BCS: 139 | How Companies Pay Little To No Tax + What’s On Karl’s Mind
Business Coaching Secrets with Karl Bryan
BCS 139: In this episode, Karl answers questions about:
– How companies pay little to no tax?
– What’s on Karl’s mind?
Karl Bryan helps business coaches get clients. Period.
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EPISODE TRANSCRIPTION –
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SFC Episode 139
[00:00:00] Karl: Welcome to business coaching secrets with Karl Bryan. If you wanna attract new high end coaching clients, fill live events and build a wildly profitable coaching practice where business owners pay, stay and refer. You’ve come to the right place in this podcast, you should learn to get your tax filling done correctly. Karl provides his keys to the kingdom for finding and signing. High paying clients and building the coaching business of your dreams. Here we go.
[00:00:40] Christian: Ladies and gentlemen, boys and girls coaches around the world. Welcome to another episode of business coaching secrets. See boy, road dog here with none other than the man, the four and a half foot legend. the king himself. Karl Bryan.
[00:00:59] Karl: There you go. Are you on road dog? What’s happening? What’s happening. You doing great.
[00:01:02] Christian: Well, what’s happening is I was reading through your jokes this week. and I’m not gonna lie folks. I do not need hate mail from mothers against drunk driving. So I’m gonna go ahead and omit the joke from Karl’s drunk. We’re gonna go ahead and we’re just gonna just slide along from that one, but what’s going on with you, bud? What’s is happening in the legendary life of KB?
[00:01:31] Karl: What is happening? Not much holidays here. Trying not to time stamp these bad boys, but there’s snow outside and the holidays are here. My sciatic nerve, I, as you know, Road Dog my sciatic nerve is getting better. I have had a bugger of a time. I don’t know, six weeks with this bugger, but anyway, so I think it’s gonna be good. I think it’s gonna be good. It’s feeling much better today. Overdoing it. Maybe with the crazy amount of stretching I’m doing and whatnot, but anyways, doing good man. Doing good.
[00:02:01] Christian: What’s interesting because when, when your wife refers to her sciatic nurse, she actually just calls it Karl like it’s you know what I mean? Like you are her pain in the ass, so that’s good. That’s good. And I’m glad you guys are working through that. Yeah, it’s good. It’s cold as all can be. This is the coldest. I’ve seen it here locally, where we are in the five years I’ve lived here. Holy smokes dude. Like this is insane. Yeah. It’s, it’s it’s time to get on an old airplane and get out a Dodge as they say, but yeah, next level, next level.
And I, if it’s one thing I know you are not designed for the cold
[00:02:34] Karl: no, I am not. Sunshine, baby. That’s all right, though. That’s all right. Well, we will pound through see what the future
[00:02:41] Christian: holds. Well, this is it. You know, like if it’s one thing I know about you and your neighborhood with private helicopter pads and everything else that your neighbors had, like was it was the, was the limousine warmed up before you got into it on your way to school?
Or how did that work?
[00:02:55] Karl: Yeah. Right. You wish you wish.
[00:02:59] Christian: No, I don’t. I’m sure that you did growing up because that would’ve been like baller 1 0 1 rather. Carl rolling up on his BMX bike, wearing a rad t-shirt.
[00:03:09] Karl: Yeah, that was much more like that. But anyways, anyway. All right, let me let me,
[00:03:14] Christian: let me, first off you mentioned it’s the holidays.
I love this one. Mary exhausted. Having just gotten Jesus to sleep is approached by young men who thinks to himself, you know what this girl needs right now is a drum solo. I love that one. That’s so good. That little drummer boy. I swear like how Joseph didn’t beat him down and be like, listen, we just got this kid sleep.
My God. My 23 year old stepdaughter brought her boyfriend over for Christmas gathering. I asked him to stand at the end of the pitch so I can out when she dumps.
[00:03:49] Karl: Dude.
[00:03:53] Christian: Oh, you love that wind shoots. That’s right. You know what? The sad part is pretty, pretty true. But my favorite one was when you said I got a fancy new sports watch after taking the time to read up about it, I can comfortably tell you none of the scenarios in which I would require a watch that works 200 meters underwater are situations in which my watch still working would be a primary concern.
This is true because the only time that you’re gonna be 200 meters is when your seat as a seat cushion as a floating device, isn’t working. That’s pretty much the way I view that, but anywho, Hey, listen, it’s the holidays. And I am just wondering, this is, oh my God. I can’t. So I’m gonna apologize folks, because we all know rabbit hole, Mr.Rabbit hole himself. Mm-hmm. But I wanted to ask you just randomly something that, you know, interesting in that super crazy mind of yours that you’ve been thinking about over the holidays. Cuz I, you know, there’s a lot of different news out there and a lot of things going on and when Carl isn’t working 24 7, I don’t know what goes through his mind besides world juniors hockey, but gimme something interesting.
That’s been going through your. Give
[00:05:07] Karl: me that’s the que you just a random question? Yeah. Just gimme something
[00:05:10] Christian: random. Let’s just write off, write just random city. This is how we’re operating right now. Like no one’s giving over the holidays.
[00:05:19] Karl: I can just start listening to what you’re asking me. Okay.
What would I say here? What am I thinking? Well, I’ll tell you. So as I sit here, as you know, I got post-it notes all over my computer. One of them, which I spend in. Inordinate amount of time that a word. So basically got five words on it. Friction integration, decentralized utility and data. And so these are things that I’m, you know, as we, you know, we scale and, and that sort of thing.
So maybe I look friction, I’m thinking about friction. So a lot of companies like HubSpot, as an example to multi-billion dollar company, they don’t have a salesperson. Right? So like Facebook, again, you’re. It’s frictionless. The experience in Facebook is ridiculously frictionless. So think of no human beings as friction, think of human beings as friction, and then no human beings as frictionless.
So with our software actually another what is Bezo says that raving fans don’t sell, don’t send support tickets, right? So like bottom line is that trying to find ways to make it so that our software is totally frictionless and. A great user experience, right? So that’s friction integration.
