@theologyandfood the employee didn't invest financially in the buisiness so that's perfectly fair for his hourly wage. He's an employee not an investor .
@@daPiNK2012 $15 an hour is excellent for my area. Minimum wage is $7.25. Median rent is $538. Median HOUSEHOLD income is only $31k, and average HOUSEHOLD income is $40k. And median home price is $169k. So yeah, people can live pretty well off of $15/hr here. As a 6 figure household, we're in the top 1% here.
@@themanifestorsmindplease tell me where housing is that cheap. I’m in north Texas and I’m struggling to find anything under 600k. I have 6 kids so if I look at houses that I see as more “ideal” it’s always over 1m and that’s nothing special here. I swear when the Californians moved to Texas they brought those a stupid home prices with them.
Thanks for doing this with me, Caleb! Some of the comments are disappointing but that was to be expected. Hopefully people understand that Caleb is very limited on time and there can be a ton of nuance to each persons situation that is just impossible to narrow down in every episode. Thanks for your time, Caleb! These ham and cheese sandwiches are getting a little boring but there is a significant drop in meals and entertainment!
Are you doing detailing work for sales and leasing returns? Owners can usually profit big time from those, so they pay more for those services. With your established contacts to dealerships, you could offer an car sale service. People, especially women and young adults get often ripped off by dealerships if they want to trade in their car. You could get them better prices for a cut on the sale price difference.
Is there anything else you can clean with your equipment? Maybe like garage clean-outs/organizations? Just something else to supplement your revenue and put your employee to work in the off season?
A few of my friends are in plastering and can’t work in the winter months so now they do Christmas decorations. They install them and the last few years have added the decorations to music. They are now making a really good amount of money off it. I hope you can see if it can bring you success as well
He is wrong on the meals. Daily lunches is not a tax deduction. If you are out of town or meeting with a client, that is another thing. Also, you can only have one office so paying rent for office space means that you can't write off your home office. IRS rules. Also, with business expense, remember that if you spend $100 on an expense it saves you about $25 - $40 on taxes. You have to ask yourself, do you need the expense. Is it better to save the money and pay tax on the $100?
Hi Caleb, thanks for covering all sorts of financial situations in these videos. As a public accountant specializing in small business advisory, this video hit really close to home. Small business owners who don't do a good job separating personal and business are the bane of my existence. You may want to request a General Ledger for the next small business you do. It'll give you the detail of each transaction in each account, so you can see exactly what he's spending on supplies and meals. To limit flipping back and forth between personal and business, maybe in future do a business breakdown for 1 month to see what they net, then do a personal budget off of that. You kinda did that in this video, but I think segmenting it a bit better will help viewers follow along.
When he said the M&E was his personal meals and thought it would be a deductible business expense my head exploded. Nope. Not even at 50% if it’s just his personal meals at his regular place of business. 🤯
Word to the wise, careful trying to take every write-off and deduction. That is a good way to have a meeting with the IRS. At least he has someone reviewing his books.
@@BrianAnother that’s literally 99% of people who work a service job that receives tips. Go to your local restaurant and on paper all the waitresses make minimum wage 😂
He did say "legally" 10k. All of those deductions he included for tax benefits were deducted from his overall income. He likely took home more money than 10k "less legally"
He’s not paying that employee much of anything. If u was the employee I’d leverage my skills elsewhere for a higher wage. I feel like if the employee was on Caleb’s show he’d tell him to get a higher paying job…
So, just to make sure I understood correctly. Is he writing off 50% of his lunches as business expenses? I don’t think he can do that unless he’s meeting with a client and discussing business during the meal or he’s traveling for business.
@@CalebHammer The only other thing I can poke at to improve on is hearing your audio on their side, or hearing the guest's audio on your side (through the speakers). Wearing headphones on your side and their side would fix this I believe.
I have worked with several businesses and unfortunately budgeting is a skill small business owners sometimes lack. The understanding of how to project, how it ties into growth plans and the difference between a projected budget and actuals. Kudos to this guy for recognizing it and getting help.
