22 tips to making millions

  1. Sell a product or a service in the form of a product  that you know better than most and that people will pay for: ie. Next generation Accounting.
  2. Determine the addressable market. The addressable market for small business accounting in Alberta is worth anywhere between $448M-$1B dollars per year.  There are 165,792 business in Alberta that would at least pay minimum $225/mo. = $448M.  Our market  nationwide is $3B -$5B per year.
  3. Spend less than 8% of your gross monthly revenue on your business rent.
  4. 50% of your resources should be spent on delivering your product.  Simplify your business into a process (see our 5 step process to accounting). Be clear with what your customers can expect and say no to anything that falls outside your process.
  5. Train disciplined people to handle the process. Hire 2, work them like 4 and pay them like 3. Use pool-style retention bonuses.
  6. Until you are financially independent, 50% of your resources should be spent on sales.  Either use sales reps and logic to cater to the top 20% (like us) or emotion and buying traffic – adjusting for conversion rates to appeal to everyone else!
  7. Perfect your sales process – contact us for your specific metrics. Expand to other cities.
  8. Use your business account (bank/credit card) for expense transactions vs. cash or personal debit/credit cards. Send us your statements in 1 of 3 formats in order of preference: .csv, .pdf, paper statement.
  9. Aim to set aside 50-90% of all the money you collect. Focus on earning more so you are not miserable living off the rest. Do not leave surplus cash in your operating company- 1) Payoff your home 2) Make the minimum RESP contributions to get the government grant 3) Save cash in a holding company to invest in things that increase your productivity.
  10. Charge up front to create a positive cash-flow cycle.  No single customer should make up 15% of your income.
  11. Focused skill x dedicated hours = success. Earning, fun, and negative visualization – don’t spend time on anything else.
  12. Do not fall into the temptation of cheap credit and live within your means. Your house should not cost more than 4x your gross annual household income. In German, borrowing is ‘schulden’, the same word for sin.
  13. Be extremely focused and work systematically. Do not multi-task. Do things once and do it right. Downsizing and minimizing whenever you can will help with the focus.
  14. Trash all video games. Trash all personal social media if you are not using it to earn 6+figures! The cheapest things in life: social media, netflix, walmart, accountants will cost you the too much in terms of wasted time and money. Touch things/paper/email only once. Deal with it or trash it and do not look back.
  15. There is too much choice and we all suffer decision fatigue. Shop at Costco and if Costco does not have it-you probably don’t need it. Embrace minimalism and bring focus and clarity to your life.
  16. Produce more than you consume. Concern yourself with delivering something useful and needed rather than making money and the latter will come easier!
  17. Consider purchasing capital assets prior to the end of your fiscal year to accelerate access to CCA. Talk to us about calculating your annual advertising budget.
  18. Autonomy and not having to rely on a job will ultimately make you happy. Having expensive to-maintain items, like gas-guzzlers will take you further from autonomy and happiness. CRA’s ceiling on passenger vehicles = $30,000 + GST. CRA’s limit on deductible leasing costs for passenger vehicles = $800/month +GST. These limits do not apply to SUVs, vans, and trucks that are used 90%+ to transport goods, passengers to earn income. These limits do not apply to a van/truck used 50% to earn income with a maximum of 3 seats. Usually you should avoid borrowing money for acquiring vehicles. Your vehicle should cost less than 5% of your net worth and leasing+operating costs should not exceed 10% of your gross income.
  19. You may claim an annual shareholders meeting as long as its reasonable (ie. Banff, Las Vegas). In addition to this you are allowed to fully deduct all expenses related to attending 2 conventions per year. Other trips can be partially written off (prorated for personal component) if you can attribute business purposes to the trip. Keep notes/e-mails related to business meetings. You need at least 1 business appointment scheduled before you leave. Over 50% of the days on a trip must be for business. Your travel days and weekends in between workdays on Friday and Monday count as business. Travel to a destination on Thursday, have a meeting on Friday, stay the weekend, meet with customers on Monday and Tuesday, and Wednesday flying home is 7 business days. This allows for another 6 days at your destination as vacation and still expense your transportation expenses. For everyday that is business, you are able to deduct your lodging, meals, car rentals. So, if your entire trip includes 7 days of business and 6 extra personal days, you will be able to deduct your hotel for only the 7 business days.
  20. Buy residential real estate for improving your life first, rental income second, and capital appreciation third
  21. If you make a 20% down-payment you should consider a home less than 2.5x your gross annual household income. If you can make a down payment of at least 30% you could consider a home that costs up to 4x your gross annual household income.
  22. Consider an income property only after you’ve paid off the mortgage on your residence. If you divide the net operating income from a rental property by the cost of the property you get the investment yield. From this value we can determine if it is economically viable to rent out the property or sell it. Having positive cash flow is not good enough to determine economical viability.