Pandemic Wealth Email Archive

This guide will help you win the fight for cash flow in a pandemic. Whether your business is struggling to maintain pre-virus cash flow levels, or if you're experiencing a period of rapid growth, we'll show you how to increase your cash flow, accelerate your growth, and bank your wealth.

Disclaimer: The opinions expressed in the Your Big Bank blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry.

Winning the Fight for Cash Flow

Written by Ousmane Toure
3 minute read - 8 minutes if you take notes.

Welcome to the first email in the “Pandemic Wealth” Series of the Wealth in the Bank Newsletter.

This series is for people that have opted in and want to read what we have to say. If you are receiving this by mistake or would like to remove yourself from this series, click HERE. No biggie. We only want you to receive these emails if they are useful to your moneymaking efforts.

Now that we have that out of the way, let’s tackle the issue at hand. This year has been one for the history books: a pandemic by a strange new virus caused a worldwide economic recession during an election year in the United States. I could keep going but we all know the reality of the situation.​

If you have been a business owner at some point during this time then you may have been faced with one of two realities.

  • The first reality is that you are struggling to maintain your cash flow at levels you experienced before the pandemic.
  • The second reality is that your cash flow has gone through the roof and is making it’s way to the moon.​‍

- - - If you’re experiencing the first reality (low cash flow), we’ve put together a shortlist of recommendations for you to improve your cash flow. This is also going to be applicable to you if you are experiencing the second reality (excellent cash flow).

We’ve also added a recommendation for what you should do if you are experiencing the second reality. In any case, you’ll want to read the entire email if you want to maximize your chances of leaving this recession in one piece. - - - -

Cash flow is a tricky thing, because of the global pandemic/recession, a lot of people using the word, but I suspect there aren’t a lot of people that really understand it.

In principle, cash flow management is based on two ideas:

  1. Buy low and sell high.
  2. Focus on how much you keep and not how much you make.

When you follow these two rules at all times, it becomes difficult to lose in business. However, these two rules alone won't automatically tell you what to do in every situation so we've brought you a list of some practical applications.

In practice, there are three ways cash can come into your business: normal business operations, positive investments, and borrowing money. For today’s email, we’ll cover only the first part. The other parts will be covered later in this series.​

If you’re struggling with cash flow, here’s a list of 7 things you can do to improve it:

  1. Increase Your Prices: this has a multiplier effect throughout your business since every sale moving forward will bring you that much money.
  2. Encourage Payments: To accomplish this you might do anything from setting up payment plans, subscription services,
  3. Get Paid Faster: Singing up a client for recurring purchases with your merchant service is the top way to do this although there are at least 10 others.
  4. Optimize Your Inventory (or Billable Hours): Create a forecast of how much inventory or staff you’ll need to fulfill your products or services.
  5. Cut Costs: Review your expenses and get rid of anything that you don’t deem to be necessary.
  6. Delay Expansion: Ask yourself how long does it take for a $1 invested in your business to generate a return. If you will run out of cash before that time, then delay your expansion. If you don’t know how to calculate that time period, that may be a sign to wait.
  7. Lease: If you can’t afford equipment upfront, lease it while you increase your sales.

If you’re not struggling with cash flow there are 3 key things you can do to improve your cash flow:

  1. Reinvest in your Business: Find high ROI areas of your business and reinvest into those.
  2. Bank the Money: Find Low-Risk investments where you can place your money and watch it grow at a rate higher than inflation.
  3. Invest for the Future: Invest any excess money into retirement designated investments, whatever those may be.

In order to make the most of these recommendations, you’ll need to start with a cash flow forecast. This is going to inform you of your current situation. Once you can diagnose the problem you are experiencing, you can use one of our ten recommendations to improve your cash flow.

Good luck putting more cash in your bank :)

Until next time.

- Ous

Financial Statements for Government Grants & Loans

Written by Ousmane Toure
4 minute read - 9 minutes if you're taking notes.

We're back again today and we're going to start off a little different but FIRST a little housekeeping.

This series is for people that have opted in and want to read what we have to say. If you are receiving this by mistake or would like to remove yourself from this series, click HERE. No biggie. We only want you to receive these emails if they are useful to your moneymaking efforts.


Everything in life is about sales...read that again. That has as much to do with finance as you may or may not realize...but what do sales come down to?


One little dirty word: negotiation. Without too much filler let me get to the point. Everything can and will be negotiated. So understanding how a negotiation works is key to getting what you want.


Negotiation = you tell me what you want. I agree with what I can deliver. If there's a good enough match then we have a DEAL.


This email is meant to give YOU an IDEA of how to DEAL with government agencies when you want them to give a LOAN, A GRANT, A TAX BREAK, or any other type of benefit.


In this case, we're talking specifically about Grants and Loans.

Know that the government "by the people, for the people" - Abe Lincoln
(I put this in quotations for obvious reasons we won't talk about today hehe)

Anyways this means they have to have some measure of accountability. When you are asking for money from the government you are negotiating with representatives elected/appointed "by the people." SO in order to have some sort of oversight they use the universal language of money to communicate.

I'll admit it. In my personal opinion, giving a loan during a pandemic is a tough job. How do you determine that someone is struggling right now but they won't be struggling in the future?


Well what has been the universal consensus this year is if a business

  1. Was making money prior to the pandemic.
  2. Is still making some money right now.
  3. Has a need for money.
  4. Has all of their required documents filed?

