The Right-Brain Business Plan

Lesson 25 of 33

The Moola Map

 

The Right-Brain Business Plan

Lesson 25 of 33

The Moola Map

 

Lesson Info

The Moola Map

What I'd like to do is come from a place of affirmation and start to move toward looking at the finances, right? So this is an important piece of that this is planned, even a right brain business plan we need to know, you know, about the money, the money commune in many coming out, and the first thing to dio is to just make sure you have a clear or clear ish picture of your finances. So I had asked you guys as homework to come with, like, any bank statements or expenses, and I'm not sure how much you have on hand, but here are some things to kind of keep in mind if you can answer these questions great, if you can take a guest imminent or remember friends swag, that would be helpful. So there are a few questions here that I'll just go through. How much did you spend last year on your business case of these air business related? How much did you make last year in your business? And, you know, I'd be curious to know, especially from the folks online, if you guys know how much he made last...

year, right? We're in january, so if you know, like end of the year last year, how much did you bring in? Um, sometimes I asked that and folks actually don't know they have it may be a general sense, or sometimes they have no idea at all, eh? So that's one of the most important thing, you know? And of course, if you're brand new to your business, you're not gonna have an answer to this and that's ok, or will be zero if you are still may be in a corporate job, you know, maybe you can write that down is how much he made last year in your work job to see you have kind of a frame of reference, alright, how much did you make in profit income minus expenses? So we're getting a little bit more left brain here, but sometimes we are just talking about, you know, roast, but we want to understand actually how much you made what your profit is, so if you know that you can write that down and this one, how much do you need to cover personal expenses that more goes into, you know your rent your car, car insurance, all that kind of stuff, the stuff you need to live your life, right? Because you're in business to help, you know, make a living right you want to be supporting yourself so it's good to know how much you need to pay yourself from your business, you know, I know it can be tough when you're just starting out maybe feel like I don't have enough money to pay myself. And yet isn't that why you're doing the work that you love so that you can, you know, be living your life? So getting clear on that so I just want to check here and see yeah, e oh, yeah, like so let's, just check in how are these questions? How are you with answering them in? It's totally fine. Is it hard at each other? Because we have a question mark question, yeah, e know it's hard because, you know, maybe you don't have it with you it's a lot easier if you're at home and come up, pull through things, hopefully the folks online might have more access to answer these questions. Um, but it's also interesting to know, like all, I don't know that off the top of my head no e think especially, you know, the second one would be a great ones know off the top of your head. How much did you make last year? Can we check in online? I'm not sure what activities going on there, but I'm curious folks have questions about this what it's raising for people or people have answers to these questions well, online people are sharing what they made a lot of people sound like they're just starting out in business okay? And s o we have someone who made two hundred fifteen dollars did to client sessions here and sutera says or the folks at home may not have a clue as well they might have more yeah, there you may not and that's okay, so I'm asking these questions more to get a baseline, right? So it's not like, oh my god, you guys don't know that's what I like yeah, actually I kind of expected to like yeah, I don't quite know so that we can say like, oh, well, these air actually good things to start building that knowledge around and empowering yourself so that you do know what's going on your business right? Because these things are pretty key to understanding is your business healthier nizer business making money? Kathy jay go overboard on tracking things, okay? Quikbook not that I know what any of it means, but I just want to make sure I record everything to get the picture at the end of the year. But do you have any suggestions in terms of financial software that you used to track or do you just hire it all out for an accountant or getting started like I've heard about out rate or right but have you given me so yeah, I'm glad you bring that up I knew I was going to talk about little later, but I think is worth bringing up here because it's so much easier to answer these questions when you have a system, right? I'm sure like if you went into your quick books, you could play answered this question is for the first time in my connection, you can answer these, but I need to go look at my school in terms of actual systems or tools recommendation I personally use quick books and that's kind of the industry standard for accountants to use and bookkeepers, but there are all sorts of new options out there, like outright is one I think working point I believe this may be another online kind of bookkeeping fresh books we've a question