The reason that word’s on there is just thinking of different ways. Like if you think about your, your your iPhone, the, the weather, Gmail, your stocks, whatever the apps are into each of the, the apps are integrated into your phone. So it’s a great user experience, or imagine you were playing a video game and you’re racing cars, and you wanted to get turbo for your car.
If you needed to phone a one 800 line. In order to pay and to get, you know, X, Y, Z, you know what I mean? The, you know, the turbo in your car that would be ridiculous integration is that you click a button, the payment processor is built into it. You click a button, they got your credit card. Bingo, Bango, bongo, boom, you pay.
So think integration. So just different ways that we can integrate, you know, we want our software to be integrated. So we think of something new and I go, how do I integrate this? Decentralized, we’ve talked about this in the past. Super. I you’re trying to build a big company decentralizing. It will be important.
The metaphor of the example I’ll give you is the casino. Back in the day, the casino would have. One set of books, right? So it’s got the CA or the casino, the restaurant, the retail store the gift shop, you know, it’s got all these different stores and, and whatnot, and they would all be like, you know, at the end of the month they would do the books and then they would know the end of the month, the end of the quarter.
And then they have a look at the revenues. Right? Well, Decentralized is basically that the restaurant has a set of books and a manager, the retail store has a manager and a set of books and the gift shop has a manager and a set of books. So it’s totally decentralized. Right. So as a business coach, if you were selling social media, You might want to think about decentralizing, your social media aspect of your business, the same way that when you go to a car, a car, lot’s a good one.
You go to the car lot, and then they sell you the car. And then they have a service department and they make a lot more money through the service department than they do through selling the cars. Right. So that’s decentralized and that’s the reason that’s there. Very important. If you wanna build a big company utility.
That word to me, it’s just, you know, the Facebook is Facebook because it’s utility. It is so freaking good. It’s unbelievable. Like if you, you set up like a group on it, you know, the functionality for the group is just next level. It’s not ideal because they own your database and then they can sell advertising to all your people and they can change the rules.
So. That component of it isn’t the far from ideal, but the utility of Facebook is just light. So the better, you know, the better that profit acceleration software works. The better why, why I created group coaching software was utility in that I wanted profit acceleration was gonna find somebody a hundred grand and 45 minutes without spending a dollar, a marketing or advertising.
Well, now the business owner needs to do something right. Well, so the group coaching component perfectly marries up with profit acceleration software. And then data, data, just, you know, in fact, I literally had a call this morning with one of our clients he’s a heavyweight, you know, does like $200,000 coaching programs and he’s been using our software.
And then what he is doing is he’s exporting the data that he’s collecting from his clients. He’s importing it into artificial intelligence. Into ne I can’t remember the name, Neo something or other, but some, you know, funky, you know artificial intelligence software to find patterns and the words that they’re using in the numbers that they’ve got, the industries that they’re in, the cities that they’re in, the state that they’re in seasonality, you know, again, it’s gonna, things are gonna be different in winter than they are in summer, et cetera.
So anyway, so those row dog, those words Those are top of mind, you know, actually, you know what, some, maybe just one last one here. What am I thinking about tri the, the law of triviality? I’ve been going really deep on this kind of thing. Like what I do, I read a book. Okay. And then I write about it as a way to teach myself, and then I always try to implement as much as I can cuz that’s the highest level of learning.
Right. Actually implementing, but I’ll I’ll, you know, if you read my daily emails, I’ll read a book and then what I’m doing is I’m paraphrasing the things that I’ve, I’ve learned from the book. Right. Good, bad and different. That’s that’s my process. So If you wanna know, like why so many businesses fail and why government seem to be ridiculously ineffective and the money that they waste is literally insane.
The law of triviality is a huge reason why, so it’s, it’s common to give a disproportionate amount of importance, okay. To a trivial issue. At the expense of something more complex and layman’s terms, you’re gonna do something easy before you’re gonna do something hard. Right. And especially, you know, not only at the, at the expense of something more complex, but something more important, right?
So the government will avoid bottleneck traffic issues, right. And bringing it in civil civil engineers that are totally stopping the city from growing and creating all kinds of bottlenecks and whatnot. Or they’ll another issue is public transport. Okay. They’ll avoid that. But instead they spend an or ornate amount of time on planting flowers at the local park or building a bike path.
Right. Or the local school spends an insane amount of time on the school yearbook and then totally disregard updating the, you know, the, the curriculum, which is probably outdated at best right. Premise. So you go, okay, what did I just say? Spend time on solving problems, right? The yearbook and the bike path are not a problem.
The curriculum and the traffic issues. Are problems, but they’re significantly more complex, right? So like similarly and why I’m thinking about it and what it means to my software. Like the business coach and the business owner will spend as a relationship business coach and business owner, they spend an incredible amount of time solving specific client issues.
Rather than the real and important issues, like think like what problem could you solve that would make the other problems redundant or a number of problems redundant, right. Solve that problem. So you gotta go to, you know, solving problems and, you know, it’s hard, it’s worth it. But you know, in a nutshell the law of triviality.
I, I, I think that that’s costing a lot of business owners and it’s a lot of client coach relationships, road, dog. It’s costing them success because they’re spending all this time on the cool, sexy thing. And they’re not going to,
you I could probably go on, but maybe there’s a, but the five, the, you know, the friction integration, decentralized utility and data are definitely things that are very top of mind for me right now. And, and we’ll be open that.
And the post-it note has pride of place right there. So I, I can’t really look at my computer without seeing it. And that’s what I’m doing. Shoots. What do you think. Well,
[00:13:18] Christian: so I got a question for you because speaking of top of mind for me what’s top of mind was the Twitter exchange between Elon Musk and Elizabeth Warren.
Did you see that?
[00:13:27] Karl: Yeah, yeah. Right. Remind me, I saw it. What was the deal? Oh, it was
[00:13:32] Christian: like her basically saying that he’s a freeloader and not, you know,
[00:13:38] Karl: oh, I wrote, I wrote a on Facebook. How does she not get canceled for that? Like how can she call Elon Musk a freeloader? Like, how can she publicly do that?
