Fullstendig transkripsjon av Busy vs Profitable

00:04:37.600 Not, you know, the boring, dreaded fine print of version that everybody kind of rolls their eyes at, but the idea of what contracts provide. 00:04:37.680 --> 00:04:38.720 And I think about it. 00:04:38.879 --> 00:04:40.800 Think about it, what it's actually for, right? 00:04:40.879 --> 00:04:43.519 It's two people or two parties. 00:04:43.680 --> 00:04:50.000 They just take words that are floating in the air and turning it into something solid and real that everybody can count on. 00:04:50.079 --> 00:04:56.720 And it's basically the thing that lets total strangers trust each other, you know, enough to kind of build something together. 00:04:56.879 --> 00:05:00.000 And to me, that's kind of beautiful in a way. 00:05:00.240 --> 00:05:00.560 I know. 00:05:00.639 --> 00:05:02.560 I'm like, ooh, look at you painting with words. 00:05:02.720 --> 00:05:06.000 Like I'm over here, like, should I go to law school? 00:05:06.319 --> 00:05:07.920 I really do love the law. 00:05:08.000 --> 00:05:08.480 I always have. 00:05:08.639 --> 00:05:13.360 I love that it lets two people write their own boundaries for their own little corner of the world. 00:05:13.439 --> 00:05:17.600 And I love what it does for people on the inside, which is peace of mind. 00:05:17.839 --> 00:05:24.160 And you know, and I know that that's something you do a lot too, just through the event ledger and through numbers, right? 00:05:24.319 --> 00:05:24.720 Yeah. 00:05:24.879 --> 00:05:27.920 And because our memories are super terrible. 00:05:28.160 --> 00:05:28.800 We're humans. 00:05:28.879 --> 00:05:29.839 This is just what happens. 00:05:30.000 --> 00:05:36.800 We all remember things either the way we wish they'd happen, or a lot of people remember things the way they want to remember things. 00:05:37.439 --> 00:05:43.040 To me, a really great agreement takes all of that fear, all of that. 00:05:43.120 --> 00:05:49.279 But what if this thing goes sideways feeling and it quietly turns it into a plan that you can actually live with? 00:05:49.519 --> 00:05:52.319 I mean, it to me, it takes that unpredictable future. 00:05:52.480 --> 00:05:54.399 I am a planner, think about that. 00:05:54.800 --> 00:05:58.959 You know, it takes unpredictable stuff and it makes it more manageable. 00:05:59.040 --> 00:06:08.639 So yeah, I mean, give me a quiet office and a gigantic cup of pumpkin espresso and uh and airtight agreements that protect people. 00:06:08.879 --> 00:06:10.720 And I'm a happy camper. 00:06:10.959 --> 00:06:11.759 Happy camper. 00:06:12.000 --> 00:06:12.639 What about you? 00:06:12.720 --> 00:06:18.160 I mean, if you could be doing anything else, I feel like you did turn it into what you wanted. 00:06:18.319 --> 00:06:22.480 You know, you you took two things that you love and then you made a baby out of them. 00:06:22.800 --> 00:06:23.439 Yeah, yeah. 00:06:23.519 --> 00:06:28.879 But if if we wanna, if we want to stay true to to the the question, flipping the script, I can't cheat. 00:06:29.040 --> 00:06:33.120 So um, as you know, you know, I don't know if everyone listening does. 00:06:33.279 --> 00:06:36.560 I am a um Patty certified scuba diver. 00:06:36.800 --> 00:06:39.360 Uh I've made my way all the way up to a rescue diver. 00:06:39.600 --> 00:06:43.680 I am one certification away from being a professional diver, dive master. 00:06:43.839 --> 00:06:51.040 And growing up in middle school, we used to take trips to Key Largo, Florida, where we went on a science camp. 00:06:51.279 --> 00:07:09.839 And it was in the lens of marine biology, where we would we would go snorkeling, we would uh do rock shakes in the evening and get beakers and look at microscopic organisms that are found along the the rocks in the seabed. 00:07:10.319 --> 00:07:19.839 We would go out into the ocean and and and look at the stars because you know it's pitch black way out in the ocean at night, so you can see everything so clearly. 00:07:20.000 --> 00:07:26.319 We would do the plankton toes, which they're bioilluminescent, so they would glow in the moonlight. 00:07:26.560 --> 00:07:29.759 It was always so very entertaining to me. 00:07:30.000 --> 00:07:35.279 And um, I went as many times as I could before I it was always in middle school. 00:07:35.360 --> 00:07:38.959 So after I, you know, went into high school, that wasn't something that they offered anymore. 00:07:39.040 --> 00:07:41.839 But as many times as I could in middle school, I went. 00:07:42.079 --> 00:07:49.439 And so with that love of the of the ocean and that scientific background, I definitely think that I would have been a marine biologist. 00:07:49.759 --> 00:07:50.720 100%. 00:07:51.199 --> 00:07:52.879 You would have been great at that too. 00:07:53.120 --> 00:07:56.720 Of course, anything you touch turns to gold, right? 00:07:57.120 --> 00:08:00.879 Uh, but I mean, you're good at anything you try and put your heart into. 00:08:01.040 --> 00:08:02.319 I've noticed that over the years. 00:08:02.399 --> 00:08:05.199 I've known it, I've known you for almost a decade now. 00:08:05.439 --> 00:08:08.480 So it is definitely something I've noticed about you. 00:08:08.560 --> 00:08:12.079 But how fun! What a wonderful and cool thing. 00:08:12.160 --> 00:08:15.360 I can't say that many of us have ever had those same experiences. 00:08:15.600 --> 00:08:22.560 And who would have thought a a a guy from small town in Alabama would even have that ability to do something like that? 00:08:22.720 --> 00:08:29.040 So, you know, it's it's not about where you are, but it's about the experiences that you're able to encounter, right? 00:08:29.279 --> 00:08:30.560 Yeah, gosh, that's cool. 00:08:30.720 --> 00:08:31.920 I did not know this about you. 00:08:32.000 --> 00:08:32.960 I will remember that. 00:08:33.120 --> 00:08:34.159 I will remember that. 00:08:34.320 --> 00:08:35.919 I want to see pictures if you have pictures. 00:08:36.159 --> 00:08:46.720 Well, let's kind of dive in today

