Summary of the Business Support Munich Event 11.12.2022

Guest 1 - Eusebiu Burcas - Profit

First

Financial coach, entrepreneur, trainer, and investor

1. Income is vanity
2. Profit is health
3. Cash is reality

An unhealthy business is not profitable

With a 5% improvement in your profit, it will increase by:

1. Price     50%
2. Acquisition cost    30%
3. Quantity sold    20%
4. Fixed costs     15%

The price determines how much profit you make

Where could the profit be if it's not with you?

1. You gave it as an advance to suppliers
2. It may be tied up in inventory (beware of stock that doesn't move for a long time - I worked with a company that had 10 million euros in stock, of which 3 million were stocks and finished products that hadn't moved for 2-3 years, so they were paying interest to the bank on 3 million euros for nothing)
3. With customers - unpaid invoices

Personal observation - hire specialized financial personnel, controlling, who can teach you how to reduce your losses

Profit is not an event

Profit must be a habit

Parkinson's Law

Work expands to fill the time allocated to it

Translation into financial terms: ENTREPRENEURS tend to spend all the money they have available.

Sales - Profit = Expenses

0-5% gross profit    =>  the business is in a coma (with few exceptions, industries, especially online, where this is normal)

5-10% gross profit   => the business is in recovery

10-15% gross profit => healthy profit

THE 4 PRINCIPLES PROFIT FIRST

1. Divide the money into small plates (use multiple bank subaccounts - with N26 bank, you have 10 accounts available for free, and you choose which one to assign an IBAN to and which not - to open the bank account at N26 click here. Personally, I have the following business accounts at N26: 
   1. Operational expenses from which I pay: all expenses with vehicles I don't use, protocol, Facebook ads, YouTube ads, work equipment, telecommunications, office rent, and software. 

Money enters the account from recruiting services, coaching, web design services, advertising services, rent, part of the structure money from UberEats, and soon from the sale of double-glazed windows in collaboration with Termoplast. Each receipt (except UberEats, which sends automatically) sends 19% directly to the Tax account

1. UberEats - where money from Uber Eats comes in and I split the money - normally the account remains at 0 every Monday
2. Taxes - where I transfer the VAT every Monday and pay the VAT to the partners who bring me the paper from the tax office where it says "Sie sind gilt für Umsatzsteuer," and on the 10th of the following month the tax office takes the money that is written on the VAT declaration prepared by the accounting firm I work with. If I somehow enter that money for an integral investment, I calculate to put it back by the 10th of the following month. If I make an investment with credit, then I pay the advance from there, which is usually equal to the VAT, and then I'm entitled not to put the money back because that money will be reflected as VAT on the VAT declaration
3. Profit - here money is allocated from the Operational Expenses and UberEats accounts - my share as a recruiter and part of the Structure
4. Owner's financial compensation: salary, expense with my car, expense with work equipment, travel expenses, i.e., hotels, camping sites, train tickets, mobile phone subscription, laptop, business courses and seminars (this year I invested in courses like this (2000 euros - leadership with John Maxwell, about 1500 euros difference for a Lifetime subscription to Upriserz, 2000 euros - training with Ovidiu Toader, 160 euros for attending the seminar whose summary you are reading, real estate investment course with Robert Kiyosaki 500 dollars, YouTube ads course - 250 euros, 325 euros in business books, etc. ... and so far with the scholarship from the University, I have invested about 100,000 euros in my education, of which more than half of the money was paid by the scholarship, employers, and sponsors since I was the president of an NGO - I had 2 sponsors who, besides the money for the association's purpose, paid for courses and seminar participation because they understood the importance of education. For next year I have a budget for education of 10,000 euros, of which the most expensive per hour will be one hour with Lorand - 1500 euros. I recommend you find a mentor, someone who has already walked the path you want to take - and if what they want in return is money, pay them)
5. Salary fund - where my employees' salaries are transferred. For drivers from the UberEats account, for people who do ads and web design from operational expenses, for recruiters from recruiting revenue. 
6. Donations - I recently opened a donation account for the business. Why do I make donations? Out of selfishness. When I donate money, I send a signal to my brain that I am entitled to receive money without asking if I deserve it. It's a small thing, but it makes a huge difference. Where can you make donations? Where you feel you resonate with the cause. You can make donations to the kindergarten your children attend, to the church, to a sports club, to a cultural association, to anything that can give you a paper stating that the money is tax-deductible, meaning you don't pay tax on it and it's simply considered an expense like a car or phone subscription. You can make donations from the business account or your private account.
7. Private non-deductible expenses

