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Our Focus On the Top Line

I just want to drive the point home. That is the stuff we really touched on. But I think it's, just important that we really stay anchored in this, um, remember the term social proof social proof was where we observe other people doing behavior. And then our minds say, that's the appropriate thing to do. Copy. We talked about black friday, where we see someone going shopping on friday, thanksgiving and we all copy and do the same because social proof see others do behavior. We copy staying ovation so forth. Well, when it comes to the top line, we employ social proof. And the problem is, and I kind of gave a dig at the magazines and so forth can sometimes during break or when we're already talking. If you look at any magazine, it says lookit lookit what? Mark zuckerberg day look att the founder of avon who's that mary oh, mary kay. Well, mary, that america was married. Okay, look, chief, you look at these people, you're wildly successful overnight successes. Look how much money they're ...

generating in their businesses and we think, well, that's success. You you gotta drive hard and you have this top line and the social proof supports that, and I'm here to argue now, it's the bottom line next time you go somewhere and your talk with people and someone says how big's your business how many sales you have however the how big is it? Question comes out employees do you have I think you put a question say how healthy is your business because the god I don't care about the person has ten employees and making two million dollars and top line I care about the person that's taking home money for their business their business can sustain I'd rather your business be an artist of one person that's making a really strong healthy lifestyle for themselves supporting themselves than this big business that's this huge weight over them that's not making any money whatsoever so stop asking yourself and others how big's your business star asking how healthy is your business and when little thing is I thought this was funny was a lesson I learned from from poker uh I play texas hold'em any hold them people in the room all right, so what? We will play you're holding okay, so we got three, three players anyone else want to play it? Well, no experience you're in totally good I love it makes time we'll get a poker game going okay, ready doing john's the house he's the smart one, right? So I notice in in poker there's a rule basically if you have a weak hand it is in your best interest to show that you have a big strong hand so if your hand weak and chances are that you'll lose your money on the table, you start faking your bluff and you're like, oh, and you start raising putting more chips and and the reason behind that is if you can bluffs well enough, the rest of us table will fold we're gonna lose and now you get all the chips so when your hand is weak it's in your best interest to behave like your have a strong hand now conversely, when your hands strong you have four aces in your handwriting and I can't lose baby for mankind and I'm telling you that's because you've never played poker before I don't want to tell you actually that strong hand is because I do want to take your money but but if you have four of a kind you've a strong hand it's in your best interest to say ah this is not working is gonna fare uh and to bluff that you're weak because then everyone else will stay in and put more money and you take your money so in poker the rule is whatever the reality is do the opposite cass what's, humanity's wiring whatever the reality is we do the opposite who was that person got the expensive car nice why sharing like you know well, everyone usually nearly broke he's playing poker hayes playing poker right with with life and he's just acting big conversely, I know some very financially sound successful people unfortunately they're they're dressed you wouldn't tell them from a homeless person like they're wearing like torture but they don't care a very successful person that's health driven within their business has the confidence that they don't need to show it off you don't need to show it off and it's the people that need to show it off that are actually pretty weak so just think about that in your business and the people you see the ones that don't need to show off are usually the most successful I would encourage you surround yourself with those folks all right? So we'll go through instant assessment um it's about getting really really fast or business call some people up we're going to some hot seats we're going to look at what's called top line versus hotline revenue versus real revenue thiss goes back to question j k o that came in earlier about costs a good sold I think you don't know you're saying no really put up you need okay um and I want explain the difference between top line revenue in real revenue if you have sales of a million dollars will say, for example, or a hundred thousand or whatever your number is this is what's called your top line sales in traditional counting made jeff could even speak this baron I can use to track with cold cogsa costs of goods sold these are the materials and the labor that's required specifically to deliver this product so if saying travis's business you build this art you may need some materials know what he says I get it but but you may need supplies of some sort carrying packs for rocks or whatever you need certain supplies to get things done and you need your time to do the art the work you're doing that's cost a good soul the supplies stuff that delivers and creates the art and your time so just to play these numbers will say four hundred thousand and you can scale this to anything if your business is a thousand revenue will say this is four hundred dollars but just for round number six I'm using a million and this would leave what's called a gross profit jeff already knows the joke about gross profit very funny I'm not laughing this time you know laughing it's not funny anymore gross profit this is uh the money left over