Richard A. Lindsey, CPA

Lindsey & Waldo, LLC – Certified Public Accountants

  • Jul 21

    Many Americans appear to be living one big expense away from disaster. A 2014 Federal Reserve poll discovered the startling fact that almost half of all U.S. households could not come up with $400 to cover an emergency expense. They would need to sell something, or borrow cash, to do so.

    If you find yourself belonging to that category, then I have some ideas (11 of them, in fact) I think will help. In my experience, if you want to get out of a hole, you study the behavior of those who have already made it out. And you do everything you can to copy that behavior.

    Yes, some people have been fortunate enough to inherit wealth, etc. But many, MANY more of those who have wealth came about it in a different way.

    Now, so that YOU do not find yourself in the unfortunate place of not being able to scrape up $400 in an emergency … read this now.

    Becoming a household that will be able to ride through instability and uncertainty is only going to become MORE important in future years, not less. So, that being the case, here is a portrait of those who are able to achieve this status.

    You’ll notice that these are just as significantly about your mindset as you relate to your finances, as about your behaviors.

    Here’s what the Financially Secure look like …

    1) He always spends less than he earns. In fact, his mantra is that over the long run, you’re better off if you strive to be anonymously rich rather than deceptively poor.

    2) She knows that patience is truth. The odds are you won’t become a millionaire overnight. If you’re like her, your security will be accumulated gradually by diligently saving your money over multiple decades.

    3) He pays off his credit cards in full every month. He’s smart enough to understand that if he can’t afford to pay cash for something, then he can’t afford it.

    4) She realized early on that money does not buy happiness. If you’re looking for financial joy, you need to focus on attaining financial freedom.

    5) He understands that money is like a toddler; it is incapable of managing itself. After all, you can’t expect your money to grow and mature as it should without some form of credible money management.

    6) She’s a big believer in paying yourself first. It’s an essential tenet of personal finance and a great way to build your savings and instill financial discipline.

    7) She also knows that the few millionaires that reached that milestone without a plan got there only because of dumb luck. It’s not enough to simply “declare” to the universe that you want to be financially free. This is not a “Secret”.

    8) When it came time to set his savings goals, he wasn’t afraid to think big. Financial success demands that you have a vision that is significantly larger than you can currently deliver upon.

    9) He realizes that stuff happens, and that’s why you’re a fool if you don’t insure yourself against risk. Remember that the potential for bankruptcy is always just around the corner, and can be triggered from multiple sources: the death of the family’s key breadwinner, divorce, or disability that leads to a loss of work.

    10) She understands that time is an ally of the young. She was fortunate (and smart) enough to begin saving in her twenties, so she could take maximum advantage of the power of compounding interest on her nest egg.

    11) He’s not impressed that you drive an over-priced luxury car and live in a McMansion that’s two sizes too big for your family of four. Little about external “signals” of wealth actually matter to him.

    And a little bonus, if you will: She doesn’t pay taxes which could have been avoided with a simple phone call to her tax professional. She plans ahead, before tax time.

    “You cannot control what happens to you, but you can control your attitude toward what happens to you, and in that, you will be mastering change rather than allowing it to master you.” – Brian Tracy

  • May 24

    They played baseball together for ten years, and it happened so often, Franklin P. Adams, a New York Evening Mail columnist, wrote an eight-line poem about it. Originally published under the title “That Double Play Again,” it is better known as “Baseball’s Sad Lexicon,” or simply as “Tinkers to Evers to Chance.”

    These are the saddest of all possible words:
    “Tinkers to Evers to Chance.”
    Trio of bear cubs, and fleeter than birds,
    Tinker and Evers and Chance.
    Ruthlessly picking our gonfalon bubble,
    Making a Giant hit into a double—
    Words that are heavy with nothing but trouble:
    “Tinkers to Evers to Chance.”

    A little background: Back when the Chicago Cubs were a dynasty they won the National League pennants in 1906, ’07, ’08, and ’10 and the World Series in 1907 and ’08. Anchoring their infield were shortstop Joe Tinker, second baseman Johnny Evers, and first baseman Frank Chance -the best
    double play combination of the day.

    Adams considered the poem a throwaway when he wrote it. He simply wanted to get out to the ballpark and watch the game. But those three may still be the best known Cubs of all time.

