In the Zone Magazine: Q1 2024

A LIFE IN PORTRAIT

How Colt Melrose finds passion, purpose, and profit behind the lens.

Picture This.

Coming in 2024

18

A LIFE IN PORTRAIT

How Colt Melrose finds passion, purpose, and profit behind the lens.

6

10

24

REMARKABILITY

PERSONABILITY

PROFITABILITY

Creating Cash

Sam Garcia

Putting Profit First

Trends

Ask Venus

Exclusive Content

Content creators need acSam Garcia draws to life a vicounting and bookkeeping too. brant new architectural vision.

Revenue streams, Spring Fever and industry stats

Answers to real bookkeeping questions from real clients.

A practical blueprint for creating and increasing your profits.

All In: How Great Leaders Build Unstoppable Teams one21accountability.com I 3

FIRST QUARTER 2024 VOLUME 2 NUMBER 1 A P U B L I C AT I O N O F

T R ADI T I ONAL F OR MU L A In this model, your business’s profits are whatever money will be left over. It’s simple in theory, but it is more likely to leave you with less profit—if you have any at all.

Why? Because you’re human, and humans aren’t good at keeping leftovers. If you have food to eat, you eat it. If you have money to spend, you spend it.

Venus Michael Owner, Small Business Development Expert

Ella Chief Canine Officer

PR OF I T F IR ST F OR MU L A What you need is a formula that prioritizes your profit, so that you know at the beginning

PRODUCED BY

of the year how much money you want left.

By deciding up front how much you want to have at the end of the year, you force yourself to find ways to get the same things done for less money.

CALL F OR A C O M PLIMEN TAR Y C ONSU LTATION (51 2) 7 91-3 74 7

Jamie Ezra Mark Creative Director Heather Anne Lee Editor Kate McDonald Writer Rheya Tanner Art Director Andrew Ontko Designer Josh Clark Designer Wendy Mak Designer

407-573-6061 hello@emagency.com emagency.com @EMagencyinc In the Zone Magazine is published quarterly by One 2 1 Account-ability. Copyright© 2024 One 2 1 Account-ability. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Opinions expressed in the articles are those of the authors and do not necessarily represent the opinions of One 2 1 Account-ability.

4 I In the ZONE I Q1# 2024

THE VIEW FROM VENUS

Lately, I’ve

been thinking about passion.

Now, this isn’t some lame “do what you love and you’ll never work a day in your life” cliche. I’m here to tell you, as someone who truly, madly, deeply loves her job, that isn’t true. Lots of “dream” careers include elements that aren’t fun — some are even painful. Have you ever seen football players or ballerinas soaking in a bathtub full of ice? That’s the painful price of passion.

Most of us have a love-hate relationship with paid work that tumbles in cycles of enthusiasm from despair to elation to pressure to excitement and so on. The necessity of keeping clients happy, so that you can metaphorically put food on the table, means we often concede on our creative visions to keep equilibrium; the result being that our creative fulfillment becomes lost in the cycle.

So, no. What I’m talking about is your passion project…What feeds your soul? What do you want the purpose of your day to be?

Let me give you some examples. Adam Goldberg’s business is pet photography, but his passion project is photographing shelter animals to give them a second chance at a forever home. It lights him up, gives him a sense of purpose, and brings him joy. It’s also a way to give back while creating a revenue stream. Felicia Reed photographs survivors of breast cancer for free, a disease that’s impacted every generation of her family. And then there’s Julie Powell. This woman decided that she would cook all 524 recipes from Julia Child’s book Mastering the Art of French Cooking in 365 days. Julie decided to do this as an escape from her stressful job and to give her life a creative outlet; she needed fulfillment she didn’t get from her nine-to-five. (Who can relate?) After dedicating a year of her life to this, her commitment culminates in a column for the New York Times, a book deal, and, ultimately, the movie Julie & Julia. However, that was all incidental; Julie only started the passion project to give her life more meaning, that was the real success.

So, friends, I’d like to challenge you this quarter to feed your passion. Don’t know what that is? I’d love to help. My passion is helping people like you uncover their passion and find a way to use it to bring revenue in the door. Email me at venus@one21accountability.com and let’s talk!

What I’m talking about is your passion project.

What feeds your soul? What do you want the purpose of your day to be?

one21accountability.com I 5

REMARK ABILI T Y

Creating Cash

Content creators are not exempt from accounting or bookkeeping for their business.

6 I In the ZONE I Q1# 2024

The creator life can be extremely rewarding if you are smart about it.

Getting paid to dress up in free branded clothes, test new products, produce video content, visit exciting places, and enjoy brand partnerships that span digital media… what’s not to love?!

In fact, 30% of 18- to 24-yearolds and 40% of 25- to 34-yearolds consider themselves content creators. As Forbes describes, “Ask a kid today in the U.S. what they want to be when they grow up. No longer is musician or athlete the top answer.