after closet get sold and after this you subtract out all these other expenses and down here it's where your actual profit comes this top lines called top line revenue but what I want to do is tell you about maura about this number the gross profit but I've changed the name to real revenue the reason changed to real revenue is I want to put all businesses on the same footing that I know some companies that do fifty million dollars in revenue they sound like big businesses but their home contractors they're making homes and they have to pay their subcontractors that people have send the build the homes all this money they need all these supplies and make camped about forty nine million dollars a stuff that this spend to do fifty million so they're real revenue is really there a million dollar business their million dollar business managing forty nine million dollars spinning around up here okay, this is a technique to get all businesses on the same state on the same footing so ifyou're but business has subcontractors meaning you hire people to do work uh for your business to create proctor offering and these people have the ability to work for someone else that's what subcontractor it's so these aren't employees these air subcontractors or you require materials um parts or goods you know, items to create your proctor service. We're nsa tracked these components out of your revenue to get to your real revenue so cute because I know you have you used materials and parts to other stuff let's go over your business real quick because that cool can we use some of the real numbers you have co owner shirt ok, tell me what is your your revenue for last year roughly are any given year thirteen thousand thirteen thousand dollars okay, perfect. So thirteen thousand dollars how much do you spend on materials to make the stuff you so roughly probably ten ten thousand wow, how much it's a lot. Okay, so if we subtract this out your business you don't have any subcontractors that youre so okay you your business is really a three thousand dollars it's a small little business is a three thousand dollar revenue business that manages ten thousand dollars of transactions. Um let me become someone else I am or see it in the back. Um I can't know what your business was. I didn't write down what was the business you mostly consulting so I don't know if it well, this is perfect. It's actually perfect. Okay, well, if you do my sharing, what kind of revenue did you experience in your business last year? I have I mean, I've only been doing this for about six months. Okay, so what have you done in six months? If you feel like sharing, don't I do about five thousand a month that's that set and then I fluctuate based on whatever else is coming, okay, so five thousand month is pretty much guarantee it fluctuates, so we did five thousand month over twelve months, I'd be sixty thousand okay, so your business is sixty thousand and doing subcontractors and people you do all the work you do you have any materials or anything so you should attract zero so you're real revenue is sixty thousand okay what's important about this is when we do these percentage assignments pearson you gotta do it off of three thousand off thirteen thousand that's your actual revenue because you're a manufacturer effectively because you're you don't experience in this when you do these percentages you dude off this sixty thousand number that's your real revenue didn't understand that, but you if you have where bounces a lot, how do you capture that? So yeah so yours really knows a lot you would just look at your last twelve months and you would know what you're revenue wass the goal here is not to determine what your actual revenue was. The question really we want to get to is does your real revenue the money that you're actually company actually generate fluctuate from the top line revenue. So if we look at your last, uh twelve six months you've been in business while you've been doing five thousand a month which we thirty thousand you made fluctuated maybe averages out to a ten thous maybe so then the number would be in this case sixty thousand we don't we're not subtract anything we know your real revenue sixty thousand you're gonna run your percentages off of the top line that comes in and pearson's business we know that her her actual business is is uh is three thousand so we would take this percentage of the top line um so your business makes thirteen thousand this's roughly uh with numbers at ten percent no I don't know what the percentages that's why have a calculator here? I'll run it later but there's a percentage you would first have tracked out these costs up top before you run the percentage is off quick it makes sense just try and put all businesses on the same footing and this is why if you're a home builder and you do fifty million but the real revenue after subcontractors and parts of a million or you're a million dollar law firm those are basically exact same businesses when it comes to handling the profits it's not the top line we focus that on this the real revenue okay, yeah kind of like the sales people's profit kind of thing when we're establishing what our profit percentages yeah, this is sales minus uh what we're doing here is I'm taking total sales minus subcontractors and materials stuff that you're managing but that really isn't integral to its is not part of your innate businesses not innately part of your business and getting to a true revenue line I'm trying to make every business a service business basically kiersten spends three thousand she generates three thousand dollars to manage this business this is her service component effectively yeah, but wouldn't I want to get to where my cost a good sold is part of my operating expenses right? Uh cost of goods sold now because is not part of offering expenses we're going to have more specific counts we'll start assigning money to your materials your cost a good soul e c yeah way still want to cut down costs a console as much as possible because the more we cut if you can cut down costs sold by thousand dollars here from