His business is simply not successful, he should be earning way more than 70k/year doing detailing while renting a shop no less. There are guys who make more than that doing mobile detailing out of their car. His business earns less than $200/day, typically independent detail shops charge at least $100 for a basic cleaning that takes them an hour or two to do. So if all he can get is two cars a day to detail, why is he hiring an employee? And yes I'm counting weekends as work days! If your business is failing, you should work every day until it's not If he offers paint correcting and ceramic coating that will easily sell for $800-1000, shops around me charge as much as $1500 for it. And those two can be done on a car in a day or two at most with less than $200 in supplies. If all he can get his customers to buy are basic detailing/car washing packages, he should lock himself in the shop until he's done at least 5 cars/day at $75/car MINIMUM Why is he buying a $1k power washer? That's so overkill it will probably strip paint at half-strength, if he's broke he should buy a cheaper electric one for a few hundred bucks, those are perfectly adequate for washing cars. There is something seriously wrong about how he's going about his business, if it were me I would not even think about hiring an employee until the business was making 100k+/year
@Bufkin Smith what do you mean specifically? I've been operating as an S corp for about 8 years now, with the main reason being that i can offer 401k to my employees and participate in it aswell
@@Liimpy "S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee. The amount of reasonable compensation will never exceed the amount received by the shareholder either directly or indirectly." from the IRS. Basically, you must pay yourself a "fair" wage. You cannot pay yourself $0, you cannot pay yourself $1B. You must pay yourself somewhere around the market rate for the position that you hold. If you want to pay yourself above the market rate, you must do so in non-wage distributions (bonuses). The reason the IRS cares is that some people have tried to give themselves almost nothing in employment taxable wage distributions but give themselves a ton of money in non-employment taxable distributions (bonuses)
He really needed a plan for winter. Market towards realtors, car is part of their image and they have to sell during winter. Or any type of sales person on the door, higher level professionals and business people.
I have a mobile detailing business also I started when I was 16 now I am 18 and working on getting the business licensed and insured. I agree with this man the as soon as we make good money we always have something breaking.
There’s a lot of co-mingling of personal and business assets. If I’m him I’m keeping business and personal separate. The business will make a monthly payment to me and one to the employee. The amount will depend on what can be sustained throughout the year. Budget decisions should be made based on that.
I would form a list of vlogs, blogs, books to recommend to people. I know you aren't a huge fan of Dave, but one of the best things I learned from his channel and books was changing our mindset around money, debt, budgeting, etc. I do not think we could have gotten where we are now without that. We had to learn to look at money differently and learn why we were in the spot we were and take some accountability. You are just simple too nice to these people for them to really learn. Break down that affirm payment for him and shout how much extra he is paying to simply just have money payments. It is throwing money away. Bless of Luck.
He buys all of his personal stuff through the business, certainly that can’t be legal. Just because the business buys it doesn’t mean it’s tax deductible and he clearly doesn’t know how deductions work. I wish him good luck on his upcoming audit. Also, with the business becoming an LLC he needs to SEPARATE business and personal. There’s so much risk and possible illegal practices if he continues to act like the business’ money is his.
This is one of your most interesting videos yet. It shows the struggle for so many small business owners. I feel like most people our age have zero respect for people who succeed building a small business from nothing
@@JetlinerX thanks for doing this interview. It was really interesting but honestly I think Caleb skipped a step or two. My advice to you would be to first completely separate your personal and business accounts. Pay yourself the bare minimum but never pull from your personal to pay for the business. Second would be to pay the minimum payments on everything until you get your emergency fund. It makes no sense to pay off $2k of debt to have something else break and be $2k in debt again. Save 2-5 grand in the business account for emergencies only while paying the minimum and then start paying back the debt after.
@@tylersanders2388 thanks Tyler! I already pay myself very minimally as seen in this video and since the interview was done we have that couple thousand in saving as well. I agree we ran out of time to go over a full plan of action so I do appreciate your advice as well!
“It was just the nerves of you yelling at me and that’s all it took” I swear every paycheck I imagine your voice telling me what I need to do with my funds 😂
Detailing is how I made money during college. I know how winter can go. I still saved pretty all my money, but I did waste money on products or tools I didn't need.