online from spiral blue can you help us complete this exercise if we haven't set of our business yet? Uh um uh, if you haven't set up your business yet, I don't think there are there's no data really to fill in and so that's ok, and when we're doing the next exercise when we're going to be doing our mullahs map aa lot of it is going to be kind of guesstimating because you're going to want to get a sense and kind of project, so this is kind of getting the lay of the land kind of like where you've been we're going to move into like where you're going so for the folks who are just starting out the where you're going, we'll talk about kind of the different types of typical expenses and then it's going to depend on your business in terms of the money coming in how you're bringing in the money but yeah if you haven't start your business yet this probably looks like a foreign language I don't know how to answer this and that's okay, but these are going to be important things to be asking yourself throughout. Kathy so as we're doing this exercise do you want us to I mean, I've got some numbers great I'm proud of him, but I guess a member's yeah, so what now what do you want me to share this with you and you want me just keep note of no maybe you can share them if you'd like this is more for you and so it's up to you I'm surprised that it's less than last year I think the yearbook so two thousand twelve is less than two thousand eleven this kind of interesting and what's your sense of when you notice it like so this sounds like the first time hearing oh, I didn't realize what might have shifted or I think I changed I've the question I think I haven't been as involved in the blogging they keeping up with the contact okay, so like the outreach me yeah, I think I let that slip this lacking a little bit too soon so yes that's why it's interesting to start tracking because then you can see what is working what are the things that I've done this year that maybe have had the number grow up or has it gone down? And oh, I noticed that I asked maybe more focused on building infrastructure or something like that and I mean, it could be economy you know, what was that? It could also be the economy it could be the economy could be I mean, I think that can be, you know, kind of goes back tio that could be a limiting belief because there are plenty of people making a ton of money in a down upon you know, so yeah did you have something? So for those of you here who have may be having trouble answering it, I'm just curious to check in how you're feeling about that that's it you're ok, cool, I actually feel good because I have made huge strides tio give myself permission to hire and awesome bookkeeper and an awesome cpi a toe help me deal with the stuff that I'm just not strong at really I don't believe I have to be good at doing bookkeeping, so I hired other experts and we're actually just about to go over the profits and losses and all of that firm based here great yeah and so the thing is you have to start somewhere so for the folks just starting and you're not sure how to answer these as you start tio spend money on your business and then make money just start tracking it and hopefully like in a system like quickbooks or outright or working point or some people just use an excel spreadsheet you know, if it's really basic that's fine um that way you can be educated about what's going on business yeah, just really it's it's so key if he'd we're in business to make money and so it's good to know what's happening with your money, right? Um all right any other is any other questions from online we do have we have there's a conversation going on around around bookkeeping and quick culture around people are handling that some people are sharing their expenses kind of some of these answers okay, great. Yeah, and something that's helpful just to name them. Um so I'm glad that people are sharing I'm also curious. So yeah, yeah, you know, I have a good I have an interesting coming from greg d two who said I've done some predictions like this before about a year ago I put it away and forgot about it and then I realized I had hit the exact amounts a year later that is so cool that's really thank you for sharing yeah thank you for sharing that shows like how having the int'l engine and getting your mind clear about it and I love that he put it away and like didn't obsess about it and I think sometimes we can put the number like oh I want to make you know whatever one hundred thousand dollars and then like obsess about it and then feel bad if you're not hitting it and then you go on that downward spiral so the fact that he put that intention and went about ended his work on kind of live from that abundance is pretty cool all right so we're gonna head into we're not going to go to spread sheets which is great right? I think the whole idea of like oh the finances like that meat that equals a spreadsheet and it is helpful to house spreadsheets but I find for right brainers a great way to just kind of dip your toe in the water of understanding the money coming in in the middle is doing um there's this other question how much cash do you currently have in your business and that would just be what is your bank statement say what is your account say I hope also that you guys how many of you have just you're like personal business account of personal bank account how many have also a business bank account? So for the folks online if you're just starting