ten thousand you get this down to only cost you nine thousand dollars this goes up by twenty five percent this goes up to fort four thousand dollars and now the percentages there are four thousand dollars so if you have a business that that buys substantial amounts of materials or parts cost a good sold you're actually take that money and put it aside first I'm just telling someone er mei was kate I'm an owner co owner and a manufacturer in st louis uh twenty five percent of our business is a buying materials to build these leather products that we build it's called hedgehog weather works and um so we allocate every time every time when he comes in twenty five percent goes into acosta good sold account so we can re buyer supplies then the profit first method we taught owners pay profit and so forth comes off the remaining amount okay, that makes sense it's heavy I don't know I pick this is the fourth session but this is the heady stuff we need to get himto the best is going to be to go through this in a hostel where that thirteen is the top line top line revenue yeah, the one right below it is ah, I sold the fact that technically bottom line is really real revenue real grab me okay? The real revenue? Yep. So and the reason I do this is to put every business I don't care what business you're in if you're manufacturing or something that are in your service based business to put every business on the same footing because I want to get him into this chart I call us chart the instant assessment and here's how it works um you you determine the real revenue ranger making so kirsten isn't this revenue range from zero to two fifty right? Um marcy, we figured out you're in the same point now, uh, john, your business a little bigger if you don't mind sharing what kind of revenue is your business generates probably d category probably did one two five million right and do you subcontractors for business now and you have these parts of materials well it's it's ah it's a staffing company claiborne staffing company so you have cost of goods sold is your labour for the employees he send down okay okay there's some contractors aren't they no no okay okay boys there w two employees but they're temporary but their employees for their temper okay, so then okay, so then you're between one of five million so these percentages I figured out was by doing an assessment of the healthiest companies and all these different ranges and I found this to be the best category breaks if your business is doing under two hundred fifty thousand revenue riel revenue um worry or pay attention to these four things your profit percentage health is of companies put five percent of their revenue the real revenue into profit fifty percent and to pay for the owner or owners fifteen percent into tax and thirty percent operating expenses company that does say a million dollars would fall into column d their profit they would be setting aside ten thousand dollars is that right? Is it no one hundred thousand dollars right is ten percent yeah, one hundred thousand dollars into profit the owners pay would be also about ten percent so the owner is taking one hundred thousand dollars in that case uh saying inside one hundred fifty thousand dollars for taxes and in the business has sixty five, six hundred fifty thousand dollars left to run the business so what this means is a business that's doing a million dollars in real revenue potentially what john's business is doing assume yours is bigger than that actually, but, uh I would target that john himself for a business of a million dollars is taking one hundred thousand rc owner and over the year distributing one hundred thousand dollars in profit so I take home about two hundred thousand dollars and tell people that's like a million dollar business I'm taking home two hundred thousand and my taxes already taken care of by the company that's a lot of money the healthiest of businesses do exactly that do exactly that so what I wanna do now is call someone up to someone wanna volunteer I want to run your business through it right now if you don't want a volunteer pick you so come on, who wants my man? How was I knew? Rick come on up we're gonna put you in the hot seat let's talk about your your business um so you do just so ever knows consulting your public speaker um any other kind of revenue um speaking potentially books this year? Oh yeah, that book's coming out okay, what would what was your revenue if you don't mind sharing last year sixty six okay that's your total revenue now what we do is once you know your your revenue number from last year this year, I actually know you're a big uptick now so may be different, but he falls in the category. So what we do now do you have any subcontractors that do this work? Are you doing okay? And you've any materials that you use substantially repeatedly because a lot of mine is more intellectual capital that once it's created yeah, you're done. So that means his revenue is his real revenue this's what he's really taking then what we do is we spray okay, your profit, we need to allocate five percent uh, your owners pay fifty percent uh your tax fifteen percent and then you're operating expenses you're up excited to say we're goingto allocate thirty percent now here's the one caveat I want you should share with you when it comes to this range. If you are a freelancer, which means your intentions, not the scale of the business to multiple employees, thes numbers change radically and I can share it separately with you. I have another chart for that, but basically you're operating expenses becomes almost all you and so owners pagan go upwards of like, uh I think it's seventy percent and this goes down ten percent, so this is just office supplies and so forth, so in your case, because I'm in the saxon business, you are do public speaking your breakout was going to be something more like this. That five percent of profits seventy percent should be going to you. Fifteen percent for tax reserve and ten percent operate expenses. Which means is three thousand dollars. The end of the year should be in your