I am going to be controversial. He should only be making minium payments till Spring. The goal of this is trying to keep the employee as right now he won't be able to replace them.
He should look into the 'profit first' method of running a small business. That is a great starting point for a small business. Then look for ways to things he could do during the winter using the equipmnent and space he has.
When Daddy is mad 😂😂😂 It would be interesting to see follow up on your guests. I wouldn't want to disappoint and would do everything you told me if it meant not be scolded. I know it is all done in love though. These people are brave
Reminds me of my parents. Extremely intelligent overly educated people. One with a double bachelors business admin and accounting. Completely clueless with how to deploy their human and monetary capital. Bankrupted in their 50’s with two small businesses nearly losing the house and precious heirlooms (jewelry). Be extremely deliberate and thoughtful in what you do folks!! 8 years with no material change in net worth without considering opportunity cost is absolute cognitive dissonance. The environment we have been living in the past decade, where everyone is getting the entrepreneurial bug and making RUclips videos on it is abnormal behavior and a symptom of the environment. There is no “secret”.
If he sees this video I hope he can hang Christmas lights for the high end customers in his area my friends who can’t work in the winter months try to get a good grip on that and make a lot of money now with their holiday decorations and even more if you can set it to music for them Just a suggestion he’s already got a employee so two people could get it done fairly easily
I think there should have been more emphasis on his income. He framed it as business is booming but after legit business expenses and adding back all the personal expenses this guy is making ~30k a year, plus he would have self employment tax on top of that. He can make more as an employee doing detail work and doesn’t have the stress of being a business owner. He clearly has a spending problem but clearly has an income problem as well. I’d be scared to death if I was this guys employee watching this that their boss barley makes any money and spends it all away.
He needs to be proactive . With a seasonal business going into hibernation maybe an opportunity to renegotiate the terms and conditions and interest rates with creditors allowing for an increased profit margin 👍👍
Businesses that operates on a profit margin can't really have a 6 months emergency fund unless the margin is huge. You can only have 1-2 months of funds stored, ore than that should be reinvested in the business to grow it and generate more money. if the business revenue is not stable like if you got contracts that brings guaranteed amount of work each month, it is vital to figure out the business trends how much you can expect to get each month of the year and set up the business to deal with that. Plenty of retail businesses hires on mass of extra fixed term casual staff in December for this reason, and plenty of businesses subcontracts out parts of their business too so you can offer complete packages without having to do every item yourself. For example, he got this big expensive hire machine to offer this extra service. In busy months hire that machine and in slow months send the work to someone else with that machine so you don't have to pay for it at same monthly rent price to sit there not making you money half the month.
Just looking at this it looks like he needs a 2 person accountability on purchases made...... this would keep him from spending money on purchases that make no sense
Not trying to be a jerk but I hope your employee doesn’t see this. I get you own the business but when you both detail cars and you’re making “that” much more man, just doesn’t look so hot.
Might sound extreme but if I was as broke as him... I would get out of that lease then go live in the shop his business rent and even clean cars overnight if the opportunity presents itself while no longer having a $750 rent.
I know for a fact that when you go without fast food for a year or two, your microbiome changes and you no longer want it. That is, if you eat as healthy as possible, in the meantime. If you still eat crap food while cooking at home, the microbiome might not change and that will prevent your cravings from going away.
If your self emoyed and have no other location to work from you can. As an employee there might be a deduction for work expenses on your personal taxes
Can't believe he left that peice out. He is supposed to have 15 percent of all he made in an account for his taxes. He better hope winter doesn't come this year
If you keep having to let someone or others go because of bad choices like this, this could just result in time, with them starting their own competing business, and then you're really screwed. Make better choices so it shows you're loyal, and loyalty gets rewarded.
Thinking about letting go of his employee who he's paying crap when he doesn't pay any taxes because he cheats yep typical small buisness owner that cries the blue!
He can rent the space and the contractor can provide his own materials. He would have to then pay him much more, like $40-50 an hour but it would be much simpler legally and financially for him. He could collect a monthly floor fee rental of $100. Of course he’d have to calculate if it makes sense but it seems overkill for him to do a retirement account, insurance, taxes, etc for a $12k a year employee.
