How to Manage your Money Video

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How to Manage your Money

Matt Deichmann: Hi! I’m Matt Deichmann for SBTV.com. Many small business owners are so busy with complex money management issues in their enterprises but they have little time for personal management. One of our favorite experts Bob Hardcastle is here today Bob— Bob Hardcastle: It’s a pleasure to be here again. Matt Deichmann: Thanks its good to have you as always. Bob in award winning and actually recognized financial consultant, radio host, and author. Here to give us pointers from his new book Money Minutes. So Bob tell us what kind of questions do you here most often from small business people? Bob Hardcastle: You know there’s so much in common between small business owners, large business owners, even individuals but what we hear most from small business owners is “what can I do to better understand, how much money I’ve got left over at the end of the month?” Is there about to same thing you say to your wife? Matt Deichmann: Absolutely. Bob Hardcastle: So I mean expenses are extremely important, that one’s thing we should cover. Another thing we cover is what I called “perks.” How do you pay all the bills, keep your employees and keep your employees happy? Two of the things here, keeping employees who work at a job compared to keeping your employees who worked at the career can be handled better with better perks. In your perks might be you 401k plan, even though many companies, most companies are not offering a pension now with a pension or with life insurance benefits. These are things that really make people feel comfortable. Now naturally if you’re not going to have a pension. If you’re not going to have life insurance you want to have a 401k and to really help your employee you need the match. So a small company owners. You really want to do things that maybe the big companies don’t do. Put perks into the situation. Now we can look at perks for all kinds of things. What about a gasoline car every month for 25 or 50 bucks. Matt Deichmann: Especially with gas its $4.00 a gallon. Bob Hardcastle: So unbelievable and you’re employees will really appreciate it. What about detailing? Their car once a year nothing wrong with that, what about maybe a function where everybody goes out in the company, again I’m talking about small business owners. 30 people, 15 maybe 5 people but maybe they go out one night. You have dinner or you have a picnic. Are you going to the art museum? Are you going to Botanical Garden some sort of like that but you’re together on a social level and the company pays for everything. These are perk set in my opinion are extremely important and help the small business owner get more from their employees and their employees feel like they’re bigger part of the company. Matt Deichmann: Here to seem like retaining quality employees is more important if you only have as you said 30 employees as suppose to 3,000 you need to keep those good workers. Bob Hardcastle: Yeah. You waste so much time training people to be able to leave the office and go do what you want to do and know that those employees that are back there protecting you and protecting the company and doing the right thing that’s invaluable. Matt Deichmann: Now you don’t want to be penny wise and pound foolish as you said a lot of times owners won’t want to spend the money to do things like the social you know outings or some of the benefit programs but in a long term that’s an investment in your company to pays off. Bob Hardcastle: It keeps you employed. What I think the business owners needs to do, especially the small business owner is keep an ear out and listen to what their employees are saying. Anything that they might pick up that’s a negative it doesn’t mean that that person is negative. It maybe something like “oh you know the traffic was terrible” there’s no telling how much gas I use today. That is nothing to do with the company but you know what you can make it easier when they think “hey you know the boss paid for that gas and it’s a pretty good deal. I’ve got a great boss. Those are to kind of things that I called perks. Matt Deichmann: Now as CEO Delta investments. You worked with individuals, you worked with small companies. You worked with large companies, what sort of common money problems do you see and then what sort of money problems are unique perhaps to small business? Bob Hardcastle: I think the most common between the big companies and the small companies is what I mentioned earlier the expenses. What is the bottom line? You know the big company, it’s very difficult and it takes longer usually to get to the bottom line that a small company. If you have one or two employees, you can get to that bottom line real quick but you know what even with that many people don’t. They said well let see we got this much coming in, I think I have them much going out. We’re making some money. We’re paying the bills. I can sleep at night. That’s not what to do. You’ve got to go into real detail and what you’re involving your companies CPA are someone that works for your company and it’s a big company. You forgot to get the detail on those expenses so you know. You know what I do we have some the usual money left over for perks and if you don’t have, additional money left over perks there’s stills some other things you can do. Maybe give your employees 10 minutes a day to make phone calls or 10 minutes in the morning to do this or to do that. Or take a walk around the building. There’s still things that you can do for your employees that don’t cause money. Matt Deichmann: It sounds like creativity might be the key for some of those things. Think outside the box. A lot of companies say no, no internet time and so employees end up was making on the side if you came out and said “okay you know to start your day 15 minutes do all your airings, make your phone calls, get that done and then get down to work. Bob Hardcastle: Sometimes we’re called Mavericks when we think outside the box but I really believe that the business owner who is Maverick who can think outside the box. Really gets the job done better, quicker and their employees and their clients are more satisfied. Matt Deichmann: Now as we know a lot of small businesses are family owned businesses. What sort of advice do you have for family on business? Bob Hardcastle: I think one of the things we need to do on a family own business is to make sure we bring up continuously about continuing. What’s going to happen—I call it what’s going to happen if Bob is no longer here? What happens if dad, grandpa is no longer here? What’s going to happen and we need to talk. You know we need to talk to the family but we have to bring it up to the employees too because the employees are concerned. Well I saw have job but Bob is not here anymore? So you bring and you involve the whole company. I think the what if is really very-very important not that’s a big issue. Another issue when your family owned is what do you pays the rest of the family. Does your daughter are in the same thing that your son does. If she’s doing one thing and he’s doing another or what about your wife. Maybe your wife is the one running the business and you’re helping the wife. Should you get the same earnings as a wife? You really have to sit down and figure this thing up because in the long run as I tease everybody, my wife says our money is her money. And someday with the mortality table saying I’m going to pass away before my wife all the money is going to be my wife’s money. So we need to know what’s going to happen with that money and we see many, many times where a proper state planning, proper business got annuity isn’t taking care of great tax problems that could be avoided by planning ahead along the way. Matt Deichmann: So good succession and state planning. Bob Hardcastle: Right together. Matt Deichmann: Okay now the new book again is money minutes. Give us one tips if you have to pick out your top tip out of money minutes what is it. Bob Hardcastle: You mean for everybody? Matt Deichmann: For everybody. Bob Hardcastle: Well the top tip is, if you can take two minutes a day and spend it reading money minutes because we have 379 pages. We have 350 money minutes so you know in one year almost you can go through the book but again if we can just learn a little bit everyday about the investment market whether were you know reading money minutes or whatever. I think it’s extremely important because we cover state planning, businesses, individuals, child education, systematic savings all aspects of insurances. Long-term care, life insurance, what I’ve been doing for part four years in the investment field I try to put into 350 one page to 100 quarter page money minutes and I think it will help your viewers. Matt Deichmann: Great, Bob Hardcastle, CEO of Delta investments. There are so much more to talk about on this topic and you’ll find many segments from Bob on SBTV.com under the money heading or on Bob’s website at www.moneytalk.org. Thanks for joining us on SBTV.com where small business is our only business.

