Profit and Purpose

[00:00:00] Calan Breckon: Today’s episode is sponsored by make.com, the Automation and development platform that helps you harness the full power of AI. I’ve been using make because it’s hands down the easiest way to automate the boring, repetitive tasks in my business without needing to know how to code or over complicate things. Make uses a super simple drag and drop visual builder which lets me connect all the different apps that I use to create workflows and saves me so much time. Honestly, it feels like having a virtual assistant running in the background 24/7.

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Welcome to the Business Gay Podcast where we talk about all things business, marketing and entrepreneurship. I’m your host Calan Breckon and on today’s episode I have Brian Thompson. Brian is the founder and Financial Planner of Brian Thompson Financial LLC where he helps LGBTQ+ and mission driven entrepreneurs build programs profitable businesses that reflect who they are and support the impact they want to make. As a financial advisor, business strategist and host of the Mission Driven Business podcast, Brian works with service-based founders who are building more than just a business. They’re building movements, communities and legacies. He’s helping them bring clarity and structure to their finances so that they can grow with confidence and stay rooted in their purpose. Before launching his first firm, Brian spent nearly a decade as a tax attorney. That background, paired with his own entrepreneurial experience, informs a planning approach that’s inclusive, strategic and grounded in real life. As a black queer financial advisor, Brian is especially passionate about creating space for diverse voices in business and finance and showing that profit and purpose don’t have to be mutually exclusive. I’m excited to chat about profit and purpose today with Brian, so let’s jump in.

Hey Brian, welcome to the podcast. I’m so happy to have you.

[00:02:21] Brian Thompson: How are you doing?

I’m great. I’m excited to talk with you. Like I said, I I’ve heard a couple of your podcast recordings. I love your vibe, I love your energy. So I’m excited to see where our conversation goes today.

[00:02:30] Calan Breckon: Awesome. Well, thank you. I’m Very excited to jump in today. Finances is a very important topic, especially in our community. I find a lot of people weren’t educated or didn’t have the opportunities that maybe are, you know, heterosexual counterparts get specifically in finance. So it’s, it’s a great conversation to be having. So I want to start off here.

You often talk about like, purpose and profit kind of going hand in hand. Why do you think so many entrepreneurs still believe that they have to choose one over the other?

[00:03:04] Brian Thompson: No, I think it’s just part of the dynamic and the stigma of being an entrepreneur. Right. That you feel like you have to have things a certain way or be a certain person or do things a certain way to succeed.

And because all of the other models that you’ve seen succeed maybe look different from you or aren’t in your area of expertise. So the thing that I try to instill in my entrepreneurs right from the start is you get to build whatever you want and that entails doing the work around what it is you want to build. So we spend a lot of time with mission, vision and values of, to figure out where we’re going and what you want to build and then go from there. And then it’s usually linking. You know, people want fulfillment, people want to have an impact, but also people want a good life. And that’s been the foundation of most of my approach that you can have both, both are, are actually true at the same time.

[00:03:54] Calan Breckon: Right. I do find like that there’s, there’s many experiences I’ve had with entrepreneurs, especially in the queer community, about valuing themselves and that, that kind of trickles over to the valuing for like how, what dollar amount they put on their services.

And then also within that mix is also being like, well, I want to help people.

And it’s hard for me to limit that access to that help for people who can’t afford my prices. And so I’m sure there’s lots of that that also goes into that navigating, like having that purpose and that profit and mixing those together at the right level.

[00:04:28] Brian Thompson: Yeah. And I feel like that still goes back to the impact that you want to have. The people that you want to serve, getting clear on that and then figuring out how you do that. Maybe it’s not one on one services. Maybe you have a tier of one on one services for people that can afford that and you provide a podcast or you provide a group coaching, or you provide something else that still has the impact that you want, but that doesn’t cost as much. Right?

[00:04:49] Calan Breckon: Yeah.

[00:04:49] Brian Thompson: Again, you get to build whatever you want. So it’s really just figuring out how you want to get there.

[00:04:54] Calan Breckon: Yeah, for sure. And you work mostly kind of within the lgbtq, kind of mission driven founders area.

How does identifying, like, you know, financial planning challenges the way someone approaches building their business?

