How "The 30% Rule" Changes Your Business Finances

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How "The 30% Rule" Changes Your Business Finances in your Landscaping Business.
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I was terrified to save 30% of my profit when I started my landscaping business just to pay for taxes. That seemed impossible. I was worried that I would be left with nothing. However, my friend, Scotty, pointed out that the consequences of not paying my taxes would be much worse. So, I had to increase my prices to be able to pay it and still have some money to save.
Today, let me share a few things I did to be able to afford my obligations without breaking my bank account in this episode. My life was literally altered by it, so I'm here to share it in the hope that it will change yours.
“Save 30% of all gross profits, because saving 30% of all gross revenue, that’s insane. Because what if you have a business that’s only a 20% gross profit margin? You have so much overhead and so many materials. That doesn’t even make any sense. So, 30% of gross profits makes more sense.”
- Keith Kalfas
Why do you have to listen to today’s episode.
00:13 - Here, I share the story of my first encounter with the 30% rule. Tune in to know how it changed my life.
04:16 - I used to work for 80-90 hours a week so that I could save. I ended up over-saving, and then it became a habit.
06:15 - I was supposed to save 30% of the gross profits, but I realized I saved 30% of my gross revenue. So hear me out as I talk about the 50% rule.
11:40 - Open up another bank account for your business savings, and remember to save 30% of all your gross profit.
13:02 - I’ll be having a new program called Business Money Basics. Visit this link to know more.
Key Takeaways
“This habit of just obsessively saving - sad and embarrassed to say - out of fear made me always have way more money than I ever needed.”
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My Website: Official Site Keith Kalfas
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Опубликовано:

14 окт 2024

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Комментарии : 86

@tidygardenbeds 2 года назад

Thanks for the info, I am in my first full year of business and was looking for a little tax advice, so thank you...BTW, it was about this time last year when one of your vids caught my attention and like many others our there, you gave me the courage to start my business and I couldn't be happier, thanks Keith!

@WindowCleaningBluePrint 2 года назад

Awesome. This is Keith Kalfas on my other channel. The Window Cleaning Blueprint.

@keith-kalfas 2 года назад

Hey guys, hope you enjoyed the video. Here's the link to the BUSINESS MONEY BASICS Course I referred to. www.keithkalfas.com/store/23owoAc7 This course will teach you how to: -Create a Budget -Pay Yourself The Correct Amount -Create Strict Financial Rules for Yourself and your Business (that even you are not allowed to break) -Learn How to Read A Profit & Loss Statement -Learn how to structure your business

@GTFCEO 2 года назад

Loved, Make. This rule and never break it. This said, its fact, true, the only way to go about it

@RafaelRodriguezROS 2 года назад

The way gross profit works is if your job is $1000 total, that is the 100%. So if over head cost you 50% of that $1000 leaving you with $500, your total gross profit is 50%… you’re totally right Keith.

@bondpit8750 2 года назад

If you guys are also working on the job, do you figure your own personal wages, (whatever hourly rate you determine for yourself) in the total job cost? If not, then gross profit is not really gross profit because it includes your wages in the total.

@littlespressurewashing 2 года назад

Great video brother 👍 Very important info 🙌 U can never go wrong when saving 💯

@josephwarren-cn7ql 9 месяцев назад

Keith, you make me laugh 😂 I needed it 🙌. I love watching this videos you posting, got a lot of great lessons from it, it’s really helping me how to think and putting it to action into my business. You’re authentic bro🤙. Thank you again! And God bless your business!!!

@stephenhenry8893 2 года назад

Thanks Keith, starting over at 67. The details you gave was what i was thinking. Continued success to you and wife. I pray for you, in the name of Jesus...😊

@bondpit8750 2 года назад

It’s never too late to start over but it takes a lot of faith and fortitude. May you be blessed along the way.

@ericstinnett9182 Год назад

Great video great information.. I have a question ❓. Do you have a video or advice on being on a full time job, having part-time Lawn care business. To going full lawn care leaving a full time job? Thanks

@marcialrojas2304 Год назад

My friend, thank you very much for the information, since in 2023 I will start my business the same as you do and it will be the first year. I hope in God everything goes well. God bless you for the time and the information.

@PGSL-r5n 2 года назад

It's taking me 5 years to finally grasp quotations and time frames to complete jobs. Rehearsal and repetition is key to making money. As juniors we must feel the burn and learn quickly. The current war with Russia and ukraine is really helping with preparation and challenging me to raise prices. A few customers have left me for this. However better paying clients have been filling in the gaps

@ruben_7766 Год назад

Just getting started opening up my Landscaping company, not yet going full time. I’m still trying to learn how to close a deal with clients. Nowadays everybody wants a quote over the phone but it’s impossible for this business, anyways wish me luck and thanks for your wisdom.

