November 2023 Income At-A-Glance

Gross Income for November: $169,518

Total Expenses for November: $9,984

Total Net Profit for November: $159,534

Difference b/t November & October: +$17,686

% of net profit to overall gross revenue: 94%

Why We Publish An Income Report

This monthly income report is created for you, Fire Nation!

By documenting the struggles we encounter and the successes we celebrate as entrepreneurs every single month, we’re able to provide you with support – and a single resource – where we share what’s working, what’s not, and what’s possible.

There’s a lot of hard work that goes into learning and growing as an entrepreneur, especially when you’re just starting out. The most important part of the equation is that you’re able to pass on what you learn to others through teaching, which is what we aim to do here.

Check out all of our monthly income reports – from the very beginning!

Let’s IGNITE!

**We’ll receive a commission on the affiliate links below. If you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.

Ron Parisi’s Monthly Tax Tip

Hello, Fire Nation! Ron Parisi from CPA On Fire here with our November 2023 Tax and Accounting tip!

At CPA On Fire, we specialize in working with entrepreneurs to minimize their tax liability while keeping them in line with the ever-changing tax laws.

Our firm has been working with JLD & Kate at Entrepreneurs On Fire for years now, and they’ve included me in these monthly income reports with unlimited access to all their accounts so I can verify that what they report here is complete and accurate.

And because they believe in delivering an insane amount of value to you, my job doesn’t stop at the verification level; I also provide a new tax and accounting tip every month!

Ron’s November Tax Tip: How to lower your tax bill this year

As we wind down 2023, I know taxes are not the most exciting topic, but trust me… This quick guide is a surefire way of unlocking some major savings.

So today, let’s have a rapid-fire session on how to lower your tax bill this year.

Business Side Strategies

Qualified Business Income Deduction (QBID). If you’re a high earner, max out your QBID for a 20% reduction on your federal taxes.
Retirement Planning. Be it a solo 401k, a traditional 401k, or another plan, make sure you have a solid retirement strategy in place.
Last-Minute Expenses. If 2023 was a banner year, consider prepaying expenses like insurance premiums or accounting fees.
Asset Purchases. Purchasing assets, such as a vehicle, even at the last minute, may score additional deductions.
PTE Opportunities. Check if your state has a plan for additional tax benefits. If it’s too late this year, keep it on the radar for 2024.

Personal Side Strategies

Tax Loss Harvesting. Review your personal investment portfolio for any losses that can offset gains. It’s like cleaning the house and saving on taxes at the same time.
Charitable Contributions. ‘Tis the season for giving, and it might just lower your tax bill. But do make sure it aligns with your financial goals.
College Contributions. For those with 529 plans, making a deposit could bring some state tax relief. It’s beneficial for education and tax savings.
Retirement Contributions. Didn’t max out your employer’s offerings? Make an IRA contribution before the year ends, or early next year.
Utilize your Child Care & Medical expenses. Gather your childcare and medical expense receipts. They could be the key to reducing your tax liability.
Health Savings Account (HSA). Don’t overlook the HSA deduction, especially if you have a high-deductible plan. This deduction often slips through the cracks.
Energy Credits. Watch out for energy credits as you make improvements to your home or invest in energy-efficient vehicles. This area is evolving, and there might be more opportunities in the future.

As we close the books in 2023, it’s the prime time to plan for 2024. Connect with your tax professional and strategist to come up with a comprehensive plan. Start the year with a strategy in place and consistently revisit it to ensure you’re on track to minimize your 2024 taxes!

I also want to wish everybody a wonderful holiday season from all of us at CPA on Fire. This is Ron Parisi, go out there, finish up the year strong, and we’ll see you in 2024!

As always, it’s always a pleasure to be with you, Fire Nation! Wishing you a successful month ahead – go out there and crush it!

CPA on Fire offers CFO and fractional financial operation services. We have vast experience working with high-growth entrepreneurs. If you recognize the need to level up your financial operations to improve growth, profitability and free your time, let’s connect! We can show you how we help our amazing clients and what we can possibly do for you and your business.

Check out our website: CPAOnFire.com!

David Lizerbram’s November Legal Tip

Commercial Leases: What Every Business Owner Should Know

What’s up Fire Nation! David Lizerbram here and I’m excited to be back with another legal tip for you! I’ve been practicing law for 21 years and have loads of free content over at LizerbramLaw.com.

This month’s legal tip is all about Commercial Leases: What Every Business Owner Should Know.

Whether you’re setting up your first storefront or relocating your corporate offices, navigating the world of commercial leases can be complicated.

This piece is designed to make that process a bit more manageable by covering key elements you need to know before signing any commercial lease.

Of course, this income report can’t cover every issue that comes up – it’s intended to be a high-level overview.

The Basics: What is a Commercial Lease?

Simply put, a commercial lease is an Agreement that allows a business owner to rent a space for commercial activities.

Unlike residential leases, which are often standardized, commercial leases can vary widely in their terms and conditions. So it’s essential to know exactly what your business is agreeing to.