Money comes in from the business owner's financial compensation account and my wife's account - from which we pay rent for the 90 sqm - 1780 euros per year, gas, electricity, food, entertainment, vacations, 1% of the new value of the car, we pay for everything we use privately and transfer to the deductible expenses account... on average 2000 euros per month

1. Deductible expenses: Natalia's kindergarten 35 euros, Rebecca's kindergarten 165 euros, private car insurance 680 euros per year, other private insurance, medical expenses (dentist, pharmacy purchases), I pay myself 30 cents per km for trips to doctors, which are noted (I transfer money from the deductible expenses account back to the non-deductible expenses account, writing what the money is for - usually once a year, although you can do it after each event) and others. The turnover here gives me clarity.

Money comes to me from the private non-deductible expenses account, but you can also transfer directly from the business owner's financial compensation account.

1. Serve in order
2. Temptations - hide the profit from yourself. Personally, my profit account doesn't have an IBAN, and to move money to other accounts, I have to unlock it; it's not a big deal, but it raises an alarm in my brain, which makes me refrain from doing it... that's why I love N26 bank, where you can open an account by clicking here.
3. Rhythm - two allocations per month, Eusebiu Burcas recommends moving money on the 10th and 24th of each month. I personally move it every Monday.

Why is profit important?

1. Financial reward for shareholders (dividends)
2. For the bank when you want to take out investment or even private loans. Personally, I recommend that if you want to buy something private, think about taking out an investment loan that pays for itself, and after you've put the investment to work, after 3 months you can go back to the bank to take out a private loan, which will be paid from the difference between the rent on the investment and the installment on that loan.

If I didn't make a profit last year, what should I do?

Read the book Profit First by Mike Michalowicz, attend a course with Eusebiu Burcas, and implement what you learn to make a profit from now on.

Where do we get the money to grow the business?

50% bring money from home

50% turn to banks, investors, and other fools.

Can't I just use an Excel file instead of multiple bank accounts?

Personally, I tried for years with Excel, but it only worked partially. Since using different accounts, it just works. I have clarity as soon as I enter internet banking, and from the operational account, I go to the view of the spaces.

The account system provided by Eusebiu Burcas:

1. Profit
2. Financial compensation
3. Donations
4. Taxes
5. Operational expenses

https://burcash.ro/ 

0040740.075.710

contact@burcash.ro

www.burcash.ro

https://wealthacademy.ro/ - online school, access only after purchasing a course.

www.profitfirstromania.ro/resurse-gratuite/ - free quality resources available

https://actsipoliton.ro/mike-michalowicz-profit-first-carte - from here you can buy the audiobook and listen to it in the car for 38.08 lei if you have a VAT code, otherwise the price is 47.60

Successful people invest 80% of their free time in education and 20% in entertainment because becoming successful means having = being x doing.

Lack of personal time, lack of self-analysis, lack of planning, living life on autopilot at a hypnotic pace. All these causes lead to burnout and a low-quality life. Too many people don't put themselves first; they don't start the day with themselves, but with social media, with other people's priorities and urgencies. You can regain the flavor of life, you can increase your productivity and balance when you reset your daily schedule and start your day with yourself, and through a series of productive habits, you fill yourself with energy, clarity, and confidence. In this way, you gain a definite competitive advantage both professionally and personally. Dan Luca is a Productivity Expert and Wake Up Artist. He is the author of 3 Amazon bestsellers in the Time Management category and founded the 5AM Community in Romania with over 10,000 members. In the last 10 years, he has created transformational programs for entrepreneurs and managers who wanted to avoid burnout and exponentially increase their productivity level. - source: description from the TEDx video https://www.youtube.com/watch?v=VfCIaNpW_pI&t=173s 

Divide your day into 5 blocks of 3 hours each

5-8 - Enlightened self-interest, meaning time for yourself

When you give yourself the first hours of the morning, when you give yourself time, then your day will be completely different.