profit account. Seventy percent of of sixty. I got do the bathroom quick. I don't know what that is. Well, so now forty that's, right is for two thousand. Good. John passed the test. Uh, this is what, uh, nine thousand? Yeah. Okay. This is six thousand. Do you have a sense last year? What? Your business? Uh, what kind expenses you have house? You took home last year. You don't have the sheriff. You'll feel kind. No. It's it's, actually it's. Almost identical to what you just wrote down. Okay, the only thing that I wasn't doing was the prophet peace. Okay, so you took home roughly that amount. Your taxes were somewhere around there. And actually this is probably a little bit lower too, because it's just so minimal, but okay, so his numbers this's unique and with smaller businesses. Actually, this may happen more often, but your number's already are on the target percentages. So what we do is once we know where we stand is next quarter we go up by one percent and we do the one percent adjustment every quarter until we can improve the number tarmacs improvement so what I'm saying is if you do this this this quarter jennifer march april may june why always september starting september thirty first october first this now goes to six percent this goes to seventy one percent this goes to uh if necessary sixteen percent and this goes down to seven percent and then next quarter gonna bump it up again and the goal is to see how much profit can we get for your business. So what did you see like I know that fourth quarter could potentially like my revenue could go up easily thirty to forty percent substantially substantially in the last quarter of this year so what would you suggest and the present is the same let him stay the same that's the beautiful thing your percentage will stay the same now you may get actually suspect you will very quickly based upon how you mark your targeting you're gonna get to this category within a year so uh maybe sooner maybe not, but I suspect you will that's when we started just in these percentages because even in a business where you're a freelancer a speaker and so forth you're going to need administrative assistant because you're in so much demand you're going to need an agent for your book deals and stuff like that and you're going to have a shift this could be a painful shift for freelancers going into a traditional model because it's at this point you were taking seventy percent of the money seventy percent rick has taken for himself and also that gets cut to thirty five percent so this could be a brutal change and that's where some people say my business is growing I'm taking less money for myself I don't know this is working on a go back to freelancer model the traditional entrepreneur model with employees and so forth requires that additional overhead and you're gonna have a lower percentage but if you stay a freelancer you get capped sometimes here may be here but you get capped because it's the time for money trap even you can only do so much says how you break out we'll actually while we're on break I was figuring it and what's interesting about it is I'm at that space where right now if I might take the next logical step, operating expenses are gonna actually double because I'm going to step into like an entre port or an infusion soft to make things that happened for me. Yeah, which is basically like hiring a virtual assistant to it's like I've got to go make those investments to make things start to happen yeah, otherwise I stay right at my same level but I'm doing even more of the work yeah, no, that's, exactly. So you have to invest these things and that's what these companies are experiences, companies get biggers, they have to invest in your infrastructure more. So you see, the operating expenses for healthy companies actually grows from the smallest cos maybe thirty percent of their total revenues going to operate expenses as companies get bigger, forty fifty, then sixty five percent and so forth. But if you look at the owners pay, while the percentages slowly drop over time, um, the, uh, the percentages of a much bigger number, so the actual net pay you're taking home is more significant. One thing is interesting, and I expect very few people in our audience are in this situation when a company gets past ten million dollars in revenue on finding most business is the owner doesn't get pay any more because they've become almost a full time business owner. They're not really employed by the business name, or this is when they have hit michael gerber's from in tow on the business, because it's such size, so they make all their money out of profit distributions, but twenty percent of a template are coming. It means two million dollars are coming out every year into distributing that pay so that's how that that works, you'll also notice this chart that the profit percentages the business gets pierre goes for five ten fifteen and drops back to ten it seems that in this range where company gets to about a million dollars in revenue that it has infused a lot more money into operating expenses the whole way a business function changes dramatically once you get about a million dollar point have a certain number of employees certain sides of overhead that you need to focus more on operate expenses at that time here's the deal these air called taps target allocation percentages ricks anomaly here's a number I said he should be getting to he's already there so kudos to you brother are quite day depends you see expense but kudos to you you're on it and now the goal for you simply can't grows top line with double triple and you're going to and we're golden the challenge to use the squeeze a little more out of it and can we stay where we are if your business isn't where rex is and maybe there's a way we can call you up next but your business is and where rick is then we need to start making these adjustments uh on a more frequent basis to get us up there well, I think part of you is I haven't taken the prophet and it's really been going down in here because you have things your own problem yeah have so you know so