It’s a YouTuber—an answer three times more popular than astronaut.” And at $104.2 billion, the creator economy is one of the fastest growing industries, and it’s expected to double in size by 2027.

However, whether you’re a social media influencer, an up-and-coming TikTok creator, a streamer, or a photographer with a knack for creating digital content, you are still running a business, which means the not-so-fun parts of business need to be taken care of too— i.e., paying your taxes and managing your accounts.

Here are our top bookkeeping tips for content creators and influencers to follow to maintain spotless accounts:

Record all transactions Accounting for content creators requires you to keep a complete record of all income and expenses. Use an accounting tool to create invoices and record the payments when they come through. Affiliate income is another excellent source of digital content creator income.

There is no invoice for this, so you can just record it as a general sale of goods.

To record expenses, your easiest option is to link your

bank account to the software so it can automatically pull the details. You can also look for a tool with a “receipt capture” feature to take a photo of any receipt or bill and upload it from a mobile device.

Lastly, if you get paid in kind rather than cash, you need to record the market value of the gifted item for tax purposes.

Be careful of freebies Many influencer deals include freebies, i.e., the company gifts you an item separate from the money they pay for your content. If you are required to post about the gift, though, the IRS may ask you to pay tax on the item’s market value — so it is not quite as “free” as you think! One way to avoid this is by demonstrating that the items you are given are for use only in your content, making them allowable expenses.

However, this means that you must be careful about using them elsewhere.

Know what other allowable expenses you can claim In accounting for content creators, deductions are invaluable, if you do it legally. These include (but are not limited to): • Legal expenses; • Travel costs for work trips; • Advertising and marketing costs; • Office rent, maintenance, and utility costs; • Cost of maintaining your website and email list; • Cost of outsourcing tasks to other professionals; • Cost of equipment like phones, cameras, or computers; • Cost of software used to edit video/audio content; • Cost of getting trademarks and/or copyrights for your content; • If you use part of your home as your office, you can claim part of the associated costs as an allowable expense.

Lastly, make sure your Plan for taxes in advance entity structure is set up correctly to begin with, The influencer life can be super-lucrative, from sponsorship deals to affiliate income streams. You do not want to spend it all, though! It’s best to keep aside at least 15% of income for paying taxes, and consider tax-free investments for the rest. A good bookkeeper can get your started, but at tax time, it’s always best to consult with a CPA on building wealth and minimizing your tax burden.

UNDER THE INFLUENCE According to Marketing Dive, 69% of consumers trust influencers more than they trust information coming directly from a brand.

Moreover, 81% of consumers say social media posts from influencers, family, or friends drove their interest in an item in the past year.

And 99% of Gen Z consumers (born 1997-2012) will skip an advertisement if given the option, and 63% use blockers to online ads altogether.

typically an LLC if you’re self-employed, or S-corp if you hire freelancers or have employees.

The most important thing is to start things off right from the beginning, while you’re small and while you’re capable of tracking these things. That way, you can set up a foundation for success before you get to a point where it’s too hard to manage all of these items. one21accountability.com I 7

REMARKABILITY BROODING BUGS

SPRING FEVER

FARMING ENERGY

Breaking Wind

SHOW ME THE MONEY An analysis of photographers by revenue level and how they spend their time and money marketing indicates that even the lowest income-generating photographers are trying just about everything. At both ends of the revenue spectrum, photographers surveyed say they rely most heavily on word of mouth.

America’s biggest offshore wind farm is up and running.

A new turbine off the coast of Martha’s Vineyard started delivering electricity to the New England power grid January 2, marking the kickoff of the country’s first large-scale commercial wind farm. By the end of the year, Vineyard Wind aims to have 62 800-foot turbines spinning, which it says will power 400,000 homes in Massachusetts.

The wind farm became the first US offshore wind initiative to receive complete federal approval back in 2021—previous projects failed to launch.

Vineyard Wind is the nation’s second utilityscale offshore wind farm to start generating electricity.

Another large project off the coast of New York, South Fork Wind, began producing power in December. Once completed, South Fork will be capable of producing 132 megawatts of electricity.

8 I In the ZONE I Q1# 2024

Entomologist Floyd W. Shockley wants to mentally prepare you for a historically loud event this spring—and we’re not talking Coachella. Two cicada groups will emerge simultaneously. The last time Brood XIX, which has a 13-year cycle, and Brood XIII, which has a 17-year cycle, emerged in the same year was in 1803, when Napoleon was presumably so fed up by their mating calls that he sold the Louisiana Territory to Thomas Jefferson.

The cicadas’ bacchanal will begin in late April. Then they won’t appear together for another 221 years

BY THE NUMBERS

>148k professional photographers employed in the US in 2022

$109.8 BILLION

value of the worldwide digital photography market in 2022

$161.8 BILLION

projected value of the worldwide digital photography market in 2032

$40,170 the 2022 median annual salary for photographers in the US.

$59,445 The 2022 median annual salary for photographers in Germany, the highest in the world.