out I highly recommend is one of the first steps to help you track is to have keep your personal finances separate from your business finances so that means opening up a separate business checking account and a separate business credit card account because basically whatever you're charging their writing checks to in the business account that becomes the data that's going to help you answer these questions I think it becomes more complicated when you're still coming from your personal make it count everything's much together in terms of groceries and then what you spent on maybe a graphic designer so separated out that's actually the first step to making it really easy to answer these questions okay, so that's an action step I have for you guys think everyone in studio has that separated so if you don't go ahead and do that and also maybe open up a person business paypal account you attach to your business checking account so we're going to head into an exercise called the mullahs map and for those folks at home who have the book this is on page is one of six to one twelve you guys we're going to get one of your your own one upto work on but I'm going to show a little demonstration here so for those of you at home are wondering ok, how do I do this? Here are the things that you need basically you have a big piece of paper big piece of paper can be great you can also just use a regular size piece of paper or you could do this on a wall I think the fun thing about doing the moving out this way is you get to see it an interactive so basically a moving map is away tio look at the moula coming in and the mullahs going out and to do that in a visual way so make sure you've got a piece of paper whether it be a big one or maybe on your wall or even on your desk or the floor but have space to spread out ok and then it's helpful if you have pink pink and green stickies because that's kind of the color coding that we're using here and corresponds sort of like bookkeeping how negative or you know, money going out move or going out is usually read so pink equals the red in that case and green is for the mullahs coming in okay, so that's the income does that make sense and then have a marker everyone tracking? Yeah okay, so everyone in studio has these so what you're gonna do is draw a line down the middle just like that and the side over here is moula money, whatever you want to say, going out and over here is mullah and and what this is is basically a brain dump of what you know about your expenses so well going out of your business, and there are some examples, and I'll read through some of them. D I don't think you guys have this spreadsheet in your in your baskets, that's okay, what I'll do is I'll kind of read some to you, but what this is is just getting a sense of what are the expenses in your business? And so you can do the moving map. It's probably easiest to do it just for this year, right? For now, expenses for this year that makes sense. So things like office supplies, taxes, any kind of graphics. I know rebecca, you were going to do that print from a are from a piece something like that. If you know the actual dollar amount of it. Great, you might want to stick that, you know, right that on this sticky, if you don't know that's, okay, you can put a question, mark it. Maybe you have the information at home. You can go look at it later, but this is kind of the first step, rather than jumping right into a spreadsheet, because people kind of what's the right brain people kind of freak out going into the spreadsheet first this is kind of entry point into like getting it all out what the different categories are for mullah going out so expenses so I'm going to read some off if you have the book there is a list one a through through one o nine is a list that things like advertising and marketing thank service charges like merchant account fees if you have credit card or paypal um entertainment and meals insurance equipment membership dues office furniture postage printing professional fees if you hire a bookkeeper he hire an accountant um and those were actually to the things that I hired first were accountant and bookkeeper maybe a coach maybe an agent and he software or tools subscriptions so I know I'm kind of going through this fast but you want to put each one on a pink sticky ok so I'll just decent examples here question yes so because I'm starting this and I don't have any numbers for what I'd like to do should I do like a projected budget like a wish list you can do wish list exactly so if you don't know yet just to do what you think it takes the flags it's just to help get it on paper so and right now let's just focus on moula out so we're kind of all in the same online folks kind of know what you're doing there are they trafficking? Yeah, ok, awesome. We're just gonna do it for this year just for now and then we can add to it and this is strictly business it's not living expenses, right? This is strictly business itself. You might wanna have one that just is personal expenses group together, so you don't have to, like, break those all out but luckily not exactly. Yeah. That's one number because you're gonna want toe hey yourself to cover that ideally right? Yeah. So you can put you might want to call it, like, pay yourself awkward because from the business perspective, right? It's that paycheck to you, right? Yeah. Ok, that makes sense, like rent. Really sorry. Utilities. I meant that if you have an