#150: Eradicating Entrepreneurial Poverty with Susanne Mariga, Certified Public Accountant
Poverty has been a major issue for centuries, and remains so in many parts of the world. But what about entrepreneurial poverty – when people lack the resources and skills to start a business? With poverty becoming increasingly intertwined with entrepreneurship, governments around the world are striving to discover new ways to help those affected by entrepreneurial poverty break out of it.
My guest for this episode is Susanne Mariga, Certified Public Accountant. She’s also a Fractional CFO and a high-net-worth tax strategist to seven and eight figure entrepreneurs, with a special goal to eradicate entrepreneurial poverty.
What is Entrepreneurial Poverty?
Entrepreneurial poverty can be defined as having limited or no access to capital, education, and knowledge; inadequate social networks; and an inability to obtain financing due to cultural biases or legal restrictions. It has become a major problem in developing countries where economic growth is hampered by a lack of investment in business and entrepreneurial initiatives.
The Effects of Entrepreneurial Poverty
Entrepreneurial poverty can lead to major economic issues such as high unemployment rates, stagnant wages, and an overall decrease in living standards. Not only does this mean that people are unable to start businesses but it also prevents them from gaining employment or launching small-scale enterprises which could lift them out of poverty.
Ways to Eradicate Entrepreneurial Poverty
Fortunately, there are ways the effects of entrepreneurial poverty can be reduced and eventually eradicated from the global landscape. Below we’ve listed some key strategies government and private entities should consider taking up:
• Investing in education and training programs for those affected by entrepreneurial poverty.
• Providing access to capital through micro-loans and other forms of financing.
• Improving the regulatory environment to make it easier for entrepreneurs to start businesses and obtain financing.
• Supporting small-scale enterprises by offering tax incentives, grants, and other forms of assistance.
• Working with NGOs to improve access to resources such as technology and mentorship programs.
• Introducing policies that promote entrepreneurship such as business incubators or regional investment funds.
key takeaways
Entrepreneurial poverty can have far-reaching effects on global economies if left unchecked. It’s time governments around the world took the necessary steps to eradicate this issue from the global landscape. By investing in education, providing access to capital, and supporting small-scale enterprises, we can create a better future for entrepreneurs everywhere.
The success of entrepreneurial poverty initiatives will be determined by how well governments and private entities work together to provide resources and guidance for those affected by it. With the right kind of support, those stuck in entrepreneurial poverty can break out of it and create a brighter future for themselves and their communities.
Listen to the Show:
Laura 00:08
Welcome to the Next Level Leap podcast. I'm your host Laura Meyer top growth strategist to some of the country's fastest growing brands, and mentor to consultants. My signature lead methodology has changed the way 1000s of companies look at growth strategy, and this podcast shares, best practices, and inspirational interviews to help you make that next level leap in your business. Stick around and join me as I share the journey of how we as founders can multiply our income impact and influence by landing on the other side of our next big leap. Let's go!
Laura 00:52
Hi, everybody, I want to introduce you to Susanne Mariga She is a really special person. She is not only a CPA, a fractional CFO, she's also a high-net-worth tax strategist to seven and eight figure entrepreneurs. But she's also so much more than that. She is an incredible person. I'm just so excited to share her journey with you some of her expertise, her experience, she is a best-selling book author, Susanne, welcome to the next level leap podcast.
Susanne 01:22
Hi, Laura. I am so excited to be here. Thanks for having me as a guest.
Laura 01:25
Yeah. So, there's so many really interesting topics that I'm excited to cover with you some of which we even started talking about a little bit before we started recording. I'm like, hold on, hold on. It's too good. Let me record. But just first and foremost, your mission, your personal mission, your business mission is to eradicate entrepreneurial poverty, and change family legacies, like what contributed to this being your life goal?
Susanne 01:51
You know, I grew up in a family of entrepreneurs. My dad actually had his own CPA firm when I was growing up. And, and, you know, my dad was amazing, you know, and he ran a really great accounting firm. But small business can be challenging. And although he was probably one of the best CPAs I ever met in my entire life, I mean, I trained under him, I he offered me my first job when I was 14. And it allowed me later on to when I got out of school to get into some of the best big four accounting firms in the world. Andersen was number one at a time and then KPMG. But one of the things that he never did was he never stepped into his worth. And so, you know, for years, he offered accounting services for like $200 a month. $200 a month for decades, I probably up until the point that he actually left his farm. And it had a repercussion, right, it had a percussion and that he worked very late at night. And, you know, we didn't get to play sport because we didn't have health insurance. And, and I will never, ever want another entrepreneur to go through that again. I mean, I saw my father work 12-hour days come home at 11 o'clock at night. And one of the smartest entrepreneurs I ever met one
of the smartest CPAs I've ever met, and just never get the rewards that he really deserved. And so, I am on a mission I am eradicating entrepreneur poverty,
Laura 03:19
Oh my gosh, what a powerful story. And for him to be a CPA and to work with money and to know the power of money, but to never really, as you said, step into his worth, why do you think that is?