because here's where I want to start, because I think it's the real story underneath all of the spreadsheets that planners and coordinators are constantly dealing with. 00:08:47.039 --> 00:08:51.840 For so many of us, money isn't just a numbers problem. 00:08:52.000 --> 00:08:54.799 It's to me a little bit of an emotional one. 00:08:55.039 --> 00:09:07.120 There's this avoidance, there's this pit in your stomach that you know what, I'm gonna just deal with that later thing that turns into next quarter or turns into the next tax season. 00:09:07.360 --> 00:09:13.360 And a lot of the most talented creative people in our industry are quietly terrified of their own numbers. 00:09:13.519 --> 00:09:16.799 And I don't think people say that loud enough. 00:09:17.039 --> 00:09:22.080 So, Matt, listen, you opened the event ledger after being in finance for years and years. 00:09:22.240 --> 00:09:37.919 And then after running a successful wedding planning company, what emotional patterns did you see over and over again with planners that were either working around you while you were in that zone, or, you know, for planners and coordinators that you're working with now through the event ledger? 00:09:38.240 --> 00:09:43.600 When it comes to money, knowledge is not necessarily what creates the action. 00:09:43.759 --> 00:09:44.960 You're you're exactly right. 00:09:45.120 --> 00:09:57.120 When it comes to money, for some reason, it's always the emotional side of it or the psychological side of it that that really affects the way that people interact and they move with money. 00:09:57.279 --> 00:10:00.000 I I mean, I will I will be a hundred percent honest. 00:10:00.159 --> 00:10:05.360 And this is, you know, this is admitting something coming from someone that was in finance and that owned their own business. 00:10:05.519 --> 00:10:08.399 When I got started, I wasn't the smartest, you know. 00:10:08.559 --> 00:10:20.480 I I did, I relied on debt in order to get things that I wanted in the moment versus specifically planning for and getting to a benchmark where I could afford that thing and then doing it. 00:10:20.639 --> 00:10:31.039 So the way that you show up with money is a lot to do with how you are brought up, your experience with money or the experiences that you've seen of others around money. 00:10:31.200 --> 00:10:36.159 And so a lot of that can really affect the decisions that you make and how you move through it. 00:10:36.320 --> 00:10:48.720 But what I would say also is that when there is that fear, and interesting enough, Lori, I was reading a book the other day and research showed that there are two things that humans are actually afraid of. 00:10:48.960 --> 00:10:52.159 They're afraid of falling and they're afraid of loud noises. 00:10:52.639 --> 00:11:05.840 Everything else that we are afraid of has been learned, either through watching other people be fearful of something or encountering something of our own that has scared us and that we remember that situation. 00:11:05.919 --> 00:11:09.120 So we don't want to, our body is like, nope, we don't want to deal with that anymore. 00:11:09.200 --> 00:11:10.960 So we avoid it at all cost. 00:11:11.360 --> 00:11:14.159 And a lot of those things shape how we move through the world. 00:11:14.399 --> 00:11:19.279 And a lot of those things are fearful, come in the in the form of money. 00:11:19.440 --> 00:11:22.879 And it really affects how we we make money decisions. 00:11:23.120 --> 00:11:23.360 Wow. 00:11:23.519 --> 00:11:25.919 So it's learned and it try from our past. 00:11:26.080 --> 00:11:28.080 I love that you're kind of pointing that out. 00:11:28.240 --> 00:11:45.759 So maybe what we need to do, and I know this isn't like a therapy session or anything, but what we probably need to do is kind of go back into our past and look to see what was it that we're now kind of bringing from our childhood or what have you into our business today. 00:11:45.919 --> 00:11:51.440 I love that you named it because here's what I kind of want every single person listening to hear. 00:11:51.840 --> 00:11:56.639 If what Matt just said is you, you're not, that doesn't mean you're bad at business. 00:11:56.720 --> 00:12:03.279 It, but it what it really means is you're not even close to being alone because so many people are afraid of their numbers. 00:12:03.360 --> 00:12:04.960 It is an emotional situation. 00:12:05.120 --> 00:12:07.519 The avoidance is so common. 00:12:07.600 --> 00:12:09.039 It's almost the default. 00:12:09.519 --> 00:12:15.840 Now, I know that in you know our wedding planner certification, we talk about business kind of like a science experiment. 00:12:16.000 --> 00:12:22.879 I want people to hear that you're allowed to not have the formula being perfect on day one. 00:12:23.039 --> 00:12:31.279 Okay, that the whole point is that you get to kind of look at it and play with the formula, adjust it, but you can't adjust what you're refusing to look at, right, Matt? 00:12:31.440 --> 00:12:31.919 Yeah, yeah. 00:12:32.080 --> 00:12:32.799 Yeah, absolutely. 00:12:33.120 --> 00:12:35.759 So step one isn't to get a spreadsheet. 00:12:35.919 --> 00:12:43.120 Step one is just turning the lights on and deciding that you're allowed to see the numbers and looking at it without judging yourself for what's really there. 00:12:43.840 --> 00:12:44.159 Yeah. 00:12:44.240 --> 00:12:50.159 And and I think a lot of times, Lori, people they they feel overwhelmed by it and they're not motivated. 00:12:50.320 --> 00:12:52.799 So that just feeds into the avoidance. 00:12:53.039 --> 00:12:57.840 But what we fail to realize is that action really creates the momentum. 00:12:58.000 --> 00:13:06.159 You know, when we sit in inaction, that feeds our that mentality that, oh, yep, that like that's just too much. 00:13:06.240 --> 00:13:06.960 I can't deal with it. 00:13:07.120 --> 00:13:14.399 But once we actually start to open things up and look at it, it's never as