[00:13:48] Christian: right. It’s, it’s, it’s pretty incredible, right? Considering he’s paying the most amount of tax that any individual
[00:13:54] Karl: billion, 21 billion, gosh. Oh man. But
[00:14:00] Christian: it got it got me thinking because you you’ve, you’ve talked about this before and just when it comes to talk like. Because you hear about this, right?
So again, it’s a perfect example. Well, he should be paying more. Well, okay. So how do companies pay little to no tax ethically? Like is, you’ve talked about that before, haven’t you like, can you, can you walk us down
[00:14:22] Karl: that a little bit? Oh yeah. Nice, nice little segue there. Shoots. So look, before I talk about this, I would encourage it.
Like what’s just saying I always say like, say this right old money equals never sell. So thinking about that as an overarching strategy, like the number one tax in your life, my life everybody’s life is gonna be tax and it’s by a lot. Right. So if you and you live in California You know, it’s gonna be significantly higher than if you live elsewhere.
Right. And most people will think that the number one tax is mortgages in housing. Right. So as a framework, look, you pay tax when you sell. Right? So if you don’t sell, in other words, you follow, we, we talked about this semi to death, but I, I can’t begin to tell you how it, if you wanna be wealthy for a long time, you don’t wanna be rich for a week.
You wanna be rich for the rest of your, like for your lifetime Warren buffet, Ray Dalio, bill gates, Jeff Bezos list them. Right. Don’t pay tax because you know, they, they basically accumulate wealth over a, you know, over. They never sell. Right? So it’s over a significant period of time. It takes patience. So nobody wants to do it.
But look, when lowering your tax, let’s not talk about Warren buffet and Ray Dalio, right? Little bit high level for our local chiropractor. So like when lowering your tax position, I would encourage everybody to be thinking about a thousand, you know, a thousand small cuts kind of thing, as opposed to like one magic bullet.
Think of a lot of little, little strategies, right. And maybe a place to start. I, I wrote an article some time ago now. I’m just writing a new email sequence from something I’m doing, but anyway, so it’s one of them. If you Google my name, Carl Bryan, how Google pays zero tax, you’ll see something that you might find interesting, because again, I’ll tell you that like how.
Like they did 13 billion of revenue and then they paid zero tax at almost Amazon. Right. And if that’s not a high enough level of insanity for you they get 120 something million and that year is a rebate. From the government. So like a refund from the government after doing 13 billion of revenue and paying no tax.
Right. And then that same year they had 13 billion of revenue. They had losses of six. I can’t remember, but 600 million, I’m gonna say, but like hundreds and hundreds of millions. Right. They look so they do it and it’s really look, it’s a, so you think to yourself, how, why, like how does this work?
Right. So it’s a feedback loop. And this is not just for Amazon, but it’s apple, it’s Ferrari, it’s Rolex. It’s the biggest companies in the world. They use this, and this is why they’re the biggest companies in the world because they’re the most profitable and they can afford to spend, you know, the most on R and D et cetera.
Right. So here’s what they do. Number ones of you’d wanna pay very little tax. And you’re Amazon. What do you do? They spend money on research and development? Right. So Amazon spent, I don’t know what it is, but you know, 10, 20 billion that year creating and testing new products and services. Right? So research and development is number one, number two, property, plant and equipment.
Right. So it’s what they do is they fed back about 50 billion here, investing in their own infrastructure and their own land and their own machinery et cetera, you know, so their own property, plant and equipment, they fed money back and here’s the kicker stock based compensation compensation, right?
Rather than pay in cash, they pay their staff bonuses and shares and stock options. Right. And it’s therefore they write off the shares as a business expense. And then here’s the kicker kicker, the higher, the like higher the stock goes in this instance, Amazon or whatever company you want to use. The higher Amazon stock price goes.
The more they can write off as an expense, you talk about wealth hacks on freaking steroids. Like Amazon saved over a billion dollars in tax that year. And the, and. Lesson is that Bezos fed operations rather than his own pocket. Right. But again, we’re not Amazon and we’re not dealing with Amazon. We got the local chiropractor.
Right. So how does the local chiropractor go from 100,000 to 250,000? Right. Well, again, you know, in, in, in, you know, wealth and ultimately, you know, success well, here’s the problem. They get that bump in pay, right? So let’s say they have $75,000 of profit this year, and then they have $150,000 of profit the following year.
What does the business owner do? What does the chiropractor do? He buys a boat and starts flying first class to feed his ego. Right. He wonders why he is not getting anywhere with amazing capital allocation strategy like that. So. Earn a hundred and live on 60, earn 200 and live on 80. Right. And then you have 120 when you making 200.
And you’re living on 80, you have 120 to feed back into the system. Right. And then what would an effective capital allocation strategy? And that instance look like. Pay by staff. How many people do you meet Rob Doug, where it’s like, they don’t have enough leads. And then you say, well, how many people do you have on the phone?
How many people do you got sending private messages? How many people do you have knocking on doors? How many people do you have running Facebook ad campaigns and the answer’s none. None and none. Right? So like by staff, Instead of buying Bitcoin spends $50,000 in 12 months for a staff member to do what you tell them to do and watch what happens.
You’ll take 50 and turn it into, if you’re the worst operator in the world, you’ll take 50 and turn it into a hundred. And by the way, you take 50 and it’s not working at the six month. Mark you’ve lit $25,000 on fire and fire them. If you know what you’re doing and you have a growing business and you’re solving problems that will never happen, that this won’t happen.
Right. But buy a staff member, buy some advertising, build new products, create new services join groups, like what we’ve got. Right. And, you know, pay monthly fees. And, but here’s the problem, right? Is that the first shot, like the first sta staff member might not work, right? The first ad campaign might not work the new product.
It’s not as popular as they, they thought it would’ve been. And then they see it as failure. Right? The number of times that I’ve personally swung and missed in that instance, you got no idea. But again, Amazon brought out the fire phone. Facebook is known for just, you know, screwing things, you know, new projects up, but they’re okay with it.
So is Google. It’s like not everything is designed to work and you get better. Right. So you don’t stop R and D because something flops cuz something doesn’t work and remember like you’re remembered in life for, for what you refuse to give up on. Think about that. Right. So anyways So row Doug that’s, there’s some little wins there.
