JULY 16, 2024

Welcome to The Tilt, a twice-weekly newsletter for content entrepreneurs.

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Get in the Finance Game

Unless your content tilt is finance, you likely aren’t eager to take on the bookkeeping and related activities in your content business. But unless you have some great startup funding, you must be the finance person in your business.

Frankly, as the owner of your business, understanding its finances is a necessity whether you end up hiring a professional or not.

“I have seen many entrepreneurs over the years lose their businesses due to lacking financial systems and basic knowledge,” says Jose Berlanga, entrepreneur and author of ​The Business of Home Building​.

Mountain climber and entrepreneur ​Erik Severinghaus​ says, “Embarking on a startup journey is like scaling a mountain: with the right financial systems in place, every step forward brings you closer to the peak of success.”

The first step? It’s opening a business bank account so you don’t mix personal and business money, says Erik, who founded and leads ​Bloomfilter​, a data-mining software company.

Finance content entrepreneur Joe DiSanto, founder and CEO at ​Play Louder​, says you also should track expenses. “You need to do this because you need to make data-based decisions in an ongoing way to optimize your business,” he says.

Jose agrees. “The No. 1 recommendation I give all new entrepreneurs is to not procrastinate on setting up your financial systems even if they are not sophisticated,” he says. “The trick is to get financially organized from day one and not let this area of the business drag you down later on.”

You also should decide if you’ll operate under cash or accrual accounting, Eric says.

Cash accounting tracks the money only when it comes in and goes out. In contrast, accrual accounting records transactions at the time they happen, even if no cash has moved yet.

No matter which system you select, tracking your financial data will help you answer questions, such as: What is the gross profit of a product? What product sells the most? Which services are the most profitable? What does it cost to produce the produce? What expenses are variable or fixed? What’s the break-even point?

Bookkeeping also allows you to invoice clients (accounts receivable), keep track of who has paid, and keep track of people who owe you (accounts payable).

Shawn says entrepreneurs should set up a system that lets them send invoices quickly–right after they sell or finish providing the product or service. “Ensure it is detailed, explaining what was given, payment terms, and your contact information. This helps you get money quicker but also shows professionalism in business connections,” he says.

Bookkeeping software is likely the early choice of most entrepreneurs. Experts interviewed frequently mention ​Quickbooks​ (starting at $30 a month without a discount code). Joe says ​Quicken Home and Business​ ($10.99 a month) might have sufficient capabilities to track personal and business finances initially.

But don’t just follow the software’s advice. Think critically. “I have a love-hate relationship with Quickbooks Online,” says small business operations consultant ​Sarah McNamara​. “It’s a great product with wonderful functionality for small business owners. It also makes suggestions that aren’t always good to follow.”

Sarah says she frequently cleans up messy books. “This often happens when small business owners try to use accounting software without fully understanding how it works or when they delegate it to a bookkeeper without understanding how to oversee the work being done,” she says.

While you can set yourself up to handle your finances at the start, consider hiring a bookkeeper as business gets busier, Joe says.

Later, you may consider a CPA or fractional CFO who can handle the books and help you make better business decisions.

​​Shawn Carpenter​, founder and CEO of ​StockAlarm​, a stock alerts app, says don’t forget to compare your bank statements with your accounting records frequently so you can find mistakes quickly and understand your money situation.

“Learning to manage money well as a new business owner needs time and effort. Making good processes, staying organized, and knowing when you need help can make a strong base for company success,” Shawn says.

-Ann Gynn

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Entrepreneurs: Adam King, Alan Morrison, and Rowan Bettjeman

Biz: ​Viva La Dirt League​​

Tilt: Gaming culture humor

Scene: ​YouTube​ (6.5M), ​Patreon​, ​Facebook​ (5.9M), ​Instagram​ (760K), ​X​ (62.4K), ​Twitch​ (2.1K)

Snack Bites:

• Alan and Rowan founded the channel in 2011 as a parody music group. When Adam joined in 2015, the group switched its focus to sketches about gaming culture.
• The New Zealand comedy group overcame geographical isolation and a lack of filming resources to gain a global following.
• The channel has become a full-time operation, with nearly a dozen actors and dozens of crew members developing videos. They shoot four months of the year and use the other eight to prepare scripts and produce the final videos.

Why We Stan: Viva La Dirt League embraced a tilt that combined gaming and comedy. It built a $4M studio with fan support, though it still relies on New Zealand locales for some videos.

-Ann Gynn

​​Read the story of Viva La Dirt League.​​

Know a content creator who’s going full tilt? DM us. Or email ​[email protected]​.

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• ​​Your Newsletter Is Too Important​ (Content Inc.)
• ​​Is the Influencer Economy Beginning to Crack?​ (This Old Marketing)
• ​​Books You Can Create Using Your Existing Content​ (Publish & Prosper)
• Join us at 12 p.m. Tuesday for ​Tilt Your Business: A Weekly Mastermind for Content Entrepreneurs​.
• We will be selling the CEX digital pass for just two more weeks. Instant access to over 40+ sessions to view at your leisure. Use code DIGITAL to save $95. ​Be sure to buy your pass today!​

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