    But, it didn’t happen by chance. (Did you see what I did there?) It happened by teamwork. It happened because they practiced. It happened because Tinkers and Evers and Chance developed a special relationship with one another unlike most others. The same is true if you’re trying to grow your business by word-of-mouth. You can’t expect people to shout your praises and send you referrals just because you showed up at the ballpark. It takes a relationship to make it work. Referral relationships work just like other relationships work.

    Think about the relationships you have with your neighbors. How willing would they be to help you out if your car broke down? Depending on your relationship, they might each respond differently. One might outright refuse to help. Another might share the name of his favorite mechanic. Another might be willing to take you or pick you up at the garage. Still another might insist on fixing it for you at no cost. Each of your neighbors may display a different willingness to help. And naturally, your willingness to help them would probably differ as well. Even your requests for help would be dependent on your history with each of them.

    Great referrals don’t happen just because you ask. At some level of consciousness, people who are good salespeople know this. Yes, sometimes, just asking for referrals will work, but more often, asking someone with whom you haven’t yet developed a relationship, may sour them forever.

    Like a great double play combination, it may look easy, but it takes a lot of work behind the scenes to make it happen. Getting ideal referrals with strong introductions from influential people involves planning, preparation, and practice. It involves developing that special relationship.

  • Apr 27

    In business, doing what others don’t do can often give you an edge. It can position you head and shoulders above your competition. It helps you stand out in a positive way, and when you do, people are attracted to you and your business, and your success grows stronger, deeper, and more durable.

    Asking for feedback is a simple way to gather information for improving our businesses, but many of us never take the time to ask. We get so wrapped up in the day-to-day running of the business that we fail to pause and ask people, “How are we doing?” Others are simply intimidated by the process – and afraid of what they’ll hear.

    According to the book The 29% Solution by Ivan Misner and Michelle R. Donovan there are five main reasons why we don’t ask for feedback: (1) we’re afraid the response will be negative; (2) we don’t know who to ask; (3) we don’t know when to ask; (4) we don’t know how to ask; (5) we don’t want to take up other people’s time. With all these objections, the thought of asking for feedback can give us heartburn, but it’s worth the pain; the potential for growth can be tremendous.

    Whether positive or negative, feedback should be considered constructive, because it helps our business develop new products, improve existing services, and sometimes adopt a whole new approach.

    Fear of a negative response may be what keeps many of us from asking for feedback. Nobody is eager to be criticized. But, as difficult as it to receive, negative feedback is actually a gift. It’s a reality check; it reminds us that no matter how good we are, we can always improve. It’s also a reminder that we can never make everyone happy. If you’re willing to ask for feedback, you’re going to get some negative feedback along the way. It’s your attitude toward it that will turn that negative feedback into an opportunity. Don’t ask for feedback unless you’re ready to hear it – and respond to it constructively.

    Whom should you ask for feedback? One answer is everybody. Ask your coworkers, supervisors, subordinates, partners, customers.

    When is the best time to ask for feedback? That depends. A professional development trainer might ask for feedback several times. During a session, so it can be tailored, the end of a session, and three or four months afterwards. She’ll ask different questions at different times. Someone selling a product might need to give the customer time to use it, or might not. Someone selling professional services might want to ask shortly after the services have been delivered.

    What if you don’t know how to ask for feedback? The easiest, and most logical, way is make it part of your sales process. Many companies use a questionnaire; some hand it out upon completion of the assignment, some e-mail it afterward, and some mail it as a follow-up in a few weeks. How you choose to do it depends on your customer base.

    The last reservation that a lot of us have is that we are reluctant to take someone else’s time by asking for feedback. What a cop-out. Adults have the option of saying no. It’s our responsibility to ask. Increase the likelihood that you’ll get useful feedback by making the request simple and timely. If it’s too complicated, or if you set a hurry-up deadline, your requests may end up in the circular file. Make the deadline too far off, and people will set it aside and forget it.

    I dare you – do something few others do. Stand out from the crowd. Ask for feedback. And be ready to turn it into opportunities for your business.

  • Jan 6

    A thoughtful estate plan can make your heirs lives easier. But it is your parents’ estate planning that will make your life easier.

    Not every family has fostered the ability to speak openly in love. But if you have begun that process, here is an outline of what grown children need to know about their parents’ business. In fact, adults of any age should update their estate plan every year.