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"so he makes 24k a year?...........okay" that silence was everything lmao
@theologyandfood common and right are not the same thing, look at how much more money the business is able to make because he was hired..
@theologyandfood the employee didn't invest financially in the buisiness so that's perfectly fair for his hourly wage. He's an employee not an investor .
Keep that employee. If he’s doing good detailing work at 15/Hr he won’t be easy to replace
How can anyone live off of $15/hr?
@@daPiNK2012 His rent was $750 so maybe the area has a low COL
@@daPiNK2012 southern Washington seems like it would be cheap. But 15 an hour is tough no matter where you are.
@@daPiNK2012 $15 an hour is excellent for my area. Minimum wage is $7.25. Median rent is $538. Median HOUSEHOLD income is only $31k, and average HOUSEHOLD income is $40k. And median home price is $169k. So yeah, people can live pretty well off of $15/hr here. As a 6 figure household, we're in the top 1% here.
@@themanifestorsmindplease tell me where housing is that cheap. I’m in north Texas and I’m struggling to find anything under 600k. I have 6 kids so if I look at houses that I see as more “ideal” it’s always over 1m and that’s nothing special here. I swear when the Californians moved to Texas they brought those a stupid home prices with them.
Thanks for doing this with me, Caleb! Some of the comments are disappointing but that was to be expected. Hopefully people understand that Caleb is very limited on time and there can be a ton of nuance to each persons situation that is just impossible to narrow down in every episode. Thanks for your time, Caleb! These ham and cheese sandwiches are getting a little boring but there is a significant drop in meals and entertainment!
Are you doing detailing work for sales and leasing returns? Owners can usually profit big time from those, so they pay more for those services. With your established contacts to dealerships, you could offer an car sale service. People, especially women and young adults get often ripped off by dealerships if they want to trade in their car. You could get them better prices for a cut on the sale price difference.
@@Psi-Storm Yes! We just started offering a "Pre-Sale Detail" package this year and it has been mighty popular!
Is there anything else you can clean with your equipment? Maybe like garage clean-outs/organizations? Just something else to supplement your revenue and put your employee to work in the off season?
Also YNAB is amazing for budgeting. I tried them all but YNAB is the best
A few of my friends are in plastering and can’t work in the winter months so now they do Christmas decorations. They install them and the last few years have added the decorations to music. They are now making a really good amount of money off it. I hope you can see if it can bring you success as well
He is wrong on the meals. Daily lunches is not a tax deduction. If you are out of town or meeting with a client, that is another thing. Also, you can only have one office so paying rent for office space means that you can't write off your home office. IRS rules. Also, with business expense, remember that if you spend $100 on an expense it saves you about $25 - $40 on taxes. You have to ask yourself, do you need the expense. Is it better to save the money and pay tax on the $100?
He is barely making any money with the business, the write offs won't help at all.
@@Psi-Storm yep. Peanut butter and jelly sandwich, an apple, and water. Cheap lunch.
A dollar saved is a dollar earned.
At least he is also honest about high stress, high spending. Recognizing that is major considering most won't admit it.
For sure
Hi Caleb, thanks for covering all sorts of financial situations in these videos. As a public accountant specializing in small business advisory, this video hit really close to home. Small business owners who don't do a good job separating personal and business are the bane of my existence. You may want to request a General Ledger for the next small business you do. It'll give you the detail of each transaction in each account, so you can see exactly what he's spending on supplies and meals.
To limit flipping back and forth between personal and business, maybe in future do a business breakdown for 1 month to see what they net, then do a personal budget off of that. You kinda did that in this video, but I think segmenting it a bit better will help viewers follow along.
Thanks for you services for all the business owners out there haha
Great idea!
When he said the M&E was his personal meals and thought it would be a deductible business expense my head exploded. Nope. Not even at 50% if it’s just his personal meals at his regular place of business. 🤯
15 an hour to detail cars with no benefits, & no job security to go along with that.
He definitely needs to talk to a self-employment / small business tax accountant! A lot of his "deductions" don't really work the way he thinks.