office like kathy jay's got the physical space shannon sharon test santori has, like, the yoga studio business rent expense. Sorry. Thanks for yeah, we'll let me clarify that. Yeah. So most of us work out of our yeah, like part of it does part of it. Does andi think that's something to work out with your accountant? Sometimes it actually doesn't make sense to you. Right, so write it off. Yeah, lisa, we have a question from the audience, are these monthly or yearly projection, thank you, yeah. So you can do it either I would dio if you do know that monthly you can say like oh I know I pay my bookkeeper whatever two hundred dollars a month so you can say or you can do it by the year some of the things are just one time of year right like maybe only work of the designer once on a project it's not like every month you pay them fifty dollars so it's going tio be different for each expense so there are kind of fixed expenses and then what's the other word for it sorry what very well thank you fixed in very well extensive yeah there is on the download for the purchase download a template that has some of these listed out already we don't want to jump in and spread sheet yet unless somebody is like really speaking out on this he totally can like I have friends you I really love spreadsheets but we're going to start here school so for those of you who have already purchased the course looks like there's the mullahs making methods download and making it easy for people to pay you and there's a couple more that mullah goals and rid the red grow greens the red red green that will be getting too late as I go ahead and download those if you have already purchased yeah so are there questions for chat? Will these guys they're working or I can walk right? Ok let's say we have a question okay uh if we see money as energy what if we also track our time we invest in our client's creating products and services and the time and that we invest in our own business so that is from adriana from venezuela like how do you put a dollar you put a dollar value to that your time I think that probably goes into the pricing right of whatever it is you're offering so I'm not sure if it actually is a sticky here but I think it's such a great thing that you're thinking about so thank you for bringing that we have someone else asking should we include our own salary so that would place exactly so we're just talking about that with nathan of like, ok the whole thing about the personal expenses you know do we put those all here? What I would do is just have you know like paycheck to sell for salary that encompasses whatever is going to take care of the personal expenses you have so certainly have of pink sticky move out that's salary to you hopefully you're paying yourself it's good to invest in your business for sure and you're gonna want to pay yourself so a question from isabel maria in terms of investing in your business how about money and education? Yeah towing that's totally business expense so investing in this course way company talk to your accountant and all but yeah, that is a that yeah it would be under I think education or training but I have in mind you know working with my coach that's it seems expense a pink creative live sticky treated like tiki exactly way have a question from s laban leblon I have spreadsheets and exact amounts should I still do the math uh if you're already got your spreadsheets you kind of have like jumped ahead which is great it might be an interesting exercise to do just like project forward even more and see because it's a little bit more creative having it in the sticky format so if you're wanting to maybe see if a new perspectives come out you could do that that could be a fun exercise another question that's coming in get a my my job be when doing the mullahs map do we include the other activities that we do to gain money for example I'm a designer where I'm actually making my living for now but I'm also a language teacher so if you have kind of extracurricular ways that you make money outside of your main job I got it depends on how you're tracking it teo you know uh yeah actually khun I actually wanted to check in with these guys and then we'll head into we were coming in because we really want to know that teo breaks so I'm just going check in and see how it's going and remember, well, we'll need to speak up so they can hear us. So how's it going here consists basically, I just went through all the things that I spend money on a regular basis. Ah ha! Podcasting. I'm still paying off the equipment. Okay? As that's a monthly fee, then the service to do the podcast than website office rent, which is in my house. But I only really clear here. Um, supplies my liability insurance. Professional days changed because I change organization as plus it goes up over time yet. Um, see you so that's obviously going to be variable professional, right nation continue education? Yeah, yeah. And then gifts? I don't know, that's variable. But I pretty much always have gifts that I give people that I work with. Local travel. That's a little bit variable phoniness, really expensive way can't believe it salary, which I haven't fully decided what I'm getting paid kind of depending month transcriber my assistant coaching program coaching, travel but keeper c p a and my taxes. Ok, but some of these numbers I'll learn more once I could just let me my first year pain got it right, okay, yeah. So it's just good to know that