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Burst Details

Counting the Money

Automatic TRANSCRIPT

So we're talking about money in this little mini series. And when I started out my first I business back in one thousand nine hundred six. I started I think it was thirty. Five dollars was my total investment and that was for a a mailbox at mailboxes etc.. To rent it for three months and I spent no money my website in a free website. It was the name of my Internet providers slash till day Jay Walker. That was my website back. Then people would go to a website like that. You can get listed at Yahoo like that. I didn't have a domain name didn't have web hosting here's a free email list. That's aw didn't spend anything and after about three months and the business actually. It seemed like things. We're going to start going. I've made a few dollars so I bought a domain name back. Then it cost seventy dollars to buy a domain name true story and then I got web-hosting because forty dollars a month to get web-hosting so some things have gotten a lot cheaper I got an email list host. I can't remember if that was like ten or twenty bucks a month so I was spending fifty sixty dollars a month for or at my business and I was able to build a business up because purely via email and and you know there's minimal hosting and and build a business up so we're making two hundred thousand dollars. which was pretty amazing? Is the only cost. The cost didn't go up at all. He stated that whatever fifty sixty dollars a month and they have merchant fees so when we made credit card sales we'd pay whatever three percent so basically the our profitability was was really the high was like merge ninety six percent or ninety five percent. And when I did that the there was no account him business because almost every dollar was profit so I didn't have to account for anything basically at the end of each year I would do a total of all my expenses and then I would subtract that and it was a glorious time. It was very very profitable markets. Were very much smaller. Back than the largest of our kinds of businesses back then was a few hundred thousand dollars a year so there's less people online people buying but things were simpler. Emergency were generally a lot higher so that was all great. Things have changed since then. It's more expensive to business. It's most of us. are spending money to pull in. Traffic and accounting has gotten a lot more important because margins drought businesses are much bigger much much much bigger than they were back then market or bigger more people are buying lying so those are all great news the ability to grow a large business and do it quickly it is way beyond what it ever was before but it also means margins have come down so you have to. You have to account for things. Accounting is important far more important than when I started and holy cow. Do we have a lot of noise going on in the background. But I'm just going to plow how long you said what you do. So what I'm saying is most entrepreneurs I know accounting is not there. I love most people people that are starting their business out especially online business. They're not experienced with accounting or finance. It's not what they love. In fact it's the last thing they wanted to actually legalzoom. He goes the last thing they want to do. In accounting's the second to last thing but it's important it's important because we're all spending mortgage acquire the customer merging dropping. Business is great. That's fantastic but as margin strapped risk goes up. And so you have to stay on top of your county so even if you're just starting out you need to start. You need to think about getting a bookkeeper earlier rather than later. You don't have to hire a full time person all kinds of people. You can hire part time but the bookkeeping and the accounting is a port. Count dollars pay attention knowledge. You don't want to be the person that has great month in sales in the month. Figure out that you're actually having money you can't make payroll. You can't pay your bills. You don't want to be that person