Susanne 03:32
You know, I think as professionals, we're really good at what we do, right? I know, you deal a lot with the fractional world with cmo CFOs. And what our gift is we it comes easy to us. And so, we figure why does it not come easy to everybody else? And so, what happens is, you know, we see the world through the eyes of competition, we see the world as a scarce world where somebody can easily replace us and we don't see the value that we bring to the table. And as a result, we lowball our prices. So, see when we first starting out, right, because we're so excited to get a client, we just want momentum that we lowball our prices to accept everybody. And I did it. I did it starting out too.
Laura 04:17
Yeah, I want to. I'd love for you to share more about that. Like, what was your journey, then becoming a CPA and how does that tie back to your core mission?
Susanne 04:26
So, becoming a CPA is not an easy task at all. Like I imagine, you know, my dad, he was a bright CPA, he employed some very good tax strategy to cut costs. He hired me when I was 14, by the way, hiring your children is an amazing tax deduction. And who else is going to pay taxes at a 0% tax rate but your children so it's a great way to shift wealth that way, as well as save money on that business expense. But I started out working for my dad. And you know, I went into corporate I went into big four accounting and many, many years and then when I had my daughter, I said, you know, I'm going to start my own firm. I'm going to start my own firm. I'm not going to be a traveling mom going to New York going to Toronto every weekend, I am going to be a mom that is available for her kids. And I started my business, I started my accounting firm. And, you know, it was an interesting combination of experience. You know, I started, you know, at when I was at KPMG, I had a weird mix. I was a mixture of governmental clients as well as your big manufacturing clients like Komatsu. And apparently it was the right mix, because it allowed me to get government contracts when I started my own practice, and at the same time service, the small business community. So, I would say almost instantaneously, we blew up with some of the largest cities in the country, as well as some, some really nice portfolio of small business clients. And we ended up being Goldman Sachs
10,000, you know, we were featured in the Houston Business Journal, and you just end up doing some amazing things. So that's my journey with it.
Laura 06:04
Wow, that's so fascinating. And I know, you wrote your book, Profit First for Minority Business Enterprises. If you're watching the video, it's beautifully dispensed this plane behind Suzanne right now. What was the motivation behind that book? Like what drove you wanting to publish it?
Susanne 06:21
You know, I wanted to eradicate poverty. That's really what it is. And when I look at neighborhoods, you know, when I first started my career, I had the privilege of being able to move to Chicago. And you know, Atlanta was interesting, because as I was interviewing for, for Anderson in Chicago, I would ask my coworkers, I was like, where should I live? And you know, them being meaningful and wanting to help me they're like, oh, you got to move to like Linkin Park. But whatever you do, don't move to the south side of Chicago. Don't move to the south side. Don't move to the west side, whatever you do. And so of course, you know, not knowing I took my coworkers advice I moved to Linkin Park. And I always joke I said, everybody, like, look like Barbie and Ken and they all drove a Jetta. That's what I said. And I said to you that I one day I woke up, I said, you know, I just want to see the world for what it is. And so, I took a bus. And, and I said, you know, I'm just going to take a bus. I don't know anybody in this town anyway, and, and when I get off at the bus, and the bus doesn't go any further, I'm just going to take another bus. Yeah. And so I went on this adventure, and I took this bus downtown, and it stopped right around Michigan Avenue. And then I took another bus all the way down to the Southside of Chicago. And what I noticed is, once we cross, like the Roosevelt area, anybody that's familiar with Chicago, the world started to change. You lost that glitz and glammed those huge boutique stores. And you suddenly started to get into areas that didn't have a lot of retail, they didn't have nice windows, they didn't have, you know, great stores. And in fact, you start seeing a lot of carts that are being pushed, right? You started seeing more holes in the windows that were happening. And I asked myself, what makes one neighborhood look like this versus another, especially in the same city, right, where we're supposed to have the same economic opportunities. And what I realized was, it's the lack of jobs, it's the lack of jobs, the lack of industry, the lack of entrepreneurship. And I thought to myself, I was as I was, I was thinking about it was how do you change it, you create profitable businesses. And, and these businesses, what they do is they hire their neighbors, they hire their family members, and it trickles down, right? If my neighbor is a doctor, and she works for you, my child works for you. Now, my child says I can become a doctor, too. And that's the reason why I wrote that book, because I wanted to eradicate poverty in all neighborhoods.