disastrous as we think it is. 00:13:14.559 --> 00:13:17.440 And something that I heard the other day was very interesting. 00:13:17.519 --> 00:13:23.440 It says clarity and confidence don't come before you act, they come because you act. 00:13:23.600 --> 00:13:25.679 Oh yeah, I know. 00:13:25.759 --> 00:13:26.960 I thought that was very powerful. 00:13:27.039 --> 00:13:31.919 And I think it's a great reminder that it does, it takes action. 00:13:32.159 --> 00:13:37.919 And but those things usually people will find that it's it's not as disastrous as they thought it was. 00:13:38.159 --> 00:13:40.879 It is actually an eye-opening experience. 00:13:41.039 --> 00:13:44.799 And some clients that I work with right now, it's so funny to see them. 00:13:44.960 --> 00:13:48.399 I will send them, you know, a question and they'll get back to me. 00:13:48.480 --> 00:13:52.000 And like, it's crazy how quickly they get back to me. 00:13:52.159 --> 00:13:53.759 And I'm like, wow, that was very quick. 00:13:53.840 --> 00:13:55.759 They're like, I'm just excited about this now. 00:13:55.919 --> 00:13:58.320 Like, I feel like I'm in control. 00:13:58.399 --> 00:14:01.919 And so, like, I'm whenever I hear from you, like I'm excited. 00:14:02.159 --> 00:14:12.080 So, and it's it's great to see that transformation of someone that was avoiding it totally to being actually energized and excited about the thought of moving forward with it. 00:14:12.159 --> 00:14:18.720 So if you have been avoiding it, just take the step, just take that first step, and I promise that motivation will come. 00:14:19.039 --> 00:14:25.840 I also think that you get some of the credit for that because you're making people feel comfortable with their own numbers and you're not judging them. 00:14:25.919 --> 00:14:28.960 You're really just saying, hey, let's look at it, and it's all okay. 00:14:29.039 --> 00:14:30.799 We're gonna we're gonna work through this. 00:14:31.039 --> 00:14:31.919 So I love that. 00:14:32.159 --> 00:14:34.720 So I'm gonna give you some of the credit of people being excited. 00:14:34.960 --> 00:14:35.279 Okay. 00:14:36.559 --> 00:14:43.519 So let's kind of get straight to the gut punch because I think half of the people listening probably just felt really seen. 00:14:43.759 --> 00:14:47.840 So let's say a planner or coordinator's calendar is completely full. 00:14:48.080 --> 00:14:54.159 Everything in their life, including themselves, thinks, okay, I've made it, right? 00:14:54.559 --> 00:14:58.480 And then they look at their bank account and it's just not there. 00:14:59.200 --> 00:15:04.399 So, Matt, what are the real drivers and the disconnect between being busy but not profitable? 00:15:04.480 --> 00:15:08.159 Is it ignoring true operating costs, treating owner pay as a leftover? 00:15:08.320 --> 00:15:09.519 What all of it? 00:15:09.679 --> 00:15:11.200 Is it are there more factors? 00:15:11.279 --> 00:15:12.240 What's your thoughts there? 00:15:12.639 --> 00:15:18.320 Yeah, I think, well, all of it is is certainly the answer, but I don't think it's a helpful answer. 00:15:18.480 --> 00:15:22.240 So, yes, those things that you mentioned are are really part of it. 00:15:22.320 --> 00:15:31.919 But I think where people really, specifically in our industry, where people come uh into issues is the cash flow because we are seasonal, right? 00:15:32.000 --> 00:15:39.039 And and this is something I talk about all the time because I don't think that people don't plan for their finances. 00:15:39.200 --> 00:15:41.200 They just, they just let it happen. 00:15:41.440 --> 00:15:45.120 And then, you know, they're like, well, we'll we'll figure it out once we get there. 00:15:45.440 --> 00:16:10.480 But if if we're making plans in advance, and and if we know that we're gonna be doing great in, you know, Q2 and Q whatever, three or four, or even Q1 doesn't look great, then we know that we can use, we can set aside those funds in a great period to make sure that we're not feeling that stress or anxiety in the slower seasons. 00:16:10.799 --> 00:16:20.240 And I think uh also a lot of people are not understanding that profit on paper doesn't necessarily reflect what they have to work with. 00:16:20.320 --> 00:16:22.960 And again, that's the cash flow portion of it. 00:16:23.279 --> 00:16:37.120 And so, you know, looking at what you are tracking uh on a on a on a monthly basis, and if it looks like you made money, it could be profit on paper, but that that cash may not be there for you to use. 00:16:37.200 --> 00:16:39.679 And I think that's very confusing to people. 00:16:39.840 --> 00:16:51.600 And then they're left with like, okay, uh, well, I saw this money come in, and my financials say that I made profit this year, but I don't have that money to work with in my in my bank. 00:16:51.759 --> 00:16:54.000 So I I don't I don't get what's happening. 00:16:54.159 --> 00:17:04.400 And a lot of that does come from those baseline operating things that that you have to consistently spend for to keep the doors open. 00:17:04.640 --> 00:17:09.200 Those come every single month, the same amount, if not more, these days. 00:17:09.519 --> 00:17:12.960 And, you know, you have to make sure that those needs are met. 00:17:13.039 --> 00:17:18.640 And then you have other things, you know, the more busy you are, there's going to be job-related costs that go into that. 00:17:18.799 --> 00:17:24.640 You know, as you have more events, you're probably hiring more day of staff, which is taking extra money out. 00:17:25.039 --> 00:17:35.279 And you weren't collecting those or those initial payments or even periodic payments or final payments necessarily in the month that you were executing the event. 00:17:35.759 --> 00:17:38.480 So that could have already been spent. 00:17:38.640 --> 00:17:47.839 And so now if you don't have any other initial payments or other payments coming in, you're left with, okay, well, I didn't have a reserve.

