Latest / The SmallBizChat with Melinda Emerson / 3 Money Moves for Small Business with Tim King

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3 Money Moves for Small Business with Tim King · The SmallBizChat with Melinda Emerson

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  3, 10, 1, 0, ignition, liftoff,
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  Ending small business failure.
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  Welcome to the Small Biz Chat podcast with a number 1 small business expert Melinda Emerson.
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  Bolinda's goal is to end small business failure, and she'll give you the information
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  you need to succeed and live the life you've dream of.
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  Now here's the small Biz lady herself.
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  Melinda Emerson.
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  Hi, everybody.
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  I'm Melinda Emerson.
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  This small Bizley America's number one small business expert, and I would like to welcome
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  you to the small business chat podcast live.
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  Now small business chat is a peer to peer interview show that gives small business owners
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  a way to get invaluable business advice.
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  The mission of small business chat is to end small business failure.
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  So with that, let me introduce my very first guest.
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  Tim King is a financial advisor who specializes and working with small business owners.
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  He's a transformative business coach that helps people create generational wealth.
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  He also advocates for better financial education for career professionals and those
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  who wish to become financially independent.
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  He provides financial education and consulting services that are revolutionizing the financial
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  industry.
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  Wants everyone to learn how to win the money game, and he teaches the rules and strategies
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  on how to build a bright financial future.
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  Tim, thank you so much for being here on small biz chat.
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  Thank you.
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  Thank you very much.
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  Alright.
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  So let's dive right into it.
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  What kind of financial moves should small business owners be making right now in the
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  middle of this pandemic?
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  It's actually difficult to do if you have no capital.
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  What I've found out through this platform, I've extended out and trans transcended my business
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  and trying to help small businesses stay open.
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  And what I've found out is is a lot of them don't have good credit.
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  And a lot of them do not have any capital that they've saved up for this type of situation.
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  It was a eye opener to me because I thought it was just like ingrained that all business
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  owners put something away because they are business owners.
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  They're able to put something away in case this happened and then come to find out, a lot of
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  them are just going cash and carry and they're putting all their discretionary spending back
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  into the business hoping that when they were get ready to retire, that they can sell their
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  business.
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  Not only a lot of businesses losing out on just not being able to operate they're losing their
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  life savings and something that they want to pass down either to the next generation or to
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  sell it to have a nest egg to retire on And now that that's been wiped out, people don't really
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  understand how this is affecting the economy in the long run, not just the short term.
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  Alright.
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  So you found out big secrets.
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  Small business owners don't save any money.
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  Some of them barely pay themselves.
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  Now you know, the secrets out.
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  Alright.
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  So what are you advising people to do now so that they don't get caught like this again?
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  What what are sort of like your three money roles that you kinda try to teach people.
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  1st of all, you need to save.
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  2nd of all, you need to save.
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  3rd of all, you need to save.
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  Because you have to, number 1, reinvest in.
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  You have to invest in your future.
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  You have to pay yourself first.
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  Invest in your future.
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  In case something now that you learned the lesson that this is this is something that can
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  happen again, which you should have learned your lesson back in 2008, if not 2001.
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  When it first But the second thing is that you have to put your money where it can grow.
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  This is where we come in.
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  We advise people.
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  We we ask them what their needs wants and goals and desire on.
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  We give them options.
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  I'm about getting people options.
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  Know what you need to know what you where you wanna go, but make to form decisions.
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  And so we give them that that ammunition so they can make informed decisions so they can
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  actually invest in themselves, have a decent rate of return and we do strategies that they
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  don't lose money.
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  I've been in the business for 5 years, and none of my clients have ever lost money in the
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  market ever.
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  And so we use these strategies to help them keep what they earn, help them put in a better
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  financial position now and in the future, and in a way of the younger people is just starting
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  out.
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  We give them an option of giving them tax free retirement plans.
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  And for the people who have built up a nest egg, and are about to enter into their
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  retirement years, something that they can put insurance on their money by putting it into an
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  in-depth annuity we can actually offer them if they qualify to bonuses and actually a a
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  guaranteed rate of return options depending on what they have and what they qualifies.
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  Alright.
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  So let's say for the people that, you know, got wiped out by this thing, but maybe they had a
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  401 k from before they started their business or maybe they have a solo 1 k or something
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  from, you know, as they run their business.
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  Do you suggest that now would be the time to dip into that to sort of, like, make a hardship
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  withdrawal to try to save their business?
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  It depends on what the situation where they're at.
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  If you absolutely have to right now that you can extract the money without penalty if you're
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  not 59a half in most cases because you have to understand these are government owned
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  contracts.
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  That there are all these 401 ks, 403bs, 457s, if you're a public employee, virus, and and and
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  such that family is all government owned.
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  So now the government is setting the rules, do you wanna live by default or design?
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  So we give them options where they can put in something private that they can control.
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  You run that that money over, but if you think that she can survive until the next until this
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  economy starts growing and starts opening up again, that's fine, but you have to make that
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  hard decision.
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  What are you gonna say on the on the sinking ship and try to keep it you know, afloat or do
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  you need to cut your losses and start over again?
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  This is the perfect time to reset and restart.
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  And we give you the benefits of knowing the rules of money, 3 rules of money.
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  So you can have make better informed financial decisions.
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  It's all based on what you need wants and desires and goals are.