Yup, this and him saying “legally speaking” means he’s gonna get audited soon lmfao
Right
Reminds me of the show Schidts Creek. "That's a deduction", "Do you know what a deduction is?"
@@larryburgess3313 WHO'S WRITING IT OFF DAVID?
Word to the wise, careful trying to take every write-off and deduction. That is a good way to have a meeting with the IRS. At least he has someone reviewing his books.
For sure
Only ten minutes in, but barely reading between the lines it sounds like he’s also committing tax fraud by not reporting tips.
@@BrianAnother I think most workers who receive tips don't report it
@@BrianAnother that’s literally 99% of people who work a service job that receives tips. Go to your local restaurant and on paper all the waitresses make minimum wage 😂
HAMMER TIME BABY 🔨
If you’re pulling 10k as profit after a busy active six months then you may need to revaluate the viability of your business.
I wonder how he is able to keep his head above water. He should have kept this a side hustle and work his ass off with a primary job.
@@justingeorge7665 it sounds like the work he's doing can't be done if he had a full time job on top of it
@@dip9995 definitely, he also said he is only able to do a car a day..... He is doing something wrong.
He did say "legally" 10k. All of those deductions he included for tax benefits were deducted from his overall income. He likely took home more money than 10k "less legally"
@@sarahloohoo2312 the deductions reduce his profit but the 70k revenue for him+an employee+leasing a shop space is still very low
He’s not paying that employee much of anything. If u was the employee I’d leverage my skills elsewhere for a higher wage. I feel like if the employee was on Caleb’s show he’d tell him to get a higher paying job…
Lots of employees don’t think that way
I probably would, but it’s always situation situation!
So, just to make sure I understood correctly. Is he writing off 50% of his lunches as business expenses? I don’t think he can do that unless he’s meeting with a client and discussing business during the meal or he’s traveling for business.
As someone who wants to start a small business of his own, I would absolutely love to see more small business breakdowns!
Bro needs to sell packages like monthly detailing and Christmas packages!
We do do quite a few gift cards! Getting people on a maintenance program is difficult, people have commitment issues 😅
A lot of people like to start the new year with a clean start. I wonder if you could market around that?
@@Hootenberryhootenberry A good idea!
I love how different the situations are for each person on your channel. Definitely gives me better perspective on my own situation
The lighting looks amazing on your end. I like it a lot better than the over-exposed look from before.
Always trying to improve :)
@@CalebHammer The only other thing I can poke at to improve on is hearing your audio on their side, or hearing the guest's audio on your side (through the speakers). Wearing headphones on your side and their side would fix this I believe.
I have worked with several businesses and unfortunately budgeting is a skill small business owners sometimes lack. The understanding of how to project, how it ties into growth plans and the difference between a projected budget and actuals. Kudos to this guy for recognizing it and getting help.
His business is simply not successful, he should be earning way more than 70k/year doing detailing while renting a shop no less. There are guys who make more than that doing mobile detailing out of their car. His business earns less than $200/day, typically independent detail shops charge at least $100 for a basic cleaning that takes them an hour or two to do. So if all he can get is two cars a day to detail, why is he hiring an employee? And yes I'm counting weekends as work days! If your business is failing, you should work every day until it's not
If he offers paint correcting and ceramic coating that will easily sell for $800-1000, shops around me charge as much as $1500 for it. And those two can be done on a car in a day or two at most with less than $200 in supplies.
If all he can get his customers to buy are basic detailing/car washing packages, he should lock himself in the shop until he's done at least 5 cars/day at $75/car MINIMUM
Why is he buying a $1k power washer? That's so overkill it will probably strip paint at half-strength, if he's broke he should buy a cheaper electric one for a few hundred bucks, those are perfectly adequate for washing cars.
There is something seriously wrong about how he's going about his business, if it were me I would not even think about hiring an employee until the business was making 100k+/year
The cheap pressure washer wouldn't even survive one full weeks work.
Best thing i did as a business owner was to set it up so i pay myself as a w2 employee.. thanks Caleb ✌️
We will be doing that for 2023. :)
@r_p_
An llc can add an S-corp attachment, this allows the owner to receive compensation/ paycheck just like the employees
@squish2913 it’s important to remember that there are rules that exist around compensation if you become an S corp
@Bufkin Smith what do you mean specifically?
