Pam Jordan, Stanley, Duke Law School discussed on The Bacon Podcast | Brian Basilico - Marketing Strategy Expert Interviews to CURE Your Marketing
Hey leaps I have two incredible guests today. Their names are Stanley. PAGET and Pam Jordan. Now let me ask you guys something confront so lawyer and an accountant walk into a bar. What's the punchline? I'm a pastor's wife and he's a Mormon so I'm going to get drunk. He's GonNa Walk Me Home you wou- self like a party I want to so How are you guys doing today? Doing Great Brian so Stan Dan you are a lawyer in Pam. You are an accountant and me being of business. ILL FOR OVER FORTY YEARS I've dealt with with both of you guys but not everybody may have all of their is dotted T.'s. Crossed the day may have their shoebox filled with receipts and maybe could use a little business advice. So that's what we're here to do. Today is kind of introduce them but before are we get to that. Can you give me each your your story in Manhattan you get into law had to get into accounting. I mean did you. Did you have a calculator as a little kid Did you like wearing robes and gals. And how did that Ulster them you first so I thought I was either going to be in Hutton Africa as a missionary or in a corner office And I tried the nonprofit route and decided it was not how I wanted to go so I jumped in corporate. Had had lots of fun saw the ups and downs Got Over fifteen years of working the small businesses and I now have a fractional. CFO firm. That right I run that we help. Do all the executive financial stuff that you need regardless of what size you are profit loss cash flow budgets. All those things business owners don't care about that. I love well. Somebody's gotTa love it. so how `bout you stand. I always wanted to be a lawyer but primarily primarily because when I was a kid I thought it looked all all the prisons were lawyers and that was the best way to be president. I now don't want to be president. Okay I went to grow. I still wanted to be lawyer because it just was always interesting to me. I went graduated from Duke Law School. Nineteen ninety-two practicing as a business. Trial lawyer in Tampa. Uh for the last thirty seven years I have represented business owners in virtually every kind of a case that you can imagine. So I've seen every kind of screw they make and I realized that they're very common patterns of things that they do wrong and if I could teach them how to avoid those problems it would be far more valuable able to them and far less expensive than me having to hire me to get out of trouble later. So that's why Pam teamed up so we can keep business owners out the trouble see that's awesome and having run businesses for over forty years. I've seen a lot but I haven't seen everything so You know there are certain things that have happened to me over the years that I've made you know dumb mistakes and You know gotten sued. I've you know one thing I've learned a longtime ago was get a good accountant. Because they're going to help you save more money than you're going to spend in the long run so but you guys have a kind of a the system put together and we're GonNa talk about five quick things today and It's five kind of start up problems or secrets that people need to know about so the five things that you guys told me about number one. Where bad advice? Handshake deals something about a piggy bank. Something about control in then some hiring mistakes so I'll let you guys take to it. So why don't we start with the bad advice because nobody in business ever gotten bad advice from their brother and all right or they've I've never gotten bad advice from Google the anywhere on the internet or sadly enough a lot of people in this WanNa start a business actually go to CPA's and what they get is a lot of bad legal advice so the the number one proposition is start. Your Business out sound bill on a firm foundation on Dacian and then when you make money you can grow it as big as you want We see a lot of people build bro builds build businesses completely wrong because they get bad advice. And you can't get answers off the Internet you can find twenty different answers to the same question and probably nineteen and a half of the wrong. Those are pretty bad on so pam. How `bout you got anything to add to that? So yeah to the stands point me away people start out when they make a start a company like oh well I'll just gonNA CPA or asked my uncle kind of cooper structure tax structure. I should choose news and then five ten years down the road. Someone like standard. I walk in and were there to broker a deal and we start digging and realized they have the complete wrong legal structure. They're paying the taxes for the last ten years and it's takes US longer to get them set up correctly so we we can take them to the next level so when you set up your company you need to get advice from someone who can ask you what your goal is because very often. SCPA will say. Oh you want to be an ankle escort to save on taxes but there's lots of other options that in many cases can be better. especially if you're looking scale an exit Gotcha so going online and getting legalzoom because they advertise on. TV is not what I should be doing. No they must have simple answer all right. So handshake deals I like shaking hands. You know and I'm not a politician session and I don't want to be a politician. What's wrong with handshake deals? I I grew up in the south to and you like to be able to do business with people based on their word. I I will just tell you that it doesn't work and especially doesn't work when you're setting up a business you know you and a friend or saying. Hey we've got this great idea. Let's go into business together. Will on fifty fifty and will work well to. It really doesn't matter whether the business goes really well or really poorly or simply in your own The the objectives of the two people change over time. When you don't write down what the deal is memories raise in the law? We call it convenient memory. It just think people things tend to remember things that favor them and they can't remember anything that doesn't so so you're deals need to be in writing your greements at the beginning need to be a writing because a business just like a marriage the day start. Everybody's really happy. But the only thing than regular divorces business divorce it with their documents. It's not only ugly. It's really expense right. Who and one of the other things? I think that people have to be aware of is You know getting contracts and things like that. I've ran into a problem. This just something. I came him cross a while ago as I had a company. Come in and they this when I owned my recording studio and they came in they did five hundred dollars worth of work and they they paid me immediately then. They came in start doing more work than they ran. A bill about five thousand. Didn't pay a penny and I went through the process of okay I will. I'm going to sue them so I went and sued him and we want We one half twenty five hundred dollars and my lawyer cost me me twenty six hundred dollars or cost me a hundred dollars one hundred hours to basically get nothing as you know. What can you do to avoid something like that as you know? They're the smart way to get paid. Is there any other way that we should be looking at stuff. Sure as an accountant I have customers in the construction world. And what happens is I see a lot of handshake deals. Where a contractor hires a sub to go plant trees on her job site? I and everything's fine on day one but on day thirty the trees are dying and the landscape wants to get paid but the contractor says. Look your trees are dying and the whole thing comes down to nothing was in writing so both of them are just stuck. Someone's going to replace the trees and the other one's not getting get paid So the easy thing is write it down. Obviously it's best if you can work with an attorney to put all the league over rich together but but at least have something in writing in regards to what the terms are. What services are going to be provided and what the money exchange is GonNa look like and the time line because to stand point everything looks great upfront but wants money gets involved people turn into monsters and what they they said they were going to do is not what happens? So the next point is something that's near and dear to my heart Bagan the the piggy bank so what what does bacon have to do with running a business perfect so we all want lots of vacant. We all want lots of money money. We want a of the jingles full of money. The problem is a lot of businesses. Do not do a good job of separating their business expenses and money from their personal expenses and money so a lot of times standing I come into companies where it's a cable company and they have a number of Camaros and they're trying to expense Louis Vuitton purses in Gucci clothing clothing and multiple trips to the Carribbean okay. You need to have a clear line between your company's money and your money it you you want to go on those trips and make those purchases bright yourself a check out of the business.