opportunity to talk about the way to build your side Hustle the basics I want to try to break this down into some simple steps for you to make more money with this idea project some of you may not see it as a great opportunity I want you to we're going to talk about the side hustle and I'm going to give you five basic steps to get it started rolling and making more money now my name is Mark Kohler I'm a CPA attorney bestselling author a ser serial entrepreneur I love small business I love Main Street America and I've been helping thousands and thousands of clients for the last 25 years build businesses and I've been doing the same thing myself since age I think nine that's when I had my first lemonade stand so I'm with you I get you I love you and I love the American dream and I love the side hustle concept this year it is estimated over half of working Americans have side hustle that's a1099 that's a little business on the side where someone's paying you to do something out of your regular 9-to-5 job or day job or night job if you will you're out there earning money in some other way now by the way this is the gateway drug to the American dream the side hustle is a small business it is and I want you to embrace it the side hustle is such a wonderful way to break out of the in sanity of just trading time for money and working for someone else not that that's bad I have many many clients that keep their Technical Training from a great college experience or a vocational training or a career path where they're getting paid great money or reasonable money for their day job career that's fine you got benefits may be you Andor your spouse love it I'm know I'm okay with that but if on the side we can build that side hustle and make more money we're going to pay off debt we're going to start saving more money we're going to invest in assets that start making passive income people the side hustle is the method to save more in taxes and build more wealth and tax-free cash flow we want to build cash flow so that we're not working our butts off every day so my friends that's the beauty of the side hustle I want you to embrace it understand it have passion for it and go for it so the five basic steps to begin with and these are categories more than I mean there might be 20 or 30 things to do here but I put them in five steps number one launch the right side hustle that's number one now there's really kind of level one side hustles and level two side hustles level one is Uber door Dash uh maybe you're doing some Consulting on up upw work you might be making $100 to $200 an hour on upwork as a side hustle it's a great website for you to kind of sell your services if you have some Technical Training Uber door Dash we get it and I've got college students that in our local area level two door Dash they're making $30 to $35 an hour in the evenings and weekends doing door Dash that's great it's wonderful and I'm hoping any of you that are on a level one side hustle you're taking that money and you're getting ready to go to level two you're getting out of debt you're using that money not to just live week to week month to month and I know I know it is tough out there the cost of living has gone up dramatically wages are stagnant and people are struggling my son here in the studio has been talking to me about just this ongoing suffocating feeling of our economy and so many middle to lower income which you don't feel low income but if you're making less than 100 Grand you're like I'm broke you're living week to week month to month and it is brutal so you're doing this side hustle to make ins meet that's level one it's okay and I get it and I can save a lot of taxes on that because that little Uber side hustle door Dash selling consulting services on upwork that's a small business so I want to write off cell phone home office Auto dining travel all sorts of goodies and I'm we're GNA pay less tax on that money that's good that's good that but that's level one level two and this is how you get wealthy is that side hustle has to allow you to duplicate yourself or sell a product or service in the middle of the night while you're sleeping that's when you start to build real wealth because now you're not tra trading time for money you're taking your time and building something that you can sell when you're not there now let's do a couple quick examples let's say it's janitorial or Landscaping uh I've got a client that does landscaping and he's got two Crews they do sprinkler systems and new builds and they do lawn maintenance and then he's also got two Crews that do cleaning for airbnbs one guy he and his wife wonderful couple I love them and they've got two crews out there every day cleaning airbnb's and two Crews working on homes now he could do it all himself the landscaping and charge X and his wife could go do all the cleaning and charge y but now if they have got two Crews cleaning Homes at $300 a a house and they're doing two houses a day with two Crews at four different Homes at 300 a home whoa now I'm bringing in $1,200 but I'm only paying my crew $600 so if I can get a a 100% markup on Services I'm providing I'm making money when I'm not there now is that a challenge sure you got to hire you got to fire you got to make sure your Crews where they're supposed to be there's going to be administrative costs but now you're not cleaning homes you're managing cleaners and you're making money even when you might be at the soccer practice of your kid now you could and that's