MARKETING DIVE

CONTENT IS KING

Revenue Streams DO CREATORS NEED SEPARATE ENTITIES FOR DIFFERENT SOURCES OF INCOME?

When you work in content creation, you’re more likely to have multiple sources of income. Some creators wonder if they should set up new business entities if they have multiple revenue streams. Say you make money from YouTube ad revenue, subscriptions, affiliate deals, e-commerce stores, or occasional guest speaker fees — is there any advantage to setting up a new business entity for the different income types?

different revenue streams and what they are doing.

So, for example, YouTube ad revenue, money from Twitch, affiliate brand deals — all of these could easily be lumped into one category, and therefore one entity.

Where it gets tricky is if you start adding things like rentals or an e-commerce store, because that will change what’s important for accounting. An e-commerce store, for example, will have very different considerations, like inventory This depends on a lot of factors. At and like sales tax in different states.

Whereas with YouTube ad income, face value, the answer may seem sales tax really is a non-event. This pretty simple, but it could also get is why it makes sense to consult a very complex. Without any additional context, one way to structure Profit Strategist, because it can get your business would be based on the really, really tricky.

TRUST YOUR GUT A 7-year-old goldendoodle named Cecil ate up $4,000 in cash his owners set on a counter in their Pittsburgh home. Cecil called it investing in himself.

one21accountability.com I 9

PERSON ABILI T Y

TRES LAGOS AMPITHEATRE Sam worked with the Client to develop a distinct style of architectural expression that combines “old world” cues with contemporary detailing and material expression.

The project also includes a public space venue on waterfront park in Northwest McAllen as well as an 80 foot tall tower.

10 I In the ZONE I Q1# 2024

ONE-ON-ONE WITH

Sam Garcia Drawing to life a vibrant new architectural vision for his business and hometown.

In most coming-of-age chronicles, a distinct yearning emerges among most adolescents—a fervent desire to break free from the confines of the “small town” that cradled their upbringing. The familiar refrains of “there is nothing left for me here” and the bold declaration of “onward to bigger and better” resonate with a certain swagger in the ears of those who once strutted through the provincial streets. Such is the dynamic narrative of youth, where the pursuit of grandeur becomes the resounding anthem propelling them toward a world beyond the provincial borders they once called home.

Sam Garcia is certainly no exception. Raised in Denver, Colorado, his family moved to McAllen, Texas when Sam was 8 years old. From as far back as he can remember, he was already dreaming of bigger things, erector sets and Lego sets his early version of CAD. So when it came time to launch, Sam jumped at the chance to attend college in “bigger and better” Austin. With his degree in hand, Sam’s career

began with work in a nationally recognized architecture firm, followed by an immersion into the field of transit-oriented urban design. His passion for high density, mixed-use, pedestrian-dominated communities took him on projects from the East Coast to the West Coast and several stops in between — but in 2008, Sam returned to the Rio Grande Valley to reconnect with family, friends, and the community he loves.

His explanation? “Growth can happen anywhere, even in your small hometown — so if you could be a part of that change in landscape, wouldn’t you?”

Sam explains.

“I began my firm 11 years ago, and like most young architects, it wasn’t anything fancy — my office was my kitchen table. A laptop and some audacious goals,” he says with a laugh, “You could say I jumped with a parachute, the wind in my sails!”

For the first six years, the wind blew consistently into Sam’s firm, charting a course for unprecedented growth. “I

“Growth can happen anywhere, even in your small hometown — so if you could be a part of that change in landscape, wouldn’t you?”

one21accountability.com I 11

PERSONABILITY went from a solo practice to have an office, to hiring staff, to needing a larger office, and hiring even more staff. We were growing and expanding in ways that we never expected at a rate we were fortunate to maintain.”

Even the pandemic didn’t slow things down, at least not at first. “We still had projects in the queue that carried us from 2020 into 2021, but as those projects finished, our growth has plateaued. Although we

12 I In the ZONE I Q1# 2024

aren’t seeing the steep trajectory that we had in the beginning, we are still growing, and that’s great. And honestly, the post-pandemic slowdown has allowed me to refocus a bit, to approach growth in a much smarter way.”

The last two years have been dedicated to “smart growth,” Sam says. “About two years ago, I retained a business coach— someone to help improve different aspects of the company,

from big-picture thinking to daily task management details.

And what we quickly realized was that although I had a CPA managing my taxes, what I really needed was a bookkeeper.

Someone to help organize me on a weekly and monthly level.

And that’s when I first connected with Venus.”

Getting connected with a bookkeeper and working with a bookkeeper are two entirely different things. It’s one thing

to let a bookkeeper manage the books, but it’s another to give them the ability to implement systems and make changes.

“Venus did exceptional work getting my books back in order.

She went back and fixed a lot of mistakes that had carried over for years. She not only coached me through the mechanics of budgets, cashflow, QuickBooks, and Profit First, she’s also just a really great friend, coaching and mentoring me through

the highs and lows, the energy and emotion that comes with running a business.”