there's something there's where I need to make the shift okay that's where I need to make a big show okay, so this is that this is where the conflict shows up is if I do that shift emotionally in my head I'm saying wow that's going to take away from operating expenses but I need a b a I need the entre porter an infusion soft but in reality this is like put on your big boy pants and go that zack what this is and that's what it's all about this is the hard conversation and that's where becomes a bucket of cold ice because so easy to justify and that's parkinson's law kicking in of course you need it of course you need the entre port of course you need those tools but yeah, I put on the big boy pants and we're goingto start putting some more toward prophet now I said just don't go right to the five percent it may be too intense too quickly start at one percent then it is just a little bit but you're gonna start getting this habit and every quarter you taking some money out then you're gonna find out I gotta find other software that accomplishes the same thing it's less expensive or other ways or meaning you know we can share some software someone else or whatever but it'll force you to find different ways to do this so you're having the conversations kicking off your mind already, which is perfect just perfect yeah, yeah my brother that's awesome, yeah chasing so we're making those adjustments once a recorder, right? Okay, just making sure chorley adjustment first thing you're doing taking a profit. So what happens is the end of this quarter would you start taking profit somebody's and come out, rick? And if it's one percent of six thousand, maybe six hundred bucks, there may be two hundred bucks there. I don't know it may be a small amount, but two hundred bucks will come out and it's for your used to celebrate. So you're gonna have a nice dinner out or whatever you gonna do with it but starts changing your relationship to your business like it's paying me baby, I'm making some money. This is awesome! And then you say I want to do more of it so it allows you turn up the heat, take your profit first, then do this quickly adjustment on the same day and a great freaking day thanks brother, I don't know what you're about to do. Here we go, go! I don't know yes, he knows that he wants to invest in something like, um the software he was talking about do you put the money aside like over time, I think you complete me because you're totally right everything you've always asked me like you have a question the answer in there it's exactly right if rick knows he needs to buy the software it is the one time cost or maybe two recurring free assumes recurrent free he can start pre allocating the money for it there's a couple of counts. I think we talk about it later but I suggest staying up a few more accounts. Remember, the base accounts are your income account profit owners pay tax and operate expenses. There's another account and I made a note to myself, jason when you were talking spicy, just saying up account called the vault uh a u l t it could be a checking account it's at your second bank and this is this could become your rainy day fund so instead of having the prophet accountant taking just fifty percent out instead set up a vault that is just money or setting aside to sustain your business of a dark day comes studies show well, experts are reporting that if you save away three months of income you can survive like eighty percent of the disasters ahead business hit businesses if you save six months of income, you can survive basically any business disaster that will come your way now the reason is if you save up three months of income you're busy your business makes pick a number ten thousand dollars a month that means save thirty thousand dollars what happens is most disasters in the business most struggles isn't that income goes away and there's nothing there income to schtrops so that thirty thousand just needs to support the drop in incomes that thirty thousand stretches beyond three months and if you've six months saved up as they're showing you khun basically survive most almost any circumstance I call that the vault account and so I do is when I have that my profit building up when it comes to the quarterly distribution and I'm taking profit out for myself I think that fifty percent outfor myself I celebrate the other fifty percent gets talked into the vault and just sits there and I keep on putting money they're putting money they're putting money there and starts piling up it never gets touch it just sits there is actually in cds so it's occurring some interest and just gets tucked away okay when it comes teo expected expenses I have an account was set up I called capital equipment purchases orbit area sometimes I call it the big purchases and so what I'll do it's from my operating expense account uh every tenth and twenty fifth as money goes in there I pay my bills and I'm ensuring there's a little money left over and I put in my big purchases big purchases I start piling money up in there what happens is this gives me a sense of of of how quickly I could buy the thing so if I need to buy something that's a thousand dollars and I'm putting one hundred dollars away per period I know to take ten periods to buy the thing so I can start projecting when I need it so rick will know how much this software is that he believes he needs and in my question back to him now we ran this assessment on them is do you really need that software is they're less expensive will turn of our way to do this less expensively and if we're committed to doing this how much is it going to cost and let's start planning for it now and now we'll know when we can actually afford this and stay profitable whole way through well here's here's the ah ha moment from that conversation so on support is what I'm considering going on and they actually have a ninety day use this off or get out of it yeah okay so as I was sitting here just thinking too this like okay I'm not ready yet for it bye known about ninety days I will be ready so I ve implement putting that money