But thinking about it as a thousand cuts, as opposed to like one massive drop the mic strategy, that’s important as a framework.
[00:21:05] Christian: Got it. Like, and again, I love this topic, especially, you know, we’ve made it clear, like this is the end of the year. There’s gonna be a lot of people looking to do some, you know, tax planning or whatever.
So like, aside from that, like, are there any, any other tips for business owners looking to save some tax? Maybe not the big corporate type stuff, but yeah. You know, that that coaches can take to their, their clients.
[00:21:29] Karl: Yeah, get more granular. Look, don’t forget the, okay. Get more granular, but don’t remember, it’s always, where am I at?
Like what’s the little red arrow, right? You are here and then what do you want? And then trying to get there old money equals never sell. So thinking about that, and you’re not all, not, everybody’s gonna be in a position to be able to do that, but if you don’t know where you’re going, any road will get you.
Right. But all the greats bought and held as opposed to bought and sold like 98% of the population buy and sell. And in fact, they don’t even buy and sell. They, they buy high and then sell low. Right. Like, and okay. Where do you live if you live in California versus Florida? I said that earlier. You’re gonna be paying significantly more tax in California than you are Florida.
And then I think you’ll be less again in Texas, right? So thinking about where you live and you wanna be doing some research on the states in some cases, you know, the, the price of property, et cetera, but you can, you can live. You know, significantly less expensive, even thinking is significantly less expensive.
Like we were just in Mexico, not long ago. Like what about the country you live in? Right. It’s not always possible to be able to pick up and move, but to live in Mexico on pesos and earn us dollars, you get a rockstar lifestyle for pennies on the dollar, you know, it’s very smart and more possible than people might realize.
Right. They make it bigger than it is. You could always turn around and come back. Right. Like Here’s like, okay, so getting granular you make money when you buy, not when you sell, right. So if you buy a piece of real estate, so let’s say that you’re gonna gonna buy an office building or something along those lines, right.
Or a house for $500,000. Like it’s worth that, but you get it for 350 grand, you know, maybe because you’re a cash buyer or, you know, something, they don’t know, you know, that a boom is coming. You know how to rezone that piece of property. And then they’re not willing to go stand in line at the local city and fill out the paperwork.
Paperwork is very profitable by the way. Think about that guys. Or, you know, you buy a baseball card. We get a mutual bud road dog, one of my best buds, Mike, and you know, he does baseball cards, like when he can get a baseball card for 500 and it’s worth 5,000. Right. Because they don’t, you know, know they don’t care.
They just want to get it out of the basement. Right. Or maybe you buy an older muscle car for 30 grand and it’s really worth 40 and continues to, to appreciate over time. Okay. Here’s the kicker. You pay tax on what you buy it for rather than what it’s really worth. Don’t minimize the importance of what I just said.
You pay tax on what you buy it for rather than what it’s worth. Right? So if you buy something worth a thousand and you get it, where for 333, you tripled your money. As soon as you take possession and you only pay tax on 333. Right? So moral of that is that rich people spend time learning to buy well, learning how to negotiate at a high level and super importantly, Recognize undervalued assets.
I mean, Warren buffet, that is the view just took Warren Buffet’s learnings and teachings and put it in three words, recognize undervalued assets is really what he does, but we say it. And I think that people here, you know, recognize undervalued asset and it feels like it’s above them. May I don’t know above, you know what I mean?
Like, it doesn’t feel like something that they’re in a business to doing and you absolutely are. Right. And then, and by the way, those assets appreciate over. Well, when something goes from 1000 to 2000, you don’t pay tax on the appreciation. You now have an asset worth a thousand, then you could borrow money off of that appreciation tax free right provider that appreciates faster than the interest you’d pay on the money.
You’re getting free money. So an example, right? You buy a house for 350,000. And it’s now worth 450,000. You either bought it really, really well. Cuz you knew something they didn’t know or you bought right at the beginning. Best. The great time to buy real estate is during a boom cause you buy something worth 350,000.
It could be worth 450,000 in less than six months. Right? Or just over time, maybe you held onto it for five years, 10 years, right? Well, you go to the bank and you can borrow money tax free against the hundred thousand dollars capital gains or the equity. Right? So three, you bought it for three 50 and it’s worth four 50.
There’s a hundred thousand dollars gap there of equity. You can go to the bank and borrow that hundred thousand dollars tax free. So what most people do is they sell the house the $350,000 house, or I guess it’s. Confuse everybody, you bought it for three 50. It’s worth four 50. They sell it for four 50 to get their money.
Why sell it right. The rich remember old money equals never sell, go to the bank, get it. Reappraised and you can pull the, like the majority of that a hundred thousand dollars out is a loan and then not pay tax, right. Or, you know, buy a piece of real estate, like an office, and then add here’s a hack, add a bathroom and a bedroom, always.
Right. You add, or, you know, an, an, an office, whatever, like instead of a bedroom, it would be an office. Office room and office, right? But always do that with real estate. You add a bedroom and a, and a, and a bathroom. You go back to the bank, get it reappraised immediately. And you at a minimum, you’ll get your deposit back, right.
Probably tax free. By the way, bottom line. If your client buys a product for a hundred, that’s actually worth 200. They instantly doubled their money, but paid no tax on the increase, they only pay tax. On the, you know, the value exchanged, we’ll say, right. And importantly, if understanding the importance of loans here, they’re tax free money.
And again, most business owners they’re most families they’re just going, you know, and trying to make as much money as possible. They’re not thinking about how to manage money. They’re not thinking about, you know, looking at undervalued assets. They’re not going to like garage, like Gary beaner. Chuck talks about going to garage sales all the time.
This is part of why. Right. So anyways, actually here’s a you talk about going granular here. Most people probably haven’t heard of what’s called the Augusta rule. And it’s something you might wanna have a look, you just go to your accountant and ask him, but basically you can rent your house out for 14 days a year without claiming it as.