@crappieking2277 2 года назад

Dude you are awesome! It’s so cool that you care about not only urself succeeding but everyone else too. What makes u even cooler is that everyone knows you made it out of the mud! I am very thankful for people like you.

@terrence777 Год назад

Very helpful 🎉

@evanrichardson8714 2 года назад

I’m working 3 days out of 7 for myself with the spring rush I could go fulltime prolly but I need my 13 year job to get financed for a better truck. Dump truck I think. I have a truck now it’s just not great. Does the job. But just bought a walker mower cash. It’s looking up. I gotta just do it. Ahhhhhhhhhh

@Premier_lawns_official 2 года назад

Great video Keith. I joke that being self employed or running a business that money in the bank is never yours

@jameswhite4305 2 года назад

Hey brother, great video guiding people.

@rickstafford5316 Год назад

Good stuff! Great info. Thx

@joshuadenheyer4008 2 года назад

You have inspired me. In more ways then 1. I have my business because of you and I am thankfull. Eventhough you have no idea who I am. You are 1 of the guys that inspired me and helpt me build what I have today. Thank you Keith

@keith-kalfas 2 года назад

I'm right here bro. Thanks Joshua. You're welcome. 🙏 sounds like you're crushing it.

@joshuadenheyer4008 2 года назад

@@keith-kalfas I am doing good. Is there a way I can send you an email some time? I have a few questions I'd like to ask. If that's oke with you at least. I underatand and know you are busy.

@Josue-os2nl 2 года назад

CHief Kieth. 😄 The content is much appreciated sir. Onward and Upward.

@michaelhahnjr2677 2 года назад

Great content! Thanks for sharing.

@Somervillelandscaping617 Год назад

Thanks bro 💪🏼💪🏼

@Somervillelandscaping617 Год назад

You literally speak on every topic a landscaper could think of asking.. thank you for continuously caring for our growth. God Bless Brotha

@t3_servicesllc Месяц назад

Another good vid! I’ve been wanting to open a savings account. I’ve got a business bank account already. What kind of bank do you suggest for a business savings account?

@jakejenson6154 2 года назад

Fantastic video so well communicates.!!!

@AztecDread 2 года назад

Thanks! I just pulled the trigger and used my Bitcoin profits to buy a truck, trailer, equipment filed and got my EIN, so what do you think my next step should be? (Advice from anyone welcome 😃)

@keith-kalfas 2 года назад

Friggen awesome bro 👏

@locallandscapers3257 2 года назад

What you're explaining is similar to profit first, if you haven't heard of it, check it out.

@kimberlymcdonald8653 Год назад

I love the Profit First system! I just started the Relay online banking account, they partnered with Profit First making things even easier to stay organized...can easily make up to 20 accounts for free too.

@MandEmma7 Год назад

10 plus years in, how much time do you have for family?

@bwflo4 2 года назад

👏🏽👏🏽👏🏽crushing it brother thank you for yet another nugget of knowledge!

@keith-kalfas 2 года назад

Thanks bro. Appreciate you.

@bblawncarekc 2 года назад

You can’t afford not to save for taxes bro, great advice!

@geeveekano 2 года назад

Love this

@ChevyShawty 2 года назад

P O W E R F U L L ‼️

@Lawn-Stewards 2 года назад

I like Lowes a lot as well so congrats on that. Is it just me or does their store just seem cleaner and more organized than Home Depot lmao 😂

@paulgreenleaf600 2 года назад

Don't be sad and embarrassed fear is an excellent motivator especially in the beginning...it probably saved your ass in the end. Some of the biggest leaps and bounds started with being scared to death and putting the pedal to the floor. Our story is identical lol. I find it so funny looking back years ago I was plugging in 200 ft of extension chords and a bright orange black and dekker hedge trimmer on the first couple jobs. I was BROKE back then..

@dalekay9ine 2 года назад

Three 33s is 99, not 100!!! Haha I get what you're sayin though.

@nickmedugno3031 2 года назад

So if you made the 30,000 and put the 10,000 away around what would you have to pay in taxes and how much would you have left over ballpark numbers. And congratulations on the sponsor from Lowe's I use Husqvarna weed wackers and they're great.

@JB-wz1zy 2 года назад

I look at it like this. 50% of 500 is 250. 100% of 500 is 500...right. so 100% profit margin markup on a job that is 500 in materials would be 1000. A retailer at a boutique typically wants to markup a product at 50% for profit margin. but we also provide labor to Install said product so we charge 100% markup for profit margin. thanks for your humility and your question bc it's a got me thinking.

@keith-kalfas 2 года назад

Ahhh yes thank you. 😊

@Janedoe-hw6sp 2 года назад

U rock. Truly respect. 👏👍🙏🙏🙏💪

@keith-kalfas 2 года назад

Thank you and you're welcome.