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Matt Deichmann: Hi! I’m Matt Deichmann for SBTV.com. Many small business owners are so busy with complex money management issues in their enterprises but they have little time for personal management. One of our favorite experts Bob Hardcastle is here today Bob—

Bob Hardcastle: It’s a pleasure to be here again.

Matt Deichmann: Thanks its good to have you as always. Bob in award winning and actually recognized financial consultant, radio host, and author. Here to give us pointers from his new book Money Minutes. So Bob tell us what kind of questions do you here most often from small business people?

Bob Hardcastle: You know there’s so much in common between small business owners, large business owners, even individuals but what we hear most from small business owners is “what can I do to better understand, how much money I’ve got left over at the end of the month?” Is there about to same thing you say to your wife?

Matt Deichmann: Absolutely.

Bob Hardcastle: So I mean expenses are extremely important, that one’s thing we should cover. Another thing we cover is what I called “perks.” How do you pay all the bills, keep your employees and keep your employees happy? Two of the things here, keeping employees who work at a job compared to keeping your employees who worked at the career can be handled better with better perks.

In your perks might be you 401k plan, even though many companies, most companies are not offering a pension now with a pension or with life insurance benefits. These are things that really make people feel comfortable. Now naturally if you’re not going to have a pension. If you’re not going to have life insurance you want to have a 401k and to really help your employee you need the match.

So a small company owners. You really want to do things that maybe the big companies don’t do. Put perks into the situation. Now we can look at perks for all kinds of things. What about a gasoline car every month for 25 or 50 bucks.

Matt Deichmann: Especially with gas its $4.00 a gallon.

Bob Hardcastle: So unbelievable and you’re employees will really appreciate it. What about detailing? Their car once a year nothing wrong with that, what about maybe a function where everybody goes out in the company, again I’m talking about small business owners. 30 people, 15 maybe 5 people but maybe they go out one night. You have dinner or you have a picnic. Are you going to the art museum? Are you going to Botanical Garden some sort of like that but you’re together on a social level and the company pays for everything. These are perk set in my opinion are extremely important and help the small business owner get more from their employees and their employees feel like they’re bigger part of the company.

Matt Deichmann: Here to seem like retaining quality employees is more important if you only have as you said 30 employees as suppose to 3,000 you need to keep those good workers.