Laura 08:51
That is such a powerful story. And I think we've all had that experience, right? I grew up in Boston, I went to school in downtown, where you start walking, and you're like, oh, gosh, you know, why are there boards in the windows? Why does this look different? But the way that you described it is so powerful? Because it's like you see it slowly happening? And then all of a sudden, you're in the neighborhood and you're like, oh, like, it would be so nice if there was the same type of retail environment available, or it'd be nice if, but it's hard to know what you do about it. Right? I think especially as a non-minority, you're looking at it, you're like, I want to help, but where do I start? And what do I do? And I think for what you've done, and just casting that vision, in itself is so powerful, and I just want to congratulate you on that. That's, that's amazing. So you went on to write the book. I see it everywhere you do a beautiful job marketing it, it's, it's, you know, I recommend that everybody picks it up. It's Profit First for minority business enterprises. And so, before we before we started recording, we were talking a lot about your CPA firm. And you and I are similar. We're, you know, higher end server As providers, we have a passion for working with people one on one. And you recently divested your console really your CPA firm. So tell me a little bit about, first of all, what made that attractive to somebody? Like what are some of the characteristics that make a professional service firm, interesting. To a potential buyer, I think that a lot of people listening would probably like that would be their dream outcome for their business. So I'm curious to hear.
Susanne 10:24
So I always tell people that you want to sell your business, when you're absolutely in love with your business, when you go to work every single day, and you love the people that you work with. You love the clients that you work with, that's the business that you want to sell, because you want that buyer, their biggest competitor is going to be you. When they're betting. Okay, that's, that's what you want. And, and, you know, I've owned that CPA for over 15 years. It was like I said, amazing, amazing in terms of like, the contracts, we've got the work, we were one of those firms that never lost a client. Okay. That's just the type of work that we did. And, and really, you know, and it didn't start out that way. Right? It's it started out like many, like I talked about, I lived in entrepreneurial poverty. You know, I had, I talked about in my book, where I had erasers where I was like, literally erasing staff people's work and redoing it at like, 11 o'clock at night, I started praying that that was my reality. And you know, and I started, I would sit in these board meetings, and they would be talking about how amazing my staff person was, and I want to just roll my eyes like, work.
Susanne 11:34
But that's where we started from, but it was learning the lessons, it was learning the lessons about having those crucial conversations where when things aren't right, starting to look at the, the staff person and go, hey, I see a problem, you know, I might lead you in the middle of busy season for having this conversation. Because the stakes are high, you've got a lot of pride. But I see a problem. We can't let this continue. And it's having those critical conversations when
you don't want to have them because those are the things that change your game. It was implementing hiring practice, you know, like, you know, you can't hire those family members that are like, hey, Susanne, can you hook out your brother here? No, no, no, no, you hire for not just aptitude. But do they even have the skill set? Are they proven? Did they get the degree, and if it's a position that is very technical, a lot of problem solving, giving them a task of sample problem solving, and so that you can see how they think how they work, because that's going to make your job a lot easier, it was disc profiling, our candidates like what's their personality are you high C Are you high D are you going to get the work done quickly, this are you going to be like bogged down into details. And so it was really, really honing up those HR skills. But really, I think that what makes a business sell really well is one, you know, besides loving your business, creating a business that can operate without you, I remember it was like the beginning of tax season. And I told my staff, I'll see you guys next year, I am heading for Paris, I'll send you guys pictures, you guys take care of things. And but that's the environment that you want to have. Because the more that your company can operate without you, the higher the it's the price is going to command, okay. And our practice did end up selling at a premium.