    And, as a parent, if you are willing to share some of this information with your children—especially if one of them is also the executor of the estate— they’ll appreciate having the facts and be more prepared emotionally when the time comes. They will know your wishes ultimately anyway, and good communication will lessen any surprises ahead of time. They will benefit from knowing the answers to the following questions:

    Do you have enough saved for a comfortable retirement? Many financial planners use a safe withdrawal rate by age to make sure the clients will still have enough money toward the end of their retirement. But, this isn’t always the case, and is worth looking into. If your spending is under this withdrawal rate, you have more than enough and probably can leave a legacy to your heirs. But, if you are over this rate, you may run out of money and have to compromise your standard of living abruptly. It may be uncomfortable, even embarrassing, for parents to share their finances with their children, but grown children often want to know how their parents are doing.

    Where are the important documents? The five documents your children should be able to retrieve quickly are: a will; a living will; a power of attorney; a directory of basic information; and the latest end-of-year financial statements.

    The directory of information should list the assets of your estate, along with the account or policy numbers and contact phone numbers. It also helps to indicate your intentions for the distribution of each asset, which will help confirm you have the correct titling and beneficiary designations on every portion of your estate.

    You may have structured your will to divide your estate equally among your children. But, if you have tried to make it easy for one child to access your bank accounts by adding his or her name, you have overridden your estate plan and left that child joint tenancy with complete rights of survivorship. This can be a problem.

    Titling and beneficiary designations are legal estate planning actions. It’s best to review them with your legal advisor. Various types of assets are best designated differently in the estate plan. This is not the occasion for do-it-yourself thrift. It is a rare family that has compiled and reviewed a complete list of estate assets: bank accounts, investment accounts, retirement accounts, real estate holding, life insurance, health savings accounts, and so on.

    Are there any special bequeaths? Any promises you have made should be documented. Your good intentions won’t matter if you aren’t around to implement them. If you have promised money to a charity, and want that obligation kept, document it. If you have promised to loan a child money, document it. If you have promised to help fund your grandchildren’s college education, document it. Without documentation, none of these promises can be kept if you aren’t around to make the decisions.

    Are there plans to remarry? If parents have remarried, intergenerational estate planning is even more critical. Prenuptial agreements and careful estate planning are required in the case of second marriages, to avoid disinherited children or grandchildren from the first marriage. The default is rarely a good option.

    Do you have any prepaid funeral arrangements? Do you want to be buried or cremated? Do you have any preferences for a memorial service? Although it may seem macabre to plan your own funeral, a memorial service takes time and thought. It will be that much more special and comforting to your family when it is filled with your favorite music and readings. Encourage your children’s interest in your estate planning. Most of the time, their intentions are honorable. They may simply want to understand your values and therefore your wishes.

  • Dec 9

    Shhhh! I have a secret for you. I’m going to share it with you today, but you have to promise to keep it under wraps.

    Applied to your business correctly, this one “secret” could transform your business. If you have the faith to apply this secret correctly, it could be worth millions. Your life could change from struggling to keep the wolves at bay to successful entrepreneur nearly overnight.

    Okay, here’s your tip of the day. Well, it’s not so much a tip of the day, as it is the tip of the week, or maybe the tip of the year…

    Change your prices. That’s all you have to do. I have seen more people make more money simply by raising their prices than any other advice I’ve given them.

    Nearly every business person grossly underestimates the elasticity of price, and neglects the fraction of their customers/clients/patients who will cheerfully buy a higher priced premium option of what they sell if only it were offered. They leave a lot of money on the table by not offering a leather bound version of the paper bound product; a red door to walk through in the back instead of the blue door in the front.

    Marketing guru Dan Kennedy talks of the time he lived in Phoenix. At the time, there was a very popular nightclub in Phoenix that had a big, long rope line in the front where you could buy a card for $500 a year that allowed you to stand in the rope line in the back. Well, you say, who’s gonna buy a card for that? A lot of people did, based on the length of the line in the back. In fact, some nights the rope line in the back was longer than the rope line in the front.

    Not everyone will, but there are plenty of customers who will select a premium option. Price is very elastic. Most business people don’t understand just how elastic price is because of the manner in which they set their prices. Here’s what most people do, and I’d be willing to bet you’ve done the same thing. They look around at what everybody else in their industry is charging and set their price right in the middle. They think they’re being “competitive.” If they’re really daring, they try to be a little higher than the average; or if they think they can buy volume, maybe they set it a little lower than average.

    Alas, there are also those poor souls who attempt to price themselves at the bottom of the heap in order to proclaim they have the lowest prices on the block, in their town, their region, or whatever. It is a dangerous strategy because, as I’ve warned you time and again, there is always someone willing to go out of business faster than you are.