you can kind of keep track of have a line item for it and then fill it in when you know yeah yeah yeah hey cool yes I have a lot to learn this year okay great yeah come on over here caitlin how's it going good way I think I have a list of them I can think of are there new ones for you are these air connects today's in business for a while yeah, I think the new ones and thinking of paragraph a graphic designer and I think that's kind of ongoing like I've had it before but you might changes here um and then a new office of battle more office supplies anything travel too will be a big win this year is your different different okay great. Yeah. So so yeah I mean I mean like professional development like things like this and caring so okay it's all just taking really quickly and then I want to move to the income piece how's it going with your kid? Am I supposed to starting on? Yeah go for it and you wanting numbers on these? Yeah, if you know rough roughly yeah so we've got raw materials equipment permits internet eight hundred number sales tax should be shipping advertising and is this raw materials that's per month or no that's here that this is annual doing okay go thank you it's totally crazy it's crazy on my google spreadsheet you a cool and when a name that would you even making mullah making but I put in eight yeah is spelling preference what have you been thought that was funny that it's cool so yes these air kind of what the big question for me is taxes and this is the first year I'm going to hire a cps okay, great well that's going to help you and that you know ok go on then I guess is just a lot of guesses the wish list cool but that's going to help you with the protections to know how much funding you're going to need to ask for yes yeah when you go for funding okay, cool. Well so I know that you guys air some of you have started into the mullahs in which is great on dso all kind of tee that up and we'll have a little bit of time for that and then I think we're going to head into a break so you can kind of work through that and we can work on this as we come back to so with the green stickies that's the lula flowing in and so this is all the ways that you bring in money for your business so they can be you know, one on one clients might be uh a workshop for lips you put like weighs a q I want to yes ok I love that you're saying that so it's helpful to do like kind of currents of your ari in business which I know many of you are you can do all the things that currently are bringing in money appear and then if you have like like francis of what write a book and so you can maybe put that down toward the bottom and then maybe start or have some kind of indicator that its future will it make method so it is helpful to have those on here even though he said it's for the year also to include any future ones and that really excites you right which it does I think francis yes um so that's like you'll see in this example licensing program e book kits is at the bottom here with stars so perhaps you know in this example those air future moula making methods okay and we'll talk a little bit more about different moviemaking methods in a bit to give you ideas but I wanted to just have you guys do it and if rained up what's top of mind now and then we're gonna help you flush this out even more okay questions there we do have a question from alison's I photography to include expenses that you don't have yet but hope to yes such is like future studios yes, I love that so it's kind of similar to what I just said about future ways to bring in money if you know that you're going to need to invest in your business is in a certain way to make those future things happen definitely put that and I would maybe put it lower on the page and star it so that you can see that it's separate in its from later but it's helpful I love that you guys are thinking, you know way out there you know, in accordance with your big vision, which is great I didn't want to like throw that all out at once because I know it could be overwhelming so I wanted to start kind of in this year but love that you guys were bringing in the future too because we are wanting dicks scan and grow our business longer term so that's going to be a way that you can kind of delineate and not get super overwhelmed about the number of studies on your middle of thie other thing that I want to say about mullah coming in is it's up to you how ground mueller you want to get here on the move them out because sometimes that can be helpful like maybe have one o one clients right and that's you know, singular sessions and then workshops you know might be workshops and you know that you actually have different kinds of workshops like for example for myself there's right brain business plan workshop I just did. When? Like, great brain product development workshop, which is totally separate. Right? So if you wanted tio instead of just saying workshops, you could actually do you know, the two different workshops that you have or you know about or let's say, you're a jewelry designer and you could put bracelets, necklace hearings if that's kind of how you track or you want to track what things are making more money or not, or you can keep it more general, that makes sense. Okay, we have a question from crystal. What if most of your money comes from another business? Uh, I would think of you two different money maps with little naps. Yeah, exactly. I have a couple of granular