the same with the the Landscaping number two example this is a do my daughter Allison I want to give her a shout out she sells product online she's been doing it since she was 14 years old she would go buy used clothing put it in the driveway drive over it a couple times with my car and then sell it online and call it the Urban Outfitter version I'm more of a rural Outfitter um Walmart but anyway she would take clothes drive over it and sell it and she'd go into my closet and look for any old ACDC rock band shirts from the 80s and resell them I'd be like where the hell did my shirt go well I didn't know you wanted it yeah I wanted it and she'd sell it but she's been selling clothes online for years now she's selling patterns online so she'll find and she's went on to school and learned how to be a designer and sew clothing and so she can take patterns show how to do them on YouTube and sell the patterns with her YouTube videos online in the middle of the night she is making money online in the middle of the night that's how we that's how we start to build wealth the next video I'll shoot is on scaling but the first one is let's just choose the right side hustle and level one's okay but let's be thinking while you're driving Uber or you're out there doing that consulting or driving door Dash you're thinking I can do this better what's my next side hustle where I can duplicate myself or a product or service and sell it online now it's going to take some time it's going to take some development you should be watching Shark Tank every freaking night thinking of ideas and but don't be beating yourself up take time to develop this idea and and something that you're passionate about something that you can make money at that you love all right now I'm going to be filling questions here in a moment I'll give you some additional resources I'm not going anywhere here I'm every week we're helping small business owners around the country get structured but it's not setting up an LLC first it's not opening a bank account first is deciding your plan what is that side hustle going to be now number two number two strategy or step the basic steps okay you want to go just do level one and take write-offs great I I'll help you all day long you want to go drive Uber take writeoffs and put that money in the bank and pay off debt that's great you want to make money I think that's why you're watching now we got to do step two you're going to develop side hustle level two and you're going to write a business plan a one page business plan and you can get online and look over and over at all sorts of business plans and watch videos and do do it but don't pay anybody to do a freaking business plan for you and don't think it has to be 30 freaking pages long just write up a page what am I going to sell for how much who's my competition how am I going to produce it how much is it going to cost me to produce it how am I going to sell it and a timeline here what's it going to take one page that's all I'm asking for bring me one page don't try to do it online don't let AI do it for you don't pay someone else to do it for you take a real pen to real paper and pencil it out did I say pen take a real pencil and put it into paper and pencil it out what are you going to sell for how much how much is it going to cost to produce how are you going to produce it and what's your marketing plan that's it well I talk to so many people that have a small business idea I'm like show me a one page what do you got on it well I got this great no no don't tell me show me the one page because we've got to see it on paper who's your competition what are they doing Secret shop someone and it doesn't have to be super unique you can be something doing something just a little different than your competition and blow it up by the did you hear of Lowe's and Home Depot it's okay you don't have to be unique there can be two of something number three you're going to determine my Capital needs am I going to have to borrow money from someone or partner with someone you could be borrowing from a bank an angel investor someone that wants to get you an angel investor means they don't want their money back they just want to help you it could be Grandma but you're going to borrow money from someone or institution or you're going to look for a partner stay away from the I word investor is a dirty word investor means give me money and I'll give you something if I make anything um invest in my business you lose their money you're going to jail that's an SEC problem you don't want to look for investors and make promises you can't keep because you get in trouble you want to say hey do you want to loan me money and I will pay you back X in interest that's a lender it's a note you borrow money you pay them back or hey do you want a partner with me don't call him an investor say do you want to partner with me you want to give me 10 grand and you can be a 20% partner 30% partner that's what they're doing when they go to Shark Tank they're saying give me money to help me launch this business and level up now if you need it so I'm saying third step in this process is decide if you need money you may not a lot of service businesses you don't need extra money I started a janitorial business back in 1992 when I was started to go to college and I ran it for six years and sold it for a profit I had 25 employees at one point I was working in the middle of the night as a jam Manor it took me $500 to start the business I went and