    Here’s the power of transaction size. Granted, it’s a very simple example, but one you might ought to post on your wall where you can see it every day. How do you get to a million dollars in sales in your business? You can get there with one transaction, if you can sell someone something for a million bucks. If you’re going to sell something for $100 it’s going to take you 10,000 sales to make it. Making a million dollar sale is not 10,000 times harder than making a $100 sale. It just isn’t. Now, I’m not saying Starbucks could figure out how to make a million dollar sale, but they did figure out how to sell a cup of coffee for $8. They didn’t do that by getting a committee together in a conference room and saying, “Let’s see, Denny’s sells their coffee for $0.55 and Dunkin Donuts is $0.72, so, let’s be courageous and go for $0.99.” That’s NOT how they got there.

    You’re familiar with Omaha Steaks, right? They come in a Styrofoam ice chest delivered to your door. They have good steaks. But, you know they also have hamburgers. And they have hot dogs. All of them delivered right to your door. So, Omaha steaks are, let’s say, double or triple the price of the best beef being sold in the supermarket or butcher shop. Maybe they’re five times as much as Sam’s or Costco. Yes, they do deliver, but a steak is a steak is a steak. Right?

    Wrong! Now, there’s Allen Brothers. Ever try theirs? I hear they are wonderful. It’s twice the price of Omaha. These guys are in the same business, catalogue selling of steaks, hamburgers, hot dogs, and they have the gall to charge twice as much as Omaha! And people are switching like there’s no tomorrow.

    I recently read about a cosmetic surgeon, Doctor Fairfield, who lives in the Philadelphia area. He does seminars to bring in new patients. At the seminar he offers a $25,000 membership in the practice for the patient to have all the cosmetic procedures they want or need for three years. So you want to come have a Botox shot every day? You can; $25,000 membership fee up front. Five people in a room of 150 chose this option, and three of them had no prior relationship with him. They showed up based on a newspaper ad and plunked down $25,000. That’s price elasticity. It’s everywhere. I promise you, most people don’t understand it and most people underestimate it.

  • Nov 22

    Gwen Jorgensen recently became the first U.S. woman to win Olympic gold in the triathlon, crossing the finish line with a time of 1:56:16.

    Jorgensen earned a master’s degree in accounting at the University of Wisconsin-Madison, passed the CPA, and took a position as a tax accountant with the EY corporate tax group. She didn’t even take up triathlon until after college. In college, Jorgensen was a runner and swimmer, and was approached by USA Triathlon looking for college athletes they thought would be successful in the sport. She initially turned USA Triathlon down, but they convinced her to try the sport as a hobby while working for EY.

    With the help of one of the tax partners at EY, Jorgensen was able to work a flexible schedule to accommodate travel for competitions and time to train for the 2012 Olympics in London. After the London Olympics, she decided to put her accounting career on hold in order to devote her time to training.

    Looks like it was time well spent. It’s not every day a tax accountant from Wisconsin wins a gold medal in the Olympics.

  • Nov 11

    Steve Jobs was the co-founder, chairman, and chief executive officer of Apple, Inc. This is the fifth anniversary of his death. These inspirational words are often referred to as his last.

    I have come to the pinnacle of success in business.

    In the eyes of others, my life has been the symbol of success.

    However, apart from work, I have little joy. Finally, my wealth is simply a fact to which I am accustomed.

    At this time, lying on the hospital bed and remembering all my life, I realize that all the accolades and riches of which I was once so proud, have become insignificant with my imminent death.

    In the dark, when I look at green lights, of the equipment for artificial respiration and feel the buzz of their mechanical sounds, I can feel the breath of my approaching death looming over me.

    Only now, do I understand that once you accumulate enough money for the rest of your life, you have to pursue objectives that are not related to wealth.

    It should be something more important:

    For example, stories of love, art, dreams of my childhood.

    No, stop pursuing wealth, it can only make a person into a twisted being, just like me.

    God has made us one way, we can feel the love in the heart of each of us, and not illusions built by fame or money, like I made in my life, I cannot take them with me.

    I can only take with me the memories that were strengthened by love.

    This is the true wealth that will follow you; will accompany you, he will give strength and light to go ahead.

    Love can travel thousands of miles and so life has no limits. Move to where you want to go. Strive to reach the goals you want to achieve. Everything is in your heart and in your hands.