Types of Commercial Leases

There are several types of commercial leases, including:

Gross Lease: You pay a fixed monthly amount and the landlord covers all other property expenses.
Net Lease: You pay the base rent, plus, often, one of the following: property taxes, insurance, and maintenance costs.
Triple-Net Lease: You pay the base rent and all of the property’s operating expenses (proportional to your space), including taxes, insurance, and maintenance. This type of lease can offer a lower monthly rent, but can expose you to fluctuations in operating costs.
Percentage Lease: Rent is based on a fixed minimum plus a percentage of your monthly sales. This is common in leases for stores, restaurants, or locations where services are sold onsite. The advantage (in theory) is that both you and the landlord are incentivized to make sure there is foot traffic and the business succeeds.

Understanding the type of lease you’re entering into will have implications for your operational budget, so make sure you know the difference.

Negotiating Terms: It’s More Than Just Rent

When you’re presented with a commercial lease Agreement, you’ll notice it’s not just a simple rent-for-space deal.

Here are some terms you should be aware of:

Lease Term: This is the length of the Agreement. Short-term leases offer more flexibility, but long-term leases may provide rent stability. Often, there are also renewal terms – be sure you understand who has the right to renew (extend) the lease, for how long, and at what cost.
Rent Escalations: This clause explains how and when the rent will increase over the term. It’s common for rent to increase by a fixed percentage on an annual basis.
Security Deposit: Know how much you’ll need upfront, and the conditions under which you’ll get it back.
Maintenance and Repairs: Clarify who is responsible for what.
Exit Strategy: Conditions for terminating the lease should be clearly defined, including any penalties for breaking it early.
Personal Guarantee: For small or new businesses, landlords often require one or more individuals to personally guarantee the lease. This means that if the company goes out of business, or simply fails to pay the rent, the landlord can go after you personally for the unpaid rent – plus interest and other damages, such as attorney’s fees.

Even Big Companies Run Into Commercial Lease Issues: Starbucks v. Simon Property Group

In 2017, Starbucks wanted to close 77 of its Teavana stores located in malls owned by Simon Property Group. However, their commercial lease agreements included “continuous operation covenants,” which legally required the stores to remain open.

Starbucks tried to exit these agreements, but faced legal challenges. A court ruled in favor of Simon Property Group, emphasizing the importance of understanding lease terms before signing.

Even a huge corporation like Starbucks can be caught up in commercial lease issues.

Takeaways

Leasing a commercial space is a significant commitment that should not be taken lightly. From understanding the type of lease to knowing the ins and outs of the Agreement, it’s crucial for business owners to be informed.

If you have legal questions about your business, feel free to be in touch with me. I’m always happy to talk with members of Fire Nation.

What Went Down In November

Interview of the Month

Becoming a coach of the future – Intro to A.I. with Eben Pagan

3 Value Bombs

Attaining peak success can transform you into your best self.
It is not about getting things for yourself; it is about understanding the challenges, desires, and needs of others
Generative AI is even more meaningful; professionals, entrepreneurs, and coaches must start using and practicing it.

Coach Expo 2023 – Unlock the next level in your coaching practice with the “best of the best” in the world – success leaves clues, and they’ll show you the way! It’s 100% virtual!

Welcoming Baby Dumas

Fire Nation, we have a new family member we’re so excited to introduce you to!

Meet Bo Arthur Dumas, born in our own bedroom in Palmas Del Mar on November 14th at 7:17pm; 7 pounds 14 ounces and 19 inches long.

Every parent knows the feeling of seeing and holding your baby for the first time. John caught Bo as he entered this world, so he had the full immersion experience!

I know every parent would agree: that moment gives gratitude a whole new meaning.

I bring this up because it’s usually around this time of year when we’re especially sentimental about everything we have to be grateful for.

I know this holiday season we’ll be reflecting on and expressing gratitude in a whole new way.

Even though parenthood decided to throw us for a loop very early on in our journey, we’ve remained positive and hopeful throughout – and grateful that we have a beautiful baby boy we can hold in our arms.

About two hours after Bo was born, our doctor was monitoring his vitals. His blood oxygen levels were incredibly low.

After checking them 3 different times with 3 different devices he told us that John had to pack a bag and get in the car – we were going to have to admit Bo to the NICU.

It was heartbreaking to have Bo taken away out of nowhere – especially so soon after birth. I wasn’t able to go to the hospital since I was in major recovery mode, but we did return to San Juan the following day and rent an AirBNB for seven days so we could see Bo every day.

I know this is the first of many surprises that parenthood will bring.

There’s a lot you can control – like your attitude, outlook, and gratitude.

And there’s a lot you can’t control – like whether your baby needs immediate medical care.

After seven days in the NICU we were headed home with Bo in our arms – and for that, we’re eternally grateful.

Gus is still getting used to having a baby brother, but regardless, he’s definitely making sure we’re all protected!

Thank you so much for all the love and positive energy you’ve been sending our way, Fire Nation. It means the world to us.

