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E-Myth – “Why most small businesses don’t work & what to do about it”

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Edmonton Business Consultant | Entrepreneur Personal Finances Myths – Part 2

How about all of you? Are you guys all back and ready to go? So next up on the roster, there’s boot camp cause we got to get at it. We’re running a little behind Edmonton business consultant. So a little bit more attention and let’s get right to it. So we have Trevor and Karen.

No, not yet. Not yet. I’m not. Yeah. Yes you are. What am I doing?

Trevor and Karen Salmon. So they have been on the front lines like many of you were starting out. They have been on the front lines, they’ve been employees, the electrician, the contractors. Then they proceeded to run many different small businesses and now they are collaborating and working together to work on some marketing initiatives and Edmonton business consultant training to teach you from their mistakes so that we can all move forward because the best lesson learned is from a mistake. So we don’t do it again. Alright, well thank you so much for that introduction. I really appreciate it. But what really happened was Josh made a mistake.


I am not going to be talking about, uh, the next topic here, but Josh, what’s really happening, we’re, me and Kevin are going to talk about making sure you have enough cash for life ensuring you pay these back. I had a conversation and I could swear I had it with Trevor and actually headed with Kevin on Friday. [inaudible] six hours a week. That’s right. Okay. And [inaudible] I’m happy to share my experience where like, okay, we’re going to do, the question is coming later. We have all questions. How can, an Edmonton business consultant, how an employee can schedule his or her calendar manage his or her own business. So this could be like one or two ways. Is it, are you talking like someone here as an employee and wants to run a business on the side? That’s the, that’s the goal, right? Okay. You want to run a quiz?

That’s good. Here’s what you should do. Great work. The job that requires the least amount of intellectual capacity. I’m like, is this a business that you eventually want to transition out of the job to the business full time? Is that the goal? So I’m just now an Edmonton business consultant. You can get a lot of time. I think my old business, yeah. Okay. Is it number one is am I keep my full time jobs? Just one number two question is how, if not, how can I do this? Transitioning from full time job to self employed. Yeah. Okay. So that did do the transition sometimes what you have to look at your own individual financial circumstances. So sprawling associates would started with a $40,000 unsecured line of Credit and I use about $28,000 of it to get it going. That’s all I have. I have a dad who was a CPA.

I didn’t, um, no bio retiring guy. I had zero customers in it. $40,000 line of credit and a hope that it wasn’t going to go back. That’s all I have. But I have $40,000 zero. Right. That’s, that’s really what I had. Um, so you mind you, my life was pretty lean at that time, right? So I didn’t have kids at that time, so there was a lot of things that were off of my plate. So I have to know more about your individual circumstances and how much real estate you have to go with. And it’s, it’ll go one or two ways. Now’s the time to jump. Cause sometimes you’re going to need to jump in. You role really make huge strides until you jump, but sometimes you just need to crawl a little bit before you’re ready to jump, right? And let’s say you do need to keep the job.

A lot of times what you have to do is you have to keep the job that maybe is not the best job, but requires the least amount of decision making power. So every day you only get so many good decisions in you. Uh, and if you burn it on a job that’s really deep, maybe you have one job and you can make $40 an hour at this job, but it requires a significant amount of thought power to, to do this job, right? Maybe there’s another option that’s 20 bucks an hour, but the $20 an hour is completely branded and you can do it before hours and you can sit there building content for your business. And the other four hours, right? You gotta make sure, like what type of job do I have? Right? Some people have the $40 an hour job and they’re so good at it that they’ve been doing it forever, that they can, they have some free time.

Right. And it’s not stressful, but I see a lot of people, I think they reach too far with the job that they want when their goal is to build their business, right? It’s like you’ve got to realize this, this job a means to an ends. And sometimes the answer for a lot of entrepreneurs from an Edmonton business consultant is to, you know, go stamp parking tickets for 50 bucks an hour to get a income that you can, like you just have enough to get by. I’m not saying that’s right for your situation. You get, my gist is you have to be really careful that jaw is not depleting all of your good decisions because some of the jobs are just, you’re all in on it and no matter how much you want it, you’re just beat, right? And it’s your secondary thing and it’ll be a forever goal. So sometimes you might need to downgrade the job to, you know, uh, that you have more time for your, or more intellectual capacity for your side hustle.

That’s how we do it. And then it’s either going to be ridiculously early, ridiculously late, or if you can get like a 0.8 or 0.6 position and you’ve got two full days off that, you know, like, or even one day off a week, like even one day off a week during business hours is huge. Right? So I’d be looking for those big blocks and you’re either really early or really late. And if you can get one day off, like every week, that would be like Golden, right? And sometimes it’s, it’s, some people have to scale down the job. That’s the deal. That’s the advice that I give them is they need, they need easier job. Um, I put this one as it. Good. Good, good question.

