Light that spark fire nation JLD here and welcome to entrepreneurs on fire brought to you by the HubSpot podcast network the audio destination for business professionals with great shows like the product boss today will be breaking down the perfect profit and loss statements to drop these value bombs I brought Adam Rundle in the EO fire studios Adam is the founder and owner of clever profits a strategic advisory firm for entrepreneurs

services include accounting taxes fractional CFO HR consulting payroll services and advisory services and today for nation will talk about the mishandling of finances will talk about cash flow growth cycles will also talk about how to pay ourselves correctly and so much more fire nation when we get back from thinking hours sponsors online marketing made easy podcast hosted by any portal field is brought to you by the HubSpot podcast network the audio destination for business professionals

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Adam say what's up to a fire nation and share something that you believe about becoming successful that most people disagree with well thanks so much for having me and and hello to fire nation what do I disagree with well I think becoming successful is about just tireless work

and I don't know people are necessarily disagree with it but I think we like to believe that it was it's easier than it is and but I would say just tireless tireless work day in day out arrive at the plate swing as hard as you can

and you may have to do it for a long time but those are the longest are the most successful fire nation I'm loving this already because we're talking about the perfect profit in loss statement we're talking about really important talk

topics for you because that unless just be honest with our listeners right now the miss handling of finances is one of the top reasons the businesses fail so I want to hear your ideology on the best way to structure our finances

yeah I think it's true there's unfortunately we're in business to make money and so when you you must handle that that's when it goes south pretty quickly

and our methodology is is relatively simple I read a book by great craftry simple numbers big profits are a profit first and a number of other books and realize that you need to simplify what you're doing in order to move the back forward

and if we don't simplify it to a couple of key things that we can improve and manage you know measure and manage we're going to struggle because we're going to get we're going to get inundated in the complexity

and we're just going to get overwhelmed by all the things to do there's so many things to do every day to run a good business

so financially we want to try and simplify it so our vision our viewpoint on finances is one you know keep it simple you know if you can't explain it to a fifth grader

he's probably too complicated another point is you've got to know what you're optimizing for what what are you actually trying to do you know

if you're asking an Olympic athlete what they're trying to do they're going to tell you I want to win Olympic gold

so everything they do every every making moment they have they're trying to achieve that outcome so you've got to identify in your business what it is that you're trying to do

and you know that's a subject of question because we're all going to answer it differently but the most common objective answer you can get

and I'm yet to be proven wrong in this because I think it's right and I'd love for someone to prove me wrong

the most common objective answer is you've got to build a business I can actually make you money

real money you know money that flows from your business into your personal pockets so that you can do the things you want to do

so you can answer all those subjective questions around living the life you want to live and caring for people and going on vacation

doing all the things you want to do but you've got to have a business that spits that out you know spits out that money

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