..then they deserve a chance to make it out of this completely unexpected pandemic.


And since it doesn't look like we're going to get out of this pandemic anytime soon.


You have better get ready to receive your share of the pie next time.

Remember what said earlier. Everything is about sales. And sales is about negotiation. IF you AGREE to give the agencies offering loans and grants what they ask for, then more than likely they will give you want: MONEY.


And the things they usually ask for are:

  1. Financial Statements (Income Statement, Balance Sheets)
  2. Tax Returns
  3. Strong Personal Credit

The first two are the byproduct of the regular accounting cycle. Evidence that you speak the language of money. Evidence that you are running a sound business.


Evidence that a government representative/agency can give to the "people" to show them that they loaned their hard-earned tax dollars to the right people.


So make sure before the next round of stimulus is released you have your business documents ready and organized. And update them every month.


See you next time.


Big "OPM" Ous

Risk Management for Business Success

Written by Ousmane Toure
2 minute read - 6 minutes if you're taking notes.

I think you're gonna love today's email. It has a very practical tool for you to get results in your business.

This series is for people that have opted in and want to read what we have to say. If you are receiving this by mistake or would like to remove yourself from this series, click HERE. No biggie. We only want you to receive these emails if they are useful to your moneymaking efforts.

This year has proved to be one of the most volatile in decades. As business owners, we are experiencing some of the toughest market conditions. The pandemic has made everything more uncertain.


While some have shifted into survival mode, a lot of business owners have started putting their focus on the most essential part of business activities: cash flow management. And rightfully so. Cash flow is the best insurance in the business.


And yet, so many small businesses have failed while the big tech giants have done nothing but thrive. Is there something tech giants know about doing business in a pandemic that small businesses do not?


We understand that they have multimillion-dollar finance teams on payroll and that they have a lot more resources than the average small business however the principles that guide business still remain the same. If the big tech giants are all applying the same principles, why not apply them to your business?


“You can never guarantee that you’re going to make a profit but you can manage your losses.”


Trust me. When I was an Investment Management Auditor at Deloitte and Touche I got to see it firsthand. The single principle that underlies all successful businesses is the same: manage risk. Manage risk well.


Famous CFO of Berkshire Hathaway CHARLIE MUNGER says that all good business owners should answer 3 simple questions when making business decisions.

  1. What can go right?
  2. What can go wrong?
  3. Are you going to be okay if things go wrong?

You can use this simple risk management strategy to cut actual losses, prevent potential future losses and MAXIMIZE PROFIT. In fact, those three simple questions have informed some of the biggest financial decisions in the recent history of the business.


It all comes back to the same thing.


Lose Less & Earn More.


And that's what sets Your Big Bank apart. We are more than just accountants here to count numbers and cents.


We leverage our knowledge of accounting and finance to help you apply the principles of risk management to your business, so you too can lose less & earn more in all parts of your business.


Best,


Big "Risk Management" Ous

Optimal Business Structures for Wealth Building

Written by Ousmane Toure
3 minute read - 8 if you're taking notes

Happy Monday. I hope you had chance last week to really soak in the ideas I sent in the first 3 emails of this series. This week we're going to bring it to a close.

This series is for people that have opted in and want to read what we have to say. If you are receiving this by mistake or would like to remove yourself from this e-mail list, click HERE. No biggie. We only want you to receive these emails if they are useful to your moneymaking efforts.

If you overdo the concepts inside of this email you may end up just like the guys in these two articles.

  1. Billionaire Cooperates with IRS on Tax Case
  2. Biggest Tax Fraud Case in IRS History


I only use this disclaimer as an example to what you could achieve if you go overboard. Everything has limits.

Systems have limits. They’re called feedback loops.

Negative feedback loops reduce the outputs of a system in order to keep it from going out of control just like anti-trust laws and taxes prevent any single business from making all the others go bankrupt.

With taxes, the more you make, the more you pay, in theory.

But in practices, earning more doesn’t always equal paying more taxes.

If you work with savvy accountant, then you may actually be able to pull off not paying taxes. I can’t talk about it too much because of NDAs but if you paid attention in my last email and you know my work history then you’ll be able to appreciate when I tell you that I’ve seen it being done.

And if you’ve paid attention to the news lately, then you know that even the U.S. President is doing it.

The first of many strategies to lower your tax burden is simple.

  1. Buy an Asset
  2. Use it to generate income.
  3. Write of the depreciation as an expense on your taxes.

Hint: this doesn’t actually cut into your cash flow.

If you execute these three steps correctly then you too can “avoid” taxes.

Go too far and the IRS might sue you for violating the spirit/color of the law. And they will come after you.

And yet, for those that execute this single strategy correctly, they can get away with Billions in tax deductions.

Here’s a very common example you may not think of:

Sports Teams build huge stadiums (real-estate) and generate income (tickets/concessions) and write off the depreciation.

BONUS: Sports leagues are non-profit while the sports teams are for profit. So if a team ever has too more income than depreciation they can always kick it back up to the league and get a payout during another year. And it can get more complex than that.

*deep breath*

YES! People are getting away with not paying taxes. And no one bothers them because they follow the “rules.”

If you’re planning to get wealthy you’ll wanna follow those “rules” too. Especially the 3 part system I gave you above.

And don’t stop with just reading this email. Go do some research.

Happy hunting :)

Big “Tax Avoiding” Ous