bought a vacuum a wet dry vac and a mop and a broom literally and I started knocking on commercial doors saying I'll clean your building at night and I just build a business that way sold it for $50,000 to be honest is what I sold it for at the end of the day and went off to law school that was a janitorial business I didn't need investors I didn't need Partners I need to didn't need to go borrow money your level one side Hustle is your saving money could be the the capital you need to launch your level two side hustle where you can duplicate yourself a product or service now step four step four is you're going okay Mark I got my idea I've got my business plan I decided I don't need money or whatever I've got the capital to do this I'm going to go sell that piece of crap boat in my backyard or that RV I never drive or I'm going to go sell this in my garage or I'm going to sell something to get this launched step four structure now I'm going to go to the Whiteboard you really have two options on this and it's okay don't think again you have to run out and go um set up an LLC you might we're going to talk about that so get structured because you have to you can't build wealth if you don't build a structure to build upon so option A and B option A is ghetto we're just going to do a soul prop we're not going to go worry about an LLC we're going to use your social security number we're going to just start marketing it we're going to uh we're going to test the product we're going to um make a little money we're going to just make a little and and and we're going to see how it goes some we don't need to rush out and get a formal thing going if it's just you know we're just going to test out the idea and and I kind of like this idea because I don't want to spend a bunch of money getting organized if we're just in kind of that product development um uh focus group level you know I'm going to just try this out and see how it goes if you get any traction at all we immediately go to option b option b is where you're going to set up an LLC in the state where you operate and live now I'm not going to I'm going to maybe launch that into an es Corp down the road but that's later I just want a basic LLC and the state where I live now be careful going online and click click click clck and I'm just going to go set it up and watch Google and I'm I will tell you my little Law Firm is very affordable and helps clients around the country do it right and ask a bunch of questions of a real tax lawyer on Zoom for a Main Street business owner for around 1,200 bucks but if you want to go knock it out for 400 or 500 on some online site go for it be careful make sure you check all the right boxes and it's not just one sheet of paper well Mark I can do it at the state for $50 yeah that's about a tenth of an LLC there's a lot of pieces you got the new Boi report to finson has to be done in 90 days you need an EIN you need a corporate book you need a bank packet you got to go to the bank and open up an account get it done right all right so youve got this LLC you're going to get an EIN like I said and you're going to go get a bank account and you're going to start getting the Platforms in for payment you want to set up your stripe your Square your whatever zel you're going to do all the things you need to and by the way as a person you can get money on zel but you don't tell them it's you're a business but anyway you start getting all these payment planforms in place your bank account your EIN your bank uh your LLC and you're going to look at your url what is your website name I want your website to coincide with the name maybe of your LLC we always want to be looking for our URL on GoDaddy at the same time we're deciding on our business because we're ready to launch we got to have all this structure in place now is there going to be more than that down the road sure maybe we build some corporate credit and we start getting our logo down and and we start designing our website and all this but to me this piece brings us to step five step five is the marketing plan and in the marketing plan you're going to decide on the logo the website your colors are you going to do uh pay to ads or not are are you going to what are you going to do with social media posting and social media platforms and you're also going to talk about your local market is there networking involved locally um how are you going to sell how are you going to onboard how are you going to uh bring in your clients and your make your sales so you've got this whole marketing plan that you can that's evolves it grows it evolves it changes it's okay that it has change it's okay so don't I carry my marketing plan around with me everywhere so the this step of getting structured could be super simple or at least enough to open the doors like I want to open the door and start making money so if if I can get these five steps down let's repeat these I've got my level one side hustle level two is where I'm going to make the real money number two I'm going to do a business plan for that level two idea number three I'm going to determine what the capital is going to be necessary to launch this and if I even need Partners or where I'm going to get the money level four I'm going to get structured now I may do some Market testing staying as a sole proprietorship I don't need to go out and spend for any legal or any banking or any major structuring I'm just going to kind of test out my idea secret shop it if you will amongst your competition