Adam Rundle is the founder and owner of CleverProfits, a Strategic Advisory Firm for entrepreneurs. Services include Accounting, Taxes, Fractional CFO, HR Consulting, Payroll Services, and Advisory Services.
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Guest Resource
Adam’s YouTube – Check out Adam on YouTube!
3 Value Bombs
1) Success requires constant, dedicated, hard work. Keep swinging at opportunities daily; the ones who persist the longest are the most successful.
2) In business, two critical aspects are acquisition and fulfillment. These are the pillars that determine whether a company is truly functional.
3) By clearly understanding your role and managing compensation thoughtfully, you can ensure the long-term success of your business.
Sponsors
HubSpot: There’s a better way to win, and it all starts with the new HubSpot Sales Hub. It’s smart software for smart sales teams that feels good to use! Try it for yourself at HubSpot.com/sales!
FranBridge: Many EOFire listeners have launched franchises in a variety of industries outside of food – and FranBridge Consulting has guided them to these premier opportunities! Sign up for a free consultation with Jon – or get a free copy of his book, “Non-Food Franchising” – at FranBridgeConsulting.com!
Show Notes
**Click the time stamp to jump directly to that point in the episode.
Today’s Audio MASTERCLASS: The Perfect Profit and Loss Statement with Adam Rundle
[1:31]- Adam shares something he believes about becoming successful that most people disagree with.
- He believes that success requires constant, dedicated hard work. Keep swinging at opportunities daily; the ones who persist the longest are the most successful.
[2:15] – Adam shares his ideology on the best way to structure your finances.
- As entrepreneurs, you need to focus on keeping things simple.
- Know what you optimize for in your business.
- Manage cash flow and growth cycles effectively.
- Remember that simplicity and clarity lead to success.
[5:19] – What is your advice for how you can best manage cash flow and growth cycles?
- Cash is vital for business success, driving it forward like a lifeblood.
- To optimize finances, focus on profitability, efficient spending, and cash flow management for growth.
- Being prepared for the sprint involves understanding cash flow needs and profitability. Many fail because they underestimate the preparation required.
- The longer you maintain a profitable business, the more resources you’ll have for growth.
- Micromanage progress, hit targets, and stay on track to avoid running out of energy and cash, which could lead to business failure.
[11:05] – A timeout to thank our sponsors!
- HubSpot: There’s a better way to win, and it all starts with the new HubSpot Sales Hub. It’s smart software for smart sales teams that feels good to use! Try it for yourself at HubSpot.com/sales!
- FranBridge: Many EOFire listeners have launched franchises in a variety of industries outside of food – and FranBridge Consulting has guided them to these premier opportunities! Sign up for a free consultation with Jon – or get a free copy of his book, “Non-Food Franchising” – at FranBridgeConsulting.com!
[14:06] – Adam shares tips and tactics on adequately allocating resources to your marketing efforts and your team.
- In business, two critical aspects are acquisition and fulfillment. These are the pillars that determine whether a company is truly functional.
- To simplify finances, break them down into three buckets: acquisition, fulfillment, and overhead.
- Overheads maintain operations but don’t drive growth. To succeed and scale, invest in acquisition and your team.
- The “golden ratio” between acquisition and fulfillment expenses is vital for profitability. Aiming for 55-60% of revenue for these costs is a good target, though the specific ratio varies depending on the business model.
- Do not forget to include a reasonable salary for yourself as a business owner.
- Overall, focus on optimizing acquisition and fulfillment, as they are the lifeblood that propels your business forward
[18:51] – Adam shares how you can pay yourself correctly as an entrepreneur.
- The issue of owner’s compensation in a business is crucial, as it determines the purpose and success of the venture.
- It is the point where all aspects of the business collide: revenue generation, cost management, cash flow, and taxes.
- Regardless of tax considerations, analyze your business to see how much you can pay yourself.
- Once you have a precise salary figure, focus on that amount and make sure your business is profitable enough to support it.
- Avoid erratic spending and live within the means of your salary.
- By clearly understanding your role and managing compensation thoughtfully, you can ensure the long-term success of your business.
[25:37] – Adam’s call to action.
- Adam’s YouTube – Check out Adam on YouTube!
[26:43] – Thank you to our Sponsors!
- HubSpot: There’s a better way to win, and it all starts with the new HubSpot Sales Hub. It’s smart software for smart sales teams that feels good to use! Try it for yourself at HubSpot.com/sales!
- FranBridge: Many EOFire listeners have launched franchises in a variety of industries outside of food – and FranBridge Consulting has guided them to these premier opportunities! Sign up for a free consultation with Jon – or get a free copy of his book, “Non-Food Franchising” – at FranBridgeConsulting.com!
Killer Resources!
1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!
2) Free Podcast Course: Learn from JLD how to create and launch your podcast!
3) Podcasters’ Paradise: The #1 podcasting community in the world!
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