questions. Yeah, and? And he says I'm sorry. That wasn't that one. Somebody asked about hope square root photo. How do you account for trading services like law consulting for a photo shoot, for example, I know a lot of people in the beginnings of the tea partier and doing trades. Yeah, I think that is a great question. Because there's, no money exchanging hands in the accounting. It's not going to show up. I actually like, if you are going to bar and you can do the equal exchange, actually figure out what the number is and write each other a check so that it does show up in the books and it shows up as a county and it shows that you brought in income but it still is equal, right? That could be a way if you want to track it to do that and I personally like that because it's legitimizing your businesses, right? You want the money to actually be exchanging? Um, I know some people think otherwise that I'm kind of a fan of hey, if you're in business, let's actually write each other checks let's make my your mortgage, you know, because you treat five it's good, it does legitimize it exactly exactly. So I think the key there, if you are going to barter or do a trade like that is making sure that the service or product that you're swapping that you're clear about the value so let's, say, and I did this before when I was coaching someone and my coaching sessions were slightly more than personal training, right? So then the personal trainer I had, like maybe a few more sessions with a personal trainer so that it was equal in terms of the monetary value, so you don't need to just say like, oh, I'm a coach and your personal trainer let's just swap five sessions and five sessions if monetary value is not the same right to be clear on that, francis so I have a question about do you have the spreadsheet? Yeah, I meant to say thank you yeah, so they like I pay my student lawn every month and I don't know if you can answer this question, but it is something that I went to school to become a profession now I'm in my own business so I don't know if that's something that I get to count as a business expense I pay for it personally, I don't have anything like that, you know? I totally know what you're saying yeah it's more of a c p a question yeah, and I think for myself personally when I was going through my training but stolen my corporate job so I was doing it as personal and I didn't have it all separated yet, but certainly now when I do any training business deal with the business card yeah, where their questions because cat and I think we've covered this but again maybe just clarify how far ahead is it sensible to project feature your income that we hope to achieve? I like to do it at least like since its january thing it's great to do for the year out I certainly do that it could be helpful if you'd like to say like, oh five years from now, where do I want to be I think in terms of figuring out how to make that happen, that could certainly be overwhelming, especially if you're just starting out I can feel really far away, but if you have been in business for a while you kind of understand that growth patterns of your business I think projecting out five years could be very strategic so it's up to I don't know what the current situation is but I think if it doesn't overwhelm you go for it we have another question from anne and the audience how do you go about finding an accountant bookkeeper? What questions do you ask? Yeah, we're actually gonna head into that when we talk about the team yeah, we just have a few more minutes before break time okay, so so how are you guys doing here in studio? Super fantastic what super fantastic about this I just I really enjoy thinking about how the nuts and bolts of the business they're working because they bring clarity what? What those pieces are even if you don't know exactly how they fit and exactly what the numbers are because they fluctuated exactly it's just really fun because it feels like I'm getting in and making it kind of building something you're building something for suri and these air you're building blocks to make it happen on your empowered because you now know what cool you know you're gonna share ice realized how many how many, like, I have such little ways of bringing moonlight. And right now that I'm really excited to, like the future wearing these, yes, like, visually and, like e girl e think that's. Another one of the powerful things about doing this visual map. And hopefully guys at home can see this. I think it's kind of the case for most, is, like most have a lot of pink stickies, right? And then the green feels less, although the green value might be a lot more than each of the individual pink one.

Class Description

Learn how to grow your business in a profitable, sustainable way using that unique, imaginative brain of yours.

Join 6-figure success coach and best-selling author, Jennifer Lee, for "The Right-Brain Business Plan" - a class dedicated to mapping out your business plan in a creative and visual way that is both fun and simple.

In this class, Jennifer teaches you how to craft a business vision and takes you step-by-step through the planning process. You’ll learn how to select a business team, manage your money, evaluate the competitive landscape, and much more. Jennifer will help you develop a clear idea of how to set and achieve your business goals while using your creativity and having fun.

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