[00:05:10] Brian Thompson: Oh, I think in multiple ways. Obviously, this is the niche that I wanted to serve. I wanted to make sure that our community was able to succeed and thrive in a world that feels very chaotic and uncertain and sometimes dangerous to know that you can still build whatever you want, you can still have the life that you want.

So I specifically wanted to focus on LGBTQ entrepreneurs because that’s who I want to help succeed. That’s a part of my mission, my vision, and my values.

And I think that having that approach, making it clear that this is who I serve and that I’m a safe space for these types of entrepreneurs, helps them feel comfortable to know that they can be themselves and they can focus on what they want to do, what they want to build this specific value that they’re going to bring to the world rather than trying to navigate that dynamic that I imagine you and I both know very well of. Like, am I safe in this situation? Can I be myself? Can I talk about certain things? They know coming to me that all of that stuff is. Is out the window. Right. They can look on. Look at my Instagram and see my husband, and they can see me on the beach, and they can see me doing gay things and feel comfortable knowing that they can be themselves around me. And the thing that I try to instill also in everyone is that your identity, who you are, is a benefit. It’s not a detriment. So being able to live fully as yourself and bring fully whatever you want to bring to the table is only going to benefit your business. And hiding it is going to. It’s really going to have the opposite effect.

[00:06:34] Calan Breckon: Definitely. And how do you usually advise folks when they are trying to kind of like, set those prices of the value to align with everything? What do you usually do to help set those people up for success?

[00:06:47] Brian Thompson: Success?

I start with something simple like figure out what you want to charge people and then increase that amount 25%. Because we also, we always undervalue ourselves. And the undervaluing ourselves comes from our own internal stuff. It’s not from the outside. It’s. People will pay what they think is valuable. And depending on how many seats on the bus you have, you will find somebody that will pay what you’re worth.

What really needs to happen is you need to convince yourself that you’re worth it. And especially in the LGBTQ community, we’re so used to feeling like we’re less than or that we don’t belong or that we have to do certain things to belong and be valued in the community, which is why so many of us are successful. Right? We’ve been driven to be this golden person in other people’s eyes when we are lovable as we are. And that’s what I also try to instill, that you are valuable and you are lovable as you are and for the value that you bring to the world.

So charge what you need to charge and make sure that you are charging what you need to charge. But everybody. Everybody undercharges. And I guess that’s the other thing, is that you know that everybody does the same thing, so you’re not alone and know that you need to increase your prices. So. And 25% is like an arbitrary number, right? It’s. Increase it. If you only feel comfortable going to 10%, do that. But it needs to be more than what you think it is.

[00:08:06] Calan Breckon: Yeah, definitely. And I also think that sometimes, like, especially if somebody’s not had, like, a, like, quote unquote corporate job or they’ve had, like, a certain price. Price attached to them, they don’t really know necessarily where that arbitrary number is going to sit. And then if they have that experience, they come at it being like, like, I know many successful entrepreneurs who came from corporate first, and they already had a number that they knew they were worth. And so they’re like, well, I already resonate at this number energetically. So it was easier for them to ask for that because they’re like, I know I can get that elsewhere. But entrepreneurs who didn’t have that background, I find that they struggle a little bit more if they came from, like, an hourly wage kind of a place, because they’re like, oh, well, I only made, like, 15, 20, 25, $30 an hour here. How can I ask somebody for, like, a hundred dollars an hour doing this thing over here? Right? It’s that, yeah, that energetic balance you play in, for sure.

[00:08:56] Brian Thompson: And I think there’s another way to do it. Right. If you don’t feel like you have a sense, obviously you can do some research and do some market research on what people are charging your area. But I also take it from the approach of, what do you want? What kind of life do you want to live? How much money do you want? And if you know how much money you want or how much money you want to have, then we figure out what that is and go backwards. And so knowing that I need $100,000 a year and divide that by 30 clients, you know that you need $3,300 a month from each client or $3,300 a year from each client. So being able to sort of like figure it out from the back end, I also think works.

[00:09:30] Calan Breckon: Yeah, that’s, that’s actually a very good, a good plan. Speaking of cash flow, cash flow is a really big pain point for like a lot of service based founders. What are some simple ways to create a cash flow plan that like supports both of their financial needs but also their missions.