Eighteen months later, the business is better than ever.

“I have been using Profit First for about 18 months now, and the cash reserves and savings are healthier than they’ve ever been — it’s incredibly liberating to feel that sense of calm about my finances.”

As any business owner, having the peace of mind allows

you to do what you do best.

With Profit First, Sam was able to take a vacation with his family for the first time in nearly four years. A vacation free of worrying about the health of the company, thanks to the systems and the watchful eye of Venus.

“As an architect, I see Profit First as a design. There’s a systemization to it; how the business runs, what each dollar does. Coming from an

TRES LAGOS COMMUNITY CENTER AND POOL The centerpiece of a large master planned community in McAllen, TX.

one21accountability.com I 13

PERSONABILITY architectural standpoint, it means that the different possibilities and scenarios have already been thought of, and they’ve been taken into account ahead of time.”

Being an architect is full of different characteristics. Every project, large or small, has its unique aspect to it. Working with his team, Sam strives to create functional spaces that will continue to evolve in the future. You could say the same with Profit First. Each person

CAVAZOS SPORTS INSTITUTE The premier strength and conditioning coach in South Texas worked with SGA to create a one-ofa-kind performance and training facility.

14 I In the ZONE I Q1# 2024

has different goals and needs, and they can be customized to create a better tomorrow.

“I certainly have goals for 2024; certainly a revenue goal,” he says with a chuckle. “I would love to exceed this year by at least 25%, which is entirely doable. Another goal is to build a generalized reserve for the company, equivalent to about 20% of the total revenue,” Sam explains. Profit First, combined with hard work, makes these goals more attainable.

With his wife, Annette, a 4-year-old, a 15-month-old, and a baby on the way, not only is Peppa the Pig constantly playing at home, but so is the consistent balancing of roles in the Garcia household. With the books managed, the profit reserves growing, and plenty of projects in the wings, Sam can be a true family man. Spending time building quality memories with those he loves while building a dynamic city ripe for the next generation.

ASKVENUS

Venus Michael answers your cash management questions What are your thoughts What makes your bookon establishing a business keeping services different line of credit that we can from others? draw on periodically?

Oh... That’s easy! What makes Great question, and I cover this in my upcoming book, Profit First for Photographers! But the short answer is: Go for it if you are responsible. The same is true for business credit cards and business loans.

Felicia Reed is a great example. She started with a business credit card, which she used and then paid off consistently. A few years later, she purchased a vehicle for the business, which further increased her credit. And with that great track record, Felicia was able to secure half a million dollars to mortgage her studio.

That said, watch those interest rates! It’s impossible to be responsible if you’re locked into a high interest or high fee credit product. Eighteen percent interest? 20%? 25%? Absolutely not. Not even if it’s “just to get started” or only a $1,000 credit line. If you don’t qualify for a low interest option, do yourself a favor and skip it. And if you have a poor track record with personal credit, don’t tempt fate. It’s not worth it.

Plus, the truth is Profit First can become your own line of credit in a short amount of time if you trust the process!

One 21 AccountAbility stand out is our high-touch experience—we make bookkeeping personal. And that goes far beyond cleaning up your books and creating a budget. That’s important, but where we excel is getting to know you, personally and professionally.

If you’re a solopreneur who wants to travel six months of the year, we need to approach your finances in a different manner than, say, a small business owner with five employees and a family to support. Plus, as one of only 500 Master Certified Profit First Professionals, we’re uniquely equipped to guide you through the program. We don’t just manage your accounts; we integrate the Profit First methodology to provide a dual perspective on your finances. This means not only tracking every dollar but understanding its impact through strategic allocation. Our monthly Zoom meetings offer a deep dive into your business’s financial health, past, present, and future. We celebrate your successes and offer continuous support, making our services a blend of personalized care,

professional expertise, and a commitment to your financial clarity and success.

With Profit First how do I determine if a reimbursement comes out of Owners Pay or Operating Expenses?

Anything that is a reimbursable business expense should come out of operating expenses, period. Owners pay is specifically for earnings, or personal expenses.

I’m good at managing daily finances. How can Profit First add value to my existing practices?

Even if you’re adept at handling day-to-day finances, Profit First elevates your financial management by offering a strategic lens for viewing your finances, focusing on profitability rather than just revenue. This approach ensures that you’re not just running a business; you’re growing a profitable venture. Our Profit First implementation service complements your existing practices by introducing financial strategies that boost efficiency and profitability. It’s about optimizing what you already do well and guiding you toward greater financial success and stability in your photography or legal business. one21accountability.com I 15

PO 16 I In the ZONE I Q1# 2024

a life in

ORTRAIT Faith, family, and a fragile photograph inspired Colt Melrose to leave a life in ministry for a purpose-driven career in photography.

S T O R Y H E AT H E R A N N E L E E

W

hether it’s a grandparent’s weathered face, a child’s innocent gaze, or a celebrity’s poised demeanor, portraits offer a window into the soul, revealing the stories, dreams, and experiences that shape our shared humanity. And the photographers who create such images bear witness to that living humanity in remarkable ways.

