Takeaways
- Sarah says she had a few bad experiences with tax accountants and it planted the seed that she could do it better herself. Then her family businesses needed help and she was able to step in. She realized how hard it was for business owners to get good financial support and this inspired her business!
- Sarah says that a lot of people get scared of their numbers. They don’t keep track because it’s scary. She’s seen so many people attach emotion to money. You don’t need you to look at every single number, but Sarah says to look at your sales–90% of financial statements she sees, people have 20-30 accounts to break down what they’re spending, but only 1 line for sales. Her advice is to really break down the income coming in!
- Know what you’re spending where. Sarah says know what you’re spending on reoccurring overhead, so you can be really smart with the one time stuff.
- Sarah says that in order to know what to spend money on, picture your money flowing through a stream.
- Her professor told a story of a manufacturing company that wants to put out more product. There’s one bottleneck in the line–you can put so much energy into the things before or after the bottleneck, but if you don’t actually address the bottleneck, you will never get more out of the system. This is great metaphor for our businesses–if you don’t address the problem in your funnel, nothing will change. Figure out your bottleneck.
- People tend to think, ‘I need to grow my audience always and get more customers…’ sometimes that’s true, but sometimes there are other things to focus on. Sarah said to really address the bottleneck areas of your business.
- Sarah says that before you spend money on ads, go to your sales calls and see how many you’re converting. If it’s low, work on the closing process, so that before you spend money on ads, you have these issues fixed, so you are making more money in the long term!
- Sarah recommends investing in a team, in leveraging your business, and putting systems into place to get rid of those “bottlenecks” in your business.
- Sarah recommends investing your profits. She says that real estate is a huge area to see return in your money, Roth accounts, rental properties, commercial properties. What are ways you can start using your money now, to start building up assets so you can build up pre- and post-retirement assets.
- You business is the fire starter. When you get to where you are making enough in your business, you can use it to fund all these other revenue streams! Ask yourself, what is your purpose for wanting to make this money? Your business can fund your other investments.
- Quotes I love from Sarah:
- “More money is freedom, it’s choice, it’s power, it’s options.”
- “I just want more money in the hands of people who don’t look like the traditional people who have all the money.”
Highlights
- (1:18) A little more about Sarah!
- (1:52) How she got into helping people “build wealth.”
- (3:20) What financial numbers are important to look at?
- (5:28) Why you need to list all your revenue sources separately.
- (7:20) Our P&L
- (7:45) What’s worth spending money and energy on?
- (8:40) The Bottleneck metaphor.
- (10:05) Selling to more, or less people–what’s better?
- (11:54) How to get repeat clients.
- (12:10) Can you afford ads?
- (13:40) Sarah’s advice for what $100k businesses should invest in.
- (20:18) Sarah’s opinions on taxes.
- (23:05) What can you invest your profits into?
- (30:10) Multiple income streams are the key to your freedom.
- (32:03) My own out of the box income stream ideas.
- (33:50) You business is the fire starter.
- (35:05) How is your business going to fund your dream life?
- (35:32) What it means to Sarah to make an impact.
- (37:06) One of the best books Sarah has read.
- (38:51) Where to connect with Sarah.
Quotes
“Detach my time and energy and effort from my businesses’ availability to run.”
“If you have taxable income on your tax return, you will pay taxes.”
“What are ways you can start using your money now, to start building up assets so you can build up pre- and post-retirement assets.”
“I want to have more than just my business as a long term strategy.”
“You business is the fire starter.”
“More money is freedom, it’s choice, it’s power, it’s options.”
“I just want more money in the hands of people who don’t look like the traditional people who have all the money.”
Resources
Connect with Sarah:
Instagram: @itssarahyoung
Podcast: Profit + Prosper Podcast!
Books Recommended in the episode:
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