Joe Gallegos, CPA

Thinking equity as opposed to income is a subtle, often-missed wealth breakthrough because of it's apparent paradox at first glance ->

To be wealthy most people assume that you need to make a lot of (income) over and over, on the contrary wealthy people are vested in unrealized assets that appreciate.

That's a BIG distinction, very BIG. In business it translates to this: Your income ( how you get paid for what you do WILL not ever make you wealthy, this usually supports lifestyle and a little retirement), however your EQUITY can make you very wealthy. Equity being what your business is worth to a potential buyer.

This effects EVERY decision once you shift to EQUITY THINKING.... Questions as: "What systems do we build? What assets do we invest in? What client experiences do we coordinate?" have difference answers.

If income thinking: "That cost too much! will effect our profits! will effect how much I get paid this year!" = not happening

If equity thinking: "How does ENHANCE my equity?" "How does translate to EQUITY value?" The more complex, the better customer experience = the MORE valuable = WEALTH.

BIG, BIG difference!

Mysteries of life that are worth solving and applying to your business (or ask your adviser since they hold they keys to what factors make the most valuable companies in the world)

1) $5 coffees (Starbucks)
2) 20-30% premium price on groceries (Whole Foods)
3) spending 140%+ more than budgeted when you get there and don’t complain (Disney)

Q3 = Recovery, Q4 = Growth, All of this = TAX PLANNING. Buy my book. Save taxes. Get ahead.

https://joegallegos.com/collections/books/products/confessions-of-a-tax-planning-man

How To Cut Taxes 20-30% In 67 Days Or Less Even If You Already Have A CPA

https://joegallegos.com/collections/books/products/confessions-of-a-tax-planning-man

A valuable business has all of the following:

Lead systems
Nurturing systems
Conversions systems
Follow up systems
Accession systems
Retention systems
Referral systems

How many does your business have?

What's your ASQ score?

https://joegallegos.com/pages/attractionsystemsquiz

-Joe The Pro

Value = complexity. Simplicity = easy to duplicate, thus not valuable.... Why do CPA firms sell for 1X?

And complexity in business systems more over.

Because their business model relies 99.99% on human capital.

And having all-stars run your business is actually one of the biggest weakness of any business.

Humans get sick, complain, make bad decisions, leave you for your competitors, steal your trade secrets, sue you, get married, have kids and want a change of lifestyle.

It's much much more valuable to have a machine that can run with ANYONE running it.

All (not most) CPA firm could never do this.

Think Dallas Cowboys v New England Patriots

Dallas Cowboys = Lots of talent, not a lot of championships recently

New England Patriots = "Next man up system", lots of championships

Now, you still need talent - but a business with a plug and go system like the Patriots, at least 2-3 multiples in EBITDA more valuable.

How This Entrepreneur Raised Himself From Trailer Park to 7 Figures - Straight Talk With Michael Cain

https://anchor.fm/dashboard/episode/eg2g9c

The income business is easy. The question is how do you create a valuable business?

One that is worth 5-10X when it's competition sells for 1-3X?

That's the difference between "having money" and "being wealthy" -

It takes more work to increase lifetime value, average transaction values, and frequency of transactions (valuable)...

Than to just get another customer (not valuable).

It's a 180 degree mind-shift -.

If you ask our marketing personnel who we aspire to replicate --- we think of Walt Disney.

How the heck can an accountant emanate Disney?

Simple. Here's one example -

Consider this -

When someone shows up to your office? What happens?

For us, the show begins -

"Hello, Mr. Garcia - what kind of beverage would you like as you wait for Mr. Gallegos?"

Compare that to your local accountant. " Hi, Let me go get Joe"

Simple, yet powerful shift.

Value is not an accident.

It's a theory. It's a strategy - for which there are designed systems to accomplish.

How can we be the most valuable accounting firm in Houston?

That's the question.

Now how can we make more money?

Because the first means you have to put the client experience first.

The second means you cut corners that result in more short-term profit, but less long-term value.

-The Outlier CPA

Who else are loving the CROCS charms? My kids love the new charms. There's also a really good lesson in growth there if you look closer.

Why Crocs Are Exploding Again Even In A Down Economy Has anyone noticed the funny looking shoes that used to be famous and then seemingly disappeared? ...CROCS If you haven't noticed their resurgence, then how about a 3X Stock Price In The Last Two Years? Because of that I wanted to break down the

The forces of supply and demand apply to you.

There’s one of you. Supply is constant.

Therefore, to attract higher fees, the key ingredient is to increase demand.

Think supply and demand here.

Notice, I said “attract”, not demand. Higher fees come as a consequence of the forces of supply and and demand.

It’s not something you have to force.

In fact a great marketing system eliminates having to force anything.

If you want to stop feeling abused after a rejected proposal, lack of leads, lack of new clients (when you want them) and start feeling powerful - you need a system to increase demand.

The next question? How do you impact demand?

—> curious? Check my headline for info on where to get a free income explosion tip sheet.