Okay, so you can legally use your house. Like what are you gonna use it for, for employ, you know, like you’re gonna have meetings or you’re gonna record a podcast, you’re gonna record some videos. You’re gonna get your clients together. Right. So, and you gotta make sure this is at fair market value, but you can rent it out to your house or sorry to your business for say $2,000 a day.
And then you’d write yourself a check. What’s that to $28,000, boom tax free personally, and it’s deduction deduction for your business. Right? So, and by the way, you, you charged 5k, but you gotta be fair market value. Otherwise you’re gonna get pulled up. So again, speak to your accountant, but five grand would be a $70,000 check to yourself, right.
And a write off for your company. So, and if you have a smaller house, it might be $500 a day, which again, would be. Seven grand, I guess a thousand, you know, is gonna be 14,000, ask your account. They’ll be able to guide you, but that there, that what I just said could make you and could make your, your coaching clients just provide an insane write off that you’ve been totally ignoring.
And then the question is, why is your accountant not telling you this stuff? Right. And. Because your accountants are not in the, like they’re in, like in a lot of ways, a bad accountant works for the government and charges you that’s, that’s what I want you to think of. Right. So anyway, so thinking about that, the Augusta rule, you can just look it up and speak to your, your accountant.
Here’s maybe one more go granular employee of the month. McDonald’s has employee of the. Guess what road dog you can. I can, and everybody listening can and all your coaching clients can, but don’t go. The mistake people make is they forget. And then they buy 12 things in December, you know, and you know what I mean?
That’s you gotta be a little bit, you wanna be smart about this stuff and it also has to be a fair number according to your revenues. So go buy a $30,000 car as employee of the month when you got $500,000. You know, of a, of, you know, gross revenues with your business. Right. I think things like maybe fridge dishwasher on the bigger side, maybe a washing machine, and then think, you know, a blender and, you know, things worth hundreds of dollars.
Right. But, but do it, but buy one in January one in February, one in March and again, not tax advice and not account, I’m not an accountant. Don’t pretend to be. So just go and ask your local accountant, but I can tell you that these things. You know, can save you and insane. Remember, everybody’s trying to work out how to make a little bit more, make a little bit more like, you know, mom signs up for the MLM and sells lingerie in the kitchen.
Why to make the family an extra $10,000. Well, understanding this can, and they have an entrepreneurial. The MLM mom tends to live in an entrepreneurial kind of family. Right? So instead of selling lingerie in the kitchen, do this stuff, spend some time here. You know, speaking a mom, here’s one little, like, look, here’s another one, right.
Go to your personal expenses. And where do you spend a lot? And my hesitation is in that this one you know, just be a little bit careful here, but you absolutely get this past the, the gatekeeper. So let’s say you spend a lot of money on beer. You spend a lot of money on red wine. You spend a lot of money eating out.
You spend a lot of money on vacations, right? So. You go and buy road dogs, vacation reviews.com, and then you buy road dogs, dining out reviews.com. And what do we say? Beard road dogs, beer review. You’d beGood@that.com. And then what you do is you set up a review website and every time you go on vacation, you write a review on it.
Okay. And by the way, get somebody in the Philippines to do it for you. Cause it’s not really all that important that it’s all that accurate. And then when your clients say pays you a thousand dollars, take 900, put it into your bank account and then take a hundred and make it, and then take their logo and put it on your review website and call it advertising.
And now they’re paying you a hundred dollars of that 1000 towards advertising for your website. Right. And then. Part of the, and then you do it for beer and you do it for wine and you do it for eating out and you just saved yourself a whole lot of tax. And you did it by going straight to your credit card statements and seeing where you’re spending the most money.
Your clients are spending the most money and building websites, and then around that, but again, not accounting or taxed by speak to your accountant and see what they think. And by the way, sometimes, so somebody I know is listening to this going, oh my gosh, this is the greatest tax hack of all time. This is the greatest idea.
One of the things I’d be thinking about is the money that this is gonna save you in tax, right? Like the 20 to 30% would that time and energy be better, spent building a new product, expanding your existing, you know, babysitting a high end client. You know what I mean? Like take, you’ve only got so much focus and let’s say, you know, success is yes.
And, or growth is yes. And success is. Do you want a big company or do you want a stupidly profitable company? So just thinking about that. So, so that is another thing and this kind of stuff that I covered in my accounting 1 0 1 for business coaches’ books. So there you go. Road, dog, there’s some hacks hacks.
What do you think of those?
[00:33:01] Christian: Well, I find it interesting that your default MLM is selling lingerie in the kitchen.
[00:33:08] Karl: like, there’s a lot of
[00:33:09] Christian: shakes and, and exercise. And the one that you pull out is lingerie in the kitchen. Oh man. That’s, that’s a thing, but like that is something else. Okay. Well, there, there, there you are folks, but, and, but it is such an important topic, right? Like people. Aren’t I guess just the smartest when it comes to where they’re allocating their, their, their cash.
Now, speaking of another investment, because we actually have a question came in and, and I, I, I know exactly, I know exactly what you’re gonna say here, but the question was, I’m a semi established coach thinking of getting an MBA. Guess I’m gonna know the answer, but do you think it’ll lend credibility?
Well, I know what it will do. It’ll give you a write. And that’s probably my opinion. The only thing you’re gonna get out of that, but what do you, what do you, what do you
[00:33:56] Karl: say about that? Did they actually write that guessing? I know the answer. Did they write that? Yes. Guessing I
[00:34:01] Christian: know the dude we’re pretty ruthless when it comes to designations and all this other stuff.
So I, I, I’m pretty sure that yeah, we’re as transparent as you get in our beliefs, in our strongholds
[00:34:13] Karl: on that. There we go. Agreed. Yeah. Look. Rhoda look
[00:34:17] Christian: you’re right. Like, was that your, was that your attempt at like a, a Scottish accent? There was that did I, that
[00:34:25] Karl: you noticed the voice, the voice isn’t so good today.
Is it what’s going on here? Anyways. All right. So look, RO dog, wrong question. You, you gotta be thinking like, what is the goal? You know, again, MBAs are often working for minimum wage. You know, people don’t pay for what, you know, they pay for what you do, right? So there’s, you know, in doing an MBA PhD, sometimes what you do is you, like, when you put doc, I’ve said this for a long time, if you put Dr.
