3 Principles to Success in Cannabis Accounting


Awesome so now we’re going to get into the three key principles to success in this industry All right, so the principle number one is finding motivated clients So type of one in the chat if you have trouble finding motivated clients Like are you having trouble finding people who want to pay you what you’re worth? Are you having trouble finding people who even value what you do? Are you having trouble finding people who want to even do things right? Yeah, we’re getting little tons and tons of work one. Somebody is saying not paying my worth. They are chink. I Think for all this and this was for me when I moved out of the full-time CFO role Generally accountants and bookkeepers were introverted. I think more often than not and we we like accounting because we don’t like sales we don’t We don’t it’s the last thing we want to do even though we all have to do it if we’re gonna Get into this business. So we’ve My introversion and hating sales, I’ve created a system that I’ve used for a few years now it works really well we call it our fetch system and It’s I made it extremely easy And what happens when you throw a bone to a dog they bring it back to you So we’ve we give you different ways that you can throw out bones in different areas and you’re gonna have clients coming back to you so What do you guys think about a system like that to? Do the marketing and then it starts to snowball and then now your business is building and building just from different efforts So that’s good. Yeah our fetch system in the way. We’ve created it it is so think of it as outbound marketing In your first year or two and the same with me reaching out to people Very simple system automated but the ultimate goal. This is just your one the ultimate goal is what’s happening to us Now we do not do any Marketing on the service side. I get a call at least every week someone coming to me finding me and Asking me for services and when that happens when the inbound cut happens you’re already in the alpha role you can quickly say how busy you are and whatnot and we’ve we’ve had a very fun time playing around with and the pricing that you can hit people and people that when they really want your business, but anyway the system I tried to make So that people would not hate it or I wouldn’t hate it particularly I made this for myself was I wanted it to be very simple So I wanted to find the CEO and again, we’re gonna have a cheat sheet at the end I’m how exactly how we find these CEOs very very easy find their email also very easy And I’ll just mention that real quickly in today’s day and age I’d say nine times out of ten a CEOs email is their first name like any guru and then you put an ad and Then you put their domain name like my domain if if you were looking for me at hi-5 farms You would say Andrew at high five farms calm and you would have guessed it that’s what most people set up as our email and sometimes you got to put their last name, but Anyway, we have ways to find the email we have in our system we’ve written many compelling subject lines to get them to open it and a lot of its related around 280 tax and 471 and are they happy with that and Do they realize the penalties of doing it wrong? So we have very catchy subject lines And then we’ve got a whole bunch of content different content emails that you can play around with around the pain points of a cannabis CEO like the exact pain they feel on things as Well as benefits we can offer and then finally we have some attachments we send in to Kind of show some of the higher level stuff we do Compared to what? They’re probably getting now. So we have a really compelling email It’s totally automated you tailor to yourself and you can just find 10 or 50 CEOs a week and send that email out on that email you’ll have a Call schedule a call with me button through cleanly or HubSpot or something like that and so again automated you send an email out and that’s all you do and then either they just Don’t email you back or they book a call with you on your calendar? If they book a call you’re going to talk to them again We’ve written an exact cannabis call script with the CEO and on our call We keep what I call the alpha role. We stay in charge and we only ask questions which again is very easy We do not sell anything on our calls and that if a CEO gets on a call of us and tries to say Tell me your resume. How many clients do you have? What’s your rates and all that? I just say too busy to answer all that right now and I’m super busy. I’ll see if I can help you If not, I get someone else to help you, but I need to ask you some questions about your business I’m going to ask them how they do their cost accounting what POS they use What their tax return look like what their 280e adjustment was lots of? specific questions that I already know the answers to really when I asked them because Almost all the cannabis CEOs are not doing their accounting right? So we just ask them questions We end every call with a simple sentence CEO. I have a solution for you I’ll send you a proposal later today, and then you’re welcome to you know Research our resume or whatever else you want to so it’s all automated one set of one phone call One set of questions and then an offer letter out that we send to them. It’s