I've been operating as an S corp for about 8 years now, with the main reason being that i can offer 401k to my employees and participate in it aswell
@@Liimpy "S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee. The amount of reasonable compensation will never exceed the amount received by the shareholder either directly or indirectly." from the IRS.
Basically, you must pay yourself a "fair" wage. You cannot pay yourself $0, you cannot pay yourself $1B. You must pay yourself somewhere around the market rate for the position that you hold. If you want to pay yourself above the market rate, you must do so in non-wage distributions (bonuses). The reason the IRS cares is that some people have tried to give themselves almost nothing in employment taxable wage distributions but give themselves a ton of money in non-employment taxable distributions (bonuses)
He really needed a plan for winter.
Market towards realtors, car is part of their image and they have to sell during winter.
Or any type of sales person on the door, higher level professionals and business people.
Under body washes during winter seasons are very important for keeping down rust from road salt
He is southeast Washington. We don’t salt the roads here on the west coast
I have a mobile detailing business also I started when I was 16 now I am 18 and working on getting the business licensed and insured. I agree with this man the as soon as we make good money we always have something breaking.
Always appreciate the constant shade thrown at David Ramsey, can't get enough lol
There’s a lot of co-mingling of personal and business assets. If I’m him I’m keeping business and personal separate. The business will make a monthly payment to me and one to the employee. The amount will depend on what can be sustained throughout the year. Budget decisions should be made based on that.
I would form a list of vlogs, blogs, books to recommend to people. I know you aren't a huge fan of Dave, but one of the best things I learned from his channel and books was changing our mindset around money, debt, budgeting, etc. I do not think we could have gotten where we are now without that. We had to learn to look at money differently and learn why we were in the spot we were and take some accountability. You are just simple too nice to these people for them to really learn. Break down that affirm payment for him and shout how much extra he is paying to simply just have money payments. It is throwing money away. Bless of Luck.
He buys all of his personal stuff through the business, certainly that can’t be legal. Just because the business buys it doesn’t mean it’s tax deductible and he clearly doesn’t know how deductions work. I wish him good luck on his upcoming audit.
Also, with the business becoming an LLC he needs to SEPARATE business and personal. There’s so much risk and possible illegal practices if he continues to act like the business’ money is his.
This is one of your most interesting videos yet. It shows the struggle for so many small business owners. I feel like most people our age have zero respect for people who succeed building a small business from nothing
I appreciate this comment. (I’m the business owner in the video)
@@JetlinerX thanks for doing this interview. It was really interesting but honestly I think Caleb skipped a step or two.
My advice to you would be to first completely separate your personal and business accounts. Pay yourself the bare minimum but never pull from your personal to pay for the business.
Second would be to pay the minimum payments on everything until you get your emergency fund. It makes no sense to pay off $2k of debt to have something else break and be $2k in debt again. Save 2-5 grand in the business account for emergencies only while paying the minimum and then start paying back the debt after.
@@tylersanders2388 thanks Tyler! I already pay myself very minimally as seen in this video and since the interview was done we have that couple thousand in saving as well. I agree we ran out of time to go over a full plan of action so I do appreciate your advice as well!
@@JetlinerX you’re doing great then. I wish you luck with your business and with life
@@tylersanders2388 thanks man!
The “It’s easier to get DoorDash” is such a dumb excuse. It takes no time or effort to make a sandwich and get some chips.
Exactly. I'm assuming he has a refrigerator at the business location.
He should try doing a Groupon deal to detail cars or offer Xmas detailing gift certificates to get more customers during the winter!
“It was just the nerves of you yelling at me and that’s all it took” I swear every paycheck I imagine your voice telling me what I need to do with my funds 😂
Detailing is how I made money during college. I know how winter can go. I still saved pretty all my money, but I did waste money on products or tools I didn't need.
$10k for me, $24k for the employee. Does not sound like viable business. 25% again - US interest rates are INSANE.
Wait till you hear about pay day loans
I am going to be controversial. He should only be making minium payments till Spring. The goal of this is trying to keep the employee as right now he won't be able to replace them.