[00:09:47] Brian Thompson: So the thing that I go to, the thing that I lean on is called profit first. And it’s the profit first model where you are doing percentages of what you have, the income that you have, and splitting that into different buckets so you have everything come into an income bucket and then you split that between profit Owners pay taxes and operating expenses. And in that specific order. Right. You’re doing profit first because profit, we want to make sure every business is profitable. Then you’re doing owners pay because we want to make sure that you’re getting paid. Because if you don’t exist, you’re not comfortable, you’re not going to be able to serve everybody else. Obviously you got to pay your taxes. I know taxes are different between us and Canada, but we still pay a lot of taxes here. I know you all pay a lot more, but we want to make sure that those are paid and that you have enough money for that situation as well. And then whatever is leftovers for operating expenses, making sure that you have enough to use for whatever is left for the business and making sure that you can keep that amount really focused on essential expenses.

And having just knowing a certain specific amount of money is in that bucket allows you to make better decisions with your expenses.

[00:10:56] Calan Breckon: Yeah, it sounds like just sitting down and making the plan in the first place is the first step and that most people don’t even take that. They’re just like, I’m just going to go and charge money. And it’s like, okay, but do you know how much based upon all of these factors?

So that’s a good starting place.

[00:11:12] Brian Thompson: I mean, I, I found really that people are really good at what they do. Right. People are good at the tasks that are the service that they’re providing, but they don’t really have a good business sense. And that’s where I come in, is helping them say all Right. So what is the business, what is going to be the business fundamentals that you need to learn and that you need to know?

Um, before we then move on to you, focusing on what you do best. So we take them through the fundamentals. We have a discovery phase where we talk about where you are, the assets that you have now and then where you want to be and making sure that you have a good sense of how to get from one place to the other.

[00:11:45] Calan Breckon: Yeah, definitely, for sure. You mentioned taxes there for like a hot second. And I know that you’ve both been a tax attorney and a business owner and so what are maybe some lessons that you’ve learned or that like maybe from your legal background, like expertise that you can share with that most entrepreneurs overlook but they really shouldn’t.

[00:12:08] Brian Thompson: That taxes are very different for entrepreneurs than they are for people who are working for W2 people. Right. So needing to understand the tax system and how it works is essential for owning a business because there are a lot of business owners, especially that first or second year that they don’t realize how much they owe in taxes and come from a deficit. Yeah, I see, see the nod in your face. So you, you’ve experienced this, right?

[00:12:30] Calan Breckon: My, my first mentor was a, is, is a bookkeeper and like she is a tax specialist and like I would have been under multiple years in a row if she had not been there. She saved me thousands of just like understanding things and like, yes, lifesaver.

[00:12:47] Brian Thompson: Life, Lifesaver. Tax people are worth their weight in gold if you, especially if you found a good one. And so I think that’s also just a part of the process of making sure that you understand the business side of things rather than just what you do best and how to market that service.

[00:13:03] Calan Breckon: Yeah, definitely, for sure.

Burnout is quite popular.

[00:13:08] Brian Thompson: It’s quite popular.

People love it.

[00:13:12] Calan Breckon: Quite popular these days and like a really common challenge in mission driven founders specifically. Like I know so many people who are doing such good work but like, honestly they get so burnt out.

How can business owners like maybe design a better business model for themselves that supports their well being but also is a model that supports the bottom line?

[00:13:32] Brian Thompson: Yeah, I love this question because I think it goes back to what we talked about before that you get to build whatever you want.

So you have to determine what for you, a good balanced lifestyle looks like. For me, that’s going to the gym every day. I have an hour or two in the middle of the day every day that I go to the gym, whether it’s a Monday or Whether it’s a Saturday.

And to me that helps prevent me from getting burned out because I’m spending time doing what I love and I’m doing stuff that is for my own self care. So making sure that you have a good balance of how this business can support you. As mission driven entrepreneurs, we want to support and help other people and we want to make sure that they have the best lives. But we also have to take care of ourselves because if we’re not taking care of ourselves and building a business that is sustainable for us, we’re not going to be around, we’re going to be burnout. And that’s not going to help anyone.

[00:14:24] Calan Breckon: Yeah, no, it’s not going to help anybody for sure.

[00:14:27] Brian Thompson: Exactly.