@jakebankx2082 2 года назад

ive been in business for about 1 month and made 2 X what i was making in a 9 to 5 but im at a point where i need to scale a little and find a way to get more clients , but im still under the table for say so im not sure the best way to do that , if you got any advice for me id love to here it .

@AnthonyW314 2 года назад

Yeah lowes is ok.at least they still have some veteran discounts.

@shaunsmuder1637 2 года назад

You keep it real brother thank you.

@lavalleeturfcare7523 2 года назад

What happened to Saturday quotes dawwwwg?

@sawyerspain5396 2 года назад

Bunch of good tax knowledge in this, love it 👍

@keith-kalfas 2 года назад

Thanks Sawyer you're welcome.

@dcwshoreline5416 2 года назад

30% of all gross revenue, (thats crazy) 🤣end quote. I have been doing this Keith, With accounts for each Income Taxes Owners compensation Profit Total opex I like the 30percent of gross profit and not of top line.

@cheyannelandscapingllc3343 2 года назад

30 30 30 % 333

@michaelslifecycle 2 года назад

Over saving isn’t necessarily good either. Especially with inflation, you’d be better off using the extra savings to reinvest in other things because the buying power of that money sitting there is constantly going down.

@keith-kalfas 2 года назад

Yes yes. This is driving me crazy right now. You're absolutely right. Thanks Michael.

@michaelslifecycle 2 года назад

@@keith-kalfas Of course! Thanks for the videos Keith!

@kendavisbiz 2 года назад

Whiteboard Chronicles

@radiantlawnmaintenance 2 года назад

This the year for me, thank 💪

@gmlctv5572 2 года назад

It’s 50% gross profit. 100% markup.

@keith-kalfas 2 года назад

Ahhhhh YES. Thank you for this clarification. 🙏

@gmlctv5572 2 года назад

@@keith-kalfas yessirrr

@BigdaddiZ 2 года назад

I think people are thinking the about price increases when they say 100% profit. To me 100% profit would be all profit lol.

@JardinFoto 2 года назад

Here in France I'd be happy if it was only 30% - this country has among the highest taxes in the world ☹️

@bondpit8750 2 года назад

Got to pay for all of those ‘immawants’ and your socialized medicine too.

@punisher6 2 года назад

If you take $500 and add 100% to that it is $1000. Same difference, informative video bro keep up the good work

@keith-kalfas 2 года назад

Interesting point. Thank you for this insight.

@RafaelRodriguezROS 2 года назад

Yes that is correct but the way it works is if your job is $1000 total, that is the 100%. So if over head cost you 50% of that $1000 leaving you with $500, your total gross profit is 50%

@punisher6 2 года назад

@@RafaelRodriguezROS exactly. But when figuring a job there is no way to know if it is $1000. The concept of figuring a job is to estimate the overhead/expenses, labor and material (or $500). Once that is determined, add 100% to the job by doubling the price.

@lukestevens8402 2 года назад

If you have a $500 cost and you marked it up 100% then that’s where you come up with 1000. However you are correct that 50% of the overall revenues of the job is your gross profit if you double your cost to come up with your total gross. That probably makes no sense but basically you’re talking about two different things. One is your markup which is 100% and one is a calculation of your gross profit of the total job which is 50%. I’m like you, I love the numbers and percentages in business even though I do not like accounting :-)

@RafaelRodriguezROS 2 года назад

@@punisher6 in order for it to be 100% profit you would have to charge $1500, because that $500 in overhead is a negative. I know the math might be confusing to some but it’s how it works. $1000 minus $500 overhead is half of the total price, equals 50% gross profit. Let’s go simpler, if your overhead is $100 and you charge $200 you’re going to make $100 dollars profit. It’s still 50%. In order to make it 100% gross profit, you would have to charge $300, because 300 minus 100 over head will be $200. Meaning you got your return in the overhead and made that much as well. Meaning 100% profits.

@GTFCEO 2 года назад

I'm digressing... Stil... Love it man, yall want real results? I saved every paycheck last year Manscaping, bought a second lbz duramax, from the other side of the US, never seen snow. I plow in winter, she was an investnent for my landscaping lifelong supplemental income( i like to say keeping my mental. Dad and bro are Dr's ; im the dumb lawn mower brother who can turn your castle into your peaceful serene fortress, ur proud to call Your Own

@archiemegel1013 2 года назад

Hey kieth I haven't seen your videos in about a year, Whats with the corny back round music ? Lol My cussin ran a body shop for 8 years and never ever paid tax , he went from driving an old beat up chevy he's now driving a Bently and his 4 sons are also driving Bentleys lol He went from assy to classy lol I think anyone could get away with out paying tax for a while But getting caught is prison lol

@josephpasquarella878 2 года назад

If you instead put yourself on payroll and stashed all the extra profit into business account, or poured all of it into real estate investments, you wouldn’t need to save jack for taxes. Chances are you’d get a tax refund lol. Millionaires and billionaires do it all the time.