00:17:48.000 --> 00:17:52.640 So how do I make sure that my company is still meeting its obligations? 00:17:52.799 --> 00:17:57.359 So I think that's where a lot of the confusion comes into play. 00:17:57.680 --> 00:17:58.720 Yeah, you know what? 00:17:58.799 --> 00:18:00.319 I I think you're dead on there. 00:18:00.400 --> 00:18:05.680 I I hear this a lot from planners and coordinators that I'm mentoring. 00:18:05.839 --> 00:18:11.200 So you are 100% reading that market the same way I am as well. 00:18:11.279 --> 00:18:17.839 And I and I also think probably a huge piece of it is the habits that almost every single one of us starts with. 00:18:18.000 --> 00:18:35.839 I mean, one bank account where the client makes, you know, where we put all of the client deposits, if it's also mixed with our grocery money and, you know, all of these other things, if our personal and our business monies are swimming around together, that can be very, very problematic. 00:18:36.000 --> 00:18:39.680 I mean, taxes should not be a springtime surprise. 00:18:39.839 --> 00:18:42.559 You're not supposed to be like, oh, wait, I owe what now? 00:18:42.880 --> 00:18:49.599 I mean, so I think it's really important that people understand that it's not probably the most glamorous, right? 00:18:49.759 --> 00:18:59.359 But it's a very grown-up move to change the way you are thinking about and approaching your money and making sure that we're keeping it separate. 00:18:59.680 --> 00:19:01.440 You talk a lot about that. 00:19:01.680 --> 00:19:09.119 Can you just give people just a quick piece of advice on keeping it separate and maybe just a quick thing as to why? 00:19:09.440 --> 00:19:10.960 Yeah, I mean, absolutely. 00:19:11.279 --> 00:19:18.160 So number one, the biggest reason, Lori, is because the IRS is is gonna be looking at that, right? 00:19:18.319 --> 00:19:29.279 And it's and if they see that you're commingling personal and business funds, and if you are not consistently making a profit, they're gonna say, this isn't a business, this is a hobby. 00:19:29.519 --> 00:19:35.519 And and so they're they're gonna disallow all of the business expenses that you're claiming. 00:19:35.759 --> 00:19:41.759 So it's very important to have the structure in place to say, hey, this is a legitimate business. 00:19:42.000 --> 00:19:48.400 I am accepting funds in a business account, I am paying my business expense through my business account. 00:19:48.640 --> 00:19:51.680 And it also provides you with that visibility. 00:19:51.920 --> 00:19:58.880 It's it's very hard to figure out how you're doing personally and how you're doing as a business when everything is mixed in together. 00:19:59.119 --> 00:20:01.599 That's like trying to find a needle in a haystack, you know? 00:20:01.920 --> 00:20:08.240 And if you're not consistently tracking that stuff, then there's no way that you can figure out what's happening. 00:20:08.319 --> 00:20:11.519 Uh, but again, both in your personal life and in the business life. 00:20:11.680 --> 00:20:16.480 So it's very important that you keep those things separately so that you can plan accordingly. 00:20:17.200 --> 00:20:17.759 I love that. 00:20:17.839 --> 00:20:19.839 I hope everybody hears you on that, Matt. 00:20:19.920 --> 00:20:20.720 I really do. 00:20:20.960 --> 00:20:28.480 All right, so I kind of want to talk about pricing and pricing on purpose rather than on a whim. 00:20:28.720 --> 00:20:39.920 Okay, because this is the one that I could sit here all day on because I think it's where the whole thing kind of can either get fixed or it can get broken, and it's all about pricing. 00:20:40.000 --> 00:20:47.279 This isn't supposed to be built on a gut feeling or just what other people in your area are charging. 00:20:47.440 --> 00:20:53.839 You shouldn't pull pricing numbers out of thin air because it just felt right in the moment. 00:20:54.160 --> 00:20:58.079 Instead, I want every single one of our listeners to price on purpose. 00:20:58.240 --> 00:20:58.559 Okay. 00:20:58.880 --> 00:21:07.839 So what I have been seeing through a lot of mentoring planners and coordinators is that they're pricing simply on their gut. 00:21:08.319 --> 00:21:28.079 Oh, I think it's probably worth this, or I think I could probably get that, rather than considering how much they actually need to make while factoring in how many weddings they even want to take in any given month or year, while also making sure and understanding what their market can bear. 00:21:28.400 --> 00:21:39.920 So if it's okay with you, real quick, Matt, I kind of just want to have a little chat with our listeners because I want to walk everyone through the logic because it's so freeing once people see it. 00:21:40.319 --> 00:21:42.559 So you start with your survival number. 00:21:42.720 --> 00:21:50.000 What do you honestly need to make every month and you know, all year long to cover your life and your business? 00:21:50.079 --> 00:21:56.880 So, I mean, we got to think about the mortgage and the groceries and the insurance and the software and the taxes and the staff, all of it. 00:21:57.039 --> 00:21:59.279 That's gonna be your baseline, but you have to really look at it. 00:21:59.359 --> 00:22:02.880 You've got to Really determine what those expenses are. 00:22:03.039 --> 00:22:11.039 And I'm going to probably have you kind of talk a little bit more about that because I'm sure there's a lot of hidden expenses that a lot of people just go, oh no, I just didn't even think about that one. 00:22:11.200 --> 00:22:12.480 I oh, I forgot about that. 00:22:12.640 --> 00:22:15.440 But you really do want to make sure you first get that baseline. 00:22:15.680 --> 00:22:18.319 And then you have to decide your booking sweet spot. 00:22:18.480 --> 00:22:26.319 So how many weddings do you actually want to take every single month during your wedding season? 00:22:26.480 --> 00:22:33.680 Now, for most planners, that's two or three weddings per month