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  And we try to fit a plan to fit that.
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  Alright.
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  How can a lot of business owners have had their, you know, credit might have been a
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  little bit shaky before the pandemic, but now it's a hot mess, right, because people had to
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  go into forbearance and all kinds of stuff because they just, you know, had to shut their
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  businesses down.
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  So how do you suggest that business owners now, you know, try to sort of, like, repair their
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  credit, you know, based after, you know, kind of what has just taken place in the economy?
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  Well, we do have some alternatives for that.
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  We do a referral service where we have a couple of companies that help people with repairing
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  their credit.
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  Some are invasives.
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  Some are not so much.
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  And we just brought on board last August, a new company that will help you try to settle settle
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  debt so you can pay it off in time and get credit.
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  And for the next round, the last around that we we've received from the government, the SBAs,
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  or the COVID relief package for the small business owners They're getting the money now,
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  but you have to ask what the tax implications are going forward with that.
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  Some of them are forgivable.
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  Some of them are not.
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  Depending on how it's structured.
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  You have to read the fine print.
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  Ask a lot of questions.
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  You need to ask questions.
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  Because you need to have a short term savings to plan a mid range and a long term in case
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  some of these things come up that you can extract some money based on if it happens
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  again, you know every 8 to 10 years the market corrects itself.
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  Give a series of lectures that sounds a state last fall exactly what's gonna happen is
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  happening now, but I just didn't know it was this gonna be this bad.
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  But talking to other economists earlier in the year last year, I let the the children know
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  that we're just getting ready to graduate the business school in San Jose State University
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  that these things were gonna happen.
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  You're gonna have to have multiple streams of income.
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  All the people that are in the the market right now in trading, like all the big experts They
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  all have multiple streams of income and they have multiple ways and they have a diversified
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  way of doing their portfolio.
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  So no matter what the conditions are financially out there, the weather is out
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  there, they're able to get a decent rate of income where they don't have to touch their
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  capital.
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  They just love off their interest.
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  One of the things that I found kind of fascinating in this economy right now is that
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  there were a lot of business owners who qualified for EIDL loans, which were the other
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  loans other than the PPE loan, and people were scared to take the money.
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  Like, I was getting phone calls from business owners who were like, I qualified for this
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  $64,000 loan, and I don't know if I should take And I was like, oh my gosh.
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  Please take the money.
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  You'll never be able to borrow money cheaper than you can right now, but I was you had
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  people, you know, you heard some of similar things from some of your clients or some of the
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  other business owners that you were working with as well.
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  Well, we're saying like a partnership.
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  We set them up with buy sell agreements or key man agreements depending on how their their tax
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  structure and how they wanna be.
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  And then with that, we work with CPAs and actually change their title.
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  And so they can get a savings.
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  And then we take that savings, I can actually share with some people that have a small
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  business that we can reallocate or restructure the way that you file your business taxes so
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  you can save some money and you can take that money that you're now saving in putting in
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  somewhere and putting that money away where it actually will give you that safety net down the
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  line.
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  Then those are other things that you can do for your business Now taking a loan, you have to
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  find out what the consequences are for taking that loan.
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  Once you're informed, you can make informed decisions.
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  Give people more options.
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  I like that.
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  Because that's what we do, but make informed decisions.
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  Make sure it's right for where your structure, your business is structured.
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  Make sure it's right for that business.
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  Make sure it's right for you personally because most of the time, like I said, most of
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  everything that that people have in their small business, that's their nest egg.
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  Unfortunately, but we give them alternatives to put that an extra nest egg away so they can
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  have an alternative way of retirement so they can have an option of whether they wanna sell
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  the business or pass it down to their next, you know, to the next generation.
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  Alright.
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  Last question, Tim.
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  It's not managed to pivot and do well in the economy, what kinds of things could you be
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  doing with your money to prepare for your retirement?
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  Oh, we try a different approach.
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  Like I said, we're like you mentioned, we revolutionizing the way people save and earn
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  money to them faster because we believe that everybody should have an opportunity at least
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  once in a life become wealthy.
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  So in that case, if you want that, then you have to invest in yourself because working in a
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  job, there's no the top 1%.
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  There's no 9 to 5 that's in that top 1%.
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  Nowhere.
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  You will not find anybody that's working on 9 to 5 in that top 1%.
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  There's 5 lucrative, the 6 lucrative industries that you can be a part of.
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  You can be an engineer.
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  You can be a doctor.
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  You can be a scientist.
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  You can be an agriculture.
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  You can be in in law and you can be in finance.
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  But if you, you know, if you master finance, you could control all stock, all 6.
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  I love it.
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  I love it.
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  Well, thank you so much, Tim.
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  I'm really appreciative for you to just give us these quick hits.
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  Please head over to my blog.
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  It succeed as your own boss dot dotcom to get more information and contact information about
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  tonight's guest.
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  And I just wanna thank you all for watching small fish chat live and being a part of our
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  success, the mission of small fish chant is to end small business failure.
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  I'm Melinda Emerson.
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  A small biz lady.
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  Until next time, remember this.
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  You never lose in business either you win or you learn.
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  God bless everybody.
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  Thank you for listening to the Small Biz Chat podcast with Melinda Emerson.
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  For more resources and small business success strategies, visit succeed as your own boss.com.
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  Subscribe to this podcast wherever you listen to podcasts and join us next Wednesday.