Such was the case for Houston-based photographer Colt Melrose, who stumbled upon a decades-old image of his great-grandfather in a weathered photo album.

“I grew up in a generation where digital photography was new and novel, but we still printed pictures. In fact, many of my core memories and what I know about my family history are related to pictures

one21accountability.com I 17

A Life in Portrait from a photo album. But it was one in particular that stands out and has shaped my photography business as a whole,” Colt says.

It’s a black and white image of three gentlemen dressed in suits and hats, sipping what appears to be root beer floats from straws. Think Vaudeville meets Charlie Chaplin.

“My Great-Grandfather Oscar was a traveling performer, an entertainer at his core. Can you imagine the stories these three could tell?” he says with a laugh.

“Discovering this photo in a forgotten album was a powerful moment for me. In those days, having a photo made was a serious affair. For Oscar, his brother, Bill, and their friend, Charlie, to be sitting and having fun speaks volumes. It gave me a piece of my own history that I didn’t know existed, and it never fails to make me smile,” Colt says.

“That’s what I hope for in the images we create. I imagine what it will mean for the family, not just now, but generations from now. This is why it’s so important to find those unique moments beyond the standand-smile; the real moments.

That’s what we’re looking for during our time together…

Memorable history.”

Of course, getting to this point was decades in the making.

“I spent 15 years in full-time church ministry as a Media and Communications Pastor, which encompassed everything from creating videos and graphics to writing and content production, and, of course, weekend service

18 I In the ZONE I Q1# 2024

experiences. What I loved about that time in my life was the people. My passion has always been people—helping people, serving people, building relationships— that’s really what fuels me.

“But somewhere along the line, the work became more about technical details and less about connection. I got really burned out and knew I needed to make a change. So my wife, Lindy, and I took a leap of faith, which resulted in building a business from scratch. But in doing so, we knew that it had to be something that really fueled us. After spending 15 years in a high-pressure environment, it was important to us to create a more enjoyable business that gave us the ability to have a high-touch experience with people.”

Photography was just one of many ideas Colt and Lindy entertained for their future, but it was one that felt the most natural. “It was something that I was good at already; my ministry experience had taught me the technical skills, and my love for connecting with people made the experience so rewarding. It was fulfilling to be able to help somebody look their best and capture significant moments of their lives for lasting memories. The transition into photography felt like a natural extension of who I already was, in the sense that I could serve and help people strengthen their families, allowing them to present their best selves through compelling headshots.”

Still, the transition didn’t happen overnight, and there was a

lot to consider with three kids at the time (now four!). “When we came to the Houston area in 2011, we had the opportunity to start earning a side income through photography and video work in 2012. But we didn’t make the leap to full-time until five years ago.”

That slow evolution allowed Colt and Lindy to be mindful about setting their business up for success.

“Coming out of ministry, we took a totally different approach.

In fact, we implemented Profit First from the very beginning— that’s how we eventually came to Venus, through Felicia Reed. I was involved with several online photographer groups with Felicia, and she spoke often about Profit First. I did a quick study on it and began to read the book and that’s when Felicia introduced us to Venus. We were all over it because she was somebody who could help us not only implement the system, but stay aware of it and help us to avoid the pitfalls of implementing the system.”

Over the years, Venus has helped Colt and Lindy be more strategic in how they approach their business and their goals.

“For example, generosity is paramount to us, so we actually have a generosity account from which we give 10% up front—we take that out before we even pay ourselves,” Colt explains. Sure, it’s not what Mike preaches, and I understand why paying yourself first works, but for Lindy and I, generosity is a core value to our lives, to our marriage. Venus

“Discovering this photo of my Great Grandfather Oscar in a forgotten album was a powerful moment for me.” one21accountability.com I 19

A Life in Portrait ADVICE To photographers transitioning, my advice is to resist the misconception that you must be low-cost to succeed. Offering a high-quality service that allows you to be around year after year is not only the greatest things for your business, but also a benefit for your clients.

recognizes that, so we have an account that we put that money into so it doesn’t get spent on us.

With Venus in our corner, we’ve found success by channeling these resources into meaningful acts of generosity.”

In his opinion, what makes Venus different than other bookkeepers and accountants is her passion for creatives. “As creatives, we often don’t approach things linearly, and that’s where Venus comes in. She has the ability to take our goals and break them down into a clear, concise, actionable steps.

There’s no accountant speak or obtuse fiscal theories: she make it real, approachable, and easy.”

“When I quit my job, we had $10,000 in the bank, which we thought was a ton of money.

(Laughs) It didn’t take long to realize that it wouldn’t last long.

Our saving grace was God’s providence, bringing in valuable

clients early on—individuals with whom I had established deep connections during my years in Ministry. When they learned about our new venture, they were the first to pick up the phone and give us support. This prompted a complete 180 in our service approach, from being a shooting link photographer to a more personalized, high-touch model.”