because past that you're actually fast tracking yourself into burnout. 00:22:34.480 --> 00:22:40.079 And those two numbers together hand you your minimum package price. 00:22:40.160 --> 00:22:41.119 It's just math, right? 00:22:41.200 --> 00:22:48.960 It's if you need to hit a certain number and you only want to take two weddings a month, your package has to be priced to kind of get you there. 00:22:49.279 --> 00:22:52.559 And then a lot of people forget this last piece. 00:22:52.640 --> 00:22:57.359 And this is the one that I want tattooed on people's hearts and minds, okay? 00:22:57.759 --> 00:23:04.880 Is that the services that you offer at whatever your determined price point is, it has to be defensible. 00:23:05.039 --> 00:23:06.000 It has to make sense. 00:23:06.160 --> 00:23:19.519 If you need to make a lot more money for your lower tier package that you sell because your wedding season is short, then that package better be worth the price that you're charging. 00:23:19.680 --> 00:23:21.519 So that means you might have to beef it up a bit. 00:23:21.680 --> 00:23:32.799 You have to add some things to it to justify the rate that you are needing to charge in order to make the money that you have to make in order to cover all of your bills, including paying yourself. 00:23:33.039 --> 00:23:35.119 You can't just think about yourself. 00:23:35.359 --> 00:23:52.480 You also have to be fair to your couple and not expect them to carry the burden of your short season by offering a standard coordination package for double or triple what other wedding planners charge and what they include in that coordination package simply because you need to make more. 00:23:52.880 --> 00:23:54.799 Everything has to make sense. 00:23:54.960 --> 00:24:00.559 Don't just pick and cherry pick a couple of factors and then not look at all of them. 00:24:00.799 --> 00:24:05.839 Now, in addition to everything I've said, your fees have to allow you to pay yourself, though. 00:24:06.000 --> 00:24:09.200 So you can't your pricing can't be a vibe. 00:24:09.519 --> 00:24:19.279 So, Matt, what is your grounded approach when it comes to those real expenses and taxes and realistic capacity and things of that nature? 00:24:19.599 --> 00:24:21.440 Yeah, I think you're right. 00:24:21.680 --> 00:24:28.960 You certainly need to figure out like what does your business need in order to operate, to keep the doors open every single month. 00:24:29.039 --> 00:24:30.720 Like, what is that number? 00:24:31.119 --> 00:24:34.640 And I need to make sure that I'm producing the income needed, of course, to do that. 00:24:34.720 --> 00:24:35.519 But you're exactly right. 00:24:35.599 --> 00:25:04.319 I think a lot of us in the wedding industry, I think because a lot of people start out in the industry as this was a you know, a second career or a side hustle, what they assume is that they don't need to pay themselves because they were doing this for fun, or they, you know, they luckily they did have

someone at home that could could help with the the lifestyle expenses, right? 00:25:04.559 --> 00:25:10.079 But they but as their business grew, that mentality never grew with them. 00:25:10.319 --> 00:25:21.200 So so now they are operating on this bigger business, but with that side hustle mentality, and the finances aren't making making sense anymore. 00:25:21.519 --> 00:25:26.640 So they they've grown, but they haven't grown in their their financial approach. 00:25:26.799 --> 00:25:30.319 And so I think that's where a lot of people miss the mark. 00:25:30.559 --> 00:25:45.839 And and so that's one of the huge things that I see when it comes to pricing is that mentality and and the way that they have not shifted their financial patterns in order to make sure that they are doing the things that they need to support their new life and their new business. 00:25:46.079 --> 00:25:54.400 I love that because honestly, I hadn't actually thought of it from that perspective, is that I think you just nailed it, Matt. 00:25:54.559 --> 00:26:00.880 You know, a lot of people do start as a side hustle, a hobby, something that they just love to do for their friends and family. 00:26:00.960 --> 00:26:05.599 And then when they decide to turn it into the business, the mindset did not grow with that. 00:26:05.839 --> 00:26:10.720 That is such an important piece of this because we're not just running a charity. 00:26:11.119 --> 00:26:15.279 What we are running is a business that needs to become profitable, right? 00:26:16.160 --> 00:26:29.519 So there are going to be expenses, and there are a lot of planners and coordinators that say, I can't afford to have software or let's say staff or like an assistant on the wedding day. 00:26:29.680 --> 00:26:32.480 Well, you can if you factor these things in. 00:26:32.640 --> 00:26:34.000 You have to plan for it, right, Matt? 00:26:34.079 --> 00:26:38.480 I mean, is that do you hear this a lot through what your experiences are with people? 00:26:38.880 --> 00:26:39.359 Yeah, yeah. 00:26:39.440 --> 00:26:43.599 And but that's the thing, is is I don't think people take the time to plan. 00:26:43.759 --> 00:26:45.599 It almost sounds counterintuitive, right? 00:26:45.680 --> 00:26:47.119 Like yes, you're you're a planner. 00:26:47.279 --> 00:26:47.599 Yes. 00:26:47.759 --> 00:26:49.279 Why or a coordinator? 00:26:49.440 --> 00:26:51.839 Like, why you plan for everybody else? 00:26:52.000 --> 00:26:53.920 Like, let's make sure that we're planning for ourselves. 00:26:54.240 --> 00:26:55.680 Let's plan for our business. 00:26:55.920 --> 00:26:57.759 And so it does take those things. 00:26:58.000 --> 00:27:01.119 You know, we have to make sure that we we understand. 00:27:01.519 --> 00:27:04.079 And and and I will say there's another mentality thing. 