E72: Get your financials in line using simple numbers with Greg Crabtree

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Show Notes:

Greg Crabtree is an author and financial expert. His book, Simple Numbers, Straight Talk, Big Profits!: 4 Keys to Unlock Your Business Potential, is a highly recommended read for entrepreneurs.

Episode highlights:

• Learn what happened when Greg joined EO, and how he overcame his forum-mates negative opinion of his profession.
• Greg was able to gather valuable insights from the numbers he was crunching across many different clients.
• Find out more about owner’s compensation and what YOU should pay yourself.
• Greg breaks down gross margin and what a successful company’s numbers should be.
• The episodes shares how much you should bill a client based on what you pay the person working with them (hint–it’s probably more than you think).
• Best advice: how to delegate
• Personal habit that contributes to success: a thirst for learning
• Internet resource or tool: golf apps, and anything that helps “overcome self-limiting beliefs”
• Book recommendation: Jack Stack’s The Great Game of Business, Expanded and Updated: The Only Sensible Way to Run a Company

Links:

• Simple Numbers, Straight Talk, Big Profits!: 4 Keys to Unlock Your Business Potential by Greg Crabtree
• Simple Numbers website
• Crabtree, Rowe, and Berger CPAs
• Glassdoor.com
• Payscale.com
• Salary.com
• Economic Research Institute Salary Assessor

Quotes:

• “I either give away my expertise or charge for my ignorance.”
• “They’ll tell you what it is, but not what it needs to be.”
• “It is addressing things as they are–not as you want them to be.”
• “I’ve never seen two people worth the same amount of money.”
• “A business coach….has made all the difference in the world.”
• “I want to be writing seven-figure checks to the IRS.”

Takeaways:

• Start the uncomfortable conversations and make the difficult changes to work toward a financially healthy company. If you have more than one owner, are you paid the correct amount? Are your employees paid correctly, based on market rate? Are you billing your clients enough for hourly work?
• Review the 40/30/30 model in relation to profits in your business: 40% taxes, 30% distributed, 30% re-invested for growth.