9-12 Genius time

12-15 recovery time (food, gym, rest, hobbies)

15-18 Com time - communication with clients, employees

19-22 Connection time - connecting with family

If you don't have your own plan, others will include you in their plan.

How do you combine personal life with professional life?

1. What will I do for my health?
2. What will I do for my family?

Strategic meeting with myself

Overstimulation condemns us to fall behind our reality.

Take a day off, go to a hotel, and ask for a room during the day, turn off your phone and write plans

Live your life according to your plans vs. don't live your life because you're on autopilot

An activity that you don't allocate time to tends to take up all your time

Testimonial Iulian Tache - CEO H2O

You don't have to work more to be successful. 

Learn how to organize your life so that you succeed in business

How to define your roles in life and not mix them. Allocate time for each of them and give the appropriate importance to each role. How to define and become aware of your values. How to align your life according to your values so that you are truly happy. And many other valuable pieces of information and tools with which I reorganized my schedule, priorities, and life. And the results in business did not take long to appear. In conclusion, you don't have to work to the point of exhaustion to be successful. By properly organizing your life, you have the time, energy, and resources to manage a successful business. 

Testimonial Ruben Marian - CEO Utilben

The biggest change was that I managed to allocate time for the things that are truly important to me. I allocated time for family, relationships, learning, education, and health. 

Testimonial Iulian Tache: when you pay the person for goals and results, somehow the person understands that it is a service contract, and then you no longer care where they work, how long they work. 

Extreme Pareto principle 80%/20%

25      >> 5    >> 1

    -80%   -80%

What is that one thing that, if you do it, makes all the other things easier?

Limits

Duration, Quality, Intensity

How do you detox from stimuli?

Go into nature, where negative ions are found, and recharge

There is a concept called forest bathing, which helps you connect to the fundamentals.

How should we do this detox from stimuli?

Every day, 20 minutes of walking in the park

Every month, go out into semi-wild nature for 5 hours

Every year, spend 3 days in the wild

What benefits do you get?

Energy 

Time 

Attention

www.5am.ro/munchen - you can click the link for a special offer

dan@5am.ro

0040 730 88 33 88

www.5am.ro 

https://www.youtube.com/watch?v=OXxYUsVSL58&t=61s

Consider that you might not yet be at the level to spend so much money on a course, but you know, besides the course proposed by Dan Luca, he also has books 

https://www.5am.ro/morning-master/

84 lei for 2 books

Then you get an offer to buy a recorded course, Blue Sky Course for 97 RON, where you also receive a free anti-procrastination course

Then you get an offer to buy the PHOENIX course - from Exhaustion to Renewed Energy for 77 RON

258 lei for incredible resources. Do you think you can afford to invest in yourself for the benefit of having energy and success?

I have already uploaded the information on https://oprisa.de/vinde-termopane

The idea is that we can sell anywhere; they handle the delivery, and they offer a lot of support.

To get into this business, the initial investment to become an importer/sales agent in Germany is almost 0.

You need to put on your Gewerbeschein that you sell double-glazed windows

You will undergo training

You will receive samples to show

You will receive contacts of potential partners.

For export to Germany, they have two dedicated people who will help you, plus you will also have my support.

The one who founded Flamingo and Flanco

Funding methods for entrepreneurial businesses

I am subjective, but I didn't resonate with him. From my point of view, he had a good presentation for some experts in the field and not for those at the beginner level. I even left the room for a good part of the presentation.

1. Pacer: the one who keeps the clock and announces when time is up 

In a football match for those who have:

• one goal down -> time passes too quickly
• one goal up    -> time passes too slowly 

In analogy, have you ever attended a meeting where time:

• passed too quickly? - you were interested in the subject
• passed too slowly? - you weren't interested in the subject

1. Decision driver
   • The purpose of the meeting is to make decisions
   • One person must be noted as responsible for implementing a decision

Do you know the plural of responsible? Irresponsible… in grammar, it may be an antonym, but in real life, it's just the plural.