Bob Hardcastle: Yeah. You waste so much time training people to be able to leave the office and go do what you want to do and know that those employees that are back there protecting you and protecting the company and doing the right thing that’s invaluable.

Matt Deichmann: Now you don’t want to be penny wise and pound foolish as you said a lot of times owners won’t want to spend the money to do things like the social you know outings or some of the benefit programs but in a long term that’s an investment in your company to pays off.

Bob Hardcastle: It keeps you employed. What I think the business owners needs to do, especially the small business owner is keep an ear out and listen to what their employees are saying. Anything that they might pick up that’s a negative it doesn’t mean that that person is negative. It maybe something like “oh you know the traffic was terrible” there’s no telling how much gas I use today. That is nothing to do with the company but you know what you can make it easier when they think “hey you know the boss paid for that gas and it’s a pretty good deal. I’ve got a great boss. Those are to kind of things that I called perks.

Matt Deichmann: Now as CEO Delta investments. You worked with individuals, you worked with small companies. You worked with large companies, what sort of common money problems do you see and then what sort of money problems are unique perhaps to small business?

Bob Hardcastle: I think the most common between the big companies and the small companies is what I mentioned earlier the expenses. What is the bottom line? You know the big company, it’s very difficult and it takes longer usually to get to the bottom line that a small company. If you have one or two employees, you can get to that bottom line real quick but you know what even with that many people don’t. They said well let see we got this much coming in, I think I have them much going out. We’re making some money. We’re paying the bills. I can sleep at night. That’s not what to do. You’ve got to go into real detail and what you’re involving your companies CPA are someone that works for your company and it’s a big company. You forgot to get the detail on those expenses so you know.

You know what I do we have some the usual money left over for perks and if you don’t have, additional money left over perks there’s stills some other things you can do. Maybe give your employees 10 minutes a day to make phone calls or 10 minutes in the morning to do this or to do that. Or take a walk around the building. There’s still things that you can do for your employees that don’t cause money.

Matt Deichmann: It sounds like creativity might be the key for some of those things. Think outside the box. A lot of companies say no, no internet time and so employees end up was making on the side if you came out and said “okay you know to start your day 15 minutes do all your airings, make your phone calls, get that done and then get down to work.

Bob Hardcastle: Sometimes we’re called Mavericks when we think outside the box but I really believe that the business owner who is Maverick who can think outside the box. Really gets the job done better, quicker and their employees and their clients are more satisfied.

Matt Deichmann: Now as we know a lot of small businesses are family owned businesses. What sort of advice do you have for family on business?

Bob Hardcastle: I think one of the things we need to do on a family own business is to make sure we bring up continuously about continuing. What’s going to happen—I call it what’s going to happen if Bob is no longer here? What happens if dad, grandpa is no longer here? What’s going to happen and we need to talk. You know we need to talk to the family but we have to bring it up to the employees too because the employees are concerned. Well I saw have job but Bob is not here anymore?

So you bring and you involve the whole company. I think the what if is really very-very important not that’s a big issue. Another issue when your family owned is what do you pays the rest of the family. Does your daughter are in the same thing that your son does. If she’s doing one thing and he’s doing another or what about your wife. Maybe your wife is the one running the business and you’re helping the wife. Should you get the same earnings as a wife? You really have to sit down and figure this thing up because in the long run as I tease everybody, my wife says our money is her money. And someday with the mortality table saying I’m going to pass away before my wife all the money is going to be my wife’s money. So we need to know what’s going to happen with that money and we see many, many times where a proper state planning, proper business got annuity isn’t taking care of great tax problems that could be avoided by planning ahead along the way.

Matt Deichmann: So good succession and state planning.

Bob Hardcastle: Right together.

Matt Deichmann: Okay now the new book again is money minutes. Give us one tips if you have to pick out your top tip out of money minutes what is it.

Bob Hardcastle: You mean for everybody?

Matt Deichmann: For everybody.

Bob Hardcastle: Well the top tip is, if you can take two minutes a day and spend it reading money minutes because we have 379 pages. We have 350 money minutes so you know in one year almost you can go through the book but again if we can just learn a little bit everyday about the investment market whether were you know reading money minutes or whatever. I think it’s extremely important because we cover state planning, businesses, individuals, child education, systematic savings all aspects of insurances. Long-term care, life insurance, what I’ve been doing for part four years in the investment field I try to put into 350 one page to 100 quarter page money minutes and I think it will help your viewers.

Matt Deichmann: Great, Bob Hardcastle, CEO of Delta investments. There are so much more to talk about on this topic and you’ll find many segments from Bob on SBTV.com under the money heading or on Bob’s website at www.moneytalk.org. Thanks for joining us on SBTV.com where small business is our only business.

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