The four things to know for financial success with Michael King
This episode is all about the one thing that overwhelms us all—money and finances. Michael King takes the scary out of accounting and translates the most important things business owners and entrepreneurs should know when it comes to their finances. He shares the four most important things, how they relate to each other, and offers guidance and advice on how to pivot your business towards success.
Listen to this episode to hear how you can have success, grow your business, thrive, and confront your finance anxieties. Hear what you might be focusing on that you shouldn’t be, and what you need to know if you want to be forward-thinking in your business.
Helping people understand finances
We open this episode with Michael explaining the one thing every entrepreneur should know—how 80% of small businesses in the US fail in the first five years because they make poor financial decisions and because they don’t know foundational concepts. He shares how he realized that most of this failure could be avoided if there was a bridge in communication between CPAs and accountants with businesses, and how this led to building his own business to address this need.
Getting really clear on finances—and fulfillment
Michael shares the four most important things every entrepreneur should know when it comes to finances and shares the mistakes he sees small businesses make the most. He emphasizes the importance of finding a bookkeeper—and how it can change everything.
We dig into the extensive knowledge Michael has in this field, but how that didn’t necessarily make him good at building his business. He shares the realization that made him fire all of his clients and start from ground zero, and how he had to get very clear on what was making him unhappy in order to recognize what would make him truly fulfilled—and how to do that for yourself.
Mike’s background includes a BS in Nuclear Engineering, an MBA with a concentration in data analytics, and a Lean/Six Sigma certification from Purdue University. Prior to starting KFE in 2015, Mike spent 11 years supervising the operations of nuclear power plants onboard submarines in the United States Navy. His post-military experience includes time as a senior operations leader at a global manufacturing company, as a senior consultant for a publicly-traded company, as the director of business analytics at a large SaaS company, and as the COO/CFO for a technology services company.
He’s an entrepreneur at his core and is passionate about serving others with the heart of a teacher. Outside of work, Mike volunteers as a Board Trustee with the North Texas Military Foundation, with The Rotary Club of Addison and The Young Entrepreneurs of Pace. Mike enjoys Auburn football, reading, and scuba diving.
“80% of small businesses in the United States fail in the first 5 years and when you look at why they fail, it’s not because they have a bad product or service, it’s because they make poor financial decisions.” -Michael 3:48
“Society is missing out on their gift simply because they’re making bad financial decisions.” -Michael 4:19
“There’s only 4 numbers that will cause your business to thrive or to die and that’s revenue, gross profit, net profit, and cash.” -Michael 5:41
“Most businesses in the US are made up of small businesses like ours, we are the backbone of the US economy.” -Michael 10:35
“Revenue is vanity, profit is sanity, but cash is king.” -Michael 13:46
“There’s no shame in that game—everybody started not understanding their finances.” -Michael 18:27
“Go hire a competent bookkeeper.” -Michael 19:24
“I was getting really resentful of the work, I wasn’t enjoying it.” -Michael 25:10
“Whether it’s relationship or business partnerships or clientele, sometimes you do have to kind of like burn the boats and start from scratch.” 27:30
“I got very clear with what I was unhappy about and then said well if this is not good, what does good look like?” -Michael 29:57