It’s Dr. Dave Smith on your website. One of the most important things you can do is build rapport. People buy off people. They like, and people like people like themselves. So when they go to your website and they see Dr. Dave Smith, they immediately go this guy’s or this gal that’s, you know, Susie Smith is super smart.
And it sure it worked for him or her, but they’ve got a PhD are three times as intelligent as I will ever be. So it works for them. It doesn’t work for me. So if you’ve ever seen a professional speaker, you know, think of a Tony Robbins, one of the first things that he’ll do is tear himself down, right.
Brings himself down as opposed to up. Right. So. So by doing so by sometimes, you know, you’re doing the MBA, cuz a lot of the time what we’re doing is we’re like, oh my gosh, I’m gonna put MBA in my signature and that’s gonna, it’s gonna get me, you know, all kinds of miles from my consulting. And that often is not the case.
It’s the opposite. Because again, you break, you accidentally break rapport and don’t realize it. So what I tell our clients to do who are PhDs, but you’ve also worked very hard for it. And to call, you know, call yourself doctor, you know what, high five. And if you wanna show that off, you know, God bless you go for it.
Right. But, but what I would encourage, if the goal is to make money and to get a lot of clients, I would keep that news to myself and let them know that during the sales process and it’ll have way more impact in a positive, excellent way. They’re like, wow. This, guy’s got a PhD and like, he’s not even telling anybody he’s not running around there, like a doctor.
Right. So, so anyways and would you be better rather than, I guess assume it’s gonna take you four years to get it right. Would you be better to find a problem and spend, you know, the two to four years, that’s gonna take you to get the. You know, to get the MBA designation would you be better finding a problem and then learning how to solve it over those four years?
Where, how would you end up in a stronger position? And like I’ve, we’ve said on the podcast at different times, you know, like again, like before I went and sent my daughter to business school, I I’d spend 50 grand buying her a cafe and let her. And if she ran it into the grand, I’d be lighting 50 grand on fire, but you know what the lessons that she would learn, and it’s not like it’s just gonna go belly up in day three, right.
It’s gonna be a one to three year commitment and what, you know, what she would learn you know, behind the counter and servicing the clients and, you know, managing the books and doing reconciliation and managing staff and hiring staff and firing staff, et cetera. Just those life lessons are just worth it.
Times a million. So, and again, you can become a, like my daughter, she could become a borderline expert in cafes in like 90 days of intense, you know, learning. I mean, I wouldn’t throw her to the wolves and just say, Hey, good luck, go learn it. Like the thing is, people look for a business coach once they get into trouble.
You ever notice that you go looking for help once there’s a challenge, the same way that you go to the doctor when you’re sick. Pretty good idea to go to the doctor when you’re not sick to say, look, could I, could you have a look at my, you know, my cholesterol? You know, my blood pressure, et cetera, while you’re doing good and then manage that as opposed to go when you’re not feeling well, this is when you can get into a little bit of trouble, right?
So doing education before they start would make sense, but you know, you just, you, you gotta be committed times 10 and it’s always don’t do your best to do what it takes. And when I’m talking about there is, you know, becoming an expert in 90 days, but you know, being obsessed is a superpower. And something I, I don’t know, verse, you know, as in become obsessed with solving a problem as opposed to be obsessed with getting an MBA, that’s gonna cost you X.
And I don’t think anybody really cares. So that’s my, but you know what? I’ve been wrong before and for you, maybe it’s something you really need. Right. So, but look, we’re gonna assume like this. Business coach, right listening to us it’s business coach. So if I was looking to Jack it up and then you came to me and said, look, I’m looking at the end of the day.
My goal is to be wealthy long term. And my goal is to make a great income, say 250 grand while only having to work, you know, 40 hours, 40 to 50 hours a week, but not doing the 70 to 80. I’m not really interested in that. I’d be willing to do that for a short period of time, but ultimately I wanna be able to make 250 grand working 40 to 50 hours a week calling my own shots.
Having a holiday when I want. And you know, not having a boss to tell me what to do and planes, trains, automobiles, and traffic jams and parking in the city is not something, you know, commuting to and is something that I don’t. Right. So would say this to you. Here’s how you crush it as a business coach.
Right? Just like solving a problem is where I’m going. Like pick a niche, right? Mobile service based business owners in Kona. Right. When you’re thinking about your niche, think of these three words, experience, expertise, and passion, what you experienced. What’s your expertise in, and then what’s your passion passions.
Number three, intentionally, every billionaire will tell you to do what you love and you’ll never have to work a day in your life. problem is really bad advice for most people, because what you’re passionate about once you start doing is an occupation. You hate it really quickly. I just Don a hockey rink and I love hockey.
And let me tell you, I was sick to freaking death of putting on those skates and walking into that joint, for sure. So anyway, so passion, but what you should do. So if you say to me, okay, that’s the problem? What’s the solution, instead of doing what you love, do what you’re good at. Do you wanna make a ton of money?
Do things that you’re good at? Right’s the same as an athlete, you know, like I played a lot of hockey in my day. I’m not a big guy. And defense was just defense is for big bruising guys, generally. Right. Protecting the goalie and running people over. So I may love defense, but I’m no bloody good at it. So it didn’t, it wouldn’t have made sense for me to go and play defense.
You know what I mean? So, so do, but I, but I loved it and I’m like, go my gosh, I’m gonna be the greatest defenseman ever. And maybe I could push through, but the law of averages do play in and Do things that you’re good at, right. Same with sports, you know, like I’ve got an eight year old daughter and you know, she’s not the biggest kid in the world.
And like, you know, playing tennis. If she loved tennis, I would take her to play tennis every day. But if she asked me, dad, what’s the best, you know, sport for me, you know, I’m going, you know, she does gymnastics. She does trampoline. She does park horror. She loves that. She’s got a wicked arm on her. So I’m telling her softball was something I’d like to get her into.