away to start it for the next ninety days and then I go on the ninety day thing and doesn't work I've actually doubled what I put away your oh so you're saying wait ninety days to start ninety a trial and if it doesn't work for me then talking about it I just love that yeah, but it's using starting to use your money smartly dok when am I really going to be writing implement this? Yeah. One of my favorite techniques is as paul schneider he's the owner of hedgehog hedgehog leather works in missouri the company conan were driving one day too from his house er to his workshop and we're driving by oh, I need to get some some electrical equipment for the shop okay? And we drive right by the home depot and we were kind of blow by go isn't that where you want to go? He gets there he's like well, backing away another day. Okay, next day we drive by and as you're approaching home depots like I get that electrical stuff I said cool okay? And he blows by the third day I'm like we need the electrical stuff paul and he's like I know and like, what are you doing he's like, oh, I play this thing I call the one more day game and we were talking about this at dinner dinner paul plays this game and I've adopted for myself whenever he determines he needs something he says I need it in one more day but he does it every single day and he stretches out things until it's absolutely mandatory because most of us are behavior parkinson's law we believe we need something we see we have the resource available we make the decision, we buy it and we buy prematurely so I love the way you're thinking you're like, you know what I buy nineteen on the double down tto half a year you're putting that cost a lot of cases you know is somebody who's self published that nine hundred dollars that I'm putting away to potentially jump on this could be the seed money if I decide to self publish and then I go okay, do I really need onto port? Because if my focus is publishing the book and why do I need the onto port stuff happening yet? You know there's lots of ways to rethink what you think you need yeah, and then my chain, my challenge back to you so how you gonna self publish without even spending a hundred bucks on that? Exactly? And I know you're smart if you ready figured out how to delay one thing, you'll figure it out you start finding ways in the way to do it eyes kindle first exactly the first sixty percent of my sales are on kindle platform and cost nothing ten percent on the hardcover audible seconds kendall audible so there you go um hossam lots of people have asked about rent because they decide basic is rent part of cokes get on. The other people are saying if you are currently and a lot of people being this position there solo preneurs, they're building but they want tohave an office at later point at a later point. Where should they be? Putting aside the money for that? For growth so they can have an office at some point? Yeah, so the biggest cost when we were speaking with deborah, the bookkeeper, the proper first professional bookkeeper that we had calling there's a couple areas she mentions, he said payroll, it was, uh, a big cost. Uh, rent is one. She didn't mention what I find is there, because it was the third thing she's everything she said. Cards cock indian cards, right, interesting, kat so that supplies and materials and so forth. So this payroll and rent within colleagues or not payroll and rent is not within cocks. So and this is where accounting starts getting real confusing, what's cocks and doesn't, meaning and a t other day and expensive expense. So it gets really heading, confusing that's. Why? I just tried a couple all expenses together, but important to adjust this real revenue number. So rent is not a cause. Cogsa cause it had sold is a cost that's incurred to sell a good like fabric to make the shells that that's like the labor that I pay the manufacturer the cost he charges me to make them correct like so if it's directly related to the cost and the cost will increase as these the product sells more that's the cost of its old c rent eyes not typically a caustic it's old it's it's space you have now you could get real fancy shmancy and you can say, well we're goingto allocate ten percent of our rent acosta good soul because that's the manufacturing plant bob out of that gets real nasty that's why you hired this guy to figure out that stuff but when it comes to us entrepreneurs were dismantling our business acosta's acosta's a cost and we want to cut him down rent I see more rent spent on vanity than anything else no, I need the great a space you know I need to impress my clients now we do it for ourselves so that the folks are asking where should I put rent my question back to them j keough's how can you not pay any rent? Can you share space? Can you put off his long as possible? If there's a cost that's imminent some point I mean at some point ricky's going to need teo teo by some kind of offer demand your growing business is just gonna have to happen you want plan for is far in advance as possible and set a separate account to start talking money away for it. I have a friend that, uh, he he builds roof deck. So if you go to new york city, he builds roof decks for celebrities. Usually that have a nice penthouse apartment. He sets it up there. One of the common materials he needs is his rivet thing that connects these decks together. He can't buy, even though he's only, like, say, two or three hundred of these rivets the specialized rivet. Every time sets up a deck he can't buy two hundred of time the company requires that buys ten thousand times is how many he's gotta buy it's a substantial purchase. So what he does is, every time he has income coming in he's allocating a percentage to that account. Ah, the big purchases account he's putting money aside, putting money aside, knowing that when he eats through his current inventory, he's got to replant. Shot a big level. Same idea. If you have a big expense that's coming down, you first see it. Start talking away for in small pieces becomes much more palatable, much more easy to control consumed.