    What is the world’s most expensive bed? The hospital bed.

    You, if you have money, you can hire someone to drive your car, but you cannot hire someone to take your illness that is killing you.

    Material things lost can be found. But one thing you can never find when you lose: life.

    Whatever stage of life where we are right now, at the end we will have to face the day when the curtain falls.

    Please treasure your family love, love for your spouse, love for your friends…

    Treat everyone well and stay friendly with your neighbors.

  • Oct 3

    It never ceases to amaze me: I observe business people and salespeople allowing customers (and money) to leak out of their business. Many times without even realizing it.

    For example, I watch people go to Chamber, or other networking, events with the sole purpose of collecting as many business cards as they can. Somehow they seem to feel, the more cards they collect, the more contacts they can make, the more business they will generate. And they will be everywhere, at every event tangentially connected to their business. Others may view them as the king or queen of networking.

    Yet the business, the referrals, aren’t coming and they ask, “Why aren’t I getting referrals?”

    There could be several reasons such as forgetting to ask, focusing on the wrong people, having no system in place, or putting pressure on customers or referral partners unknowingly.

    Here are six things you can do to increase your referrals.

    Ask. Yes, it starts here. If you don’t ask you may get a few haphazard referrals, with the emphasis on few. If you learn how to properly ask your customers and partners for help, some will enthusiastically promote your product or service. In my experience, you’ll never get all of your customers to give you a referral, but you don’t know which ones will be ambassadors for you until you ask. Note: Referral partners don’t have to be customers. They could be friends, vendors, or others in a supportive group, who have, over time, come to know, like, and trust you.

    Make people comfortable giving you referrals. It’s important to remember that your customers don’t like to feel like they are selling their friends to you. For many, offering an inducement or a bribe in exchange for names not only makes them uncomfortable, but may cause them to question the quality of your goods or services.

    You may have customers or referral sources who would like to refer, but don’t know how. By giving them easy ways to refer their family and friends without making it feel like you are paying them, you will receive more and a better quality of referrals.

    Show appreciation. Remember to thank your referral partner or customer for the referrals. If privacy allows, let them know when a referral works out and give them an update. One of my favorite ways to do this is with a handwritten card. People like to be appreciated. When you take the time to do something so few do these days, send a handwritten card – NOT a text, NOT an email, NOT a tweet, a handwritten card – your referral source will be pleased and more willingly refer you the next time.

    Focus on the right relationship. You don’t have the time to have a great relationship with everyone you meet. It’s impossible! That’s why you have to focus your energy developing the right relationships. For example, would you spend the same energy on a customer who has only purchased one entry level item from you in the last year, as you would a CEO who purchased your product for every employee at her company?

    Put systems in place. You already know that you don’t have time to build quality relationships with everyone; however, you can put systems in place such as follow up procedures to help nurture and develop relationships so that you can have more of those quality relationships referring you.

    Grow referral partners. Being an active member of a closed networking group, like BNI, gives you the opportunity to develop relationships with potential referral partners without the distraction of direct competitors. Unlike other networking opportunities, BNI encourages your efforts to build quality relationships with referral partners. Those trusting relationships can develop into your most prolific referral partners.

    Generating referrals takes a well-designed system and consistent effort to operate reliably. But the pay-off is worth it. Referrals are one of the highest probability and most profitable sources of new customers.

  • Aug 17

    18 years ago, you cradled him in your arms– the most beautiful baby ever born. You’ve nurtured him, instructed him, helped him grow, and now it’s time for him to test his wings… at the south’s biggest party school. (You do know that’s a real ranking, right?) Away from home. Away from your supervision. You don’t really want to think about “what if?” What if something happens while he’s away at college?

    Once college students reach the age of majority (18 in most states), they are considered adults, and you, as their parents, are not entitled to see their medical records, their grades, their finances, or other documents. You’d think, since you’re the one footing the bills, paying the tuition, the room and board, and just about everything else, your parental rights would continue. But they don’t. Once a student reaches that magic age, they have a right to legal privacy and the right to govern their own affairs. So, it’s important to discuss with your children ways you can act on their behalf — or help protect them —  should an emergency arise.

    Set up ICE (in case of emergency) contacts. Go ahead. Get Junior in here right now. Well, ok, next time you’re both home at the same time. Put ICE by the names of the people you’d want him to call in case of an emergency. Or maybe it’s not him calling; maybe it’s the police, fire department, or rescue workers trying to reach out to someone. According to WebMD, if Junior is in an accident and can’t call, a first responder can call an ICE contact on his cell phone to let a loved one know what has happened. You can have multiple ICE contacts… ICE, ICE2, ICE3, and so on.