You know what I mean? So it’s like, what are you gonna be good at? I, I think that that’s, I. Right. Experience, expertise, passion. And then I’d go survey those people for problems. Right? So what did I say? Mobile service based business owners in Kona. Go survey those guys for problems, right? That’s. What are the biggest problems that you have?
What are the biggest challenges you could, you know, just call ’em and saying you’re doing something, you know, a dissertation or you’re doing X, Y, Z for school. And you’d like to ask them some questions about their industry. They’ll just tell you straight up. And you will find that you’ll be able to throw a blanket often over the problems.
So therefore you just go solve that problem. You’re gonna have yourself a, you know, crushing business and then measure the size of the problem, right? Like, are they willing to pay for that problem? Right. And then I would go to learn the steps to solve the problem. Right. That would be the next thing.
Now that I’ve identified it, I’ve worked it out that they’re gonna pay to solve that problem. I go, what are the, what’s the one what’s the one through three, the one through five, the one through 10 of solving that problem. And then I would go and sell the solution again, before I went and started the business and spent hundreds of thousands of dollars.
Go see if someone will buy it from you. True story. I was like, so I was in Australia and I was coming to Canada with my business coaching and I picked up the phone like at midnight in Australia. And I was calling Canada inviting people to a live event at the local, you know, chamber of commerce or whatever, because I wanted to get a bit of a feel for if people were gonna say yes and were they interested in the solution?
And what I had to say. Right. So that was, was something that I I did before. Like I went and sold the solution before I jumped on the plane and said, Hey, I’m gonna go set up something in north America. And then by the way, next, you get better at it and better at it. Just, you know, be completely obsessed with solving that problem, solving that problem, you know, think big what I said earlier about trivial.
You know, don’t go to the trivial crap. Don’t play on the edges, go to the big rocks, the big, big, big rocks solve those. And you’re gonna build yourself a crushing business and then next recruit talented people to join your team and build your biz. Cuz again, you, your greatest successes will come through other people.
The end drop the mic that is. When we were in Cancun at business coaching master, I asked the coaches, I said, so who who’s ever heard? You know, that you should hire people smarter than you. And of course, all the hands went up. And then I said, okay, put up your hand. If you have people employed by you that are smarter than you.
And guess what? Not very many hands went up. Right. That is critical me. I don’t have that problem. I surround myself with people much smarter than I am. That’s not that challenging to do unfortunately for me, but anyway, so recruit very talented people. So, so I don’t know, that’s kind of like pick Aish identify what that, you know, experience, expertise, passion.
Get on the phone, send out email surveys, do the ask method, survey them for problems, measure the size of that problem. Like in other words, star, are they going to be willing to pay? Are they willing to whip out their credit card for it? Then I would learn the steps to solve that problem and make sure that problem is a big Boulder and not a little pebble around the peripheral.
Go sell that bad boy before you go and spend, you know, a crazy amount of money. Just go sell it. If one person’s gonna buy it, like people do like Facebook campaigns and it’s like, before you’ve sold something organically, don’t go and buy Facebook ads. You crazy. Right? Like think of the intelligence of that.
Right. And then get better at it by being obsessed with it. Just a little EV if you got a little bit better, a little bit better, a little bit better, a little bit better, a little bit better every day. What’s the thing road dog, where you, you take a penny and you double it every day. On day 30, like, first of all, I, I say, do you want a hundred thousand dollars?
Or do you want a penny? And I’ll double it every day for 30 days. Of course everybody takes a hundred thousand. And then what happens when you double a penny for 30 days, it becomes like five, or I don’t know what it is, but it’s like five or 10 million, I think day 31 might be 10 and day 30 might be 5 million, but the end of the day, It’s that compounding interest well, compounding expertise, compounding experience, compounding passion for the problem.
You get better and better and better and better and better at that’s why I’m good at what I do. I’ve done it literally for more than I’m coming on two decades, doing business coaching and consulting and helping business owners. Never done anything different. Like how could I not be good at it by now?
Right. So it’s get a little bit better, a little bit better, a little bit better. In 30 days time, you won’t recognize yourself in one year, you’re a completely different operator provided you follow that and road, Doug. We both know most people won’t. You try to do massive swings and hit home runs. On Tuesday and then it doesn’t work.
And then you wait until Tuesday, two Thursdays from then to try anything new just every day, a little bit better. And then of course the last one was recruit talented people you know, to join your team and start building your biz. So, so that, so row dog, the answer is probably not. But I would, again, what do you want if you really, really want an MBA?
And that was like your mother’s dream for you or your dream or your dad’s dream for you, then you might have a different answer. But if the goal is to become wealthy and to make a lot of money and to keep that money, I would be thinking about what I just outlined as a, as a process. So what do you think shoots.
[00:46:34] Christian: Keep swinging singles, bud. And by the way, it’s 5 million, 368,709 and 12. .
[00:46:41] Karl: Nice. Nice. Thank you. And is that day 30? Is that day
[00:46:44] Christian: 30? That’s day 30. Here you go. You ready for this 31? Yeah. Day 27. You know where you’re at at day 27? You’re you’re at five point almost. You’re at 5.3, right million at day 30 day 27.
You’re at $671,000.
[00:47:00] Karl: That’s. 300,000 the day before 150, the day before and 75,000 the day before that. So again, those last five, or, you know, five to seven days are where all the profits are. That’s what most people won’t
[00:47:12] Christian: do. And, and I just, I, I have to say this. I don’t know why the hell I’m plugging Elon Musk so much today.
Now you’re gonna start making fun of me. It’s you know, it’s funny you talk about titles. Yep. You talk, you talk about titles. You know that he changed his title last year, right? Legally he changed it from CEO to techno king
[00:47:34] Karl: did
[00:47:34] Christian: he? He did. That was actually back in March, but yeah, no, he changed it because he, he just think titles are an absolute joke and yeah, he, he legally changed his title from CEO to techno king.
Google it. It’s hilarious. Yeah. So there you go. So do you need a title? Make it up, like, you know, like techno king. That’s amazing. So there you go.
[00:47:55] Karl: And everybody road dog has a man crush. You heard it here first. There it is sitting in a tree. I can see it now. You know,
[00:48:03] Christian: the funny thing is it’s only been lately, like, like, I, I was never a big Elon guy, but lately just the stuff that he’s saying, I’m like, man, like it’s he’s yeah.