00:27:04.240 --> 00:27:07.039 It depends on how you look at or how you approach staffing. 00:27:07.119 --> 00:27:11.599 You know, you could just have your contractors that are literally helping you on event day. 00:27:11.839 --> 00:27:12.079 Right. 00:27:12.240 --> 00:27:16.079 But I know that a lot of people have anxiety around hiring actual employees. 00:27:16.319 --> 00:27:16.720 You're right. 00:27:16.960 --> 00:27:20.160 Because they're not they're they're afraid that they might not be able to afford them. 00:27:20.319 --> 00:27:21.920 Now, employees are a whole different story. 00:27:22.000 --> 00:27:33.440 And Lori, I know that you you have a lot to say about that because you've you've you've gone through the process of your own business where you had tons of employees and you said, you know what, that's not the right fit for me and my business structure. 00:27:33.599 --> 00:27:39.759 But I think a lot of people also are afraid that if they are hiring people, like how do I pay for them? 00:27:39.920 --> 00:27:44.960 Well, the the goal there is that you need to hire someone that's profitable for your business. 00:27:45.119 --> 00:27:48.559 They are bringing in revenue for your business, they're paying for themselves. 00:27:48.799 --> 00:27:49.440 Yes, sir. 00:27:49.680 --> 00:27:54.160 So, but that that's probably a whole nother that's another conversation for that. 00:27:55.119 --> 00:27:57.680 Well, I mean, we could have a whole conversation about that. 00:27:57.759 --> 00:28:09.039 And I think we do need to have you on before the end of the year to have that conversation because a lot of people would say, Well, I want I want to have staff, but I only want to have them as independent contractors and not employees. 00:28:09.200 --> 00:28:21.279 But if you're misclassifying your worker, the IRS is going to have a field day with you, and the state has certain rules as well, and every state has different rules, whether they go with by common law or ABC or whatever it is. 00:28:21.440 --> 00:28:25.519 It is so, so important to make sure that you are classifying your workers properly. 00:28:25.680 --> 00:28:31.119 Otherwise, it can really come back on you with the financial ramifications. 00:28:31.440 --> 00:28:33.440 Financial ramifications. 00:28:33.759 --> 00:28:36.559 And it is such an important thing to consider. 00:28:36.960 --> 00:28:45.839 But people are afraid to move from having independent contractors to employees because it just seems more challenging to them. 00:28:46.079 --> 00:28:53.359 But what I want a lot of planners and coordinators to remember is it is better to do things on the up and up. 00:28:53.680 --> 00:29:01.839 And if you just talk to someone who's an expert in it, they can walk you through how to set these things up and to do things better. 00:29:02.000 --> 00:29:14.960 And please know that you have a lot more say in how your workers behave and what they do and how why they do it and when they do it. 00:29:15.279 --> 00:29:18.480 You have no control over an independent contractor. 00:29:18.640 --> 00:29:22.000 Independent is the key word in that phrase. 00:29:22.160 --> 00:29:26.319 So if

you want to have independent contractors, you cannot tell them what how to dress. 00:29:26.400 --> 00:29:32.640 You cannot tell them to follow your timeline, you cannot have them use your software, you cannot have them do any of those things. 00:29:32.880 --> 00:29:35.599 If you want that to happen, you need employees. 00:29:35.759 --> 00:29:40.079 And so it is a conversation I think worth having in the future, Matt. 00:29:40.160 --> 00:29:40.960 I really, really do. 00:29:41.039 --> 00:29:44.160 So we're gonna put a pin in that one and we're gonna come back to that. 00:29:44.559 --> 00:29:48.240 I'm going to drag you back onto this podcast before the end of the year. 00:29:48.480 --> 00:29:56.960 All right, so let's kind of talk about two more real things because we've talked about, you know, bringing money in, but let's talk about keeping it. 00:29:57.200 --> 00:29:57.519 Okay. 00:29:57.759 --> 00:30:02.799 First, I think part of in, you know, in order to keep our money, we have to cut the fat. 00:30:03.119 --> 00:30:13.039 And I feel like every one of us is quietly bleeding money on overlapping subscriptions and tools that don't earn their keep. 00:30:13.119 --> 00:30:14.240 There's no ROI. 00:30:14.799 --> 00:30:18.559 Uh, maybe they have subscriptions that they forgot that they're even paying for. 00:30:18.799 --> 00:30:21.279 So, you know, what do you see here? 00:30:21.440 --> 00:30:29.519 How do you look at ROI honestly and trim those things without kind of gutting what actually works? 00:30:29.759 --> 00:30:36.640 Lori, I'll be the first one to admit that I am a technology, whatever you wanna, whatever you want to call it. 00:30:36.720 --> 00:30:40.480 Uh, but I I love the newest thing. 00:30:40.640 --> 00:30:42.559 I love advancements. 00:30:42.880 --> 00:30:47.599 So, you know, I as a planner, I tended to oversubscribe too. 00:30:47.759 --> 00:30:51.279 And until, you know, I was like, all right, Matt, you know, you need to get this together. 00:30:51.680 --> 00:30:53.680 And and how did I figure that out? 00:30:54.079 --> 00:30:57.039 Well, number one, you have to look at it. 00:30:57.200 --> 00:31:06.799 So if you're not looking at your expenses on a monthly basis or a quarterly basis, you need to because those are gonna be the things that really show up. 00:31:06.960 --> 00:31:08.319 Because think about it, Lori. 00:31:08.480 --> 00:31:12.319 If you if you swipe the card, or it's you know,$250 here. 00:31:12.880 --> 00:31:15.200 And then, you know, I don't, I don't know. 00:31:15.279 --> 00:31:22.640 It could be a could be a one-time fee or it could be a monthly fee, even a monthly fee,$75 a month. 00:31:22.880 --> 00:31:26.319 Um, well, that that seems reasonable in the month, right? 00:31:26.480 --> 00:31:35.119 But once you, if you start looking at your financials, and because as a bookkeeper, we're coding those to their category. 00:31:35.359 --> 00:31:35.839 Yes. 00:31:36.079 --> 00:31:48.000 It's so interesting to me, Lori, to

