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Credit Lines for Cleaning Companies - Do You Need a Loan? - YouTube
Channel: Angela Brown Cleaning
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credit lines for cleaning companies do
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you need a credit line
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in order to build a cleaning business
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that's a great question
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hi there i'm angela brown and this is
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ask a house cleaner
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this is a show where you get to ask a
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house cleaning question and i get to
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help you find an answer
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all right now as we start the new year
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there are a whole bunch of house
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cleaners and they want to know should
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they run out and get a business loan so
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that they can build and grow a cleaning
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company
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my answer to you is no not yet the
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reason being
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is credit means you have to pay it back
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and so right now
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i don't want you to have something else
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you have to pay back until we have money
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coming in
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that will pay off those bills so
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starting a cleaning company you're
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already going to have some new bills
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but i want you to keep it really small
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and i say really small because
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when you plant a tree you don't go out
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and plant a 100 foot tree
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right that would be an enormous
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undertaking
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but the roots would probably not survive
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even if you did that
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okay so you plant a tiny seed and then
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you water it and you fertilize it and it
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grows
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and you keep watering it and you nurture
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it and it grows bigger
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and then the sun and the rain and all of
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the elements
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that kind of challenge the lifestyle of
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that tree
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turn it into what it is it ends up
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weathering the storms and it kind of
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you know grows bark and it gets a little
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bit stronger and it grows a trunk and it
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becomes a tree
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if for any reason you were just to start
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a business with a ginormous loan that's
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like planting the great big
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monster tree that the roots would
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probably not survive okay
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so don't take out a big business loan
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yet in the cleaning business
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and i'm gonna break this down this is
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not commercial cleaning where you clean
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office buildings that's a different
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youtube show this is house cleaning
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for house cleaning we need a cleaning
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caddy and a uniform
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right that's it that's pretty much what
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we're gonna do to clean it's
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us ourselves we are what's going in to
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clean
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and so you don't need a business loan
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for that now there are a lot of people
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that say well i need a company car i
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need to wrap my car i need advertising i
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need
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seo all right you do need all those
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things but
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not right now okay you're still a little
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seed that we're going to plant in the
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ground
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so right now the seed doesn't need as
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much nurturing and as much fertilizer as
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a ginormous tree
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it it just needs a little bit because
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it's small so right now we're going to
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keep the expenses
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really small now what i want us to do
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starting out
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is i do want you to get a company credit
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card
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in your company name here's the rule
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with a credit card
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you buy all of your cleaning supplies
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with the company credit
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card okay that's going to start building
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company credit for you
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but here's the rule to the credit card
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credit means you have to pay it back
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so you're only going to buy what you can
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pay off at the end of the month
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so before the bill is due you're going
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to pay off every penny that's on the
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credit card
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every single month every single month no
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matter what no matter
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if it's a personal card or a business
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card you're going to pay it off at the
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end of every single month
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what that shows the bank is that you
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have a credit line
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or that you have access to credit but
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that you're spending it for
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business only and that you're paying it
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off at the end of every month
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and so what that shows them is like well
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hey maybe we can trust
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this business we should give them a
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little bit bigger credit line
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and the credit line will grow over time
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okay so the day that you go to buy
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six company cars you will have a bigger
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line of credit where you will have
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established credit and the established
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credit allows you
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to walk into a bank and say i would like
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a business loan in order to grow my
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business
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now if you're growing your business it's
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because you're buying
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really expensive equipment or you're
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buying multiple cars or things like that
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okay starting out we don't need that and
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so starting out
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i want us to keep all the money that we
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earn i want us to just
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play a really close to home and i don't
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want us to spend any money we don't have
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to spend even in our personal lives
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so if you have an old phone and the new
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phone comes out
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keep the old phone don't upgrade to the
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new phone just because it's new
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right if the old one works hang on to it
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for a little bit longer and always ask
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yourself can i hang on to this for a
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little bit longer
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because if you're not spending the money
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you have the money either to reinvest in
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your business
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and also there are new expenses that
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you're gonna have that you don't have
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right now
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okay so for me i'm a huge fan
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of buying software and apps and the
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reason being
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is i myself can do a certain number of
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things
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i can do scheduling and invoicing and
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all that stuff
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just by sitting down with a pen and
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paper or typing it up or whatever
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but there are pieces of software like
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housecall pro that will do that for you