You know, I know in your eyes he’s no Tom Brady, but you know, we gotta make, do I guess. So there you are. And by the way, you talked about your height and body composition for playing professional hockey, you must have looked up to cliff running. I’m guessing, right? Like cliff must have been one of your, your favorites
[00:48:34] Karl: growing up Theo Flury shoots all away, all away.
There you go of guests. All. You heard hear first folks, Theo flurry for the hall of fame. You guys kidding me? What is
[00:48:49] Christian: Joe? Yeah, the guy guy, the guy is a legend I’ll I’ll, I’ll give you that. So you wanna close us out with your, your one thing. What’s one thing that they can pull from today’s episode and to start implementing to their
[00:49:01] Karl: business.
I think the obvious lift tax, right? You gotta Just to not spend to sell lingerie in the kitchen. Right. Makes no sense at all. You know, gotta go to that one, but like really it’s just so important, you know? You know, just understanding like it’s, you can, you know, you can get lucky and make it, you can’t get lucky and keep it right.
You gotta you gotta go there. So that’s everybody drilling down in 2022 on On understanding how to keep it as opposed to just make it and, and road dog, when you buy, you buy something for 333 worth a thousand, like my mentor and I are working on something right now. That’s just like, just so cool.
And it’s, it’s like this. Right. But it’s totally different, but exactly the same. He just undervalued. That’s where he goes, right? Like undervalued assets, undervalued assets. So if you buy something for 333, and it’s worth a thousand. You didn’t spend 333. You just tripled your. Like, and you paid tax on 333, not a thousand that it’s, and again, RO Doug it’s buy a thousand cuts.
So as somebody’s listening, it’s like, ah, I don’t, it’s like, you know, your, your client’s a hair salon. And they’re buying shampoo, conditioner, gel, wax, all that stuff. They’ve got the option. Like they’re probably buying from five different suppliers instead of doing that, what they should do is drill down on one.
Who’s the best. Who do they like the best who’s got the best products. Buy from that person buy in bulk show loyalty. And then what happens is you’ll get bulk discounts. You end up getting lots of seconds and samples and that sort of stuff. That again, you can sell. If you so choose, maybe they don’t want to, maybe they should.
I don’t know, but you, you get a lot of product that you can sell for free when you show loyalty and build a relationship like that. And then also when you get your invoice, if you pay upfront, they’ll offer you like a five. 2.5 to 7% discount. Right? Well, depends upon your cash flow situation, but lay down the money right here, right then you know, lay down that cash because that savings is just like, it, it sounds small.
It’s not 2.57. Remember if you have something member of the Warren buffet, I wanna buy it for a penny, sell it for a dollar and have it be habit forming. When you buy something for a penny and sell it for a dollar, you have a certain, you got 99% margins there. When you buy the same thing for 10 cents and sell it for a dollar.
There’s not like a 9% gap or a 9 cent gap. It’s 10 times more profitable to buy the thing for a cent than it is to buy the thing for 10 cents. Right. 10 times more profitable. So I business owners, aren’t thinking, so it’s not a 2.5% discount. It’s a massive improvement in profitability. Remember, two to 3% is a 50% increase.
Not one 20 to 30 is a 50% increase, not 10. So, so a wealth hack going down a rabbit hole here, but a wealth hack. Is to teach yourself to think in percentages and I’m not good at math in any way, shape or form folks. Right? So I’m the guy I’m not good at math. Right. But it, it’s not an excuse. I, I don’t need to be good at math when I, when it becomes a framework and it becomes a little bit of common sense and an automatic yeah.
Framework that I automatically go to. You know, this is the needle. You don’t need to be good at math. You got you’re you’re carrying a phone right now. You’re probably listening to us on a phone. It’s got a calculator. You’re you’re one centimeter from a calculator, right? So, so a wealth hack is thinking in percentages.
And then as you do it, think. You know, day one to day 30 becomes 5 million and then becomes 10 million on day 31. Thinking about that, you com as you think in percentages, it’ll compound and compound and compound, and in 30 days and 90 days and six months and 12 months you’ll be doing it naturally.
Right? So, so anyways, road, dog there you go. That’s my last bit of advice for today.
[00:52:55] Christian: Love it. Love it. By the way you, you talk of first off, I gotta say your best friend ever was when you get a bill and they actually have the tip percentages written down for you. So you didn’t have to calculate yourself
relief on your face. You’re not wrong, buddy, but the other, the other wealth hack you real quick. I don’t wanna go down a rabbit hole here, but you’d mentioned You know, buying a place for three 50, it’s worth four 50, pulling a hundred. It’s like infinite banking, right? It’s the same sort of same sort of deal where you, you overfund certain insurance policies and then you’re able to borrow the money tax free out of it.
And sometimes you’re even the interest that you pay is now becoming tax deductible, because it’s an right. Like it’s just, yep. Right. So many of these beautiful things. Anyways. So there you go. Being smart with it. Listen, thanks for tuning into other episode of business coaching secrets with the man on top of the hill, that king himself king Karl
and if you’re not on the inside and getting access to the pre-show or you aren’t getting Carl’s daily emails, or just want more information on how to build your coaching company, is it focused.com and subscribe today? And of course, if you enjoyed the podcast, please share it with a fellow coach or someone you think might make a great coach.
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[00:54:29] Karl: Karl Bryan built profit acceleration software. 2.0 to train business coaches, how to find any small business owner more than $100,000 in 45 minutes, without them spending an extra dollar on marketing or advertising. This becomes a business coach’s superpower. So as a business coach, you’ll never, again, have to worry about working with business owners.
That can’t afford your high-end coaching fees. Check us out at focused.com.
Karl Bryan, creator of Profit Acceleration Software™
Karl is the Founder and Editor-in-Chief of The Six-Figure Coach Magazine and Chairman of Focused.com, home of the largest private community of Business Coaches (24 countries and counting) in the world. His goal is straightforward… to help serious coaches/consultants get more clients. Find out more at focused.com