Susanne 13:20
Now, the other thing that I would say that really helped our practice too, is the relationships with the clients, you want client relationships that stay, they the person that's buying your firm doesn't want to have to reinvent your firm every single year. You know, they, they want to say like, okay, you've had this client for like 15 years, they're probably not going to leave me once you leave, right. And so creating those ongoing client relationships, I think that's a little bit easier and accounting firm, because you can just keep building as you go with that. And so that makes it a little bit easier, you know, automating the bill, you know, put people on auto Bell, nobody wants to be chasing collections every single month, nobody wants to be work, or waiting 30 days, 90 days, put them on auto bill. And again, all those things, make your firm sell at a premium. And it was interesting, because when I put the firm up for sell, I was actually kind of wavering, you know, I was starting to have those second thoughts. I was like, Maybe I don't really want to do this. I had had gotten a call. Probably I had met this broker probably like four years ago before COVID was even thought about. And he had asked me if I was thinking about selling and I was like, Oh no, I found this thing called profit first. I really love it. But I'm still building it. But you know, it's okay. But you know, check back with me. And every year he would ask me, Hey, Suzanne, how's the accounting firm going? And then well, when was the last summer he called me? He goes so, you know, I just go to my yearly checkup that said, I was like, Well, you know, this might be the year I think I'm ready to go full force and to my fractional CFO work and my profit first implementation because I really want to make an impact in the world. And it was interesting because we ended up getting four offers in two weeks. It's after the day that we listed it. Wow. Which is, you know, pretty unheard of, really for it. So it was it was a very interesting dynamic. But definitely you want to sell your brand, when you're
absolutely in love with it when you can't walk away from every offer, and be absolutely okay with it.
Laura 15:16
Oh my gosh, there's so much gold in there. So I want to share and just reflect what I'm hearing from you to really, for everybody who's listening to really make sure that you've heard Suzanne, in all of her genius. So the first thing is, is team, right? Instead going, going, being very particular about team and I think as leaders, I don't know about you, Suzanne, I really struggle with this, because I want to be a kind, compassionate person, I want to be an understanding boss, I want to, you know, help people grow and not necessarily be critical of them. And at the same time, and I'm naturally not a critical person. And I don't like operating that way, right. But we but we have to flip that script to this is we're here to do world class work. And I have to tell you, even this week, it was so hard. We were we had onboarded, an operations leader, she was way behind on our projects and her scope. I sent her I had a conversation with her and then sent her a follow up video just two days ago of what was in Asana versus what was done and she quit on the spot. And I was thinking after 20 years, you know, you think that you read these situations, right? But it was so powerful, because I don't think the ME 10 years ago would have done that would have pushed on it when I really needed her to stay because we have a lot going on. So it's just so good to hear you say that that those are the building blocks to getting to where you want to be in your business. And all of the elements of like doing really great work, hiring great people being committed to quality, the recurring revenue business, I think a lot of people think that recurring revenue can only happen in like online memberships, you know, $29 a month memberships, like professional services firms can be recurring billing, you know, and give you recurring revenue, there's so there's so much that you've done so well. So congratulations on that.
Susanne 15:16
Thank you. And of course having a profitable firm, right? Nobody wants to buy a firm, that's not profitable, right? Because if you got negative profit at the end of the day, what's the valuation on that other than the assets? Zero? So you definitely want to have a profitable firm, too.
Laura 17:23
Yeah. And I want you to, I'd love for you to share to the personal side of this. Like, what, what made you just internally because there's external factors, right, like having a great firm and firm structure and all of the elements of a healthy company, but there's an internal journey of when we're ready to sell something that we gave birth to, it's almost like a child, right? What made you feel as though it was the right time?
Susanne 17:49
So for me, it was a calling, you know, I felt like I was meant to do more. But being in the being in that the affirm that's very compliance base, where at the end of the day, I signed 100% of the returns, okay, because I am America, the America CPA, and, and I don't let returns go out the door that are not of quality, and it's just who I am, you know, it just, it just, it's just who I am. And I knew that that was blocking the blessing for where I want to go. And so, you know, for me, it was sometimes you have to release the things that that you like to do the things that you love. And for me that was focusing more on the boutique side, that one on one relationship, focusing on really helping businesses implement Profit First, on a deeper level versus just making sure that the tax returns get processed and out the door.
Laura 18:46
So what are you working on these days? Like what so you've sold? You've divested the company, but you're still with it as part of the transition, which is very typical. When you are in the process of a transition time. What are some of the other things that you're working towards right now?
