2017: Our First Year as an LLC & The Hard Lessons We Learned

In 2017, we officially became a Limited Liability Company. While this was a major milestone, it came with a period of adjustment. One of the biggest realizations for many LLCs is that your largest business expense often becomes payroll. These are just a few of the first year LLC lessons we encountered.

You now have to account for the two-thirds portion of the National Insurance contribution (a deductible expense). The real challenge? Cash flow. It becomes incredibly difficult to cover these expenses when clients don’t pay their outstanding debts on time. This taught us significant first year LLC lessons about financial management.

The Client Payment Problem

This brings us to our second point: managing your receivables. Why is it so difficult for clients to stay on track with their payments? It’s a common theme among first year LLC lessons, emphasizing the need for effective financial strategies.

We’ve noticed a troubling trend: many entrepreneurs love FREE stuff and are reluctant to pay for your time and effort—even after they’ve received the service or product.

Why do we try to beat down each other’s prices? It’s even more disrespectful when a client suggests what they think your price should be.

Here’s a simple truth: If you can’t afford it, don’t purchase it. If you really want it, acquire the funds to pay for it. If you have an outstanding debt, be professional: call and arrange a payment plan. Stop making excuses. We all have lives to live.

You can’t go to the grocery and ask for credit. You received a product or service, so pay for it.

Know Your Worth: Stop the Discount Cycle

This is our third and most critical point: Know your WORTH and stop giving away excessive discounts and freebies. This is one of the key first year LLC lessons we had to learn.

You are giving away your time, and time is money. It should not be given away freely. You earned it, so get paid for it… bottom line. This is also a clear way to understand your ideal clients—your ideal client values your work and pays for it.

Our Focus for 2018: Work Smarter, Not Harder

Going forward into 2018, we are committed to working smarter, not harder. We will be focusing on ways to maximize our investments in both our business and personal lives.

As an entrepreneur, it’s not just about making money—it’s about being able to enjoy the money you make. Therefore, 2018 is about becoming a holistic entrepreneur. This means a lot of rinsing and repeating.

What Does “Rinse and Repeat” Mean?

This refers to identifying the systems and formulas that have worked for you over the years—the ones that delivered great results. This is why having proper systems in place is crucial. It allows you to identify your business trends and analyze what is actually working, so you can do more of it.

A Message to Every Entrepreneur on the Journey

Having a business isn’t just a status symbol. You have to nurture it into what you want it to become, which takes immense time and effort. You cannot have a laissez-faire attitude in business. You have to be on the ball.

We’re not saying every day will be awesome. You will have those days when you want to just roll into a ball and cry because you’re giving your all and feel like you’re receiving nothing in return. We all have those days. But you have to get up and keep moving forward. You have no time for a pity party.

The road to success is not straight and narrow. It is difficult. When your business is out of whack, sometimes your personal life suffers, and you begin to wonder: “Is this making sense? Did I make the right decision? Should I go back to corporate life?”

Let us be clear: Running a business is not for the faint of heart. It’s not for the quitter. It’s for the person with the winning attitude. The person who doesn’t give up. The person who is willing to go the extra mile. That’s what being an entrepreneur is—it’s your story, your journey to SUCCESS.

You can do it if only you believe. For 2018, we are choosing to work smart and increase our investment portfolio.

Happy New Year From the Management and Staff of Destiny Planners!

“A wealthy person is simply someone who has learned how to make money when they’re not working.” – Robert Kiyosaki

What was your biggest business lesson in 2017? Share in the comments below!