and then the real structuring before I go to level five or basic step five is I'm going to get my structure done and LLC a bank account an EIN the payment platforms la la la la la and then boom go to the marketing plan and in the marketing plan we're going to start checking off all these boxes the last thing I want to say is do not feel like you have to do this in the next three weeks don't compare yourself to anyone else compare yourself to you there's no rush it is not a race I want you to love this idea I want you to be passionate about the process I want you to be excited about this if you're having anxiety waking every day up every day about this you got the wrong approach you know I've got to do this I don't want to do this I this is terrible this is miserable I hate this then don't do it let's find the thoughts that give us the right feeling like oh my gosh this idea is great I could I have unlimited potential I could make more money doing this than working for someone else I could supplement my day job and in a powerful way I could build wealth I could build a future retirement this could be really exciting think of all the new people I'm going to meet oh do I have to be perfect at it no do I have to be super successful at it no do I have to do it right away no is there any pressure no you're the only one creating pressure for yourself think about the mindset you want to go into this with that's half the battle setting up an LLC and tax writeoffs follow me I got you I got you I'm doing this constantly I got books I got podcasts I got videos I got a a tax Pro network of accounts that will help you it's this stuff that matters on what you're going to do and believing in yourself taking your time and going at it in pieces and parts now I'm going to do another broad this is step one this is part one part two which may be next week it might take a couple weeks to let it percolate for some of you is I want to do scaling your side hustle see once you get this launched that's one thing but how do I hire employees how do I expand how do I grow how do I scale this that's a whole other set of tools but let's just get the damn thing up and going let's make some sales let's figure out our product our service our pricing model and work out the system a little bit it's okay it could take you several months to do that could take longer could take less that my friends are the five basic steps to get your side hustle launched and cranking all right well I want to be here for you with any questions you might have on the process you may want to challenge me on some of these or ask me or tell me that something should be different I'm all yours let's do it Dylan who do we got first question comes from omit on Instagram and he asks any recommendations on how to manage people for these small businesses books on managing people anyone have any tips oh my gosh I love it anybody in chat want to help them out with some good books um I love the book traction now traction has been a life Cher for me in the last two years it's a book on scaling um but it it you know it's meant to really go next level so it might be a little over your head but I like traction the other one I love is trust and Inspire it's by cvy uh and it's a great book on how to inspire others to Believe In The Passion of what you in your idea and your vision and it's very very powerful so look at CV's Inspire book the next thing I would say is if you're going to hire employees everybody this is super powerful I love your question on it if you're going to hire an employee you should if and let's just do a basic billing model you're going to hire an employee to go clean something you're going to hire an employee to do Consulting so you want to be charging for their services 3x what you're paying them at least so let's say I'm paying someone $20 an hour your FICA cost of of payroll withholdings and and workers comp and suda Fooda FICA is going to be around 15% so you're a $20 employee is really going to cost you about $25 so you have to keep that in mind so it's that employee cost me $25 well I want you charging 3x at least of what that employee is costing you so if you're going to say go out to a building and say or let's do an Airbnb example you're going to have an employee go clean an Airbnb so you're going to walk in and go okay I could clean this Airbnb in four hours all right and so you go okay my employee is going to cost me $25 an hour for four hours that's 100 bucks now you may put in there some C some money for equipment supplies cleaning material la la la la la but let's say that cleaning job is a 4-Hour deal your employees 25 you should be Billing at least 75 per hour for that cleaning so if it's a uh per hour so if it's a 4-Hour cleaning job you're going to be at around $300 you're around $300 for that cleaning job and a lot of airbnbs are paying about $300 to $400 to have a typical 32 Airbnb cleaned now you're bringing in three to $400 you're paying out $100 in labor and then you're going to have some overhead the goal would be everybody for every gross dollar you bring in let's do whiteboard Dylan you're going to bring in gross revenue you of let's say $100 you want a third of that to go to labor in a typical labor intensive business a third of that to go to overhead and a third of that to go to profit you want to be shooting for a 30% 33% profit margin on the prices you're charging so as you scale now this is going to be more of a scaling conversation is if I can operate on a 30% profit