1. Facilitator: this person speaks last to ensure they have time left. They give the floor to each participant in the meeting at the pacer's signal.

With the 3 roles in a meeting understood, we played a game where we grouped into 5-6 people, and each had to say what decisions they had made, and the other group members had to raise their hand if they would also implement those decisions. Personally, I made the following decisions to be implemented:

1. To implement 5x3
2. To sleep in complete darkness for a more restful sleep, between 10 PM and 5 AM
3. To implement more separate accounts, which I did immediately.
4. To pay myself first from the business - I implemented it
5. To test a new product - I took the first steps to enter into a partnership with Termoplast to sell double-glazed windows
6. Walk in nature - daily I went for a 20-minute walk in nature
7. To read an hour before bed. I still have work to do here because with 2 kids, I'm exhausted, and some evenings it's easier to turn on Netflix because I feel like I can't concentrate anymore. After the vacation, I will force myself to push the kids' bedtime back to 9 PM.
8. To ask people in business what I can do for them, what they need to accomplish their task. Implementation is easy; I started using www.calendly.com/mihai-oprisa to schedule meetings with the people I work with. I still need to set up a system to do this with all the people coming from me.
9. To ask each family member and friends what I can do for them to be happier. I've started the process, but I need to reach each member. I think it's good for me to internalize this activity and do it repeatedly because things change.
10. To delegate the exercise to my team. I've scheduled it for January.
11. To take a day off, go to a hotel, ask for a room during the day, turn off the phone, and write plans. I've already done this at night, but I will repeat the experience by the book.

The CERE acronym

Clarity

Effectiveness

Results

Energy

The power of delegation - the decisions your people make are theirs, and they are much more likely to implement them than if they were the boss's decisions. The sense of ownership extends.

The services offered by Ovidiu Toader are aimed at the entrepreneur or manager who runs one or more businesses with more than 5 employees and an annual turnover of over 100,000 euros. 

https://toader.biz/ 

After that intense day, I analyzed the decisions I had made and made another one. I scheduled a 15-minute conversation with Ovidiu Toader and joined a group for business management and execution training, and I already had the first session with Ovidiu Toader and 11 other participants. There, I made about 10 more decisions to implement in my business by the next meeting at the beginning of February. 

It's brilliant. I can say that now most of the time dedicated to the business, I work on the business and less in the business. I believe that is where every entrepreneur should get to. Lorand said that rich people didn't make money from the business but from selling the business, and he gave the example of Bill Gates, but the same applies, I believe, to all in the top 500. 

Lesson 1. Often, planning doesn't work out

An airplane flying from Paris to London doesn't go in a straight line but corrects its position every time it's pushed off course.

Desire bigger problems, but don't repeat the same mistakes, progress.

The last few years have shown us more than ever that it won't go by the book.

What is your contingency plan for 2023?

Do you have a contingency plan for your business?

Do you know what could bankrupt you?

Are you prepared to…?

For my partners at UberEats, I have the following question:

What will you do next time when orders drop by 50% as happened during Christmas week? 

What other contracts do you have? 

Personally, in May 2022, I found myself without work because all the companies I was recruiting for didn't need staff. They were all laying off. Having a financial backup and passive income that secured my livelihood, I spent about 2 months translating a book from German to Romanian until I was called by UberEats. The first two people in the fleet certainly remember that I wasn't convinced to invest again after taking a hit with a company I had prepared many people for and, of course, spent time and financial resources.

1. Look for other contracts on www.oprisa.de, look everywhere for other contracts. Go out to dinner with colleagues who already have other contracts, talk to Germans, inquire everywhere when UberEats is doing well.
2. Build a financial backup. What is a financial backup? How much should it be? Yes, I know, we Romanians lack financial education because our parents and grandparents lived in a different system where it wasn't needed. BUT now you need it too, and Romanians in Romania need it because we live in capitalism. "Knowledge is power" doesn't refer to school but to the ownership document, the paper that certifies that you are a capital owner. To benefit from the correct financial education tools, which will eliminate the stress of lacking money and initially create a financial backup and later allow you to master capital that will bring you money, meaning money will produce more money for you, you can do this for just 9 euros per month, now. Click here! After payment, go straight to the course "Talking with Money."