Susanne 19:01
So right now, I am helping small businesses grow you know, we specialize and tax strategy for the seven eight figure entrepreneur. So it's, it's an interesting combination of fractional CFO services, epilating profit burrs, but also a tax strategy, because a lot of times people when they think about taxes, you know, I was talking to a client and her CPA told her to go out and buy a truck. And first of all, she couldn't afford a truck and the reason why I told her to it is so that she could get her back right off, right. And the bad thing was she couldn't even use a truck. She already had a car that she absolutely loved. And now she was stuck with $1,000 truck payment every single Yes, and the bad thing was she ran at a loss before she came the profit for her so she didn't even need a deduction, because we're talking about like loss carry boards, right? And I love what I do, because it really is holistic. It's about building people's net worth through the use of tax strategy. So like where a lot of accountants will tell you go out and buy that They go a Hummer, you know, because it's over 6000 pounds, right? And they can get that, that that nice bonus depreciation or 25,000. I write out I'm like, you don't need a Hummer. Don't get a Hummer, right? Instead, let's look at, let's look at your strategy. Let's look at what you're trying to accomplish in the next five to 10 years. And for a lot of us right now, during the Great resignation, which is still happening, which is stopping the rest of the recession from happening is longevity, right? It's hard to get quality employees.
Susanne 20:28
And so the ones that we get, we want to hold on to them, and we want to hold on to them for a long time. And, and so what I'll say is, okay, so you want to create longevity, let's create a business that they can't pass on. And one of the things that big companies offer, right, is that 401 K plan. And, and people are really small businesses tend to shy away from it. But I'm like,
you know, you doesn't have to be a regular Safe Harbor 401 K plan? No, you could have it so that it takes time to vet where your employees are rewarded, based upon the amount of time that they're with you. So instead of vesting immediately, maybe we'll say it's going to vest over six years. And so they leave you after 90 days, or like, after like a year or two years, they forfeit all their contributions that they've that you've given them if they aren't fully vested in those. And so in the meantime, you've got a tax write off all these years with it for making that contribution. But they've worked it actually taking it with them. And so what happens, it stays in the trust, it stays in a 401 K trust. And if you're the last one standing, right, it means that it goes to you, it's allocated to you as part of your retirement, like you've gotten deductions, you've gotten, like $60,000 in deductions every year, because you're maxing out your 401 K, your profit share. So like, that's just one of the things that we do. We talked about the hiring your children, you know, if your children are paid less than a standard deduction, right there, and the 0% tax rate, which by the way is fabulous. So now your children can take you to Disney World, right? Which is really great. And then you know, let's say, Disney World, it's fine, and there's still money left over, you can say, Okay, I'm going to have you invest it in your Roth IRA, which, by the way is after tax, which happens to be zero for them, right? And so they can invest in that Roth IRA. And in the meantime, you know, they can use that money for when they go to college, if they ended up being like an amazing sports star. And they, they're like, Mom, thanks. But no, thanks. You know, now they've got their down payment for their first house, if they end up going to the NBA, and there's still like things in their banks, then now they have money for when they retire. So again, you're shifting that wealth from generation to generation and also you're doing it in a tax free manner.
Laura 22:38
Ah, that is so good. I love hearing the passion in your voice with this. It's obviously you're gifting and it's just fascinating to hear you talk about your journey and your experience and what you love to do and how you're serving your clients right now. So if people are interested in learning more about you they're like oh my gosh, you need Susannah my life where can they find you to go to find you?
Susanne 22:58
So the best way to reach me as we have a free profit first masterclass, if you go ahead and find me on LinkedIn, the best way is to remember Margia so last name because everyone mixes up the Suzanne but Mariga, Suzanne Maria, you can find the link there to attend the masterclass and it's absolutely free. It's nine days and we teach you all about profit verse.
Laura 23:22
Wow, that sounds awesome. All right. So look up Susanne, on LinkedIn, it's Mariga, Ma, R, IgA, and Susanne, thank you so much for being here and sharing your wisdom. Congratulations on the sale of your business and many blessings and all your next steps.
Susanne 23:36
Thank you, Laura for having me.
Laura 23:37
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Welcome to the Next Level Leap Podcast! Join our guide, Laura Meyer, a 20-year entrepreneur and growth strategist for some of the country's fastest-growing nonprofit and for-profit organizations, as she shares her insights and strategies for using marketing to make a difference in the world. In each episode, we explore how marketing can create a ripple effect of change that impacts lives and communities for years to come. From social media to branding to storytelling, we cover a range of topics to help you harness the power of marketing for good. So if you're ready to make waves and spread joy, tune in to the Next Level Leap Podcast podcast and let's create a marketing ripple effect that changes the world!