margin killing most restaurants are at a 5 to 10% profit margin a realtor might be on a 80% profit margin because they have lower overhead a realtor doesn't have an employees or a big restaurant and food costs so depending on your type of business you're going to figure out what how much am I going to charge and how much is my labor allocation but this would just be kind of a typical like that that cleaning idea so uh as you now with that said you're going to make sure you have an employment agreement you're going to have uh and by the way when I say employment agreement I go with at will agreements it's really a letter of in letter of understanding Loi a letter of understanding for the employee because you want to be able to fire them at anytime you don't want to sign employment contracts and then you're going to have an employee handbook you're going to set up a payroll procedure and I love ADP for this uh I may even want to put that down in the description or link to Brandon over at ADP so you can go to ADP and line up your payroll which can be extremely affordable so you've got your employment agreement and I'm going to put letter of understanding Lo Loi you're going to have an employee handbook and an ADP for payroll let's say and then the big one is you're going to have a training program and you're going to also give the duties and responsibilities to the employee and you're going to regularly train build mentor and follow up with them so they can understand their duties and get them feeling excited and grateful for what they have so you want to really be the managing employees is an art absolutely it's a lot of work but there's also some basic things to do and so I would go that route on that next question Dylan next question comes from Patrick on YouTube and he has a few crypto uh questions so the first one is why an escorp instead of an LLC for crypto Miners and staking um and then he asks if I start an nft project and sell nfts for Ada do I uh pay sales tax and if I convert that ADA to usdc is that a taxable event and all the acronyms out there can you have them put in chat Ada is that a token I apologize I believe it is a token it's a token of help me out in chat on that one okay everybody the first question was why would I need an S corporation for crypto mining or staking now everybody this is why a realtor needs an escorp this is why a restaurant owner needs an es Corp this is important Patrick why does a lawyer need to be an escorp an accountant need to be an escorp a landscaper need to be an escorp here's why if you're out there people as an LLC and doing landscaping or you're doing crypto mining because crypto mining is a service that's not invest crypto mining is a service and you're like well my CPU is doing the service doesn't matter an employee is out cleaning for me a computer is mining for me same thing it's generating income it's a service it's not an investment you want to go buy Bitcoin and sit on it that's capital gain you want to go mine that's a business staking now there's delegating node operator and then there's custodial custodial staking is passive I'm going to let G I stake my coins while they're with them in their um at the exchange that's fine but if you're going to do any node operating or even delegating the IRS is like whoa whoa whoa whoa your your staking is an active business it's not just investing so we it's very clear in regs and rules and our position at our tax law firm custodial staking passive note operator delegating operational so you guys see this so if I'm a landscaper or crypto Miner so landscaping or crypto Mining and I bring in 100 Grand and I spend 25 Grand on expenses I could be for the crypto mine it could be for my Landscaping truck whatever just hang with me and you net 75 grand you're going to pay self-employment tax at 15% that's 10 grand that's self-employment tax in any state I don't care if you're in a basement or doing this in Yugoslavia in the United States you're going to pay self-employment tax of 15% on that mining revenue on your Landscaping Revenue net you're going to pay 15% then you're going to pay state and fed you're getting hit three times boom boom boom this could be 5% state it could be 20% fed look at this you're out 40% in taxes holy crap right so Patrick not good so why we convert to an es Corp and all I have to do is convert this to an es Corp by the way it's super expensive call my office it's 200 bucks yeah it's 200 bucks so chill but you got to do it right and you got to date it properly it's a two-page form that clients screw up all the time so anyway so now that I'm in ESC Corp I make the same hundred grand I spend 25 I net 75 now no self-employment tax no Obamacare no corporate tax what awesome now the only catch is I have to take a little bit of salary here and that is called reasonable comp I'm going to take the 75 grand and cut it into two pieces probably 25 Grand salary 50 grand net I just saved 15% on 50 Grand that's $7,500 so Patrick if you're in the crypto business of mining you want to run that mining through an es Corp so you save on self-employment tax and it adds up quick talk to one of my attorneys at my office and they will help hook you up and get you into the right structure for your crypto projects next question comes from Monica on YouTube and she asks I work with the the Department of Mental Health County as a full-time job and I just started doing a part-time Private Practice therapy in California love it do I need an es Corp if I'm