Lesson 2. Back to the fundamentals!

The chassis of the business - work on the indicators... wait, you don't know what it's about. After you finish the course "Talking with Money," please enter Business Mastery, and there you will see methods by which Romanian entrepreneurs tripled their profit in just 3 months.

I know the chassis of the business well, and I have guided myself by it; it brought me to where I am, and now I want this chassis to be understood by all my recruiters and beyond. At some point, you may propose that I invest in your business, and then I will surely know if you have a good idea and are the right person to implement it, and I will obviously want to invest in your business. Maybe you go to someone else. Anyway, ideally, if you have a business idea and go to seek capital from anywhere, it's good to know the chassis of the business well because it is the basis from which profit comes.

Lesson 3. Update your software!

Your phone probably has the latest software version. But when did you last update your mind?

1. Do you receive information:
   1. before it's available to the general public?
   2. when everyone receives the information?
   3. as late as possible?
   4. when you're forced to?
2. How do I know when it's time to update?
   1. You're bored
   2. Results are declining
   3. You've reached a plateau
   4. You feel your talent is diminishing
3. If you've already achieved your dreams, you're at a plateau. You need new dreams, and to achieve the new dreams, you need a software update!

Lorand suggests we send the kids to their grandparents for 2 days and, together with your life partner, put on a dream chart:

1. The house you want to live in
2. The car you want to have
3. The places you want to visit
4. The people you want to meet

Since I was 18, when I put a Bugatti Veyron on my dream chart and still haven't managed to get it, I've had a negative feeling about the dream chart and struggle to make one with my wife. We have it in our heads, and it contains:

1. I want to prepare my business for sale (not entirely, but to sell shares, possibly up to 49%, probably 20%)
2. House - we agreed on it, we pass by it, but haven't taken a picture to put on the dream board
3. Car - we agreed on it, and I have the pictures on my phone email
4. Go skiing in Austria
5. Go to Egypt in March
6. People: we want to attend a John Maxwell leadership certification event in Romania, my wife has the ticket paid, and I am next
7. We want to have a wedding because after the civil ceremony, we only had a meal with fewer than 10 people.
8. I want to pay Lorand Soares for a one-hour session.

And so on and so forth.

All these should be pictures placed on a board where we see them daily.

Lorand tells us to dream outrageously, just like he did, from gardener to a fortune of over 15 million euros.

Lesson 4: Move to the next level

1%

19%

80%

80% of people are those whose lives are made by others.

19% are good

1% are the best.

When you reach the top 1% in a field, you must be willing to be last again at the next level.

Here he gave the example that he is in the top 1% in his field in Romania, but the next level for him is to do in English what he did in Romanian, and to start that, he had to be willing to be last in the top 19% in English. And his current market is the Chinese market because their English is not as demanding as that of Americans, and the ads are much cheaper.

Are you willing to move to the next level?

I personally still have work to do at this level, but by the end of the year, I want to move to the next level.

Lesson 5. Without vision, there is no progress!

Who was the greatest leader of all time? Gandhi? No…

The greatest leader of all time was Jesus, and Lorand shared with us that he is currently studying the book "Jesus, CEO: Using Ancient Wisdom for Visionary Leadership" by Laurie Beth Jones.

It is important to have clarity in our vision.

When we care about our life partner living according to our personal vision, we do ourselves good. 

Why don't people understand my vision?

Because they are not at the same level as me. The vision must be communicated in accordance with the values of the interlocutor.

Find people who are ahead of you and "steal the craft from them."

Each lesson and, in addition to that, wonderful people can be found on the Uprizers platform. You are one click away from changing your life and your family's life for the better. From a 19-euro monthly subscription, in 2 years, I came to appreciate the information so much that I paid the difference from premium annual to 1997 euros - VAT, to have lifetime access. You will pay 9 euros per month; you can stop after a month and have a money-back guarantee. Click here!