filled with deliverables None of which are our time related. We tell them exactly what they’ll give give them around lower taxes more cash peace of mind and perpetual data room all these things we give them in a very high price that we That we charge for it and it’s not in our time We tell them we only work remote and we tell them that we don’t do second meetings. We don’t meet them in person we don’t talk to their wife and partner’s and Where we don’t want to waste their time. We don’t want to have our time wasted and so they can accept us or not So that’s kind of our system very simple There’s a couple of you guys who are saying that you like marketing and you like the sales part Another piece of the market is how many of you guys feel comfortable asking for fees? Like how many of you guys feel comfortable? How many people’s hands get clammy and they get shaky their voice gets shaky when it’s time to come down to the feed and you Get kind of flustered and confused You don’t even really know what to offer them if you have if that’s something that you struggle with if you can you yeah Jennifer’s saying I hate setting fees worst part is and not only is it hard asking for fees? How many of you have a hard time asking for? $2,500 a month monthly recurring 5,000 a month $10,000 a month how many of you can honestly say that I feel so comfortable with getting on these calls marketing and asking for $10,000 a month If that’s if you are the person who is not there yet Then we’re gonna move on to the next slide that tells you how to be more comfortable in asking for higher fees So principle number two is to become a VIP So we’ve laid out the red carpet for you and we want you to become exclusive That is the only way that you’re going to be able to offer higher fees when you pick a niche and become a VIP in Benicia and the VIP stands for Go ahead Andrew we had Really? The first one is expert but it doesn’t start with a V. So we expert at the end so Becoming an expert is is hugely. I call it the secret sauce. So whether you’re a photographer or an accountant or a Plumber you have to get clients and you have to serve them. Well, well in any Industry in the u.s. If you’re an expert in that industry, you will get clients easier and once you get them You’ll serve them better. So it’s a hugely valuable secret to know Whatever you’re going to do, whatever niche you focus on become an expert, so Part and we’ll talk more about this later in our program So we have very specific ways about how you can quickly become an expert and we’ll actually show that in a few slides later in This industry and as a matter of fact, you can start instructing in this industry If you we have people within three months of our program giving si PE courses giving workshops And we just had a student leader workshop last week in Oklahoma sold out 250 Cannabis CEOs. She’s from New York and she’s only been in our program six months And so you can’t eat there’s just such a lack There’s an it goes back to the fact that none of the big four. None of the mid-sized accounting They weren’t in this space. There aren’t teachers at colleges in the space. There aren’t gap Research so there’s a big lack of you With expertise so you can teach in your local community or or put on a workshop or conference and in the final piece. I Don’t know of any other niche in the u.s. That even has this opportunity participate is a huge secret that I’ve kind of added to the VIP and be an expert if I just accidentally started participating in a couple things and a great example is in I’m in Bend Oregon that’s where I live or three hours from a big city. We have 80,000 people our towns not a big town That’s kind of a little bit of a resort town And I went to the little the little Orca Oregon retail Event in our city and I quickly rose. There’s about 50 people there. Well about 40 of them were CEOs of either grows or retail and I quickly got a couple of clients and It’s just I showed up at this event to see what they were doing And they’re they’re interested in changing the laws and they helped not only changing the laws like when Oregon Implemented the laws in every state they need people to help them form The laws who know about cannabis and know about the rules and the politics and so it’s very important to get involved in your local Community and participate in these groups. There’s many many groups out there to participate in and the CEOs will appreciate it You will be meeting a lot of them Yeah, and so the point of this is once you become exclusive once you become an expert Then when you’re fetching and putting out those fillers for clients It’s going to be easier and you’re going to have those clients coming to you so all of this works together as a system and we’re just going to show you a little bit it’s and these are this all These slides happen Within one year and these are some of our students so it within one year dope CFO has been featured in all these and more We’ve been in Forbes we’ve been in Bloomberg. We’ve been in marijuana business daily magazine, which is the biggest marijuana publication We’ve been in Green entrepreneur, which is entrepreneurs comms green version accounting today. We’ve been all over the place in one year. Oh I was gonna say to that while you’re there and there sandy She’s one of