He should look into the 'profit first' method of running a small business. That is a great starting point for a small business. Then look for ways to things he could do during the winter using the equipmnent and space he has.
Great video! Would love to see more small biz owners, and props to this guy for sharing it all!
When Daddy is mad 😂😂😂 It would be interesting to see follow up on your guests. I wouldn't want to disappoint and would do everything you told me if it meant not be scolded. I know it is all done in love though. These people are brave
I just need a picture of Caleb's disappointed face to put in my wallet for when I want to impulse spend.
@@npshmobile4659 me too. I have his voice in my head and if he is scolding me then I don't do it hahahaha.
I always get a chuckle out of these thumb nails.
Reminds me of my parents. Extremely intelligent overly educated people. One with a double bachelors business admin and accounting. Completely clueless with how to deploy their human and monetary capital.
Bankrupted in their 50’s with two small businesses nearly losing the house and precious heirlooms (jewelry).
Be extremely deliberate and thoughtful in what you do folks!!
8 years with no material change in net worth without considering opportunity cost is absolute cognitive dissonance.
The environment we have been living in the past decade, where everyone is getting the entrepreneurial bug and making RUclips videos on it is abnormal behavior and a symptom of the environment. There is no “secret”.
If he sees this video I hope he can hang Christmas lights for the high end customers in his area my friends who can’t work in the winter months try to get a good grip on that and make a lot of money now with their holiday decorations and even more if you can set it to music for them
Just a suggestion he’s already got a employee so two people could get it done fairly easily
My man needs to get a job during the slow months..Home Depot?
I think there should have been more emphasis on his income. He framed it as business is booming but after legit business expenses and adding back all the personal expenses this guy is making ~30k a year, plus he would have self employment tax on top of that. He can make more as an employee doing detail work and doesn’t have the stress of being a business owner. He clearly has a spending problem but clearly has an income problem as well. I’d be scared to death if I was this guys employee watching this that their boss barley makes any money and spends it all away.
Swamp cooler? Give offer up or apps like that a try to try and get stuff cheaper! A portable ac might help alil bit.
He needs to be proactive .
With a seasonal business going into hibernation maybe an opportunity to renegotiate the terms and conditions and interest rates with creditors allowing for an increased profit margin 👍👍
...electric pressure washer...Harbor Freight...$240 w/warranty...back in bsuiness in 10 min...
Sounds like his business has failed if 8 years into it it’s looking this rough. Wish him luck, but if it was me I’d shut it down and get a job.
Awkward moment when confronted about the low pay of his employee.
IRS watching this video like 👁👀👁👥
🤣🤣🤣
Another great episode Caleb. Hoping to help you take things to the next level!
Excited to take a look at what you put together!
We love you Caleb!
Yikes better hope the IRS isnt watching your videos Caleb!! He has multiple instances of tax fraud and Im less than 5 min in! - your friendly CPA
Businesses that operates on a profit margin can't really have a 6 months emergency fund unless the margin is huge. You can only have 1-2 months of funds stored, ore than that should be reinvested in the business to grow it and generate more money. if the business revenue is not stable like if you got contracts that brings guaranteed amount of work each month, it is vital to figure out the business trends how much you can expect to get each month of the year and set up the business to deal with that. Plenty of retail businesses hires on mass of extra fixed term casual staff in December for this reason, and plenty of businesses subcontracts out parts of their business too so you can offer complete packages without having to do every item yourself.
For example, he got this big expensive hire machine to offer this extra service. In busy months hire that machine and in slow months send the work to someone else with that machine so you don't have to pay for it at same monthly rent price to sit there not making you money half the month.
Just looking at this it looks like he needs a 2 person accountability on purchases made...... this would keep him from spending money on purchases that make no sense
“So he makes $24,000 a year?…….okay” I died
I still don't get why people pay for streaming services when there are pretty damn good free streaming services.
Not trying to be a jerk but I hope your employee doesn’t see this. I get you own the business but when you both detail cars and you’re making “that” much more man, just doesn’t look so hot.
