Show notes
In this episode, host Jon interviews Mahmood Reza, a business finance expert, tax advisor, and author of 'I Hate Numbers.' This discussion focuses on the importance for architects, especially those running solo or small practices, to understand their financial numbers for business growth, tax savings, and overall financial health. Mahmood emphasises the significance of planning, recognising money's role in achieving business goals, and overcoming financial stress. They explore the 'Plan It, Do It, Profit' concept which outlines the journey from planning to profitability. Mahmood also shares insights on money mindset, the impact of personal background on financial decisions, and the importance of record keeping for informed business decisions. Additionally, advice on profit margins, managing taxes, and utilising bookkeeping software for financial management is provided. The episode concludes with personal anecdotes and the relevance of having a healthy relationship with money to foster a successful architecture practice.Today's Guest...Mahmood Reza is a business finance fixer, tax advisor, and author of I Hate Numbers. He has helped thousands of sole traders, business owners, artists, creatives, and social enterprises have businesses, not hobbies, make money, save tax, improve their money mindsets, and reduce their financial stress and anxiety. Mahmood believes that once you understand what your numbers are, where they come from, and what they mean, you can use them to make better decisions and ultimately make (or keep) more money.Episode Highlights...00:00 Unlocking Financial Freedom in Architecture00:45 Introducing the Money Matters Expert01:17 The Power of Understanding Your Numbers03:51 A Deep Dive into Money Mindset08:11 The Blueprint to Profit: Plan It, Do It, Profit11:35 Setting Realistic Profit Margins for Small Businesses19:06 The Importance of Record Keeping and Tax Planning26:06 Final Thoughts and Advice from Mahmood28:06 Mahmood's Favourite Place29:24 Wrapping Up and Looking AheadKey Takeaways...👉 Understanding Your Numbers is Crucial: Mahmood emphasises the importance of knowing your business numbers – including expenses, revenues, and profits – to make informed decisions, improve financial health, and ensure sustainable growth.👉 Changing Your Money Mindset: Your background and attitude towards money can significantly impact your business finances. Changing a negative or fearful mindset about money to a more positive and proactive one can lead to better financial management and success.👉 The Impact of Planning and Action: The concept of "Plan It, Do It, Profit" introduced by Mahmood outlines the importance of planning, taking action according to the plan, and focusing on profitable outcomes. This process encourages business owners to have clear goals and a path to achieving them.👉 Financial Targets: Achieving profitability is a gradual process that comes from understanding and managing business finances effectively.👉 The Importance of Record Keeping: Accurate and consistent record-keeping is vital for understanding the financial state of a business, making informed decisions, and staying compliant with tax obligations.👉 Investing in Financial Management Tools: Investing in cloud-based bookkeeping software can simplify financial management, improve efficiency, and reduce stress related to finances.👉 Dealing with Taxes: Preparing for tax obligations by setting aside a portion of income and understanding the impact of different taxes on a business is crucial for financial health and compliance.👉 Personal Fulfillment and Financial Goals: Whilst financial success is important, aligning business goals with personal fulfillment, freedom, and flexibility is equally vital.Links Mentioned In The