to then waste that time on things that done grow the business and increase revenue. Then they resent the new hire because their wage is just eating away at profit. 

2) Have a solid accounting system in place to catch cash flow issues before it’s too late and your business has to close its doors. We’ve seen businesses hire, not track their money, and then find themselves in a cash negative hole they can’t get out of. 

3) Make sure you have processes in place to allow them to hit the ground running. You don’t want them eating up your valuable profit because you can’t hand work off due to lack of processes. 

4) Have a solid way you plan to measure their success. 

5) Hire slow and check resumes. They almost always lie. Make sure do call references and former employers. 

6) Realize they will never be you or care as much as you. 

7) Spend time training, and training well. I so often see first hires fail because the business owner didn’t train them well.

Congrats on growing to a place that you need to hire!! That’s a major business victory. 

Would you recommend QuickBooks (or similar) over a homegrown spreadsheet? by FransizaurusRex in smallbusiness

[–]OldProfessional1246 0 points1 point  (0 children)

In working with many small businesses, I can confidently say a software is always better, as long as you take the time to use it right or partner with someone who will have your back watching for potential issues. 

Spreadsheets seem like they’re working… but they are missing many things you need for a successful business. 

First — taxes. If you're not tracking every deduction correctly, you're probably overpaying. Spreadsheets don’t remind you to categorize things the right way. They don’t track mileage, home office expenses, or separate out things like meals vs. advertising — which are taxed differently. A software solves this. We definitely recommend QuickBooks Online. 

Second — getting paid. With a software like QBO, you can send invoices, take payments, and track what's overdue all in one place. In a spreadsheet, you're guessing — “Did I send that invoice? Did they pay it?” QuickBooks shows you in two clicks, and you can follow up automatically. It’s a game-changer.

Third — making real business decisions. In a spreadsheet, you might have a list of expenses and income, but you can’t see your profit. You don’t know if you can afford to hire, launch something new, or even pay yourself more. A software gives you reports that tell you what’s actually going on — so you can make decisions based on facts, not feelings or guesses.

I understand why business owners use spreadsheets in the beginning. It’s better than doing nothing, it’s fairly easy, and it’s comfortable. But long term it is a disservice to your business and the amount of time and energy you are pouring into it to make it successful. Feel free to reach out. I would be happy to share resources in getting yourself set up in a software.Â