making around 20K on my part-time no you don't because you're going to graduate to the es Corp when the savings make sense I probably wouldn't even do an LLC at this point because there's an $800 minimum tax in California and you don't need it for asset protection now if you were starting a bungee jumping school and you were throwing people off a crane at county fairs this summer I'd get an LLC even if you were only going to make 20 grand because the LLC is an asset protection issue but for you doing uh counseling on the side it's a little soul prop now it's a level one strategy it's a level one strategy stry you're trading time for money okay you want to go next level here's what you do what's her name Monica okay Monica hear me out set up a website where you give it a cool name and say Here's the coaching because if you're going therapy and you're not licensed and all that you got to be careful with the words you use but if you're going to be doing some coaching which is an unregulated service and you're going to be helping people through trauma or whatever you're going to do set up a business where you have other coaches and therapists or whatever you call it that are on your team that you Bill out so now you're bringing in clients and and passing them off to the other Specialists and you're getting paid a piece of the revenue that's getting paid to these people now that would I don't there's a lot of Wellness ERS that do that approach it's a big deal I get it and that may not be a good fit for you I know but I'm just giving you the point that you want to be starting to think about how can I duplicate myself and pay someone to do what I'm doing and I'm the coordinator not the executor you want to be the coordinator and um making money that way but level one strategy don't do an es Corp you're fine Dylan next question comes from Christian I think this is a fantastic question he asks can you think of any creative way to legitimately write off the purchase of a nice watch wow that's a great question I don't know two words Apple watch a smartwatch is not a watch it's a Bluetooth device to help you succeed as a business owner so with a smartwatch you're doing it using it for calendaring messages efficiency it's a business tool much like a phone so a smartwatch can be up to 100% deductible if it's used in your business legitimately to help you be more successful and succeed and it's a tool a regular analog watch nothing I am sorry I wish I wish I love a good watch but you ain't writing off an analog watch it's got to be a smart watch there you go next question comes from cherlie on YouTube and she asks I get paid for my husband's single member LLC coaching business for admin website design and marketing can I just be paid as a contractor or do I need to be an employee as a contractor what is best neither neither neither nothing no don't do it uh uh all right I've got videos on YouTube should I pay my spouse in my business the answer is no there's two reasons only where I would pay you out of this business now you're like well hold it my husband needs to pay me he can pay you out of the profit I don't want you if he pays you out of the business with a payroll he's got to withhold FICA and then you turn around and claim it we're back where we started you just incurred more taxes for him to pay you and then you're he's going to $99 you now you got to pay self-employment tax stop the insanity and a marital relationship I want the couple to own the business in together now that may be a single member LLC it could be a Schedule C as in Charlie it could be an S corporation it depends on your I don't know the revenue I don't know why your husband's paying you it's his business your business the point is when he pays you as a subcontractor or an employee it's going to cost you more in taxes for no good reason the only times I want him to pay you is if you guys funded a 401k so if your business set up a solo 401k and I want you to put in money and I want him to put in money now you're on payroll for the sole purpose of pumping money into that 401k it could be a Roth 401k people you can put up to 60 Grand in a Roth this year by coupling it with the Super K solo 401K on top of your small business that's that's great that's the only time I'd put you on payroll and I said there was two the second one healthc care we might want to implement a health reimbursement Arrangement not health insurance I can write that off anyway not a health savings account I can do that anyway I'm talking about the HRA now if you get over to my book the tax and legal Playbook on Amazon there's a whole chapter on medical that would be where you'd go to understand why I would pay a spouse for medical but just go watch my video on when should I pay a spouse you and your husband own this business business together it's a marital asset anyway holy crap he doesn't need to pay you just take the profit out and allocate it between the two of you let's be efficient talk to one of my tax advisors in my network if any of you need a better accountant please go to Mark jer.com and go to the tax Pro Network you can find an accountant around the country that trains with me weekly Dylan next question comes from Sam on YouTube and he asks I'm looking at doing a print on demand business starting as a soul soul prop DBA so I can test and make money to set up a business more properly okay what is your starting price for the trifecta oh well thank you first name again Sam Sam um love it so what Sam's asking