our students just started in June and you can see on her little slide. Just since June of this year She’s spoken it like eight events on the right. This was her workshop. She just did sold-out Wow The point is there’s so many of these publications and online news sites and there’s literally a hundred Cannabis podcasts accounting podcasts. They need people to speak and instruct and be interviewed It’s endless and you know, we we were just out accounting today Literally the January issue of magazine went out in the mail Friday. I haven’t gotten mine yet it should have arrived today or tomorrow two eighty thousand people were well all throughout that article and but even I know I know another guy in the same article that just got into cannabis within the last two weeks because he Called me But he’s in that same article I was like, well, you sure got to be an expert quick because you weren’t even in the space yet and Yeah, so this is sandy she’s spoken at all This is her speakers real these are all the places that she’s spoken since June since she started a program She sold out this this was an Oklahoma event So a lot of you might be on here and saying oh well It’s not legal in my state, so I can’t do it sandy lives in New York She targeted, Oklahoma, Oklahoma just issued 2000 licenses last year so there’s a lot of License holders who need accountants and you can see by her being able to max out her event that the people are interested in Yeah, and that’s a good point with our remote practice We tell people we have clients all over the US our students have clients all over the US Don’t just focus on your state. It doesn’t matter if you’re in Alabama, and it’s illegal you can focus on California or Where we have a student in Massachusetts, which is actually a pretty big state and for cannabis. He actually targeted, California He landed 16 clients in 3 months in California With his practice. He just wanted to target California and become an expert there someone Side question how long before the big forms look after these clients. The big firms probably won’t come in till it’s federally legal So we’ve got a huge head start a couple points to that secondly, most cannabis CEOs are pretty young and hip and they’re not super psyched about these kind of big old-school people and then Thirdly, the big firms are wanting to do audit in public They’re not doing the day-to-day accounting of all these small companies So it’ll be just fine when they come in that gives you an awesome exit strategy So if you go ahead and get in before they do then you’re going to establish yourself as an expert You can be the one who is going to they’re going to go to four consult Consultations or buying your book of business or whatever. It may be. It’s this picture another success summer and She’s gone to events and had booth she’s done and she’s worked on several cannabis clients She does tax work and bookkeeping she did and she also Led a CPE with another one of our students They paired up and did a CPE also in Oklahoma and Oklahoma, of course is a great story. I’m from there They were so anti cannabis as you could ever be for the last and I know because my son was getting in trouble five six years ago with cannabis in Oklahoma as a teenager and But when they voted in June, they went head over heels into cannabis and within six months There’s twenty five hundred companies there and I get calls from my friends all the time. How do I get in and They slide on the right. We spoke at a tax panel I was the moderator of this tax panel the tax experts from around the u.s On cannabis just that was in December and we’re gonna show this because mark Moran is one of our students He’s standing up He was on the panel who actually didn’t have enough chairs and my Jessica I see I think is here in this call right now She is an cannabis expert out of Las Vegas and she was on the panel as well Mm-hmm Yeah, and then we have more students We have we have Brian and he has a he’s a huge expert in this he has he writes blogs He helps a lot of our students with different things with CBD. He’s done a lot of research and provides a lot of value so we have a community of students who are able to help with one another partner with one another and Get your questions answered And that’s a yeah, we in our program. We’re all on a private network and we daily talk about questions about like one $1.99 a or insurance issues or whatever it but you know people help each other on real client issues and and new tax laws Awesome. All right, and then we also have another student Stacy. She started women grow and she has 32,000 people interested in this once this is all happening So she started just to be clear women grow in her state of New Jersey. So that’s a national group And so so there’s many this goes back to the participant side. So there are many many ways You can become a participant in the movement one is just to join groups that are already out there. So Stacy in New Jersey, they didn’t have a women grow She started the women grow there and now it’s gotten very big there We have other students in another women’s group called elementa And there’s normal NO RML is a nonprofit focused on national State-level cannabis laws they have groups in almost every state that you can join So there’s many ways to get involved and