Mixing Money

Mixing Money
October 7, 2018 Gary Shotton

Your financial records will never make sense if you mix your personal finances with the business finances. It would be better to pay yourself a paycheck and live off that paycheck by Gary Shotton #000236

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Mixing Money

By Gary Shotton

This text is in Extreme Rough draft and will be edited in the near future.

hello my name is Gary Shotton and I’m here in behalf of “Inspiring Better Business”,  IBBTalks, and I’m just excited to be talking with you I hope these are helpful we’re just excited to be a part of your life in the business world today we’re going to talk about an answer a question that was commonly asked when we call in to our peer groups in East Africa Point Blank are we were asked how can we keep our personal money separate from our business numb money and is it important to keep it separate and I’m telling you yes it is very important to keep it separate your business money and your personal money but I also tell you it’s very difficult unless you create in your mind and you’re convinced you must do that it’ll never happen and you’re gonna find yourself in big-time trouble well let’s get started well in any business you know we have to first have done enough work what I call the investigation stage and you’ve got to do that on your own you’ve got to do that without any borrowed money you’ve got to do that in your part time and you really need you really have to have a form of income like working for someone else while you’re doing the investigation stage of your business too many people are unemployed or don’t have income and they think man if I can just start a business I will make money well that making money comes later it sometimes comes months later after you start so you in my opinion must figure out how to make personal income not as a part of your business in the United States if we’re going to have someone that was going to borrow money at the bank and it was a little bit new to the person the bank’s a little bit unsure they would ask the question hey is your spouse going to continue working and how good a job do they have while you’re starting this business here’s what the bank are saying I need somebody to make sure there’s money to pay the day-to-day Bills of their normal household the kids food the shoes for the kids the the the transportation though the gas to go to the grocery store the basic grocery source it’s not fair for your business to try to may take that on from day one so it sounds tough but will you say well there’s no jobs you figure out how to get a job you be termina make money we’ve had ideas like go to the college and and and go door-to-door and an offer to wash students clothes I’ve heard there’s money at colleges where people will pay you to wash their clothes I think there’s ways of mowing somebody’s grass there’s some something you’ve got to do to create your income from your household before you can think about keeping your money separate from your business because what’s gonna happen is you’ve got your business money over here and you have a personal household need I mean a real pressing need and and what are you gonna do well it’s too tempting it’s just almost impossible to hold off and not use that business money now when your start up and running and you actually have your business you’ve got to put that money in a separate account you can’t commingle in my opinion like if you want to use envelopes or you have a bank account or I have checking accounts and so I have totally separate accounts from our household budget from my business and you’ve got to think about it this way even though you own your business and you are the owner of your business you have to take a paycheck you have to pay a regular pay out of the business related to what you have put into the business on your time and effort that month or week or month and so you’re paying yourself like you are an employee because you are an employee and you pay yourself and you live off what you are pay your self just like everyone else that’s working for you you see then you can talk about separating the two you can talk about now this is my household budget this is my household uncle income this is my household envelope and if you’re if you’re getting started take envelopes and and when you do a job you say well I’m going out of this job I’m gonna take this amount of money and put it over into an envelope and say this is for my household and then one way or another you’ve got to live off of that household money and if you can’t you might need to pick up and continue washing the clothes of the college or mowing the grass continue doing what you need to do for your household it’s sort of like planting a seed in a garden and you know you’re kind of hungry and you see it cropping up and you go out and and root up the seed and and you try to harvest before it’s ripe you can’t do that to your business and succeed well I told you I tell a story and and this is a real story that’s happened multiple times in the kind of embarrassing about what the Americans have done wrong in not understanding this we have people that are our good-hearted people want to help and I’ve had this proposal several times and heard about it they said why don’t we teach our foreign people maybe East Africa or wherever and they should learn that rabbits multiply real fast and they are tasty to eat tastes like chicken we’ll will investigate starting the business not chickens but rabbit food oh that’s pretty good and so the Americans or the foreigners I’ll say it that way we’ll say well check out how much would it cost for a couple rabbits a male and a female for sure because we want to breed rabbits and we want to have there’s multiple rabbits come off of one litter and it they grow pretty fast and we can feed them we’ll just help you get started in the rabbit business and it’s reported back from East Africa what that cost would be and the Americans say well that’s not much why don’t we go ahead and start with like 30 pairs of rabbits 30 males and 30 females and that way we’re really starting a good business oh but I have that way the way how much money would it cost to feed those because you know it’s going to take a while to get up and it’s going to take a while to they grow and they’re gonna they’re gonna they’re gonna be eating something until you actually get to the you can’t eat your first rabbits you’ve got to let them grow a couple cycles so we’ll give you enough food for that and they give that number and you know these Americans are they have a way to fly our money and they say here’s the money we’re now help those African East African or African young people get in business they’re reporting to everybody around town how they’re helping one big mistake they didn’t understand the culture they didn’t understand that the people doing the rabbit business probably don’t have money for their personal use you see where they get mixed up here’s the business side the people lending the money or giving the money are thinking just to the business side but you’ve got to think we all got to think of the personal side how are we going to pay the person or how is a person going to make money until they get up until the businesses up and running well here’s what happens the people from foreign land go away the money’s in the pocket of the of the of the developing nation and everything seems to be fine until somebody working in Africa gets hungry and they’re real hungry and they’re real real hungry and their kids are hungry and they think you know we got this fat rabbit I know it’s a business but I’m going to co-mingle I’m gonna take money out of I’m gonna take a rabbit out of my business and use it for my personal use and that happens and that happens over and over again and pretty soon about a year later that people from America check in and say how’s the business going and the Africans are very very embarrassed because they said you know we ate the rabbits and they decide in America go Oh what in the world of those guys do don’t they know that’s a business no it’s the Americans fault I look the Americans in the eye and say are you stupid you set them up to fail you did not think of this all the way through you needed to have a plan to start small not big grow step by step let them make it on their own as they go and you’re gonna have more success and then we’re gonna have a happy people on both sides of the ocean I hope you see what I’m talking about I’m serious about this we’ve got a train our developing nations how to make money not how to to solicit money from abroad and how to do it slow step by step foundational and it does a lot of times involve mixing or are dealing with always will deal with your personal money along with your your business money and you’ve got to keep them separate if you don’t keep them separate you don’t know where you’re at in the business and you don’t know where you’re at in the household and everybody’s going to be frustrated well I hope this helps I’m happy with all that I’m doing I’m not upset and upset man I love helping people start and grow businesses I hope it’s happening we’re seeing it happening in our peer mentoring groups jump on board if you can thank you
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Gary Shotton
Founder | IBBTalks.com
The founder of IBBTalks.com which was formed to "Inspire Better Business."
As an astute businessman, he is passionate about helping others in the business world achieve maximum profits. He has a keen interest in international business. www.InspiringBetterBusiness.com

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