everybody is you're willing to pay to meet with your dentist every year you might go meet with your doctor once a year you might even go meet with your insurance agent once a year you might even meet with your you're accountant once a year when you drop off your crap and pick up your tax return as fast as you can and have no conversation at all but do you meet with your lawyer on a regular basis how many of you even have a business lawyer or tax lawyer it's pretty rare right because most lawyers are too damn expensive you can't understand them they're a pain in their butt with a stick up their butt and they're tough they're difficult to work with I admit it I'm one you know how much therapy I went to to be a cool Tax Lawyer did I just say I was cool I guess I can't be cool if I call myself cool anyway here's the deal in my little tax law firm little Boutique we want our clients to meet with us at least once a year and make a plan a plan that if we don't save you 10 times what you pay us we screwed up and so we'd like to build a trifecta it's a little structure Dylan whiteboard that helps a client understand that their life is broken into operations and assets and wealth this is your legacy and down here is your 1040 tax return in your trust you might have an entity for business you might have a W2 you might have an LLC over here for rental property boy that's an ugly LLC you might have an LLC here for your escort for your Ops and so this Trifecta and your homes over here this Tri this is just a beginning and this trifecta is what you use to build a vision for the future and mapping out the the the moving forward and so if a client wants to meet with us it's going to be around 1,500 bucks and it could include a new entity it could include us going through tax returns it could include a new trust we want to bundle something into that Trifecta we want to build a trifecta for you and look at your tax returns a new entity or a trust we want you to walk away with a tangible action plan and then you're going to go from there and build wealth so that's a trifecta plan on about 1,500 bucks and then once a year you can do a tuneup don't pay lawyers Big Big T tens of thousands of dollars you don't need to it can be actually very very affordable Dylan I think uh two more questions is probably good excellent okay uh let's start with angel on YouTube he asks is there a revenue Thresh hold that helps you determine when you should convert LLC to escort if you don't have any other income with a W2 or anything it's just you and a small business the net income trigger for when you should seriously consider an S corporation is 40 Grand if you're taking home at least 3,000 a month after expenses we're talking Auto home office dining all the goodies you're taking home around 3K a month in your side hustle you need to start thinking about an S corporation now if you have a day job if you're married if you have other income it's going to change the equation and the Very nature of a side hustle means you have a W2 somewhere else so if you have a W2 somewhere else it's going to change the math a little bit because it's going to depend on the level of your W2 but again when you're netting around 40 Grand a year in your small business or you think you're going to net 40 Grand this year you want to be thinking S corporation get a consult with one of my tax ERS we'll rock your world we'll save you we want to save you so you come back we just don't want this like one-off relationship next question hey last question comes from omit on Instagram and we're going to jump back to the tax tips you started out or business tips you started out with the very beginning and he asks what specifically is on a one-page business plan sheet that you talked about okay okay um I'll go there oh um here's what I would say okay the basic business plan now you're going to see all sorts of outlines out there everybody and it it is really an art um some people overdo it and have a 50-page business plan in my opinion some people have no plan at all so here here's what I would say basically I want you to have on a one sheet um in fact some people might summarize a big business plan on one sheet but to me it's kind of the same what I want number one is a paragraph with um a um that looks ugly let's clean that up I want to know kind of the executive um summary like and that's what it's normally called but it's a executive summary like what is your business like what is the idea uh what is your differentiation if any uh the why what makes it so cool kind of the what and the why and and maybe a little bit of how you know just kind of like this is a paragraph This is what my I this is your this is your pitch this is your elevator summary I want it in one paragraph super easy okay number two what is the product or service and you might just have a list of the top five products or Services products or services and description and price what are you going to sell you might say oh I'm going to open a spa we're going to do massages we're going to do facials we're going to do Manny petties here's our general price range okay cool now there's a lot of Spas out there and they and you can be just like every other Spa it it'll come down to your marketing plan and the experience people are having but the more differentiated you can be the better but anyway you're going to put down your two number two your products Services description and price number three I want to go with competition and and it could be lower on