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and it creates templates so that every
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single time you go back to a customer
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you have a certain set of templates that
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you are
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are giving to that client it says here's
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the checklist for the day
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here's the job that we did today here's
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the job dispatch that goes to the
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even if you hire somebody that goes to
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the cleaning employee
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then there's that invoice it's already a
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template it already exists it's already
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got the customer's name on
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it so all that stuff already exists i
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just said housecall pro check it out
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housecallpro.com forward slash
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angela they do have a deal for me and my
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friends that will give you a discount
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also check for different industry
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providers
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who have discounts now i know over at
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savvy cleaner which is a learning
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library that i run
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for house cleaners at the top there's a
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resource
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section and if you are new to the
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business and you have not joined the
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program
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you can still access that resource
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section we have provided a lot
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of stuff for you for free because i
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don't want you to spend the money as you
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get started
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i wrote a book called how to start your
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own house cleaning company and it is
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a hundred percent free on amazon you
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download it and you
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read it on any device with the free
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kindle app if you buy the hard copy you
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do have to pay for the hard copy but you
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can download the ebook
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for free okay and on this youtube show
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this is also a podcast that is in 90
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different podcast
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apps over a thousand shows that answer
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your cleaning questions
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for free so i i don't even want you to
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come to the learning library until you
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have money coming in
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until you're at a certain level of your
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business right
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i want you to get started for free
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here's the reason why
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there are a lot of house cleaners that
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think they want into the house cleaning
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business
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and they will they will get in and they
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just go all in
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there's one guy i know that went out the
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first thing he did is he spent three
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thousand dollars and he wrapped
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his company car great big flashy logo
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name it looked amazing he went out and
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he bought door hangers and flyers and
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four color printing and high gloss
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printing
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and his marketing materials look amazing
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but he didn't have
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any customers to help pay for those
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expenses to pay back
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so yes he did get loans he did invest he
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went all in
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he bought a couple new cars he bought a
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bunch of equipment he just he got really
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involved in the business
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and it was all flash and no work and he
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had no work and then no work and no work
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and no work because he missed some of
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the basics
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it's like planting that great big tree
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and the root system started to waffle
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and then the roots started to die and
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shrivel up
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and it's kind of like whoa we can't
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support this great big massive thing
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that's here
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because we we haven't established
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ourselves yet
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and then he went out of business and he
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went bankrupt and i don't want that to
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happen to you i've seen it all the time
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with well-intending business owners so
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do you need a credit line to get in the
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business
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no you don't no not yet not yet the day
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will come when you expand
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but you will have money in the bank you
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will have a business credit because you
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will have built credit over time
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you will have tax records where you can
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show every penny
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that's come in and every penny that's
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gone out and if you're not tracking that
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right now i want you to track
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every penny i want you to know at the
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end of the year how many
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swiffer dusters you bought and how much
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down to the penny
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you spent on them during this year i
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want to know down to the penny how much
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did you spend on glass cleaner
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it's important to know because how will
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you budget
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in the next year going forward knowing
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how many customers you have to have
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based on the expenses that you have so
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you have to know what your expenses are
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you have to know what money is coming in
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and then because we pay taxes and we're
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good upstanding citizens
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you're going to take about 30 of
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everything you
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earn and you're going to set it aside
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for taxes because we pay our taxes
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and when you go to buy a house when you
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go to buy company cars they're going to
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say let me see your tax records they
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want to know are you a real business
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did you really earn money did you pay
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your taxes and how does
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your financial history look if you
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are just accepting cash and you're not
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reporting your income
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and you're not keeping track of your
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income and you're just buying a bottle
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of supply here oops i ran out and you go
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buy another bottle
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and you're not tracking it you're never
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going to survive in business
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and i hate to say that i hate to be ugly
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but your business will just
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fall apart because you don't have the
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basics of the accounting in place
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so i really want you to just stop for a
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second spend
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as little money as you can getting
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started and we will help you grow
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from a little a little seed to a great
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big massive
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oak all right i hope this helps a little
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bit if it does please
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leave your comments in the notes below
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give us a thumbs up or subscribe
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and until we meet again leave the world
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a cleaner place
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than when you found it
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