“I knew that it needed to be at a completely different price point.

We’ve steadily increased our prices over the past five years, aligning them more reasonably with the value we offer. My back was against the wall; I had to provide for my family. So we just went for it. We abandoned the low-cost, low service model and embraced a luxury approach with a premium price tag.”

For many photographers just starting out, that logic is challenging. Especially when clients push back on a hefty price tag,

but Colt’s all in. “The most important thing we can give to our clients is the ability to be around 20 years from now. It’s not a gift to our clients when we charge them a low price and then we’re out of business the next year, because then they have to start over and build a relationship with a new photographer.

“In our five years, we have clients now that have come back to us two or three or four or five times. That expression of trust is truly priceless. We’re seeing families grow. And every time they are in front of the camera, they are more comfortable and trusting. And that shows in the photos.

“Not everyone has an entertainer’s joie de vivre like my great grandfather and his friends, able to ham it up in front of a camera. But with time, we’re able to capture unique moments that other

“…portraits offer a window into the soul, revealing the stories, dreams, and experiences that shape our shared humanity.”

20 I In the ZONE I Q1# 2024

one21accountability.com I 21

A Life in Portrait photographers don’t get. Why? Because our clients trust us.

The experience we’re offering comes at a higher price point, but it’s because we’re able to build a unique, long-lasting experience that only continues to grow over time.

“Our photography business is about more than just capturing moments for clients and getting paid. It’s about creating something that grows beyond us.”

And that includes building a legacy business that can be passed on to their children.

Since going full time in 2019, Colt Melrose Photography has grown its business from $150,000 gross revenue in the

22 I In the ZONE I Q1# 2024

first year to $300,000 in gross revenue by 2022, with a larger profit margin.

“2022 was a great year, and we had incredibly high hopes for 2023,” says Colt. “But God had other plans.” In December of 2022, they lost their studio space in a building fire and were forced to relocate. “No one was hurt, and our equipment was safe, but the expense of moving was a challenge. Then, in February of 2023, I was diagnosed with chronic myeloid leukemia, a very treatable form of leukemia, but cancer nonetheless.”

Colt and Lindy were forced to reevaluate their priorities for health and life, business and family. And yet, the couple

believes those challenges were actually a blessing.

“It made our family stronger, and with that came a shift in our priorities. One of which was moving closer to our new studio.

I had been spending two to three hours a day commuting to work, and that gave me less time with my family. Even though relocating our family and investing in a new studio were expenses we didn’t plan for, Profit First allowed us to make it happen without having to incur any debt.

And now, I have more time to spend with my family and focus on my health. Considering the hurdles we faced last year, maintaining stability and finding that peace is a major victory.”

COLT AND LINDY MELROSE OWNERS OF COLT MELROSE PHOTOGRAPHY- ON BUILDING A PURPOSE-DRIVEN BUSINESS WITH PROFIT FIRST • Opened home studio in March 2019 with $10K in the bank, a camera, a few lights — and no secondary income • Implemented Profit First immediately to ensure they could be profitable and continue to support our church and charities • Grossed $150K by the end of 2019, exceeding previous career salary.

• Continued to grow year over year 20202023. Gross revenue of $300K in 2022 with increased profit margin • Thanks to Profit First, we were able to survive a studio relocation due to fire in December 2022, and a cancer diagnosis in February 2023.

• Able to increase the money we donate because revenue has increased and profitability continues to increase as well.

• We (Colt and Lindy) have more freedom to impact the world around us, be present with our kids, and we now have weekly dates for margaritas and Mexican food.

one21accountability.com I 23

PROFIT ABILI T Y

24 I In the ZONE I Q1# 2024

Putting Profit First Meet Profit First, a practical, actionable blueprint for creating and steadily increasing your profits.

Sometimes the most important business ideas are the simplest. Focus on leads, not sales.

Don’t sell products, provide solutions. Start small, build big. As for profitability, you can sum up why that matters in just one word: Stability.

Being profitable means that your company can continue to offer its valuable services, even during challenging times like recession, pandemic, or even personal health challenges. Being profitable means that you, your family, and your employees can maintain their lifestyle.

“The truth is, Profit First is a concept I wish I had when

I began my entrepreneurial career,” says Venus Michael, CEO & Founder of One 21 AccountAbility. “Thanks to Profit First, I was able to make the shift from side hustle to legit business in six months. Years later, with healthy business finances, I have been able to grow a team of dedicated people, and I’m sharing Profit First with all my clients. Now, more than ever, I’m confident it can help all small businesses improve the overall health of their company. And be profitable. Because let’s be honest: in business we want to be profitable.”

Essentially, Profit First is a book about cash management, but in reality it’s so much more. It describes both a philosophy and a system for building businesses in a sustainable way that creates long-term success.

What is Profit First?

Essentially, Profit First is a book about cash management, but in reality it’s so much more.