[00:14:30] Calan Breckon: I want to kind of get wrapping things up here. What role does long term financial planning play in making sure that values based businesses lead with their values and can continue to grow and have that impact over the years to come?

[00:14:47] Brian Thompson: Yeah, for sure. And I think it is about balance, balancing what it is you want and need now, like the immediate things, immediate concerns with what you want, need in the future, where you want to go. And so making sure that you have a good sense of where you are now, the things that you need for right now, and making sure that you have a good sense of how you’re going to get to where you want to go and then taking the next right step. And to me that’s the importance of long term vision planning is that you have to know where you’re going. Right. There are a lot of people who let the business become whatever it becomes without any sort of intention or focus and that always leads them to the wrong place. You’re not going to be fulfilled if you’re living somebody else’s dream or you’re building a business in a way that doesn’t feel aligned with you.

This allows you to make sure that you are going the right direction. And the analogy was having the ladder against the right wall, right. If you got to be climbing the right wall, if you, you are climbing up and if you get to the top and realize you’re on the wrong wall, you’ve done it all wrong.

[00:15:44] Calan Breckon: 100%. Clarity is king when it comes to like entrepreneurship for sure.

[00:15:51] Brian Thompson: And that will change, right? I don’t think it always stays the same. And so that’s the other important part about this process, is that never nothing needs to be set in stone, Nothing is unchangeable. You can go in a certain direction, realize, oh, this is not what I wanted and change your mind.

It seems like a lot of people that I, I come in contact with or that help that they have a sense of like, oh, I. If I’m. This is going to be the final decision. If I don’t want to make the wrong decision, so they don’t make any decision.

And that’s, that’s not how this works and that’s not how life works.

[00:16:22] Calan Breckon: Right.

[00:16:22] Brian Thompson: There’s no certainty.

[00:16:23] Calan Breckon: Yeah. Make a decision and figure it out.

[00:16:26] Brian Thompson: Make a decision and figure it out. That should be, that should be my new catchphrase. Make a decision and figure it out.

[00:16:31] Calan Breckon: Right. Because any decision is better than no decision decision at the end.

Yeah.

[00:16:35] Brian Thompson: Yeah. Especially if you feel like it’s getting you closer to where you want to be. And if that decision is not getting you closer and where you want to be, then change your mind, go a different direction.

[00:16:43] Calan Breckon: Definitely. Definitely. But at the end of the day, one of the most important parts of entrepreneurship is being able to afford to be an entrepreneur for sure. Getting your finances together and making a plan around those finances. So very grateful to have people like yourselves who are around to help other people who finances is not their expertise or their strong suit. Get it together and make a plan. Plan.

[00:17:03] Brian Thompson: Yeah. I’m grateful to get to do that. I, I feel so lucky to be able to, to help entrepreneurs build something that is both impactful and purposeful, but also allows them to have the life that they want. I get to see so many people build amazing, amazing things and have amazing impact in the world and you know, that’s, that’s fulfilling my mission, vision and values.

[00:17:21] Calan Breckon: And I love to see it magical. I love it. Where can folks connect with you? Learn more.

[00:17:27] Brian Thompson: My website is BT Financial and so you can find me [email protected] I also have a podcast, Mission Driven Business. And so that’s where I provide stories from other entrepreneurs about how they succeeded in building their mission driven business. And I think it’s important for other people to see other people like them and see people in their situation so that they can also know that they can do it too. So those are the two main places I feel like you should come find me. Oh, I’m also on Instagram, so if you want see both personal and business stuff for me, I just got married a couple weeks ago, so you can see all my wedding pics.

You can find me there.

[00:18:01] Calan Breckon: Ah, congratulations. That’s amazing. I’ll make sure to include all of those links in the show notes for people to connect with you. Brian, this has been absolutely lovely. Thank you so much for coming on the show and sharing your expertise.

[00:18:13] Brian Thompson: It’s a pleasure to talk with you. I had a really good time. Perfect.

[00:18:15] Calan Breckon: Have a great one.

Thanks for tuning in today. Don’t forget to hit that subscribe button. And if you really enjoyed today’s episode, I would love a star rating from you. The Business Gay Podcast is written, produced and edited by me, Calan Breckon. That’s it for today. Peace, love, rainbows.