Lee talks about the importance of keeping an accurate P and L, Cash Flow Statement, and balance sheet so you can stay out of the crosshairs of the IRS and grow and manage your junk removal business. https://junkremovalauthority.com/
What’s going on? I hope everybody is doing a wonderful this evening. Kind of a late recording of trash talk here. I just blasted out or recorded a kind of a special edition. Not Junk Removal Made Simple but kind of a special video here. Covering the comparing and doing the junk removal on your own. Doing it as a part of a franchise system or going about it using our business package.
So, for those of you considering getting into the business, this is going to be really informative video for you. For those of you that are already in the business. I think you’ll be able to get some value out of it. You’ll see some advantages to working with us as well. You know a lot of the videos we do, give out a lot of free information. This right here gave out some free information but it was definitely comparing the three options franchises. Doing it on your own or the business system. It really highlighted the fact that we chose to start Junk Removal Authority to help everybody. To help new people, new in the business. To help people existing in the business. To help share that knowledge, that $2,000,000 a year by year five. That knowledge we got, nobody else. You were close to those numbers. It is out here in YouTube, nowhere close. We could franchise it. We know enough, we could franchise. We could sell some Junk Doctors franchises, but it’s not going to reach the number of people that we wanted to reach. It’s not going to help the amount of people we want to reach. That’s the reason we chose this business package.
There is no long-term commitment on the business package. There are no long-term royalties. You only pay us for the services we provide if you like them. If you don’t and they’re not working for you, you cancel and quit paying. You say “See you!” That’s all there is to it. That’s why I’m so excited to be able to bring this to everybody. Nobody else is really doing this. This is very unique. It’s kind of a hybrid. You’re getting the expertise of a franchise system, but it’s a hundred percent your business. It’s a hundred percent your name as far as being locally owned. You have the flexibility to kind of build your business like you won’t expand into different markets without having to pay more.
It’s just such a neat concept in. I pat myself on the back. I was the only one that came up with it, but we just constantly been thinking for years. We’ve been thinking what can we do different? That’s something you need to do. You need to do it in your business. So, you look at your competition. Decide what can you do different and roll with it. It’s two minutes and forty-six seconds. I won’t say I wasted. I think I just threw out some good value right there. What I want to speak to everybody today is keeping an accurate accounting record. I know a lot of you all aren’t doing this. I’ve covered this before, but I’m doing another video because it’s so important.
One for taxes. We just pay taxes. We just pay the IRS. Those thieves in SOBs, we just pay them. If you get all it, you want your stuff straight. So, according to the IRS, they’re going to start all in more people. I think that’s just a scare tactic, but that’s what they say. They will start all with more people. The sensor on their computer was just a little bit higher. That’s what they say. It throws out a few more people. There’s something quite computing correctly to them.
You got to keep accounting records. Also, for a planning purpose. For example, we had an issue recently where our disposal fees were high in Charlotte location. So, we had to really look into what the heck was going on. You know people just under quoting jobs. Do have somebody doing work on the side using our account? I mean it was high. It was like double what it should’ve been. It turned out there was an issue with the billing, but we wouldn’t have found that if we weren’t keeping accurate accounting records. Fuel costs, if your fuel costs get over certain amount, you need to raise your prices. So, you need to have accurate accounting records and they need to be computed quickly. Don’t look at a quarterly. Look at minimum monthly. Really you want to look at it at least weekly. We look at a daily. Every single day I get a report. I know my net worth. I know how our P and L looks like for that particular month. I how much money we owe to people on there. I know how much money people owe us.
So, I get these reports every day and I review them. You need to be on top of your finances. If you don’t pay attention to your finances, you’re going to get burned when you’re in business. You’re going to get burned. Quick books are easy to learn. I do recommend everybody take a basic accounting course if you have it. Do the books yourself, it is fine at the start. Once it gets busy enough and you hit a half million dollars revenue, you need to be finding somebody else to take over the books. It could be somebody you have answered the phone. You can bring in somebody to answer the phone. Whether it’s in the phone, they also in the books.
Now, when you get to about $2,000,000 in sales, at that point you need somebody more devoted to do the bookkeeping. 2 to 2.5 million, just devoted to bookkeeping at that point. Paying your taxes is one of the quickest ways to run yourself out of business. Not understanding and being in business, but not really making money. You think you’re making money but you’re not really making money. The accounting records, financial statements and bank statements and all of that. That will compute that. An accurate P and L is great. Always have a statement of cash flows. Know what your balance sheet looks like. If you have these three reports, I can look at those three reports in about three minutes. I can tell you exactly how your business is doing. Now, the little final tidbit on this, what is the most important part of the P and L?? It’s about that top inch and a half.
Blow-up! Get that top inch and half. The income part of that P and L blown up. You get it larger. Get larger, and that bottom line down there on the net profit has gone. It’s going to explode. Income is the most important. It’s been 90% of your time working on increasing the income. Spend 10% of the time working on controlling and reducing expenses. Jerry’s happy to help you with that. If you won’t, just call us at +1 919-466-9322. Talk with everybody real soon. We’ll get this comparison episode out. It’s a long one. Hope everybody hangs in there for it. I think you’ll find some good value, especially if you’re a research and expanding your existing business. Especially if you’re looking to get into it. We’ll be back for you know it guys. Thanks!