Might sound extreme but if I was as broke as him... I would get out of that lease then go live in the shop his business rent and even clean cars overnight if the opportunity presents itself while no longer having a $750 rent.
I know for a fact that when you go without fast food for a year or two, your microbiome changes and you no longer want it. That is, if you eat as healthy as possible, in the meantime. If you still eat crap food while cooking at home, the microbiome might not change and that will prevent your cravings from going away.
..."HAM AND CHEESE AND CHEESE AND HAM"...!!!...-Caleb Hammer 2023
Wait, I work from home, it’s a hybrid schedule. .. can I write off my office for tax purposes?!
Nope.
@Jack damn it. Okay so only if I was 1099 right?
If your self emoyed and have no other location to work from you can. As an employee there might be a deduction for work expenses on your personal taxes
I don’t get the door dash. I have never done it one time ? Is it everyone is lazy as hell ? What a waste of money
Wow that sounds like a risky road to life.
Commenting for the YT algorithm Pt. 6
You’re the best 😊
Just watched the vid! Sorry Iv missed the releases, at least I get to binge your channel for a bit.
You rock! Have helped me a ton!
He has a nice air conditioned shop, why doesn’t he just live in there and cut out the 750 in rent?
Watching this in march, 2024. This type of content needs to return.
I liked this one but… I’m surprised on his down months you didn’t tell him to door dash or come up or an auto part delivery service 🤷🏼♀️
Spending money stresses me out, because afterwards I have less money.
I know that feeling I had wasting money on random things 😭
Love your advice on your videos. And your analysis that is for each individual is great.
My god I love these videos, keep up the incredible work Caleb!
I think (hope) that people are keeping their cars for a longer period of time. More detailing on older cars?
Always looking to see if there's a new video!
He should have been a lawyer legally speaking
My dude, you need to charge more and read Profit First to start thinking about how the business should be paying you.
Wait, are there people who do not write down every purchase they make in a spread sheet?
“Legally speaking”
Businesss not makin money hes better off workin full time n doin detailing on the side,hell make alot more
Caleb you can't break down his finaicials because it's BS PLEASE IRS AUDIT THIS GUY!
so he only makes 24k a year ? question mark question mark
Homie is not switching to ham and cheese. He's addicted to processed food.
He isn’t even taking into account filing next years taxes. He is gonna owe min $10,000 next filing.
Yeah :/
Can't believe he left that peice out. He is supposed to have 15 percent of all he made in an account for his taxes. He better hope winter doesn't come this year
@@justingeorge7665 He barely has any profits. Realistically he earns significantly less than his employee.
Caleb you messed up the title Every* also please hire me as your remote video editor.
It’s not remote 🥲
@@CalebHammer please make an exception 😂 I'll take a pay cut
Hammer time!
Dope trombone!
If you keep having to let someone or others go because of bad choices like this, this could just result in time, with them starting their own competing business, and then you're really screwed. Make better choices so it shows you're loyal, and loyalty gets rewarded.
I wish they had told us what this new service is It sounds interesting
The things we do to get fast food
Great episode!
Audit time
“Legally speaking” lmao
This was an interesting one!
I would love to go over my financials. How do we schedule a meeting?
Shoot me an email, length in the description!
Open up your shoveling business 🍀
Seems like his business really only pays like a side gig??
Thinking about letting go of his employee who he's paying crap when he doesn't pay any taxes because he cheats yep typical small buisness owner that cries the blue!
sell your car bingo:
❌️
So he makes 24k a year... hm Ok. 😂
Why not first recommend him to get a regular job and run his business on the side 2 person car wash does not need alot of book keeping he is lazy
Your employee should be a 1099 contractor.
Not if he provides the space and materials to do the job.
He can rent the space and the contractor can provide his own materials. He would have to then pay him much more, like $40-50 an hour but it would be much simpler legally and financially for him. He could collect a monthly floor fee rental of $100. Of course he’d have to calculate if it makes sense but it seems overkill for him to do a retirement account, insurance, taxes, etc for a $12k a year employee.
@@matthewtuxhorn9117 already said he has a space he works out of for admin duties
I'm typing my comment on Sept. 1st and I wonder how this guy is doing these days.