Um, so section three good debt is a powerful tool, but bad debt can tell you can kill you. Robert Kiyosaki, author of Rich Dad, poor dad. You Remember Read Rich Dad?

Yup. Yeah. [inaudible] Edmonton business consultant, you’ll actually wrote the text of it. Fair enough.

Karen Lecter, his accountant wrote the text and he takes all the credit for it. He’s a pretty, pretty cool lady. Um, the, uh, Fraser intro suit says that the average Canadian pays 43% of their, their income in taxes, whether it’s tax CPP, EEI, fuel tax, et cetera. So it is the single biggest expense of our life. By comparison, only 37% of the reigning income goes towards basic necessities. 43% on tax, 37% on basic necessities.

No, this disgusted as me. Now, there’s not all, you know, there’s not a lot we can do for that on if you’re an employee income. But the small business rate in Alberta is fantastic. 11%. We’re talking about 11% acts. Edmonton business consultant, with effective tax funding, we have individuals that are making half a million dollars a year paying 20% tax. You know, we talk about, you know, the u s cut corporate tax rates. Um, but the small visit rate, you know, ERT is fantastic. So there’s a lot of things that you don’t, could be done to plan for tax. Um, and, but you know, fighting for tax. I tell people having a corporation, a small business corporation is like owning an airplane. Someone could give me an airplane. Theoretically I could get to Vancouver quicker. But in reality I would crash on the runway cause they have no idea how to fly an airplane.

And then sometimes getting taxane is a lot like that. Um, and the second most common reason for business failure is running out of cash. Now the mistake most people are going to make is they’re going to plan for their business in a vacuum. They’re going to do a business plan without any consideration of their personal financial circumstances. You know, some people can pour a whole bunch of money into their business. Some people, you know, can afford not to take anything out of their business and some people have to take money out of their business or else they can’t pay their mortgage or buy groceries. Um, so you do not start with a business mind. You have to start with a personal financial plan or else the business plan can be completely disconnected. Now, a couple of real quick hit tips. You know, most business owners are going way too far, especially if you’re a solopreneur just starting out on what you actually need and they’re driving themselves nuts thinking they have to learn quickbooks.

There’s things like that. What you need if you’re a solopreneur is you need a separate business and personal account and you need an Edmonton business consultant. You need separate business and personal credit cards. I don’t care what your points are, get separate business and personal credit cards. Um, you know, a, it’s just going to be way quicker to assemble your records and be, it provides legitimacy in the event of an audit. It shows that you actually had a state of mind when it was for a business purchase. Um, you do not want to commingle the business and personal transactions within these accounts. You want to take funds from the corporation in the form of a monthly round number. Shareholder loans. Don’t refer to them as salary or dividends. Someone like me can fix it later. If you haven’t declared on the salary or dividends, at least you haven’t.

Oh. Um, we’ve, we want to make sure that we have the, the most efficient way to get the money out of the corporation. It’s generally a combination of both salary and dividends. So if any of you is getting taxed by, and if you want to know just high level of tax funding is good, nine times out of 10, if it’s all salary or if it’s all dividends, it’s bad tax planning. So if you’re paying yourself with all salary or all dividends, you have bad tax money and probably no one has just taken any time to look at it. Your Edmonton business consultant and you really need to let your accountant figure out the combination of salary and give is, I cannot teach it here. If you come and work for me and you work for me for about three years, full time, 2080 hours a year, I can get pretty close to teaching you how to do it. Um, what that’s people wanna know. Should I do salary? Should you use dividends? It’s an incredibly difficult thing to teach. And anyone that tells you can teach it in a day doesn’t know, but enough about the topic themselves. Um, but the key is separate business accounts that are personal accounts to take money out from the in ground number, uh, forms and have your accountant to declare it. If it’s going to be salary dividends, that’s what you’re gonna need help.

So now what I want you guys to do is, the first thing is we’re going to take a couple minutes here. Um, and we’re going to go through our personal assets. You need to know, you don’t have a good understanding of what your personal assets are. So you’ll see all this section three and it asks us real estate RSB DFSA bank account vehicle other than mortgage, one line of credit, credit card student. Well, a student line of credit, vehicle loans, other loan, once you guys to fill it up. And the Info is generally whoever it is. So it’s, you know, the Royal Bank or it’s the address of the property or it’s the government Alberta student loan. Um, and then the balance. And I want you guys to take a hack at this though, looking at anything. You want to see how comfortable you are with this. Can you get a reasonable approximation or are you completely in the dark and you think it’s wrong? So give it a hat. All right. Out Your basically your personal balance sheet and see how good you think you can do it. This kind of skewed, you guys covered minutes.