Introduction: Revenue ≠ Profitability ≠ Cash Many entrepreneurs confuse these three. $1 million revenue looks great. But if profit is $50,000 and cash is negative, business is in trouble. Understanding profitability prevents collapse. Part 1: Unit Economics – The Foundation What Are Unit Economics? How much profit you make per unit sold. Unit: One service, … Read more
Introduction: Unpaid Invoices Are Business Killers You do $10,000 of work. Customer doesn’t pay. You have profit on paper but no cash. You can’t pay your employees or suppliers. Business fails. Proper invoicing and collection practices prevent this. Part 1: Professional Invoicing What Professional Invoice Includes: Real Invoice Example: ABC Consulting Invoice Invoice #: 001 … Read more
Introduction: Payroll Is Your Largest Legal Liability Most entrepreneurs get payroll wrong. They hire employee, pay them cash, don’t file paperwork. Seems simple. But it’s illegal and creates massive liability: Proper payroll setup is non-negotiable. Part 1: Employee vs. Contractor – The Critical Distinction The Test (IRS Common Law Test) Is person an employee or … Read more
Introduction: Financial Statements Are Your Report Card Financial statements tell the story of your business. They show: Most business owners don’t understand these. They just look at bank balance. But bank balance is misleading. You might have $100,000 in bank but owe $150,000 in bills next month. Understanding financial statements prevents surprises. Part 1: Income … Read more
Introduction: The Three Biggest Purchasing Mistakes Mistake 1: Buying When Emotionally Ready Instead of Financially Ready You see perfect house. You want it now. You buy before emergency fund is established or debt is paid. Result: Financial stress, high debt, inability to handle emergencies. Mistake 2: Not Understanding True Costs You see car advertised for … Read more
Introduction: Your Credit Score Controls Your Financial Life Your credit score determines: Credit score difference of 150 points can cost you hundreds of thousands over lifetime. Someone with 650 credit score on $300,000 mortgage pays 2-3% higher interest than 750 score borrower. 2% higher rate on $300,000 = $100,000+ more interest paid over 30 years. … Read more
Introduction: The Debt That Never Ends Credit card debt at 22% interest is like a parasite on your finances. $10,000 at 22% interest: Pay minimum ($200/month): Takes 9 years, costs $21,600 total ($11,600 in interest alone) Pay $400/month: Takes 3.5 years, costs $14,500 total ($4,500 in interest) Pay $800/month: Takes 1.5 years, costs $12,000 total … Read more
Introduction: The Overlooked Path to Wealth Everyone talks about increasing income. Get a raise, start side hustle, switch jobs for higher salary. But nobody talks about the easier path: reducing expenses. To increase income by $500/month, you might need: To reduce expenses by $500/month, you need: Income is hard to control. Your boss determines raises. … Read more
Introduction: Taxes Are Your Largest Expense For most people, taxes exceed housing, food, and transportation combined. Earn $100,000 annually: For high earners earning $200,000: Most people never think deeply about tax optimization. They take standard deductions, don’t maximize retirement accounts, miss deductions. But sophisticated taxpayers reduce obligations legally through strategic planning. This article teaches you … Read more
Introduction: The Income Ceiling Problem There’s a problem with trading hours for money. Your income is capped by how many hours you can work. You earn $60/hour. You work 40 hours weekly = $2,400/week income. That’s your maximum (without working 80+ hour weeks, which isn’t sustainable). Even if you get promoted to $150/hour, working 40 … Read more