the list uh and and I'm okay with that but I want to know who are you up against and how much do they charge um and you're going to secret shop them a little bit you know this is what they're doing I can do it better so you you can say here's my comp competition but here's how I'm Different that's almost that's always a nice little benefit never four and again these could be in different orders you want to talk about your cost to launch like what is this business going to cost me to get off the ground um I I would call this a startup cost like this is how much I need to get it going and number five then you're going to talk about your operational or variable cost like what is my cost to produce and you might do what's called a a very short um a little p&l profit and loss uh the the product or service like how much is it going to cost to do this and what is my profit margin how much am I going to make and you're going to do some projections now I know I'm dumbing this down and I'm keeping it super simple some of you are cringing going Mark that should be three pages long I get it I I do I've written those but I'm saying at least the basics start with one freaking page just tell me here's here's what my idea is um here's the product or service how much I'm going to charge here's my competition here's how I'm a little different here's how much I need to start this up I'm going to need five grand to launch it then once I do launch it here's my cost of goods sold or here's my operational costs and here's my profit margin and some projections okay last thing Dylan now this might be size 10 or 12 font you're right it's a one page you're going to talk about your marketing plan how you're going to get the word out and you're going to summarize that with maybe some bullet points or a paragraph and then number seven your leadership who's my team leadership team or Partners or a little bit about you like what makes you special like how can you do this so um the [Music] structure again the the the legal structure or the and the tax strategy that's that doesn't need to be in a business plan I want to know how you're going to freaking make money and how it's going to work and so those seven I think are a good start and then as you get out on the web and look at other business plans out there just here here's the problem I get so many people in analysis paralysis they just stayed stuck in the business plan for months you know I've met clients that have been stuck in it for years like well I don't know I'm I just I don't have anything and and you know why because they're scared they're nervous they don't know how to launch it and so they stay in this analysis mode and and they never take action because it's scary to take action because we might fail and I want you to feel like it's okay to fail it's okay to get out and try it's okay I mean there's story after Story Colonel Sanders to whatever you know of just people that are they just tried tried tried and then it finally hit it's okay don't compare yourself to others don't put yourself on an arbitrary timeline don't measure your success by dollars in the bank measure your success with maybe the people you impact the relationships you make the experience you're having now I want you to make some freaking money but let's not kill ourselves emotionally or physically or spiritually let's let's just be very very kind to ourselves let's give ourselves a little Grace you went to college for five effing years but you expect to know how to run a business in five months really really that's your that's your judgment that that's your scale is you're you're going to judge yourself after five months of training on Google compared to four years of college and then going to beat the crap out of yourself when you don't succeed people you're better than that you could do this now I'm not going anywhere I've got a great website Mar jer.com a taxpro network I've got a tax Pro certification program for anybody that wants to build an advisory practice get over there do a demo for free check it out I've got a great Boutique tax law firm where lawyers can meet with you that are affordable and when I say affordable you're like mark, 1500 isn't affordable really when I can save you 10 grand and structure it properly you can't afford not to do it so save your money get out of debt build that side hustle people the American dream is real you can do this and it's just as important to know how to save money than it is to make money this structure this organization is so important and I want to be that guy for you we've got the team we've got the support to create that structure to create that that receptacle for the wealth you want to build and I know it's fun we can walk on fire and high five and and have all this you know you know exciting talk about making money I get it but at the end of the day you got to wake up and do QuickBooks you got to have an LLC you got to have a bank account you got to know what a p&l is you got to know what's a write-off we got to do those things and it's okay it's okay that's how the rich get richer they embrace it they love that structure they love that organization so I'm giving you in summary I am giving you authority to be a a geek I want you to be a nerd I want you to be a nerd about money I want you to be anal about it excited about it you can do this well everybody thank you for being here today check out all that information down below and I'll see you next week for another live on the American dream