    ICE contacts don’t give someone the legal authority to act on the student’s behalf, it merely starts the communication process.

    Prepare a health care durable power of attorney or healthcare proxy. Although accidents are the leading cause of death for young adults, it doesn’t take something that severe for parents to need to be involved. When Kathy was away at Ole Miss, some 315 miles away, she developed an intestinal bug which landed her in the infirmary. We rushed to get there only to find out the doctors refused to discuss her condition with us, citing privacy concerns.

    As much as you hope you’ve prepared them to take care of themselves, and as much as they think they are ready, you are still likely to be their fallback for emergencies. A health care durable power of attorney is a legal document that allows you to serve as his/her health care agent. Students should also sign a HIPAA (Health Insurance Portability and Accountability Act) release that gives medical practitioners permission to share information with you.

    Have a durable power of attorney. For most students, the benefit of a power of attorney is to enable their parents to assist them with credit card payments or deal with a landlord, but yes, it should give you access to their financial and scholastic records at college. In most cases it goes into effect when signed, but can be revoked at any time.

     

    How do you get Junior to sign if he’s still thinking you don’t have a clue? Try gentle persuasion first. If that doesn’t work you can consider making it a condition of paying tuition, or buying the car, or whatever.

  • Jul 8

    I recently read about a show on CNBC that was described as a cross between Shark Tank and Top Chef. (Seriously… Can’t you see that producer walking into a meeting with CNBC and pitching it exactly that way.) The show was called Restaurant Startup and I just had to check it out.

    The setup is that there are two teams of restaurant owners who approach the “sharks” with their concepts. In one episode there was a married couple who ran a Lebanese-themed deli in Oklahoma City that wanted to expand into a sit down restaurant, and the pair of good ol’ boys with a southern comfort food joint in Kingsport, Tennessee who wanted to open a second location in Knoxville. The sharks sample some dishes and quiz the competitors on their operations. They pick one and give them 36 hours and $7,500 to show off their food and their skills. After that “opening night,” they decide whether to invest their own money in the concept.

    Early in the show, the good ol’ boys serve the sharks some dishes prepared from the owner’s grandma’s recipe book. And the shrimp and grits did look mighty tasty. One shark asked the chef how much the owner currently charges for it in Kingsport, and learned it was $12. Then he asked how much the average check was, and learned it was just $13. “This is a $20 dish in Knoxville,” he said, pointing down at the grits. “You need a $35 average check to make it work there.”

    The chef did not want to hear that he had to raise prices, and much wailing and gnashing of teeth ensued. He objected that diners in his town wouldn’t pay that much for the food. His grandmother who came up with the recipe wouldn’t want him charging that much for the food. And he wanted everybody to be able to afford to eat at his restaurant and enjoy his grandmother’s great dishes.

    (Does any of this sound familiar? I can just hear some of you saying “my customers won’t pay any more!”)

    The sharks agreed that it would be a big jump to raise prices to those levels, but they insisted that the point of running a restaurant isn’t just to share grandma’s southern comfort. It is to make money—and making money, in this case, would require higher prices.

    The sharks chose the good ol’ boys for the test kitchen, and set them up with a local consultant to help walk them through the process. Once again, pricing came up. The owner said flat out “I don’t want to serve a $19 piece of fish.” The consultant explained the restaurant isn’t just serving a piece of fish, it’s serving an experience— then proceeded to show the owner how he could garnish and plate the fish to look like it’s worth the price he had to ask diners to pay.

    At that point you could almost see the light bulb go on over his head. He readily agreed to raise his prices, and the pop-up restaurant opened for business. Diners who filed in that night loved the food. Unfortunately for our good ol’ boys, service and management weren’t as good as they should have been and the sharks declined to fund the concept. It was a hard lesson for them to take home to Tennessee.

    And here’s our lesson for the day. If you’re like most small business owners I know, you at least profess to want to run your business to make money. You may think your customers won’t pay more— but you’re probably wrong. You may think that your mentor, or the person you bought your business from (who didn’t charge enough himself) would disapprove— but it’s your business, not theirs. And you may really want everyone in town to be able to enjoy your great product or service—but can you really make the kind of money you deserve if you price yourself into bankruptcy?