It describes both a philosophy and a system for building businesses in a sustainable way that creates long-term success.

How do we do that? By flipping a universal rule on its head.

The GAAP or Generally Accepted Accounting Principle is:

SEE FOR YOURSELF Contact One21 today to discover how Profit First could work for your business.

In the formula, profit is a leftover, a final consideration, something that is hopefully a nice surprise at the end of the year.

Profit First is mathematically the same, but it employs a shift in behavior:

With Profit First, every single time revenue comes into your company, you set aside a predetermined percentage of that revenue as profit. one21accountability.com I 25

PROFITABILITY

PROFIT FIRST IN A NUTSHELL • Before you pay expenses, pay yourself first.

• Run your business based on what you can afford to do today, not what you hope to be able to afford someday.

• When profit comes first, it is the focus, and it is never forgotten.

You transfer that profit to an account in a different bank, and you watch it accumulate.

Once you realize that your profit should be allocated before distributing money to rent, utilities, overhead, and other bills, the rest is easy.

It’s basically the envelope method for personal finance, applied to business. Profit First is designed to provide clarity around your cashflow, allowing you to make informed decisions rather than emotional reactions or inaction.

Mindset Reset We think of expenses as unavoidable — cost of material, for example. Rent, salaries, utilities and so on seem equally intractable, at least in the short run. If we didn’t need to spend on something, we wouldn’t, right?

Not really. In fact, as humans we naturally focus on things that come first, and when profit is at the end of the equation we seek to increase it by increasing the front — the revenue.

Reducing expenditure is something that simply doesn’t

occur or seem feasible in growing business.

The practice of setting aside a percentage of profit and spending only what remains is what makes Michalowicz’s concept work. Expenses actually can be avoided, eliminated or budgeted for a later date. Doing that can be uncomfortable, of course. It may mean some spending for equipment or expansion doesn’t happen immediately. Sometimes, difficult decisions about people and positions must be made.

Despite those hurdles, and the current bigger-faster-now culture, Michalowicz says that a profit-first approach is actually growth-friendly. When you come across a unique opportunity that will add to revenue and profits to your business, you will have the resources to invest without endangering the current business.

The Benefits of Profit First for Business Venus explains is this way: “If your company isn’t where you would like it to be and cash is not readily available, it is because you are not managing cash well.

Once you realize that your profit should be allocated before distributing money to rent, utilities, overhead, and other bills, the rest is easy.

26 I In the ZONE I Q1# 2024

Small steps will get you to that goal. And that’s how Profit First works — with small steps.”

Most of the clients who come to One21 typically have one, maybe two bank accounts for all of their finances. According to Venus, when you’re looking at one large lump sum in your bank account, you’re much more likely to spend freely because everything feels like a small sum of the whole account.

But if you separate all of your income to pre-determined allocations based on percentages, you force yourself to think more critically about your spending!

The book recommends setting up five foundation accounts to start, but if that’s overwhelming, start with one.

Make a savings account in your existing bank and then allocate 1% of your income to that account, the profit account. The logic here is if you bring $1,000 of income this week, you can certainly run your business off $990. Ten dollars seems arbitrary, right?

Then we increase to two or three percent. You can run your business on $980 or $970. If you do that for a few months, and grow your profit account, the pain point feels non-existent and yet you have an entire account that’s just profit. And suddenly, Profit First seems completely logical and you’re ready for more foundation accounts, a.k.a. envelopes.

Your exact percentages will depend on your business structure, type of business, and

current financial situation, but let’s use this example: 30% Owners Pay 10% Debt 40% Expenses 15% Tax 5% Profit Twice a month, the money coming in is divided by the percentages you have calculated and allocated to its applicable account to be used only for its specific purpose.

One 21 uses Profit First to manage its finances, and so do several other clients, including Colt Melrose of Colt Melrose Photography (see page 16); Felicia Reed of Felicia Reed

Photography; Adam Gold of A Gold Photo; Rett Scudder of Beach Front Boat Rentals; and Estate Attorney Amy L Jenkins, to name a few. It’s amazing the difference one small percent can make, even after the first quarter!

The true and greatest benefit of Profit First Method: the ability to create real, tangible improvements in your finances — both personally and professionally — on an ongoing, scalable, and sustainable basis.

Want to learn more about Profit First and how it could work for your business? Contact us today.

TOOLS • Read or listen to Profit First.

• Listen to the Profit First Podcast.

• Schedule a Profit First analysis.

one21accountability.com I 27

PROFITABILITY

Profit First According to Anita Anello CEO of The Ripple Affect

“I love what I do and the time and financial freedom I now have.”

In 2018 I launched an eCommerce business that I thought was doing well but was really held together with duct tape, dreams, and debt.

Then, Covid hit and the supply chain shut down in what seemed like overnight.

During that time, I read Profit First and started to see there was a better way to build

28 I In the ZONE I Q1# 2024

a business by deploying a systematic way to put profit first in my business. I love the concepts and could totally see the value but had a hard time putting them into practice in my current business model.

