Beginning Balance Jesse Mecham

Mark explains his unique system for managing his day to day tasks after years of struggling with ADHD. For Mark, it's all about managing his energy and honoring his mindset in the current moment. If the "dirt pile" calls (his affectionate name for an ongoing earthmoving project in his backyard), then that's what he does, whether or not it's the "best" or most important use of his time in the moment. Over the years, Mark has learned that allowing himself space to indulge in physical tasks often has the benefit of settling his mind and, therefore, putting him in a good headspace to tackle bigger, more stressful business challenges. For Mark, productvitiy follows his headspace.
 
Jesse, on the other hand, has a very different style for getting things done. Jesse is a man of systems, and he's also a man with a long to-do list. He mentions how in the past he has been called out for letting tasks slip or needing reminders to follow up on things. So for Jesse the priority is making sure that tasks don't live in his head, but are organized in a good system. He likes David Allen's Getting Things Done (GTD) productivity system, which asks a person to first organize and sort through their list of tasks before tackling them. With a good categorization of tasks in place, it becomes easier to execute tasks at the time and place when you can do them, rather than relying on your mind's own reminder system which often reminds you when you can't do anything about the task! Jesse adds a weekly review to his process, to make sure he's working on things that matter -- in business and personal life -- and not avoiding challenging tasks by filing his day with low-level admin work.
 
The takeaway? People can get things done with very different approaches. One key to figuring out what will work for you is to recognize and honor who you are. As Mark's mentor says, you can't will yourself to be the kind of person who systematically categorizes and organizes tasks if that's who you are by nature. Once you accept that, then you can find the system that works for you.
 
Mark Butler, Virtual CFO
The Money School: https://moneyschool.works
https://markbutler.com
https://letsdothebooks.com
 
YNAB
https://www.youneedabudget.com

Mark and Jesse answer a listener question about how to run more effective meetings, particularly for introvert-heavy groups. Jesse talks about the importance of ice breakers (although you don't have to call them that) and standardized meeting structures across the company. Mark and Jesse also discuss some new books on their reading list, including a book about the keys to longevity.
 
Mark Butler, Virtual CFO
The Money School: https://moneyschool.works
https://markbutler.com
https://letsdothebooks.com
 
YNAB
https://www.youneedabudget.com

Mark poses a question -- how much knowledge about money does someone need? As in, how much time and energy should one devote toward investing, planning for future needs and problems, and other future considerations? Jesse offers some examples of how people often seek assurances, guarantees that their future income (and circumstances) will be safe. The reality, however, is that if you are in business, or even if you are an employee in a business, you are taking risk, and that risk cannot be mitigated to zero.
 
One takeaway from this conversation is that when you live within your means and create financial cushion in your life, you leave yourself open to take advantage of future opportunities. And as Jesse points out, the personal bleeds into the business. Business IS personal. So the same thing holds true for both the business' balance sheet and the business owner's balance sheet. When there is ample cash on hand and the owners live well within their means, the business can take more risks and take advantage of opportunities that would have been closed otherwise.
 
Mark Butler, Virtual CFO
The Money School: https://moneyschool.works
https://markbutler.com
https://letsdothebooks.com
 
YNAB
https://www.youneedabudget.com

Mark provides an update on his son Charlie and his budding mechanic career, and voices some concerns about his continuing to work at the auto shop. Charlie made some good money replacing brakes on a family friend's vehicle, and is considering making the jump to a mobile auto service business (as Mark and Jesse first discussed in Episode 79).
 
Mark Butler, Virtual CFO
The Money School: https://moneyschool.works
https://markbutler.com
https://letsdothebooks.com
 
YNAB
https://www.youneedabudget.com

Mark and Jesse discuss the process of setting compensation, salaries, bonuses, and communicating those effectively to the team. Compensation is a touchy subject. Businesses want to incentivize employees to perform at a high level and reduce turnover by compensating them well. Employees need to feel like they have space to grow their skills and capabilities in the organization, and be compensated accordingly. And many business owners want their employees to be happy and feel fairly compensated, out of care for the people they have grown close to and relied upon to build their business. Therein lies a minefield, however!
 
Jesse argues that compensation, including salary, benefits, and bonus, carries a lot of information and expectations. Business owners should set compensation based on market rates for a given role, discounted to what the business can afford (both what the business can afford to pay and what amount of turnover the business is willing to accept if they pay significantly under market). Business owners should NEVER compensate out of a sense of charity, generosity or to "share the wealth," epsecially with unplanned bonuses. While these things can seem great in the moment, they can cause serious confusion for employees. Why did I get this? How do I get it again? Should I expect this every year? If I don't get it next year, does that mean I'm performing poorly, or the business is doing poorly? There are many pitfalls to basing compensation on something other than the cold hard facts of market rates and clear job descriptions.
 
Mark Butler, Virtual CFO
The Money School: https://moneyschool.works
https://markbutler.com
https://letsdothebooks.com
 
YNAB
https://www.youneedabudget.com

...probably comes from doing more of what you're already doing, not a new venture or even a new product. But Mark and Jesse have talked about digging trenches already. Today they ask the question, is it enough for a business owner to put their head down and just dig more trenches? When do you look around, observe broad trends in your industry, and react to those? It's a balancing act, with risks on both sides of the question.
 
Mark Butler, Virtual CFO
The Money School: https://moneyschool.works
https://markbutler.com
https://letsdothebooks.com
 
YNAB
https://www.youneedabudget.com