and really forming your own group is a great way to do it yep, so that was this principle number two becoming a VIP and we’ve shown you how a lot of these students have within less than Some of these started in the summer time so less than six months They’ve established themselves as experts and became a VIP in this niche Now principle number three is now you need a world class system You need to have something that you’re going to give these CEOs so that you can help them with whatever you’re promising them if you’re promising them to save them in tax dollars if you’re Promising to save them in IRS audits or wherever it is that you’re promising them. You need to have a system in place and I think One point I might make right there is a lot of us You’re you may be like me or some of my students. You’ve had your own firm for a year or twenty years or whatever So you may have a lot of your processes in place, but where? You’ll get bogged down to cannabis is cannabis as a whole new world And so you just need your your system tailored into the cannabis world class system. And so that’s kind of what we’ve got as well So we’re going to teach you the pot tips We try to come up with catchy words to remember these bites kind of the three parts of our system again Finding and great clients for high fees becoming a VIP and then having a world-class cannabis system. And so that includes Literally everything we do in our practice. It’s all of our processes how we onboard them. It’s our actual work paper So if you go to our onboarding folder, you will find our engagement letter in PowerPoint or word that you can download put your name and tweak it to what you want without reinventing the wheel same on cleanup and Even before that we have a PVC list What are all the documents you need to request on day one from a canvas company? We have all that lined up What are we doing? Cleanup? What are we doing month in? We have a proprietary month-end close Template that is is very very detailed. I’ve never seen anything quite like it comes back to my kind of Price Waterhouse other days But it’s a very highly tied out closed file Same for our perpetual data room very high value to our clients That is where their documents everything from invoices to bank statements to leases organizational documents to financials every month to cost accounting work papers to 280e files and allocations that data is available Anytime all the time to us to our clients to their investors their lenders if the IRS comes in, it’s always ready so all of our processes and All of how we are born and are available for our clients all the tools and work papers We have over 150 work papers we have a chart of accounts for their QB be ready zero ready Excel ready for the grow a processor a retailer edible any of those we Those work papers for the chart of accounts Really? I mean I created my first one back in 2015, but it went through many many edits with many CPAs involved parties and attorneys Tailored so we could do the cost accounting for two for both gap into 80 right and simply and it wasn’t too complicated at work for with our bookkeepers, so We and even our cost accounting work paper. Same deal those evolved over about two or three years but they work very well and they will flow in as well to the tax work and So we have again a team, you know, we this again goes back to b2b I used to tell people I was just a loner and I don’t I was by myself and I didn’t do everything We tell even on day one. We tell our whether you’re a bookkeeper or tax prep you tell the client you do everything and if you Need to outsource and partner with either people in our group or even others in your local community You can partner but the CEO wants to hear that you’re gonna do everything for them so I never I always outsourced bookkeeping and tax prep in my work, but I tell the client I can do everything from Onboarding all the way through and then we just build the team and then we have this network of all skill sets in our group and In again with same with insights and knowledge All of the court cases all of the tax codes that you need to know and all the ideas around in any structure the political information you need software There’s many Software issues in cannabis and we have to cobble together a lot of software pieces because we use either QuickBooks or zero often Excel for consolidations There’s usually a cannabis POS in the mix which could be anything from green bits to flow hub You have to deal with a lot of them there most most of them are crappy and we have to use deal with state software like metric or bio track because it’s required by law and We have to understand the state rules. They’re also subject to OSHA FDA. So we really got a lot to know to help these companies And so we’ve got that knowledge in our system in our program same with pricing Exactly how we price based on deliverables not time and how our fees go up with their growth our clients get on day one Also to sum up it’s basically a shortcut. You know, I’ve had CPAs tell me they can do this themself and I say I’m sure you’re right You know just like I did but it’s just a question of how much time you want to put into it So it’s more of a shortcut is with people looking for the quick way in

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