30-SECOND SUMMARY |
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The 5 advisors that will significantly impact where you end up |
At what stages of your business growth do you look at bringing these advisors in? |
What to look for when you are selecting these advisors to ensure you don’t get screwed by the sea of imposters out there. |
Some of the specific frameworks these advisors will be helping you establish |
Where to find the best advisors in some of these areas |
What do you stand to lose by not engaging the services of these specific advisors? |
Watch Episode 37 of the Contractor Evolution ShoW
Listen to Episode 37
Read a Summary of Episode 37
Where your business ends up in 10 years depends on a number of things: your effort, the market, your people, some good old fashioned luck . . .but another predictor that may not be on your radar, is the quality of advice you get.
Having a true team of experts in your corner will have a pronounced effect on where you end up as an entrepreneur.
Let’s put it this way, consulting with specialized advisors is like adding 50 yards to your drive without swinging any harder.
In an effort to make sure you don’t leave those hard-earned $$ on the table, in this episode of Contractor Evolution Benji and I break down the key experts you should consider to maximize the return on all your blood, sweat, and tears.
TURBOCHARGE YOUR BUSINESS: 5 PROFESSIONAL ADVISORS EVERY CONTRACTOR NEEDS
1. THE TAX ADVISOR
At the end of the day you want to accumulate as much after-tax money as possible; money that can be reinvested back into your company, or elsewhere.
The best way to do this is to hire a high level tax advisor.
Let’s be clear, this isn’t the same person who does your accounts and files your taxes. This is someone who can advise you (from a strategic perspective) on the best way to set up tax structures to save you as much after-tax money as possible.
They will be able to show you how, for example, setting up a holding company can leave you with extra cents to the dollar that can be invested in stocks/real estate etc. – the compound interest over 10 years makes a huge difference in the wealth you accumulate!
“When you cross a certain threshold as a contractor and business owner, let’s say 500-750K in revenue, you realise that what got you to this point won’t allow you to continue to scale. That’s where a systems advisor can make a huge difference.”
At what stage in your business should you upgrade to a full blown tax strategist?
When you have $100,000 – $200,000 in year-end retained earnings (the profit that sits inside a company that you can invest outside your operating company).
What to look for when shopping for a tax advisor:
You are looking for a tactician: someone who not only understands the technicalities, but is creative in their thinking. They will have a real track record for working with a whole bunch of fast-growing companies. Be sure you vibe with them. Don’t be afraid to set up 3-5 meetings before deciding. We use Ben Dixon at Renaissance Group, but reach out to your network and ask around.
2.THE INDUSTRY-SPECIFIC LAWYER
Our industry is prone to picking the first lawyer they come across – or a friend of a friend’s uncle. Don’t make that mistake.
You need someone who really knows our industry. Contracting lives in an operationally complex space: between the people, movement, safety and structures, the inherent risk is huge, and you need someone who understands that.
When things do come up (and they will – whether it’s a liability claim for a termination of contract or a hole in a customer contract) you want to be protected – don’t risk losing everything you’ve worked so hard to build.
At what stage in your business should you should you be looking at an industry-specific lawyer?
There’s only two words needed: Right away!
What to look for when shopping for a lawyer:
Someone who understands our industry – there are specific nuances in how contracting businesses operate. They will understand the risks. We work with Cotney Canada as they understand our industry, align with our values and how we relate to people.
3.THE INVESTMENT ADVISOR
Unless you have a crazy extravagant lifestyle, chances are, the more successful you are, the more money you will make.
How you deploy the money left over is important – money makes money after all.
Investing your hard earned cash into smart stuff (whether that’s marketable securities, private investment, real estate, etc.) is a powerful turbocharger to wealth building. And a smart investment advisor will put your money to work.
You’re probably wondering, “Can’t I just do this myself?” Our advice is, like everything in this world, you get the most success with people where this is their entire craft.
At what stage in your business should you be looking at an investment advisor?
If you have $200,000 to $300,000 retained earnings, now is the time to invest. As you grow more wealth, chances are you will outgrow your advisor; it’s OK to switch.
4.THE SMART BANKER
As an evolved contracting entrepreneur you will no longer be dealing with daily (and time-consuming) bank transactions – that’s not the kind of banker we are talking about here.
A private and smart banker is someone that knows your business, your corporate structure and your investment portfolio, and will be able to facilitate credits, loans and cash faster than you can down that latte (figuratively speaking of course).
Having this kind of relationship results in low friction access to capital.
At what stage in your business should you be looking at a smart banker?
When you are turning over $1-$2 million in revenue a year.
What to look for when shopping for a banker:
You want someone who is hungry in their banking career, wants to build a long-term relationship with you and truly invest in you. They will see the value in your development and care about you and your business.
5.THE SYSTEMS ADVISOR
This advisor is slightly different to the other four because they work on the inside of your business. They are the mechanics, so to speak.
Contractors are really good at what we do; that’s how we manage to build great businesses. But when you pass $750,000 to $1 million a year in revenue, you quickly realize that the skills that got here are different to the skills you need to run your organization moving forward.
The systems advisor will bring strong structure to your entire business and anchor it with clear achievable goals: from planning and financial budgeting and organizational structure to recruiting, training, and goal setting etc.
What to look for when shopping for a systems advisor:
They should have a track record of excellence in your industry and be able to prove that they have been able to implement it effectively, many, many times over with people in the contracting space. Shameless plug here, but at Breakthrough Academy (the mothership of Contractor Evolution) this is the bread and butter of what we do!
OK, so we get it if you look at all these experts and think “well that’s going to cost me a ton of money,” but, you’ll be surprised by how minuscule it is compared to not just the ROI but the personal benefits you will gain.
As with most things in this life, this should be fun. So find experts you would consider hanging out with outside of “business time.” Find your tribe and go make some money.
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