Eight Lessons from 2018

  1. Precisely define the one-point vision for your business.  We save our customers the maximum on the only costs that matter.  Why does your business exist?  Your one-point mission for your nail salon may be to help your customers feel their best every day with clean fingertip fashions. Or make your healthy and flavourful signature broth at an elite level in terms of both quality and speed.  Your business will do well if you are happy making customers happy.
  2. Focus on recurring revenue by being undesired by the undesirables.  We have managed to net our client retention rate to 99% by appearing unappealing to those customers who don’t appeal to us. Another option could be as simple as maintaining a high-end atmosphere.
  3. Know your enemy.  We decided THUT Wealth would be completely different, the anti-accountant.  Once you know your enemy, you’ll know what you need to do. Depending on your business it may be something as simple as scaling your signature clean look (white surfaces).
  4. Half your enemy’s menu is better than a half-assed menu.  Solve scalable problems and leave more unique problems to your enemies.
    1. Have fewer service/menu/product items. Which item has the least interest? Determine which item you would remove if you were forced to remove one.
    2. Fewer options/decisions for your customer
    3. Fewer employees. If you are understaffed 2 weeks of the year, apologize to customers but don’t use it as a reason to overhire.
    4. Fewer phone calls.  E-mail is scalable and has more info per minute and forces everyone to get to the point and save time.
  5. Customer Acquisition.  The more customers you buy (ex. paid traffic on Facebook, Google), the more expensive it is to buy (non-linear).  Ultimately, $1,000 spent on making a great product/productified service will generate more revenue through referrals than the same $1,000 in advertising. That said, influencers matter.  Rather than buying traffic, seek out people who can refer you more customers that share your vision.  Everyone is either with you or against you.
  6. Influencer attraction.  Our best marketing has been the blog posts we have created on our own unique data on B2B, e-commerce, restaurants, and salons. Blog, instagram and make you-tube videos that do something for your influencers and customers.
  7. Priorities. Why don’t we have a log-in for customers? Why didn’t you shop around? Why didn’t we buy a Hyundai? Because none of it matters.  Our most successful customers are the ones that have priorities and consequently do not waste time on decisions that have less than a 10% change in their total income. All non-urgent decisions are ignored for 2 days and if it’s still an issue in 2 days, we’ll make a quick analysis and decision in less than 15 minutes by turning every decision into 2+ defined choices.
  8. Decision-fatigue. In addition to making meaningless decisions quickly, decisions can be reduced with daily and weekly routines & menus.  Costco may not be the best for everything, but there is rarely a good enough reason to make a trip anywhere else. At most, go to Costco only once a week or replace it altogether with a scheduled biweekly shipment from another vendor. Avoid anything else, like shopping, that is energy draining and has too much stimulus, noise, and decisions.

If you have the interest to go into the details of the math behind these eight lessons please read on:

  • Wealth Inequality in Canada  WE NOW LIVE IN A WOLRD OF HAVES AND HAVE NOTS Canada is in the bottom quartile of peer countries in terms of wealth disparity.   WE ARE ENTERING A NEW ERA OF MASSIVE INEQUALITY Wealth inequality in Canada has increased over the past 20 years. Each year the Canadian middle-class loses its’ share of […]
  • Business Travel Expenses  You may claim an annual shareholders meeting as long as its reasonable (ie. Banff, Las Vegas for those us in Alberta or 2500km from your corporate home base). 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 […]
  • Dividends vs. Bonuses  Reading a bunch of articles on the internet, an uninformed person may make the conclusion that dividends trump wages every single time. Although accountants would have you believe they have the magic sauce to navigate their world, their world is governed by the same laws that govern the rest of the universe: math and its […]
  • 4 Focuses to make $200+/hour after-tax  Even without fast food or a salon, you can still make $200+/hour AFTER-TAX as a middleman. What do you sell? You either sell AI, equipment (industrial/medical/data center), houses, vehicles, or something scalable online. After processing over $2.8 billion in transactions over 10 years, four definitive conclusions is that you need to focus 1) […]
  • Quickbooks Online vs. THUT Accounting  As Certified QuickBooks Proadvisors we have met many clients who have intended to do their books on a daily basis, but life gets in the way, and depending on how many transactions occur on your synced accounts, even failing to match the transactions after a couple days can lead to a mess. And if you […]
  • 3 reasons why I started a business in Edmonton  I run an Accounting Sofware-as-a-Service business based in Edmonton. Accountants are all about cost-cutting, but the truth is that it’s all worthless compared to the big 3: taxes, housing, and payroll. Our mission is to reduce costs by 15-25% for businesses with recurring revenue. Please reach out to us at help@christianthut.com 1. Taxes Combined, the […]
  • How much taxes should I expect to pay?  Remit the net of the GST you collect on your invoices less the GST you pay on purchases every quarter (or if you are eligible and it works out for you remit 3.6% of your total invoices every quarter in accordance to the quick method accounting. Prepare to pay 12% corporate tax on your net […]
  • Part 2: Get Big, Stay Lean: A How-To Guide For Clean Bulkers  Before looking to grow you need to get lean first.  Once you have downsized until the marginal costs of outsourcing exceed the cost of doing it internally, you are ready to get big. Contrary to popular belief, you can get big without becoming inefficient. Here’s how to get the best results from your bulking plan! Spend more! Most people focus […]
  • Part 1: Get Lean before Bulking  What happened to THUT? At its height, we employed 6. Today, with more and larger customers, there is only 1 employee.  In order to grow, older companies (4+ years) need to get lean first: downsize until the marginal costs of outsourcing exceed the cost of doing it internally. Staying lean is key to operational efficiency.  For […]
  • Scale, Derivatives & the Most Important Ratios  Since we have agreed that math is the key to escape the middle class, we must go further to how to apply math in your business. Everything operates on first and second derivatives, marginal effects, and ratios. Algorithms are the key to scale: Find a problem that you can address that will bring value to customers. Re-frame […]
  • Math to Escape the Middle Class  Being part of a certain profession, or earning a certain amount of money does not ensure your exit from the middle-class.  Most people are stuck there because of math. We focus on the only 3 sources of negative cash flow that matter: taxes, housing and in the case of a scalable business – payroll.  Even […]
  • Investing Philosophy Updated for 2018  For the past 10 years, I was a strong proponent of dollar cost averaging. But our bull market will come to an end in this 4th turning. As of this writing,  Bank of Canada rate is only 1.25%. In 7 months we expect it to be at 1.75%.  With historically low-interest rates housing prices have […]
  • Man’s best friend: Dog Not Wolf (Employees vs contractors)  “If one holds his state based on mercenaries, he will be neither secure nor peaceful; for they are divided, disloyal, ambitious and without discipline… they have neither fear of God nor are loyal to fellow men.” – Niccolò Machiavelli Substitute state with company and mercenaries with contractors as you see that there is a misalignment of […]
  • ChatBots for Mass Market Businesses  Keeping true to our focus on minimizing payroll costs, Blockchain-enabled AI Bots are more cost-efficient than employees, available 24/7, have a quicker response time and will result in more sales. By using blockchain technology there will be a ledger of each customer’s conversation with the ChatBot in the event there is a problem. Online product sales: Chatbots should […]
  • Customer is King  The most important things in valuing a business are detailed financial records, well-documented operations (SOPs) and customer metrics: the long-term value of the customer, the cost of acquiring customers, revenue, and lost customers. Last week a dozen of our customers were listed as 2018 Golden Fork winners so we will start with the fast food group: […]
  • Math Hacks for Your Business  Location Due to mathematical clustering and conformity, the closer you are to your highest-grossing competitor, the more likely it is you will get half their customers upon opening. If you follow the rest of the advice in this blog and have multiple sources of income, to begin with, you ride out the zero-sum game until you […]
  • Running a Nail Salon  What are the three most important performance metrics? The lifetime value of a customer is king, and the three things that drive it at salons are client retention technician retention and retail sales per client. Client retention. Repeat customers generate a higher return on every dollar spent getting them in the door. Having a client […]
  • Lifestyle design for 2018 and beyond  There is too much choice and we all suffer decision fatigue. The start of the year is a good time to plan out the rest of the year. Life is too short to spend time shopping – shop as little as possible and have your necessities automatically delivered to you in a biweekly shipment. Likewise, […]
  • How Does Your Income Stack Up?  Do you know how well you’re doing income-wise? Many of us have no accurate idea because we don’t know how much our peers earn. While constantly comparing yourself to others may lead to unhappiness, you should know where you stand because it dictates your strategy going forward. If you don’t know where you are today, […]
  • Top 2 Profitable Purchases of 2017  2017 isn’t over yet but I guarantee that nothing else I buy in the next 3 months could surpass these 2 products. Read on if you want to: save time for what’s REALLY important save energy maximize your productivity and efficiency BACKGROUND I have two kids, a 3 year old and 5 year old, which […]
  • Choosing Your Market & Pricing  There are only two markets you need to know: The top 20% (controls 70% of Alberta’s wealth) Average women Where is the average men? They simply don’t count in Alberta– their women control their money -so unless you are targetting the high-end market direct your efforts directly to women! How do you pick your market? […]
  • 5 Rules To Keep Your House From Being A Bad Investment  If the housing market has a positive outlook you can consider a home less than 2.5x your gross annual household income if you make a 20% down payment.  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. Consider […]
  • Double Your Money  If you put $C ($500,000) into investments that pays r% (3%) each period, then after n (24 years) periods the amount of money will be P ($1,016,397). (Example is italicized) P = C (1 + r/n) nt where     P = future value     C = initial deposit     r = interest rate (expressed as a fraction: […]