Some would have you believe that because pizza and donuts share the same primary ingredients, flour and water. They must be the same thing!? However, business is more like art. Standing in front of the Mona Lisa, one can say that it is no different than a child’s drawing, after all they share two ingredients. A surface and a medium applied to that surface. We know, before being taught that there is something profoundly different in the two surfaces and the mediums used. Business is art and it is all in the mixing of the ingredients and the mediums.
Business is much more difficult than art. In art you have a handful of primary colors to work with that can be mixed in infinite ways. In business you have ideas, mixed with the laws of the universe and eventually the laws of the country the business is being built. At the same time, someone is trying to convince your potential customers that their art is better.
Financial Gravity Companies, Inc (OTCQB: FGCO) is art at the highest level. But, first a better understanding of “how we got here” story. All of the following can be found in our multiple websites (www.financialgravity.com, www.johnpollockinc.com, www.lowertaxhigherprofit.com, www.financialgravitypartner.com) hundreds of videos and audio on YouTube (https://www.youtube.com/watch?v=SJgWli-5wV0&t=2s), and dozens of episodes of the Financial Gravity Podcast (https://www.stitcher.com/podcast/financial-gravity-with-john-pollock).
Financial Gravity Companies, Inc. is a Fractional Family Office®. Our stated goal (it’s in our logo) is to lower the taxes people pay, legally. To increase their profit by taking the savings and deploying it better, which leads to greater wealth.
To help our clients, it is required for us to get some licenses. One license is an RIA license or a Series 65. This allows us to give financial advice as a fiduciary, something we would not be able to do without the license, but the business model is not about the required licenses.
The financial services industry is profoundly broken. It no longer serves the best interest of it’s clients, it seeks to create a transaction, sell a strategy or sell a product. It serves those three goals. Occasionally people are better off being sold something, but the end does not justify the means and is rarely the salespersons’ goal. In other words, most financial advisors are financial sales people. The consumer is forced to navigate a staggering array of products and strategies and figure out what best serves their needs, for now, later and the future, all while trying to navigate their own life and industries. But, the people they seek advice from are not looking out for them. The advisor has the same problem as the consumer, the same dizzying array of stuff to sell so they are forced to simplify their own sales model, typically to selling one thing. As Abraham Maslow said in 1966, “I suppose it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail. (google Financial Gravity and the BBQ Analogy for more)
This leads to what is widely considered the most trusted advisor, the accountant. Small businesses need two things from their accountant. Lower personal income taxes (using legal methods available) and numbers that help them run their business. The majority of the cases, the CPA (Certified Public Accountant) provides neither. In fact, the CPA test has virtually nothing related to helping an individual lower their personal taxes, it is an accounting designation (The ‘A’ in CPA). It is a historian for numbers, with very specific rules as to how the history can be recorded, some of those rules are known as Generally Accepted Accounting Principles (GAAP).
What exactly is an accountant? Is it anyone with CPA behind their name? Is a bookkeeper an accountant? In Texas, our corporate offices home state, a person with a Masters degree in accounting cannot say they are an “accountant” unless they are a CPA. An accountant is anyone that does audits, compilations or provides a balance sheet and/or a profit and loss statement. Financial Gravity does none of those things, therefore we are not an accounting firm and we do not hold ourselves out as an accounting firm, we do have over 500 CPA’s, EA’s and other tax professionals in our network.
The problem remains, small business owners need lower taxes and numbers that help them run their business. The P/L and B. S. may be important to bankers, accountants and analysts, and they have their place, but the guy that runs a widget factory and wants to buy a new widget making machine doesn’t understand or know how to solve the problem of whether he should buy the machine with these traditional, outdated and slow accounting tools. We are changing that.
Now that the problems of both the financial services industry and the accounting industry are identified, the question remains. How can they be solved?
The Fractional Family Office® solves these problems, and the business model and tools we use to solve the above problems exist nowhere outside of Financial Gravity. Hints of what we are working on exist within our dozens of press releases. I can explain our process in an analogy which is widely available in the places I have already mentioned.
Think of financial services as “furniture”. The 401k is a cloth couch. The mutual fund is hand made chair, etc. Currently, the financial advisor is a furniture sales person pitching the reason the 401k is the best couch for your home and the craftsmanship of the chair is something you need in your dining room. They don’t care what your style is or even if what they are selling fits your life, they have a product to sell. But what if there was a way to make sure the client gets into their home exactly what is the best fit? Furniture will still be sold, but ONLY the right furniture. The Tax Blueprint® (exclusive Financial Gravity product) is the “architectural” plan. It looks to how to best organize one’s life to control what can be controlled. The tax code can’t be controlled, that is in the hands of the politicians, what can be controlled is its use. It’s like a child that can’t control what things are on the playground but can use the swing set or basketball hoop that is there. The Tax Blueprint® uses all the tools at our disposal, that were gifted to us by our government, to lower our personal income taxes, legally, morally and ethically. The Tax Operating System® then picks up and “builds” the house. Once the design and build phase is complete then, as with all houses, comes moving day. The right furniture that fits the client, not a bloated and expensive 401k plan when a SIMPLE or SEP will do. No tax friction that comes from owning a mutual fund.
Taxes are most people’s highest single expense, the rich have a “family office” to help navigate the world of taxes, finances, law and risk management. The person that owns a couple of franchises, or the HVAC business owner or the countless other entrepreneurs do not have the kind of help only the rich have. They do now.
Do you believe the small business owner is the backbone of the economy? Me too! Do you believe that no one is trying to help them solve their most pressing problems? Me too! Do you believe small businesses should have the same access to fiduciary type advice that is integrated into a cohesive strategy that serves their best interest? Me too!
We currently have 11 unique products and business processes with trademarks accompanying them. We are developing Artificial Intelligence software, Odele™. We have over 50 independent (and growing weekly) reps nationwide that are not accountants and not financial advisors. They have at their disposal three cash flow solution products (more pending), which only we offer. We have over 500 CPA’s, EA’s and bookkeepers that pay us for access to our unique platform. There are many more things that are being created that fit into the vision of the Fractional Family Office®, we do press releases almost weekly and all of what I have outlined here can be seen there.
In conclusion, all businesses are much more than the sum of there parts, Financial Gravity Companies, Inc. is solving many problems that are either overlooked or deemed too hard solve. We believe entrepreneurs should have all the tools they need to succeed, and we hope (OTCQB: FGCO) will become the Intel Inside® for those that want Lower Taxes, Higher Profit and Greater Wealth™.