Podcast Summary
Monetize your assets with Airbnb, start your side hustle: Airbnb makes it easy to rent out your home for extra income, helping alleviate anxiety of an empty house. Keep accurate records with Intuit QuickBooks and learn from others' experiences on 'Mind the Business' podcast.
Monetizing what you already have, such as your home through Airbnb, can be an easy and effective side hustle. For those new to the side hustle game, Airbnb makes it simple to get started. This not only provides additional income but also helps alleviate the anxiety of an empty house. Furthermore, the first sale or paycheck in a business is a significant milestone, but it's crucial to keep accurate records of income. Running a business comes with rewards and challenges, but with the help of tools like Intuit QuickBooks, you're never alone in your journey. The podcast "Mind the Business, Small Business Success Stories" shares valuable insights from business owners, including their mistakes, to help you learn and grow. Remember, keeping track of your finances is essential, and Intuit QuickBooks offers a suite of business tools to meet your specific needs.
Setting up a robust financial infrastructure for small businesses: Using a reliable accounting system, tracking expenses carefully, and understanding your role as both an entrepreneur and an employee are essential for managing the financial health of your small business.
Setting up a robust financial infrastructure for your small business is crucial for avoiding financial surprises and ensuring long-term success. Janice Torres, a small business owner, shared her experience of not having a clear financial picture in the early days of her business, leading to unexpected tax bills and overspending on business expenses. She emphasized the importance of using a robust accounting system like QuickBooks, which not only tracks all business transactions but also offers features like invoicing, payroll, and business banking. Austin Henkowitz, the podcast host, agreed and added that in the beginning, he made the mistake of overindulging on potential business expenses. He also shared that setting up payroll and taking care of employee benefits, such as health insurance and 401ks, should be a priority for small business owners. In summary, using a reliable accounting system, tracking expenses carefully, and understanding your role as both an entrepreneur and an employee are essential for managing the financial health of your small business.
Seeking help and being resourceful in starting a business: Business owners should not hesitate to seek help when needed and be resourceful with their funds to ensure a successful start.
Every business, no matter the size or industry, will encounter areas where expertise is needed. In the case of the podcast guests, they realized they needed help with business finances and setting up payroll. Jessica Spalding, the founder of Harlem Chocolate Factory, faced a different challenge - a lack of cultural representation in the chocolate industry. Despite this, she persisted in her dream and won a business plan competition that provided her with $15,000 to start her business. She used the funds wisely, allocating 50% for production equipment and supplies, 25% for setting up the business, and 25% for marketing. Jessica's story highlights the importance of seeking help when needed and being resourceful when starting a business. Additionally, her determination to bring cultural representation to the chocolate industry is an inspiring reminder of the power of following one's passions.
Finding Help and Resources for Small Business Success: Utilize community organizations and nonprofits for free legal and accounting services. Leverage QuickBooks software for financial management. Reach out for help and don't hesitate to use available resources for small business success.
Leveraging the resources of nonprofits and community organizations can be crucial for small business owners in need of assistance. The speaker shared how they found invaluable help through a group of women at the library and nonprofits like Start Small Think Big, which provided free legal and accounting services. QuickBooks software was also a key tool in managing finances and understanding costs. Despite initial financial struggles, the speaker was able to make informed decisions and eventually achieve profitability. This experience played a role in the decision to open a flagship location in 2018. The importance of financial data and understanding costs cannot be overstated for small business success. To replicate similar success, entrepreneurs should not hesitate to reach out for help and utilize available resources.
Considering Retail Space or Large Orders? Be Strategic: Entrepreneurs should carefully consider their goals and resources before expanding into retail or fulfilling large orders to avoid costly mistakes and build a sustainable business.
Entrepreneurs should carefully consider their needs and resources before making decisions based on large sales or the desire for a retail space. The speaker in this discussion learned this the hard way when they let a large order dictate their search for a production space, only to encounter unexpected challenges and delays. They also discovered that running a retail shop in addition to other business operations can be time-consuming and financially draining. Instead, entrepreneurs should have a clear understanding of their goals and capabilities before pursuing new opportunities. This may mean passing up on large sales if the necessary resources aren't available or focusing on scaling production before expanding into retail. Ultimately, being intentional and strategic can help entrepreneurs avoid costly mistakes and build a sustainable business.
Analyzing Sales Data with QuickBooks: QuickBooks helps business owners make informed decisions by analyzing sales data, allowing them to adapt and scale production to meet customer demands effectively.
Having control over your business with the help of tools like QuickBooks can provide confidence and efficiency, even during challenging times. The retail business owner in this story faced the unexpected hurdle of the pandemic and had to adapt by expanding their product offerings and focusing on sales analysis. Before the pandemic, they only had a few products, but customers' demands led them to increase their product range significantly. For those starting a business, it's essential to understand that a Stock Keeping Unit (SKU) is an individual product with a unique identifier. During the pandemic lockdown, the business owner had to reevaluate their operations and reduce the number of items they produced due to staffing limitations. They discovered that they had been focusing too much on costs and not enough on sales. With QuickBooks, they were able to analyze their sales per item and make informed decisions about what to produce. QuickBooks empowers business owners to make informed decisions and stay organized, allowing them to tackle challenges with confidence. By understanding the importance of analyzing sales data, the business owner was able to adapt and scale their production to meet customer demands effectively. For those starting a business, using tools like QuickBooks can help streamline operations and provide valuable insights, ultimately leading to success.
Focus on hero products for maximum revenue: Identify top-performing products and invest in scaling them for increased revenue and efficiency
Entrepreneurs should focus on identifying and scaling their hero products instead of constantly creating new ones. The speaker shared an example of selling turtles, which brought in less than $1,000 a month despite taking up 30% of their time. By analyzing their product lines, they realized that 95-96% of their revenue came from just two product lines: chocolate bars, truffles, and bonbons. The 80/20 rule was mentioned as a reminder that a small percentage of products usually generates the majority of sales. Entrepreneurs should invest time in identifying their top-performing products and focus on scaling them instead of spreading resources thin on multiple products. This can help maximize revenue and increase efficiency.
Making tough decisions and pivoting as a business grows: Starting a business requires making hard choices and being willing to pivot, even if it means letting go of what was once important for sustainable growth.
Entrepreneurship involves making tough decisions and being willing to adapt as a business grows. Jessica from Harlem Chocolate Factory shared her experience of starting her business with pop-ups, which initially seemed cost-effective but ultimately proved to be unprofitable. She realized that scaling the business required a different approach, focusing on what was truly profitable and letting go of what wasn't. The process of growing a business involves making hard choices and being willing to pivot, even if it means letting go of something that was once important. This resonated with Austin, who is also going through the process of scaling his own business. Overall, the conversation highlighted the importance of being transparent, making sustainable decisions, and being open to change as a business owner.
The importance of having contracts in business deals: A handshake may feel good, but a signed contract protects both parties and avoids potential disputes
The importance of having written and signed contracts in business deals. Jessica Spaulding shared her experience of a handshake deal turning sour, emphasizing the significance of having a solid agreement in place. While trust is essential, a contract provides a legal framework that protects both parties involved. QuickBooks encourages business owners to prioritize getting contracts written and signed to avoid potential disputes and misunderstandings. Remember, a handshake may feel good, but a signed contract feels better when it comes to securing your business interests. Stay tuned for the next episode, where we'll be talking with Emily Doyle and Mei Kwok from Dune Suncare about their successful business journey. Don't forget to follow, rate, and review this podcast for more informative episodes on money management.