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November 2023 Income Breakdown*

Product/Service Income: $164,813

TOTAL Journal Sales: $2,283 | Total Journals Sold: 67

The Freedom Journal: Accomplish your #1 goal in 100 days!

Total: $1,161 (36 Freedom Journals + 1 Digital Packs sold)

The Mastery Journal: Master Productivity, Discipline and Focus in 100 days!

Total: $842 (17 Mastery Journals + 6 Digital Packs sold)

The Podcast Journal: Idea to Launch in 50 Days!

Total: $280 (7 Digital Packs sold)

100 Day Goal Journal: $3,124 (royalties)

Podcasters’ Paradise: The #1 Podcasting community in the world!

Recurring: $4,253 (40 recurring)
New members: $1,045 (2 new members)
Total: $5,298

Real Revenue: Turn your BIG IDEA into Real Revenue

Total: $0

Podcast Sponsorships: $154,071

Podcast Launch: Audiobook: $32 | eBook: $5

Free Courses that contribute to the above revenue:

Your Big Idea: Discover your big idea in under an hour!

Free Podcast Course: Create and launch your own podcast!

Funnel On Fire: Create a funnel that converts!

Affiliate Income: $4,705

*Affiliate links below – if you click on my affiliate link and sign up for the products and services I trust and recommend, then I will earn a commission.

Resources for Entrepreneurs: $3,456

Audible: $32
Bluehost: $0
Click Funnels: $3,419
CovertKit: $5
Coaching referrals: $0 (email me for an introduction to a mentor for overall online business or a Podcast focused mentor!)

Resources for Podcasters: $340

Podcasting Press: $0
Splasheo: $0
Fusebox: $0
Libsyn: $236 (Use promo code FIRE for the rest of this month & next free!)
Repurpose House: $88
UDemy Podcasting Course: $16

Other Resources: $909

Amazon Associates: $21
Other: $888

Total Gross Income in November: $169,518

Business Expenses: $6,990

Advertising: $24
Affiliate Commissions (Paradise): $23
Cost of goods sold (Journals): $289
Fulfillment: $0
Consulting: $68
Design & Branding: $0
Dues & Subscriptions: $126
Legal & Professional: $0
Meals & Entertainment: $413
Merchant / bank fees: $1,728
Amazon fees: $903
PayPal fees: $18
Office expenses: $50
Community Refunds: $1,394
Promotional: $79
Travel: $0
Virtual Assistant Fees: $1,875
Website Fees: $0

Recurring, Subscription-based Expenses: $2,994

Adobe Creative Cloud: $60
Accounting: $468
Analytics: $70
Boomerang: $90 (team package)
Authorize.net: $29
Google: $75
Cell Phone: $152
ChatGPT: $20
CookieYes: $10
GoDaddy: $44
Internet: $68
eVoice: $13
Keap CRM: $360
Insurance: $669
Libsyn: $209
Linktree: $6
Taxes & Licenses: $505
Patreon: $40
Shopify: $36
Xero: $70

Total Expenses in November: $9,984

Payroll to John & Kate: $15,900

In our May 2014 Income Report and our June 2016 Income Report, Josh focuses on how to pay yourself as an entrepreneur. Check them out!

Wondering what we do with all of our net revenue? We share all in our April 2017 Income Report :)

Total Net Profit for November 2023: $159,534

Biggest Lesson Learned

My word of the year

In last month’s income report we shared how to stay focused in 2024 by choosing a word of the year. This exercise was inspired by Chris Brogan, who happens to be hosting a workshop on choosing a word of the year (or three) if you’re interested.

What I didn’t share is the word that I’ve chosen for 2024: surrender.

I knew this word would come in handy given that we’ve just welcomed our first baby into the family, but to be honest, I had no idea how necessary this word would be for my year-end here in 2023.

From my first contraction to holding Bo in my arms was 30 hours. Without going into a ton of detail, the birth was really tough. I repeated the word surrender in my mind a thousand times to help remind myself that this wasn’t within my control – and it helped me so much.

Instead of a hospital transfer and a C-section – which I know is exactly what would have happened if I would have been in a hospital setting – I was able to give birth how I wanted to: at home.

As we shared earlier in this report, Bo was born with very low blood oxygen levels. Come to find out he had phenomena. We spent the next seven days in the NICU – the first three of which we weren’t even able to hold him.

Again, I repeated the word surrender in my mind a thousand times.

And as we settle into a whole new life as parents – navigating the up’s and down’s of having a newborn in the house and our daily and nightly routines being completely flipped upside down… You better believe it: I’ve repeated the word surrender A LOT.

So while I knew this word would come in handy for 2024, what it has already done for me to close out 2023 is priceless.

So if you haven’t chosen your word of the year for 2024 yet, check out Chris’ planning session (happening Dec 19, 2023). It’ll be well worth it once you have your word (or three) for 2024.

Until next month, keep your FIRE burning!

~ Kate & John

Note: we report our income figures as accurately as possible, but in using reports from a combo of Infusionsoft & Xero to track our product and total income / expenses, they suggest the possibility of a 3 – 5% margin of error.

Click here for all of EOFire’s Income Reports

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