whenever I have review meetings with clients and they're like, whoa, I'm spending how much on software or you know, whatever the line item is. 00:31:48.240 --> 00:32:03.119 I think, you know, in the moment, that 250 or that 75 doesn't seem like a lot, but as they're starting to look at the total bill, they start to think, whoa, okay, that is a large amount of my income that's going to that expense. 00:32:03.279 --> 00:32:07.839 And then that makes them stop and realize, is it really worth all of that? 00:32:08.079 --> 00:32:09.759 So I you're right. 00:32:09.920 --> 00:32:12.720 And I think people are like, yeah, that's that's a no-brainer, Lori. 00:32:12.960 --> 00:32:14.319 Of course, you know, we'll we'll look at that. 00:32:14.480 --> 00:32:27.279 But if you're not actually looking at it, you'll never know because those in the moment charges or those, you know, smaller fees that come on a monthly basis, you know, they add up because they come 12 times a year. 00:32:28.880 --> 00:32:30.240 It's 100% true. 00:32:30.400 --> 00:32:37.039 And when you do add it up, you're like, I spent$2,400 on what now over that whole year's time. 00:32:37.200 --> 00:32:41.519 And because again, if it's just a little bit here and there, you don't think about it. 00:32:41.599 --> 00:32:44.240 You're like, oh, it's just I'm doing my everyday thing. 00:32:44.319 --> 00:32:46.000 I don't have time to really dive in. 00:32:46.160 --> 00:32:47.599 No, you really do need to. 00:32:47.759 --> 00:32:58.400 Because if you don't understand your expenses and you don't understand it, you know, are those tools that you're paying for, are they giving you a really great return on investment? 00:32:58.640 --> 00:33:03.200 I do not spend a dime on something that is not going to earn me money. 00:33:03.440 --> 00:33:11.279 That's that's a great business, that's a great business philosophy, and that's a good way to remain profitable with that mindset. 00:33:11.839 --> 00:33:14.079 That is a compliment coming from Matt Mitchell. 00:33:14.160 --> 00:33:14.720 I can tell you that. 00:33:14.880 --> 00:33:24.480 So, I mean, we list subscription software kind of right alongside of you know insurance and assistance fees as real expense categories, but it sneaks up on people. 00:33:24.960 --> 00:33:29.440 Three tools that do the same job, the free trial that you never canceled. 00:33:29.519 --> 00:33:30.079 Well, guess what? 00:33:30.160 --> 00:33:33.839 That's gonna add up to some real dollars off your bottom line every single month. 00:33:34.000 --> 00:33:43.519 And and then there's the seasonal roller coaster, which is just the reality of the industry, to be honest with you, feast in the busy season, but famine in the slow months. 00:33:43.680 --> 00:33:46.720 And the fix isn't to white knuckle it through the slow months, right? 00:33:46.799 --> 00:33:49.359 It's to build for it on purpose. 00:33:49.440 --> 00:33:53.599 And you you preach this all the time. 00:33:53.680 --> 00:33:56.319

And I really want my guys and coordinators to hear you. 00:33:56.480 --> 00:34:03.279 You know, when you know your numbers, you can take a little more in, you know, in the fat months and hold steady in the lean ones. 00:34:03.440 --> 00:34:08.960 So a quiet January doesn't send you into an absolute chaotic panic mode. 00:34:09.119 --> 00:34:11.679 It's not luck, it's planning. 00:34:11.760 --> 00:34:16.400 And if we're gonna be planners for other people, like you said, Matt, we need to also be planning for ourselves. 00:34:16.559 --> 00:34:21.199 And that is where I actually kind of want to make the case for what you do. 00:34:21.360 --> 00:34:21.679 Okay. 00:34:22.159 --> 00:34:31.360 And I want to frame it the way we frame it at the master level when I'm teaching master certified wedding planners, because I think people get this a little bit backwards. 00:34:31.599 --> 00:34:35.360 At the executive level, we teach planners to kind of know their zones, right? 00:34:35.440 --> 00:34:41.840 Your genius zone, designing and planning and holding a couple's hand through the biggest day of their life. 00:34:42.000 --> 00:34:43.280 That's your work. 00:34:43.440 --> 00:34:45.840 And you should never delegate your core value. 00:34:45.920 --> 00:34:52.880 But bookkeeping and tax prep, well, so those live kind of squarely in the delegation zone. 00:34:53.199 --> 00:35:02.559 Handing your finances to a professional isn't waving a white flag and admitting that you're bad with money, it's kind of the exact opposite, as far as I'm concerned. 00:35:02.719 --> 00:35:04.559 To me, it's a CEO move. 00:35:04.800 --> 00:35:14.480 You're freeing yourself to do the thing only you can do with the coverage of someone who does the numbers all day long and does it well. 00:35:14.639 --> 00:35:17.679 And that's not a weakness, that's a business run like a real business. 00:35:18.000 --> 00:35:26.639 So if I had to hand everybody listening one thing to walk away with today, it's that looking at your numbers is not the scary part. 00:35:26.800 --> 00:35:30.639 It's not looking at your numbers that should be considered the scariest part. 00:35:30.960 --> 00:35:31.440 Amen. 00:35:33.840 --> 00:35:43.119 The second you turn those lights on, money stops being like this thing that happens to you and it becomes something that you actually get to steer. 00:35:43.360 --> 00:35:46.960 You don't have to love spreadsheets and love numbers. 00:35:47.039 --> 00:35:50.400 You just have to stop hiding from the spreadsheets and the numbers. 00:35:50.559 --> 00:35:53.119 And you don't have to do it alone, and that's the whole point. 00:35:53.199 --> 00:36:04.480 And this is why I love Matt so so much because he does it in such a way that allows you to not feel judged and he makes everything seem so much easier. 00:36:04.800 --> 00:36:14.079 He he takes your knotted ball of yarn and he very carefully unravels it so that we can see the whole thing. 00:36:14.159 --> 00:36:15.280 He takes away