I put the book away for a bit, thinking “I don’t have enough income to even implement these principles.”

In 2021, I decided to switch gears and launch a consulting business based on my specialized knowledge as a Project Manager running 6-7 figure SAP software implementation projects for mid-sized companies that need change management expertise.

In May of 2022... Crisis hit! I was struggling in my marriage,

my husband was hospitalized, and while in the hospital, he lost his job - our only current source of income. We racked up more debt from medical bills! I panicked! My life seemed like it was all falling apart. I started applying for jobs, calling friends, colleagues, and anything to turn on some income for our household.

One year later, thanks to Venus and Profit First, I now have a thriving consulting & coaching business helping software clients and other Successful Women of Faith build

profitable businesses based on their specialized knowledge.

Profit First showed me how to take a failing business, where I was in debt, stressed, and in a pretty regular state of fear and move to a profitable, confident, joyful, satisfied entrepreneur who now makes three times my old salary as a Software Executive and allows me to work half as much! I love what I do and the time and financial freedom I now have.

I’m happy to say that I am thriving in all areas of life: marriage, health, family! I’ve never

felt more equipped to walk in the God-sized vision I have been given to help other women build profitable consulting businesses while having healthy marriages and intentionally raising their kids!

BEFORE PROFIT FIRST • $25,000 in business debt and $20,000 more in medical debt.

• Always stressed about paying selfemployment taxes thinking “Is what we’re putting away going to be enough?”

• My “free” time on the weekends was spent doing the bills, building a business, and stressing out.

• felt like I was all alone in figuring out the next steps.

AFTER PROFIT FIRST • $45,000 in debt paid off in 4 months • Business and Personal Tax liabilities all paid off AND an extra $10,000 to reinvest in the business.

• I’ve hired a Profit First Bookkeeper as my expert to help manage the finances, freeing up my time.

• I now have a team around me to help with the next steps of Profit First as my business grows.

• I am mentally and financially ready to hire more people to help me reach my time-freedom goals.

• I make 3x’s what I used to make as a Software Executive and work half as much!!!

• I am enjoying the process of building a profitable business.

one21accountability.com I 29

PROFITABILITY

30 I In the ZONE I Q1# 2024

Mike Michalowicz shares an Excerpt from “All In: How Great Leaders Build Unstoppable Teams” I hate to break it to you: there is no magic wand for the teambuilding process.

To flourish, we need the right set of conditions, created by great leaders. What worked for me and for the leaders I have subsequently interviewed and counseled wasn’t one strategy that produced better results over another. It was a formula that ensured my team cared about my company as much as I did. The formula works for the company I lead. It works for the leaders I have consulted.

And it will work for you if you embrace it. I am sure of it, because it is the most empowering way to help people be themselves. Their true selves.

The All-In Formula has four parts, and it breaks down like this: fit + ability + safety + ownership = all-in team.

I call it the FASO Model. I simply pronounce it “faso.” As in rhyming with the word “lasso.”

Fit. People will come, grow, and go. People aren’t the constant in a company, nor should they be; the roles are. To ensure your employees are a good fit, first understand all the functions of a role, and the qualities and qualifications required for that role. Then enlist people for the position matching their potential, talents, and identity to the role’s tasks. Don’t look for a person who can do it all; that is a rare situation.

Look for the person who is best at what you need most; they are abundantly available.

Ability. Great leaders know people are far more than their résumé. Hiring based on experience and education is limiting— for your team, and for your company’s growth. Rather than match a person’s qualifications to a role, consider a person’s innate, experiential, and potential abilities.

People who want to do a job always outperform people who need to do a job. Seek the want. The desire. The thirst.

Safety. People do their best when they are not worried by the rest. Protect your team and set up conditions in which they feel safe, enabling them to lean in to contribution. There are three types of safety to consider: Physical safety, where they have protection from harm to their physical self. Financial safety, where they can sustain their livelihood. And psychological safety, where they have confidence that there’s no detriment for expressing their true opinions, beliefs, background, or experience.

Ownership. If you want your team to act like owners, make sure they feel like owners. This one insight alone, put into effect, transforms perfunctory performance into all- out effort. Once we have an employee who does the right job for their abilities, who feels safe to be themselves at work, the next critical step is to foster psychological ownership over a task, project, or idea.

Psychological ownership is the strongest influence over self- identity: When team members are designated ownership over aspects of their job, the natural tendency is for them to put everything they have into it.

There you have it. The All-In Formula.

F+ A+ S+ O. It can be helpful to think about the formula like this: Fit and ability (where potential meets opportunity— identity is developed) Safety and ownership (where development meets environment— identity is expressed) Each part is effective on its own, but together, these strategies have a multiplicative effect.

Deploy the formula properly, and I promise you, you will build the team of your dreams. one21accountability.com I 31

CALL F OR A C OMPLIMEN TAR Y C ONSU LTATION (51 2) 7 91-3 74 7