business

Start Selling Shovels

Has the current economy caused you to start panicking a bit? I know that we’ve all been hearing about recessions, experiencing inflation, and living in a world that is more confusing than ever. It’s easy to see why some of us may be uneasy, or even fearful, when discussing financial security. But preparation is always the best antidote to fear, and this post will (hopefully) give you ideas for how to create more security and stability in your finances.

It is never too late to start creating financial freedom. It’s always never too late to adjust current behaviors in order to be more resilient in times of financial difficulty. That being said, you can do one thing, today, to ensure that you have more financial flexibility in the future.

Start selling shovels.

I don’t mean that literally, of course. I mean that you should look at examples of exemplary people who thrived in the past, and use those examples as models for your business and success. The shovels metaphor refers specifically to the California gold rush of the late 1840s. If you recall from history, you realize many of the gold miners actually never got rich. But there was one group that made lots of money, and had no problem securing their financial futures . . .

It was the shovel salesmen. It actually goes beyond the shovel sales, though: anyone that offered secondary or tertiary goods and services to the gold rush hopefuls thrived during this period. Levi’s jeans can still be found in big box retail stores, despite Levi Strauss being deceased for over 100 years. The first shop opened by Strauss in California was in 1853, two years before the gold rush ended. His shop was under the umbrella of the shop his family owned in New York, but he moved to San Francisco in order to provide goods to the thousands of people that relocated in hopes of finding gold.

Strauss found gold without striking one shovel against dirt nor panning in rivers. The gold was in the shoppers, not in the mines. He provided tents, blue jeans (though this particular invention really didn’t hit its stride until the 1870s, 20 years after the end of the rush), bedding, as well as unlikely luxuries, like handkerchiefs and purses. An under-served but eager group of buyers were women, who, moving to California with husbands or male relatives, missed the comforts of their homes. There were also women who moved to California with the hopes of landing a wealthy husband that could provide the comfort and luxury they desired. So, while the miners may have been men, there were other customers that needed to be served.

Sometimes, you have to sell a purse along with a shovel.

What does all of this mean for you, dear reader? You aren’t living in the 1840s, or 1870s. You can get shovels, purses, and blue jeans from Amazon, or, if you’re feeling adventurous, a local in-person retailer. So, what can you do with this story?

Look for the gold rushes, then serve the hopefuls. Start by looking at the “hottest” ways to make money, and come up with businesses and solutions that serve the people that aspire to be the “Next Great” whatever. Give them the goods and services they need, and they’ll make you rich. I’d also advise to lean more toward services, since goods are often easier to find and harder to price competitively without taking a loss initially. But, if your heart is set on offering goods, then do what you must.

No matter whether you focus on goods, services, or a combination, find the shovels you need to offer, and start making money. You can do it!

That’s it for today. Please let me know if this helped, or if you have any questions or ideas that you’d like to flesh out with me. Take care, and I’ll talk to you all soon!

Take Advantage of the Summer Slowdown – Major Money Tips

Hello friends! We are roughly 6 weeks post June 15th, the most recent major IRS deadline for a large group of taxpayers. This time of year is generally among the slowest for tax professionals, and the perfect time for taking a well-earned vacation. Likewise, many business owners that have non-seasonal businesses may experience a slump in activity, as well.

Aside from going somewhere lovely for a vacay, there are a few other ways to take advantage of the summer slowdown. When enjoying this downtime, it’s easy to forget that there are things that can be done now, in order to make the remainder of the year a bit easier on you. If you’re lucky, taking action now may create some additional pockets of downtime even during the busier seasons! Here are some things both tax practitioners as well as taxpayers can do during this quiet period:

  • Start compiling the documents needed to complete the next scheduled quarterly estimated tax payment (for people that do not pay taxes through wages – the next quarterly due date is September 15, 2022)
  • Contact any clients that have filed extensions, and provide a quick checklist of documents to have before completing their returns. If they need to request missing documents, this is a perfect time to do so. If you’re not a practitioner, then reviewing IRS’s records for your most recent tax year is also a good idea: as a taxpayer, it’s helpful to know what figures and income statements IRS has, so that you can ensure that you have all of the documents reported under your tax ID number.
  • Conduct a review of 2022 business activities up to this point, and identify 1-3 areas for improvement. Come up with one small, concrete step that can be taken today, to move toward that improvement.
  • Reach out to clients to express appreciation for continued support (this applies to tax practitioners as well as individuals that have goods- or service-based businesses).
  • Start and finish reading one book related to your area of expertise. Select another book or two to read during the last 4 months of the year.
  • Digitize any paper records that have been missed, and save these documents in secure ways.
  • Find one thing to outsource either for the summer or the upcoming fall and winter seasons. Set up a payment arrangement to cover the outsourced service until the end of the year.
  • Set your remainder of the year goals (September to December goals). Get a head-start on some of those goals now.
  • Review your paper calendars (or digital calendars) for the past three months. Complete anything that was inadvertently missed.
  • Create a business vision board (I’ll be upgrading mine and sharing it in a future post).
  • Write out your business vision for 2023, and use the remainder of the summer, as well as the upcoming seasons, to arrange your affairs for a smooth transition into your vision.
  • Check on the completion status for required continuing professional education courses (CPE). Schedule and take those necessary CPEs while you have free time.
  • Review your current memberships and affiliations to see if you’re taking advantage of all of the benefits of being a member. If not, start using those perks today. If the organizations you’ve joined aren’t providing enough benefit, reconsider whether you should remain a member (cancel memberships if appropriate).

I am already scheduling most of these activities for myself, because these are tasks that I have been neglecting for a while now, and I know my life and business will improve drastically once I work on these. If you’re doing any of the things listed above, let me know about it in the comments below! I’d love to hear about your plans.