all the knots. 00:36:15.360 --> 00:36:18.960 So, Matt, this this conversation's been so good. 00:36:19.280 --> 00:36:25.039 So, before I let you go, I want every single listener to know exactly where to find you. 00:36:25.199 --> 00:36:29.280 So tell everybody what your website is, how they can find you on social media, all the good stuff. 00:36:29.440 --> 00:36:38.000 If you want more information about us, our services, anything along those lines, you can go to our website, which is uh www.theeventledger.com. 00:36:38.079 --> 00:36:42.400 And you can also follow us on any of socials at the eventledger. 00:36:42.719 --> 00:36:48.639 Before, though, I there was something that you said when you're talking about planning and talking about the seasonal part of it too. 00:36:48.800 --> 00:36:52.719 This is maybe a little foreshadowing to an event we have in January. 00:36:52.960 --> 00:36:59.199 One thing that I like to remind people is plan during the calm so that you can flourish during the chaos. 00:36:59.280 --> 00:37:02.559 And that is something that is big in this industry, right? 00:37:02.639 --> 00:37:09.039 So we have those ebbs and flows, like right now, October, one of the busiest times in the Atlanta market. 00:37:09.440 --> 00:37:20.719 And so it takes that planning when you have the time to do it to make sure that the chaos of the in-depth season goes to plan and doesn't add any extra stress. 00:37:20.960 --> 00:37:30.159 And another thing that you just mentioned too, Lori, was putting on that CEO hat and saying, hey, you know, there's certain areas of your business where you can lend other people. 00:37:30.239 --> 00:37:31.119 You have to think about that. 00:37:31.199 --> 00:37:38.239 You you mentioned zone of genius, but also like we know that time is an infinite resource and time is money. 00:37:38.480 --> 00:37:45.760 And so, sure, you can do that on your own, but it's taking you away from revenue generating time. 00:37:46.000 --> 00:37:54.719 And so it is, it's an opportunity for you to sit down and think, hey, where can I give up some of the duties to someone else? 00:37:55.039 --> 00:38:00.719 Maybe it's bookkeeping or some other part of your business, so that I can focus on the revenue generating parts. 00:38:00.960 --> 00:38:05.840 So those are just two things I wanted to mention based off of your previous comments. 00:38:06.079 --> 00:38:07.119 I love that you say that. 00:38:07.199 --> 00:38:17.360 And I'm gonna I'm gonna piggyback off of that real quick because when when planners and coordinators are in the middle of the crazy busy season, they're not able to focus on the profit. 00:38:17.519 --> 00:38:25.039 You know, they I wonder how I can build this business, I wonder how I can make this more profitable because they are so busy. 00:38:25.199 --> 00:38:27.039 And then it they never get to it. 00:38:27.199 --> 00:38:40.960 I feel that even within the CWP society, I get some sometimes I get so involved in let me just do, do, do, do, do for everybody else that I forget that I'm okay, hold on, wait a second. 00:38:41.119 --> 00:38:43.280 I can't just mentor 24 hours a day. 00:38:43.440 --> 00:38:45.360 I actually have to think about the business, right? 00:38:45.679 --> 00:38:49.920 So it is really, really important that sometimes we just take a minute. 00:38:50.159 --> 00:38:52.079 Let's just back up, let's zoom out. 00:38:52.239 --> 00:38:57.280 When we're in the weeds all the time, you're not gonna be able to see the field. 00:38:57.440 --> 00:39:01.440 And seeing the field is gonna tell you everything that you need to know. 00:39:01.519 --> 00:39:07.599 And hiring an expert like you to say, all right, so I see your field, I've already measured everything out. 00:39:07.840 --> 00:39:14.559 Here's how much we can yield from that grass or those weeds, you know, we can sell this and do that. 00:39:14.719 --> 00:39:19.760 And you know, it's it's so important to be able to talk to people who do nothing but specialize in this. 00:39:19.840 --> 00:39:21.760 And I'm going to kind of tie this back around. 00:39:21.920 --> 00:39:25.440 Isn't that what we as planners and coordinators are asking our clients to do? 00:39:25.679 --> 00:39:33.360 We're asking our clients to hire someone who specializes in coordinating and planning of their wedding instead of doing it themselves. 00:39:33.920 --> 00:39:42.639 We have to take our own advice and say, all right, so if I'm asking someone else to do this, am I doing that for me too? 00:39:42.880 --> 00:39:44.480 And I want people to sit with that. 00:39:44.639 --> 00:39:47.519 That's what I want people, I want to leave people with that question. 00:39:47.760 --> 00:39:48.559 It's a great question. 00:39:48.960 --> 00:39:49.280 Okay. 00:39:49.599 --> 00:39:56.880 So to everybody listening, if this conversation lits something up in you, that is exactly what the CWP Society is here for. 00:39:57.119 --> 00:40:05.039 We are the world's premier wedding planner and coordinator certification and membership program, as well as the largest community of wedding planners anywhere. 00:40:05.280 --> 00:40:08.400 And we have a place for you no matter where you are in your journey. 00:40:08.559 --> 00:40:11.360 So come elevate yourself and come elevate your business. 00:40:11.519 --> 00:40:16.400 Visit our website to learn more because we are your people, we are your tribe. 00:40:16.639 --> 00:40:21.280 CWpsociety.com is where you can find out all the information. 00:40:21.440 --> 00:40:24.079 And until next time, happy planning.